Title
Resolution to Approve Compost Rates and to Establish Administrative Guidelines for Future Compost Rate Changes
Memorandum
The attached resolution establishes new compost rates effective March 1, 2009, and also establishes guidelines to allow the City Administrator to make compost rate changes in the future. During the past year, the market pricing for compost has decreased substantially due to the weakened economy. For example, Southeast Oakland County Resource Recovery Authority has lowered their compost pricing from $7 per cubic yard in 2008 to $3 per cubic yard in 2009 (minimum $15) for loaded material, or free for those who shovel.
At the same time, the city’s compost facility has produced a larger quantity of finished compost than in the past. As the result of this, the city currently has an estimated 10,000 to 15,000 cubic yards of surplus finished compost that did not sell last year. If this material is not removed from the site by mid-2009, it may hamper compost processing efforts, particularly in the fall of 2009. The MDEQ is enforcing new rules that limit the time compost can sit on a site. Compost that has remained static too long loses a significant portion of its nutrient value.
In an effort to gauge the wholesale market for this material, the city issued Invitation to Bid 3986 requesting pricing for 1,000 cubic yards or more, with pickup of the material due by March 31, 2009. This bid was sent to approximately 100 landscape suppliers in the area. Two responses were received on December 12, 2008:
• Environmental Reclamation: $1 .00/ton for 5,000 tons (approx. $50/cubic yard)
• Lodi Farms: $2.75/cubic yard for 1,000 cubic yards
Discussions after the bid with Environmental Reclamation indicated a willingness to pay a higher price if they were able to pick up the material after March 31st. Staff re-bid the remaining compost materials under ITB 3991 with a later pick up date and no bids were received at the January 6, 2009, opening.
The Cit...
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