(A) Upon the expiration of the term of the franchise and subject to approval by the Board of Alderpersons, the franchisee may negotiate renewal of its franchise for an additional period, not inconsistent with FCC rules and regulations.
(B) The franchisee shall notify the Board in writing no less than one year in advance of the expiration date of its desire to renew or not to renew the franchise. The Board may propose certain franchise modifications to the franchisee and make any given renewal contingent upon acceptance of the modifications. Renewal shall be preceded by a public hearing held at least 30 days in advance of a decision by the Board of Alderpersons. A renewal may be granted not more than two years prior to the expiration of any existing term. The Board of Alderpersons may determine whether or not the franchisee has performed satisfactorily its obligations under the franchise by reviewing the following:
(1) Technical developments and performance of the system;
(2) Programming;
(3) Other services offered;
(4) Cost of service;
(5) Compliance with any requirement in this chapter or in FCC regulations;
(6) Annual and other reports made to the Board or the FCC;
(7) Extension of service; and
(8) Other matters of concern.
(C) In the event the current franchisee is determined by the Board of Alderpersons to have performed unsatisfactorily, new applicants shall be sought and evaluated by the Board and the Town Administrator/Town Clerk and a franchise award may be made according to the application and award procedures set forth in this chapter.
(D) Upon failure to renew the franchise following expiration of the term of the franchise, the Board shall have the right of first refusal to purchase the CATV system. Should the Board decide to purchase the system, it shall do so at a price not to exceed its then fair market value. In determining the fair value of the system, the original cost of all tangible and intangible property, as well as the salvage value, the book value, the replacement cost, cash flow and other factors, including outstanding debts of the system to be assumed by the Board, may be considered. Under no circumstances shall any valuation be made for “good will” or any right or privilege granted by this chapter. Should a dispute arise over the determination of the fair value of the system, the dispute shall be resolved by arbitration, as provided in § 110.025.
(Prior Code, § 4.1-10) (Ord. passed 9-19-1979)