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07-20-2011 CSMCREEKSIDE RENEWABLES ADVISORY BOARD MINUTES City Center July 20, 2011 - 4:30 p.m. Members Present: Bill Arndt, Marian Filk, Bob Peterson, Nathan Winter, Juli Neubarth Absent: Brandon Fraser, Bob Anderson Others Present: Jeremy Carter, Doug Johnson, Andy Kosek Bob Peterson called the meeting to order at 4:40 p.m. 1. Approval of April 6, 2011, Minutes Motion by Filk, second by Winter, to approve the minutes from April 6, 2011, with the correction of the spelling of Nathan Winter's last name. Motion carried unanimously. 2. Review of 211`' Quarter Financials Jeremy Carter reviewed the financial for Quarter 2. In general, the financial reports indicated that there was a profit of $120,000 to date, however sales were down $200,000. There is a cash balance of $600,000. Inventory was down but will be increasing. The facility is moving into the production time of year. Discussion was held regarding the decrease in sales, which is being seen industry -wide, especially at retail outlets. Motion by Filk, second by Neubarth to approve Q2 Financials. Motion carried unanimously. 3. Review of Computer Sales Doug Johnson explained that one of the goals of Gary Plotz, who was hired at Creekside, is to increase sales. Creekside has begun web sales. Mr. Plotz has worked with Julie Neubarth in developing these sales. Supersocks products are one of the products being featured on the web site, which is called Minnesota Ground Cover. Minnesota Ground Cover will be focused towards wholesalers. The site will become live in the next week or so. Jeremy Carter mentioned that Gary Plotz also worked on targeting wholesalers within a 75 mile radius. 4. Extended Hours Doug Johnson mentioned that the facility is behind schedule on screening product due to the weather conditions over the season. Because of this, he is proposing to extend the hours of operation for the months of August and September. Mr. Johnson is proposing to run 24 hours, operating three separate shifts. Mr. Johnson and staff will be notifying neighbors that the hours may be extended and the request for extended hours will go before the City Council for approval at the July 26, 2011, Council meeting. 5. St. Cloud Update Doug Johnson reminded the Board that at the last meeting discussion was held regarding an alternate site in Carver County. Carver County since decided that they did not want to proceed with the project. However, a site has been located in St. Cloud. Creekside will operate St. Cloud's site by grinding, screening and cleaning up their site at a cost to St. Cloud of $28,000. Creekside has begun this and is half done with the work. Product from St. Cloud is transported to Hutchinson. If all goes well, a five -year agreement is being considered. Gary Plotz was instrumental with this project. 6. Organic Certification Doug Johnson mentioned that Gary Plotz is working on Creekside's yard waste compost becoming organic certified. Beginning in the Summer of 2012 a new product line of organic products will come out, which adds 20% to the profit of the bag. Currently Creekside's product is organic - approved but not organic - certified. 7. Miscellaneous Doug Johnson mentioned that Creekside took in an enormous amount of material from the storm that went through on July 1't. Johnson estimated that over 250 tons of material came in last week and on July 211`' over 420 private vehicles came through and over 1200 vehicles came through three days after the storm. Motion by Arndt, second by Filk to adjourn at 5:35 p.m.