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• • <br /> ATTACHMENT I <br /> PERFORMANCE INCENTIVES AND DISINCENTIVES <br /> Exceptional Diversion Level Performance <br /> For Rate Years Two (2012) through Ten (2020) Contractor shall receive an incentive <br /> payment if the calculated Overall Diversion Level achieved by Contractor in any given <br /> Rate Year exceeds (i) the highest calculated Overall Diversion Level achieved by <br /> Contractor in a prior Rate Year during the Term or (ii) the Overall Diversion Level <br /> achieved by Previous Contractor in 2010 which shall include all Recyclable Materials <br /> Collected by Contractor during the Recycling Blitz. <br /> For example: <br /> • If the Previous Contractor achieves an Overall Diversion Level of 36.45% <br /> (including all Recyclable Materials Collected by Contractor during the Recycling <br /> Blitz) in 2010 and Contractor achieves an Overall Diversion Level of 35.58% in <br /> Rate Year One, the Contractor must achieve an Overall Diversion Level greater <br /> than 36.45% in any given Rate Year to receive an incentive payment. <br /> • If Contractor achieves Overall Diversion Levels for Rate Years Two, Three, Four <br /> and Five of 37.66 %, 38.59 %, 38.38% and 37.64 %, respectively, Contractor shall <br /> receive an incentive payment for Rate Year Three only and the Overall Diversion <br /> Level that must be exceeded is 38.59% in future Rate Years, unless a higher <br /> Overall Diversion Level is achieved. <br /> The targeted Overall Diversion Level shall be calculated based on the methodology used <br /> in the following example: <br /> Example assumptions (actual results will be based on Contractor performance): <br /> Franchise Agreement for Collection Services with Recology San Mateo County Attachment I <br /> Redwood City Performance Incentives and Disincentives <br /> Page 5 of 13 <br />