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3. GENERAL REQUIREMENTS <br /> <br /> 3.1 Governing Requirements. Grantee shall comply with the <br /> requirements of this Agreement and Ordinance No. 1224 . <br /> <br /> 3.2 Franchise Fee. The Grantee shall pay to the Grantor an <br /> annual franchise fee of five percent (5%) of Gross Annual <br /> Receipts. <br /> <br /> 3.3 Recover~; .o.f Fran. chi.se Cost, s. <br /> <br /> (a) As provided for in Ordinance No. 1224 , Grantee, <br />within sixty (60) days after receipt from Grantor of a written <br />itemization, shall reimburse Grantor for its reasonable costs <br />incurred during the franchise renewal process, not to exceed <br />$22,000. <br /> <br /> (b) As necessary to aid in the analysis of all future <br />disputed matters relative to the franchise, the Grantor or the <br />Grantee in cooperation with the other, shall be entitled to employ <br />the services of technical, financial, or legal consultants. All <br />reasonable fees of the consultants incurred by the Grantor or the <br />Grantee in this regard shall be equally borne by the Grantee and <br />the Grantor, regardless of the outcome of any specific dispute <br />under consideration. An uppor cost limit will be established by <br />the Grantor and Grantee prior to retainin~ any consultant under <br />this subsection. <br /> <br /> 3.4 Payment to Grantor. No acceptance of any payment shall <br />be construed as an accord that the amount paid is in fact the <br />correct amount, nor shall such acceptance of payment be construed <br />as a release of any claim that Grantor may have for further or <br />additional sums payable under the provisions of this Agreement. <br />All amounts paid shall be subject to audit and recomputation by the <br />Grantor. The Grantor shall notify the Grantee, in writing, at <br />least thirty (30) days in advance of any intent to audit and <br />recompute. <br /> <br /> 3.5 Liability Insurance and Indemnifiqation. Upon the <br />effective date of 'the franchise, Grantee shall furnish proof that <br />satisfactory liability insurance policies are in force, in the <br />minimum amounts of: <br /> <br /> ° Worker's Co~mpensation -- as required by the <br /> State of California. <br /> <br /> °C. omprehensive General Liability -- <br /> $1,000,000 Rer occurrence. <br /> <br /> ° Comprehensive Automobile Lia·bility -- <br /> $1,000,000 pier occurrence. <br /> <br /> The liability insurance policies shall be maintained <br />throughout the duration of this franchise, with a copy filed with <br /> <br /> <br />