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instead, are charged to recover the costs of mitigating the degradation that the excavation causes to the pavement over and adjacent to the trench, and the increased cost to the City in reconstructing a street that has been patched following an excavation. Likewise, this Ordinance is consistent with the terms of existing utility franchises with the City of Santa Ana, because (i) a franchise is intended solely to authorize a utility's use of City streets, ways, alleys and places, (ii) franchise fees established for franchises were not intended to recover the costs of mitigating damage to the pavement over or adjacent to the trench; nor was this damage known to the City when fees for the City's existing franchises were established, (iii) the City does not use, nor is it required to use, franchise fee revenue to pay for street surfacing, resurfacing and/or reconstruction, (iv) franchises are subject to ordinances and regulations subsequently enacted by the City in the exemise of its police power, and (v) the fee authorized by this Ordinance is not related to the quality of workmanship of the repair of the street following its excavation, but instead relate to the shortening of the effective life of a street and the increased cost in reconstruction that is inherent in any excavation. J= This Ordinance is in conformance with Section 253(C) of the Federal Telecommunications Act of 1996 which expressly recognizes the authority of local governments to impose reasonable nondiscriminatory fees upon telecommunications providers using the public right-of-way, as well as California Government Code 50030 which specifically authorizes the imposition of a permit fee that do not exceed the reasonable costs of providing the service for which the fee is charged. Section 2. Sections 33-58 (Bond or Insurance) and 33-59 (Permit) of the City's Code are hereby repealed. Section 3. Sections 33-59 through 33-59.6 are hereby added to Chapter 33 of the City's Code as follows: Section 33-59. Purpose of Trench Cut Fee. Excavations in paved streets owned and maintained by the City degrade and shorten the life of the surface of the streets, and this degradation increases the frequency and cost to the public of necessary resurfacing, maintenance and repair. It is appropriate that entities responsible for excavating into the City's right of way bear this burden rather than the taxpayers of the City. In addition, establishment of a trench cut fee will create an incentive for coordination of efforts in excavating the streets to lay utilities. Ordinance No, NS-2480 Page 3 of 7