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01-19-2011 CSMCREEKSIDE RENEWABLES ADVISORY BOARD MINUTES City Center January 19, 2011 - 4:30 p.m. Members Present: Bill Arndt, Marian Filk, Bob Anderson, Nathan Winters, Juli Neubarth, Brandon Fraser Absent: Bob Peterson Others Present: Jeremy Carter, Doug Johnson 1. Approval of October 20, 2010, minutes Motion by Anderson, second by Arndt to approve minutes as presented. Motion carried unanimously. 2. Financials for Year End Jeremy Carter, City Administrator, reviewed Creekside's balance sheet as of 12/31/10. Total assets were $3,749,806, total liabilities of $97,924, with total retained earnings at $3,651,882. Mr. Carter then reviewed the unaudited actual to budget for 2010. Total revenues came in at $2,155,950 with a gross profit of $1,354,438. Total expenses came in at $1,387,293 with revenue under expenses coming in at ($32,855) for 2010. Bulk and bagged sales are down overall from 2009. Other market areas and product lines are continually being researched. Bill Arndt asked if the labor being extended with snow plowing will be illustrated in the financials. Mr. Carter noted that those costs will not be expensed out in the "transfer out" but rather shown in a more non - direct way. Motion by Filk, second by Neubarth to accept the 2010 financials. 3. Fall Production for the 2011 Season Doug Johnson, Creekside Manager, provided a report on the number of bags shipped out and sales orders (which are up from last year). 4. Gary Plotz's Role for 2011 at Creekside Jeremy Carter explained that Gary Plotz retired as City Administrator as of 12- 31 -10. Mr. Plotz will be involved in marketing at Creekside to increase sales in new areas, as well as current areas. Other opportunities include biomass projects. Goals and objectives have been set for Mr. Plotz and he will begin this limited role in the spring. Brandon Fraser noted that he feels there should be a tie to commissions or some such thing as it relates to the salary paid out. Mr. Carter noted that benchmarks have been identified, such as increasing sales by 2 % -3 %. If there is no return on the investment, the financial picture will not look sound for Creekside and adjustments will have to be made. Nathan Winters asked if Jeff Meehan Sales, Inc. (JMSI) is still the marketer for Creekside. JMSI still is marketing for Creekside however JMSI and Mr. Plotz will be working together. Mr. Fraser stated that perhaps JMSI's contract and work should be evaluated to see if Mr. Plotz could handle JMSI's role. Mr. Carter and Mr. Johnson raised concerns of Mr. Plotz taking over and risking losing all the customers that follow JMSI and are customers of Creekside. Mr. Fraser encouraged staff to review JMSI's number of hours spent on contract and value of what Creekside is spending. It was noted that Mr. Plotz can only work 400 -500 hours per year for retirement purposes. General discussion was held regarding Mr. Plotz's role and the profit he should be bringing in. It was also noted that Mr. Plotz's role is also to increase contacts, get potential clients, introduce new products and acquire raw materials. 5. Present New Product for 2011 Marian Filk, representing Master Gardeners, presented a potting mix that the Master Gardeners have produced that is for pots only. Local gardeners invented this product which is called "Professional Container Mix ". This product has showed excellent results. 6. Miscellaneous Bob Anderson spoke of odors coming from the facility. Mr. Johnson reported that the dampers were froze up a bit from rain and snow. Some odor seeps when dumping occurs. Mr. Johnson spoke of covering the controls and dampers to mitigate odors and keep heat in. Discussion was also held regarding possibly putting fencing around the site. It appears that access can be gained to the site through the Cenex property. Motion by Anderson, second by Fraser to adjourn at 5:45 p.m.