6.17.460 Purchase of cable system by city.
A. Right to Purchase. Pursuant to Section 11.04 of the Bellingham Charter, the company grants the city the right to purchase at a fair and just value the property of the company within the limits of the public streets, said price not including any valuation of the franchise itself; provided, however, the city may only exercise this right after submission of the proposition to the city electorate as an advisory ballot proposition and a majority of the voters favor such purchase.
B. Date of Valuation. The date of valuation for the purposes of subsection (A) of this section shall be no earlier than the day following the date of expiration or termination and no later than the date upon which the city makes a fair and reasonable offer for the system or the date of transfer of ownership, whichever occurs first.
C. Transfer to City. Upon exercise of this option and the payment of the above sum by the city and its service of official notice of exercise of such right upon company, the company shall immediately transfer to the city possession and title to all facilities and property, real and personal, of the cable system, free from any and all liens and encumbrances not agreed to be assumed by the city in lieu of some portion of the purchase price set forth above; and the company shall execute such warranty deeds or other instruments of conveyance to city as the city shall find necessary for this purpose.
D. Arbitration of Value and Costs.
1. In the event city and company cannot agree upon the value of the system, either may give notice of a demand to the other for arbitration.
2. Arbitration shall commence and proceed as follows:
a. The parties shall, within 15 days, appoint one arbitrator each who is experienced and knowledgeable in the purchase, sale and valuation of systems. Arbitrators shall each agree upon the selection of a third arbitrator, similarly qualified, within 15 days.
b. Within 30 days after appointment of all arbitrators and upon 10 days’ written notice to parties, the board of arbitrators shall commence a hearing on the issue of valuation.
c. The hearing shall be recorded and may be transcribed at the request and expense of either party. All hearing proceedings, debate and deliberations shall be open to the public and at such times and places as contained in the notice or as thereafter clearly stated in the order to adjourn, except as otherwise authorized by the city attorney.
d. At the close of the hearings and within 30 days, the board of arbitrators shall prepare findings and decision agreed upon by a majority of the board which shall be filed with the city and served by mail upon the company. If the arbitrators fail to render a decision within the allotted 30 days and both parties fail to mutually extend the decision deadline, the proceedings shall become null and void and shall be started anew.
e. The decision of the board shall be final and binding upon the parties.
f. Either party may seek judicial relief in the following circumstances:
i. A party fails to select an arbitrator;
ii. The arbitrators fail to select a third arbitrator;
iii. One or more arbitrators is unqualified;
iv. Designated time limits have been exceeded;
v. The board has not proceeded expeditiously; and
vi. Based upon the record the board abused arbitrarily its discretion.
g. In the event a court of competent jurisdiction determines the board of arbitrators has arbitrarily abused its discretion, it may order the arbitration procedure repeated.
h. Cost of arbitration shall be borne equally unless the board of arbitrators finds the offer of the city or the demand of company was unreasonable, in which case, cost may be apportioned so that less or none of the costs may be borne by one party. [Ord. 1998-09-075; Ord. 9121 § 21, 1982; Ord. 8999 § 46, 1981].