October 20, 2009 Rainbow Natural Grocery Board Meeting Minutes

Charlotte Lundemo took minutes for the meeting. The meeting started at 6:05pm

Board Members present: Gen Barbour, Charlotte Lundemo, daniel Johnson, Leo Huddleston, Scotta Brady, Irene Jones and Tom Lowe. Also present were Luke Lundemo, Steve Whitlow, Bruce Frazier and Bob Gordon.

Irene read a summary of last month’s meeting and will type it up for approval next month.

Bruce Fraser’s Financial Report: The board was presented with the 2009-2010 budget projections. The projections are based on adjusted averages of the past 3 years for each month. The budget calls for just over a 1% increase in sales from the last fiscal year and the cost of goods remaining about the same. Expenses are projected to decrease a little more than 1% over last year. The bottom line is a projected net income of about $57,000. The board unanimously approved the budget. A comparison balance sheet showed how the last fiscal year ending in July weakened our asset to liability ratio and our debt to equity ratio. Turning our attention to the current fiscal year (August and September), we saw how actual sales exceeded our projections, expenses were 5% below projections and instead of the project net income of $10,000, we actually had a net income of $27,000.

Steve Whitlow’s General Manager report: If the café could increase sales from $29,000-$30,000 to $35,000, they would make money. They can’t cut staff any further. Cost of Goods numbers are much better. The café will continue to be monitored every month with quarterly goals presented. In the grocery store, shrinkage has grown over the last 3 years and last year was the worst. We have installed surveillance cameras that are monitoring customers and the cashiers. HABA is still having issues with shrinkage. This is the first time since the latter part of 2007 or early 2008 that the grocery store hit $300,000 in gross sales back to back for 3 months.

Luke’s report: The FedUsCup contest has furnished us with the first list of customers who are our big spenders. The contest ends on October 31 and the winner will be presented with a Gail Pittman bowl and a banquet prepared by High Noon. We are still working on the Hope Loan. Luke and Tom will meet Friday, October 23 to go over all documents for becoming a consumer cooperative. The opening of the front space was discussed. Karen Parker and Katherine West will be managing Rainbow Fair Trade and Green Services and are hopeful to be open around November 1 and have a grand opening for Fondren Unwrapped on November 19. We have received a quote for security on the Flood Gates to deter theft.

Daniel reported on the grievance policy that stemmed from Sue Smith’s request of the board in August. After talking with Leanne and learning she had prepared a report about grievance, it was decided that if after first going through the proper channels, someone did show up a board meeting seeking the resolution of a grievance, the board would go into an executive session to deal with the situation. It was also decided that it would be good to get a monthly report from Human Resources or Leigh Anne. The motion was approved.

The meeting adjourned at 7:27pm.