§ 13.12.520. Grant and forfeiture conditions.

(a)

The franchise is granted and shall be held and enjoyed upon each and every condition contained in the ordinance granting the franchise and each and every condition contained in this chapter, and shall ever be strictly construed against the franchisee.

(b)

In addition to all other rights and powers retained by the city under this chapter or otherwise, the city reserves the right to suspend or revoke and terminate a franchise and all rights and privileges of a franchisee in the event of a material breach of its terms and conditions. In interpreting this section, material provisions shall include all labeled as such and all others, which, under all the facts and circumstances indicated, are a significant provision of the franchise agreement. A material breach by the franchisee shall include, but shall not be limited to, the following:

(1)

Violation of any material provision of the franchise or any material rule, order, regulation or determination of the city made pursuant to the franchise;

(2)

Attempt to evade any material provision of the franchise or practice any fraud or deceit upon the city or its subscribers or customers;

(3)

Failure to begin or complete system construction, reconstruction or system extensions as provided under the franchise;

(4)

Failure to provide the types of facilities, equipment or services promised; and

(5)

Material misrepresentation of fact in the application for or negotiation of the franchise.

The foregoing shall not constitute a material breach if, in the opinion of the city council, the violation occurs without fault of the franchisee or occurs as a result of circumstances beyond its control. The franchisee shall not be excused by mere economic hardship nor by misfeasance or malfeasance of its shareholders, directors, officers or employees.

(c)

The director, prior to any suspension or revocation and termination of the franchise, shall give to the franchisee not less than ten days' notice in writing of any default thereunder. If the franchisee does not within the noticed period begin the work of compliance or, after such a beginning, does not prosecute the work with due diligence to completion, the city council shall hold a hearing, at which the franchisee shall have the right to appear and be heard. Notice of the hearing shall be given to the franchisee by certified mail not less than ten days before the hearing.

(d)

Upon the conclusion of the hearing, the city council may determine whether such conditions are material and essential to the franchise and whether the franchisee is in default with respect thereto and may declare the franchise suspended or revoked and terminated. No revocation and termination shall become effective less than 30 days after the council's declaration to revoke and terminate; and no lapse of time, expenditure or any other thing shall be deemed to give the franchisee any vested right or interest in the continuation of the franchise granted.

(Ord. No. 14(1989), § 2(16.60.160), 6-27-89)