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• • <br /> ATTACHMENT K <br /> CONTRACTOR'S COMPENSATION AND RATE SETTING PROCESS <br /> 10. Performance Incentives and Disincentives for Contractor's <br /> Performance <br /> Contractor performance will be monitored against established and quantifiable standards in <br /> the areas of Diversion, Collection Performance, and Customer Service. Incentives have been <br /> designed to reward Contractor for outstanding levels of performance with regard to Diversion, <br /> Number of Missed Pick -Up Initial Complaints, and Average Hold Time for customer service <br /> calls. Disincentives (in the form of reduced compensation to Contractor) may be assessed <br /> for substandard performance related to: diversion level attained (i.e., Single - Family and <br /> Commercial sectors), Contamination Level (i.e., Targeted Recyclable Materials, Residential <br /> and Commercial Organic Materials, and Commercial Plant Materials), Missed Pick -Up Initial <br /> Complaints, Missed Pick -Up Collection Events, Average Hold Time, and Calls Answered in <br /> Ninety (90) Seconds. <br /> The Performance Incentives and Disincentives are detailed in Attachment I. Payment related <br /> to Performance Incentives and Disincentives shall be included in Contractor's Application, with <br /> the exception of Disincentive assessments pertaining to Contamination which are calculated <br /> and paid to SBWMA quarterly. Contractor's Compensation for the next Rate Year will be <br /> increased or decreased by the net amount of Performance Incentive payments and <br /> Disincentive assessments calculated. <br /> 11. Rate Setting <br /> Member Agencies shall review their collection rates annually (or as frequently as they <br /> determine necessary) and adjust them in amount and with an effective date sufficient to <br /> achieve the Revenue Requirement projected for that year in the SBWMA report. The Revenue <br /> Requirement consists of: (i) their allocated portion of Contractor's Compensation; (ii) an <br /> adjustment to reflect a revenue shortfall or surplus for the prior Rate Year; (iii) Pass - Through <br /> Costs including, but not limited to, Franchise Fees and payments to SBWMA for processing <br /> and disposal; and (iv) Performance Incentive and Disincentive payments due, if any. <br /> Collection Services Franchise Agreement with Recology San Mateo County Attachment K <br /> City of Redwood City Contractor's Compensation and Rate Setting Process <br /> Page 26 of 26 <br />