§ 7-50. Forfeiture and termination.

(a)

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

(1)

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

(2)

Attempt to evade any material provision of the license or practice of any fraud or deceit upon the cable television system customers and subscribers or upon the city.

(3)

Failure to begin or complete system construction or system extension.

(4)

Failure to provide the services promised in the licensee's application as incorporated herein by section 7-33.

(5)

Failure to restore service after forty-eight (48) consecutive hours of interrupted service, except when approval of such interruption is obtained from the city.

(6)

Material misrepresentation of fact in the application for or during negotiation relating to the license.

(7)

Failure to inform the city of a transfer of interest or to comply with the city council's directive concerning any transfer of interest as provided in section 7-47.

(b)

None of the foregoing shall constitute a major breach if a violation occurs which is without fault of a licensee or occurs as a result of circumstances beyond a licensee's control. A licensee shall not be excused by mere economic hardship nor by nonfeasance or malfeasance of its directors, officers, or employees. A licensee shall bear the burden of proof in establishing the existence of such conditions.

(c)

The city may make a written demand by certified mail that a licensee comply with any such provision, rule, order or determination under or pursuant to the license. If the violation by the licensee continues for a period of thirty (30) days following such demand without written proof that the corrective action has been taken or is being actively and expeditiously pursued, the city may consider the issue of terminating the CATV system license; provided that the city shall cause to be served upon the licensee, at least twenty (20) days prior to the date the city is to consider the issue of termination, a written notice of intent to request such termination and the time and place of the meeting. Public notice of the meeting shall be given.

(d)

Prior to the meeting, the director shall provide the council with a report of the director's findings on the issue and a recommendation for disposition. The city council shall hear and consider the issue and shall hear any person interested therein, and determine in its discretion whether or not any violation by the licensee has occurred.

(e)

Should the council determine that the violation by the licensee was the fault of the licensee and within its control, the council may be resolution, declare that the license of the licensee shall be forfeited and terminated unless there is compliance within such period as the council may fix. Such period shall not be less than sixty (60) days, provided that no opportunity for compliance need be granted for fraud or misrepresentation.

(f)

The issue of forfeiture and termination shall automatically be placed upon the council agenda at the expiration of the time set for compliance. The council then may terminate the license forthwith upon finding that the licensee has failed to achieve compliance or may further extend the period, at its discretion.

(Ord. No. 1757, § 40, 8-19-85; Ord. No. 2276, § 19, 2-20-90)

State law reference

Authority to terminate license, A.R.S. § 9-508.