If grantee fails to perform in a timely manner any material obligation required by this chapter or a franchise granted hereunder, following notice from the grantor and an opportunity to cure such nonperformance in accordance with the provisions of Article XIII of this chapter and the franchise, grantor may in its sole discretion:
A. 
Cure the violation and recover the actual cost thereof from the security fund established in this chapter if such violation is not cured or a cure is not commenced within thirty days after written notice to the grantee of grantor's intention to cure and draw upon the security fund;
B. 
Assess against grantee liquidated damages in an amount set forth in the franchise agreement for any such violation(s) if such violation is not cured, or if grantee has not commenced a cure, on a schedule acceptable to grantor, within thirty days after written notice to the grantee of grantor's intention to assess liquidated damages. Such assessment may be withdrawn from the security fund, and shall not constitute a waiver by grantor of any other right or remedy it may have under the franchise or applicable law, including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 actual attorney's fees, as may have been suffered or incurred by grantor by reason of or arising out of such breach of the franchise.
(Ord. 1354 § 15.1, 1997)
Prior to imposing any remedy or other sanction against grantee specified in this chapter, grantor shall give grantee notice and opportunity to be heard on the matter, in accordance with the following procedures:
A. 
Grantor 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 thirty days. 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, the grantor shall then give written notice of not less than twenty days of a public hearing to be held before the city council. Such notice shall specify the violations alleged to have occurred.
B. 
At the public hearing, the council shall hear and consider all relevant evidence, and thereafter render findings and its decision. The findings and decision shall be provided in writing to grantee within ten days of the council's decision.
C. 
In the event the council finds that the grantee has corrected the violation or has diligently commenced correction of such violation after notice thereof from grantor 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.
D. 
In the event the 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 grantor and is not diligently proceeding to fully remedy such violation, the council may impose one or more of the remedies provided in this chapter and the franchise agreement as it, in its discretion, deems appropriate under the circumstances.
(Ord. 1354 § 15.2, 1997)
Subject to Section 5.20.390, grantor 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 of the franchise agreement:
A. 
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;
B. 
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;
C. 
If grantee shall violate any order or ruling of any regulatory body having jurisdiction over the grantee relative to the grantee's franchise, unless such order or ruling is being contested by grantee by appropriate proceedings conducted in good faith;
D. 
If grantee practices any fraud or deceit upon grantor;
E. 
If grantee becomes insolvent, unable or unwilling to pay its debts, or is adjudged a bankrupt.
The termination and forfeiture of the grantee's franchise shall in no way affect any right of grantor to pursue any remedy under the franchise or any provision of law.
(Ord. 1354 § 15.3, 1997)
In the event of a finding of revocation pursuant to Section 5.20.400, the grantor and grantee shall engage in nonbinding mediation with respect to the alleged violation. No revocation shall be implemented until the mediation process has been concluded, or until the time for invoking such rights has expired.
Within ten days of written notification of a finding of revocation by the grantor, the grantee shall notify the grantor in writing of its intention to invoke mediation procedures. Within fifteen days of such notification, the grantor and grantee shall select a mediator to assist in the resolution of the dispute. If the dispute is not resolved through the mediation process within sixty days, the grantee may terminate the mediation process by providing the grantor with ten days written notice. Upon termination of the mediation process, grantee shall have the right to pursue all legal remedies.
(Ord. 1354 § 15.4, 1997)