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ATTY/RESO.0108/CC RESO APPROVING AMENDMENT NO. 2 TO RECOLOGY SAN MATEO FRANCHISE AGREEMENT – EXHIBIT B REV: 11-04-25 MI Page 8 of 11 “Customer. “Customer” means the Person to whom Contractor submits billing invoices for Collection Services provided to a Premises. The Customer may be the Occupant or Owner of the Premises provided that the Owner of the Premises shall be responsible for payment of Collection services if an Occupant of the Premises fails to make such payment.” “Gross Revenue Billed. “Gross Revenue Billed” means the total revenue recognized per generally accepted accounting principles by the Contractor for all services provided to Customers during the Rate Year in question.” “Rates. “Rates” means the monetary amounts, established by Contractor, to be charged to a Customer by Contractor for providing Collection of Solid Waste, Recyclable Materials, Organic Materials, and other materials.” “Maximum Rates. “Maximum Rates” or “Maximum Charges” means the highest Rates or Charges, respectively, that Contractor may charge Customers for a particular service, as determined in accordance with this Agreement.” “Revenue Requirement. “Revenue Requirement” means the total projected amount of revenue that must be included in determination of Contractor’s Maximum Rates to cover all costs associated with Contractor’s Compensation, Contractor Pass-Through Costs, and Other Pass- Through Costs for a Rate Year.” 5. MISCELLANEOUS 5.1 Cooperation. The parties shall cooperate in good faith to transition billing responsibilities from Agency to Contractor. Agency shall provide Contractor with complete and accurate account information, both current and historical, for all customers that Agency billed prior to the transition, so that Contractor will be better able to address customer needs. 5.2 Performance Disincentives. The parties anticipate that the transition from billing by Agency to billing by Contractor will result in increased call volume to Contractor, which may result in Contractor being assessed Performance Disincentives under the Agreement and related Agreements with other SBWMA Member Agencies, for Average Speed of Answer and Ninety (90) Second Maximum Hold Time. Agency agrees to waive its share of any such Performance Disincentives that may be assessed against Contractor for the months of January- June 2026. 5.3 Conforming Changes. The following changes shall be made to other sections of the Agreement (besides those expressly amended as set forth in this Amendment Two): a) All references to “Agency-approved Rates” or “Agency-approved Charges” shall be deemed changed to “Agency-approved Maximum Rates” or “Agency-approved Maximum Charges,” respectively. b) All references to Agency billing Customers shall be deemed modified to refer to Contractor billing Customers.