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<br />quarter for that calendar quarter. Each payment shall be accompanied by a <br />detailed summary explaining the basis for the calculation of the state franchise <br />fee and PEG support fee. Payments shall be sent to the Santa Ana Parks, <br />Recreation and Community Services Agency. If the State franchisee does not pay <br />the franchise fee and PEG support fee when due, the State franchisee shall pay a <br />late payment charge at a rate per year equal to the highest prime lending rate <br />during the period of delinquency, plus one percent (1 %). If the State franchisee <br />has overpaid the franchise fee or PEG support fee, it may deduct the <br />overpayment from its next quarterly payment. <br /> <br />d. Gross revenue, for the purposes of (a) and (b) above, shall have <br />the definition set forth in California Public Utilities Code ~5860. <br /> <br />e. Not more than once annually, the City Manager or his designee <br />may examine and perform an audit of the business records of a State <br />franchisee(s) to the extent reasonably necessary to ensure compliance with the <br />Act and this Ordinance. <br /> <br />Section 15.272 "Customer Service Penalties Under State Video Franchises" <br /> <br />a. The holder of a state video franchise shall comply with all <br />applicable state and federal customer service and protection standards <br />pertaining to the provision of video services. <br /> <br />b. The city manager, or the city manager's designee, shall monitor <br />the compliance of State Franchisee's with respect to state and federal customer <br />service and protection standards. The city manager will provide the State <br />Franchisee written notice of any material breaches of applicable customer service <br />standards, and will allow the State Franchisee 30 days from the receipt of the <br />notice to remedy the specified material breach. Material breaches not remedied <br />within the 30-day time period will be subject to the following penalties to be <br />imposed by the City: <br /> <br />(1) For the first occurrence of a material breach, a fine of $500.00 <br />shall be imposed for each day the material breach remains in <br />effect, not to exceed $1,500.00 for each material breach. <br />(2) For a second material breach of the same nature within 12 <br />months, a fine of $1,000.00 shall be imposed for each day the <br />violation remains in effect, not to exceed $3,000.00 for each <br />material breach. <br />(3) For a third or further violation of the same nature within 12 <br />months, a fine of $2,500.00 shall be imposed for each day the <br />material breach remains in effect, not to exceed $7,500.00 for <br />each occurrence of the material breach. <br /> <br />c. Decisions by the city manager to assess monetary penalties <br />against a State franchisee are final. The State franchisee or any person aggrieved <br />by a decision of the city manager may appeal that decision in writing to the city <br /> <br />- 7 - <br />50A-9 <br />