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UTILITIES NOVEMBER 26,2012 3:47 P.M. Committee Members Present: Tim Scott, Valerie Schey, Oliver Davis Citizen Members Present: Chris Sopczynski Other Council Members Present: Henry Davis, Dr. Fred Ferlic, Dr. Varner Derek Dieter, Gavin Ferlic Others Present: Al Greek, Mark Neal, Gary Gilot, Mike Schmuhl, Mike Mecham, Latesha Jackson, Scott Ford Agenda: New Energy Update Utilities Committee Chairperson Tim Scott called this meeting to hear an update on the effects of the recent closing of the New Energy ethanol plant. Former Public Works Director, Gary Gilot along with City Engineer Mike Mecham gave a comprehensive report. A handout (attached) was provided for Council summarizing their assessment. Gary noted New Energy was a major customer whose closing would result in a revenue loss of$2.25 million per year. Beyond direct revenue loss any savings or expense reductions would be more difficult to calculate. He did note some investments in capital could be deferred and possibly scaled back. What Gary did enumerate were the opportunities that arise for attracting new business to the city. The plant now has excess capacity to treat wastewater and to provide an abundance of clean, safe,potable water. He said these assets can be significant marketing advantages for attracting new business. For example, our water production capacity is about 63 million gallons per year which is 45-48 million gallons over our average use. Oliver Davis asked if other owners would re-start New Energy production. Gary said there were no presently doubting there would be given industry economics. Councilmember Dr. David Varner asked in New Energy had any past-due bills with the City. Gary said only in the most recent month's bill of$92,000.00 Gary added that while no companies had yet approached the City, we should be attractive to food processing companies. Tim Scott turned the conversation to the long-standing odor abatement issues prompted by New Energy operations. Mike Mecham said the$700-$800 thousand dollar estimated cost of future abatement efforts would be put on hold. Tim then recognized Latesha Jackson who said there were odor problems in the water in the Near Northwest area. This prompted Councilmember Henry Davis, Jr., to urge the city officials to continue odor abatement efforts. He said the City should be mindful of serious environmental and health concerns.