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C. Graffiti Removal. All graffiti and defacement of any type, including marks, words and pictures must be removed and any necessary painting or repair completed within 24 hours of the OPERATOR becoming aware of the graffiti or the CITY reporting the graffiti to the OPEARTOR. D. Design of potential graffiti -attracting surfaces. OPERATOR shall design the billboard and all associated structures visible from any public: or quasi -public place is such a manner to consider prevention of graffiti in accordance with the Santa Ana Municipal Code section 41-638.2(b) as the same may be amended from time -to -time hereafter. E. Non -Operation and Removal. ¢:OPERATOR shall promptly repair the billboard in the event of damage, defect or other cause so as to maintain operations in accordance with this AGREEMENT. In the event that OPERATOR anticipates that a repair will require more than 30 days to complete, OPERATOR shall notify City in writing of the anticipated schedule and the cause of the delayed repair. 4. Operating Fee Bates for IIlboard: Payment. OPERATOR shall pay billboard operating fees to CITY as follows: A. OPERATOR shall pay CITY a total annual operating fee for the entire digital billboard as follows: term year one (1) $30,000.00, term year two (2) $45,000.00, term year three (3) $60,000.00, term year four (4) $75,000.00, term year five (5) $90,000.00. After term year five, the annual operating fee shall only increase by three percent (3%) annually on the anniversary month of the Commencement Date. See Exhibit A: Annual Payment Schedule. B. OPERATOR shall increase their remitted gross sales tax to the CITY each calendar year by five percent (5%) over the previous year's remitted gross sales tax ("Annual Sales Tax Increase") commencing January 1, 2024. In the event that OPERATOR is unable to achieve the Annual Sales Tax Increase through regular business operations, OPERATOR must remit to CITY the difference in actual remittance versus required remittance through one (1) annual monetary payrnent ("Sales Tax Shortage Payment"). By way of example, if OPERATOR's Annual Sales Tax Increase equated to a gross sales tax remittance total of $5,000.00, but at the end of the subject year OPERATOR increased remitted gross sales tax by $4,500.00, OPERATOR would owe CITY a Sales Tax Shortage Payment of $500.00 within sixty (60) days of notice from CITY of Sales Tax Shortage Payment activation. OPERATOR shall be solely responsible for monitoring annual gross sales and the potential for a gross sales tax remittance: shortfall. OPERATOR is to notify CITY no less than thirty (30) days before the end of the calendar year of any potential shortfall. CITY shall then be solely responsible for auditing gross sales tax remittance from OPERATOR for the year and must notify OPERATOR of Sales Tax Shortage Payment requirement with amount due priorto OPERATOR payment (which shall be remitted within sixty (60) days of notice). The base remitted gross sales tax threshold that shall govern year one (1) of this AGREEMENT shall be averaged from the last five (5) years of documented CITY received gross sales tax from OPERATOR (2019, 2020, 2021, 2022, 2023). See Exhibit B: Gross Taxes Received from Operator. For the avoidance of confusion, if in any term year OPERATOR must remit a Sales Tax Shortage Payment,