RAINBOW BOARD MEETING MINUTES

JUNE 17,2008

ATTENDEES: Barbara Scobee, Ann Herlihy, Joy Adams, Michael Goggans, Steve Whitlow, Bruce Fraiser, Leo Huddleston, Luke Lundemo, Irene Jones

A quorum was present.

The meeting was called to order at 6:05.

The Board voted to go into executive session at 6:30 so the general meeting was covered in an abbreviated fashion.

APPROVAL OF MINUTES: The minutes were unavailable for approval and therefore are still pending.

MEMBER’S INPUT: There was no member input.

FINANCIAL REPORT: Barbara Scobee presented the financial report. She reviewed the Profit and Loss, Statement of Cash Flows, and Balance Sheets. She noted that we are trying to get terms from all our vendors as well as trying to get a line of credit from the bank by next Friday. She also communicated that we broke even this month, paid our liabilities down , and finished paying off the POS system. Barbara stated that inventory had built up again so inventory budget cuts were being made and purchasing being tightened.

MANAGER’S REPORT: Steve Whitlow presented the manager’s report. He indicated we had a jump in payroll for the month of May. This was due to May having three pay periods. Steve reported we are had the same number of shoppers per day, however, purchases were down, on average, to less than $18. Hence, he has shaved 125 hours from the schedule because summer months are slower--the idea is to cut hours, not people.

CEO REPORT: Luke Lundemo presented the CEO report. Highlights are as follows:
*The Rainbow-Tougaloo Community Garden is building good relationships. Also, our application for organic certification is nearly completed. Costs have stayed modest.
*We are calling references for a POS system called CounterPoint.
*All board members and top management were given a copy of We Own It: Building Financial Security the Co-op Way. This is a workbook that helps in understanding how member equity can work.
*An internet filtering and monitoring software has been installed on the three cybercafe computers.

ADDITIONAL MATTERS OF INTEREST:
Michael gave an update on the loan with Bancorp South. We may have to reduce our request for a line of credit because of Rainbow’s bankruptcy issues--still have 2 years left to pay on approximately 50K of secured debt.

The economy as well as April’s unexpected flood and tornadoes all hitting in one month has put Rainbow in a cash strapped situation.

Discussed ideas to increase revenue for summer months.

Voted to move forward on getting a line of credit.

Meeting moved to executive session at 6:35pm.

Minutes submitted by Joy Adams