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5. 6. ATTACHMENT PERFORMANCE INCENTIVES AND DISINCENTIVES Rate Year Eleven (2021) shall equal five hundred dollars ($500.00) per second for each second greater than or equal to the Average Speed of Answer Standard. In subsequent Rate Years, the disincentive payment amount shall be adjusted by the Annual Index Change in the CPI -U, which is described in Attachment K. If Contractor fails to achieve the maximum Average Speed of Answer, the Agency shall assess a disincentive payment based on the following example: Actual Average Speed of Answer- 47 seconds Average Speed of Answer Standard = 30 seconds Disincentive payment is required if the Actual Average > 30 seconds Example disincentive payment calculation: 47 - 30 = 17 seconds x $500.00 = $8,500 If the actual Average Speed of Answer is equal to or greater than fifteen (15) seconds and less than thirty (30) seconds each month, neither incentives or disincentives shall be applied. NINETY SECOND (90) MAXIMUM HOLD TIME The maximum Hold Time shall be ninety (90) seconds. A disincentive payment shall apply if the percentage of calls exceeding this ninety (90) second threshold in a given quarter exceeds five percent (5%) of the calls received in that quarter. Quarters shall be calendar quarters (e.g., the first quarter of the Rate Year includes January, February, and March). The disincentive payment for Rate Year Eleven (2021) shall equal five dollars ($5.00) per call above the ninety (90) second Hold Time in a given quarter that exceeds five percent (5%) of the calls received in that quarter. In subsequent Rate Years, the disincentive payment amount shall be adjusted by the Annual Index Change in the CPI -U, which is described in Attachment K. If Contractor fails to achieve this performance standard, the Agency shall assess a disincentive payment based on the following example: Total number of calls received in quarter = 19,380 5% of total number of calls received in quarter = 19,380 x 0.05 = 969 Actual number of calls in quarter exceeding 90 second Hold Time = 1,281 Number of calls exceeding 90 second Hold Time in excess of 5% threshold = 1,281 - 969 = 312 Example disincentive payment calculation: 312 x $5.00 = $1,560 INCENTIVE/DISINCENTIVE PAYMENT PROCEDURES A. Record Keeping. In accordance with Article 9, records shall be maintained by Contractor for Agency in a manner that adequately demonstrates and documents Contractor's performance in accordance with this Agreement. The records shall be sufficient for Agency and SBWMA to determine Contractor's compliance with the specified performance standards. B. Determination of Achievement of Performance Standards. In accordance with the requirements of Sections 9.06, 9.07, and 11.07.E, Contractor shall provide with its quarterly and annual reports, a report that identifies compliance with the Franchise Agreement for Collection Services with Recology San Mateo County City of Redwood City REV: 03-16-18 MI ATTY/AGR.2018.054/Recology of San Mateo Attachment I Performance Incentives and Disincentives Page 6 of 8