A. Each franchisee shall maintain accurate and complete accounts of all revenues and income arising out of its operations under the franchise granted pursuant to this chapter; all waste material collected, transported, or disposed of; the source of such waste material; the final destination of such waste material; and all current customer service agreements. Franchisee's books, accounts, and records, including customer service agreements, reasonably necessary for the enforcement of this chapter and the franchise agreement must be made available for inspection, examination, and audit during normal business hours by authorized officers, employees, and agents of the city. The solid waste manager must give written notice at least three days prior to any inspection, audit, or examination of these records.
B. Each franchisee shall establish and maintain internal controls compliant with GAAP and be able to comply with the city reporting requirements for the monthly Revenue Electronic Reporting Form (RERF) and quarterly reports. Such internal controls must include measures to record, document, and make available to the solid waste manager:
1. Weights and volumes of all waste material collected from the city by the franchisee's service accounts, detailed by each customers' location or locations;
2. Collection truck driver's logs or routing sheets, indicating the collection vehicle license plate number, driver's full name, service date, collection locations with container sizes, and the name and location of the disposal or recycling facilities where collected materials were disposed of or recycled;
3. A list of customer accounts in the city with customer addresses and contact information for the reporting period, including customers specifically subject to mandatory commercial recycling requirements in California Public Resources Code sections 42649.2 and 42649.81;
4. A summary and copies of all the invoices related to commercial waste material collection within the city;
5. A summary and copies of all weight tickets issued by the disposal or recycling facilities for all solid waste, recyclable materials, or organic materials collected from the city for the reporting period. The weight tickets must include the franchisee's company name or other adequate identifier, as well as the jurisdiction of origin of the solid waste, recyclable material, or organic material printed legibly on it;
6. A record of jurisdiction of origin of the solid waste, recyclables, or organic materials on all weight tickets; and
7. A report linking weight tickets to the franchisee's service locations, including job sites, and customer's invoice numbers.
C. Where the solid waste manager determines that an audit is necessary, the solid waste manager may require the franchisee to be responsible for reimbursement of audit costs, including any city or consultant services, to perform audits of accounts of all franchisee books, accounts, customer service agreements, and records related to operations under the franchise granted pursuant to this chapter.
D. Each franchisee must provide a designated city audit contact, along with the franchisee's current mailing address, telephone number, and email address. Any changes to the designated city audit contact (including mailing address, telephone number, or email address) must be provided to the city within 30 days of any change.
1. All information provided to the city by the franchisee during an audit shall be certified by the designated city audit contact as accurate and current.
2. Any information provided to the city by the franchisee during an audit that is determined not to be current or inaccurate constitutes a violation of this section. (Ord. 2023-0024 § 51; Ord. 2021-0003 § 15)