A.    All Rates Subject to Regulation. The city may regulate any of the cable communications system operator’ s rates and charges, except to the extent it is prohibited from doing so by law. The city will regulate rates in accordance with FCC rules and regulations, where applicable. Except to the extent FCC rules provide otherwise, all rates and charges that are subject to regulation, and changes in those rates or charges must be approved in advance. The city administrator may take any required steps to file complaints, toll rates, issue accounting orders or take any other steps required to comply with FCC regulations. The city council shall be responsible for issuing rate orders that establish rates or order refunds.

    B.    No Rate Discrimination. To the extent the city lawfully may enforce such a requirement, a cable communications system operator is prohibited from discriminating in its rates or charges or from granting undue preferences to any subscriber, potential subscriber, or group of subscribers or potential subscribers; provided, however, that a franchisee may offer temporary, bona fide promotional discounts in order to attract or maintain subscribers, so long as such discounts are offered on a non-discriminatory basis to similar classes of subscribers; and a franchisee may offer discounts for the elderly, the disabled, or the economically disadvantaged; and such other discounts as it is expressly entitled to provide under federal law, if such discounts are applied in a uniform and consistent manner.

    C.    Redlining Prohibited. A cable communications system operator shall not deny access or charge different rates to any group of subscribers or potential subscribers because of the income of the residents of the local area in which such group resides.

    D.    Customer Service.

    1.    Each cable communications system operator must satisfy FCC, state and city cable customer service standards and consumer protection standards. City cable customer service standards may be adopted by resolution. In the case of a conflict among standards, the stricter standard shall apply.

    2.    For violation of cable customer service standards, penalties will be imposed as follows:

    a.    Two hundred dollars for each day of each material breach, not to exceed six hundred dollars for each occurrence of material breach.

    b.    If there is a subsequent material breach of the same provision within twelve months, four hundred dollars for each day of each material breach, not to exceed twelve hundred dollars for each occurrence of the material breach.

    c.    If there is a third or additional material breach of the same provision within twelve months of the first, one thousand dollars for each day of each material breach, not to exceed three thousand dollars for each occurrence of the material breach.

    3.    Any penalty assessed under this section will be reduced dollar for dollar to the extent any liquidated damage provision of a franchise imposes a monetary obligation on a franchisee for the same customer service failures, and no other monetary damages may be assessed. The city will provide notice, and impose penalties, under this section pursuant to the procedures established by California Government Code § 53088.2(r). (Ord. 645 § 1 (part), 2004)