§ 6.5-229. Term of a franchise.

(a)

The term of an initial franchise shall be no more than ten (10) years from the date that a franchise is approved by the city council and is executed by an authorized official of the city and the affected service provider or system owner or operator. Ten (10) years shall be the maximum term permitted absent the demonstration of the need for a longer term for financial reasons, such as, for purposes of example, the time needed to recoup the initial investment plus a reasonable return on the investment as set forth in subsection (c) of this section.

(b)

No franchise may contain an option to extend the term of the franchise where such option is automatic or able to be unilaterally exercised.

(c)

The city shall not be obligated to grant a franchise for a period of time that is greater than is necessary to recoup the amount of any capital expended that was required by the city or as may be agreed to during negotiations for the franchise, plus a return-on-investment attributable to that capital investment.

(d)

The permitted return-on-investment shall be as may be agreed to in the franchise, or if the issue is preempted federal or state law or regulation it shall as may be established by federal or state law or regulation for systems of a particular type.

(e)

A system owner or operator or service provider shall be required to demonstrate to the council the financial need of the requested term of the franchise in the form of an analysis as deemed appropriate and necessary and in reasonable detail as may be required by the city council.

(f)

Unless ordered or otherwise required by a court of competent jurisdiction, or unless required by state law, the city shall not disclose the details of financial information provided under this section, other than to make public the length or term of the franchise and the rate of return on capital investment used to determine or verify the need and justification for the term granted.

(g)

The term of a renewal of a franchise or the grant of a franchise subsequent to an initial franchise to an incumbent service provider or system owner or operator, shall be for a period of not less than three and one-half (3½) years, measured from the date that a franchise is approved by the city council, and if required is approved by the PSC. The maximum term of renewal shall be no more than ten (10) years, absent demonstration of the financial need for a longer term as set forth in this section.

(h)

In the event of the expiration of a franchise prior to the renewal or issuance of a subsequent or different franchise than that originally granted, unless prohibited by state law or rule, at the discretion of the city council continued authority may be granted in ninety (90) day increments.

(Ord. No. A-177, § 79, 3-13-2000)