(A) In accordance with § 627 of the Cable Act, if a renewal of a license held by a licensee is denied and the town acquires ownership of the cable system or effects a transfer of ownership of a cable system to another person, any such acquisition or transfer shall be at fair market value, determined on the basis of the cable system valued as a going concern but with no value allocated to the license itself. If a license held by a licensee is revoked for cause and the town acquires ownership of the cable system or effects a transfer of ownership of the cable system to another person, any such acquisition or transfer shall be at an equitable price. Under the term “equitable price”, such matters as the harm to the community resulting from the licensee’s breach of the license may be considered in determining the appropriate price. No payment shall be made by the town to the licensee that would include a value attributed to the license itself.
(B) The fair market value of the cable system shall be determined as follows.
(1) The fair market value of the cable system shall be determined by an appraisal committee consisting of three appraisers nationally recognized by training and experience as qualified to appraise the fair market value of a large, urban cable system. No appraiser shall have previously acted in any capacity for either the town or licensee. The appraisal committee shall function as an arbitration panel and shall conduct its appraisal process in the county, in accordance with the Center for Public Resources Rules for Non-Administered Arbitration of Business Disputes (the “rules”), supplemented by the following procedures that shall control to the extent they conflict with the rules.
(2) Each party shall appoint an appraiser within 30 days after the town sends notice initiating appraisal proceedings. The two appraisers shall select a third appraiser within 30 days after selection of the second appraiser. If the two appraisers are unable to agree on the appointment of a third appraiser within such 30-day period, either the town or the licensee may petition the presiding Civil Judge of the County Superior Court, acting in his or her individual capacity, for the selection of a third appraiser.
(3) Each party shall bear the cost of its own appraiser and one-half of the cost of appointing the third appraiser, of paying the third appraiser’s fee, and of any reasonable expenses incurred by the appraisers in order to carry out the appraisal process.
(4) Within 30 days after selection of the third appraiser, the appraisers shall meet for the purpose of determining the manner in which the parties may present by evidence that may bear upon the appraisal. Within 90 days after such meeting, the appraiser shall receive and consider such evidence and enter an award determining the fair market value of the cable system consistent with the requirements of this section. Such award shall be final and binding upon the parties, and judgment upon the award rendered may be entered by any court having jurisdiction thereof.
(C) Upon the termination of a license and the rights granted thereunder, whether by expiration or forfeiture, the town Council may direct and require the licensee as provided in § 113.082 to remove its wires, cables, fixtures, and accessories and appurtenances from the streets. If directed, the town shall make a claim on the letter of credit as prescribed in § 113.128.
(Ord. 2003-07, passed 9-25-2003)