A. The City may, at any time within 3 years of receipt of an accounting required in Section 3.32.060, investigate any accounting submitted and determine the accuracy of the amount reported. If the utility failed to submit the required accounting or as part of the investigation of an accounting and upon receipt of a written request from the City, the utility shall make available for investigation all records, including historical records and books of the utility necessary for verification of payments and/or accountings. The investigation may be done by the City or any person selected by the City. Neither acceptance of payment nor a failure to make an investigation shall be deemed to prevent subsequent investigation by the City, or to estop the City from collecting any amount due.

B. If, upon investigation or otherwise, the fee or tax paid is determined to be excessive, a refund of the excess will be paid. If the fee paid is found to be insufficient, the City shall notify the utility of the amount of the deficiency and demand payment of the amount. Any liability for underpayment or overpayment is limited to the 3 year audit period.

C. If a utility fails to properly report the true amount of gross revenue or other basis from all accounts within the City as determined by the City after investigation, a late payment charge of 2% of the total amount due will be owed on the under-reported gross revenue calculated from the 1st day of the calendar quarter in which the error occurred to the date on which the City received payment, compounded monthly. The late payment charge shall be due at the same time that the utility is required to make payment of any insufficiency of the privilege tax. If the insufficiency is greater than 15% of the total amount due or if at arbitration, trial or on appeal it is determined that the insufficiency is due to fraud and/or intent to evade the tax, a penalty of 25% of the amount of the total tax shall be paid in addition to the amount due and the late payment charge.

D. Within 10 days from the receipt of notice from the City that the privilege tax paid is insufficient and that payment is demanded, the utility may appeal to the City Council. The appeal must be in writing and specifying the grounds of appeal. If no appeal is taken, if the Council decides adversely, or if the Council decides that any other amount is due, the City shall proceed to collect the amount determined to be due and unpaid.

E. In addition to any other penalties prescribed by law, if a utility fails to make payment of any deficiency determined to be due and unpaid in accordance with the provisions of this subsection within 10 days of final determination, the City Manager may suspend any license or permit issued by the City to the utility.