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10-24-2012 CSMCREEKSIDE RENEWABLES ADVISORY BOARD MINUTES City Center October 24, 2012 - 4:30 p.m. Members Present: Steve Cook, Marian Filk, Bob Peterson, Nathan Winter, Brandon Fraser, Julie Neubaith and Bob Anderson Others Present: Andy Reid, Andy Kosek The meeting was called to order at 4:30 p.m. 1. Approval of Minutes from April 25, 2012 Motion by Filk, second by Peterson to approve the minutes as presented. Motion carried unanimously. 2. Financials Andy Reid, Controller, distributed a comparative income statement as of 9/30/12. Total sales year -to -date are up 22% which is an increase from last year. Revenues are exceeding budget by $108,000 (YTD). Expenses are tracking appropriately with the budget. $400,000 cash is intended to be added to the Compost field. These fields are from both bulk and bagged sales. Bob Anderson asked if any serious consideration has been given to replacing equipment in the near future. Mr. Reid noted that since the transition to a new general manager, those things are being reviewed. Andy Kosek noted that a loader was traded in and a new piece is being leased. Mr. Kosek explained a situation currently being had with the county grinder. Mr. Reid reviewed the refuse fiend. Revenues are tracking with the budget, however at this point, expenditures are behind budget but will pick up over the next couple of months. 3. 2012 Sales Update Andy Kosek explained that bagged sales are approximately 1.7 million which is an increase from 2011. Bulk sales, which includes bit -con, are approximately 16,000 yards. All sales are up from 2911. 4. St. Cloud Area Compost Sites Andy Kosek explained that St. Cloud had material that needed to be screened and therefore hired Creekside to do so. Phase 2 of the St. Cloud project incorporated Creekside running St. Cloud's facility with St. Cloud still involved in the operations. This was very beneficial to Creekside due to Creekside getting material at a very fair price. Phase 3 now has Creekside charging St. Cloud a tip fee and then processing all the material in Hutchinson. Cost is approximately $2.50 /yard to put in bag. St. Cloud and Creekside have a very good working relationship. Mr. Kosek noted he has also spoken to Sartell, Sauk Rapids and St. Joseph to begin a similar program. However, due to competition, projects may not proceed in those communities. 5. Shakopee Site Andy Kosek explained that all permitting was granted by Scott County and the MPCA. Mr. Kosek spoke of tip fee variations that have caused some wrinkles in the program. There is no material at the Shakopee site this Fall due to relationships haulers had already created with a local competitor. There are some permit fees and bond fees that are associated with the site, but no other costs are with the site for Creekside. The program will move forward in 2013 with further discussion with the haulers. Creekside pays a percentage of the tip fee as their rent. 6. Small City Raw Product Procurement Andy Kosek noted this program is geared to smaller -sized municipalities who stockpile their yard waste, brush waste, and all compostable materials. Mr. Kosek noted that Creekside's cost would be to screen it and haul it. Some responses Creekside has received from municipalities is, "if you want it, come and get it ". Mr. Kosek provided examples of relationships he is creating with Fairfax and Willmar. General discussion was held regarding intake of wood waste. 7. 2013 Sales Forecast Andy Kosek noted Creekside expects at least the same for 2012 if not better. Promotions include: At Bongaard's, L &M Supply, Lewis Diug, Runnings the Wonderblend line will have a $1.00 instant rebate at the time of purchase. This will mean a growth in sales. This promotion will run in Spring 2013. Also, if customers register their email with Creekside they will be eligible for a $250 gift certificate when a picture is submitted of a customer using the product. Hopefully Runnings will take part in this promotion. Mr. Kosek also noted that the Garick private label packaging is continuing well. There is also an RFQ for 850,000 bags to Home Depot and 680,000 bags to the Menards account. 8. Miscellaneous Bob Anderson asked for a chain of command of Creekside. Andy Kosek noted Mr. Anderson can contact him any time on his cell phone. General discussion was held on digested dairy manure. Brandon Fraser noted that if /when the Crow River is dredged, Creekside would be a great location to bring the dredged material. Motion by Anderson, second by Winter to adjourn at 5:50 p.m.