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07-20-2005 CSMCREEK SIDE SOILS ADVISORY COMMITTEE MINUTES July 20, 2005, 4:15 p.m. Call to Order: 4:15 p.m. Members Present: Bill Arndt, Gary Plotz, Duane Hoversten, Doug Johnson, Randy DeVries, Casey Stotts and Steve Madson MembersAbsent: Marian Filk and Brandon Fraser Others Present: Ken Merrill and Mayor Steve Cook A conference call was held with Cameron Rucks, contracted Inventory Accountant for Creekside. Mr. Rucks updated the committee on his activity thus far at Creekside, which has only consisted of a few days. He has become oriented with the compost facility, becoming familiar with the facility itself, researching historical financial data, etc. He has also had an opportunity to observe the daily operations of the facility, from intake of the product to final sales. Mr. Rucks noted that the current software limits somewhat the data collection of a job work order, to which labor and overhead need to be applied. Currently raw material and finished goods are inventoried, but the missing piece consists in the Work In Progress. A new manufacturing software is being acquired and put in place in a few weeks which will aid in this missing data collection. Mr. Rucks noted that he feels the inventory on hand as of December 31`t was understated due to these missing collection practices. Mr. Rucks also commented on the bagging operation, of which he feels may have some training issues, as it took approximately 1700 bags to complete a 1300 bag job. He noted that the manufacturer of the machine was able to nun through many more bags as compared to what was actually produced on site. Mr. Rucks stated this plan is to follow an order from intake through final delivery and track what the system needs for inventory. He noted that conversion factors need to be worked on as well as determining if there is any scientific support for the conversion factor of composted material. In addition, freight issues need to be addressed. The issue of acquiring concrete financial numbers without the new manufacturing software was raised. Mr. Rucks stated that the information can be tracked manually for now, and good estimates may be able to be used for the first half of the year. The conference call then ended. Steve Madson commented briefly that the sales volume is somewhat lower than was projected due to the inclement spring. In addition, there are some questions as to whether or not a large contract with United Hardware will be entered into. The committee then adjourned at 4:35 p.m. and went to the compost facility to see a demonstration of a debagging machine that is intended for use for the Minneapolis contract. This machine is bigger and more efficient than what the facility was previously using.