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ATTACHMENT <br />PERFORMANCE INCENTIVES AND DISINCENTIVES <br />Minimum Commercial Diversion Level <br />Contractor shall be assessed a Disincentive Payment if the calculated Commercial <br />Diversion Level in any given Rate Year is less than the arithmetic average of the <br />calculated Commercial Diversion Levels for the five (5) Rate Years prior to the Rate <br />Year under consideration. The disincentive payment for Rate Year Eleven (2021) shall <br />equal seventy dollars ($70.00) per Ton for each Ton under that arithmetic average. In <br />subsequent Rate Years, the per -Ton incentive payment amount shall be adjusted by the <br />Annual Index Change in the CPI -U, which is described in Attachment K. <br />3. COMMERCIAL OR SINGLE-FAMILY MISSED PICK-UP COLLECTION EVENTS <br />Contractor shall be assessed a disincentive payment for the actual number of <br />Commercial or Single -Family Missed Pick -Up Collection Events for Agency that occur <br />during each month. The disincentive payment for Rate Year Eleven (2021) shall equal <br />fifty dollars ($50.00) per Commercial or Single -Family Missed Pick -Up Collection Event. <br />In subsequent Rate Years, the disincentive payment amount shall be adjusted by the <br />Annual Index Change in the CPI -U, which is described in Attachment K. Disincentive <br />payments for Missed Pick -Up Collection Events will be based on the following example: <br />Actual number of Commercial or Single -Family Missed Pick -Up Collection Events = <br />87 <br />Allowable threshold of Commercial or Single -Family Missed Pick -Up Collection <br />Events = 0 <br />Example disincentive payment calculation: 87 x $50 = $4,350 <br />4. AVERAGE SPEED OF ANSWER AT CUSTOMER SERVICE CENTER <br />Exceptionally Fast Average Speed of Answer <br />Contractor shall receive an incentive payment if the actual Average Speed of Answer is <br />less than fifteen (15) seconds each month. The incentive payment for Rate Year Eleven <br />(2021) shall equal five hundred dollars ($500.00) per second for each second below the <br />Average Speed of Answer Standard. In subsequent Rate Years, the incentive payment <br />amount shall be adjusted by the Annual Index Change in the CPI -U, which is described <br />in Attachment K. The incentive payment shall be calculated based on the following <br />example: <br />Actual Average Speed of Answer = 14 seconds <br />Average Speed of Answer Standard = 15 seconds <br />Incentive payment is required if the Actual Average < 15 seconds <br />Example incentive payment calculation: 15 — 14 = 1 second x $500.00 = $500.00 <br />If the actual Average Speed of Answer is equal to or greater than fifteen (15) seconds <br />each month, no incentive payment will be provided. <br />Maximum Average Speed of Answer <br />Contractor shall be assessed a disincentive payment if the Average Speed of Answer is <br />greater than or equal to thirty (30) seconds each month. The disincentive payment for <br />Franchise Agreement for Collection Services with Recology San Mateo County Attachment I <br />City of Redwood City <br />REV: 03-16-18 MI Performance Incentives and Disincentives <br />Page 5 of 8 <br />ATTY/AGR.2018.054/Recology of San Mateo <br />