A. The City has approved rates for service for each franchisee by resolution. The rates may be obtained from the City Recorder’s office, and each franchisee shall post the rates on its website and make hard copies available to the public at no charge.

B. By May 15 of each year, each franchisee shall file a financial report.

C. A franchisee may, not later than May 15 of any year, apply for an adjustment in rates to take effect on July 1 of that year. The franchisee shall provide the City income and cost information sufficient to demonstrate franchisee’s profit and profit margin for the previous five years and projected profit and profit margin for the next three years. The City reserves the right to inspect documents that support the information required to be provided under this section. The Council may approve, disapprove or modify an application for rate adjustment. Any modification in rates shall be by Council resolution.

D. Franchisees shall keep accurate accounting records throughout the term of the franchise and shall maintain those records for three years after termination of the franchise. The City may require an audit of the franchisee’s books, to determine the accuracy of the franchisee’s financial reporting. The cost of the audit shall be borne by City, unless the audit results reveal an underpayment of more than eight percent of the franchise fee for the period audited. In the case of an eight percent or greater underpayment, the full cost of the audit shall be paid by the franchisee. Franchisee shall, within 30 days of receiving the audit report, pay the underpayment determined by an audit to City together with nine percent per annum interest from the date payments should have been made to the date the payment is actually made, as well as the costs of the audit, if applicable.

E. Franchisees shall bill and collect on a current billing basis. If a franchisee has experienced collection problems on a particular account, the franchisee may require a reasonable deposit, advance payment, restart fee, or other security as a condition of continuing or restarting service.

F. Rates shall be uniform or uniform within zones and classes of service. The City may approve class discounts.

G. Franchisee may require the owner of rented premises to accept responsibility for the payment for service to those facilities as a condition for providing such service. [Ord. NS-2246, 2015; Ord. NS-1930, 2004; Ord. NS-1562, 1992; Ord. NS-1272, 1980]