There may be imposed, in addition to a franchise fee, an annual charge for the administrative costs and expenses incurred by the city in supervision, inspection and examination of such work granted by the permit and done by the grantee or by an independent contractor under the franchise of the grantee. Should actual costs and expenses exceed the amount of such annual fee, the grantee shall be required to reimburse the city for such additional actual costs and expenses incurred by the city over and above the annual charge. Such annual charge shall be due and payable on or before the last day of the year of each successive year of the term of the franchise. Such charge shall be prorated on the number of months of the calendar year during which period the franchise is in effect. (Ord. 5532 § 2, 2004.)