(A) If a renewal of a franchise is denied and the city acquires ownership of a cable system or requires a transfer of ownership of the cable system or OVS to another person, any such acquisition or transfer shall be:
(1) At fair market value, determined on the basis of the cable system valued as a going concern but with no value allocated to the franchise, to the extent not inconsistent with federal law. Factors to be considered in determining the fair market value include, but are not limited to, system cash flow, existing and potential good will, and existing arrangements with programmers and subscribers; or
(2) At a price determined in accordance with the franchise agreement if such franchise agreement contains provisions applicable to such an acquisition or transfer.
(B) If a franchise is revoked for cause and the city acquires ownership of the cable system or OVS or requires a transfer of ownership to another person, any such acquisition or transfer shall be:
(1) At an equitable price. To the extent not inconsistent with federal law, factors to be considered in determining equitable price include, but are not limited to, harm to the community resulting from the franchisee's breach of the franchise; or
(2) In the case of any franchise existing on the effective date of this subchapter, at a price determined in accordance with the franchise agreement if such franchise agreement contains provisions applicable to such an acquisition or transfer.
(C) Nothing in this section shall prevent the price of the cable system (whether fair market value or equitable price) from being affected by related matters subject to local control.
(Ord. 1406, passed 5-15-02)