§ 126-116. Fees and reports.

(a)

Annual reporting requirements.

(1)

The Annual Financial Report and an annual billing analysis by customer classification in a form to support the reported revenues shall be filed within 120 days after the end of the Franchisee's fiscal year.

(2)

The Annual Financial Report filed by any Franchisee which has annual Gross Receipts of more than $200,000.00 shall be accompanied by an Audited Financial Statement prepared by a certified public accountant.

(3)

If the Franchisee provides service in Sarasota County through a subsidiary or separate operating division of a parent corporation which does business in locations other than Sarasota County, the Annual Financial Report and Audited Financial Statement required by this subsection shall be provided by the Franchisee in such form as to clearly indicate the financial details of the Sarasota County Franchise as a separate operational unit.

(4)

Pursuant to Section 126-117, if the Franchisee has an outstanding bank loan which is secured by Utility assets, the Franchisee must include in the Annual Financial Report the status of the loan and the status of the Utility improvements being paid for by the borrowed funds.

(5)

Upon the adoption by the Board of a final rate order for a rate proceeding affecting Rate Base and/or management fees, salaries and benefits or other discretionary expenses, Franchisee shall, prior to filing the next Annual Financial Report, adjust its books to reflect the findings set forth in the adopted rate order. Franchisee shall send notification to County Staff that the required adjustments have been completed so that its books and records are in agreement with the adopted rate order and will be properly reflected in all subsequent Annual Financial Reports and/or Audited Financial Statements.

(6)

If a Franchisee fails to submit either the Annual Financial Report and/or Audited Financial Statement within the time prescribed:

a.

Franchisee shall pay a late charge per month, or any fraction thereof, of one percent of the annual franchise administration fee or $300.00, whichever is larger, until receipt of the required report(s) by County Staff. Upon receipt of a written request for extension received no less than 15 days prior to the due date, County Staff may waive the late charge and grant an extension for 30 days;

b.

If the report(s) have not been filed by the initial due date or any extension thereto, the Franchisee shall be notified that County Staff, at its discretion, may conduct or have conducted a review of the books and records of the Franchisee. The Franchisee shall be liable not only for the late charges, but also all costs associated with the review, collection and enforcement of this Section. If Franchisee fails to cooperate with this review, the Board may request the appointment of a receiver as provided in Section 126-131.

(b)

Franchise administration fee. Each Franchisee shall pay quarterly to the County a Franchise administration fee not to exceed five percent of Gross Receipts on such from as prescribed by County Staff. Such fee shall be established from time to time after public hearing by Board resolution, shall become effective not less than 30 days after adoption of an implementing resolution, and shall be charged pro rata to the customers of the Public Utility.

This fee shall defray the County's expense of regulating the Franchisees. The Board may use Franchise administration fees for the payment of costs in excess of Franchisee operating revenues for the operation, maintenance of and repair of abandoned Public Water or Public Wastewater Systems, which may include extraordinary repairs or costs to connect to a publicly-owned central utility system and the cost to abandon the treatment facilities associated with the Franchise to protect the health, safety and welfare of the general public. "Extraordinary repairs" is defined as those repairs that are non-typical, non-customary or infrequently occurring and shall require Board approval.

(1)

The total quarterly fee shall be paid to the County within 30 days of the end of each quarter and shall be accompanied by a statement of Gross Receipts. Upon receipt of a written request for extension received no less than five days prior to the due date, County Staff may grant an extension for 30 days. Each Franchisee which fails to submit the required quarterly fees by the due date shall pay a late charge of one percent of the delinquent Franchise administration fee per month or any fraction thereof or $50.00, whichever is larger, until receipt of the required report and fee by County Staff.

(2)

The Annual Financial Report shall include a reconciliation of the total Franchise administration fee due for the fiscal year. Any Franchise administration fee overpaid for the fiscal year shall be credited against the next payment of the quarterly franchise administration fee. Any Franchise administration fee owed and outstanding shall be paid, together with all applicable late charges, with the filing of the Annual Financial Report.

(3)

When an Annual Financial Report or Audited Financial Statement has not been timely filed, the Franchisee shall be notified of the delinquency by certified mail. If the reports have not been filed within 30 days after the notice of delinquency has been sent, County Staff may conduct or have conducted a review of the books and records of the Franchisee to determine the Franchise administration fee due. The Franchisee shall be liable not only for the delinquent Franchise administration fee and late charges, but also all costs for the review, collection and enforcement. If the reports have not been filed and any delinquent fees, charges and costs have not been paid within 90 days after the completion of the County review, the Board may request the appointment of a receiver as provided in Section 126-131.

(4)

All fees collected by the County from Franchisees pursuant to the requirements of this article and any enabling resolution adopted in compliance with the implementation of the directives thereof shall be placed in a separate fund. Such funds shall at all times remain separate and distinct from County general revenue funds. At the end of the fiscal year, all remaining funds automatically shall become the beginning balance for the succeeding fiscal year. Provided a sufficient reserve is maintained to cover anticipated expenditures, the remaining funds may be utilized for other Franchise related expenditures which may include, upon Board approval, costs to connect to a publicly owned central utility system, the cost to abandon the treatment facilities associated with the Franchise and such other expenditures necessary to protect the health, safety and welfare of the general public.

(Ord. No. 2016-041, § 2, 9-21-2016)