San Francisco County Municipal Code Art. V Record Review, Retention, and

ACCESS RIGHTS Sec. 11.37. Applicability. Sec. 11.38. Access to Records. Sec. 11.39. Voluminous Materials. Sec. 11.40. Proprietary Documents. Sec. 11.41. Audit Results. Sec. 11.42. Five Year Retention. Sec. 11.43. Inspection. Sec. 11.44. Franchise Compliance Reports.

All Persons required to pay a Franchise Fee to the City shall be subject to the provisions of this Article. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)

The City shall have the right to inspect and copy at any time during normal business hours at the nearest office of a Person owing a Franchise Fee, or at such location within the City as the City may designate, all books and records reasonably necessary to monitor compliance with the terms of this Chapter, a Franchise, or other Applicable Law. This right includes the right to inspect not only the books and records of such a Person, but also any books and records related to the management of the Facilities or its operations held by an Affiliate or any other Operator, contractor, subcontractor or any Person holding any form of management contract for the Facilities. It shall be the obligation of a Person owing a Franchise Fee to make such books and records available to the City and to collect and produce the information requested by City. For purposes of this Article, the term "books and records" shall be read expansively to

include information in whatever format stored. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)

If any books and records are too voluminous, or for security reasons cannot be copied and moved, then the Person owing a Franchise Fee may designate a location mutually agreed to by the City and the Person at which the inspection shall take place, provided that (1) the Person must make necessary arrangements for copying documents selected by the City after its review; and (2) the Person must pay all travel and additional copying expenses incurred by the City (above those that would have been incurred had the documents been produced in the City) in inspecting those documents or having those documents inspected by its designee. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)

Access to the books and records of a Person owing a Franchise Fee shall not be denied on the basis that said books and records contain proprietary information. Proprietary information received by the City from such a Person, and clearly marked as Proprietary pursuant to Section 11.20 above shall be treated as provided in that Section. Notwithstanding the provisions of Section 11.38 above, where the City concludes that maintaining copies of proprietary, trade secret, or otherwise protected materials is not reasonably required in order for the City to fairly determine a Person's compliance with the terms of this Chapter, a Franchise, or other Applicable Law, the City shall consider inspecting such information at the Person's local office, rather than copying and maintaining such information. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)

If an audit reveals that a Person has underpaid Franchise Fees owed in an amount equal to or exceeding five (5) percent of the Franchise Fees actually paid (excluding Franchise Fees deposited in an escrow account pursuant to Section 11.26 above), and the Gross Revenues of such Person exceed one million dollars ($1,000,000) within any twelve (12) month period covered by the audit, the cost of the audit shall be borne by the Person owing the Franchise Fees. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)

Books and records required to be retained under this Chapter, a Franchise, or other Applicable Law shall be kept for at least five (5) years from the date such book or record was prepared. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)

Facilities shall be subject to the right of periodic inspection by the City, without notice, to determine compliance with the provisions of this Chapter, the Franchise, or other Applicable Law. (Added by Ord. 58-00, File No. 000198, App. 4/7/2000)

(a) Controller's Report. No less than every two (2) years, the Controller shall file a report with the Board analyzing whether each Person owing a Franchise Fee is complying with the audit, reporting requirements, and payment obligations contained in this Chapter and any Franchise. (b) Department's Report. No less than every two (2) years, the Department shall file a report with the Board analyzing whether each Grantee is complying with all provisions of this Chapter and its Franchise, except for those addressed by the Controller's Report. The Department's Report shall also identify any Person who may be subject to this Chapter but has not complied with the obligation to obtain a Franchise or pay Franchise Fees.