(a) If a renewal or extension of a grantee’s franchise is denied or the franchise is lawfully terminated, and the city either lawfully acquires ownership of the cable system or by its actions lawfully effects a transfer of ownership of the cable system to another party, any acquisition or transfer shall be at the price determined pursuant to the provisions set forth in § 627 of the Cable Act and after a grantee has had the opportunity to effectuate a lawful transfer of its system to a qualified third party pursuant to this section.
(b) A grantee and the city will understand and agree that in the case of a final determination of a lawful revocation, termination or nonrenewal of a franchise, a grantee shall be given at least 12 months to effectuate a transfer of its cable system to a qualified third party, approval for which by the city shall not be unreasonably withheld. Furthermore, a grantee shall be authorized to continue to operate pursuant to the terms of its prior franchise during this period. If, at the end of that time, a grantee is unsuccessful in procuring a qualified transferee or assignee of its cable system which is reasonably acceptable to the city, the grantee and the city may avail themselves of any rights they may have pursuant to federal or state law. It is further agreed that a grantee’s continued operation of the cable system during the 12-month period shall not be deemed to be a waiver, nor an extinguishment of, any rights of either the city or a grantee.
(1992 Code, § 44-71) (Ord. 104-09, passed 11-16-2009)