BELFAST CO-OP BOARD MEETING – September 24, 2009

PRESENT: Russ Barber, Jeanne Gail, Allen Ginsberg, Debbi Lasky, Bindy
Pendleton, Kip Penney, Phil Prince, Paul Sheridan, Peri Tobin, Zafra
Whitcomb. Absent: Wayne Kraeger, Jerry Savitz, Jerome Weiner.
Staff: Erica Buswell, Goldy Goldstein, Chris Grigsby, Mylisa Vowles.

FACILITATOR: Zafra. Scribe: Paul. Timekeeper: Peri.
Vibewatcher: Bindy.

ANNOUNCEMENTS: This is Erica’s last board meeting, and she was
thanked for her work. Posters were distributed for the “Climate
Action 350.org” event, Belfast Common, Sat. 10/24. The co-op was
represented by members at the Common Ground Fair, at the Co-operative
Maine table. Also a train schedule was distributed for the Fair.

AGENDA REVIEW: request to leave out “Executive Session” on agenda,
unless the MOC otherwise notifies Secretary. The task of bringing
the “Board Box” of files to the meeting has been assigned to the
facilitator, and this will be added to the agenda sheet.

MINUTES: of August 27, 2009 were accepted as corrected: under
Announcements, add “Pass the Torch” event; under GM Report add “store
closed early for Staff Party;” under Financial Report, committee “is
using” a new measure; also a “suggestion that staff be queried at a
meeting as to what type cutback preferred, if necessary;” under
Business Plan Brainstorming add: “wide range of ideas discussed” and
“not for strategic long term planning;” - 8 Yes, 0 No, 2 Abs.
Minutes were also approved for web posting, with deletion of three
dollar amounts. - 10 Yes, 0 No, 2 Abs.

GENERAL MANAGEMENT TEAM (GMT) REPORT: written report was received.
Questions/comments: is it a Board or GMT decision to increase the
discount rate from 10 to 20% on full package/case bulk items, as a
new, additional benefit of membership? Proposed: to empower the GMT
to implement this as a not less than one year trial period, as they
best see fit, along with input from department managers. Accepted, 9
Yes, 1 No, 0 Abs.

MEMBER COMMENTS: We used our influence recently to ask Camden
National Bank to reconsider their sponsorship of the Glenn Beck Show
on Voice of Maine radio. As we are a good customer, Camden complied
and redirected some sponsorship money to WERU. Comment: that members
would want to see us using a credit union, being a form of co-
operative, as opposed to a commercial bank. Concern expressed about
the quality of the Café food while Amy is recuperating from recent
car accident, but we were reassured that we have some very skilled
people working in the kitchen these days. Some staff donated sick
time to Amy, and a new system will be instituted in the future to
facilitate such donations. Board discussed possibilities for a “get
well” gift to Amy.

FINANCIAL REPORT: August showed poor gross sales, down 6% from prior
August. Overall, negative 1.5% growth. Cost of Goods expense reduced
by more than 1.5%, so we are a bit ahead. Our ratio of labor
compensation-to-sales, at 19.4% is far below the benchmark of
23-24%. Non-dept wages were down by 19%. The first half of
September looks better; with less negative growth. As to the
proposed budget, committee has reviewed this in detail looking for
savings. Assumptions that were made:
- a rebound of 1.5% in growth of sales (i.e. --2010 looks like
2008);
- a 1% Cost of Goods growth in 2010;
- 2% less in labor costs;
- a 33% increase in health and dental premiums (18 employees on
plan now, anticipate 6 more added to plan);
- Only a Christmas staff bonus, and not a summer bonus;
- Plan on distribution of only 20% of net income attributable
to member sales as a patronage dividend (in past, 100% or more was
distributed to members—in 2008 it was $60K, projected for 2009 is
$41K). We will need to publicize well and fully the reasoning behind
this change, including the poor economy, dip in sales so that the
amount to distribute is lower, the other advantages of membership
(tonight’s new bulk discount, pre-order discounts, Tuesday senior
discounts, the Member Advantage program, all of which more than make
up for the reduction in patronage dividends). Also, that the balance
of the retained dividends still belongs to members and is used as
equity in their co-op.
- The budget is a working document. There are no plans in it
for buying land or money to research purchases. There was no
consensus to allow managers to do footwork and research in this
area. Board functions were budgeted at $1000. Budget was approved,
7 Yes, 1 No, 0 Abs.

BOARD DEVELOPMENT AND ELECTIONS COMMITTEE: new committee choices:
Chris on Buildings and Grounds; Joe on Purchasing Policy. Bring
retreat ideas for October meeting.

LONG-RANGE PLANNING for the BUSINESS PLAN: homework: to prioritize
six items from Erica’s list and return to her.

BUILDING AND GROUNDS COMMITTEE: reviewed list of projects, did a walk-
around. Possibility of very low berms at driveway entrances to keep
back street drainage from entering our lot. Russ will talk to City
planner. Also adding a strip in front of windows to drain towards
Pendleton St. High Street between our two front driveways is not an
official parking spot—parking there blocks view of exiting vehicles—
discussed asking for a sign and/or painting of that spot on road
surface. Bindy had member input that the beverage machine in our
entryway may be too close to doors. Committee to research egress
requirements.

RECYCLING COMMITTEE: committee discussed 350.org event. City has
appointed a person/committee to look into increasing recycling in
Belfast. Common Ground Fair is requiring food vendors to provide
biodegradable containers and serving goods, why do we not have these
yet? Expense!

PURCHASING POLICY COMMITTEE: with addition of Joe from the GMT,
committee will now be meeting.

COMMUNITY INTERACTION COMMITTEE: we were asked to donate to the
recent High Street Block Party. There was some discussion over the
validity of the request, but problem was resolved.

MANAGEMENT OVERSIGHT COMMITTEE: as an employee grievance was
received, a committee is being formed as per the Employee Handbook,
and the MOC must assign a board member. The GMT transition is going
well. October 1st is the official ending date of the transition
period. Three-month evaluations due at January 1st. Kimalee will be
meeting with each person to refine job descriptions. Goldy and Erica
will make themselves available for advice as needed. MOC with work on
Erica’s new job description during October.

HOMEWORK: Retreat ideas to Board Development Committee; Business Plan
priorities to Erica; board to sign sympathy card to Joe, left in
board box; Erica organizing $ for gift certificate for Amy; see her
tonight.

NEXT MEETING: Thursday, Oct. 22, 2009, 6:30 PM at Waterfall Arts,
with Kip facilitating.