§ 30-54. Default.  


Latest version.
  • (a)

    Events of default. The following shall be events of default under a franchise agreement. For purposes of this section, the terms "events of default" and "default" shall mean any one or more of the following events with respect to subsections (a)(1), (2), (3), (4) and (5) of this section (the term "grantee" includes a grantee and its officers, agents, employees, independent contractors or affiliated entities):

    (1)

    Failure of a grantee to substantially perform in accordance with any provisions of a grantee's franchise agreement;

    (2)

    Violation by a grantee of any of the material provisions of this chapter or any other applicable ordinances, laws, rules or regulations governing such grantee;

    (3)

    Failure of a grantee to substantially perform in accordance with any agreements with any governmental bodies related to the construction, maintenance or operation of a grantee's cable system;

    (4)

    The entry of a decree or order for relief, by a court having jurisdiction over a grantee:

    a.

    On an involuntary basis under the federal bankruptcy laws or any other applicable federal or state bankruptcy, insolvency or other similar law appointing a receiver, liquidator, assignee, custodian, trustee (or other similar official) of a grantee, or for any substantial part of its property, or ordering the winding up or liquidation of a grantee's affairs or the continuance of any such decree or order unstayed and in effect for a period of 90 consecutive days; or

    b.

    The commencement by a grantee of a voluntary case under the federal bankruptcy laws or any other applicable federal or state bankruptcy, insolvency or other similar law or the consent either to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian (or other similar official) of a grantee or for any substantial part of its property, or the making by it of any assignment for the benefit of creditors, or the taking of action by a grantee to authorize or effect any of the actions mentioned in this subsection; and

    (5)

    Any material misrepresentation by a grantee in its application or to the county in any manner.

    Notwithstanding anything contained in this section, the grantee shall not be held in default or noncompliance with the provisions of the franchise, nor suffer any enforcement or penalty relating thereto, where such noncompliance or alleged defaults are caused by strikes, acts of God, power outages or other events beyond its ability to control.

    (b)

    Termination of franchise. Upon the occurrence and continuance of an event of default, as specified in subsection (a) of this section, the county shall have the authority to terminate a grantee's franchise upon the following conditions:

    (1)

    The county shall deliver to a grantee written notice specifying the exact nature of the event of default;

    (2)

    A grantee shall have 30 days from receipt of the written notice to cure such default; and

    (3)

    A grantee shall fail to cure the default to the satisfaction of the county within the 30-day period.

    If a grantee fails to cure the default as requested by the county, the county may terminate a grantee's franchise without further notice, hearing or delay. The county shall have the power to impose sanctions or other remedies without terminating a grantee's franchise if the county determines, in its sole discretion, that such other sanctions or remedies are appropriate.

    (c)

    Remedies cumulative; waiver of default. No remedy conferred or reserved in this section to the county is intended to be exclusive of any other available remedy, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this chapter or now or hereafter existing in law or equity. No delay or failure by the county to exercise any rights or power accruing upon any event of default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed appropriate by the county.

    (d)

    Payment of attorneys' fees. If an event of default occurs and the county shall be required to employ attorneys (whether in-house or outside counsel) or incur expenses for the purpose of (i) enforcing a franchise agreement, or (ii) terminating a grantee's franchise, or (iii) seeking a declaration of the county's rights or duties under a franchise agreement, a grantee shall pay to the county, upon demand of the county, the reasonable attorneys' fees and related costs. The provisions of this subsection shall survive any termination of a grantee's franchise.

(Ord. No. 88-10, § 23, 5-19-88; Ord. No. 94-10, § VIII, 6-9-94)