§ 5.5-36. Forfeiture and termination.

(a)

In addition to all other rights and powers retained by the city under a franchise or otherwise, the city reserves the right to forfeit and terminate a franchise and all rights and privileges of a grantee hereunder in the event of a substantial breach of the terms and conditions of this chapter or a franchise agreement. A substantial breach by a grantee shall include, but shall not be limited to, the following:

(1)

Violation of any material provision of a franchise or this chapter, or any material rule, order, regulation or determination of the city made pursuant to a franchise or this chapter.

(2)

Attempt to evade any material provision of a franchise or practice any fraud or deceit upon the city or the grantee's subscribers or customers;

(3)

Failure to begin or complete system construction or system extension as provided under section 5.5-20;

(4)

Failure to provide the services promised in the grantee's application, if any, as incorporated in a franchise agreement;

(5)

Failure to restore service after ninety-six (96) consecutive hours of an outage or service interruption, except when approval of such outage or service interruption is obtained from the city; or

(6)

Material and intentional misrepresentation of fact in the application for or negotiation of a franchise.

(b)

The foregoing shall not constitute a major breach if the violation occurs but is without fault of a grantee or occurs as a result of circumstances beyond its control. A grantee shall not be excused by mere economic hardship or by misfeasance or malfeasance of its directors, officers or employees.

(c)

The city shall make a written demand that a grantee comply with any such provision, rule, order or determination under or pursuant to this chapter or a franchise agreement. If the violation by a grantee continues for a period of thirty (30) days following such written demand, without written or other proof acceptable to the city that the corrective action has been taken or is being actively and expeditiously pursued, the city may place the issue of termination of a franchise before the mayor and city council. The city shall cause to be served upon a grantee, at least twenty (20) days prior to the date of such meeting, a written notice of intent to request such termination and the time and place of the meeting. Public notice shall be given of the meeting and the issue(s) which the mayor and city council are to consider.

(d)

The mayor and city council shall hear and consider the issue(s) and shall hear any person interested therein and shall determine in its discretion whether or not any violation by a grantee has occurred.

(e)

If the mayor and city council determines the violation by a grantee was the fault of the grantee and within its control, the mayor and city council may, by resolution, declare that the franchise of the grantee be terminated unless there is compliance within such period as the mayor and city council may fix, such period shall not be less than sixty (60) days, provided no opportunity for compliance need be granted for fraud or misrepresentation.

(Ord. No. 3525, § 1, 5-17-05)