(A) The Board of Alderpersons may terminate the franchise conferred under this chapter at any time prior to a date of expiration, upon a finding that the franchisee has failed to cure one or more of the following defects:
(1) Material breach, whether by act or omission, of any terms or conditions of this chapter or the franchise agreement;
(2) Material misrepresentation of fact in the application for or negotiation of the franchise;
(3) Insolvency of the franchisee, inability or unwillingness of the franchisee to pay its just debts when they accrue or application of the franchisee for adjudication as a bankrupt;
(4) Failure to provide subscribers or users with adequate service in the best interest of the public convenience and welfare;
(5) Failure to have obtained authorization from all required governmental agencies and acceptable pole attachment agreements within 12 months after execution of the franchise agreement; provided, that the period of 12 months may be extended by the Board of Alderpersons, if the franchisee is diligently pursuing the authorization and the delay is not caused by any fault of the franchisee or results from strikes, natural disaster or other occurrences over which the franchisee would have no control; or
(B) The franchisee shall have 60 days to remedy defects, following written notice by the Town Administrator/Town Clerk to the franchisee of the defect. If any defect continues beyond the 60 days (or any extension thereof granted by the Board of Alderpersons) without written proof that corrective action has been taken or is being actively and expeditiously pursued, the Board of Alderpersons shall call a public hearing on the termination of the franchise. Immediately following the public hearing, the Board of Alderpersons may, by resolution, declare that the franchise be terminated. At least ten days prior to the Board of Alderpersons’s meeting at which the public hearing will be held, the Town Administrator/Town Clerk shall cause to be served upon the franchisee a written notice of the public hearing on the question of termination. The notice shall state the time and place of the meeting. In the event that the Board revokes the franchise, the Board shall have the right of first refusal to purchase the CATV system at a price not to exceed its depreciated book value (that is, original cost of property less accumulated depreciation). The book value or assumption of debt, whichever is larger (provided debt is no larger than the recognized mortgage value of the system) shall be determined by the Board in accordance with generally accepted appraisal and accounting principles. 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 a panel of three appraisers, one to be selected by the Board, one to be selected by the franchisee and the third to be selected by the other two appraisers. Should the Board and the franchisee fail to agree on the third appraiser, the choice shall be made by the senior resident judge of the superior court of the judicial district in which the town is located.
(C) Should the Board revoke the franchise and fail to purchase the system, new applicants shall be sought and evaluated by the Town Administrator/Town Clerk and Board of Alderpersons and a franchise award may be made according to the application and award procedures set forth in this chapter.
(Prior Code, § 4.1-10) (Ord. passed 9-19-1979)