(a) The City Manager is hereby authorized to examine and audit once per year the business records of any state franchise holder relating to gross revenues in a manner consistent with California Public Utilities Code Section 5860.
(b) All state franchise holders shall keep and maintain all business records reflecting any gross revenues, regardless of change in ownership, for at least four years after those gross revenues are recognized by the state franchise holder on its books and records pursuant to California Public Utilities Code Section 5860.
(c) If the state franchise holder has underpaid the franchise fee established by Section 5.56.030 by more than five percent, the state franchise holder shall pay the reasonable and actual costs of the examination and audit. If the state franchise holder has not underpaid the franchise fee established in Section 5.56.030, the city shall pay the reasonable and actual costs of the examination and audit. If the state franchise holder, however, has underpaid the franchise fee established by Section 5.56.030 by five percent or less, the state franchise holder and the city shall each bear their own costs of the examination and audit.
(Ord. 08-871 § 1 (part), 2008)