Phoenix Earth Food Co-op (PEFC)
Minutes, Board Meeting 12/4/2013

Location: Main branch of Toledo-Lucas County Public Library, 325 Michigan St., Toledo, OH 43604; Present: David Bohon, Thomas Fine, Sándor Halász, Anita Levin, Nichole Nauden, Sean Nestor, Hermann von Grafenstein, Lisa Blake (General Manager, GM). Absent: Shelly Boraby, Alyx Kendzierski. Resolutions are numbered R1–R5.

The meeting began at 5:30 pm.

  1. Minutes
    The minutes of the 10/26/2013 board meeting were approved with modifications (R1, 6/0/1 for/against/abstention).
  2. Time and place of regular meetings
    A motion was passed to move the regular location of board meetings to the main branch of the Toledo-Lucas County Public Library (Black Room), 325 Michigan St., Toledo, OH 43604. Regular meetings will take place on the 4th Wednesday of each month. The next meeting will be on January 22nd 2014 (R2, 5/0/2).
  3. General Manager's Report:

    GM Lisa Blake handed out her Manager's-Report dated 12-06-2013. The following topics were covered (further details can be found in the report):

    Personnel and personnel development: Jennifer Mowka had agreed to take over as bulk manager. Dakota and Lisa had visited a conference in Ann Arbor to learn about category management. Sean and Sasha had visited a "Retail Basics" Conference in Minneapolis.

    Finances: GM Lisa Blake has been working with Dennis Snell of SCORE to develop a better system for accounting of margins and of income by department [SCORE: "a nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow, and succeed nationwide"]. The overall margin was 32%. Lisa thought that this number did not account for various write-downs such as spoilage and thefts. Tom reiterated his concern that, although sales were improving, the cash position of the Co-op was still weak. Tom urged the manager to start using increasing sales to build up a cash reserve. In addition, re-opening a new credit line would be advantageous.

    Parking lot:

    Floor and other repairs: The Co-op had received a grant from NCGA over $4,641.03 for various items including floor and other repairs, Lisa's trip to Minneapolis, and Sasha and Sean's trip to the "retail basics conference." $1,000 was for the floor, and $2,300 for other expenses related to store maintenance, including labor. Lisa reported that she had paid herself back for using her credit card to cover Sean and Sasha's travel expenses. Tom suggested moving the $2,300 into the Co-op's expansion account, so it would not be spent on normal operating expenses. Board members agreed with and re-enforced that suggestion.

    Sales: This year's November sales were 21.1% over last year's. Lisa attributed the success in part to a radio ad that she had purchased.

  4. Finance Committee report (Tom)

    Tom reviewed data in the Profit-And-Loss and Year-To-Date (YTD) spreadsheets that Lisa had sent out prior to the meeting. Major points of his review were:

  5. Outreach Committee report (David Bohon)

    David Bohon reported about a recent meeting of the Outreach Committee. Major points were:

    During a follow-up discussion after David's report, several more recommendations were made:

  6. 6. Executive Committee report

    Sean reported on a recent executive committee meeting during which a new membership model had been discussed. The idea was to revert back to a subscription model rather than maintaining the current equity model. A number of variants were discussed including a hybrid fee/equity model. Suggestions included:

    An annual fee-based or hybrid model would have several advantages:

    Tom and Lisa cautioned that it was not clear, from a legal point of view, that the Co-op could revert to a subscription model. Lisa was in favor of a hybrid system.

    Tom Fine left the meeting

    Anita moved to table the discussion until the legality of all options was clear. The motion passed (R3, 4/0/2).

    Anita Levin left the meeting

  7. General Manager's evaluation

    Hermann presented a score sheet based on the Register of Policies. Sean suggested to prepare a condensed score sheet for the next board meeting.

  8. Farewell to David Bohon

    Prior to the vote to accept David's resignation, David was asked to speak and he suggested that the landlord should be pressed to finance repairs in exchange for signing a new lease.

    A motion was passed to accept David Bohon's resignation (R4, 4/0/1). Sean thanked David for his many valuable contributions to the Co-op and David promised that he would continue to serve the Co-op as time allowed.

  9. Point of sales (POS) system
    As a New-Year resolution Sean and Hermann promised to investigate a Point-Of-Sales system that would alleviate many of the Co-op's problems. Before implementing the system its capabilities would be demonstrated to the Board and the manager.
  10. Adjournment
    The meeting was adjourned at 7:50 pm (R5, 4/0/0).

Date of next meeting: January 22, if not decided otherwise.

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Submitted by Hermann von Grafenstein, Secretary