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424 Operating Cost 425 "Operating Cost" or "Cost of Operations" means those costs actually incurred by Contractor, 426 reasonably necessary to perform under this Agreement, and not otherwise specifically excluded 427 in this Agreement. 428 Operating Ratio 429 "Operating Ratio" means a factor used in the calculation of profit. Contractor's profit is 430 determined by applying the Operating Ratio of ninety and one-half percent (90.5%) to total 431 annual Costs of Operation described in Attachment K. 432 Operator 433 "Operator" means the company contracted by the SBW MA to operate the Designated Transfer 434 and Processing Facility. 435 Organic Materials 436 "Organic Materials" means those materials that will decompose and/or putrefy and that the 437 Agency permits, directs, or requires Generators to separate from Solid Waste and Targeted 438 Recyclable Materials for Collection in specially designated Containers for Organic Materials 439 Collection. Organic Materials include Plant Materials, Food Scraps, paper contaminated with 440 Food Scraps, biodegradable plastic food service ware, pieces of unpainted and untreated wood, 441 and pieces of unpainted and untreated wallboard. No Discarded Material shall be considered 442 Organic Materials, unless such material is separated from Solid Waste and Targeted Recyclable 443 Material. 444 Other Pass -Through Costs 445 "Other Pass -Through Costs" means Member Agency Franchise Fees and other fees which are 446 paid to each Member Agency, and fees paid by Contractor to SBWMA for processing and 447 Disposal (including transfer) of materials delivered by Contractor to the Designated Transfer and 448 Processing Facility. 449 Other Recyclable Material 450 "Other Recyclable Material" means a subset of Recyclable Materials that are Collected which 451 include, but are not limited to: Household Batteries, Cell Phones, Used Motor Oil, Used Motor 452 Oil Filters, Bulky Items that are Recycled, Major Appliances, E -Scrap, and U -Waste. The 453 purpose of differentiating Other Recyclable Material is to describe a category used to calculate 454 the Overall Diversion Level as specified in Attachment I. 455 Overage 456 "Overage" means the amount of Solid Waste placed in or adjacent to a Collection Container that 457 is in excess of the Container capacity. 458 Overall Diversion Level 459 "Overall Diversion Level" means the sum of all Recyclable Materials Collected by Contractor 460 divided by the sum of all materials Collected by Contractor in a Rate Year. For the purposes of 461 this definition, Recyclable Materials Collected shall include the sum of Targeted Recyclable 462 Materials, Other Recyclable Materials, and Organic Materials Collected, without adjusting for 463 Contamination. Franchise Agreement for Collection Services with Recology San Mateo County Attachment A City of Redwood City Definitions REV: 03-16-18 MI Page 12 of 18 ATTY/AGR.2018.054/Recology of San Mateo