Agmt10 Recology San Mateo County

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• • ATTACHMENT I PERFORMANCE INCENTIVES AND DISINCENTIVES Materials Tons Collected by Contractor during the Recycling Blitz or (ii) the Single - Family Diversion Level achieved by Contractor in Rate Year One (2011). For example: • If the Previous Contractor achieves a Single- Family Diversion Level of 44.45% in 2010 and Contractor's calculated Single - Family Diversion Level is 43.85% in Rate Year One (2011), Contractor shall be assessed a disincentive payment for Rate Year One. • If the Previous Contractor achieves a Single - Family Diversion Level of 44.45% in 2010 and Contractor achieves calculated Single - Family Diversion Levels of 46.85% in Rate Year One and 45.54% in Rate Year Two, the targeted Single - Family Diversion Level for Rate Years Three (2013) through Ten (2020) shall be 46.85 %. Minimum Commercial Diversion Level For Rate Years One (2011) through Ten (2020), Contractor shall be assessed a Disincentive Payment if the calculated Commercial Diversion Level is less than the targeted (minimum) Commercial Diversion Level. The minimum Commercial Diversion Level for Rate Year One (2011) shall equal the calculated Commercial Diversion Level achieved by the Previous Contractor in 2010 including all Recyclable Materials Tons Collected by Contractor during the Recycling Blitz. The minimum Commercial Diversion Level for Rate Year Two (2012) through Rate Year Ten (2020) shall equal the higher of the following: (i) the Commercial Diversion Level achieved by Previous Contractor in 2010 including all Recyclable Materials Tons Collected by Contractor during the Recycling Blitz or (ii) the Commercial Diversion Level achieved by Contractor in Rate Year One (2011). For example: • If the Previous Contractor achieves a Commercial Diversion Level of 21.35% in 2010 and the Commercial Recyclable Materials Tons Collected by Contractor during the Recycling Blitz increases this Diversion level to 26.35% and Contractor's calculated Commercial Diversion Level is 25.85% in Rate Year One, Contractor shall be assessed a disincentive payment for Rate Year One. • If the Previous Contractor's activities in 2010 and Contractor's Recycling Blitz activities combined achieve a Commercial Diversion Level of 26.35% in 2010 and Contractor achieves calculated Commercial Diversion Levels of 27.13% in Rate Year One and 25.38% in Rate Year Two, the targeted Single - Family Diversion Level for Rate Years Three through Nine shall be 27.13 %. Franchise Agreement for Collection Services with Recology San Mateo County Attachment I Redwood City Performance Incentives and Disincentives Page 7 of 13