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b. The benefits that may accrue to subscribers as a result of cable <br />system competition, such as lower rates and improved service. <br />c. The disadvantages that may result from cable system competition, <br />such as the requirement for multiple pedestals on residents' <br />property, and the disruption arising from numerous excavations <br />within the public rights-of-way. <br />(2) The city may require that any new grantee be responsible for its own <br />underground trenching and the associated costs if, in the city's opinion, <br />the streets or public ways in any particular area cannot reasonably <br />accommodate additional cables. <br />Section 3: Division 6 is added to Chapter 15 of the Santa Ana Municipal Code <br />to read in full as follows: <br />Chapter 15. <br />Division 6. Regulation of State Video Franchise Holders <br />Section 15. 270 Purpose and Authority <br />This Chapter is designed to regulate video service providers holding state video <br />franchises and operating with the City of Santa Ana. <br />As of January 1, 2007, the State of California has the sole authority to grant state <br />video franchises pursuant to the Digital Infrastructure and Video Competition Act of <br />2006 ("the Act"). Pursuant to the Act, the City of Santa Ana shall receive a franchise fee <br />and a fee for public, educational and government (PEG) purposes from all state video <br />franchise holders (hereinafter "State franchisee") operating within the City. Additionally, <br />the City has the responsibility to establish and enforce penalties, consistent with state <br />law, against all State franchisee's operating within the City for violations of customer <br />service standards set by the State. <br />Section 15.271 State Video Franchise and PEG Fees <br />a. A State franchisee that offers video service within the boundaries of the <br />City of Santa Ana, shall calculate and remit a state franchise fee equal to five percent <br />(5%) of the gross revenue of that State franchisee. <br />b. A State franchisee that offers video service within the boundaries of the <br />City of Santa Ana shall calculate and remit, a fee equivalent to one percent (1 %) of that <br />State franchisee's gross revenue, for the support of public, educational and <br />governmental (PEG) access facilities and activities within the local franchise service <br />area. <br />c. The state franchise fee and PEG support fee shall be remitted to the <br />City of Santa Ana on a quarterly basis within 45 days after the end of each quarter for <br />that calendar year. Each payment shall be accompanied by a detailed summary <br />11 A-6 <br />