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5 <br />shall be kept free from the accumulation of debris and waste materials. All exterior <br />painted surfaces shall be maintained at all times in a clean and presentable manner, free <br />from chipping, cracking, peeling and defacing marks. All broken lights shall be <br />immediately repaired in order to prevent hazardous conditions and/or invitation for <br />trespassers and malicious mischief. Except during periods of construction, no lumber, <br />trash, discarded equipment or other debris shall be stored in areas visible from the <br />street. <br />C. Graffiti Removal. All graffiti and defacement of any type, including marks, words and <br />pictures must be removed and any necessary painting or repair completed within 24 <br />hours of the OPERATOR becoming aware of the graffiti or the CITY reporting the graffiti <br />to the OPEARTOR. <br />D.Design of potential graffiti-attracting surfaces. OPERATOR shall design the billboards and <br />all associated structures visible from any public or quasi-public place is such a manner to <br />consider prevention of graffiti in accordance with the Santa Ana Municipal Code section <br />41-638.2(b) as the same may be amended from time-to-time hereafter. <br />E. Non-Operation and Removal. OPERATOR shall promptly repair the billboards in the <br />event of damage, defect or other cause so as to maintain operations in accordance with <br />this AGREEMENT. In the event that OPERATOR anticipates that a repair will require <br />more than 30 days to complete, OPERATOR shall notify City in writing of the anticipated <br />schedule and the cause of the delayed repair. <br />4. Operating Fee Rates for Billboards; Payment. <br />OPERATOR shall pay billboard operating fees to CITY as follows: <br />A.OPERATOR shall pay CITY an annual operating fee, which shall be the greater of the <br />Revenue Share generated from the Advertising Inventory or the minimum annual <br />guarantee (“MAG”). The Revenue Share is defined as 30 percent of the Net Advertising <br />Revenue. Net Advertising Revenue is defined as gross revenue received from the sale <br />of Advertising Inventory, less bad debt only (not to exceed two percent of gross <br />revenue). The minimum annual fee shall be no less than $90,000 per face of the digital <br />billboard being constructed, subject to three percent increases annually on the <br />anniversary month of the Commencement Date. <br />B. The annual operating fee shall be paid in equal monthly installments (the “Monthly <br />Operating Fee”), due on the first day of the month in which the Commencement Date <br />occurs. When the first day of the month falls on a City Holiday or City Hall Closure Day, <br />then the reporting/remittance date shall fall on the next City business day following. The <br />Monthly Operating Fee shall be acknowledged and agreed by CITY to be paid timely if <br />paid on said date. When reporting/remitting is made by mail, the postmark date shall <br />serve as proof of timely reporting/remittance. <br />C.OPERATOR shall not add any ancillary use to the new digital billboard and shall not <br />derive any ancillary revenue from the Subject Property other than advertising revenue <br />unless agreed to in writing and approved by the City. Any approved ancillary revenue <br />shall be referred to as Approved Ancillary Revenue. The terms of any Approved Ancillary