A. Upon 30 days’ written notice from the city, the city shall have the right to inspect, examine or audit grantee’s records that are necessary to verify that the grantee or any affiliate(s) has paid the correct amount with respect to the grantee’s payment of franchise fees consistent with the franchise agreement, and applicable federal and state law.

B. Grantee shall keep and preserve, for a period of three calendar years plus the current calendar year, all records necessary to determine the amount of franchise fee owed the city. A transferor, in the event of a transfer, or a grantee of a franchise that has terminated shall retain such records for three calendar years after the effective date of the transaction or date of termination.

C. If the city’s audit determines that there is a material underpayment of three percent or more then the grantee shall bear the cost of such audit. Any underpayment determined by the audit shall be considered late and such payment shall be subject to the interest and penalty provisions described above in BCC 5.30.220(C) and (D).

D. In the event of any overpayment of franchise fees to the city, the grantee may file a claim with the city. (Ord. 5531 § 2, 2004.)