Minimum Diversion Requirement Clause Samples

Minimum Diversion Requirement. Contractor shall achieve a minimum guaranteed diversion rate, calculated on an annual basis as of the end of each calendar year. The minimum guaranteed diversion rate shall be forty eight percent (48%). Contractor shall achieve the minimum diversion rate by December 31, 2016 and each calendar year thereafter during the Term. The minimum annual diversion rate shall be calculated as “the tons of materials Collected by Contractor pursuant to this Agreement that are sold or delivered to a processing facility, composting facility, recycler or re-user, net of all residue, as required by this Agreement, divided by the total tons of materials Collected under this Agreement by Contractor in each calendar year. Upon the request of either party, not more often than once every two (2) years, the parties agree to meet and confer, and negotiate in good faith, regarding adjustments to the minimum guaranteed diversion rate, based on waste characterization data provided by Contractor, trends in source reduction, the availability of permitted facilities that are capable of processing material to achieve the required levels of diversion, the availability of markets, transportation constraints, embargoes, and the impact of scavenging. In addition, Contractor agrees to meet with the City’ Environmental Commission twice annually to review the above information, and to confer and obtain guidance with respect to resolving challenges to maximizing diversion and opportunities to enhance diversion programs. Upon the request of the City to increase the minimum guaranteed diversion rate, the parties agree to negotiate in good faith regarding the additional programs and activities required to achieve the increased diversion percentage, and an adjustment to the rates.