Revocation of Franchise.  


Latest version.
  • 15.131. 
    Causes for Revocation. The Franchise may be revoked and all rights and privileges afforded to Grantee herein and within the Franchise may be revoked in the event that Grantee commits any or all of the following infractions:
    A. 
    Fails to complete construction or reconstruction of the Cable System, as specified by the Franchise;
    B. 
    Fails to provide or maintain, in full force and effect, the performance bond and liability and indemnification coverages, as required by this Ordinance or the Franchise Agreement.
    C. 
    Breaches or violates any material provision of this Ordinance or other valid and enforceable ordinances or regulations of the City;
    D. 
    Practices fraud or deception upon the City, its elected officials, employees, agents or its citizens, which actions may include any attempt to willfully evade or avoid any of the provisions of this Ordinance;
    E. 
    If a petition is filed by or against the Grantee under the Bankruptcy Act, or any other insolvency or creditors' rights law, State or Federal, and the Grantee shall fail to have said petition dismissed, or if Grantee declares bankruptcy, has a receiver appointed for it, makes an assignment for the benefit of creditors or has any of its property sold under execution or other legal process or seized by creditors;
    F. 
    If a receiver, trustee or liquidator of the Grantee is applied for or appointed for all or part of its assets.
    G. 
    Selling, transferring or delegating any portion of the Cable System or any Video Communications System to another Person or group of Persons without first complying with the approval process for such sale, transfer or delegation provided for in Section 15.12 hereof.
    H. 
    Failure to pay Franchise Fees or any other moneys required for payment by the Grantee, as a part of the terms and conditions of this Ordinance or the Franchise.
    I. 
    Failure to provide services as called for in this Ordinance or in the Franchise.
    J. 
    With respect to the Cable System or any Video Communications System within the Franchise Area or any Cable System or any Video Communications System connected to the Headend affecting the Cable System or any Video Communications System, three (3) violations by the Grantee of any orders, rulings or judgments of any local, state or federal regulatory agency or body within any consecutive twelve (12) month period, unless the Grantee is legally contesting the legality or applicability of any such orders, rulings or judgments.
    K. 
    Failure to receive the necessary FCC authorization within a reasonable period of time, unless such cause is directly attributable to an action or condition imposed by the City.
    15.132. 
    Notice, Time to Correct and Hearing. In the event that the Franchising Authority believes that grounds for revocation exist or have existed, the Franchising Authority may notify the Grantee, in writing, setting forth the nature and facts of such noncompliance. If, within sixty (60) 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 alleged violations did not occur, or that the alleged violations were beyond the Grantee's direct control. The Franchising Authority may, following notice of the grounds for revocation, pursuant to Section 15.104 of this Ordinance, and the holding of a public hearing with the Common Council, revoke a Franchise, pursuant to Section 15.131 of this Ordinance.
    15.133. 
    Option of City to Acquire Cable System.
    A. 
    In the event that a Franchise has been revoked by the City, the City shall, to the extent then permitted by existing law, have the option to acquire at an equitable price or fair market value, all the assets of the Grantee's operations within the City. The City may exercise the option granted herein to purchase the Cable System, including, but not limited to, all physical assets comprising the system of equipment, fixtures and related material necessary for operation of the Cable System, including all or any portion of any such physical assets located, which are integral to the operation of the Cable System outside of the corporate limits of the City, all books and records, private easements and assignable contracts. Unless some later date is agreed to by the Grantee, the City shall exercise such option within one year from the date of the revocation of the Franchise or the entry of the final judgment by a court reviewing the question of the City's revocation, or the entry of a final order upon appeal of same. Upon determination by the City that it intends to purchase the assets of the Grantee's Cable System, the City shall notify the Grantee, by certified United States Mail, of its desire and intent to acquire the assets of the Cable System from the Grantee.
    B. 
    In the event the determination of fair market value cannot be negotiated or determined, said value shall be determined by an impartial arbitration procedure, pursuant to Chapter 788 of the Wisconsin Statutes, wherein the Grantee and the City shall each choose an arbitrator and the arbitrators chosen shall choose the third, and the valuation determined by said arbitrators shall be considered the fair market value at which the system shall be offered to the City. The determination of the value of the system shall be decreased by the amount of any damages sustained by the City in connection with revocation or expiration, including without limitation, payment made by the City to another person or entity to operate the Cable System for a temporary period after revocation. The cost of the arbitration procedure shall be shared equally by the City and Grantee.
    C. 
    The City shall have ninety (90) days to exercise the right of first refusal to purchase the Cable System, said ninety (90) days commencing on the date the fair market value of the Cable System is determined either through negotiation or the arbitration procedure. In the event that the City determines not to exercise its right of first refusal, it shall not unreasonably refuse to renew or grant a cable television franchise during a reasonable interim period. While transfer of the Cable System and Franchise is being negotiated, arranged or ordered, the Grantee may be required to continue service to the public, unless, for reasons beyond the control of the Grantee, said operation will be economically unfeasible for the Grantee.
    D. 
    Where the City has elected to purchase ownership of the assets of the Grantee's operations in the Franchise Area, the City shall, unless the Grantee shall agree to some other terms, pay, in cash to the Grantee, the price of such assets. Title to the Cable System or its designated assets shall pass to the Grantor upon such payment.
    15.134. 
    Option of City to Require Sale of Cable System. In the event that a Franchise has been revoked by the City, the City shall, to the extent then permitted by existing State and Federal law, require sale of the cable system, at the fair market value determined on the basis of the Cable System valued as a going concern, but with no value allocated to the Franchise itself by Grantee to a successor Person or group of Persons, who, upon approval of the City under the provisions of Section 15.08, as stated hereinabove, shall be granted a Franchise to operate a Cable System within the Franchise Area.
    15.135. 
    Removal of Cable System Plant and Equipment. If, upon revocation of Grantee's Franchise, the City does not elect to purchase the Cable System, and no sale of the Cable System is made to a successor grantee, then the City shall require that Grantee terminate and dismantle the Cable System, including its wiring, equipment, Headend facilities, if located within the City limits, and related appurtenances. Upon completion of termination and dismantling of the Cable System, Grantee shall, upon direction by City, restore any property, public or private, to the condition in which it existed prior to erection or construction of the Cable System, including any improvements made to such property subsequent to construction of the system. Restoring of City property, including all Public Ways, as defined herein, easements, parks, parkways and other public lands, shall be in accordance with the directions and specifications of the City and all applicable laws. Grantee shall restore said Public Ways and properties at its expense.
    15.136. 
    Revocation of Multichannel Video System Franchise. In the event that the Franchise of a Multichannel Video Provider has been revoked, and said Provider does not own system plant located in municipal right-of-way, said Multichannel Video Provider shall cease operations no later than forty (40) days after written notice of a final order of revocation has been sent by the City.
    [Ord. 6400, 10/6/1998]
    15.137. 
    Lesser Sanctions. Nothing shall prohibit the City from imposing lesser sanctions or censures than revocation for violations of provisions of this Ordinance, including the shortening of the Franchise term (not to exceed five (5) years) for substantial or repeated violations.
    [Ord. 6400, 10/6/1998]
Ord. 6400, amend S. 15.131(G)(J), 10/6/1998