§ 15.74.065. Franchise violations.

A.

Remedies for Violations. Subject to Section 15.74.070 of this Chapter, if Grantee fails to perform in a timely manner any material obligation required by this Chapter or a Franchise granted hereunder, following notice from City and an opportunity to cure such nonperformance in accordance with the provisions of Subsection 15.74.065.B, City may at its option and in its sole discretion:

1.

Cure the violation and recover the actual cost thereof from the security fund established herein if such violation is not cured within thirty (30) days after written notice to Grantee of City's intention to cure and draw upon the security fund;

2.

Assess against Grantee liquidated damages in an amount set forth in the Franchise Agreement for any such violations(s) if such violation is not cured, or if Grantee has not commenced a cure, on a schedule acceptable to City, within thirty (30) days after written notice to Grantee of City's intention to assess liquidated damages. Such assessment may be withdrawn from the security fund, and shall not constitute a waiver by City of any other right or remedy it may have under the Franchise or applicable law, including without limitation, its right to recover from Grantee such additional damages, losses, costs and expenses, including reasonable actual Attorney fees, as may have been suffered or incurred by City by reason of or arising out of such breach of the Franchise.

B.

Procedure for Remedying Franchise Violations. Prior to imposing any remedy or other sanction against Grantee specified in this Chapter, City shall give Grantee notice and opportunity to be heard on the matter, in accordance with the following procedures:

1.

City shall first notify Grantee of the violation in writing by personal delivery or registered or certified mail, and demand correction within a reasonable time, which shall not be less than twenty (20) days in the case of the failure of Grantee to pay any sum or other amount due City under this Chapter or Grantee's Franchise and thirty (30) days in all other cases. If Grantee fails to correct the violation within the time prescribed or if Grantee fails to commence correction of the violation within the time prescribed and diligently remedy such violation thereafter, City shall then give written notice of not less than twenty (20) days of a public hearing to be held before the City Council. Said notice shall specify the violations alleged to have occurred.

2.

Subsequent to the public hearing, City Council shall hear and consider all other relevant evidence, and thereafter render findings and its decision.

3.

In the event City Council finds that Grantee has corrected the violation or has diligently commenced correction of such violation after notice thereof from City and is diligently proceeding to fully remedy such violation, or that no material violation has occurred, the proceedings shall terminate and no penalty or other sanction shall be imposed.

4.

In the event City Council finds that material violations exist and that Grantee has not corrected the same in a satisfactory manner or has not diligently commenced correction of such violation after notice thereof from City and is not diligently proceeding to fully remedy such violation, City Council may impose one (1) or more of the remedies provided in this Chapter and the Franchise Agreement as it, in its discretion, deems appropriate under the circumstances.

C.

City's Power to Revoke. City reserves the right to revoke any Franchise granted pursuant to this Chapter and rescind all rights and privileges associated with it in the following circumstances, each of which shall represent a default by Grantee and a material breach under the Franchise:

1.

If Grantee shall default in the performance of its material obligations under this Chapter or the Franchise Agreement and shall continue such default after receipt of due notice and reasonable opportunity to cure the default;

2.

If Grantee shall fail to provide or maintain in full force and effect the insurance coverage or security fund as required in the Franchise Agreement;

3.

If Grantee shall violate any order or ruling of any regulatory body having jurisdiction over Grantee relative to the Franchise, unless such order or ruling is being contested by Grantee by appropriate proceedings conducted in good faith;

4.

If Grantee practices any fraud or deceit upon City;

5.

If Grantee becomes insolvent, unable or unwilling to pay its debts, or is adjudged a bankrupt.

Termination and forfeiture of the Franchise shall in no way affect any right of City to pursue any remedy against Grantee under the Franchise or any provision of applicable law.

(Ord. C-7471 § 1, 1997)