HomeMy WebLinkAboutAgenda Packet - August 28, 1986 - CC ITUT] T1 � • dieeatrgk
• 213 East Foothill Boulevard • P 0 Box WWW • Azusa, California 91702-1395 • (818) 334 5125 •
FINANCE DEPARTMENT
TO: HONORABLE MAYOR AND
MEMBERS OF THE CITY COUNCIL
�,
FROM: GEOFF CRAIG, DIRECTOR OF FINANC 4,•
DATE: AUGUST 28, 1986
SUBJECT: JONES INTERCABLE FRAN . HISE AGREEMENT
Background
The Azusa Municipal Code Section 14.05.020, states "The grantee shall file with
the City, within sixty days after the expiration of any calendar year during which
such franchise is in force, a financial statement prepared by a certified public
accountant showing in detail the total gross annual basic subscriber receipts, as
defined herein, of the grantee, its successors or assigns, during the preceeding
calendar year. It shall be the duty of the grantee to pay to the City within thirty
days after the time for filing such statements, any unpaid balance for the calendar
year covered by such statements."
Findings
The City contacted Jones Intercable on February 13, advising them to submit
a financial statement prepared by a certified public accountant. On March 14,
we received a report combining their Glenville, New York and Azusa operations.
This report was not prepared by a certified public accountant. Staff notified
Jones Intercable that the City needs a financial statement confined solely to its
City of Azusa operations and prepared by a CPA firm.
As of the above date, staff has not received the financial statement as required
by the terms of their franchise agreement. Some of the alternatives are as follows:
1. Revoke the franchise and advertise for proposals for a new cable
television provider. The new provider could be required to pay
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the new 5% maximum franchise fee rather than the 3% which
was in effect when the Jones' franchise was granted.
2. Audit the Jones Intercable records for their City of Azusa
operations, billing the firm for the audit (staff has submitted
a sample ordinance which would implement this, on this agenda).
3. Relax the requirement that the Jones' financial statement be
certified by an auditor.
Staff would like Council's direction as to what action should be taken to bring
Jones Intercable into compliance with the terms of its franchise agreement.
Recommendation
It is recommended that the City audit Jones Intercable's records for their City
of Azusa operations, billing the firm for the audit, which will bring them into
compliance with the terms of their franchise agreement.
GJC:SA:pap