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A. Customer Service Standards. 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 including any such standards hereafter adopted.

B. Penalties for Violations of Standards. The city shall enforce the compliance of state franchisees with respect to the state and federal customer service and consumer protection standards set forth above in subsection A of this section. The city will provide a state franchisee with a written notice of any material breaches of applicable customer service or consumer protection standards, and will allow the state franchisee thirty days from the receipt of the notice to remedy the specified material breach. Material breaches not remedied within the thirty-day time period will be subject to the following penalties to be imposed by the city:

1. For the first occurrence of a material breach, a fine of five hundred dollars may be imposed for each day the violation remains in effect, not to exceed one thousand five hundred dollars for each violation.

2. For a second material breach of the same nature within twelve months, a fine of one thousand dollars may be imposed for each day the violation remains in effect, not to exceed three thousand dollars for each violation.

3. For a third material breach of the same nature within twelve months, a fine of two thousand five hundred dollars may be imposed for each day the violation remains in effect, not to exceed seven thousand five hundred dollars for each violation.

C. Any penalties imposed by the city shall be imposed in a manner consistent with California Public Utilities Code Section 5900. As provided for in Section 5900(g) of the Public Utilities Code, the city shall submit one-half of all penalties received from a state video franchise holder to the Digital Divide Account established in Section 280.5 of the Public Utilities Code. (Ord. 2010-05 § 1 (Exh. A), 2010)