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explaining the basis for the calculation of the state franchise fee and PEG support fee. <br />Payments shall be sent to the Santa Ana Parks, Recreation and Community Services <br />Agency. <br />d. Gross revenue, for the purposes of (a) and (b) above, shall have the <br />definition set forth in California Public Utilities Code §5860. <br />e. Not more than once annually, the City Manager or his designee may <br />examine and perform an audit of the business records of a State franchisee(s) to the <br />extent reasonably necessary to ensure compliance with the Act and this Ordinance. <br />Section 15.272 "Customer Service Penalties Under State Video Franchises" <br />a. The holder of a state video franchise shall comply with all applicable <br />state and federal customer service and protection standards pertaining to the provision <br />of video services. <br />b. The city manager, or the city manager's designee, shall monitor the <br />compliance of State Franchisee's with respect to state and federal customer service and <br />protection standards. The city manager will provide the State Franchisee written notice <br />of any material breaches of applicable customer service standards, and will allow the <br />State Franchisee 30 days from the receipt of the notice to remedy the specified material <br />breach. Material breaches not remedied within the 30-day time period will be subject to <br />the following penalties to be imposed by the City: <br />(1) For the first occurrence of a material breach, a fine of $500.00 shall be <br />imposed for each day the material breach remains in effect, not to <br />exceed $1,500.00 for each material breach. <br />(2) For a second material breach of the same nature within 12 months, a <br />fine of $1,000.00 shall be imposed for each day the violation remains <br />in effect, not to exceed $3,000.00 for each material breach. <br />(3) For a third or further violation of the same nature within 12 months, a <br />fine of $2,500.00 shall be imposed for each day the material breach <br />remains in effect, not to exceed $7,500.00 for each occurrence of the <br />material breach. <br />c. Decisions by the city manager to assess monetary penalties against a <br />State franchisee are final. The State franchisee or any person aggrieved by a decision <br />of the city manager may appeal that decision in writing to the city council in accordance <br />with the procedures specified in chapter 3 of this Code. The appeal letter must be <br />accompanied by the fee established by the city council for processing the appeal. <br />d. Any fine imposed on a State franchisee shall be paid to the City. As <br />provided for in the California Public Utilities Code §5900(g), the City shall submit one <br />half of all fines received from a state video franchise holder to the Digital Divide Account <br />established by California Public Utilities Code §280.5. <br />11 A-7 <br />