A. All grantees of franchises granted by the City, other than those franchise holders who are subject to the requirements of the Public Utilities Commission of the state of California, and all parties having contractual relations with the City, wherein the City establishes reasonable rates for the performance of services under said contracts, or whereby the City receives as consideration under said contracts a fractional share of revenues, may be required, if requested by the City Council, to submit an annual audited statement as soon as possible after the end of the fiscal year, prepared by either a certified public accountant or a licensed public accountant, certified without qualifications. Further, at such time as the City Council conducts hearings to establish rate schedules or amendments thereto, or at such time as franchises or contracts are to be granted or renewed, the franchise holder, other than those subject to the requirements of the Public Utilities Commission, or contractor, shall be required to submit an audited statement not more than 60 days in arrears.

B. Further, the City may waive said requirements in those instances where such contractor or franchise holder is also operating its business in areas outside of the City limits and rate schedules are established by other governmental agencies in addition to the City Council; provided, however, that the City receives notice of hearings relative to the establishment of said rate schedules so that the City may participate and be fully informed in all proceedings of said hearings.

C. The terms and conditions of this chapter shall be incorporated and made a part of all contracts or ordinances granting franchises. (Ord. 1151 § 1; prior code § 15.1).