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11/04/2013 ATTACHMENT I PERFORMANCE INCENTIVES AND DISINCENTIVES Performance incentives (in the form of increased compensation to Contractor) will be awarded for excellent performance on aspects of Solid Waste diversion, Collection service delivery and Customer service as specified in this Attachment. Any performance incentive for achieving or surpassing the performance standards specified herein shall be added to Contractor's Compensation during the Rate Year immediately following the calculation and award of the performance incentive. Performance disincentives will be assessed for substandard performance on aspects of Solid Waste diversion, Source Separated and Targeted Recyclable Materials contamination, Organic Materials contamination, Plant Materials contamination, Collection service delivery and Customer service as specified in this Attachment. Any performance disincentives for performance falling below standards as specified herein shall be subtracted from Contractor's Compensation during the Rate Year immediately fo�lowing the calculation and assessment of the performance disincentive, with the exception of Contamination related disincentives which shall be paid by Contractor quarterly. The performance incentives and disincentives contained herein will commence after full implementation of the roll-out of new services to Agency, with the exception of Contamination disincentives for Single-Family Targeted Recyclable Materials, which will commence after the first six (6) months of Rate Year One (2011). Agency may defer imposing some standards until after the first six (6) months of the roll-out of new services. 1. GENERAL Agency shall provide an incentive payment to Contractor for exceeding the following It#�ee-E3}two 2 performance standards: • Overall Diversion Level � • Average Speed of Answer Agency shall assess a disincentive payment to Contractor for not meeting the following I °'°��ten 10 performance standards: • Minimum Single-Family Diversion Level • Minimum Commercial Diversion Level • Maximum Contamination Level—Single-Family Targeted Recyclable Materials • Maximum Contamination Level—Single-Family Organic Materials � Maximum Contamination Level — Commercial Source Separated and Targeted Recyclable Materials • Maximum Contamination Level—Commercial Organic Materials • Maximum Contamination Level— MFD and Commercial Plant Materials I • Single-Family Missed Pick-Up Collection Events • Average Speed of Answer • Ninety (90) Second Maximum Hold Time Table 1 provides a summary of the incentives and disincentives, which are described in detail in Sections 2 - 7 of this Attachment. Section 8 of this Attachment describes the incentive and disincentive payment procedures. z RESO.#15303 MUFF#01