(A) It shall be the right of all subscribers to continue receiving service insofar as their financial and other obligations to the franchisee are honored. In the event the franchise is revoked or terminated, the franchisee may be required to continue to provide service for a reasonable period as directed by the city in order to assure an orderly transition of service from the franchisee to another entity. During any such transitional period, franchisee shall operate its cable system in accordance with the requirements of this chapter and applicable law.
(B) In the event franchisee fails to operate the system for seven consecutive days without prior approval of the city or without just cause, or willfully fails to provide service in accordance with its obligations hereunder for any period, the franchisee will be deemed to have abandoned its cable system. In the event, the city may, at its option, do any or all of the following:
(1) Operate the system or designate an operator until such time as franchisee restores service under conditions acceptable to the city or a permanent operator is selected. If the city or a designee is required to fulfill this obligation for the franchisee, the franchisee shall reimburse the city or its designee for all reasonable costs or damages in excess of revenues from the cable system received by the city or its designee that are the result of the franchisee's failure to perform;
(2) Declare the franchise forfeited and require the franchisee to remove its cable system from the city by a time specified by the city, subject to any rights the franchisee may have to abandon in place; and/or
(3) Take possession of all or a portion of the abandoned facilities, in accordance with division (C) below.
(C) Purchase of cable system by city.
(1) If the franchise expires and renewal to the franchisee is denied or franchisee no longer uses its cable system to provide cable service, the city may acquire ownership of or effect a transfer of the cable system as provided herein.
(a) At the expiration of the franchise term, if renewal is denied, the city, at its election, shall have the right to purchase the cable system or any part of it upon payment to the franchisee of a sum equal to the fair market value of the cable system or the part taken (based on system value as a going concern) but with no value allocated to the franchise itself.
(b) In the event of revocation or termination of the franchise, except in the circumstances described in division (C)(1)(a), the city at its election, shall have the right to purchase all or any part of the cable system upon payment to the franchisee of a sum equal to an equitable price for the cable system or the part taken, with no value allocated to the franchise itself.
(c) Upon exercise of the purchase option by the city and its service of an official notice of such action upon the franchisee, the franchisee 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. The franchisee shall execute such warranty deeds or other instruments of conveyance to the city as shall be reasonably necessary for this purpose. Each contract entered into by franchisee with reference to its cable system or operations under the franchise shall be subject to the exercise of this option by the city.
(2) Notwithstanding the above, if the franchisee abandons the cable system or any part of the cable system during the franchise term, if the franchisee fails to operate its cable system in accordance with this chapter during any transition period set forth under this section or if the franchisee otherwise terminates its franchise, 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-way, or such portion as the city may desire, shall revert to the city and the city may sell, assign or transfer all or part of the assets of the cable system, or the City Council, at its option, may use or dispose of the system as it sees fit. The franchisee shall execute such quitclaim deeds and other documents as may be necessary to transfer the cable system or affected part thereof free and clear of liens and encumbrances to the city. Each contract entered into by franchisee with reference to its cable system or operations under the franchise shall be subject to the exercise of this right.
(3) Nothing herein in any respect affects the city's powers of eminent domain or its right to exercise these powers with respect to the cable system.
(Ord. 02-2007, passed 1-16-2007)