(A) Upon cancellation, revocation, forfeiture, termination or normal expiration of the franchise term, the city shall have the right to purchase the system. Such right shall be exercised by giving written notice to grantee within six months after the occurrence of any such event.
(B) If the city elects to exercise its right to purchase the system, the following shall then apply:
(1) The purchase price of the system to be paid by the city shall be as follows:
(a) If the termination is due to the normal expiration of the franchise term, the purchase price shall be the fair market value of the system as a going business concern, with appropriate consideration for depreciation using generally accepted accounting principles. Goodwill shall not be included in the purchase price of the system.
(b) If the franchise is cancelled, revoked, forfeited, or terminated by the city for failure of franchisee to comply with the terms of this code the purchase price shall be the original cost of the system less depreciation. Depreciation shall be calculated using grantee's method of depreciation for income tax purposes.
(2) The city shall receive the entire system as defined in this franchise ordinance together with all records necessary for the operation of the system wherever located.
(3) The grantee shall promptly execute all documents necessary to transfer title to the city, and shall assign all contracts, leases, licenses, permits and other rights necessary to maintain continuity of service to the public.
(4) The grantee shall cooperate with the city to operate the system for a temporary period not to exceed two years, in maintaining continuity of service.
(5) All liabilities and accounts payable as of the date the city acquires title to the system shall remain the exclusive responsibility of the grantee.
(6) All accounts receivable accrued as of the date the city acquires title to the system shall remain the property of the grantee.
(C) If grantee offers the system for sale, all offers received shall promptly be provided to the city. Prior to grantee accepting any offer, the city shall have the right to purchase the system according to the terms of the offer.
('77 Code, § 11.103(10)) (Am. Ord. 982, passed 11-9-81)