Fertilizer and Soil Amendments for Sustainable Agriculture 6000 East Side Potter Valley Road, Ukiah, CA 95482
(707) 485-5966 - www.coldcreekcompost.com
October 14, 2022
Fort Bragg City Council
City of Fort Bragg
416 North Franklin Street
Fort Bragg, CA 95437
Subject: Cold Creek Compost - Request for Increased Tip Fee Dear City Council and Staff,
This letter follows up on our June 27, 2022 telephone conversation and July 1, 2022 letter. This is to provide additional details regarding the need to increase our tip fee from $38.58 to $60.00 per ton effective November 1, 2022.
As discussed, a perfect storm of events including the drought, inflation, fuel prices, and impacts to the cannabis industry has put Cold Creek Compost in a dire financial situation. Drought, for example, has increased our annual cost of water hauling by approximately $90,000 and negatively impacted all product sales. Increased fuel costs directly increase our operating costs by an estimated $150,000 annually. Additionally, fuel costs impact trucking of incoming and outgoing materials, hindering our sales and raising the cost of everything we use. The plastics industry has seen prices triple, which alone increases our operating costs by $60,000 annually.
The largest impact comes from the cannabis industry, which has seen a 80% drop in sales, equivalent to $1.6 million in annual revenue. These are some, but not all, of the changes Cold Creek Compost is struggling to adapt to. The graphs below highlight the financial challenges we are facing.
Fertilizer and Soil Amendments for Sustainable Agriculture 6000 East Side Potter Valley Road, Ukiah, CA 95482
(707) 485-5966 - www.coldcreekcompost.com
While we recognize that we are asking for a large tip fee increase in a short time, we believe our tip fees will still be well below market rates in California. See the table below.
Fertilizer and Soil Amendments for Sustainable Agriculture 6000 East Side Potter Valley Road, Ukiah, CA 95482
(707) 485-5966 - www.coldcreekcompost.com
Jurisdiction Feedstocks Accepted Price Per Ton (Not including Transport)
City of Sacramento Organics
Material Diversion Vendors Food and green materials
Agromin
$77/ton – Green only
$97/ton – Green & food
Sacramento County
$91.51/ton – Green only
$96.51/ton – Green & food
Yolo County
$70/ton – Green only
$70/ton – Green & food
ReThink Waste Contract with
Recology Food, green, and wood materials
Jepson Prairie Organics,
Vacaville, CA
$69/ton – Green only
$89/ton – Comm source
separated organics
$83/ton – Mixed organics
Sonoma County: Zero Waste
Sonoma Food and green materials
Napa Recycling
$48.41/ton
Redwood Landfill
$52.40/ton
C&S Waste Solutions
$65.00/ton
We believe we have been a reliable partner with the City servicing the City’s composting needs since 1996. A commitment to Cold Creek by the County ensures local, long-term composting capacity to meet SB 1383 requirements, minimizes transport costs, and provides local jobs. We look forward to the opportunity to continue to support Mendocino County’s residential, commercial, and agricultural communities through organics recycling and by providing nutrient dense finished compost.
Please let me know if I can provide any additional information.
Thank you for your consideration,
Martin Mileck
Founder, Owner, and President
Cold Creek Compost, Inc.