(A) Expiration. If a franchise or license granted under this chapter expires, or a licensee no longer uses its cable system to provide service, the city may acquire ownership of or effect a transfer of the cable system as provided herein.
(B) Purchase option on denial of renewal. At the expiration of the term for which any franchise or license is granted if renewal is denied, the city, at its election, shall have the right to purchase the cable system or any part of it upon the payment to the franchisee or licensee of a sum equal to the fair market value of the system or the part taken (based on system value as a going concern) but with no value allocated to the franchise or license itself.
(C) Purchase option on other termination of the franchise or license. In the event of revocation or termination of the franchise or license; except in the circumstances described in division (B) of this section, the city at its election, shall have the right to purchase all or any part of the cable system upon payment to the franchisee or licensee of a sum equal to an equitable price for the system or the part taken, with no value allocated to the franchise or license itself.
(D) Exercise of the purchase option. Upon exercise of the purchase option by the city and its service of an official notice of such action upon the franchisee or licensee, the franchisee or licensee shall immediately transfer to the city possession and title to all of the purchased facilities and property, real and personal, of the cable system, free of all liens and encumbrances; and the franchisee or licensee shall execute the warranty deeds or other instruments of conveyance to the city as shall be reasonably necessary for this purpose. Each contract entered into by a franchisee or licensee with reference to its system or operations under the franchise or license shall be subject to the exercise of this option by the city.
(E) City rights in the event of abandonment. Notwithstanding the above, if a cable system or any part of a cable system is abandoned by a franchisee or licensee during the franchise or license term, or if the franchisee fails to operate its system in accordance with this chapter during any transition period, or the franchisee or licensee otherwise terminates its franchise or license, upon reasonable notice of at least 30 days and an opportunity to be heard, the ownership of the cable system or the abandoned portions thereof in public rights-of-ways shall revert to the city and the city may sell, assign or transfer all or part of the assets of the system, or the City Council, at its option, may use or dispose of the system as it sees fit. The franchisee or licensee shall execute the quit claim deeds and other documents as may be necessary to transfer the system or affected part thereof free and clear of liens and encumbrances to the city. Each contract entered into by a franchisee or licensee with reference to its system or operations under the franchise or license shall be subject to the exercise of this right.
(F) No effect on the powers of eminent domain. Nothing herein in any respect affects the city’s powers of eminent domain, or its right to exercise these powers with respect to a cable system.
(Ord. 26-97, passed 9-23-1997)