The city or its designee shall have the right to purchase real and personal property as described by Section 4.36.020 which property is owned or in which an interest is held by the grantee, any parent company of the grantee, any subsidiary of the grantee or any other entity in which the grantee or 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 the termination of a franchise in advance of the expiration of its terms pursuant to the provisions of Sections 4.44.080 through 4.44.120; or
B. 
At the expiration of the term of a franchise, if the franchise is not renewed to the grantee by the city pursuant to the provisions of Section 4.08.200.
(County code § 11-1.701)
A. 
The property which is subject to purchase by the city shall consist of the following:
1. 
The cable communications system;
2. 
Land, buildings and other improvements situated within the exterior boundaries of the city (including both incorporated and unincorporated areas) and utilized by the grantee to provide services under the franchise, including studio facilities;
3. 
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 dedicated for use within the city to provide services under the franchise and which the city council determines is peculiarly designed for that purpose; and
4. 
Books, accounts and records relating to the grantee's business, including subscriber lists.
B. 
There shall be excluded from the purchase of any parcel of land and improvements or leasehold, space which is utilized exclusively for business office purposes and not, for example, repair purposes associated with the operation of the cable communications system.
C. 
Notwithstanding any provision to the contrary, the city council, 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 communications system is situated and which the city council determines is not essential to the system or the provision of services thereunder.
(County code § 11-1.702)
The right to purchase as prescribed by Section 4.36.010 may be exercised by the city for public ownership and use by the city in behalf of a third party or by any party to whom the city may 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 grantee. Such an assignee, subsequent to the date of assignment, shall be vested with any and all discretion respecting the purchase which is vested in the city council. The city may condition the grant of a franchise upon agreement by the grantee to accept the assignment of and to exercise a right to purchase the real and personal property of an existing grantee.
(County code § 11-1.703)
A. 
As used in this section and Sections 4.36.050 through 4.36.110, and to the extent consistent with Section 627 of the Act, the following terms shall be ascribed the meanings set forth in this section:
"Fair 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.
"Going concern value"
shall mean the benefits which attach to the business as a result of its location within the franchise area, the grantee's reputation among subscribers or potential subscribers for dependability and quality of service, and any other circumstances resulting in the probable retention of old subscribers or the acquisition of new subscribers; provided, however, no value shall be assigned to either the franchise itself or any right, privilege or expectancy arising to the grantee 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 communications system beyond the termination date or expiration date of the franchise, whichever is sooner.
B. 
Except to the extent inconsistent with the express provisions of this section and Sections 4.36.050 through 4.36.110, the words of this section shall be ascribed the meanings and the appraisal and valuation standards, methodology, approaches and processes respecting the determination of the amount to be paid for property which the city council or its assignee is entitled to purchase and shall comply with and be consistent with those set forth in that 1975 publication entitled "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 the Society of Real Estate Appraisers.
(County code § 11-1.704)
The property which is purchased shall be valued at its fair market value determined in accordance with subsection (a) of Section 627 of the Act and Section 4.36.040 of this chapter.
(County code § 11-1.705)
The date of valuation for purchases pursuant to the provisions of this chapter shall be the day immediately following the date of the expiration or termination of the franchise.
(County code § 11-1.706)
Proceedings for the acquisition by the city or its assignee under this chapter shall be commenced by a written notice mailed to the grantee of a request by the city or its assignee for an inventory of the grantee's property. Such a notice shall not be mailed earlier than the following dates:
A. 
The date a determination by the city council to terminate the franchise becomes final under Section 4.44.100 or 4.44.110 when the purchase is made pursuant to the contingency prescribed by Section 4.36.010(A); or
B. 
The date of a determination made by the city council not to renew the franchise or the date renewal is deemed denied, when the purchase is made pursuant to the contingency prescribed by Section 4.36.010.
(County code § 11-1.707)
Not later than thirty calendar days after the date of the mailing of the notice of a request for an inventory, the grantee shall file with the city clerk a written inventory which shall include the following:
A. 
A complete plan, with specifications, of the entire cable communications 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 city or its assignee, showing the address and the 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 services and repairs; inventories of materials, supplies and parts; tools; and other personal property utilized within the community to provide services under the franchise (such lists shall show the manufacturers model and serial numbers, dates of 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.
(County code § 11-1.708)
Not later than thirty calendar days after the date on which the grantee files the inventory, the city or its assignee may mail to the grantee written notice of its tentative intention to exercise its right to purchase, including a list of all property which the city or its assignee has tentatively elected to purchase, and a demand for arbitration.
(County code § 11-1.709)
A. 
The arbitration panel shall be selected, the hearing scheduled within the time prescribed, notice given, the hearing conducted, a decision made and the costs divided in the manner prescribed by Sections 4.44.140 through 4.44.190. The grantee shall make its cable communications system, other property and books, accounts and other records available, upon request, for inspection by the city or its assignee or their experts. The discovery provisions of the California Arbitration Act (Sections 1280, et seq., of the Code of Civil Procedure of the state) shall be applicable to the arbitration proceedings under this section.
B. 
The questions which may be submitted to the arbitration panel and the jurisdiction of the panel shall be limited to the following:
1. 
The amount to be paid by the city or its assignee under the valuation limits prescribed by Section 4.36.050; and
2. 
An interpretation of the provisions of the franchise documents solely in relation to the issues within its jurisdiction.
C. 
Upon a request by the city or its assignee or the grantee 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.
D. 
The arbitration award may be judicially enforced, shall be final, binding and conclusive upon the parties, and shall not be subject to Section 1286.2 of the Code of Civil Procedure of the state.
(County code § 11-1.710)
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 4.36.100. Such determination shall be initiated by a written notice mailed to the arbitration panel by the grantee and filed with the city clerk and shall be governed by all the standards, procedures and other provisions of Sections 4.36.040 through 4.36.100 and this section and written recital thereof shall be mailed to the grantee, city clerk and the city's assignee (if any) not later than ninety calendar days following the date of the mailing of the notice initiating the determination. No such notice shall be mailed or filed later than one hundred twenty calendar days prior to the date of the expiration or termination of the franchise.
(County code § 11-1.711)
In the event a grantee or the city or its assignee fails to comply with any provision contained in Sections 4.36.010 through 4.36.130, the injured party shall be authorized to either seek judicial relief or relief from the arbitrator during the arbitration proceedings. In the event judicial relief is sought, the provisions of Sections 4.36.100 and 4.36.110 shall not deprive the court of jurisdiction to interpret the provisions of this chapter, and any such interpretation shall be binding upon the arbitrator.
(County code § 11-1.712)
A. 
No later than thirty calendar days following the date of the expiration or termination of a franchise, the city or its assignee shall notify the grantee of its intention to purchase the property identified in the notice mailed pursuant to the provisions of Section 4.36.090. 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 grantee not later than thirty calendar days following the date of the expiration or termination of the franchise. The failure to mail such notice within the time prescribed in this section shall conclusively be presumed to constitute an election not to purchase the property pursuant to the provisions of this chapter, and the grantee shall not be entitled to any compensation for such property or other costs or proceedings or otherwise. If any notice, memorandum or report required by Section 4.36.100 or 4.36.110 has not been received by the date of the expiration or termination of the franchise, the notice of election required by this section need not be mailed until thirty calendar days following the date of the receipt of such notice, memorandum or report.
B. 
The purchase price shall be deposited into an escrow of a title company named by the city or its assignee. The title company shall be authorized to pay the purchase price as directed by the grantee when it can provide for the city 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 city 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.
(County code § 11-1.713)
The provisions shall not preclude acquisition by the city or its assignee through a negotiated agreement; provided, however, the commencement or existence of such negotiations shall not waive or relieve any actions or times therefore prescribed by Sections 4.36.080 through 4.36.130.
(County code § 11-1.714)
It is the policy of the city that no territory or subscriber not served by a franchise shall bear the financial burden of any purchase made pursuant to this chapter.
(County code § 11-1.715)