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09-14-2005 CSMCREEK SIDE SOILS ADVISORY COMMITTEE MINUTES September 14, 2005, 4:15 p.m. Call to Order: 4:20 p.m. Members Present: Bill Arndt, Gary Plotz, Randy DeVries, Casey Stotts and Doug Johnson MembersAbsent: Marion Filk, Steve Madson and Brandon Fraser Others Present: Ken Merrill and Mayor Steve Cook 1. Review of Financial Statement Through July 31, 2005 — Ken Merrill Ken Merrill, Finance Director, presented before the Committee. Mr. Merrill shared the financials for the first half of the year for the compost facility. The total net income for the facility, combining the general fund and the Minneapolis contract, is ($35,654). It was noted that the fiscal year is on calendar year, but the production cycle of the facility is September 1 to August 31 of each year. 2. Update on Activity of Financial Consultant — Cam Rucks Cam Rucks, contract accountant, explained how various products are valued at various stages of production and how the cost of product is determined. It was noted on one specific product, 21% profit is being made. He also noted that the manufacturing accounting system is not in place yet. Source - separated material had much attention spent on it as far as cost. Each bag of potting soil costs approximately $.10. More discussion was held on how costs are determined. Gary Plotz reminded the committee that the revenue from the Minneapolis contract will be coming in by December and the revenue will increase dramatically. It was noted that by mid- November a good picture should be able to be painted of the financials and what profits will be. 3. Update on Renewal of United Hardware Contract — Gary Plotz Gary Plotz noted that the contract with United Hardware includes a majority of the smaller hardware stores throughout the region. The average price increase on product rose 7.5 %. Mr. Plotz attributed the clinching of the contract to Steve Madson's exceptional negotiation skills even with the price increase. United Hardware accounts for 30% of Creekside's business. 4. Update on Compost Pad at Spruce Ridge — Gary Plotz & Doug Johnson Gary Plotz noted that Doug Johnson and Marc Sebora attended the McLeod County Planning Commission and approval was granted for the use of a compost pad at Spruce Ridge for storage of material. It was noted that this should reduce operation costs, as this location is much closer than the formerly used transfer facility in Wright County. 5. Discussion of Management Changes at Creekside — Gary Plotz Gary Plotz informed the Committee that Steve Madson, contract General Manager, will be terminating his contract at the end of September. Staff is considering replacing this position, as it is vital to the facility. An individual with a business background is what is needed. Doug Johnson, Compost Site Supervisor, is not interested in taking this position at this time. Mr. Plotz recommended two options to fill this position. The first is to fill it as a full -time employee of the City. The other option is to put out a Request For Proposals for a contract employee such as Steve Madson is working now. Mr. Plotz suggested doing both. Casey Stotts suggested only limiting to accepting RFPs and not bring on a city employee. Discussion was held as to the availability of Cam Rucks. He is currently employed with a manufacturer and Gary Plotz did not think he would be available on a more permanent basis with Creekside. Other discussion was held on the best way to fill the position and the background that the position requires. Motion by Stotts, second by DeVries, to authorize Gary Plotz to formally request of the City Council to go out for a Request for Proposals to fill the General Manager position. Motion carried unanimously. 6. Resignation /Replacement of Creekside Advisory Board Member Gary Plotz noted that Duane Hoversten has resigned from the Creekside Advisory Board. Please bring names forward to the Mayor. 7. Update on Odor Complaint and Measurement of Odor Today — Gary Plotz & Doug Johnson Gary Plotz informed the Committee that an odor complaint came forth from Jerry Zajicek, a neighbor to the facility, following the drenching range on Monday night. The trained odor specialist went to the facility to measure the odor rating. No reading came up on the reading. Gary Plotz went to the facility to investigate the issue and he could smell an odor when he was 300 -600 ft. into the facility. This was basically due to the compost being turned and the wind direction. An additional windsock will be placed at that end of the facility to determine the wind direction and an employee will ensure that the wind is not blowing in the direction of the neighbors when it is time to turn product. Randy DeVries is looking into purchasing a weather system that can be shared with the compost site. Discussion was held regarding the hauling of "overs" or extra reject material. It has been recommended that the compost facility make this material available to anyone that is interested, with certain guidelines. The proper notice will be put into the newspaper to inform those interested that it is available. With no further business to discuss, the meeting adjourned at 6:05 p.m.