Sacramento Municipal Code Art. VII Franchise Fees-Rates

For the use of the streets and for the purposes of providing revenue with which to defray the costs of regulation arising out of issuance of franchises under this chapter and promoting, assisting and financing community use programming and other cable services of a public character, each franchisee shall pay franchise fees in the amount prescribed by Section 5.28.1520 of this chapter. Each franchisee shall cooperate with the cable television commission in filing with the FCC and supporting a waiver request permitting payment of the amount prescribed by Section 5.28.1520 of this chapter. (Prior code § 20.07.600)

During the term of each franchise, each franchisee shall pay to the cable television commission an amount equal to five percent per year of the franchisee's annual gross revenues.

Said fees shall be paid quarterly not later than August 1st, November 1st, February 1st, and May 1st for the preceding three month period ending, respectively, June 30th, September 30th, December 31st, and March 31st. Not later than the date of each payment, each franchisee shall file with the clerk of the board of directors of the cable television commission and with the governing bodies of the county and cities a written statement signed under penalty of perjury by an officer of the franchisee which identifies in detail the sources and amounts of gross revenues received by a franchisee during the quarter for which payment is made.

No acceptance of any payment shall be construed as an accord that the amount paid is, in fact, the correct amount, nor shall such acceptance of payment be construed as a release of any claim which the commission may have for further or additional sums payable under the provisions of this section. (Prior code § 20.07.602)

From and after the date of filing of a certificate of acceptance of a franchise pursuant to the provisions of Section 5.28.440 of this chapter, the franchisee shall pay to the cable television commission an annual amount equal to the lesser of the following:

A. One hundred twenty (120) percent times each annual budget of the commission; or

B. A minimum annual amount of eight hundred thousand dollars ($800,000.00).

Said annual amount shall be paid by the franchisee in equal quarterly installments (prorated for the first quarter if a franchise is issued in the middle of a quarter) at the times and for the periods prescribed by Section 5.28.1520 of this chapter. At the commencement of the first full fiscal year following issuance of a franchise and at the commencement of each fiscal year thereafter, said minimum annual amount of eight hundred thousand dollars ($800,000.00) shall be increased by a percentage equal to the annual percentage increase in the consumer price index for all urban consumers published by the United States Department of Labor for the San Francisco-Oakland Bay Area for the twelve (12) month period ending June 30th immediately preceding the commencement of the fiscal year for which adjustment is to be made.

At such time as annual franchise fees due to the commission pursuant to the provisions of Section 5.28.1520 of this chapter, shall exceed the annual sum payable under this section, the amounts previously paid to the commission pursuant to the provisions of this section which have exceeded annual amounts otherwise owing under Section 5.28.1520 of this chapter, shall be credited against the franchise fee in an amount not to exceed twenty (20) percent of the total franchise fee payment each year until the entire amount advanced to the commission is accounted for; provided that in no event shall such credits be used to reduce actual payments to the commission below the minimum amount specified above; provided, further that at no time during the term of a franchise shall the amount payable by a franchisee be lower than prescribed by this section; and provided further, that in no event shall the commission, county or cities become or be liable to the franchisee for payments made pursuant to the provisions of this section.

The purpose of this section is to provide operating capital with which to defray the costs of regulation and other operations incurred by the cable television commission, county and cities during any period in which the franchisee's gross revenues are too low to provide adequate funds from franchise fees to finance such functions. (Prior code § 20.07.604)

Neither the county nor cities have or expect in the foreseeable future to receive sufficient funds with which to defray the costs of administering and regulating cable television franchises within the Sacramento community. The ability to finance such costs through franchise fees pursuant to the provisions of Sections 5.28.1520 and 5.28.1530 of this chapter, constitutes a material inducement to initiate a cable television program within the Sacramento community, because neither the county nor cities would be willing to reduce or eliminate other public programs in order to make public funds available with which to defray the costs of administering and regulating the cable television program.

Therefore, should any future law or regulation limit or prevent the cable television commission from imposing a franchise fee in the amount provided for herein, each franchisee shall cooperate with the cable television commission in filing and supporting a request to obtain any possible waiver or permission to pay the full amounts provided for herein, and, to the extent such future law or regulation permits a franchisee discretion to make the limitation or prohibition applicable or inapplicable, each franchisee shall elect to make the limitation or prohibition inapplicable.

Should any future law or regulation limit or prevent the franchisee from paying the minimum advance fee required by Section 5.28.1530 of this chapter, the franchisee, by the filing of the certificate of acceptance hereto, agrees to make a noninterest bearing loan to the commission annually in an amount equal to the amount by which a minimum advance payment calculated pursuant to the provisions of Section 5.20.1530 of this chapter which would have exceeded amounts reasonably anticipated to be due to the commission within the ensuing year pursuant to Section 5.28.1520 of this chapter, which loan shall be repaid in subsequent years to the extent that the amount paid as franchise fees by the franchisee pursuant to the provisions of Section 5.28.1520 of this chapter exceeds an amount equal to an amount which would have been paid as a minimum advance payment under Section 5.28.1530 of this chapter, in such subsequent years had such payments been permitted.

The failure of the commission to receive the fees or the loans prescribed by this article shall be deemed to constitute a substantial and material failure to comply with the franchise documents within the meaning of Section 5.28.210 of this chapter. (Prior code § 20.07.606)

The auditor of the cable television commission may, from time to time during the term of a franchise prescribe standards governing the nature, extent and type of accounting system and accounting procedures utilized by a franchisee and require changes in accounting standards or procedures utilized by a franchisee, for the purpose of promoting the efficient administration of the franchise pursuant to the provisions of this chapter. Any such standards shall be in writing, shall be filed with the clerk of the board of directors of the commission, and shall be mailed to the franchisee to whom directed. A franchisee shall promptly comply with all such standards.

During the term of each franchise, the cable television commission may, not more frequently than once each year, conduct an audit of the books, records and accounts of the franchisee for the purpose of determining whether the franchisee has paid franchise fees in the amounts prescribed by Section 5.28.1520 of this chapter. The audit may be conducted by the auditor of the commission or by an independent certified public accounting firm retained by the commission, and shall be conducted at the sole expense of the commission. The party conducting the audit shall prepare a written report containing its findings, and the report shall be filed with the clerk of the board of directors of the commission, and mailed to the county, cities and franchisee. Notwithstanding the foregoing, the commission shall conduct such an audit at any time, if requested to do so by the governing body of the county or any of the cities. The cost of such an audit so requested shall be borne by and at the sole expense of the county or any of the cities making the request, and the cost shall be paid within thirty (30) calendar days following receipt of billing therefor by the commission. The report of the audit shall be filed and mailed as prescribed above.

At any time during the term of a franchise, the cable television commission may, through its auditor or a certified public accounting firm which it retains, and at its sole expense, conduct an audit of the books, records and accounts of the franchisee for the purpose of identifying any information which the board of directors of the commission deems necessary to obtain for the purpose of administering the franchise under the provisions of this chapter. A written report of such audit shall be filed with the clerk of the board of directors of the commission, and mailed to the county, cities and franchisee. The franchisee shall comply with any recommendations or directives set forth in such report respecting changes in its accounting system.

Each franchisee shall make available for inspection by authorized representatives of the cable television commission, its books, accounts, and all other financial records at reasonable times and upon reasonable advance notice for the purpose of permitting exercise of the authorities conferred by this section. (Prior code § 20.07.608)

The period of limitation for recovery of any franchise fees payable pursuant to the provisions of Sections 5.28.1520 or 5.28.1530 of this chapter, shall be five years from the date on which payment by the franchisee is due. Unless within five years from said date, the cable television commission initiates recovery pursuant to the provisions of Section 5.28.1570 of this chapter, recovery shall be barred. Delinquent franchise fees shall bear interest at an annual rate equivalent to that federal reserve discount rate on advances to member banks in effect on January 2nd, April 1st, July 1st, and October 1st for the succeeding quarter of delinquency. The interest shall be compounded quarterly, at the end of each quarter. In addition to interest as above prescribed, a ten (10) percent per annum penalty shall be paid on all delinquent franchisee fees in recognition of the fact that fluctuating interest rates on borrowed funds makes it impossible to establish a reliable interest rate standard as a measure of damage for delinquency in the payment of franchise fees, and other elements of damage resulting from delinquency, such as the inadequacy of revenue with which to adequately administer and enforce the franchise, arising out of such delinquency are subjective and impossible to estimate. (Prior code § 20.07.610)

In the event a franchisee fails to pay franchise fees pursuant to Sections 5.28.1520 or 5.28.1530 of this chapter, or the board of directors of the commission determines that a franchisee has paid franchise fees in a lower amount or amounts than prescribed, written notice thereof shall be mailed to the franchisee. The notice shall show the basis for the determination that fees are owing, and the amount thereof, if known, and may show the amount of interest and penalties accumulated to date.

Within thirty (30) calendar days following the date of mailing of such notice, the franchisee may pay any amount stated in the notice, plus interest and penalties, without protest. Any payment made without accompaniment of a written statement of protest shall be deemed to have been made without protest, and shall constitute a waiver of the right to request arbitration or other relief respecting any and all amounts so paid.

Within thirty (30) calendar days following the date of mailing of such notice, the franchisee may, alternatively, file a written request for arbitration with the clerk of the board of directors of the commission objecting to payment, and specifically identifying why objection is made and wherein the franchisee disagrees with the determination. At the time of filing such a request for arbitration, the franchisee may deposit with the commission, under protest, any amount, including interest and penalties, which the franchisee estimates to be in dispute. Any such deposit shall be accompanied by a written statement by the franchisee stating that the amount deposited is pursuant to protest and a request for arbitration. From and after the date of any such deposit, interest and penalties as prescribed by Section 5.28.1560 of this chapter, on the amount deposited shall terminate, and no such interest or penalties on such amount shall accrue subsequent to the date of deposit. In the event it is finally determined that the whole or any portion of an amount so deposited under protest was not owing by the franchisee, such amount, without interest, shall be credited against and reduce the amount of franchise fees which become owing by the franchisee subsequent to the date of such final determination; provided that no such future payment shall be reduced as such a credit by an amount greater than ten (10) percent of the franchise fee payment otherwise owing; and provided further, that in no event shall the commission, county or cities become or be liable to the franchisee for reimbursement of any portion of an amount so deposited under protest except as a credit against any future franchise fees which become owing.

If the notice to the franchisee by the commission shows the amount of franchise fees owing, including interest and penalties, the board's determination shall become final and conclusive, not subject to judicial review or reversal by any authority and judicially enforceable, unless the franchisee requests arbitration within the time and in the manner prescribed above.

If the franchisee fails to either pay the franchise fees without protest or request arbitration and if the notice by the commission does not specify the amount of franchise fees, including interest and penalties, owing, or if the franchisee pays an amount without protest and the board of directors of the commission disagrees that the amount paid is the amount owing, the board of directors, at its sole discretion, may request arbitration by mailing written notice of its election to arbitrate to the franchisee.

If arbitration is requested, the arbitration panel shall be selected, the hearing scheduled within the time prescribed, notice given, the hearing conducted, decision made and costs divided in the manner prescribed by Sections 5.28.1920 through 5.28.1970 of this chapter. The discovery provisions of the California Arbitration Act (Code of Civil Procedure, Section 1280 et seq.) shall be applicable to arbitration proceedings under this section. The questions which may be submitted to the arbitration panel and jurisdiction of the arbitration panel shall be limited to the following:

A. The interpretation of the provisions of the franchise documents solely in relation to the decision required by subsection B of this section; and

B. The amount, if any, owing by the franchisee.

The franchisee shall immediately pay any amount determined to be owing by the arbitration panel. The arbitration award may be judicially enforced, shall be final, binding and conclusive upon the parties and shall not be subject to judicial review or vacation except on grounds set forth in Section 1286.2 of the Code of Civil Procedure. (Prior code § 20.07.612)

The amount of the franchise fees prescribed by Section 5.28.1520 of this chapter, has been established pursuant to limitations set forth in state law (California Government Code, Section 53066) and regulations of the FCC (47 C.F.R. 76.31).

In the event the above described limitations upon the amount of franchise fees should, during the term of any franchise issued pursuant to the provisions of this chapter, be increased or eliminated, the franchisee, upon request by the commission, shall enter into negotiations with the cable television commission for the purpose of formulating a mutually agreeable increase in the franchise fees prescribed by Section 5.28.1520 of this chapter.

Any agreement relating to such an increase shall be embodied in a written contract between the commission and franchisee, which shall be deemed to amend Section 5.28.1520 of this chapter, respecting the amount of the fees. If within ninety (90) calendar days following the date of request by the commission for negotiations, mutual agreement has not been reached respecting an amendment of the provisions of Section 5.28.1520 of this chapter, increasing the fees, the board of directors of the commission may cause written notice of its request to arbitrate to be mailed to each concerned franchisee and the county and cities. The notice shall specifically identify the amount of increase in fees which the board desires to submit to arbitration, and shall describe the nature and amount of uncompensated costs which the commission, county and cities are incurring or desire to incur in administering the franchise or franchises and promoting, assisting and regulating the various types of access use.

The arbitration panel shall be selected, the hearing scheduled within the time prescribed, notice given, the hearing conducted, decision made and costs divided in the manner prescribed by Sections 5.28.1920 through 5.28.1970 of this chapter. Parties to the arbitration proceeding may include each franchisee who would be affected by an amendment of Section 5.28.1520 of this chapter, the commission, the county and the cities. The questions which may be submitted to the arbitration panel and jurisdiction of the panel shall be limited to:

A. The interpretation of the provisions of the franchise documents solely in relation to the determination required by subsection B of this section; and

B. The amount, if any, by which the franchise fees prescribed by 5.28.1520 of this chapter, may be increased.

The arbitration panel shall authorize an increase in the franchise fees by an amount which the panel finds is justified by actual (including past uncompensated) or proposed costs incurred by the commission, county and cities for administering each franchise issued pursuant to the provisions of this chapter and promoting, assisting and financing any types of community use proposed pursuant to the provisions of Sections 5.28.830 through 5.28.870 of this chapter or provided pursuant to Section 5.28.1490 of this chapter, provided that the annual franchisee fee shall under no circumstances exceed the maximum permissible percentage per year of a franchisee's annual gross revenues under applicable federal or state law. In the event more than one franchise is issued pursuant to the provisions of this chapter, the arbitration panel shall establish such an amount with respect to each franchisee. Any increase or increases ordered by the arbitration panel shall be deemed to amend the provisions of Section 5.28.1520 of this chapter, respecting the amount of the fees. The county and cities shall be authorized to amend Section 5.28.1520 of this chapter by increasing the franchise fees by any amounts authorized under the decision of the arbitration panel.

Negotiations and arbitration proceedings pursuant to this section may be initiated by the commission not more frequently than once each year during the remainder of the term of any franchise issued pursuant to the provisions of this chapter following the increase of or elimination of the statutory and regulatory limitations upon the amount of franchise fees which may be charged under state and federal law.

The arbitration award pursuant to this section may be judicially enforced, shall be final, binding, and conclusive upon the parties, and shall not be subject to judicial review or vacation except on grounds set forth in Section 1286.2 of the Code of Civil Procedure. (Prior code § 20.07.614)

The purpose of this section through Section 5.28.1630 of this chapter, is to permit applicants for a franchise to propose the provision of minimal service during the term of a franchise at rates and charges designed to insure that all residents within the franchise area, including the economically underprivileged, will have the opportunity to benefit from the educational, recreational and other advantages made available by the cable television system.

An applicant who chooses not to make such a proposal shall not be disqualified from bidding or consideration in selection of the franchisee. It is expressly declared that the factors upon which selection will be based are so numerous and subjective as to make it impossible to know in advance the relative importance of a determination by an applicant to either make or not to make such a proposal in relation to other factors upon which award of a franchise will be based.

The county and cities recognize the right of a franchisee to propose the provisions of minimal services at specified rates pursuant to the provisions of this section through Section 5.28.1630 of this chapter, and nonetheless subsequently elect to be exempt from local rate regulation or to unilaterally adjust its rates in strict compliance with the provisions of Section 53066.1 of the Government Code, provided that if, for any reason, the right of the franchisee to elect exemption from rate regulation shall hereafter be abridged or repealed, the full regulatory authority of the commission shall thereupon be restored pro tanto. (Prior code § 20.07.616)

Each applicant for a franchise may state in its application the rates and charges at which various services on the subscriber network will be offered when service is first made available under the franchise.

In addition, an applicant may (but is not required to) propose that the rates and charges for the provision of basic service be maintained during the term of the franchise at levels not greater than those described by Sections 5.28.1620 and 5.28.1630 of this chapter. An applicant desiring to make such a proposal shall state in its application, for each service area applicable to the franchise, the amounts and types of all rates and charges, including deposits, of whatever kind or nature to be applicable to the provision of basic service, including, but not limited to, rates and charges for connection, installation, reinstatement and the monthly subscription or service charge; and in relation thereto refer to and incorporate by express reference into the application the provision of both Sections 5.28.1620 and 5.28.1630 of this chapter. The amounts and types of any deposits required in relation to connection, installation, reinstatement subscription or otherwise shall be stated separately. The acquisition or rental costs of converters required to provide basic service, if any, shall not be separately stated and shall be included in the monthly subscription or service charge for basic service, if any. An applicant desiring to make different rates and charges for basic service applicable to single family residential and commercial or certain types of commercial uses, shall separately state the rates and charges according to categories of uses with respect to which differences will apply. As used in this section the terms "commercial uses" shall include, in addition to other types of business enterprises, hotels, motels, apartments, condominiums, mobilehome parks, other multiple family residential units, and areas served by master antenna systems. (Prior code § 20.07.618)

A franchisee who has referred to and incorporated in its application the provisions of Sections 5.28.1620 and 5.28.1630 of this chapter, shall comply with the provisions of said sections during the term of the franchise.

If a franchise is issued to an applicant who has referred to and incorporated the provisions of said sections in its application, the receipt by such applicant at any time during the term of the franchise of rates or charges which are inconsistent with the provisions of said sections, unless in strict compliance with the provisions of Section 53066.1 of the Government Code, shall be deemed to constitute a substantial and material failure to comply with the franchise documents within the meaning of Section 5.28.210 of this chapter.

If, at any time hereafter, the right of the franchisee to elect exemption under Government Code Section 53066.1 or other federal or state law shall be abridged or repealed in any manner, the commission's full regulatory authority shall there upon be restored pro tanto. (Prior code § 20.07.620)

The provisions of this section shall be applicable only to a franchisee who has referred to and incorporated the provisions hereof by reference in its application for the franchise.

There shall be no charge for the provision of basic service to subscribers, whether residential or commercial, except with respect to rates and charges, if any, stated in the application for the franchise and as otherwise authorized by this section. There shall be no fee or charge to subscribers in connection with the repair or replacement of convertors, except in connection with repair or replacement required as a result of misuse or abuse of or damage to the convertor while on the premises of the subscriber without fault by the franchisee or its agents.

All rates and charges for basic service stated in the franchisee's application, including those for connection, installation, reinstatement and the monthly subscription or service charge, shall remain in effect until the date on which the franchisee makes basic service available to one hundred (100) percent of the dwelling units within each service area identified by the franchise documents for that franchise. The date on which the franchisee shall be deemed to have made basic service available to one hundred (100) percent of the dwelling units, shall be deemed to be the date on which the final order of completion is issued pursuant to the provisions of Sections 5.28.1000 or 5.28.1010 of this chapter.

Effective on the date the franchisee is deemed to have made basic service available to one hundred (100) percent of the dwelling units as prescribed above, the rates and charges for basic service stated in the franchisee's application, including those for connection, installation, reinstatement and the monthly subscription or service charge or any of them, may be increased by amounts which do not individually exceed fifty (50) percent of the increase, if any, in the consumer price index for all urban consumers published by the United States Department of Labor for the San Francisco-Oakland Bay area during the twelve (12) calendar month period ending ninety (90) days prior to the effective date of such increases. Such rates and charges for basic service shall not exceed the amounts as increased in the manner herein authorized during the twelve (12) calendar month period following the date on which the adjustments become effective.

At the conclusion of the term of the first increase as identified above, and each twelve (12) calendar months thereafter during the remainder of the term of the franchise, such rates and charges for basic service stated in the application, or any of them, may be increased in a like manner. In each instance, the increase in the amounts stated in the application shall not exceed fifty (50) percent of the increase, if any, in the consumer price index for all urban consumers published by the United States Department of Labor for the San Francisco-Oakland Bay area during the twelve (12) month period ending ninety (90) days prior to the date the increase is to become effective.

In the event a franchisee increases rates or charges pursuant to the provisions of this section less frequently than authorized by this section or in of any amounts lower than authorized by this section, the provisions of this section shall apply prospectively respecting any such increases as the limitations herein permit, and cumulative or multiple increases based upon the authorization of this section are prohibited. For example, a franchisee who elects to increase basic service rates and charges for the first time effective six months following the date on which basic service is deemed to have been made available to one hundred (100) percent of the dwelling units, rather than effective on the date that basic service is deemed to have been made available to one hundred (100) percent of the dwelling units, shall apply the consumer price index increase for the twelve (12) month period ending ninety (90) days prior to the actual effective date of the increase, rather than the date when the increase is permitted by this section to be effective, and shall not be authorized to increase rates thereafter until the end of a twelve (12) month period following the actual date of the increase, rather than the date when the increase was permitted by this section to become effective. A potential increase lost by failure to increase rates as authorized by this section, may not be recaptured through its addition to future rate increases authorized hereby. If certain types of basic service rates are increased effective on a particular date and others are not, though they might have been, the rates not increased may be individually increased at any time without waiting for expiration of the twelve (12) month period applicable to the types of rates actually increased.

No increase in rates or charges pursuant to this section shall become effective until the expiration of thirty (30) days following the date on which written notice showing the types of rates or charges to be increased, the amount of the increase, the consumer price index increase upon which the rate or charge increase is predicated, and the date on which such rates or charges were last increased is mailed to all existing subscribers of the franchisee who would be affected thereby and filed with the clerk of the board of directors of the cable television commission. (Prior code § 20.07.622)

The provisions of this section shall apply only to a franchisee who has made reference to this section and incorporated the provisions hereof by reference in its application for the franchise.

Except as hereinafter provided, or as otherwise expressly authorized by this chapter, a franchisee shall not, in its rates or charges, or in making available the services or facilities of its cable television system, or in its rules or regulations, or in any other respect, make or grant preference or advantages to any subscriber or user with respect to basic service; and such services shall be offered upon terms and conditions which are not discriminatory. A franchisee may offer or make the following distinctions with respect to the terms or conditions of basic service.

A. Rates and charges associated with basic service offered within a proposed service area and, except as provided by Sections 5.28.1030 and 5.28.1040 of this chapter, outside of a service area, may differ from those associated with basic service offered within an imposed service area and may differ from one proposed service area to another. Any such differences in rates and charges between an imposed service area and proposed service areas or among proposed service areas shall be specifically identified in the application pursuant to Section 5.28.1600 of this chapter, and in the absence of such identification rates and charges set forth in the application shall apply uniformly within all service areas.

B. Rates and charges associated with basic service offered outside of a service area shall, except as otherwise provided by Sections 5.28.1030 and 5.28.1040 of this chapter, be subject to review and approval by the board of directors of the cable television commission pursuant to the provisions of Section 5.28.1150 of this chapter.

C. Within a service area, a franchisee may generally or within limited geographical areas offer, on a limited term basis, reduced rates or charges as part of a promotional campaign to stimulate subscriptions. The monthly subscription or service rate or charge for basic service shall not be eliminated or reduced for a period longer than ninety (90) calendar days during any thirty-six (36) month period for any particular occupant of the same dwelling unit, including both single-family and multiple-family dwelling units.

D. A franchisee may, in connection with the provision of basic service to commercial uses, as the terms "commercial uses" are defined by Section 5.28.1600 of this chapter, establish charges for installation or connection (exclusive of deposits) which are either higher or lower than amounts stated in its application, or as permissibly adjusted pursuant to the provisions of Section 5.28.1620 of this chapter. The amount of any such variance in such rates and charges shall be predicated upon and limited to differences in costs incurred for installation or connection with respect to particular commercial uses in relation to those estimated as set forth in the application. The sole purpose of this subsection is to permit variances in connection or installation charges for particular commercial uses based upon the circumstances specially applicable to any individual commercial use, in view of the impracticality of estimating connection or installation costs for commercial uses at the time an application is filed.

E. A franchisee may grant preferential rates or charges to hospitals, rest homes and prisons or detention facilities.

F. With advance approval by the commission a franchisee may grant preferential rates or charges for services to the elderly, the handicapped, or the economically disadvantaged.

G. A franchisee may require residential subscribers to pay for each month of basic service in advance at the beginning of each month. Service shall not be terminated for delinquency in making a monthly advance payment earlier than fifteen (15) calendar days following the date upon which the advance payment is due, and monthly statements to subscribers shall provide notice of the franchisee's policy respecting termination of service for delinquency in making advance payments. With the foregoing exception, and except as otherwise expressly authorized by this chapter, a franchisee shall not, without advance approval by the commission, require any other advance payment or deposit of any kind with respect to the provision of basic service to subscribers.

The authority vested in the cable television commission by this section shall be exercised by the board of directors of the commission after public hearings conducted by the board or an advisory committee which it designates, notice of which is given in the manner prescribed by Section 5.28.080 of this chapter. The determinations by the board of directors shall be final, binding, conclusive and not subject to review or reversal by any authority. (Prior code § 20.07.624)