§ 34-16. Purchase by city.

Upon the termination, revocation pursuant to section 34-15, expiration of franchise term without request for renewal, cancellation pursuant to sections 134-5(c), 34-15(e) or 34-15(f), or the non-renewal of any grantee's franchise, the city shall have the right to purchase the cable system as provided herein subject to the provisions of the cable act, and the city may direct such grantee to cease operation of the cable system.

If, upon termination, revocation pursuant to section 34-15, expiration of franchise term without request for renewal, cancellation pursuant to sections 34-15(c), 34-15(e), or 34-15(f), or the non-renewal of a franchise, the city exercises its option to purchase the cable system, the value calculated below upon the date of such termination, cancellation, non-renewal or revocation, shall constitute the agreed purchase price subject to the provisions of the cable act.

The purchase price to the city for the cable system shall be the fair market value of the cable system as of the date of such termination, cancellation or non-renewal. Such fair market value shall be determined on the basis of the cable system valued as a going concern, but with no value allocated to the franchise itself. Such fair market value, if not agreed upon by the city and the grantee, shall be determined by mediation, or if still unresolved, the parties may seek resolution in the courts. The purchase price to the city for the cable system in the event of revocation shall be at an equitable price.

Prior to the transfer or assignment of the beneficial ownership of any franchise, pursuant to section 34-14, the city shall have the right to purchase such cable system assets at the price and on the terms comparable to those offered by the proposed transferee or assignee, within 60 days of grantee's notice to the city of such proposed transfer or assignment, provided, however that the city shall not have such right of purchase in the event of transfer to an affiliated entity directly or indirectly controlling, controlled by, or under common control with, such grantee or its parent company.

If the city elects to purchase the cable system, such grantee shall be required, upon payment of the purchase price, promptly to execute all appropriate documents to transfer title to the city, and shall assign all of the contracts, leases, licenses, permits, and any other rights necessary, in the discretion of the city, to maintain continuity of service to the public. The grantee shall be required to cooperate with the city or with any other person, partnership, corporation or legal entity authorized or directed by the city to operate the cable system for a temporary period, in maintaining continuity of service.

(Ord. No. 2009-51.1(94-O-1777), § 17.0, 11-28-94)