02-17-2016 CSMCREEKSIDE RENEWABLES ADVISORY BOARD
MINUTES
City Center Staff Conference Room
Wednesday, February 17, 2016, - 4:00 p.m.
Members Present: Nathan Winter, Kurt Hjerpe, John Lofdahl
Members Absent: Sandra Kaufman, Tammy Field
Others Present: Andy Kosek, Becky Kobow
1. Approval of Minutes from July 22, 2015
Motion by Lofdahl, second by Winter, to approve the minutes as presented. Motion
carried unanimously.
Reporting
1. 2015 Year-end Financials, if available
Kosek reviewed the year end financials for both the refuse fund and the compost fund. A cost of
goods sold adjustment will need to be made in the compost fund, which means a $75,000
difference to the year to date balance in the net revenues and expenditures line. This was another
solid year for Creekside.
2. Sales YTD
Kobow explained that the information looks likes than what is actually occurring mainly because
of when shipping occurs. Overall, bagged sales have increased from 2014 to 2015. Kobow and
Kosek spoke about the scaled-down model Creekside is using, which is basically a lower volume
of producing lower -margin sales bags.
Old Business
1. Source Separated processing
Kosek noted that it has been discussed whether or not Creekside should look at outsourcing its
material for its source -separated processing. Kosek noted that the OEA agreement runs through
2018 which mandates how the facility can be run or how it is operated. Kosek spoke about the
software that is required to run the vessels for the compost turner. The software upgrade is
approximately $70,000. The system functions today, however it makes for undesirable operations.
Kosek asked if the facility should manage with the system until 2018 when the facility might
change its operations or institute the upgrade. The city will not recoup its costs in two years. Or it
could be considered to upgrade the system and then expand operations.
2. Tipping Building Mold Mitigation
Kosek noted mold issues in the tipping building - air quality issues were elevated on the tipping
floor. No major concerns but long term effects should be considered. Kosek was looking for
references for mold mitigators as he wants to prevent this from happening again. Hjerpe noted he
has several contacts that work with asbestos and demolition. He will look through and see if any
work with mold. Lofdahl was aware of contractors that work on residential scales, but was
uncertain if they work on commercial/industrial projects. Hjerpe suggested checking with
Minnesota Valley Testing or Service Master. Lofdahl suggested that 3M deals with mold issues
and might have some contacts.
New Business
1. Year End Report
Kosek provided Creekside's year end report that he presented at the City Council meeting last
week. Kosek touched on some highlights of the report. Kosek spoke about the shortage of
materials the facility will face in 2017. There were no consumer complaints in 2015.
2. Low production model discussion
This topic was discussed in general.
3. Equipment replacements for 2016
The compost fund includes bituminous repairs, bagging line upgrades and a semi -tractor truck
totaling $130,000. The refuse fund includes a skidsteer loader, control system upgrade, tipping
building tin replacement, stacking conveyor and a maintenance shop upgrade for a total of over
$260,000. Kosek noted that the wood grinder is slated for replacement in 2017 with a total
replacement cost of $400,000. Kosek noted that a discussion will need to be made on how to
replace that equipment or if it should be replaced and the operation be outsourced. Kosek spoke
about inter -department sharing of equipment.
Manager/Operations Update
General discussion was held about marketing strategies. These include WCCO, Garden Bites and
other magazine publications and flyers. Marketing is also done with specific dealers.
Future Discussion Items
Adjournment
Motion by Winter, second by Hjerpe, to adjourn at 5:10 p.m. Motion carried.
Next Meeting: Wednesday, April 20, 2016