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ATTACHMENTI PERFORMANCE INCENTIVES AND DISINCENTIVES performance standards listed in this Attachment and calculation of the performance incentive payments and disincentive assessments due. Performance incentives and disincentives for Overall Diversion Level, minimum Single -Family Diversion Level, minimum Commercial Diversion Level, Average Speed of Answer, and ninety (90) second maximum Hold Time shall be calculated in aggregate for the SBWMA Service Area and Agency's share shall be proportional based on the Tons of Solid Waste Collected in the previous Rate Year by Contractor. Performance disincentives for Single -Family Missed Pick -Up Collection Events shall be calculated separately for each Agency. The incentives and disincentives that will be calculated monthly include: • Commercial or Single -Family Missed Pick -Up Collection Events • Average Speed of Answer • Ninety (90) Second Maximum Hold Time The incentives and disincentives that will be calculated annually include: • Overall Diversion Level • Minimum Single Family Diversion • Minimum Commercial Diversion Level C. Amount. The incentive and disincentive payment amounts shall be determined in accordance with the formulas presented in Sections 2 through 5 of this Attachment I. Notwithstanding any other provision of this Agreement, except for Commercial or Single -Family Missed Pick -Up Collection Events, on an annual basis, the maximum disincentive payments by Contractor shall not exceed one hundred thousand dollars ($100,000) in total for all Member Agencies, and the maximum incentive payments to Contractor shall not exceed one hundred thousand dollars ($100,000) in total for all Member Agencies. D. Timing of Payment. Payments related to performance incentives and disincentives that are calculated monthly and annually are to be included in Contractor's annual Application for adjustment to Contractor's Compensation. Contractor's Compensation for the next Rate Year will be increased or decreased by the net amount of performance incentive payments and disincentive assessments calculated. If performance incentive or disincentives payments are due for performance in the last two (2) Rate Years, the amount shall not be reflected in an adjustment to Contractor's Compensation. Instead, payments shall be made directly by the Agency to the Contractor for incentive payments or directly by the Contractor to the Agency for disincentive payments. Such payments shall be made within thirty (30) days of the determination of the amount due. The SBWMA will review Contractor's calculations of incentives and disincentive payments and underlying data for accuracy, will confer with Member Agencies to confirm data as to each Member Agency, and will meet with Contractor to resolve any errors or inconsistencies. E. Disputes by Contractor. Contractor may, within ten (10) calendar days after receiving the Agency's or SBWMA's written notice containing Agency's or SBWMA's Franchise Agreement for Collection Services with Recology San Mateo County Attachment I City of Redwood City REV: 03-16-18 MI Performance Incentives and Disincentives Page 7 of 8 ATTY/AGR.2018.054/Recology of San Mateo