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                                   Before the

                       Federal Communications Commission

                             Washington, D.C. 20554

     In the Matter of                                                       
     Chula Vista Cable, Ltd.                                                
                                           )     File Number: EB-06-SD-190  
     Operator of Cable Television System                                    
                                           )   NAL/Acct. No.: 200732940005  
     Community Unit ID: CA1272                                              
                                           )               FRN: 0016106908  
     Physical System ID: 012866                                             
     Chula Vista, California                                                

                                FORFEITURE ORDER

   Adopted: September  25, 2007    Released:  September 27, 2007

   By the Regional Director, Western Region, Enforcement Bureau:


    1. In this Forfeiture Order ("Order"), we issue a monetary forfeiture in
       the amount of six thousand, four hundred dollars ($6,400) to Chula
       Vista Cable, Ltd. ("CVC"), owner of a cable system serving Chula
       Vista, California, for repeated violation of Section 11.35 of the
       Commission's Rules ("Rules"). On March 21, 2007, the Enforcement
       Bureau's San Diego Office issued a Notice of Apparent Liability for
       Forfeiture ("NAL") in the amount of $8,000 to CVC for failing to
       ensure the operational readiness of the Emergency Alert System ("EAS")
       equipment in its Chula Vista, California cable system. In this Order
       we consider CVC's request that we reduce the forfeiture amount because
       of its financial ability to pay the forfeiture, and its history of
       compliance with the Rules.


    2. On August 8, 2006, an agent of the Enforcement Bureau's San Diego
       Office attempted to inspect the operational readiness of the EAS
       equipment installed at CVC's cable television system serving Chula
       Vista, California. During this inspection, the San Diego agent found
       that the system's EAS equipment, including both the encoder and the
       decoder, had been purchased and delivered to the cable system's
       head-end, but was never installed. Upon returning to the San Diego
       Office, the agent reviewed the Commission's records and other public
       records and determined that CVC had over 3000 subscribers and had not
       been granted waivers of EAS requirements.

    3. On December 8, 2006, a Letter of Inquiry ("LOI") was issued by the San
       Diego Office to CVC asking questions concerning the cable system's FCC
       registration filings and cable leakage program, as well as the status
       of the EAS equipment at CVC. No response was received to that LOI. A
       second LOI was sent February 8, 2007, warning that sanction action
       against CVC was possible if no reply was received. A timely reply to
       the second LOI from CVC was received by the San Diego Office on
       February 20, 2007, indicating that the EAS equipment has been
       installed, but none had been operational prior to the August 8, 2006,
       inspection. The reply also indicated that the owner had not installed
       EAS equipment for at least two years.

    4. On March 21, 2007, the Enforcement Bureau's San Diego Office issued
       the NAL in the amount of $8,000 to CVC for violating Section 11.35 of
       the Rules. CVC filed a response ("Response")  to the NAL on April 18,
       2007. In its Response, CVC asks for mitigation of the forfeiture based
       of its ability to pay, as well as its history of compliance with the
       Commission's Rules.


    5. The proposed forfeiture amount in this case was assessed in accordance
       with Section 503(b) of the Act, Section 1.80 of the Rules, and The
       Commission's Forfeiture Policy Statement and Amendment of Section 1.80
       of the Rules to Incorporate the Forfeiture Guidelines ("Forfeiture
       Policy Statement"). In examining CVC's response, Section 503(b) of the
       Act requires that the Commission take into account the nature,
       circumstances, extent and gravity of the violation and, with respect
       to the violator, the degree of culpability, any history of prior
       offenses, ability to pay, and other such matters as justice may

    6. The Rules provide that every cable television system is part of the
       nationwide EAS network and is categorized as a participating national
       EAS source unless the station affirmatively requests authority to not
       participate. The EAS provides the President and state and local
       governments with the capability to provide immediate and emergency
       communications and information to the general public. State and local
       area plans identify local primary sources responsible for coordinating
       carriage of common emergency messages from sources such as the
       National Weather Service or local emergency management officials.
       Required monthly and weekly tests originate from EAS Local or State
       Primary sources and must be retransmitted by the participating

    7. Section 11.35 of the Rules requires all cable television systems to
       ensure that EAS encoders, EAS decoders and attention signal generating
       and receiving equipment is installed and operational so that the
       monitoring and transmitting functions are available during the times
       the station is in operation. Cable systems must also determine the
       cause of any failure to receive required monthly and weekly EAS tests,
       and must indicate in the station's log why any required tests were not
       received and when defective equipment is removed and restored to

    8. Section 11.61(a)(1) and (2) of the Rules requires cable television
       systems to (a) receive monthly EAS tests from designated local primary
       EAS sources and retransmit the monthly test within 60 minutes of its
       receipt and (b) conduct tests of the EAS header and EOM codes at least
       once a week at random days and times. The requirement that stations
       monitor, receive and retransmit the required EAS tests ensures the
       operational integrity of the EAS system in the event of an actual
       disaster. Appropriate entries must be made in the broadcast station
       log as specified.

    9. The August 8, 2006, inspection by a San Diego agent revealed that the
       CVC EAS equipment was not operational, however, EAS equipment was
       present at the system at the time of the inspection. In its response
       to the second LOI issued by the San Diego Office, CVC acknowledged
       that it had not installed EAS equipment for over two years, believing
       no EAS equipment was required for a system of its size. However, no
       waivers of the EAS requirements have been granted to CVC

   10. CVC does not dispute the EAS violations found by the San Diego agent,
       however, CVC asks that the forfeiture amount be reduced because the
       size of the forfeiture "will greatly impact the ability of the company
       to continue." To support this claim, CVC supplies its last three years
       of tax records. In analyzing a financial hardship claim, the
       Commission generally has looked to gross revenues as a reasonable and
       appropriate yardstick in determining whether a licensee is able to pay
       the assessed forfeiture.  The data produced by CVC, however, does not
       support cancellation or reduction of the forfeiture, as the forfeiture
       amount does not exceed two percent of CVC's average gross revenues for
       the three years covered by the financial documents. Therefore, we are
       unable to reduce the forfeiture based on CVC's inability to pay.

   11. CVC appears to ask that the forfeiture amount be reduced based on its
       overall history of compliance with the Commission's Rules. We have
       reviewed our records and we concur. Consequently, we reduce CVC's
       forfeiture amount from $8,000 to $6,400.

   12. Based on the information before us, having examined it according to
       the statutory factors above, and in conjunction with the Forfeiture
       Policy Statement, we find that reduction of the proposed forfeiture to
       $6,400 is warranted.


   13. ACCORDINGLY, IT IS ORDERED that, pursuant to Section 503(b) of the
       Communications Act of 1934, as amended ("Act"), and Sections 0.111,
       0.311 and 1.80(f)(4) of the Commission's Rules, Chula Vista Cable,
       Ltd., IS LIABLE FOR A MONETARY FORFEITURE in the amount of $6,400 for
       repeatedly violating Section 11.35 of the Rules.

   14. Payment of the forfeiture shall be made in the manner provided for in
       Section 1.80 of the Rules within 30 days of the release of this Order.
       If the forfeiture is not paid within the period specified, the case
       may be referred to the Department of Justice for collection pursuant
       to Section 504(a) of the Act. Payment of the forfeiture must be made
       by check or similar instrument, payable to the order of the Federal
       Communications Commission.  The payment must include the NAL/Acct. No.
       and FRN No. referenced above.  Payment by check or money order may be
       mailed to Federal Communications Commission, P.O.
       Box 358340, Pittsburgh, PA 15251-8340.  Payment by overnight mail may
       be sent to Mellon Bank /LB 358340, 500 Ross Street, Room 1540670,
       Pittsburgh, PA 15251.   Payment by wire transfer may be made to ABA
       Number 043000261, receiving bank Mellon Bank, and account number 911-
       6106. Requests for full payment under an installment plan should be
       sent to: Associate Managing Director - Financial Operations, Room
       1A625, 445 12th Street, S.W., Washington, D.C. 20554.

   15. IT IS FURTHER ORDERED that a copy of this Order shall be sent by First
       Class Mail and Certified Mail Return Receipt Requested to Chula Vista
       Cable, Ltd., at its address of record.


   Rebecca L. Dorch

   Regional Director, Western Region

   Enforcement Bureau

   47 C.F.R. S: 11.35.

   Notice of Apparent Liability for Forfeiture, NAL/Acct. No. 200732940005
   (Enf. Bur., Western Region, San Diego Office, released March 21, 2007).

   See Report and Order, Amendment of Part 11of the Commission's Rules
   Regarding the Emergency Alert System, 17 FCC Rcd 4055, 4083 (2002) (the
   Commission will continue to grant waivers of the EAS rules to small cable
   systems on a case-by-case basis upon a showing of financial hardship);
   Request for Waiver of Section 11.11(a) of the Commission's Rules,17 FCC
   Rcd 20108 (EB 2002) (Several cable systems granted 36 month EAS waivers in
   Arizona and New Mexico, until October 2005); Public Notice: EAS Waiver
   Extensions Granted To Very Small Cable Systems, 21 FCC Rcd 7129 (EB 2006)
   (no EAS waivers extensions for any CVC cable systems requested or

   47 U.S.C. S: 503(b).

   47 C.F.R. S: 1.80.

   12 FCC Rcd 17087 (1997), recon. denied, 15 FCC Rcd 303 (1999).

   47 U.S.C. S: 503(b)(2)(E).

   47 C.F.R. S:S: 11.11 and 11.41.

   47 C.F.R. S:S: 11.1 and 11.21.

   47 C.F.R. S: 11.18. State EAS plans contain guidelines that must be
   followed by broadcast and cable personnel, emergency officials and
   National Weather Service personnel to activate the EAS for state and local
   emergency alerts. The state plans include the EAS header codes and
   messages to be transmitted by the primary state, local and relay EAS

   47 C.F.R. S: 11.35(a), (b).

   The required monthly and weekly tests are required to conform to the
   procedures in the EAS Operational Handbook. See also, Amendment of Part 11
   of the Commission's Rules Regarding the Emergency Alert System, 17 FCC Rcd
   4055 (2002).

   See PJB Communications of Virginia, Inc., 7 FCC Rcd 2088 (1992)
   (forfeiture not deemed excessive where it represented approximately 2.02
   percent of the violator's gross revenues).

   47 U.S.C. S: 503(b), 47 C.F.R. S:S: 0.111, 0.311, 1.80(f)(4), 11.35.

   47 U.S.C. S: 504(a).

   See 47 C.F.R. S: 1.1914.

   Federal Communications Commission DA 07-4029



   Federal Communications Commission DA 07-4029