Azusa Municipal Code Art. XIII Records; Reports; Right to Inspect and Audit; Experts

All reports or records required under this article shall be furnished at the sole expense of grantee.

(Ord. No. 95-08, § 14.1, 4-17-95)

There shall be kept in the grantor's local offices, and available during normal business hours, a separate and complete set of business records for the franchise. The grantee shall provide such information in such form as may be required by the grantor for said records, as well as copies of any records of grantee upon grantor's request, so long as said information is reasonably related to the scope of grantor's rights under this chapter, the franchise and/or grantor's regulatory functions.

Grantee shall keep true and accurate books and records in conformity with generally accepted accounting principles, consistently applied, showing all income, expenses, and expense transfers, borrowing, payments, investments of capital, and all other transactions relating to the system. Grantor shall, upon reasonable notice, have the right to inspect said records and receive copies thereof to the extent said information is reasonably related to the scope of the city's rights under this chapter, the franchise and/or the grantor's regulatory functions. Any grantee records kept at another place shall, within ten days of grantor's request, be made available at grantee's local premises within the County of Los Angeles.

(Ord. No. 95-08, § 14.2, 4-17-95)

(a) No later than 90 days after the close of grantee's fiscal years, grantee shall present a written report to the grantor which shall include:

(1) A financial report audited and certified by the chief financial officer of the grantee for all cable system activity during the previous fiscal year including gross receipts from all sources and gross subscriber revenues from service, and set out separately, gross receipts from all sources in the city and gross subscriber revenues from each service in the city and all payments, deductions, and computations of franchise fees.

(2) A summary of the previous year's activities, including, but not limited to, subscriber totals and new services.

(3) A list of grantee's officers, members of its board of directors and other principals of grantee.

(4) A list of stockholders or other equity investors holding five percent or more of the voting interest in grantee.

(5) A summary of complaints received and remedial actions taken.

(b) Performance tests and compliance reports. No later than April 15th of each year, the grantee shall provide a written report of any FCC or other performance tests required or conducted. In addition, the grantee shall provide reports of the test and compliance procedures established by its franchise, or herein, no later than 30 days after the completion of tests.

(c) Additional reports. The grantee shall prepare and furnish to the grantor in writing at the times and in the form prescribed by grantor, such additional reports with respect to its operation, affairs, transactions, or property, as may be reasonably necessary and appropriate to the performance of any of the rights, functions or duties of the grantor, as specified by grantor.

(Ord. No. 95-08, § 14.3, 4-17-95; Ord. No. 98-04, § 2, 3-16-98)

Copies of all communications between the grantee and the Federal Communications Commission or any other agency having jurisdiction in respect to any matters affecting cable communications operations authorized pursuant to a franchise, shall be submitted promptly to the grantor upon receipt or mailing by grantee.

(Ord. No. 95-08, § 14.4, 4-17-95)

Upon reasonable notice, and during normal business hours, grantee shall permit examination by any duly authorized representative of grantor, of all franchise property and facilities, together with any appurtenant property and facilities of grantee situated within the city.

(Ord. No. 95-08, § 14.5, 4-17-95)

In addition to any other inspection rights under the ordinance or franchise, upon ten days prior written notice, grantor shall have the right to inspect, examine, or audit, during normal business hours, all documents which pertain to the grantee or any affiliated person with respect to the system, each service distributed over the system and each service related activity and which are reasonably necessary to the grantor's performance of its obligations and/or the grantor's enforcement of its rights under the terms of the ordinance or franchise; provided, however, that the grantor may not exercise said right more frequently than once in any 12-month period. All such documents shall be made available at the local office of the grantee. All such documents which pertain to financial matters which may be the subject of an audit by the grantor shall be retained by the grantee for a minimum of five years following termination of any franchise. Access by the grantor to any of the documents covered by this section shall not be denied by the grantee on grounds that such documents are alleged by the grantee to contain proprietary information.

Grantor may require written certification by the grantee's appropriate directors, officers or other employees with respect to all documents referred to in this section.

Any audit conducted by the grantor pursuant to this section shall be conducted at the sole expense of the grantor and the grantor shall prepare a written report containing its findings, a copy of which shall be mailed to the grantee; provided, however, that the grantee shall reimburse the grantor for the expense of any such audit if, as the result of said audit, it is determined that there is a shortfall of more than two percent in the amount of franchise fees or other payments which have been made or will be made by the grantee to the grantor pursuant to the terms of any franchise.

(Ord. No. 95-08, § 14.6, 4-17-95)

In the exercise of its rights under this chapter, the grantor shall have the further right to retain technical experts and other consultants on a periodic basis for the purpose of monitoring, testing and inspecting any construction, and operation and maintenance of the system, and all parts thereof, to ensure compliance with and enforcement of the provisions of this chapter and any franchise. The grantor shall bear the cost of retaining such experts, provided that the grantee shall reimburse the grantor for all expenses related to the retention of said experts where this chapter or the franchise so provide or under either of the following circumstances:

(1) The grantee has initiated proceedings which would normally require the grantor to retain such experts, such as the filing of a request for approval of transfer, renewal, expansion of the service area or of modification or amendment of any franchise.

(2) The reports of such experts to the grantor reveal that the grantee has failed to substantially comply with the terms and conditions of this chapter or any franchise.

If grantee is required to reimburse grantor pursuant to this section, grantor shall send grantee an itemized description of such charges and grantee shall pay such amount within 20 days of the receipt of such description.

(Ord. No. 95-08, § 14.7, 4-17-95)