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Not later than thirty (30) calendar days after certification of acceptance of renewal of a franchise, the county and cities shall be authorized to disapprove renewal.
A. If the governing body of either the county or city of Sacramento adopts a resolution disapproving renewal of the franchise within the time prescribed above, the resolution adopted by the board of directors of the cable television commission offering renewal and certification of acceptance thereof by the franchisee shall be deemed null and void, the request for renewal deemed denied, and the franchise shall terminate upon the expiration of its term.
B. If the governing body of either of the municipalities of Folsom, Isleton or Galt adopt a resolution disapproving renewal within the time prescribed above, renewal of the franchise shall nevertheless be effective in all areas of the Sacramento community except within the geographical limits of the municipality so disapproving, upon the expiration of the original term of the franchise the franchisee shall be required to remove that portion of the cable television system which is situated in the streets of the disapproving municipality as, to the extent, and upon such terms and conditions as the governing body of the disapproving municipality may prescribe, the disapproving municipality shall immediately cease to be a member of the cable television commission, the governing body of the disapproving municipality shall thereafter be authorized to issue other franchises to operate cable television systems within its geographical boundaries, and the cable television commission shall not thereafter be authorized to issue or renew a franchise within the geographical boundaries of the disapproving municipalities. (Prior code § 20.03.238)
In consideration of the granting of the initial CATV franchise, the franchisee agrees, by the filing of the certificate of acceptance, that, should the discretion of the cable television commission under Section 5.28.470 of this chapter, to prescribe terms, conditions and requirements for any renewal of the initial CATV franchise be affected, restricted, abridged, limited or impaired in any manner whatsoever by any federal or state law, regulation or judicial decision, any renewal, extension or continuation of the initial CATV franchise shall nonetheless be upon not less than the same terms, conditions and requirements as those applicable to the initial CATV franchise, provided that, in any instance in which the franchise documents require the payment of a fixed monetary amount, said amount shall be increased for such renewal, extension or continuation period by a percentage equal to the percentage increase in the consumer price index for all urban consumers published by the United States Department of Labor for the San Francisco-Oakland Bay Area over the period from the date of the franchisee's application for the initial CATV franchise to the inception of the renewal, extension or continuation period. (Prior code § 20.03.239)
The cable television commission shall have the right to purchase real and personal property as described by Section 5.28.560 of this chapter, which is owned or in which an interest is held by the franchisee, any parent company of the franchisee, any subsidiary of the franchisee or any other entity in which the franchisee, its parent company or its subsidiary has a financial interest and which is utilized to provide service under the franchise. Such right shall not arise except and shall be exercisable under the following circumstances:
The property which is subject to purchase by the cable television commission shall consist of the following:
A. The cable television system;
B. Land, buildings and other improvements situated within the Sacramento community and utilized by the franchisee to provide services under the franchise, including studio facilities;
C. Cameras and other studio production equipment; mobile production equipment; vehicles for services and repairs; inventories of materials, supplies and parts; tools; and other personal property utilized within the Sacramento community to provide services under the franchise and which the board of directors determines is peculiarly designed for that purpose; and
D. Books, accounts and records relating to the franchisee's business, including subscriber lists.
There shall be excluded from the purchase any parcel of land and improvements or leasehold space which is utilized exclusively for business office purposes and not, for example, jointly for both business office and studio, warehousing or repair purposes associated with the operation of the cable television system.
Notwithstanding any provision to the contrary, the board of directors of the commission, in its sole discretion, shall have the right to exclude from the purchase any real property (including improvements thereon) upon which no component of the cable television system is situated and which the board determines is not essential to the system or the provision of services thereunder. (Prior code § 20.03.242)
The right to purchase as prescribed by Section 5.28.550 of this chapter, may be exercised by the cable television commission for public ownership and use by the commission, in behalf of a third party, or by any party to whom the commission may assign the right. The commission shall have the right to assign the right to purchase to any third party at any time prior to payment for the purchase and transfer of titles. Written notice of any such assignment shall be mailed to the franchisee. Such an assignee shall, subsequent to the date of assignment, be vested with any and all discretion respecting purchase which is vested in the board of directors of the commission. (Prior code § 20.03.244)
As used in this section through Section 5.28.650 of this chapter, the following terms shall be ascribed the following meanings:
"Book value" means the capital amount at which property is shown on the books or account consisting of original cost, less reserves for depreciation which for purposes of application of this definition shall be calculated on a straight-line basis for a period of fifteen (15) years, plus additions to capital.
"Going concern value" means the benefits that attach to the business as a result of its location within the franchise area, the franchisee's reputation among subscribers or potential subscribers for dependability and quality of service, and any other circumstances resulting in probably retention of old subscribers or acquisition of new subscribers; provided that no value shall be assigned to either the franchise itself or any right, privilege or expectancy arising to the franchisee out of the right to transact business under the franchise, and particularly no value shall be allowed for any increase in value arising out of any expectation of revenues from the cable television system beyond the termination date or expiration date of the franchise, whichever is sooner.
"Market value" means the price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably, and assuming the price is not affected by undue stimulus.
"Replacement cost" means the direct cost of construction at current prices of an improvement having utility and technological capacity and function equivalent to the improvement being appraised but built with modern materials and according to current standards, design and layout; less depreciation and obsolescence from physical, functional and economic causes.
Except to the extent inconsistent with the express provisions of this section through Section 5.28.650 of this chapter, the words in this section shall be ascribed the meanings and the appraisal and valuation standards, methodology, approaches and processes respecting determination of the amount to be paid for property which the cable television commission or its assignee is entitled to purchase shall comply and be consistent with those set forth in that 1975 publications entitled Real Estate Appraisal Terminology, issued by the Center for Real Estate and Urban Economic Studies at the University of Connecticut, compiled and edited by Byrl N. Boyce, Ph.D., sponsored jointly by the American Institute of Real Estate Appraisers and Society of Real Estate Appraisers. (Prior code § 20.03.246)
The property which is purchased shall be valued as follows:
A. In the event the right of purchase is exercised pursuant to the contingency prescribed by subsection A of Section 5.28.550 of this chapter, above, as a result of termination of a franchise on grounds identified by Section 5.28.1860 of this chapter, the value of the cable television system, personal property and improvements attached to land to be acquired shall be solely based on the book value of the tangible assets, and the value of land owned by the seller or in which the seller has a leasehold interest with option to purchase shall be based upon the original cost thereof, no other or further value to be assigned for the tangible and intangible assets acquired; and
B. In the event the right of purchase is exercised pursuant to either the contingency prescribed by subsection A of Section 5.28.550 of this chapter, as a result of termination of a franchise on grounds identified by Section 5.28.210 of this chapter, or the contingency prescribed by subsection B of Section 5.28.550 of this chapter;
1. The value of the cable television system, personal property and improvements attached to real property to be acquired shall be the greater of market value or the replacement cost of the tangible assets,
2. The value of land owned by the seller or in which the seller has a leasehold interest shall be the market value thereof, and
3. The value of all other tangible and intangible assets acquired shall be the going concern value.
When real or personal property subject to the purchase is leased, the lease shall be subject to assignment to the cable television commission or its assignee, as prescribed by Section 5.28.090 of this chapter, and except as otherwise provided above no value shall be assigned to such property.
No value or benefits shall be assigned to the books, accounts or records, including subscriber lists, utilized in connection with the franchisee's business pursuant to valuation under subsection A of this section.
A franchisee shall not be entitled to relocation costs, and any right to such costs authorized or prescribed by law shall be deemed to have been waived by filing of the certificate of acceptance of the franchise. (Prior code § 20.03.248)
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