(A) Insurance, indemnity, and security. Prior to the execution of a franchise or license, a provider will deposit with the city an irrevocable, unconditional letter of credit and/or surety bond as required by the terms of the franchise or license, and shall obtain, and provide proof of, the insurance coverage required by the franchise or license. A provider shall also indemnity the city as set forth in the franchise or license.
(B) Oversight. The city shall have the right to oversee, regulate, and inspect periodically the construction, maintenance, operation, and upgrade of the system, and any part thereof, in accordance with the provisions of the franchise or license and applicable law. A provider shall establish and maintain managerial and operational records, standards, procedures, and controls to enable a provider to prove, in reasonable detail, to the satisfaction of the city at all times throughout the term, that a provider is in compliance with the franchise or license. A provider shall retain such records for not less than ten years following their creation, and for such additional period as the city may direct.
(C) Maintain records. A provider shall, at all, times maintain;
(1) On file with the city, a full and complete set of plans, records, and as-built hard copy maps, or in electronic format compatible with the city’s existing GIS system, of all existing and proposed installations and the types of equipment and facilities installed or constructed, properly identified and described as to the types of equipment and facility by appropriate symbols and marks, which shall include annotations of all rights-of-way where work will be undertaken. Maps shall be drawn to scale.
(2) If requested by the city, a summary of service calls, identifying the number, general nature, and disposition of such calls, on a monthly basis. A summary of such service calls shall be submitted to the city within 30 days following its request in a form reasonably acceptable to the city.
(3) Throughout the term of any franchise or license issued in accordance with the terms of this chapter, a provider shall maintain complete and accurate books of account and records of the business, ownership, and operations of a provider with respect to the system in a manner that allows the city, at all times, to determine whether a provider is in compliance with the franchise or license. Should the city reasonably determine that the records are not being maintained in such a manner, a provider shall alter the manner in which the books and/or records are maintained so that a provider comes into compliance with this section. All financial books and records which are maintained in accordance with the regulations of the FCC and any governmental entity that regulates utilities in the state, and generally accepted accounting principles shall be deemed to be acceptable under this section. A provider shall also maintain and provide such additional books and records as the city deems reasonably necessary to ensure proper accounting of all payments due the city.
(D) Reports.
(1) A provider shall submit to the city reports describing, in detail, the status of the construction of the initial system every six months until its substantial completion. A provider shall, upon substantial completion of the initial system, notify the city in writing. If the scope of the initial system is expanded, a provider shall likewise report every six months on the state of continuation of expansion.
(2) A provider shall submit to the city not later than 90 days after the end of each annual fiscal period a copy of a provider’s annual financial statements for such period, which statements shall be signed by the chief financial officer of a provider; provided, however, that the city may also require such statements to be audited and certified by an independent certified public accountant in accordance with generally accepted accounting principles. Further, within 90 days following the end of the calendar year, each provider, which paid a franchise or license fee based upon gross revenues, shall submit a statement, certified as true, setting forth gross revenues of the communications facility, by category, and describing what revenues were included and excluded in the fee calculation, and any adjustments made to gross revenues. Such statements shall be accurate and complete.
(3) A provider shall provide annually to the department designated by the city a list of any and all material communications, public reports, petitions or other filings, either received from, or submitted to, any municipal, county, state, or federal agency or official (and any response thereto submitted by or received by a provider), which, in any way, materially affects the operation of the system or any service, or a provider’s representations and warranties set forth herein, or in any franchise or license granted hereunder, but not including tax returns or other filings which are confidential. Upon the request of the city, a provider shall promptly, but in no case later than ten business days following the request, deliver to the city a complete copy of any item on said list. Upon the request of the city, a provider shall promptly submit to the city any information or report reasonably related to a provider’s obligations under the franchise or license, its business and operations, or those of any affiliated provider, with respect to the system or its operation, or any service distributed over the system, in such form and containing such information as the city shall specify. Such information or report shall be accurate and complete.
(E) Confidentiality. If the information required to be submitted in an annual report is proprietary in nature or must be kept confidential by federal, state, or local law, upon proper request by a provider, such information shall be treated as confidential, making it available only to those providers who must have access to perform their duties on behalf of the city, including, but not limited to, the Department of Finance, the office of the City Attorney, and the Mayor and Council members; provided that a provider notifies the city oft and clearly labels the information which a provider deems to be confidential, proprietary information. Such notification and labeling shall be the sole responsibility of franchisee or licensee. To the extent the Government Records Management Access Act (GRAMA, being UCA Title 63G, Chapter 2), or any other federal requirement for privacy, applies to the information to be submitted, such law shall control.
(F) Provider’s expense. All reports and records required under this chapter shall be furnished at the sole expense of a provider, except as otherwise provided in this chapter, a franchise, or a license.
(G) Right of inspection. The city’s designated representatives shall have the right to inspect, examine, or audit during normal business hours and upon reasonable notice to a provider, under the circumstances, all documents, records, or other information which pertain to a provider or any affiliated provider with respect to the system, its operation, its employment, and purchasing practices. Services distributed over the system, and with respect to a provider’s obligations pursuant to the franchise or license. All such documents shall be made available within the city, or in such other place that the city may agree upon, in writing, in order to facilitate said inspection, examination, or audit; provided, however, that if such documents are located outside of the city, then a provider shall pay the reasonable expenses incurred by the city’s designated representatives in traveling to such location.
(Prior Code, § 13.09.080) (Ord. 10-98, passed 5-20-1998)