Board Minutes August 13, 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, August 13, 2007, 6 PM, at the NCO Meeting Room, 481 South State St, Ukiah CA.

Call to Orde: President Terry Nieves called the meeting to order at 6:07 pm.

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

Staff Lori Rosenberg, Babs Verenis, Libby Uhuru.

Member-owners Marcela Ries.

INTRODUCTIONS
None.

MEMBER COMMENTS
None.

APPROVAL OF AGENDA AND MINUTES

Agenda Approval Both Lori and Don requested an item be added to New Business.

M/S/C (Beck, Hamburg) to approve the 8/13/07 agenda with two additions to New Business.

Approval of 7/9/07
Minutes George requested a change be made in the Finance Report section of the July minutes. He requested the inclusion of the following statement: “It is too early to change budgeted expenditures at this point”.

M/S/C (Hamburg, Beck) to approve the minutes from the July 9, 2007 board meeting as amended by George.

SECRETARY’S ANNOUNCEMENTS

None.

GENERAL MANAGER’S REPORT

Monthly Activity Lori sent out her report electronically prior to the board meeting; the following topics were discussed:
- The new plastic bags being used in the store will biodegrade if they are thrown in the trash.
- The accounting review has been rescheduled and will take place on August 28.
- The Mariposa Market in Willits is no longer for sale.

ACTION ITEMS
None.

BOARD COMMITTEE REPORTS

Board Education/Outreach
& Membership The committee reported on the following:
- Member Michael Goven attended the last meeting and has indicated he would like to join the committee.
- The committee would like to “void” the membership of one new applicant to the Co-op. A person recently joined who paid for the membership with a bad check written from a closed bank account. After knowingly pass bad checks totaling over $1400 in the weeks following the initial membership application, the individual was arrested at the store while trying to pass another bad check. The committee believes that the amended by-laws require a vote by the board to officially disallow the membership application.
- The board referred back to the by-laws which state that membership applications can be approved or rejected by the committee; therefore, a vote before the board is unnecessary.
- The committee will write a letter and officially inform the individual of their non-admittance to the Co-op membership.
- The committee needs a new “purpose”. The last Member Gathering was poorly attended and after the next Gathering, which has already been committed to, the committee will reevaluate whether to continue with the Member Gatherings.

Donations & Grants None.

Elections &
Nominations No report. The bylaws have been updated with the voted on amendments and are on the website and will go in the new member packets.

Finance The minutes from the last meeting were sent out electronically. The committee reported on the following:
- June sales growth has slowed to about 5%. There has been a “summer slump” this year across all the departments. Although budgeted sales growth was estimated at about 12% to 13%, expenditures are well below budget for the year.
- There has been a significant increase in freight charges this year due to the rise in fuel costs.
- The issue with items being unavailable in the store has been due to either the manufacturer being out of stock, or a problem with the distributor. The NCGA is working towards a solution to the distribution problem. Our major distributor, UNFI, has experienced tremendous growth and has had some trouble keeping inventory properly stocked. Grocery Manager Babs has been able to occasionally fill some of the merchandise holes by tapping into the distributors used by some of the other grocery stores in town.
- The Finance Committee has lost two members, Jack Wade and Madelyn have resigned.

Governance None.

Human Resources None.

Local Food Security The committee reported the following:
- Don, Anelle and Jim have met and are working on a “face” for the farming program to present to the public.
- The farming program is still being revised and needs more community input and involvement as well as volunteers.

NEW BUSINESS

Real Estate Lori has been contacted by a number of local real estate developers and has the following information to pass on to the board:
- Ukiah Valley Lumber, located on North State St., is for sale.
- The Airport Boulevard development has another planned shopping center going in. The developer has approached Lori about relocating the Co-op to this new site.
- A piece of land on Orchard Blvd. just north of Mervyn’s may be coming up for development; the owners are amiable to leasing the land and helping finance construction if the Co-op is interested in the site.
- So far, the development plans brought to Lori have been unaffordable.
- The remodeling plan for the current Co-op site is still moving along; a plot map of the shopping center is being drawn so the planning department can evaluate the parking requirements.
- Sutti & Associates are drawing up remodel plans for the city to review.

Consideration of new merchandising
Policy Don passed out a potential new merchandising policy (see attached) for the board to review. The following was discussed:
- Don would like the board members to read his proposed merchandising policy, think about it, and discuss it at the next board meeting.
- There is an action item on the second page of the merchandising policy that the board can consider at the next meeting.
- Lori will be unable to attend the next meeting as she will be at a Co-op conference in Seattle; she requests the discussion of this issue be postponed until the October board meeting.

DIRECTOR COMMUNICATIONS

Director Reports None.

Board Agenda The discussion of the proposed new merchandising policy will be added to the October agenda.

MEMBER COMMENTS

Marcela asked about how many square feet would be added to the store if the north wall was pushed out towards Gobbi Street. Lori estimated about 1800 to 2000 square feet.

ADJOURNMENT

The meeting was adjourned at 6:55 p.m. The next regularly scheduled board meeting will be September 10, 2007 at 6 p.m. at the NCO meeting room.

 

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