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of gross revenues, as defined in Public Utilities Code section 5860, for the preceding calendar year, and all payments, deductions and computations used to determine the amount of the remittances required by subdivision (a) of this section during the preceding calendar year. The City Manager may establish, and from time to time revise, such additional reporting requirements as are necessary to ensure that the basis for the calculation of the amount of remittances are adequately explained and documented, and each state franchise holder shall comply with such additional reporting requirements provided that each franchise holder shall have first been provided written notice of such requirements at least fifteen (15) days prior to the beginning of the calendar year. (c) Notwithstanding subdivision (n) of Public Utilities Code section 5870, upon expiration of any state franchise, without any action of the City Council, this section shall be deemed to have been automatically reauthorized, unless the state franchise holder has given the City written notice sixty (60) days prior to the expiration of the state franchise that the section will expire pursuant to the terms of subdivision (n) of Public Utilities Code section 5870. 5-7-120 Customer Service Penalties by State Franchise Holders. (a) Any state franchise holder shall comply with the customer service provisions set forth in Public Utilities Code section 5900, (b) The City shall impose the following penalties against a state franchise holder for any material breach of the customer service provisions set forth in subdivision (a) of section 5-7-120: (1) For the first occurrence of a material breach, a fine of $500.00 shall be imposed for each day of each material breach, not to exceed $1,500.00 for each occurrence of the material breach. (2) For a second occurrence of a material breach of the same nature as the first material breach that occurs within twelve (12) months, a fine of $1,000.00 shall be imposed for each day of each material breach, not to exceed $3,000.00 for each occurrence of the material breach. (3) For a third or further occurrence of a material breach of the same nature as the previous material breaches that occurred within the preceding twelve (12) months, a fine of $2,500.00 shall be imposed for each day of each material breach, not to exceed $7,500.00 for each occurrence of the material breach. (c) The City Manager shall have the authority to assess penalties for any material breach by a holder of a state franchise. Prior to assessing penalties for a material breach, the City Manager shall first have provided the state franchise holder with written notice of any alleged material breach of the customer service provisions set forth in California Public Utilities Code section 5900 and shall allow the state franchise holder at least thirty (30) days from receipt of the notice to remedy the specified material breach. (d) A material breach for the purposes of assessing penalties shall be deemed to have occurred for each day within the jurisdiction of the City, following the expiration of the period specified in this section that any material breach has not been remedied by the video provider, 3