§ 19-91. Revocation and removal.

(a)

Revocation for cause. In addition to all other rights, powers and remedies available to the city, then following compliance with the applicable procedures of section 19-90 here of, the city shall have the additional, separate and distinct right to revoke a franchise and all the rights, authority, power, privileges and permissions granted the operator by this chapter and a separate franchise agreement, as a result of and in response to, any of the following events or reasons:

(1)

Fiscal defects. The operator becomes fiscally unable or unwilling to pay its debts; or

(2)

Bankruptcy. The operator is adjudged to be bankrupt However, should the city be prohibited from revoking a franchise due to the operator's bankruptcy, an operator must, as a means of assuring future payments of the franchise fee and assuring future compliance with all other requirements of this chapter and a separate franchise agreement, provide to the city within 30 days of an order of a court of competent jurisdiction adjudging the operator to be bankrupt, and entitled to the protection of state or federal bankruptcy laws, a bond in the amount of the franchise fees paid by the operator to the city the previous year; or

(3)

Fraud. The operator commits an act of fraud, as determined by a court of competent jurisdiction, against the city in obtaining its franchise, or upon being granted the continuation of the franchise commits such an act against the city; or

(4)

Failure to correct defect. The operator substantially fails to correct a material violation of this chapter within 30 days following: (a) written demand by the city to effect such compliance, unless such decision is stayed by a court of competent jurisdiction or agreed to by the city; or (b) a final decision of a panel of arbitrators, if used by the city and the operator, or a court of competent jurisdiction reviewing the disputed matter.

(b)

Revocation by ordinance. Revocation of a franchise shall be accomplished by passage of an ordinance. An ordinance revoking a franchise shall include the reason for the revocation, and a listing of facts found, and conclusions made, by the city council to justify revocation. The effective date of the revocation shall be stated in the ordinance. An ordinance revoking a franchise shall not be passed without 30 days written notice to the operator that an ordinance to revoke its franchise will be considered by the city council. An operator shall retain the privilege to be heard by the city council or any council committee regarding the proposed revocation ordinance. An operator may request a review of the revocation findings and conclusions pursuant to any applicable law.

(c)

Continuance of service after revocation. The city may require an operator to continue operating its system after revocation until such time as operation of the system can be transferred to a new owner or the city exercises its rights under this chapter.

(d)

Removal after revocation.

(1)

Procedure. Upon revocation of a franchise and after a review of the revocation findings and conclusions by a court of competent jurisdiction, if such review is sought by an operator, the city may require the operator to remove at the operator's expense, any above-ground portion of its system from any street or other public property. In removing its system, an operator shall refill and compact, at its own expense any excavation that shall be made, and shall leave all streets and other public property, and private property, in as good a condition as that prevailing prior to the operator's removal of its system, and without affecting, altering or disturbing in any way electric, telephone, gas, steam, or water utilities or other cable communications system operator cables, wires or attachment. The insurance, indemnity and damage provisions of this chapter or separate franchise agreement shall remain in full force and effect during the entire term of removal.

(2)

Failure to remove system. If an operator fails to commence removal of its system, or such part as was designated, in accordance with this chapter, within 180 days after written notice of the city's demand for removal is given, or if the operator fails to complete such removal within one year after removal has begun, the city shall have the right to exercise one of the following options:

a.

Assumption of ownership. Declare all right, title and interest to the system to be in the city or its designee with all right of ownership including, but not limited to, the right to operate the system or transfer the system to another for operation.

b.

Abandonment of system. Declare the system abandoned and cause the system, or such part as the city may designate, to be removed at no cost to city. The cost of the removal shall be recoverable pursuant to the insurance and indemnity provisions of this chapter or a separate franchise agreement, or from the operator directly.

(Ord. No. 930358, § 1(43.91), 8-25-94)