§ 122.07  CUSTOMER SERVICE PENALTIES; APPEAL.
   (A)   Any state video franchise holder shall comply with the customer service provisions set forth in Cal. Public Utilities Code § 5900.
   (B)   The city shall monitor the compliance of state video franchise holders with respect to state and federal customer service and protection standards. The City Manager will provide the state video franchise holder written notice of any material breaches of applicable customer service standards, and will allow the state video franchise holder 30 days from the receipt of the notice to remedy the specified material breach.
   (C)   The city shall impose the following penalties against a state video franchise holder for any material breach of the customer service provisions not remedied within the 30-day time period as set forth in Cal. Public Utilities Code § 5900:
      (1)   For the first occurrence of a material breach, a fine of $500 shall be imposed for each day of each material breach, not to exceed $1,500 for each occurrence of the material breach.
      (2)   For a second occurrence of a material breach of the same nature as the first material breach that occurs within 12 months, a fine of $1,000 shall be imposed for each day of each material breach, not to exceed $3,000 for each occurrence of the material breach.
      (3)   For a third or further occurrence of a material breach of the same nature as the previous material breaches that occurs within 12 months, a fine of $2,500 shall be imposed for each day of each material breach, not to exceed $7,500 for each occurrence of the material breach.
   (D)   A material breach for the purposes of assessing penalties shall be deemed to have occurred for each day within the jurisdiction of the city, following the expiration of the period specified in division (C) of this section, that any material breach has not been remedied by the state video franchise holder, irrespective of the number of customers affected. No monetary penalties shall be assessed for a material breach if it is out of the reasonable control of the state video franchise holder.
   (E)   Pursuant to Cal. Public Utilities Code § 5900, any penalty remitted to the city by a state video franchise holder for a material breach of the customer service provisions set forth in Cal. Public Utilties Code § 5900 shall be split in half, and the city shall submit one-half of the penalty amount to the Digital Divide Account established by Cal. Public Utilities Code § 280.5.
   (F)   Appeal. A state video franchise holder may appeal a penalty assessed by the City Manager to the City Council within 60 days of the initial assessment by sending a letter of request for an appeal hearing, along with payment of the fee, to the City Clerk. The matter for a hearing shall be set with the City Council to receive all evidence and relevant testimony. The Council may uphold, modify, or vacate the penalty or decision. The City Council's decision on the imposition of a penalty or decision is final.
(Ord. 2008-017, passed 12-22-08; Am. Ord. 2018-004, passed 3-27-18)