§ 6.26.260. Term of franchise.

A.

Term. Upon execution of a franchise agreement between the metropolitan government and grantee, a franchise shall be in full force and effect for a term and period of fifteen years, ending on the anniversary date of the franchise.

B.

Renegotiation At Five Years. The metropolitan government and grantee shall have the right to renegotiate in good faith, at the fifth and tenth anniversary dates of the franchise, the amount, nature and terms of compensation to be paid by grantee for use of the public rights-of-way during the term of this franchise. Any adjustment to compensation shall become effective on the next succeeding anniversary date. In order to renegotiate compensation, the metropolitan government, acting through its director of finance, shall give written notice to grantee at least sixty days prior to the fifth and tenth year anniversary dates. Said notice shall contain the franchise's proposed schedule of compensation. The terms of any such compensation shall be reflected in an amendment to this franchise and shall be nondiscriminatory and reasonable. No such amendment may take effect without the approval, by ordinance, of the metropolitan council.

C.

Dispute Resolution. If grantee shall in good faith maintain that the amount, terms or nature of any adjustment to compensation proposed by the metropolitan government pursuant to Section 6.26.260(B) is excessive or unreasonable, given the value of the privileges granted under this chapter and grantee's franchise, grantee shall enter into good faith negotiations with the metropolitan government as expeditiously as possible to reach an agreement as to the adjustment to compensation prior to the five-year anniversary date. In the event that an agreement as to adjustment to compensation is not reached prior to such anniversary date, grantee shall have the right to make a demand for arbitration in writing to the director of information systems within thirty days after such anniversary date. In such event, the metropolitan government and grantee shall each appoint an arbitrator and a third arbitrator shall be appointed by the arbitrators so appointed. Each arbitrator shall have at least five years of experience in the field of rights-of-way procurement. Pursuant to the then current rules of the American Arbitration Association, or any successor organization, an arbitration shall be held as expeditiously as possible.

(Amdt. 1(24) to Ord. 94-1103, 7/19/94; Ord. 94-1103 § 26, 1994)