§ 90-145. Valuation definitions.

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)