(A) If a renewal of the grantee's franchise is denied and the franchising authority either acquires ownership of the cable system or by its actions effects a transfer of ownership of the cable system to another party, the acquisition or transfer shall be at a fair market value, determined on the basis of the cable system valued as a going concern, but with no value allocated to the franchise itself.
(B) If the grantee's franchise is revoked for cause and the franchising authority acquires ownership of the cable system or by its actions effects a transfer of ownership of the cable system to another person, the acquisition or transfer shall be at an equitable price. However, in the event the franchising authority revoked the grantee's franchise and subsequently award a cable franchise to another person, the action by the franchising authority shall not be deemed as an act effecting a transfer or acquisition of the cable system. The grantee and franchising authority agree that in the case of a revocation, at the grantee's request, which shall be made in its sole discretion, The grantee shall be given a reasonable opportunity to effectuate a transfer of its cable system to a qualified third party at fair market value, determined on the basis of the cable system valued as an ongoing concern. The franchising authority further agrees that during this period of time it shall authorize the grantee to continue to operate pursuant to the terms of its prior franchise; however, in no event shall the authorization exceed a period of time greater than six months from the effective date of the revocation. If, at the end of the time, the grantee is unsuccessful in procuring a qualified transferee or assignee of its cable system which is reasonably acceptable to the franchising authority, the grantee and franchising authority may avail themselves of any rights they may have pursuant to federal or state law; it being further agreed that the grantee's continued operation of its cable system during the six-month period shall not be deemed to be a waiver, nor an extinguishment of, any rights of either the franchising authority or the grantee. Notwithstanding anything to the contrary set forth in this section, neither the franchising authority nor the grantee shall be required to violate federal or state law.
(Ord. 617, passed 7-1-1985)