Chapter 5.08
FRANCHISES
Sections:
5.08.010 Chapter applicability.
5.08.020 Chapter as part of franchise agreement.
5.08.030 Written report required – Contents.
5.08.040 Amounts paid subject to audit.
5.08.010 Chapter applicability.
All franchises hereinafter granted and entered into by the city shall be subject to this chapter. (Ord. 92-106, 1992)
5.08.020 Chapter as part of franchise agreement.
The requirements of this chapter shall be construed to be a part of any franchise agreement entered into hereinafter. (Ord. 92-106, 1992)
5.08.030 Written report required – Contents.
Not later than September 1st of each year during the term of any franchise, the franchisee shall submit a written report to the city which shall include the following:
Financial statements prepared in accordance with generally accepted accounting principles. Financial statements shall be attested to by a responsible corporate officer of the franchisee verifying that the information provided is accurate. The statements shall include income statements, balance sheets and statements of changes in financial position, together with notes and disclosures describing allocation methodology and other information needed to allow proper interpretation of the statements by an independent auditor. (Ord. 92-106, 1992)
5.08.040 Amounts paid subject to audit.
All amounts paid by the franchisee to the city shall be subject to audit and recomputation by the city based upon the financial statements provided above or any additional information requested by the city. (Ord. 92-106, 1992)
5.08.050 Audit cost.
The cost of an independent audit shall be paid as follows:
A. In the event that the audit discloses that the payment made was 99 percent accurate, the city shall pay the cost of such audit.
B. If the audit discloses that the grantee has paid more than 95 percent but less than 99 percent of the franchise fee owing for the period at issue, the city and the franchisee shall share equally in the cost of such audit.
C. If the audit discloses that the grantee has paid 95 percent or less of the franchise fee owing, then the franchisee shall pay for the cost of the audit. (Ord. 92-106, 1992)