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MEMORANDUM <br />Office of the City Attorney <br />October 9, 1997 <br />Page 5 <br />option(s) under this permit. In the event that notice of termination is <br />given by City as provided herein, Permittee shall have one (1) year <br />following such sixty (60) day notice to terminate its operations. If written <br />notice is not given within the sixty days (60) immediately prior to <br />expiration of the term, this Permit shall be automatically renewed for an <br />additional seven (7) year term. During that automatic seven (7) year <br />renewal term, this Permit shall be terminable by City only upon default <br />of Permittee. " <br />This provision makes it clear that the City must give notice sixty (60) days prior <br />to June 30, 1999 in order to terminate lack's franchise agreement unless Jack's defaults in some <br />manner. If that notice is not given, the franchise agreement will automatically extend for <br />another seven years and will then terminate in the year 2006. <br />Termination of Jack's for Default <br />At a meeting held with then City Manager Malik Freeman and Assistant City <br />Manager Daryl Parrish on May 19, 1997, Freeman indicated that he had sufficient information <br />and evidence of wrongdoing to terminate Jack's agreement. That information has yet to be <br />presented to this office by anyone. To date, no evidence has been submitted to this office <br />indicating any breach on Jack's part with regard to its contract. It is clear, however, that Jack's <br />has been trying to avoid implementation of the new reporting methods required by MRC which <br />would give the City a better means of evaluating compliance issues. <br />The default provisions of Jack's franchise agreement allowing termination are <br />follows: <br />"H. TERMINATION <br />In the event the Permittee fails to comply with any City, County or State <br />ordinance or statute, or in the event that Permittee shall otherwise fail to <br />carry out the requirements of this permit, the City shall give Permittee <br />immediate. notice of such violation or failure to perform, and Permittee <br />shall have thirty (30) days to correct such violation or to perform as <br />agreed.In the event Permittee fails to correct any violation or to perform <br />as agreed within the thirty (30) day notice period, the Permittee shall <br />forfeit all rights which it might otherwise have pursuant to this Permit and <br />the Permit shall immediately terminate and be revoked without further <br />action of the City." <br />