(1) Rights To purchase. In the event the city terminates, or revokes the license agreement or declares the license forfeited pursuant to any provisions of this chapter, or at the normal expiration of the license agreement (referred to collectively and individually in this section by use of the term terminate or termination), the city shall have the first option, directly or as an intermediary, to purchase the system. The city shall have ninety (90) days prior to the effective date of termination and an additional ninety (90) days following the conclusion of any appeal of the termination, to notify the licensee of the city's intent to exercise the option to purchase stated herein.
(2) Valuation. In the event of a termination of the license agreement by the city for cause, the city may purchase the system for an equitable price. "Equitable price" means fair market value adjusted downward for the harm to the city or subscribers, if any, resulting from Licensee's breach of its license agreement, or violation of this chapter, and as further adjusted to account for other equitable factors that may be considered consistent with 47 U.S.C. § 547. Upon other termination of the license agreement the value of the system shall be solely based on the fair market value of the system.
(a) No value shall be assigned to the license itself whether termination is or is not for cause.
(b) "Valuation" as referred to above shall be determined by audit of system assets pursuant to generally accepted auditing principles. Procedures for valuation may be specified in a license agreement.
(3) Date of valuation. The date of valuation shall be ninety (90) days after city gives licensee notice of its intent to exercise the option to purchase.
(4) Transfer to city. Upon exercise of the city's option to purchase and written notice of such action by the city to the licensee, the licensee shall, immediately upon payment of the purchase price by the city, transfer to the city possession and legal title to all system facilities and property, both real and personal, free from any and all liens and encumbrances not agreed to be assumed by the city in lieu of a portion of the purchase price; and the licensee shall execute such warranty deeds or other instruments of conveyance to the city as shall be necessary to effectuate this transfer.
(Ord. No. 8937, § 2, 9-2-97)