Minutes of November 6, 2009 Annual Members Meeting
Unitarian Universalist Society – Channing Hall
Present:  All board except Shrader (stuck in airport en route from Washington D.C.); GM Hartz; several staff including G. Maybanks, T. Carbrey, S. Catlett, J. Angerer, M. Cole, S. Koepke, R.Moore, P. Brickel, and others; several working members and ~40 members ‘at large’

Sarah Walz, President, called the meeting to order at ~ 7:00 PM, following an excellent buffet supper, socializing, and distribution of the first round of door prizes. She thanked T. Carbrey for her hard work in putting the meeting together and her excellent management of the Earth Source Garden initiative.

Reports
Sarah noted there were no natural disasters this past year, but NPC had to deal with the national economic downturn; she reported that NPC has weathered it well thanks to the hard work of the staff and GM Hartz:  ‘flat’ is the new ‘up’ in business currently. Membership has increased by 2164 to 22,235, and $1.4 million in local products were procured and sold at NPC last year – an increase of 19%. She referred members to her written report in the Election issue of the Catalyst. She then turned the meeting over to GM Hartz.

Matt, like Sarah, referred to the written reports in the Catalyst for more details but emphasized that NPC had no layoffs of staff or cuts in their benefits, and they were given $70,000 in bonuses and a 4% donation to their 401K plans – and, despite there having been essentially ‘flat’ sales (no significant growth), a modest profit was earned, The message from the Strategic Plan member meetings was clearly to sell and rely on more local foods. He noted the problems inherent in being a ‘net food importer’ – a limited amount of food available locally in case of supply shutdown, issues of food security and safety, etc., and cited the leadership of Woodbury County (IA) in promoting local food supplies. Meat, produce, and dairy are areas in which local origin increases have been made and can be increased in future.  Most of the local foods sold at NPC were produced within 25 miles of Iowa City. NPC donated $30,000 to the community during the past year – much of it from the pre-Thanksgiving day weekend shopping event at which 10% of sales were donated to United Way; the event will be repeated this year. He also thanked Theresa Carbrey and all the staff for putting on the dinner this evening.

Hank Madden then gave the Treasurer’s report.  NPC made money this year.  He noted that in this economy, that is a significant achievement. He reported that the board has now paid off the loan taken to acquire the new administrative office space; NPC has no debt now and money in the bank.  Gross margins have been reduced, and Hank said that prices are comparable – for comparable products – at NPC and competing supermarkets. Improved staff productivity and better supply contracts have made these margin reductions possible. Hank said that NPC cannot expand the VB store – the board has had member meetings and is talking about what to do: have a third store? Move to a larger store (in Iowa City)? The VB store has more sales per square foot than any other co-op in the U.S., by far, and there is simply no room for greater capacity at that site; members may therefore be hearing more about the VB store and plans for what to do. The board has again declared a dividend for members this year. Members should be proud of their management team for making these successes possible.

Sarah reiterated the need to consider what to do about the VB store:  the crowding, the flood prone location, etc.; she reminded the members that any change involving another site must be approved by member vote (cf. NPC’s Articles of Incorporation) and encouraged them to read the Catalyst and give the board their ideas.

T. Carbrey and G. Maybanks then distributed the 2nd round of door prizes.

Caroline Dieterle (Secretary) announced the Bylaws and Board Policy changes made by the board in the past year: adding a deadline of 90 days to Sec. 4.7 (Product Change petitions); updating Sec. 6.7 (Board actions without a Meeting) to allow the use of e-mail for items that are time sensitive; and adding a provision to the policy on letters to the Catalyst to deal with factual errors.

Approval of Minutes
It was moved and seconded by members that the minutes of the 2008 Annual Members Meeting be approved.  Voting:  the minutes were approved without dissent.

Member Open Forum
Staff member and NPC member S. Koepke asked that all remember Michael Stutsman, a local grower and NPC supplier, who died in a farm accident during the past year.
Scott then mentioned the Earth Source Gardens:  something he has long wished for and that has been started very successfully.
Scott then noted that the innovation of the forklift at the VB store was, for a time, a great improvement for staff working conditions; but the increased traffic in the store now has made the forklift insufficient:  having no loading dock and insufficient storage space is a large problem in keeping shelves stocked; there is a limit to what efficiency can do to make up for insufficient physical facilities. He also emphasized the need for more space generally and asked that the Earth Souce Garden project be expanded.  He wants to keep the VB store bu add another site. He concluded by saying how much he appreciates the co-operative ideal and meetings such as tonight’s.

A member asked about the possibility of a Cedar Rapids store.  Sarah replied that a locally controlled store would be best; if a core group wants to start one, NPC could provide advice and help. G. Maybanks suggested that C.R. people network with the Backyard Chicken people there.  Ramji reiterated the ‘partnership’ not ‘branch store’ concept; a possible presence in the C.R. Farmers’ Market and possibly filling C.R. orders at a central delivery point are being considered. Richard said that the C.R. city government and commercial interests (e.g., Rockwell Collins) could be of help also in starting a co-op in C.R.

A member suggested raising the store, with parking underneath. Caroline replied that this wouldn’t be feasible because the ‘land’ under the VB store is ‘fill’ – and shoring up the floor of the VB store as part of the store improvements undertaken by the board required two truckloads of cement to fill the holes that had developed as the ’fill’ subsided over the years.

Richard asked whether the members would want to be $5-6 million in debt for a new store.  He, as head of the planning committee, must think about this problem constantly.  Repeated flooding could make it seem like a good idea, but competition from superstores could be a contraindication.  He also noted that any definite proposal must be voted upon by the members – at least in detailed outline with fixed parameters (for location, price, etc.). He invited input from any interested members.

Jen Knights noted that members’ preference has been for ownership rather than leasing – which is why the board purchased the new administrative space.

Sarah pointed out that the CV store is now making a profit, and the decision to go there is now looking much better.
Caroline responded that this good outcome doesn’t mean the board won’t be careful to avoid repeating the mistakes made in CV.

Member Roxanne Mitten spoke about sustainability and how impressed she is that NPC stayed profitable and was able to avoid layoffs and pay cuts.  She also spoke forcefully in favor of expansion of the Earth Source Gardens project. She is very grateful for it and encourages doing more with this initiative.

A member originally from the Duluth co-op and now in Iowa City said he greatly appreciates NPC.

G. Maybanks gave heartfelt thanks to the board for the new office space for staff.

Member Brandon Ross said the 5-cent charge for bags is a good idea.  Matt (GM) said staff orders for bag supplies are down considerably. Approximately $600/month goes to the Crisis Center from bag sales to members who fail to bring their own. A member suggested having it be possible to also donate the 5 cents which is given to people who bring their own bags. (Those who bring their own bags actually save 10 cents: no 5-cent charge for a bag plus 5 cents taken off their sales tab.)

In reply to a member question, purchasing mgr. P. Brickel said that NPC is attempting to make non-organic prices more competitive also – as much as is possible with the suppliers with whom NPC must work.  Matt said everything in th store is there because members want it and buy it (including non-organic items).

A member expressed gratitude for the co-op reciprocity policy (member privileges for members of co-ops in other towns)

Caroline told members about NPC’s new gift card/convenience cards, which, because of the new POS system, now are processed entirely ‘in-house’ – thereby preventing the errors experienced by members using the old system and saving NPC from having to pay any credit card charges; total credit card charges last year amounted to well over $200,000. She encouraged members to try them and help reduce that sum.

A member said NPC has changed their whole way of shopping, cooking, and eating; she expressed her gratitude for this.

T. Carbrey then distributed the final round of door prizes.

Caroline announced the election returns:
Sarah Walz and Hank Madden (both running unopposed) were re-elected.  There were 358 ballots received, of which 56 were spoiled; 302 ballots were counted.

Ramji moved that the meeting be adjourned.

The meeting was adjourned, by consensus, at 8:28 PM.

____________________    __________________________
Sarah Walz, President         Caroline Dieterle, Secretary