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05-17-2006 CSMCREEK SIDE SOILS ADVISORY COMMITTEE MINUTES May 17, 2006, 4:15 p.m. Members Present: Randy DeVries, Doug Johnson, Gary Plotz, Casey Stotts, Marion Filk, and Brandon Fraser Member Absent: Bill Arndt Approval of Minutes from April 19, 2006 Bob Anderson noted that the loss indicated in the minutes should be changed to $278,00135. Motion by Filk, second by Anderson to approve the minutes with the above - mentioned revision. Motion carried unanimously. 2. U of MN Study Marion Filk reported that an opportunity has been presented by the University of Minnesota to conduct a turf study. Test platting would be part of the study, such as using Creekside material for statistical information. The results of the study may get linked to information presentedat the US Compost Council. Gary Plotz recommended including biosolids product as part of the study. The consensus of the group is that this study would be beneficial to Creekside. 3. Cenex Update Doug Johnson reported that he received information from CeneY that their site currently located on Adams Street does not plan to relocate. CeneY informed him that they may not be on Adams Street in 10 years, but have no plans to relocate in the near future. 4. Financial Update Ken Merrill distributed financial reports for the first quarter. The information showed a net loss of approximately ($56,000). This includes the numbers from the Minneapolis contract and depreciation. Mr. Merrill also distributed information showing comparisons from 2005 to 2006. This information showed that bag sales are down, FOB sales are up, bags to be delivered are up, sales to be delivered are up, manufactured bags are down, cost of bags sold are up, value of manufactured bags is down and gross profit is down. These numbers portray more accurate valuations of product. Labor costs are down from last year, as well. Discussion was held regarding general sales and operations. Brandon Fraser inquired as to if this year is not a "good year ", when will the "tough" decisions have to be made. Doug Johnson and Gary Plotz noted that a meeting will be held next week with sales staff and they intend to raise prices overall on average 14.5 %. Competitors seem to be increasing prices as well. (Marion Filk exited at 5:00 p.m.) Casey Stotts inquired as to whether or not there is a "drop- dead" number in sales and profitability where Creekside would cease operations. Ken Merrill noted that no such number has been established. Board members requested that previous years' deficits be presented at a future meeting. Brandon Fraser inquired as to whether or not staff is aware of where Creekside products are being supplied: new construction, existing construction, etc. Gary Plotz noted that he feels Creekside product is used more at existing residential homes. There is not a large volume of bulk sales that would supply new construction. 5. Open House Update Doug Johnson reported that the Creekside Open House was held in early May. Although the weather was inclement and the day was rather slow, positive comments were received by those who did attend. 6. Site Berm Bob Anderson stated that neighbors to Creekside are not interested in a berm being constructed, but would rather like the trees to remain and replant those that have died. Doug Johnson stated he will speak with City Forester, Mark Schnobrich, regarding pricing for the trees. Motion by Stotts, second by Fraser, to authorize purchase and planting of trees at Creekside, according to Creekside's budget. Motion carried unanimously. 7. Landscape Show Doug Johnson reported that he had received information on next year's Garden & Landscape Show that is held at the Fairgrounds. A 8x10 space costs $350. Mr. Johnson stated he does not feel that this show is the most beneficial to Creekside, but perhaps a joint venture with a local landscaper, such as Prieve Landscaping, would be good. The board members felt it would be acceptable not to attend independently as Creekside, but instead to join with a landscaper and display Creekside product. 8. Miscellaneous Anderson noted that the hours of operation do not appear to be followed recently. Johnson noted that the site is trying to catch up and staff has had to work some extended hours. The contractor that had been grinding for the Minneapolis contract was shut down and Creekside had to conduct grinding on site. The contractor will be starting up again soon. Generally, pallet grinding takes 2 -3 weeks, twice a year. Anderson stated that he felt the grinding operation should be moved. The board members felt the Fact Sheet that Johnson distributed at the last meeting was a good idea and Creekside should proceed with distribution. Doug Johnson noted that five students will be working over the summer to aid in maintaining the site and to keep the site looking presentable. Motion by Anderson, second by DeVries to adjourn at 5:45 p.m. The next meeting will be held at Creekside. Motion carried unanimously.