Your implementation may be good.
Living in NY it should not stretch your imagination to think up what an implementation that meets all those criteria would look like.
Municipal broadband is the hip new thing right now so nobody half-asses it. I expect in time (like over the next 80yr) it will follow the model of other government services and everywhere that can afford the graft, boondoggles and BS will have the graft, boondoggles and BS and the Detroits and BFEs who simply can't afford to do it wrong it will be the only ones left with municipal broadband done right.
That said, if a town or city wants to do their own broadband they should be able to do so without state interference. Local government is best government. Allowing the towns to have a "well we could DIY it and not buy your services at all" option as a backstop when negotiating with ISPs furthers competition in a market that is otherwise mostly devoid of it IMO.