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ORDINANCE NO. NS-2774 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ADDING DIVISION 6 TO CHAPTER 15 OF THE SANTA ANA MUNICIPAL CODE, REGARDING STATE FRANCHISED VIDEO SERVICE PROVIDERS THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1: The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The Legislature of the State of California has adopted the Digital Infrastructure and Video Competition Act of 2006 (DIVCA) effective January 1, 2007,and B. DIVCA establishes a regulatory structure for the State to grant franchises for the provision of video service including cable television service and open-video systems, and C. Pursuant to DIVCA the City of Santa Ana acquires certain rights and responsibilities with respect to state video franchise holders ("State Franchisees"), and D. Included in such rights is the requirement that the City receive a state franchise fee as compensation for the use of the public rights-of-way for the provision of video services, and E. DIVCA requires that the City establish, by ordinance, financial support provisions for Public, Educational and Government (PEG) channel facilities, and F. DIVCA requires that the City adopt a schedule of penalties for any material breach by a State video franchise holder for violation of customer service and protection standards that the City is permitted to enforce, and G. The City may examine the business records of a State Franchisee to the extent reasonably necessary to ensure financial accountability, and H. The City will retain authority, without change, over the existing cable franchise until such time as the franchisee no longer holds a City franchise, or is no longer operating under a current or expired franchise, and All provisions of the Santa Ana Municipal Code which are repeated herein are repeated solely in order to comply with the provisions of section 418 of Ordinance No. NS-2774 Page 1 of 9