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(a) Rights to purchase. In the event the city terminates the license or franchise agreement pursuant to any provisions of this chapter, or in the event the licensee or franchisee permanently abandons operation of its facilities within the city in whole or in part, the city shall have the first option, directly or as an intermediary, to purchase the system. The city shall have ninety (90) days prior to the effective date of expiration or termination to notify the licensee or franchisee and the utility to whom the licensee's or franchisee's equipment is attached of the city's intent to exercise the option to purchase stated herein.
(b) Valuation. In the event of a termination of the license or franchise agreement by the city, the value of the system shall be solely based on the book value of the tangible assets of the system. Upon normal expiration of the license or franchise agreement the value of the system shall be solely based on the fair market value of the tangible assets of the system.
(1) "Book value" is defined as the original or historical cost of the assets less accumulated depreciation.
(2) No value shall be assigned to either the license or franchise itself, the license or franchise agreement or any right, privilege or expectancy arising out of the privilege to transact business under the license or franchise and the license or franchise agreement nor shall any value be assigned to goodwill or as a going concern.
(3) "Valuation" as referred to above shall be determined by audit of system assets pursuant to generally accepted auditing principles, and shall be performed by a certified public accounting firm selected by the city at the licensee or franchisee's expense. In the event of permanent abandonment of all or some of licensee or franchisee's facilities by the licensee or franchisee, such facilities shall be valued pro tanto at zero dollars for the purposes of this section.
(c) Date of valuation. The date of valuation shall be the effective date of expiration or termination of the license or franchise agreement or abandonment of the facilities.
(d) Transfer to city. Upon exercise of the city's option to purchase and written notice of such action by the city upon the licensee or franchisee, the licensee or franchisee shall, immediately upon payment of the purchase price by the city, transfer to the city possession and legal title to all system facilities and property, both real and personal, free from any and all liens and encumbrances not agreed to be assumed by the city in lieu of a portion of the purchase price; and the licensee or franchisee shall execute such warranty deeds or other instruments of conveyance to the city as shall be necessary to effectuate this transfer.
(Ord. No. 8522, § 1, 6-12-95; Ord. No. 8545, § 6, 7-10-95)