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alcohol or tobacco products. Franchisees shall not display advertising relating to contraception, pornography, politics or religion. Franchisees shall remove within forty- eight (48) hours after their receipt of the City's written notification requesting such removal, any advertisements which the City in its reasonable discretion deems to be offensive to the Community, or in conflict with the City's health, safety and welfare concerns. In the event that a franchisee fails to remove such advertisements within such fOliy-eight (48) hour period, the City may remove the materials at the franchisee's sole cost and expense. Section 13. Locations. Location of Transit Shelters: A franchisee shall erect transit shelters at those locations that are mutually agreed upon by the City and the franchisee, but only after a permit is approved by the Public Works Director.:. us per Section 703.05 of the City Code. The public works director shall determine the location of shelters based on need, and so as to assure that shelters do not unnecessarily impede pedestrian traffic, or line of sight and traffic safety. All transit shelters shall be erected on public rights-of-way, or private property with written authorization from the property owner(s), and shall be subject to all rules, regulations and ordinances governing the use of such rights-of-way. Prior to erecting any such shelters at any locations, the franchisee shall secure any necessary approval and/or zoning variance that may be required from any governmental entity. The Public Works and Transportation Commission will review site applications of the franchisee and hold a hearing for public input regarding proposed locations. Section 14. Alteration of Services. In the event that the City desires at any time to alter or change the nature or character of the services to be provided by the franchisee and such alteration or change materially increases the costs and expenses to be incurred by the franchisee or materially reduces the advertising revenues that can be generated by the franchisee, such alterations or changes shall not be effective until the City and the franchisee have mutually agreed to and executed an amendment to this Franchise Ordinance, which amendment may include an adjustment to the City's fee under Section 15 hereof. Section 15. Fee for Franchise-Minimum Fee. In consideration of the award of the franchise by the City, fi-anchisees shall pay the City a fee based upon the annual gross revenue collected that the franchisee derives from advertising on shelters located within the City in accordance with the terms of the ordinance granting the franchise and as follows: Payments and a quarterly report on operations and revenue shall be made thirty (30) days after the close of each quarter of the year. The "gross revenue" as used 5