§ 25.11. Franchise Revocation Procedures.

A.

Whenever a Grantee shall refuse, neglect or willfully fail to construct, operate, maintain, repair or upgrade its Cable Television System or to provide service to its Subscribers in substantial accordance with the Cable Act, the terms of this ordinance and the Franchise Agreement, or to comply with the conditions of occupancy of any Public Ways, or to make required extensions of service, or in any other way substantially violates the Cable Act, the terms and conditions of this ordinance, the Franchise Agreement, or any applicable rule or regulation, or practices any fraud or deceit upon the City or its Subscribers, or fails to pay when due any Local Communications Services Tax imposed by the City pursuant to Section 202.19, Florida Statutes, or fails to pay when due any franchisee fees to the extent the City is permitted by law to impose franchise fees, or if a Grantee becomes insolvent, or unable to or unwilling to pay its uncontested debts, or is adjudged bankrupt, or seeks relief under the bankruptcy laws, the Franchise may be revoked at the discretion of Council.

B.

In the event the Mayor or Designee believes that grounds for revocation exist or have existed, the Mayor or Designee may notify a Grantee, in writing, setting forth the nature and facts of such noncompliance. If, within thirty (30) days following such written notification, the Grantee has not furnished reasonably satisfactory evidence that corrective action has been taken or is being actively and expeditiously pursued, or that the alleged violations did not occur, or that the alleged violations were beyond the Grantee's control, the Mayor or the designee may thereupon refer the matter to Council.

C.

Upon referral from the Mayor or Designee or by its own motion, the Council, with the approval of the Mayor, may revoke a Franchise pursuant to Paragraph A of this section.

D.

The City shall not revoke a Franchise pursuant to Paragraph C of this section until the City has given written notice to the Grantee that it proposes to take such an action and the grounds therefor. Further, the City shall not revoke a Franchise until the Grantee, or its representative, has had reasonable opportunity to be heard before the Council and show that the proposed grounds for revocation did not or do not exist, as the case may be.

E.

A Grantee shall not be subject to the sanctions of this section for any act or omission wherein such act or omission was beyond the Grantee's control. An act or omission shall not be deemed to be beyond a Grantee's control if committed, omitted, or caused by a corporation or other business entity which holds a controlling interest in the Grantee, whether held directly or indirectly. Further, the inability of a Grantee to obtain financing, for whatever reason, shall not be an act or omission which is "beyond the Grantee's control."

F.

In the event that a Franchise has been revoked by the City, the procedure contained in Section 25.10E shall apply, except that the value of the System for purposes of acquisition or required sale, as provided for in subsections 25.10E.1 and 25.10E.2, respectively, shall be based on an equitable price, rather than Fair Market Value, in the event of revocation. Such options must be exercised within one (1) year from the date of the revocation of the Franchise, or the entry of the final order upon appeal of same, whichever is later. In the event the Franchise is revoked and the City invokes its right to purchase the Grantee's Cable Television System, the Grantee shall file with the City within thirty (30) days of the date that ownership and control passes to the City or its assignee, a financial statement clearly showing the Gross Revenues of the Grantee since the end of the previous fiscal year, detailed by fiscal quarter.

G.

The termination of a Grantee's rights under a Franchise shall in no way affect any other rights the City may have under the Franchise or under any provision of the law.

(Ord. of 1-7-1985, Doc. #19125; Ord. of 9-23-1996, Doc. #29666; Ord. of 12-11-2000, § 2.4, Doc. #33439; Ord. of 8-13-2001, § 4.2, Doc. #34000)