§ 38.5.21. A grantee's obligations as trustee—Continuity of service.

(a)

Subject to applicable State and Federal law, at all times from the expiration or revocation of a franchise, and until a grantee transfers to the succeeding operator of the system all of its rights, title and interest to all assets, real and personal, related to its cable system in the City, such grantee shall have a duty to such successor as a trustee holding such assets for the benefit of such successor, and shall not sell any of the system assets in the City or make any physical, material or administrative operational changes that would tend to degrade the quality of service to the subscribers, decrease gross revenues or materially increase expenses, without the express written permission of the City. Immediately upon the assumption of operating control of the system by the grantee, as trustee, or a successor trustee, the corporate authorities shall cause an independent appraisal and inventory of all of the assets of the system to be made to verify and establish the existence and condition of all such real and personal property of the system. The grantee shall at all times operate the system in accordance with the terms of this Chapter and the terms of the franchise as if the franchise had not expired or had not been revoked. If a grantee fails or refuses to operate the system as a trustee, the City shall have the right to apply to a court of competent jurisdiction for the appointment of a receiver to operate the system itself as a trustee in accordance with the terms of this Chapter, the terms of the franchise and applicable law.

(b)

A grantee shall be obligated to continue to provide cable service only for a reasonable period of time not to exceed twenty-four (24) months following the expiration of the term of the franchise or the effective date of any revocation or termination of the franchise.

(c)

In the event of a change of grantee, or in the event a new operator acquires the system, a grantee shall cooperate with the City, new franchisee or operator in maintaining continuity of service to all subscribers.

(d)

In the event a grantee fails to operate the cable system for seventy-two (72) consecutive hours without prior approval of the City or without just cause, the City may, at its option, operate the cable system or designate an operator until such time as grantee restores cable services. If the City is required to fulfill this obligation for a grantee, such grantee shall reimburse the City for all reasonable costs or damages that are the result of its failure to perform.

(e)

During any period in which a grantee continues to provide service as provided in Subsection (a) of the Section, it shall be entitled to all revenues collected, and to the reasonable costs for its services, less any franchise fees or other moneys owed to the City.

(f)

During any period of time in which a grantee continues to provide service as provided in Subsection (a) of the Section, the City will assist and use its best efforts to assist such grantee in providing a satisfactory basis for it to continue providing services under the franchise agreement; provided, however, that such grantee is not required during any such period to provide or continue to provide service if the revenues collected are less than the operating costs incurred.

(g)

This Section shall in no way limit the power of the City, upon expiration or revocation of a franchise, to require a grantee to cease all operations whatsoever and remove its assets from the City, or otherwise exercise any rights the City would otherwise have.

(Ord. 6-2000 § 2 (part))