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Gerry Beaudin December 4, 2025 Page 2 of 4 meeting has concluded. These notes will serve as the basis for the amendment of the franchise agreement and will include: policy and process information; desired business terms; core, ancillary, or other services to be included; and a negotiations schedule. In addition to the kick-off meeting, HF&H will facilitate bi-weekly, 30-minute alignment meetings with the City. These meetings will be held throughout the negotiation period in order to maintain close coordination on key decisions, progress updates, and emerging considerations. This task also encompasses ongoing project management hours that will be used by HF&H to support effective collaboration, timely communication, and adherence to the agreed-upon schedule. Task 2 – Develop List of City’s Desired Services and Terms Following the project initiation meetings, HF&H will develop a term sheet that includes a list of the City’s desired services and terms. HF&H will meet with City staff during an alignment meeting to review and discuss any required updates and provide one (1) round of revisions. Through our extensive experience negotiating agreements, we have found that using a term sheet to achieve material agreement between parties on key deal points prevents significant redrafting of the franchise agreement later in the process. Task 3 – Meetings with Franchisee to Confirm Services and Terms Following the completion of Task 2, the term sheet will be distributed to the City’s franchisee for review. We have budgeted for a two-hour, in-person meeting with the franchisee. We have also included time for a one-hour internal prep meeting prior to each franchisee meeting and for preparation of meeting notes following the franchisee meeting. Task 4 – Franchise Negotiations and Draft Agreement Amendment HF&H will assist the City in the development of a restated franchise agreement that reflects legislative requirements, relevant best practices, and other City priorities. We have built time into Tasks one through three for working closely with the City and the franchisee to identify and adapt the service specifications to industry trends and developments that have occurred since the current agreements were developed. HF&H has an extensive library of franchise agreements throughout California to draw upon when preparing language encompassing performance standards, service options, diversion programs, and reporting processes. We will provide options for the City to consider, which will maximize both the efficiency of the process and the quality of the agreement. Based on prior tasks, HF&H will prepare a draft restated franchise agreement for the desired services. City staff, including the City Attorney, will subsequently review the draft agreement. We request that City staff make changes directly in a strike-and-replace format using Microsoft Word, which HF&H will then use to prepare an updated draft agreement. After City staff submits the redlined draft franchise agreement and their comments to HF&H, we will update the draft restated franchise agreement and subsequently distribute it to the franchisee(s) for their review and input. HF&H will then coordinate bi-monthly meetings during the first three months and monthly meetings during the final three months of the negotiation period, each meeting lasting two hours. These meetings will include both City staff and the franchisee and will be used to negotiate the terms of the agreement. HF&H will allocate the Docusign Envelope ID: D0CB4BF3-FEDC-4F7D-95C4-0EB4DA05C18D