Citrus Heights Municipal Code Div. 3 Issuance and Renewal of Franchises

Except with respect to renewal of a preexisting franchisee, no franchise to operate a cable television system shall be issued within the Sacramento Community except pursuant to a request for proposals and selection of the franchisee on the basis of any proposals submitted in response to the request.

(Ord. No. 97-12, § 2(5.50.200), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

The request for proposals for the initial CATV franchise shall be approved and issued by the governing bodies of the county and cities. The request for proposals for franchises subsequently issued under the provisions of this article shall be approved and issued by the board of directors of the cable television commission.

(Ord. No. 97-12, § 2(5.50.202), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

The request for proposals shall identify bidding alternatives vested in applicants by the terms of this article, establish the procedure for submission of applications, consideration of applications, selection of the successful applicant and issuance of the franchise, establish fees to be paid by applicants and the franchisee to cover costs of preparation, solicitation, selection and award, and prescribe such terms, conditions and requirements relating to the franchise consistent with the express provisions of this article as the issuing authority, in its discretion, may determine.

(Ord. No. 97-12, § 2(5.50.204), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

Applications for a franchise submitted in response to a request for proposals shall be sealed at the time of submission by an applicant. Prior to the deadline for submission of applications, it shall be unlawful for any applicant and any officer, agent, or employee thereof to, whether directly or indirectly, exchange information concerning proposals, enter into any agreement or understanding, or take any other action for the purpose of reducing or eliminating competition among applicants in the selection process.

(Ord. No. 97-12, § 2(5.50.206), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

For each franchise issued pursuant to the provisions of this article, one or more environmental analysis shall be undertaken pursuant to the provisions of the California Environmental Quality Act, Public Resources Code § 21000 et seq. The provisions of this article, requests for proposals, and resolution offering the franchise shall be subject to amendment for the purpose of implementing any changes dictated by the environmental analysis.

(Ord. No. 97-12, § 2(5.50.208), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

The franchisee for the initial CATV franchise shall be tentatively selected by the governing body of the county and the governing body of the municipality of Sacramento as a combined issuing authority in accordance with the following procedure.

A public hearing on one or more dates shall be held by the governing body of the county and the governing body of the municipality of Sacramento sitting jointly for the purpose of receiving presentations by the applicants for the franchise and comments from the public. Notice of the time, date, place and purpose of the hearing shall be given in the manner prescribed by section 90-38 in division 1, and mailed to each applicant.

After the conclusion of the public hearing, balloting for selection of the franchisee shall be conducted jointly by the governing bodies of the municipality of Sacramento and county. The joint balloting shall take place either during the meeting at which the public hearing is closed or during a separately scheduled meeting. In any event, the joint balloting shall be conducted solely during a single meeting of the governing bodies meeting jointly. The failure of a member of either governing body to be present during a portion or the entirety of the public hearing shall not be deemed to disqualify that member from voting in the joint balloting.

During the joint balloting, the applicant who first receives three votes by members of the governing body of the county and, during the same balloting, five votes by members of the governing body of the municipality of Sacramento shall be deemed to have been selected as the franchisee for the initial CATV franchise.

The joint balloting shall be conducted as follows:

a. Each member of the governing bodies present shall simultaneously cast a written, secret ballot which contains the name of the voting member and name of the applicant for whom the vote for selection is cast. The clerk of each governing body shall announce the votes immediately following the balloting. The announcement shall include the name of each voter and identification of the applicant for whom the ballot was cast.

b. If as a result of the first balloting the franchisee is not selected, a second balloting shall be conducted in the same manner as the first, and announced in the same manner as the first.

c. If as a result of the second balloting a franchisee has not been selected, a third balloting shall be conducted in the same manner as the first two, with the following exception. The applicant who received the lowest combined number of votes on the second balloting shall be deemed eliminated from competition, and no vote on the third balloting may be cast for that applicant.

d. If as a result of the third balloting a franchisee has not been selected, a fourth balloting shall be conducted in the same manner as the third, with the following exception. The applicant who received the lowest combined number of votes on the third balloting shall also be deemed eliminated from competition, and no vote on the fourth balloting may be cast either for that applicant or the applicant who was eliminated from the third balloting.

e. If as a result of the fourth balloting a franchisee has not been selected, a fifth balloting shall be conducted in the same manner as the fourth, with the following exception. The applicant who received the lowest combined number of votes on the fourth balloting shall also be deemed eliminated from competition, and no vote on the fifth balloting may be cast either for that applicant or the applicants who were eliminated from the third and fourth balloting.

Any member of the governing bodies shall be authorized to cast a vote of abstention during a particular balloting, and such a vote shall not prevent the member from casting a vote in favor of a particular applicant on any later ballot.

If as a result of the fifth balloting a franchisee has not been selected, new balloting shall be conducted in exactly the same manner as prescribed by subparagraphs "a" through "e," above, and applicants disqualified from competition during balloting initially conducted pursuant to said subparagraphs shall not be disqualified during the subsequent balloting conducted pursuant to said subparagraphs except in accordance with those subparagraphs during the subsequent balloting.

If as a result of the fifth balloting during the subsequent balloting a franchisee has not been selected, further repetitive balloting may be conducted pursuant to the provisions of subparagraph "a," above. Applicants previously eliminated from competition shall not be deemed eliminated during such further balloting pursuant to subparagraph "a."

The meeting during which the joint balloting occurs shall be subject to periodic recess for periods not exceeding 15 minutes more or less, in duration, and shall not be subject to continuance to a later time or date. Either governing body shall be authorized to separately adjourn the meeting by an affirmative vote of a majority of the members of that body. If one or both of the governing bodies adjourn the meeting prior to selection of the franchisee, the vote upon the motion for adjournment shall be deemed to constitute a rejection of all applications, and no franchise shall be issued pursuant to that request for proposals.

(Ord. No. 97-12, § 2(5.50.210), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

Not later than 30 calendar days after selection of the franchisee for the initial CATV franchise pursuant to the provisions of section 90-126, above, any of the governing bodies of the municipalities of Folsom, Isleton or Galt which have adopted this article may disapprove the selection by resolution duly adopted by the disapproving governing body. In the event of adoption of such a resolution, the initial CATV franchise shall not be applicable to the geographical area within the boundaries of that municipality, the franchise area shall be deemed to exclude such geographical territory, the municipality shall be deemed to have withdrawn its membership from the cable television commission, and the franchisee shall, in advance of adoption of a resolution offering the franchise, redesign the cable television system proposed in the application to eliminate installation thereof within the disapproving municipality.

In the event such a resolution is not adopted by the governing body of one or more of the three municipalities which have enacted this article, the board of directors of the cable television commission shall be deemed fully empowered to issue the initial CATV franchise, and such franchise shall be deemed to be fully applicable within the geographic territory of such municipality.

(Ord. No. 97-12, § 2(5.50.212), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

The board of directors of the cable television commission shall tentatively select all franchisees for franchises issued pursuant to the provisions of this article, except the franchisee for the initial CATV franchise. Prior to tentative selection, the board shall conduct a public hearing for the purpose of receiving presentations from the applicants and comments from the public. Notice of the hearing shall be given in the manner prescribed by section 90-38 in division 1, and mailed to the applicants.

Between the date of tentative selection of a franchisee and approval of the resolution offering the franchise, the governing bodies of the county and municipality of Sacramento, or subcommittees thereof, sitting jointly with respect to the initial CATV franchise, and the board of directors of the commission, or a subcommittee thereof, with respect to any other franchise, shall conduct a public hearing for the purpose of receiving comments from proposed recipients of services, resources or benefits in relation to the determinations required by section 90-201 in subdivision I of division 4. Notice of the hearing shall be given in the manner prescribed by section 90-38 in division 1, and mailed to the tentative selectee and all proposed recipients as identified in the application by the tentative selectee and pursuant to the provisions of said section 90-201.

With respect to the initial CATV franchise, the tentative selection shall not become final until the governing bodies of the municipality of Sacramento and county have approved identical resolutions offering the franchise. The resolution offering the franchise approved by the governing bodies shall be adopted without change by the board of directors of the commission pursuant to section 90-130, below. The board of directors shall not be authorized to adopt a resolution offering the initial CATV franchise unless such resolution has been approved in advance by said governing bodies.

With respect to any franchise issued pursuant to the provisions of the article other than the initial CATV franchise, the tentative selection of the franchisee shall not become final until the board of directors of the commission adopts the resolution offering the franchise pursuant to section 90-130, below.

If a tentative selection has not been made within nine months following the deadline for submission of applications established by a request for proposals, all applications shall be deemed rejected, and no franchise shall be issued pursuant to that request for proposals.

At any time prior to adoption of the resolution offering the franchise pursuant to section 90-130, below, either the governing body of the county or municipality of Sacramento with respect to the initial CATV franchise, or the board of directors of the commission with respect to any other franchise to be issued under this article, may reject the tentative selectee.

If the resolution offering the franchise has not been adopted within six months following the date of tentative selection of a franchisee, the tentative selectee shall be deemed to have been rejected.

If, for any reason, the tentative selectee shall be deemed to have been rejected or the resolution offering the franchise shall be deemed to have been repealed pursuant to provisions of these franchise documents, the governing bodies of the county and the municipality of Sacramento with respect to the initial CATV franchise, or the board of directors of the commission with respect to any other franchise to be issued under this article, may select a new tentative selectee pursuant to the procedures set forth in this article from among those applications previously submitted and may offer a franchise pursuant to the request for proposals by which the applications were solicited.

(Ord. No. 97-12, § 2(5.50.214), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

Determination of whether a request for proposals will be issued shall be vested within the exclusive discretion of the issuing authority. Upon the receipt of applications for a franchise to operate a cable television system, the issuing authority may, in its sole discretion, either award a franchise to the successful applicant or reject all applications. Selection of the successful applicant and party to whom a franchise will be issued shall be vested within the exclusive discretion of the issuing authority, and may be made upon the basis of such factors or criteria as the issuing authority, in its sole discretion, may elect.

(Ord. No. 97-12, § 2(5.50.216), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

Each franchise issued pursuant to the provisions of this article shall be issued by and in the name of the board of directors of the cable television commission as the issuing authority. A franchise shall be offered to the successful applicant by resolution duly adopted by the board of directors of the cable television commission. The resolution may prescribe terms, conditions, or requirements respecting the franchise which are in addition to those set forth in this article, but which are not inconsistent with the express terms of this article. The resolution may also prescribe terms, conditions or requirements respecting the franchise which are in addition to or in conflict with the provisions of the request for proposals and application by the party to whom the resolution offers the franchise.

(Ord. No. 97-12, § 2(5.50.218), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

The resolution offering the franchise shall be deemed repealed 30 calendar days after its adoption unless not later than the 30th day following adoption of the resolution the party to whom the franchise is offered files a (1) certificate in writing which expressly and unconditionally accepts the franchise in compliance with terms, conditions and requirements of the resolution, application, request for proposals and this article. The certification shall be signed by a person duly authorized to act in behalf of the franchisee, shall be notarized, shall have attached thereto, a (2) certified copy of an order by the board of directors of the franchisee directing execution and filing of the certification, and shall be (3) accompanied by any fee required by the request for proposals, and (4) the performance bond, (5) security deposit and (6) policy or policies of insurance prescribed by sections 90-371, 90-372, and 90-375, respectively, in subdivision V of division 4, and (7) the documents required by section 90-432 in subdivision II of division 5. The certification and accompaniments shall be filed with the clerk of the board of directors of the cable television commission. A certification which constitutes a qualified acceptance or places other limits or conditions thereon, shall be deemed to be a nullity and the resolution shall be deemed to be repealed and all applications rejected. The 30-day period for acceptance prescribed by this section may be extended either prior or subsequent to its expiration by the board of directors of the commission through express action which prescribes the period of extension.

Filing of the certification in the manner and within the time prescribed above shall effect issuance of the initial CATV franchise. With respect to any franchise other than the initial CATV franchise, the procedure prescribed above shall effect issuance of the franchise, unless issuance is disapproved pursuant to the provisions of section 90-132, below.

(Ord. No. 97-12, § 2(5.50.220), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

Not later than 30 calendar days after certification of acceptance of any franchise other than the initial CATV franchise, issuance of the franchise may be disapproved by resolution adopted by the governing body of any directly affected agency. The county and municipalities of Sacramento, Folsom, Isleton and Galt will be deemed to be directly affected if the franchise area for the franchise would include territory within their jurisdictions.

Adoption of such a resolution shall be deemed to nullify the resolution offering the franchise and certification of acceptance, and all applications shall be deemed rejected.

(Ord. No. 97-12, § 2(5.50.222), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

The term of the initial CATV franchise shall be 20 years from the date of filing of the certificate of acceptance pursuant to the provisions of section 90-131, above. The term of any franchise issued pursuant to the provisions of this article other than the initial CATV franchise shall be as prescribed by the board of directors of the cable television commission in its sole discretion, and set forth in the request for proposals; provided that no such franchise shall expire later than December 31, 2007.

(Ord. No. 97-12, § 2(5.50.224), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

Any franchise issued pursuant to the provisions of this article, may be renewed by the cable television commission upon such terms, conditions and requirements as the commission, in its discretion, may prescribe for a period which does not exceed the term of the agreement of formation of the commission as prescribed by paragraph 9, thereof.

(Ord. No. 97-12, § 2(5.50.226), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

A franchisee who desires to renew its franchise shall file a written request for renewal with the clerk of the board of directors of the cable television commission not later than 48 calendar months prior to the date of expiration of the franchise. The request for renewal shall include the following:

a. A statement of the period of renewal proposed by the franchisee;

b. A description of any improvements in the cable television system and in services proposed by the franchisee in the event the franchise is renewed;

c. Any changes in the terms, conditions or requirements of the franchise proposed by the franchisee to be applicable during the period of renewal; and

d. Such other and further information as the commission may request.

(Ord. No. 97-12, § 2(5.50.228), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

The board of directors of the cable television commission shall schedule a public hearing upon the request for renewal to commence not later than 180 calendar days after request is filed. Notice of the hearing shall be given in the manner prescribed by section 90-38 in division 1.

The commission shall be authorized to retain a consultant to provide information and advice respecting any issues raised by the request for renewal.

(Ord. No. 97-12, § 2(5.50.230), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

Not later than one year after a request for renewal is filed, the board of directors of the cable television commission shall decide whether renewal of the franchise will be offered to the franchisee. Decision as to whether renewal will be offered to the franchisee, shall, except as provided by section 90-140, below, be vested within the sole discretion of the board of directors of the commission, shall be made on the basis of such factors or criteria as the board of directors of the commission may in its discretion elect, and upon such terms, conditions or requirements as the board of directors in its discretion may prescribe.

If the board of directors of the commission fails to decide whether to offer renewal of the franchise to the franchisee within the time prescribed above, the request for renewal shall be deemed denied and the franchise shall terminate at the expiration of its terms.

(Ord. No. 97-12, § 2(5.50.232), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

In the event the board of directors of the cable television commission decides to offer renewal to the franchisee, it shall, not later than one year after the request for renewal is filed, adopt a resolution offering renewal of the franchise to the franchisee. The resolution may prescribe terms, conditions or requirements respecting the franchise which are in addition to those set forth in this article, but which are not inconsistent with the express terms of this article. The resolution may also prescribe terms, conditions or requirements respecting the franchise which are in addition to or in conflict with the provisions of the request for renewal and original franchise resolution. In the event of a conflict between the provisions of the request for renewal and the provisions of the resolution adopted pursuant to this section, the provisions of the resolution shall prevail. In the event of a conflict between the provisions of the original franchise resolution and the provisions of the resolution adopted pursuant to this section, the provisions of the later resolution shall prevail.

(Ord. No. 97-12, § 2(5.50.234), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

The resolution offering renewal shall be deemed repealed and the request for renewal rejected 20 calendar days after its adoption unless not later than the 20th day following adoption the franchisee files a certification in writing which expressly and unconditionally accepts renewal of the franchise in compliance with the terms, conditions and requirements of the resolution, request for renewal and this article. The certification shall be signed by a person duly authorized to act in behalf of the franchisee, shall be notarized, shall have attached thereto a certified copy of an order by the board of directors of the franchisee directing execution and filing of the certification, and shall be accompanied by the performance bond, security deposit and policy or policies of insurance prescribed by sections 90-371, 90-372, and 90-375, respectively, in subdivision V, division 4, and the documents required by section 90-432 in subdivision II of division 5. The certification and accompaniments shall be filed with the clerk of the board of directors of the cable television commission. A certification which constitutes a qualified acceptance or places other limits or conditions thereon shall be deemed to be a nullity and the resolution shall be deemed to be repealed and the request for renewal denied. The 20-day period for acceptance prescribed by this section may be extended either prior or subsequent to its expiration by the board of directors of the commission through express action which prescribes the period of extension.

Filing of the certification in the manner and within the time prescribed above shall renew the franchise, unless renewal is disapproved pursuant to the provisions of section 90-140, below.

(Ord. No. 97-12, § 2(5.50.236), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

Not later than 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 with 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 within the geographical boundaries of the disapproving municipalities.

(Ord. No. 97-12, § 2(5.50.238), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

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 90-134, above, 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 a period from the date of the franchisee's application for the initial CATV franchise to the inception of the renewal, extension or continuation period.

(Ord. No. 97-12, § 2(5.50.239), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

The cable television commission shall have the right to purchase real and personal property as described by section 90-143, below, 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:

a. In the event of termination of a franchise in advance of the expiration of its term pursuant to the provisions of sections 90-463 through 90-467 in subdivision III of division 5;

b. At the expiration of the term of a franchise, if the franchise is not renewed to the franchisee by the commission pursuant to the provisions of sections 90-134 through 90-140, above.

(Ord. No. 97-12, § 2(5.50.240), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

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 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.

(Ord. No. 97-12, § 2(5.50.242), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

The right to purchase as prescribed by section 90-142, above, 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.

(Ord. No. 97-12, § 2(5.50.244), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

As used in this section through section 90-152, below, the following terms shall be ascribed the following meanings:

a. "Book value" shall mean the capital amount at which property is shown on the books of 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 15 years, plus additions to capital.

b. "Market value" shall mean 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.

c. "Replacement cost" shall mean 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.

d. "Going concern value" shall mean 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 probable 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.

Except to the extent inconsistent with the express provisions of this section through section 90-152, below, 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 publication 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.

(Ord. No. 97-12, § 2(5.50.246), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

The property which is purchased shall be valued as follows:

a. In the event the right to purchase is exercised pursuant to the contingency prescribed by subparagraph "a" in section 90-142, above, as a result of termination of a franchise on grounds identified by section 90-463 in subdivision III of division 5, 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.

b. In the event the right of purchase is exercised pursuant to any contingency prescribed by this article other than those specified in subparagraph "a," above, the value of all tangible assets acquired shall be the replacement cost and the value of 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 90-39 in division 1, above, 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 subparagraph "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.

(Ord. No. 97-12, § 2(5.50.248), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

The date of valuation for purchase pursuant to the provisions of this article shall be the day immediately following the date of expiration or termination of the franchise.

(Ord. No. 97-12, § 2(5.50.250), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

Proceedings for the acquisition by the cable television commission or its assignee under this article shall be commenced by written notice mailed to the franchisee of a request by the commission or its assignee for an inventory of the franchisee's property. Such a notice shall not be mailed earlier than the following dates:

a. The date a determination by the board of directors of the commission to terminate the franchise becomes final under sections 90-465 or 90-466 in subdivision III of division 5, when the purchase is made pursuant to the contingency prescribed by subparagraph "a" of section 90-142, above;

b. The date of a determination made pursuant to the provisions of section 90-137, above, by the board of directors of the commission not to renew the franchise, or the date renewal is deemed denied, when the purchase is made pursuant to the contingency prescribed by subparagraph "b" of section 90-142, above; or

c. The date of a determination made pursuant to the provisions of section 90-430 in subdivision II of division 5 by the board of directors of the commission to purchase the property, when the purchase is made pursuant to the contingency prescribed by subparagraph "c" in section 90-142, above.

(Ord. No. 97-12, § 2(5.50.252), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

Not later than 30 calendar days after the date of mailing of the notice of request for inventory, the franchisee shall file with the clerk of the board of directors of the cable television commission a written inventory which includes the following:

a. A complete plan, with specifications, of the entire cable television system installed at any time during the term of the franchise.

b. An identification of all real property which is subject to the right of acquisition by the commission or its assignee, showing the address and legal descriptions thereof, and including a description of all buildings (including the square footage thereof) and other improvements thereon;

c. A list of all cameras and other studio production equipment; mobile production equipment; office and other furnishings; vehicles for service and repairs; inventories of materials, supplies and parts; tools; and other personal property utilized within the Sacramento Community to provide services under the franchise (such lists shall show the manufacturers, model and serial numbers, dates or manufacture and dates of acquisition of such property); and

d. Copies of all leases, chattel and other mortgages and other instruments evidencing an interest by any third party in any of the property identified by this section.

(Ord. No. 97-12, § 2(5.50.254), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

Not later than 30 calendar days after the date on which the franchisee files the inventory, the cable television commission or its assignee may mail to the franchisee written notice of its tentative intention to exercise its right to purchase, including a list of all property which the commission or its assignee has tentatively elected to purchase, and a demand for arbitration.

(Ord. No. 97-12, § 2(5.50.256), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

The arbitration panel shall be selected, the hearing scheduled within the time prescribed, notice given, the hearing conducted, decision made and costs divided in the manner prescribed by sections 90-469 through 90-474, inclusive in subdivision III of division 5. The franchisee shall make its cable television system, other property and books, accounts and other records available, upon request, for inspection by the cable television commission, its assignee or their experts. The discovery provisions of the California Arbitration Act (Code of Civil Procedure § 1280 et seq.) shall be applicable to the arbitration proceeding under this section.

The questions which may be submitted to the arbitration panel and jurisdiction of the panel shall be limited to the following:

a. The amount to be paid by the commission or its assignee under the valuation limits prescribed by section 90-146, above; and

b. Interpretation of the provisions of the franchise documents solely in relation to the issues within its jurisdiction.

Upon request by the commission or its assignee or the franchisee or upon its own initiative, the arbitration panel shall appoint and retain one or more independent experts for the purpose of providing advice upon the valuation issues to be determined.

The arbitration award may be judicially enforced, shall be final, binding and conclusive upon the parties and shall not be subject to judicial review or vacation except on grounds set forth in Code of Civil Procedure § 1286.2.

(Ord. No. 97-12, § 2(5.50.258), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

With respect to any proceeding in which the arbitration panel makes valuation determinations in advance of the termination or expiration of the franchise, the same panel shall be available to receive and determine values for any additions to, replacements of or other acquisitions of property tentatively elected to be purchased which have occurred subsequent to the award made pursuant to section 90-151, above[.] Such determinations shall be initiated by written notice mailed to the arbitration panel by the franchisee and filed with the clerk of the board of directors of the cable television commission, shall be governed by all standards, procedures and other provisions in section 90-145 through this section, and written recital thereof shall be mailed to the franchisee, commission and its assignee (if any) not later than 90 calendar days following the date of mailing of the notice initiating the determination. No such notice shall be mailed or filed later than 120 calendar days prior to the date of expiration or termination of the franchise.

(Ord. No. 97-12, § 2(5.50.260), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

In the event a franchisee or the cable television commission or its assignee fails to comply with any provision contained in sections 90-142 through 90-154, inclusive, above, the injured party shall be authorized to either seek judicial relief or relief from the arbitrator during the arbitration proceeding. In the event judicial relief is sought, the provisions of sections 90-151 and 90-152, above, shall not be deemed to deprive the court of jurisdiction to interpret the provisions of this article, and any such interpretation shall be binding upon the arbitrator.

(Ord. No. 97-12, § 2(5.50.262), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

Not later than 30 calendar days following the date of expiration or termination of the franchise, the cable television commission or its assignee shall notify the franchisee of its intention to purchase the property identified in the notice mailed pursuant to the provisions of section 90-150, above. The purchase price shall be the value as determined by the arbitration panel. The election to purchase shall be evidenced by a written notice so stating mailed to the franchisee not later than 30 calendar days following the date of expiration or termination of the franchise. The failure to mail such notice within the time prescribed herein shall be conclusively presumed to constitute an election not to purchase the property pursuant to the provisions of this article, and the franchisee shall not be entitled to any compensation for such property or other costs or damages, whether related to conduct of the arbitration proceedings, or otherwise. If any notice, memorandum or report required by sections 90-151 or 90-152, above, has not been received by the date of expiration or termination of the franchise, the notice of election herein need not be mailed until 30 calendar days following the date of receipt of such notice, memorandum or report.

The purchase price shall be deposited into an escrow of a title company named by the commission or its assignee. The title company shall be authorized to pay the purchase price as directed by the franchisee when it can provide for the commission or its assignee grant deeds with respect to real property, bills of sale with respect to personal property or other evidences of title vesting insured title in the commission or its assignee free and clear of all liens and encumbrances except easements and rights-of-way respecting the real property which do not impair its use for the purposes intended, and assignments of leases, if any, with respect to real or personal property which is leased. The seller or sellers shall pay all title insurance, recording, escrow and closing fees and costs.

(Ord. No. 97-12, § 2(5.50.264), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)

The provisions of this division shall not be deemed to preclude acquisition by the cable television commission or its assignee through a negotiated agreement; provided that the commencement or existence of such negotiations shall not be deemed to waive or relieve any actions or times therefore prescribed by sections 90-149 through 90-154, above.

(Ord. No. 97-12, § 2(5.50.266), 2-13-1997; Ord. No. 97-21, § 2, 12-10-1997)