Board Minutes April 9, 2007

UKIAH NATURAL FOODS
(A.K.A. THE HOMESTEAD EXCHANGE)
MINUTES OF THE BOARD OF DIRECTORS

The regular meeting of the Ukiah Natural Foods Board of Directors was convened on Monday, April 9, 2007, 6 PM, at the NCO Meeting Room, 481 South State St, Ukiah CA.

Call to Order President Dan Hamburg called the meeting to order at 6:05 pm.

Board Members Ross Beck, Secretary (absent)
Adam Gaska
George Gibbs
Dan Hamburg, President
Jacquie Lee
MaryLou Leonard
Terry Nieves, Vice President (absent)
Don Sanderson, Treasurer
Joe Wildman

Staff Lori Rosenberg.

Member-owners None.

INTRODUCTIONS
None.

MEMBER COMMENTS
None.

APPROVAL OF AGENDA AND MINUTES

Agenda Approval One additional item was added to the agenda; Lori requested item 4.2, the purchase of a new condensing unit for the store, be added to Action Items.

M/S/C (Leonard, Gaska) To approve the April 9, 2007 agenda with one addition.

Approval of March 12, 2007
Minutes
M/S/C (Leonard, Sanderson) To approve the minutes from the March 12, 2007 board meeting.

SECRETARY’S ANNOUNCEMENTS

None.

GENERAL MANAGER’S REPORT

Monthly Activity Lori sent out her report electronically. The Annual Report has been completed; this year pictures were added to make it more visually interesting. Lori requested that the board contribute an article for next year’s Annual Report detailing board activities.

Expansion/Relocation
Discussion of this issue will take place in Closed Session.

ACTION ITEMS

Produce racking system
& condensing unit
purchases Lori presented the following information:
• Copies of the bid for the purchase and installation of a new produce racking system were brought for the board to review.
• The new racking system would replace the shelving in the existing produce case. The new shelving would allow for a higher volume of produce to be available, would require less restocking for staff, and would also be more visually appealing than the current shelving system.
• A new condenser unit is also needed; a new refrigerant is being phased in so this would be a good time to upgrade the equipment.
• Both the new shelving system and condensing unit would fit in with Sutti’s remodeling plan; the condensing unit will be moved to the roof in the case of remodeling.
• The produce department will have to be closed for a couple of days to allow for the installation of the new shelving; the job will be started at night in order to minimize the amount of time produce will be shut down.

M/S/C (Wildman, Lee) To authorize the Co-op management to purchase and install a new shelving system for the produce department and a new condensing unit.

BOARD COMMITTEE REPORTS

Board Education/Outreach
& Membership Lori read from Terry’s minutes from the last committee meeting.

Donations & Grants The committee reported on the following:
• Committee members met at Mendocino College to review the applications for the John Milder Scholarship; preference was given to applicants not selected in 2006. Three applicants were chosen to share in the scholarship funds, two for the Early Childhood Education Program and one for the Agricultural Program.
• The presentation of the scholarship funds will take place on May 11, 6 p.m. at Mendocino College.
• The Community Grants program has been advertised in the Ukiah Daily Journal as well as the Co-op newsletter; applications will be accepted until May 1.

Elections &
Nominations M/S/C (Wildman, Gaska) The board moves to accept the results of the report from Robertson & Cahill on the reelection of the three incumbent candidates (Gibbs, Leonard, Sanderson) and passage of the two bylaw changes.

Finance The committee reported on the following:
• The committee discussed the annual report, the living wage program, and pricing.
• An article Lori gave to the board from Whole Foods Magazine about pricing was discussed.
• The article raised some questions for board members to think about before the next Member Gathering. The article discussed how consumers perceive prices of products and asserts that customers notice what’s behind prices (customer service, presentation, product quality, etc.) more that they notice small price decreases.
• The committee discussed the idea of lowering prices on some high volume items such as dairy, packaged food, and bulk items. Rapid turnover of these items could offset the loss to the store from price decreases. However, it was agreed that the store’s long term viability is a priority and is dependent on maintaining overall high profitability.

Governance The committee reported on the following:
• The bylaws and disclosure document will need updating now that the bylaw changes were approved in the last election. The committee will make sure the changes are made and that Brian updates the bylaws on the web site.
• Governance will begin researching the topic of Patronage Refunds. The committee will work on how to make this kind of change organizationally, and would like the topic discussed in the other committees as well.
• Patronage refunds would address the issue of the store giving away money in the form of register discounts before knowing how much money it actually has. Patronage refunds require the membership to share in the commitment with the store; refunds would not be issued until the end of the year when a more accurate financial picture emerges.
• Information on Patronage refunds can be found on the CGIN website as well as in the Cooperative Grocer.
• This change would require a huge amount of member education as well as a change in the bylaws.

Human Resources See New Business.

Local Food Security None.

NEW BUSINESS

GM Employment
Contract The Human Resource committee reported the following:
• A copy of Lori’s 2006 contract was passed out to the board for review. The contract will be retyped and updated to reflect the changes for 2007.
• Lori’s wage increase will be retroactive to the beginning of 2007.
• The next evaluation process will begin in August of 2007 to ensure Lori has a new contract at the beginning of 2008.

DIRECTOR COMMUNICATIONS

Director Reports None.

Board Agenda None.

MEMBER COMMENTS

None.

CLOSED SESSION
M/S/C (Wildman, Gaska) The board moves to go into closed session at 7:05.

The next regularly scheduled board meeting will be May 14, 2007 at 6 p.m. at the NCO meeting room.

 

hits