5.15.100 Termination – Revocation.
A. Termination. The license shall terminate, upon the expiration of the term thereof, unless renewal is successfully applied for, pursuant to SCC 5.15.110.
B. Revocation.
1. A license may be revoked or suspended by the council on the following grounds, taking into account any ameliorating circumstances:
a. A licensee fails or repeatedly fails to comply with one or more material provisions of this chapter or the license agreement, and is unable or unwilling to resolve or cure such noncompliance;
b. A licensee makes willful false or misleading statements in any application, filing or formal documents;
c. A licensee engages in the practice of any fraud or deceit upon the city or subscribers in any application or during the term of the license agreement; and
d. A licensee is unable or unwilling to pay its debts or is judged bankrupt.
2. In the event the city determines that licensee is in material violation of this chapter or the license agreement, the city manager shall make written demand to the licensee that it come into compliance with the terms, conditions or performance obligations.
3. The licensee shall have 60 days following receipt of such written demand by the city to coordinate with the city manager and cure the violation or to effect such cure within a period of time acceptable to the city manager. In the event the licensee fails to cure the violation, or is unable or unwilling to do so, the city manager may recommend the revocation or suspension of the license to the council, specifying with written particularity the reasons for such action. If, however, the licensee contests the action of the city manager or disputes that a violation has in fact occurred, the licensee shall have 30 days from the date of receipt of the city manager’s original written demand for compliance to provide written notice to the city of such dispute.
4. In the event the city manager recommends to the council that the license be revoked or suspended, a copy of such recommendation shall be served on the licensee by certified or registered mail, return receipt requested, at the same time that the recommendation is forwarded to the council. The licensee shall be given at least 30 days’ advance written notice of the date scheduled for a public hearing before the council to consider the revocation or suspension recommendation. At such hearing the licensee shall be given an opportunity to present evidence, call witnesses and make argument.
5. During the public hearing, the council shall consider the recommendation of the city manager, the response of the licensee and the responses from any other interested persons, and shall determine whether a violation has occurred and, if so, whether such failure warrants the revocation or suspension of the license, or some lesser appropriate penalty, in accordance with the provisions herein described.
6. If the council finds that a violation did not occur, the matter shall be ended. If, however, the council finds that the violation by the licensee was partially or entirely with just cause, the result of a misunderstanding or through an excusable oversight, the council may direct the licensee to comply within a reasonable time and manner according to such terms and conditions as are reasonable.
7. If the council finds that the licensee has violated one or more material provision of this chapter or the license agreement, or determines that one or more of the conditions in subsection (B)(1)(b), (c) or (d) of this section exists regarding the license, the council may provide a specified period of time for the licensee to come into compliance before the revocation takes effect.
C. System Disposal. In the event of termination or revocation of a license, the licensee involved shall offer to sell the cable system, at the fair market value, to a new licensee or applicant for a license. The fair market value shall be determined in accordance with generally accepted appraisal procedures. The original cost of all tangible and intangible property, as well as salvage value, book value, replacement cost, cash flow and other factors will be considered. Under no circumstances shall any valuation be made for any right or privilege granted by license. Should the licensee fail to negotiate a sale, as described above, the city may purchase the system at the fair market value for the purpose of leasing to a qualified operator until a buyer can be found, pursuant to the provisions of A.R.S. Section 9-509.
D. Continuity of Service. Licensee shall provide continuous service for the entire term of the license agreement to all subscribers and users in return for payment of the established rates, fees and charges. If licensee seeks to sell or transfer, or if the city revokes or fails to renew the license, licensee shall continue to operate the system as trustee for its successor in interest until an orderly and lawful change of operation is effected. This period of operation shall not exceed 120 days from the occurrence of any of the above events. Revenues accrued during that period of time shall be received by the operator. During such time, the cable system shall be operated under terms and conditions consistent with the most recent license agreement and this chapter. [Code 2006 § 12-1-10. Ord. 91-20, 12-10-1991].