(A) Any holder of a state video service franchise shall comply with all applicable state and federal customer service and protection standards pertaining to the provision of video service.
(B) The city will provide any holder of a stale video franchise written notice of any material breach of applicable customer service and protection standards, and will allow the franchise holder at least 30 calendar days from the receipt of the notice to remedy the specified material breach. A material breach that is not remedied by the state video franchise holder within the remedy period shall subject the state video franchise holder to the following penalties to be imposed by the city:
(1) For the first occurrence of a material breach, a penalty of $500 for each day of each material breach, not to exceed $1,500 for each occurrence of a material breach;
(2) For the second violation of the same nature within 12 months, a penalty of $1,000 for each day of each material breach, not to exceed $3,000 for each occurrence of the material breach; and
(3) For a third or further violation of the same nature within 12 months, a penalty of $2,500 for each day of each material breach, not to exceed $7,500 for each occurrence of the material breach.
(C) Any notice and any penalty may be issued or imposed by the City Manager or designee. Any notice shall be in writing. Notices shall be transmitted by United States Postal Service certified or registered mail, return receipt requested and postage prepaid, or by private commercial delivery or courier service for same day or next business day delivery with delivery and receipt signature required.
(D) The state video service franchise holder may appeal any finding of material breach or imposition of penalties to the City Council. Any appeal must be made within ten calendar days of receipt by the state video service franchise holder of the finding of material breach or the imposition of penalties, and must be submitted in writing to the City Clerk and the City Manager or their designee in order to be placed on a City Council agenda for consideration. Any appeal must contain a detailed explanation of why the appellant believes that the finding of material breach or the imposition of penalties was inconsistent with statutory requirements.
(E) The city and any state video service franchise holder may mutually agree to extend the time periods specified herein. Any such agreement shall be in writing and executed by the City Manager or designee and by an authorized representative of the state video franchise holder.
(F) Any penalty imposed on a state video franchise holder shall be paid to the city. As provided for in Cal. Pub. Util. Code § 5900(g), the city shall submit one-half of all penalties received from a state video franchise holder to the Digital Divide Account established by Cal. Pub. Util. Code § 280.5.
(Ord. 580-C.S., passed 11-4-08)