(A) The town reserves the right to terminate, at any time any franchise granted hereunder and rescind all rights and privileges associated therewith in the event that:
(1) Grantee has not substantially complied in some material respect with any provision of this chapter or the franchise agreement entered into by and between the town and the grantee, or in any material respect with any terms or conditions of any franchise or permit issued hereunder;
(2) Grantee has made a material, false statement in the application or proposal for the franchise, knowing it to be false;
(3) The grantee, contrary to the best interest of public convenience and welfare, is not providing subscribers with regular, adequate, and proper service;
(4) The grantee becomes insolvent, enters into receivership or liquidation, files for bankruptcy or for composition of creditors, is unable or unwilling to pay his debts as they mature, or is in financial difficulty of sufficient consequence so as to jeopardize the continued operation of the cable television system unless the grantee is in due process of contesting these debts;
(5) Grantee violates any FCC order or ruling or the order or ruling of any other govern- mental body having jurisdiction over the grantee unless the grantee is lawfully contesting the legality of applicability of the order;
(6) Grantee attempts to evade any material provision of this chapter or of any supplemental written agreement entered into by and between the town and the grantee; or
(7) Grantee disposes of any of the facilities or property of its CATV business to prevent the town from purchasing same, as provided for herein.
(B) In the event that the town shall decide to terminate for cause a franchise granted hereunder, it shall give the grantee 60 days written notice of its intention to terminate and stipulate the cause. If during the 60-day period the cause shall be cured to the satisfaction of the town, the town shall declare the notice to be null and void. In any event, before a franchise may be terminated the grantee must be provided with an opportunity to be heard before the town in accordance with due process procedures.
(C) In the event of expiration or non-renewal of the term for which the franchise is granted or if any part of the CATV system is discontinued for any reason for a continuous period of 30 days or the franchise held by any grantee to construct, operate, or maintain a CATV system is terminated by the town, pursuant to the terms of this chapter, and all negotiations to settle the differences between the parties have failed (provided, however, that such negotiations shall not be required), the town may advertise and seek another grantee to operate the system. If a franchise is granted to another person, the terminated grantee may be required to sell the physical assets of the entire CATV system to the new grantee at a price to be determined by three competent, independent appraisers, one each to be appointed by the terminated grantee, the new grantee, and the town. The appraisers so appointed shall use the then best methods of appraising to determine this value. The cost of appraisers shall be shared equally by the terminated grantee and the new grantee. The terminated grantee shall execute those deeds, bills of sale, and other documents as may be necessary to effectuate this sale. The terminated grantee shall fully cooperate with these appraisers.
(D) At the expiration or nonrenewal of the term for which a franchise is granted, or upon its termin- ation and cancellation, as provided for herein, the town is expressly given the first right of refusal and option to purchase the physical assets of grantee. In the event of a bona fide offer by a third person to grantee for purchase of the physical assets, grantee shall, if it desires to entertain the offer, immediately inform the town of same and submit to the town incontrovertible evidence of the good faith bona fide terms, conditions, and purchase price of the offer for which the town shall have the first right of refusal. Should the town exercise this option and upon its service of an official notice of such action upon the grantee, the grantee shall immediately transfer to the town possession and title to all facilities and property, real and personal, of the CATV business, free from any and all liens and encumbrances not agreed to be assumed by the town in lieu of some portion of the purchase price set forth above; and the grantee shall execute such warranty deeds or other instruments of conveyance to the town as shall be necessary for this purpose.
(E) The town shall give to grantee notice of its intent to exercise the option to purchase at least 90 days prior to the expiration of the term of the franchise. If the franchise is terminated as provided elsewhere herein, notice of intent to exercise the option to purchase shall be contained in the notice of intention to terminate.
(F) Should the grantee's franchise be termin- ated, expired, or not renewed, and not purchased as above provided, and at such times as the successor is ready to provide service, but not later than six months from termination, expiration, or nonrenewal, the grantee shall begin removal of all property owned by it, and placed on a public or private right-of-way unless permitted by the town to abandon the property in place. In so removing such plants, structures, and equipment, the grantee shall refill, at its own expense, any excavation that shall be made by it and shall leave the public and private places in as good condition as that prevailing prior to the grantee's removal of its equipment and appliances without affecting, altering, or disturbing in any way the electrical distribution or telephone cable, wire, or attachments or any poles. The Town Manager or other officer, or his appointee, shall inspect and approve the condition of the public ways and places and cables, wires, attachments, and poles after removal. Liability insurance and indemnity provided for herein shall continue in full force and effect during the entire period of removal.
(G) In the event of any such removal, the grantee shall restore the public right-of-way to a condition satisfactory to the town. Upon abandonment, which shall only be done as the town directs, the grantee shall transfer ownership of all such abandoned property to the town and submit to the town an instrument in writing, subject to the approval of the Town Attorney, effecting the transfer.
(H) If the town or state is forced to remove the system, the work shall be done at the expense of the terminated grantee.
(Ord. passed 7-21-86)