RAINBOW BOARD MEETING MINUTES


August 19, 2008

ATTENDEES: Board members: Barbara Scobee, Ann Herlihy, Joy Adams, Leo Huddleston, daniel Johnson, Irene Jones, Patrick Jerome; Non-board members: Bruce Fraiser, Luke Lundemo, Charlotte Lundemo, Steve Whitlow

A quorum was present.

The meeting was called to order at 6:15 pm.

Board accepted resignation of Board President, Michael Goggins, effective immediately, due to a job relocation to Meridian. First alternate, Patrick Jerome, has filled Michael’s position on the board.

Board voted by written ballot to elect new president; congratulations go to Irene Jones.

Board had a general discussion about the solvency of Rainbow and the need for guarantors to secure a line of credit as well as the need to flood-proof the back wall/ back door.

APPROVAL OF MINUTES: The minutes were approved for July 2008 as well as May 2008.

FINANCIAL REPORT: Barbara Scobee presented the financial report. She reviewed the Profit and Loss, Statement of Cash Flows, and Balance Sheets for July as well as for 2007-2008 fiscal year. She noted sales were good in July, however net operating income is very low because Rainbow purchased the new POS system and had to prepay for some POS training as well as a one year support fee. For the summary of the fiscal year, Barbara reported that Rainbow met projections in income but did not meet projections in net income because we are not increasing our profit margin to compensate for the increased cost of goods. The good news is that expenses were down 2% from last year which saved the day! Barbara continues to assert that rainbow needs to have an independent audit in the near future once funds are available.

MANAGER’S REPORT: Steve Whitlow presented the manager’s report. Rainbow saw an increase in sales in July as well as a minor increase in payroll (except in café, payroll went down 6%), however, there was no change in the payroll percentage of sales for overall sales and grocery sales. The average purchase amount increased by more than a dollar and the average number of items sold went up 11%. Monday-Saturday sales have improved and the active paid memberships is nearing the 4000 mark! (3969!)

CEO REPORT: Luke Lundemo presented the CEO report. Highlights are as follows:
*The Rainbow-Tougaloo Community Garden:
- had a successful watermelon picnic August 16th
- fire pit donated
- more grow beds being added monthly
- has begun supplying High Noon with veggies
- will begin promoting the garden in the plaza via a display
*POS system arrived and staff will begin training next week
*HR has begun refresher training in each of Rainbow’s departments for the staff
*Graffiti continues to be a problem in the restrooms in Rainbow
*The first implementations of the energy audit will be low cost, high yield measures
*Glass recycling continues to increase--looking to purchase a trailer to make transportation more efficient
*Dinner and a movie has been very successful and receiving positive response
*Rainbow still considering ideas for usage of the vacant front space as well as the conference space
*Denied loan by the National Cooperative Loan Bank because of Rainbow’s Chapter 11 bankruptcy
*Flood control: contacted a company called Presray, the previous estimate of 3-4k to secure the back wall and door has jumped to ~15K, we’re talking to the company about possible terms

Meeting adjourned at 8:13 pm.

Minutes submitted by Joy Adams, Secretary of the Board