A. 
In accordance with applicable federal and state law, the city is authorized to grant one or more nonexclusive franchises to construct, reconstruct, operate, and maintain cable television systems within the jurisdiction of the city.
B. 
The city finds that the development of cable services may provide significant benefits for, and substantial impacts upon, the residents and the business community within the jurisdiction of the city. Due to the complex and rapidly changing technology associated with cable services, the city further finds that the public convenience, safety, and general welfare can best be served by the city’s exercise of its regulatory powers. This article is intended to specify the means for providing to the public the best possible cable services, and every franchise issued in accordance with this article is intended to achieve this primary objective. It is the further intent of this article to adopt regulatory provisions that will enable the city to regulate cable services to the maximum extent authorized by federal and state law.
(Ord. 06-001 § 1 (part), 2006)
A. 
Franchise purposes. A franchise granted by the city under the provisions of this article may authorize the grantee to do the following:
1. 
To engage in the business of providing cable service as may be authorized by law and which grantee elects to provide to its subscribers within the designated franchise service area;
2. 
To maintain and operate the franchise properties for the origination, reception, transmission, amplification, and distribution of television and radio signals, and for the delivery of cable services as may be authorized by law;
3. 
To erect, install, construct, repair, rebuild, reconstruct, replace, maintain, and retain, cable lines, related electronic equipment, supporting structures, appurtenances, and other property in connection with the operation of the cable system in, on, over, under, upon, along and across streets or other public places within the designated franchise service area.
B. 
Franchise required. It is unlawful for any person to construct, install, or operate a cable television system within any street or public way in the area under the jurisdiction of the city without first obtaining a franchise under the provisions of this article.
C. 
Term of the franchise.
1. 
A franchise granted under this article will be for the term specified in the franchise agreement, commencing upon the effective date of the ordinance codified in this chapter or resolution adopted by the city that authorizes the franchise.
2. 
A franchise granted under this article or a franchise granted by the city under a prior ordinance may be renewed upon application by the grantee in accordance with the then-applicable provisions of state and federal law and of this article.
D. 
Franchise territory. A franchise is effective within the entire area that is subject to the jurisdiction of the city unless otherwise specified in the ordinance codified in this chapter or resolution granting the franchise or in the franchise agreement.
E. 
Federal or state jurisdiction. This article will be construed in a manner consistent with all applicable federal and state laws, and it applies to all franchises granted or renewed after the effective date of this article, to the extent authorized by applicable law.
F. 
Franchise nontransferable.
1. 
The grantee may not sell, transfer, lease, assign, sublet, or dispose of, in whole or in part, either by forced or involuntary sale, or by ordinary sale, contract, consolidation, or otherwise, the franchise or any of the rights or privileges therein granted, without the prior consent of the city and then only upon such terms and conditions as may be prescribed by the city, which consent may not be unreasonably denied or delayed. Any attempt to sell, transfer, lease, assign, or otherwise dispose of the franchise without the consent of the city is null and void. The granting of a security interest in any assets of the grantee, or any mortgage or other hypothecation, will not be deemed a transfer for the purposes of this subsection.
2. 
The requirements of subsection (F)(1) of this section apply to any change in control of the grantee or any parent company of the grantee. The word “control” as used herein is not limited to the ownership of major stockholder or partnership interests, but includes actual working control in whatever manner exercised. If the grantee is a corporation, prior authorization of the city is required where ownership or control of twenty-five percent or more of the voting stock of the grantee is acquired by a person or a group of persons acting in concert, none of whom, singularly or collectively, owns or controls the voting stock of the grantee as of the effective date of the franchise. A transfer of the franchise from one wholly owned subsidiary to another wholly owned subsidiary of the parent company shall not be considered a change or control or a transfer of the franchise for the purposes of this subsection.
3. 
The grantee must notify the city in writing of any foreclosure or judicial sale of all or a substantial part of the grantee’s franchise property. That notification will be considered by the city as notice that a change in control of ownership of the franchise has taken place, and the provisions of this subsection that require the prior consent of the city to that change in control of ownership will apply.
4. 
For the purpose of determining whether it will consent to an acquisition, transfer, or change in control, the city may inquire as to the qualifications of the prospective transferee or controlling party, and the grantee must assist the city in that inquiry. In seeking the city’s consent to any change of ownership or control, the grantee or the proposed transferee, or both, must complete Federal Communications Commission Form 394 or its equivalent, and provide any other information required by the city which is relevant to the transferee’s qualifications and capability to operate and maintain the cable system and comply with all franchise requirements. This application must be submitted to the city not less than one hundred twenty days prior to the proposed date of transfer. The transferee must establish that it possesses the legal, financial, and technical capability to operate and maintain the cable system and to comply with all franchise requirements during the remaining term of the franchise in a substantially equivalent or greater manner than the transferor. The transferee also must establish that it will timely correct any pending franchise violations in the manner prescribed by the city. The consent of the city to the proposed transfer will not be unreasonably denied or delayed provided that all requirements of federal and state law, this article and the franchise agreement are satisfied.
5. 
Any financial institution holding a pledge of the grantee’s assets to secure the advance of money for the construction or operation of the franchise property has the right to notify the city that it, or a designee satisfactory to the city, will take control of and operate the cable television system upon the grantee’s default in its financial obligations. Further, that financial institution also must submit a plan for such operation within ninety days after assuming control. The plan must insure continued service and compliance with all franchise requirements during the period that the financial institution will exercise control over the system. The financial institution may not exercise control over the system for a period exceeding one year unless authorized by the city, in its sole discretion, and during that period of time it will have the right to petition the city to transfer the franchise to another grantee.
6. 
The grantee must reimburse the city for the city’s reasonable review and processing expenses incurred in connection with any transfer or change in control of the franchise. These expenses may include, without limitation, costs of administrative review, financial, legal, and technical evaluation of the proposed transferee, consultants (including technical and legal experts and all costs incurred by these experts), notice and publication costs, and document preparation expenses. The total amount of these reimbursable expenses may be subject to maximum limits that are specified in the franchise agreement between the city and the grantee. No reimbursement may be offset against any franchise fee payable to the city during the remaining term of the franchise.
7. 
Approval by the city of a transfer shall not constitute a waiver or release of any of the rights of the city under this chapter or the franchise agreement.
G. 
Geographical coverage.
1. 
Grantee must design, construct, and maintain the cable television system so as to have the capability to pass every dwelling unit in the franchise service area, subject to any service-area line extension requirements of the franchise agreement.
2. 
After service has been established by activating trunk or distribution cables for any service area, grantee must provide service to any requesting subscriber in that service area within thirty days from the date of request, provided that the grantee is able to secure on reasonable terms and conditions all rights-of-way necessary to extend service to that subscriber within that thirty-day period. Service to prospective subscribers residing in multiple dwelling units need only be provided if, after evaluating terms and conditions for access that may be imposed by an owner or manager of such multiple dwelling units, a grantee determines that those terms and conditions are reasonably acceptable.
H. 
Nonexclusive franchise. Every franchise granted is nonexclusive. The city specifically reserves the right to grant, at any time, such additional franchises for a cable system, or any component thereof, as it deems appropriate, subject to applicable state and federal law. If an additional franchise is proposed to be granted to a subsequent grantee, a noticed public hearing must first be held in accordance with the provisions of Government Code Section 53066.3.
I. 
Multiple franchises.
1. 
The city may grant any number of franchises, subject to applicable state and federal law. The city may limit the number of franchises granted, based upon, but not necessarily limited to, the requirements of applicable law and specific local considerations, such as:
a. 
The capacity of the public rights-of-way to accommodate multiple cables in addition to the cables, conduits, and pipes of the existing utility systems, such as electrical power, telephone, gas, and sewerage.
b. 
The benefits that may accrue to subscribers as a result of cable system competition, such as lower rates and improved service.
c. 
The disadvantages that may result from cable system competition, such as the requirement for multiple pedestals on residents’ property, and the disruption arising from numerous excavations within the public rights-of-way.
2. 
The city may require that any new grantee be responsible for its own underground trenching and the associated costs if, in the city’s opinion, the rights-of-way in any particular area cannot reasonably accommodate additional cables.
(Ord. 06-001 § 1 (part), 2006)
A. 
Filing of applications. Any person desiring an initial franchise for a cable television system must file an application with the city. A reasonable nonrefundable application fee in an amount established by resolution of the city must accompany the application. That application fee will cover all costs associated with reviewing and processing the application, including without limitation costs of administrative review, financial, legal, and technical evaluation of the applicant, consultants (including technical and legal experts and all costs incurred by those experts), notice and publication requirements, and document preparation expenses. If those costs exceed the application fee, the applicant must pay the difference to the city within thirty days following receipt of an itemized statement of those costs.
B. 
Applications—Contents. An application for an initial franchise for a cable television system must contain, as applicable:
1. 
A statement as to the proposed franchise service area;
2. 
A resume of the applicant’s prior history, including the experience and expertise of the applicant in the cable industry;
3. 
A list of the partners, general and limited, of the applicant, if a partnership, or the percentage of stock owned or controlled by each stockholder, if a closely held corporation. If the applicant is a publicly owned corporation, each owner of ten percent or more of the issued and outstanding capital stock must be identified;
4. 
A list of officers, directors, and managing employees of the applicant, together with a description of the background of each person on that list;
5. 
The names and addresses of any parent or subsidiary of the applicant, or any other business entity owning or controlling applicant in whole or in part, or that is owned or controlled in whole or in part by the applicant;
6. 
A current financial statement of the applicant verified by a certified public accountant or otherwise certified to be true, complete, and correct to the reasonable satisfaction of the city;
7. 
The proposed construction and service schedule, the proposed rate structure for cable services, and the proposed commitment to provide public, educational, and governmental access channel capacity, services, facilities, and equipment;
8. 
Any additional information that the city reasonably deems to be necessary.
C. 
Consideration of initial applications.
1. 
Upon receipt of an application for an initial franchise, the city manager or the city manager’s designee must prepare a report and make recommendations to the city concerning that application, including without limitation the applicant’s legal, financial, and technical qualifications.
2. 
A public hearing will be noticed prior to the granting of any initial franchise, at a time and date approved by the city. Within thirty days after the close of the hearing, the city will make a decision based upon the evidence received at the hearing as to whether the franchise should be granted, and, if granted, subject to what conditions. The city may grant one or more franchises, or may decline to grant any franchise.
D. 
Franchise renewal. Franchise renewals will be processed in accordance with then-applicable law. The city and the grantee, by mutual consent, may enter into renewal negotiations at any time during the term of the franchise.
(Ord. 06-001 § 1 (part), 2006)
A. 
The terms and provisions of a franchise agreement for the operation of a cable system or related telecommunications services may relate to or include, without limitation, the following subject matters:
1. 
The nature, scope, geographical area, and duration of the franchise;
2. 
The applicable franchise fee to be paid to the city, including the percentage amount, the method of computation, and the time for payment;
3. 
Requirements relating to compliance with and implementation of state and federal laws and regulations pertaining to the operation of the cable system;
4. 
Requirements relating to the construction, upgrade, or rebuild of the cable system, as well as the provision of special services, such as outlets for public buildings, emergency alert capability, and parental control devices;
5. 
Requirements relating to the maintenance of a performance bond, a security fund, a letter of credit, or similar assurances to secure the performance of the grantee’s obligations under the franchise agreement;
6. 
Requirements relating to comprehensive liability insurance, workers’ compensation insurance, and indemnification;
7. 
Requirements relating to consumer protection and customer service standards, including the resolution of subscriber complaints and disputes and the protection of subscribers’ privacy rights;
8. 
Requirements relating to the grantee’s support of local cable usage, including the provision of public, educational, and governmental access channels, the coverage of public meetings and special events, and financial or technical support for public, educational, and governmental access channels;
9. 
Requirements relating to construction, operation, and maintenance of the cable system within the public rights-of-way, including compliance with all applicable building codes and permit requirements, the abandonment, removal, or relocation of facilities, and compliance with FCC technical standards;
10. 
Requirements relating to recordkeeping, accounting procedures, reporting, periodic audits, and performance reviews, and the inspection of grantee’s books and records;
11. 
Acts or omissions constituting material breaches of or defaults under the franchise agreement, and the applicable penalties or remedies for those breaches or defaults, including fines, penalties, liquidated damages, suspension, revocation, and termination;
12. 
Requirements relating to the sale, assignment, or other transfer or change in control of the franchise;
13. 
The grantee’s obligation to maintain continuity of service and to authorize, under certain specified circumstances, the city’s operation and management of the cable system;
14. 
Such additional requirements, conditions, policies, and procedures as may be mutually agreed upon by the parties to the franchise agreement and that will, in the judgment of city staff and the city, best serve the public interest and protect the public health, welfare, and safety.
B. 
If there is any conflict or inconsistency between the provisions of a franchise agreement authorized by the city and provisions of this article, the franchise agreement will control except for any customer service standards imposed by this article which shall be controlling.
(Ord. 06-001 § 1 (part), 2006)
A. 
Operational standards.
1. 
Except as otherwise provided in the franchise agreement, the grantee must maintain the necessary facilities, equipment, and personnel to comply with the following consumer protection and service standards under normal operating conditions:
a. 
Sufficient toll-free telephone line capacity during normal business hours to ensure that telephone answer time by a customer service representative, including wait time, may not exceed thirty seconds. Callers needing to be transferred may not be required to wait more than thirty seconds before being connected to a service representative.
b. 
Under normal operating conditions, a caller must receive a busy signal less than three percent of the time.
c. 
Emergency toll-free telephone line capacity on a twenty-four hour basis, including weekends and holidays. After normal business hours, the telephone calls may be answered by an answering service in accordance with the telephone answering standards set forth in subsections (A)(1)(a) and (A)(1)(b) of this section. Calls received after normal business hours must be responded to by a trained company representative on the next business day.
d. 
A conveniently located local business and service or payment office open during normal business hours at least eight hours daily on weekdays, and at least four hours weekly on evenings or weekends, and adequately staffed with trained customer service representatives to accept subscriber payments and to respond to service requests, inquiries and complaints.
e. 
An emergency system maintenance and repair staff, capable of responding to and repairing major system malfunctions on a twenty-four hour per day basis.
f. 
A trained installation staff must install service to any subscriber requiring a standard installation within seven days after receipt of a request, in all areas where trunk and feeder cable have been activated. “Standard installations” are those that are located up to one hundred twenty-five feet from the existing distribution system, unless otherwise defined in any franchise agreement.
g. 
The grantee must schedule, within a specified four-hour time period Monday through Saturday (legal holidays excluded), all appointments with subscribers for installation of service, service calls, and other activities at the subscriber location. The grantee may schedule installation and service calls outside of normal business hours for the convenience of the subscriber. The grantee may not cancel an appointment with a subscriber after the close of business on the business day prior to the scheduled appointment. If a grantee representative is running late for an appointment with a subscriber and will not be able to keep the scheduled appointment, the subscriber must be contacted prior to the time of the scheduled appointment and the appointment must be rescheduled, as necessary, at a time that is convenient for the subscriber. The grantee must use its best efforts to contact every customer within two weeks after an installation or repair work is completed to ensure that the customer is satisfied with the work.
h. 
Subscribers who have experienced one missed appointment due to the fault of the grantee will receive an on-time guarantee refund or other equivalent compensation if the appointment was for an installation. If an installation was to have been provided free of charge, and for all other appointments, the subscriber will receive the same on-time guarantee refund or other equivalent compensation.
i. 
Upon subscriber request, the grantee will arrange for pickup and/or replacement of convertors or other equipment provided by the grantee at the subscriber’s address within fourteen days after the request is made if the subscriber is mobility-limited.
2. 
The standards of subsections (A)(1)(a) and (A)(1)(c) of this section shall be met not less than ninety percent of the time, measured on a quarterly basis.
B. 
Service standards.
1. 
The grantee will render efficient service, make repairs promptly, and interrupt service only for good cause and for the shortest time possible. Except in emergency situations, scheduled interruptions will occur during a period of minimum use of the cable system, preferably between midnight and six a.m. Unless the scheduled interruption lasts for no more than two hours and occurs between midnight and six a.m. (in which event twenty-four hours prior notice must be given to the city), forty-eight hours prior notice must be given to subscribers.
2. 
The grantee will maintain a repair force of technicians who will respond to subscriber requests for service within the following time frames:
a. 
For a system outage: within four hours, including weekends, of receiving subscriber calls or requests for service that by number identify a system outage of sound or picture of one or more channels, affecting five or more subscribers of the system.
b. 
For an isolated outage: within twenty-four hours, including weekends, of receiving requests for service identifying an isolated outage of sound or picture for one or more channels.
c. 
For inferior signal quality: no later than the following business day, excluding Sundays and holidays, of receiving a request for service identifying a problem concerning picture or sound quality.
3. 
The grantee will be deemed to have responded to a request for service under the provisions of this subsection when a technician arrives at the service location and begins work on the problem. If a subscriber is not home when the technician arrives, the technician must leave written notification of arrival.
4. 
The grantee may not charge for the repair or replacement of defective or malfunctioning equipment provided by the grantee to subscribers, unless the defect was caused by the subscriber.
5. 
The grantee must determine the nature of the problem within twenty-four hours of commencing work and resolve all cable system related problems within three business days, unless technically infeasible.
C. 
Billing and information standards.
1. 
Subscriber bills must be clear, concise, and understandable. Bills must be fully itemized, with itemizations including, but not limited to, basic and premium service charges and equipment charges. Bills also must clearly delineate all activity during the billing period, including optional charges, rebates, and credits.
2. 
The first billing to a subscriber after a new installation or service change must be prorated based upon when the new or changed service commenced. Subscribers must not be charged a late fee or otherwise penalized for any failure by the grantee, including the failure to timely or correctly bill the subscriber.
3. 
In case of a billing dispute, the grantee must respond in writing to a written complaint from a subscriber within ten days of receiving the complaint at the office clearly identified on the billing statement for receiving such complaint.
4. 
The grantee must provide credits or refunds to subscribers whose service has been interrupted for four or more hours upon request from the affected subscribers. For each day that service has been interrupted for four hours or more, the credit must equal a pro-rata share of the monthly billing for one full day. All credits for service must be issued no later than the customer’s next billing cycle following the determination that a credit is warranted. For subscribers terminating service, refunds must be issued promptly, but no later than thirty days after the return of any grantee-supplied equipment.
5. 
The grantee must provide written information which has been reviewed by the city on each of the following areas at the time of the installation of service, at least annually to all subscribers, and at any time upon request:
a. 
Products and services offered;
b. 
Prices and options for programming services and conditions of subscription to programming and other services;
c. 
Installation and service maintenance policies;
d. 
Instructions on the use of the cable service;
e. 
Channel positions of programming carried on the system;
f. 
Billing and complaint procedures, including the address and telephone number of the city’s office designated for dealing with cable-related issues;
g. 
Consumer protection and service standards and penalties for noncompliance.
6. 
Subscribers must be notified of any changes in rates, programming services, or channel positions as soon as possible through announcements in writing. Written notice must be given to subscribers a minimum of thirty days in advance of those changes if the change is within the control of the grantee. In addition, the grantee must notify subscribers through announcements in writing thirty days in advance of any significant changes in the information required in subsection (C)(5) of this section.
7. 
The grantee must maintain a public file containing all notices provided to subscribers under these consumer protection and service standards and all promotional offers made by grantee to subscribers. Such documents must be maintained for a minimum period of four years.
D. 
Verification of compliance with standards.
1. 
Upon fifteen days written notice, the city may require the grantee to provide a written report demonstrating its compliance with any of the customer service standards specified in this section. The grantee must provide sufficient documentation to enable the city to verify compliance.
2. 
A repeated and verifiable pattern of noncompliance with the consumer protection and service standards of this section, after the grantee’s receipt of written notice and an opportunity to cure, may be deemed a material breach of the franchise agreement.
E. 
Subscriber complaints and disputes.
1. 
The grantee must establish written procedures for receiving, acting upon, and resolving subscriber complaints without intervention by the city. The written procedures must prescribe the manner in which a subscriber may submit a complaint, either orally or in writing, specifying the subscriber’s grounds for dissatisfaction. The grantee must file a copy of these procedures with the city. These procedures must include a requirement that the grantee respond in writing to any written complaint from a subscriber within ten days of receiving the complaint at the office clearly identified on the billing statement for receiving such complaint.
2. 
The city has the right to review the grantee’s response to subscriber complaints in order to determine the grantee’s compliance with the franchise requirements.
3. 
All subscribers have the right to continue receiving service so long as their financial and other obligations to the grantee are honored. If the grantee elects to rebuild, modify, or sell the system, or if the city gives notice of intent to terminate or not to renew the franchise, the grantee must act so as to ensure that all subscribers receive service while the franchise remains in force.
4. 
Upon a change of control of the grantee, or if a new operator acquires the cable system, the original grantee must cooperate with the city, the new grantee, or the new operator in maintaining continuity of service to all subscribers. During that transition period, the grantee is entitled to the revenues derived from its operation of the system.
F. 
Disconnection/downgrades.
1. 
A subscriber may terminate or downgrade service at any time, and the grantee must promptly comply with the subscriber’s request within seven days or at the time requested by the subscriber provided that the billing for the terminated service is stopped on the date that the subscriber requests termination. No period of notice prior to voluntary termination or downgrade of service may be required of subscribers. Grantee will impose no charges for the voluntary termination or downgrade of service unless a visit to the subscriber’s premises is required to remove a converter box or other equipment or property owned by grantee.
2. 
The grantee may disconnect a subscriber’s service if the subscriber fails to pay a monthly fee or charge, but such disconnection must not occur prior to forty-five days after the fee or charge is due plus ten days prior written notice to the subscriber of the grantee’s intent to disconnect service. In the event that the subscriber pays all past due amounts, including late charges, before the scheduled disconnection date, the grantee may not disconnect service. In the event that service is disconnected for nonpayment of past due fees or charges, the grantee must promptly reinstate service upon payment by the subscriber in full of all such fees and charges, including late charges.
3. 
Notwithstanding the requirements of subsection (F)(2) of this section, the grantee may immediately disconnect service to a subscriber if the subscriber is damaging or destroying the grantee’s cable system or equipment. In the event of disconnection on such grounds, the grantee will resume service to the subscriber upon receiving adequate assurances that the subscriber has ceased the practices or conduct that resulted in disconnection and has paid all proper fees and charges, including any amounts reasonably owed the grantee for the damage caused by the subscriber.
4. 
The grantee also may disconnect service to a subscriber that is causing signal leakage exceeding federal limits. In the event that service is disconnected, the grantee will immediately resume service without charge upon the satisfactory correction of the signal leakage problem.
5. 
Upon termination of service to a subscriber, the grantee will remove its equipment from the subscriber’s premises within thirty days. The equipment will be deemed abandoned if it is not removed within such time period unless the grantee has been denied access to the subscriber’s premises.
G. 
Changes in service. Except as otherwise provided by federal law, subscribers must not be required to pay any additional fee or charge, other than the regular service fee, in order to receive the services selected (such as upgrade or downgrade charges). No charge may be imposed for any service or product that the subscriber has not affirmatively selected. Payment of the regular monthly bill will not by itself constitute an affirmative selection.
H. 
Deposits. The grantee may require a reasonable, nondiscriminatory deposit on equipment provided to subscribers. Such deposits must be placed in an interest bearing account. The deposit must be returned, with interest earned to the date of repayment, within thirty days after the equipment is returned to the grantee.
I. 
Parental control option. The grantee must provide parental control devices to all subscribers who want to be able to block the video or audio portion of any programming that the subscriber finds objectionable. Such devices will be provided at no charge to the subscriber, unless otherwise required by federal law or unless a converter box is required to be installed for the purpose of providing the parental control device.
J. 
Additional requirements.
1. 
If the grantee fails to operate the system for seven consecutive days without the city’s prior approval or subsequent ratification, the city may, at its sole option, operate the system or designate an operator until the grantee restores service under conditions acceptable to the city, or until a permanent operator is selected. If the city satisfies this obligation on behalf of the grantee, then during that time period the city is entitled to collect all revenues derived from the system, and the grantee will indemnify the city against any damages that the city may suffer as a result of the grantee’s failure to operate the system.
2. 
All officers, agents, or employees of the grantee, or its contractors or subcontractors, who, in the normal course of work come into contact with members of the public, or who require entry onto subscribers’ premises, must carry a photo-identification card in a form approved by the city. The grantee must account for all identification cards at all times. All vehicles of the grantee or its subcontractors shall be clearly identified as vehicles engaged in providing services for the grantee.
3. 
Additional standards relating to service, consumer protection, and response by the grantee to subscriber complaints not otherwise provided for in this chapter may be established in the franchise agreement or by separate ordinance, and the grantee must comply with those standards in the operation of the cable television system. A verified and continuing pattern of noncompliance may be deemed a material breach of the franchise, provided that the grantee receives written notice and an opportunity to cure, before any remedy is imposed.
K. 
Penalties for noncompliance.
1. 
Purpose. The purpose of this subsection is to impose penalties for the violation of the customer service standards established by this chapter as authorized by the Video Customer Service Act (Government Code Section 53088 et seq.). These penalties are in addition to any other remedies provided by this chapter, the franchise agreement or any other law, and the city has the discretion to elect which remedy it will apply. The imposition of penalties pursuant to this subsection will not prevent the city or any other affected party from exercising any other remedy to the extent permitted by law, including but not limited to any judicial remedy as provided by subsection (K)(2)(d) of this section.
2. 
Administration and appeals.
a. 
The city manager is authorized to administer this subsection. Decisions by the city manager to assess penalties against the grantee shall be in writing and shall contain findings supporting the decisions. Decisions by the city manager shall be final, unless appealed to the city council.
b. 
In the event that the grantee or any interested person is aggrieved by a decision of the city manager, the aggrieved party may, within ten days of the written decision, appeal that decision in writing to the city council. The appeal letter must be accompanied by the fee established by the council for processing the appeal. The council may affirm, modify, or reverse the decision of the city manager.
c. 
Schedule of penalties. The following schedule of monetary penalties may be assessed against the grantee for material breach of the provisions of the customer service standards set forth in this chapter, provided the breach is not out of the reasonable control of the grantee.
i. 
The maximum penalty shall be two hundred dollars for each day of material breach, but shall not exceed six hundred dollars for each occurrence of the material breach.
ii. 
For a second material breach of the same nature within a twelve-month period for which the city has provided notice and a penalty has been assessed, the maximum penalty shall be four hundred dollars for each day of the material breach, but shall not exceed one thousand two hundred dollars for each occurrence of the material breach.
iii. 
For a third material breach of the same nature within a twelve-month period for which the city has provided notice and a penalty has been assessed, the maximum penalty shall be one thousand dollars for each day of the material breach, but shall not exceed three thousand dollars for each occurrence of the material breach.
iv. 
The above maximum penalties may be increased by any additional amount authorized by state law.
d. 
Judicial remedy. This subsection shall not preclude any affected party from utilizing any judicial remedy available to that party without regard to this subsection.
e. 
Notification of breach. The city shall give the grantee written notice of any alleged breaches of the consumer service standards and allow the grantee at least thirty days from receipt of the notice to remedy the specified breach. For the purpose of assessing penalties, a material breach shall be deemed to have occurred for each day, following the expiration of the period specified herein, that any breach has not been remedied by the grantee, irrespective of the number of subscribers affected.
(Ord. 06-001 § 1 (part), 2006)