Title
Resolution to Approve Compost Rates for Spring 2008 and Establish Overall Pricing Parameters for Ongoing Compost and Mulch Sales
Memorandum
The attached resolution updates the bulk and general sales price for the city’s processed compost. The city currently provides the following pricing for processed compost at its compost center at the W.R. Wheeler Center:
Finished Compost (screened, cured): $20.00/cubic yard
Finished Compost (10+ cubic yards/load): $15.00/cubic yard
Unfinished (Grade B) Compost (10+ yards only): $10.00/cubic yard
The city’s current rate of $10.00/cubic yard for wood mulch (Ann Arbor resident) and $12.00/ cubic yard (non-resident/business) will remain in effect at the present time.
The proposed new rate for compost, effective April 8, 2008 would be as follows:
Finished Compost (screened, cured): $17.00/cubic yard
Finished Compost (10 -24 cubic yards/load): $12.00/cubic yard
Finished Compost (25+ cubic yards) $10.00/cubic yard
Unfinished (Grade B) Compost (10+ yards): $8.00/cubic yard
A “government rate” discount of 10% would be offered to all public agencies (government, public schools, UM) within each pricing category. The new rates are recommended given the amount of compost now available as a result of the expanded compost facility’s success in attracting private haulers to the site in the last year, Ann Arbor’s pricing relative to other regional facilities (see attachment) and a perceived reduction in demand for finished compost given current economic conditions, particularly in the construction and landscaping sectors. Current estimates indicate approximately 7,000 cubic yards of compost material being available as of April 1, 2008 compared to the usual 4,000 cubic yards in past years.
In addition to setting initial pricing for April 2008, the resolution also provides staff with flexibility in setting pricing for compost in the future. This flexibility is recommended to allow for timely adjustments to the pricing struc...
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