Commercial Organics Clause Samples

Commercial Organics. The minimum amount of Organic Materials to be collected from commercial customers and processed into compost is 9,000 Tons per year. If Contractor does not collect and process into compost 9,000 Tons in Year One, it will pay City $70 per Ton, multiplied by the difference between 9,000 Tons and the number of Tons actually collected and composted. If Contractor collects and composts more than 9,000 Tons in Year One, City will pay Contractor $70 per Ton, multiplied by the difference between the number of Tons actually collected and composted and 9,000 Tons. The number of Tons which Contractor has collected and processed into compost will be determined by multiplying the Tons of Organic Materials collected in the City and delivered to the Greenwaste Materials Recovery Facility (net weight at gate scale) prior to transfer to the Z Best composting facility by the percentage that reflects the City-specific composting rate achieved at the Z Best composting facility based on the audits required by Attachment E, Section B.2.c. For example, the percentage to be used for Year Two will be based on the City-specific composting rate achieved during FY 2010-11, as shown by the audits conducted during FY 2010-11. The percentage to be used for Year One (FY 2009-10) will be ninety percent (90%). The $70 per Ton payment will be adjusted in Year Two and thereafter by the same percentage that the labor-related cost component of Contractor’s Compensation is adjusted per Attachment N-2. The maximum payment to Contractor pursuant to this subsection C is $140,000 per year in Year One. This maximum payment amount will also be adjusted annually by the same percentage that the $70 per Ton payment is adjusted.