(a) Rights to purchase. In addition to the right of first refusal and the procedure to exercise same set out in Section 95-4(a) herein, in the event the grantee forfeits or city revokes this franchise for cause, or when the renewal of the franchise has been denied pursuant to the renewal procedures in the federal law, the city shall have all rights to acquire ownership of the cable system as are specified in federal law in 47 U.S.C. 547.
(b) Franchise valuation. Under circumstances where the grantee forfeits the franchise, or when renewal of the franchise has been denied by the city, the city may purchase the system for its fair market value, determined on the basis of the system as a going concern, with no value allocated to the franchise itself.
Under circumstances where the franchise has been revoked for cause by the city, the acquisition shall be at an equitable price in accordance with 47 U.S.C. 547.
(c) Date of valuation. The date of valuation shall be no earlier than the day following the date of expiration or termination and no later than the date city makes a fair and reasonable offer for the system or the date of transfer of ownership, whichever occurs first.
(d) Transfer to city. Upon exercise of this option and the payment of the above sum by the city, the grantee shall immediately transfer to the city possession and title to all facilities and property, real and personal, used or useful in the operation of the cable system, free from any and all liens and encumbrances not agreed to be assumed by the city in lieu of some portion of the purchase price set forth above; and the grantee shall execute such warranty deeds or other instruments of conveyance to city as shall be necessary for this purpose.
(e) Arbitration of value and costs.
(1) In the event city and grantee cannot agree upon the value of cable system, either may give notice of demand to the other for arbitration.
(2) Arbitration of unresolved issues of value and costs shall commence and proceed according to law except as follows:
• The parties shall, within 30 days of giving and receiving notice of demand for arbitration, appoint one arbitrator each who is experienced and knowledgeable in the valuation of cable television property. Arbitrators shall each agree upon the selection of a third arbitrator, similarly qualified, within another 15 days.
• Within 30 days after appointment of all arbitrators and upon ten days written notice to parties, the board of arbitrators shall commence a hearing on the issue of valuation.
• The hearing shall be recorded and transcribed at the request of either party. All hearing proceedings shall be open to the public and at such times and places as contained in the notice or as thereafter publicly stated in the order to adjourn, except as otherwise authorized by the City Attorney.
• Within 30 days after the close of the hearing, the board shall prepare findings and the decision agreed upon by a majority of the board which shall be filed with the city and served by mail upon the grantee.
• Any decision of the board not appealed within 45 days as provided herein shall be final and binding upon the parties and may be enforced by any court of competent jurisdiction.
• Either party may seek judicial relief in a court of competent jurisdiction in the following circumstances:
1. a party fails to select an arbitrator;
2. the arbitrators fail to select a third arbitrator;
3. specified time limits have been exceeded;
4. the board has not proceeded expeditiously;
5. based upon the record the board committed fraud, exceeded its authority or abused its discretion;
• In the event a court of competent jurisdiction determines the board has committed fraud, exceeded its authority or abused its discretion, it may order the arbitration procedure repeated and issue findings, orders and directions, with costs of suit to be awarded to the prevailing party.
• Costs of arbitration shall be born equally unless the board finds the offer of the city or the demand of grantee was unreasonable, in which case, cost may be apportioned so that less or none of the costs may be born be one party.
6. a party dissatisfied with the value or cost, or a portion of the value or cost, determined by the arbitration board may appeal such value or cost or portion of value or cost.
(Ord. No. 2801, § 3, 2-25-99)