Except with respect to renewal of a pre-existing 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.
(SCC 488 § 1, 1981)
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 chapter shall be approved and issued by the
Board of Directors of the Cable Television Commission.
(SCC 488 § 1, 1981)
The request for proposals shall identify bidding alternatives
vested in applicants by the terms of this chapter, 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 chapter as the issuing authority,
in its discretion, may determine.
(SCC 488 § 1, 1981)
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.
(SCC 488 § 1, 1981)
For each franchise issued pursuant to the provisions of this
chapter, one or more environmental analysis shall be undertaken pursuant
to the provisions of the California Environmental Quality Act commencing
at Section 21000 of the Public Resources Code. The provisions of this
chapter, 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.
(SCC 488 § 1, 1981)
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 5.50.024 in Sub-Chapter 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; and
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.
(SCC 488 § 1, 1981)
Not later than 30 calendar days after selection of the Franchisee for the Initial CATV Franchise pursuant to the provisions of Section 5.50.210, above, any of the Governing Bodies of the Municipalities of Folsom, Isleton or Galt which have adopted this chapter 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 chapter, 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.
(SCC 488 § 1, 1981)
The Board of Directors of the Cable Television Commission shall tentatively select all Franchisees for franchises issued pursuant to the provisions of this chapter, 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 5.50.024 in Sub-Chapter 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 5.50.344 in Article 4-a of Sub-Chapter 4. Notice of the hearing shall be given in the manner prescribed by Section 5.50.024 in Sub-Chapter 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 5.50.344.
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 5.50.218, 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 Chapter 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 5.50.218, 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 5.50.218, 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 chapter, 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 chapter, may select a new tentative selectee
pursuant to the procedures set forth in this chapter from among those
applications previously submitted and may offer a franchise pursuant
to the request for proposals by which the applications were solicited.
(SCC 488 § 1, 1981; SCC
516 § 1, 1982; SCC 537 § 1, 1983; SCC 556 § 2, 1983)
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.
(SCC 488 § 1, 1981)
Each franchise issued pursuant to the provisions of this chapter
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 chapter,
but which are not inconsistent with the express terms of this chapter.
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.
(SCC 488 § 1, 1981)
The resolution offering the franchise shall be deemed repealed 30 calendar days after its adoption unless not later than the thirtieth (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 chapter. 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 5.50.700, 5.50.702, and 5.50.706, respectively, in Article 4-e of Sub-Chapter 4, and (7) the documents required by Section 5.50.764 in Article 5-a of Sub-Chapter 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 5.50.222, below.
(SCC 488 § 1, 1981; SCC
556 § 3, 1983)
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.
(SCC 488 § 1, 1981)
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 5.50.220, above. The term of any franchise issued pursuant to the provisions of this chapter 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.
(SCC 488 § 1, 1981; SCC
556 § 4, 1983)
Any franchise issued pursuant to the provisions of this chapter,
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.
(SCC 488 § 1, 1981)
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.
(SCC 488 § 1, 1981)
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 5.50.024 in Sub-Chapter 1.
The Commission shall be authorized to retain a consultant to
provide information and advice respecting any issues raised by the
request for renewal.
(SCC 488 § 1, 1981)
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 5.50.238, 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.
(SCC 488 § 1, 1981)
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 chapter,
but which are not inconsistent with the express terms of this chapter.
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.
(SCC 488 § 1, 1981)
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 twentieth (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 chapter. 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 5.50.700, 5.50.702, and 5.50.706, respectively, in Article 4-e, Sub-Chapter 4, and the documents required by Section 5.50.764 in Article 5-a of Sub-Chapter 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 5.50.238, below.
(SCC 488 § 1, 1981)
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.
(SCC 488 § 1, 1981)
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 5.50.226, 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.
(SCC 565 § 4, 1983)
The Cable Television Commission shall have the right to purchase real and personal property as described by Section 5.50.242, 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:
(SCC 488 § 1, 1981; SCC
565 § 5, 1983)
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.
|
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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.
|
(SCC 488 § 1, 1981)
The right to purchase as prescribed by Section 5.50.240, 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.
(SCC 488 § 1, 1981)
Except to the extent inconsistent with the express provisions of this section through Section 5.50.260, 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.
As used in this section through Section 5.50.260, 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.
(SCC 488 § 1, 1981; SCC
565 § 6, 1983)
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 5.50.240, above, as a result of termination of a franchise on grounds identified by Section 5.50.818 in Article 5-b of Sub-Chapter 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 chapter other than those specified in Sub-Paragraph
"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 5.50.026 in Sub-Chapter 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.
(SCC 488 § 1, 1981; SCC
556 § 5, 1983; SCC 565 § 7, 1983)
The date of valuation for purchase pursuant to the provisions
of this chapter shall be the day immediately following the date of
expiration or termination of the franchise.
(SCC 488 § 1, 1981)
Proceedings for the acquisition by the Cable Television Commission
or its assignee under this chapter 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:
b.
The date of a determination made pursuant to the provisions of Section 5.50.232, above, by the Board of Directors of the Commission not to renew the franchise, or the date renewals deemed denied, when the purchase is made pursuant to the contingency prescribed by Subparagraph "b" of Section 5.50.240, above; or
(SCC 488 § 1, 1981)
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.
(SCC 488 § 1, 1981)
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.
(SCC 488 § 1, 1981)
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 Section 5.50.830 through 5.50.840, inclusive in Article 5-b of Sub-Chapter 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, Section 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 5.50.248, above; and
b.
Interpretation
of the provisions of the Franchise Documents solely in relation to
the issues within its jurisdiction.
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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.
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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 Section
1286.2 of the Code of Civil Procedure.
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(SCC 488 § 1, 1981)
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 5.50.258, 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 5.50.246 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.
(SCC 488 § 1, 1981)
In the event a Franchisee or the Cable Television Commission or its assignee fails to comply with any provision contained in Sections 5.50.240 through 5.50.264, 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 Section 5.50.258 and 5.50.260, above, shall not be deemed to deprive the Court of jurisdiction to interpret the provisions of this chapter, and any such interpretation shall be binding upon the arbitrator.
(SCC 488 § 1, 1981)
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 5.50.256, 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 chapter, 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 5.50.258 or 5.50.260, 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.
(SCC 488 § 1, 1981)
The provisions of this Sub-Chapter 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 5.50.254 through 5.50.264, above.
(SCC 488 § 1, 1981)
