Phoenix Earth Food Co-op (PEFC)
Minutes, Board Meeting 5/28/2014

Location: Main branch of Toledo-Lucas County Public Library, 325 Michigan St., Toledo, OH 43604; Present: Shelly Boraby, Thomas Fine, Sándor Halász, Alyx Kendzierski, Will Mellon, Sean Nestor, Hermann von Grafenstein, Lisa Blake (General Manager, GM). Absent: Anita Levin. Resolutions are numbered R1–R9.

The meeting began at 5:40 pm.

  1. The minutes of the 4/23/2014 board meeting were approved (R1, 8/0/0 for/against/abstention).
  2. General Manager’s evaluation
    Sean Nestor reviewed the meeting that the Executive committee has had to communicate the results of the staff and Board surveys to GM Lisa Blake.
  3. Resignation of General Manager Lisa Blake

    Announcement of intent to resign: Lisa Blake announced that she wishes to step down from her position as general manager as of June 1, 2014. Prior to her decision to step down, she already has had discussions with staff to coordinate a possible leave of absence during the summer. Lisa summarized what she considered to be her accomplishments during her tenure. Among them was the re-establishment of a good relationship with the NCGA, Huntington Bank, and the Federal Credit Union. She also pointed out that recent sales had been decreasing as they had in past years during the summer months. Orders were being adjusted to account for that. Other co-ops seem to face similar problems, as the organic / local food model is becoming mainstream and is being capitalized upon by large stores like Kroger and Wal-Mart.

    Acceptance of resignation: The Board voted to accept Lisa’s resignation effective June 1 (R2, 6/1/1).

    Resolution to thank Lisa: A resolution was passed to thank Lisa for her service, her diligence, and especially for all of her outreach activities (R3, 8/0/0).

    Signing of bank accounts

    Representative of the Co-op at the NCGA: Sean Fitzgerald will be the designated representative.

  4. General Manager’s report
    Lisa presented her General Manager’s report (a copy is included in the attachment). She reported that the profit margin at ~29% was lower than it should be (~33%). The reasons were most likely related to thefts, pre-orders, and discount sales. Lisa was searching for ways for the Co-op to distinguish itself from Kroger and Wal-Mart, who are also offering organics now. However, the Co-op could move produce from the producer to the consumer faster than large stores, allowing the Co-op to offer healthier, riper and fresher produce. The Co-op should emphasize that it offers locally grown, not only organic produce.
  5. Finance Committee report
     Tom Fine presented a brief report of the Finance Committee (see attached) as well as balance sheets and profit and loss statements covering April 2014 compared with March, year-to-date, and prior year time periods. Although year-to-date sales were down slightly compared with the equivalent 2013 period, the Co-op had come off the NCGA watch list last summer, which meant that reporting requirements would be less burdensome.
  6. Outreach Committee report
    Will Mellon reported what had been decided at the 5/13 meeting of the Outreach Committee (see attachment). A main topic was the planning for the Old West End Festival on June 10, 2014. Will announced that he had created a Google document that should facilitate planning of upcoming outreach events. The link is 2014 Calendar / Phoenix Outreach Events
  7. General-Manager Transition—Executive Session
    A procedural motion was passed to conduct the executive session in two parts: During the first part Lisa Blake would be present, the second part would proceed in her absence.

    1. First part with Lisa present

      Lisa agreed to help as much as possible with the transition after her departure as GM. She offered to help in several specific areas and duties were allocated as follows:

      • Lisa agreed to act as a consultant for the Co-op.
      • Lisa will continue to respond to NCGA inquiries.
      • Lisa will ensure continuity of reporting and representation at NCGA meetings. The Great Lakes group would meet in spring and fall. PEFC was part of the Rose group, a subgroup of the Great Lakes Group.
      • Lisa will tutor Sean Fitzgerald to write General Manager’s reports.
      • Leah will administer the Co-op’s accounts with the Federal Credit Union and Huntington Bank.
      • Lisa agreed to train Sean to handle employee scheduling.
    2. Second part without Lisa’s presence

      3. A resolution was passed to allocate the responsibilities of the GM as follows on an interim basis:

      • Helen will be store manager and will be responsible for maintenance contracts.
      • Leah will be responsible for finances and contracts with suppliers and the NCGA contacts.
      • Sean will be responsible for payroll, employees scheduling and ordering (R8, 8/0/0).

    Further steps the Board will take:

  8. Adjournment
    The meeting was adjourned at 19:52 PM (R9, 8/0/0).

    Date of next meeting: June 25, 2014, if not decided otherwise.

__________________(signed)___________________
Submitted by Hermann von Grafenstein, Secretary