Board of Directors
MEETING MINUTES
July 27, 2022 - 5:30 pm
Hosted in EFC Community Room, 1341 W. 26th
Attending: President - Shari Gross, Vice President - Alison Kaminski, Secretary - Kevin Schaaf, Treasurer - Michael Barron; Directors: Derek Golembeski, Liz Bugbee, Amanda Gates, Joelyn Bush, Chauncey Dumbuya Brown, Amanda Gates, Derek Golembeski
Staff Personnel: General Manager - LeAnna Nieratko; Marketing Manager - Heidi Yeagle Guests: Marnie Foss, Alice Nick, Amanda Lechner, Maggie Gleason
AGENDA:
Shari Gross called the meeting to order at 5:30 PM.
Member-owner Comments
Maggie Gleason asked about a comment she remembered hearing at the Annual Meeting regarding the co-op’s finances, that not all the figures were ready at that time and they would be provided later. Maggie stated that she has not seen this information yet and asked why the board hasn’t ensured it was provided. LeAnna Nieratko asked if maybe the comment Maggie referred to was in relation to any potential changes to the figures? Michael Barron stated that he would look into the history and if there was anything to update, he would do so.
Review of Last Month’s Minutes; K. Schaaf
No corrections or additions were requested.
Motion was made by Michael Barron to accept the June 2022 Minutes as written. Chauncey Dumbuya Brown seconded. All were in favor. Motion passed.
CEO/GM Reporting; L. Nieratko
LeAnna reported that overall sales were up 2% year-over-year in June, although basket sizes are smaller. Inflation has caused many consumers to cut back on “luxury” items, so management will focus on providing a wide variety of food staples, which may mean a temporary reduction in certain “luxury” items.
LeAnna informed the board that the co-op’s cash balance did dip below the threshold for days cash-on-hand several times throughout this period. This is related to the cash burn of downtown operations due to overstaffing and reformulating the product mix to meet the actual sales of the location. She has alerted the EDDC to her concern around the rate of cash burn and has discussed several viable options to regain cash stability.
Sales at 26th St. were up 5% compared to plan. Expenses for June were typical except for cash down payments paid out on the parking lot and the new refrigerator unit on the roof. Twenty-five new owners joined in June, beating both plan and last year. Le Anna noted that this is the first month in the adjusted business plan, so we should see 26th street coming in closer to a higher plan. In July we feature the 20% case sale for member-owners which is typically a driver for 26th street shoppers.
The Health Department inspected 26th St. on July 26th, and one violation was reported. Some juice was not cold enough, with faulty thermometers determined to be the root cause. The thermometers were immediately replaced, but some juice had to be discarded.
Sales at the Downtown location continue to be lower than expected. We projected $14,000/week but are still averaging $10,000. We continue to analyze potential customers and seek to increase foot traffic into the store, as well as our average basket in the store. The primary expenses for Downtown are labor and inventory. Our labor is very high at 71%, with our inventory costs on perishables continuing to be very high. Both levers are controllable and manageable but take changes in process that take time. We are reducing our perishable product mix and changing our scheduling strategies to adapt while we try to increase sales. Produce continues to be a draw for Downtown, with challenges around maintaining an adequate selection without significant spoilage. Six new members joined Downtown, which is less than originally planned, but higher as a percentage of total sales. Delivery launched in July - while off to a slow start, the hope is that it will catch on & help increase sales in August.
Shari asked if we have a target start date for WebCart; LeAnna is hoping for October or November, Downtown only to begin. Alison asked LeAnna to show in her GM Report the percentage of total sales by department for both stores (July’s report shows for Downtown only). Chauncey asked if board members can participate in community outreach events. LeAnna stated that there is some training required in order to do so & we can discuss further if anyone does want to participate.
Policy Compliance: A - Ends
A1. Our Erie community will flourish as a result of our support for a local and value-based food system, our efforts to foster a culture of inclusion, and our commitment to a living wage.
Local and value-based food system
● EFC partnered with and supported The Sisters of St. Joseph Farmer’s Market and Emmaus Soup Kitchen.
● Spoilage was donated from the 26th St. store to programs through the Second Harvest Food Bank including climate Change. We donated spoilage from the Downtown store to the Erie City Mission.
● Participation in the Perry Square Farmers Markets.
● On the back end of things, Marketing created an online form for potential local businesses to fill out. This is sent directly to buyers. This has streamlined the process and helped to find new
artisans in the community. With the information, a brochure was created for customers, with labels to identify the products on the shelf.
● On March 15, 2022, a second location was opened in the Flagship City Public Market which is the zip code with the lowest median income in the United States.
In July accessibility programs, LEMON and LIME, will be launched to increase member-ownership and food accessibility to low-income shoppers in our community.
Culture of inclusion
● In July of 2021, we changed our name to Erie Food Co-op. This was to define our purpose more clearly as Whole Foods Cooperative was associated with high prices and exclusivity. The name change received overwhelmingly positive feedback!
● EFC promotes local events that our member-owners have expressed interest in such as Erie Art Museum Gallery Nights.
● EFC partnered with some great non-profits including, but not limited to: Lake Erie Arboretum at Frontier (LEAF), Erie’s Black Wall Street, NWPA Pride, and Opened Eyes.
● Staff and Board attendees march in the NWPA Pride parade under the Erie Food Co-op banner. ● In October, partnered with OpenedEyes to do an unconscious bias awareness training with all staff.
● In early ’22, all management participated in a 4-course diversity, equity and inclusion program from TMI Consulting which included: Unconscious Bias 101, LGBTQ+ 101, Allyship 101, Diversity, Equity & Inclusion 101.
Commitment to a Living Wage
The median wage at the Co-op for full-time employees is $16.46, for part-time it is $13.21. According to MIT, the living wage for Erie County is $15.79, a 25% increase over the year before. The Co-op has prioritized full-time employment and benefits above a living wage where possible. While part-time median is currently under MIT’s living wage, part-time employees at the Co-op accrue PTO which is not typical for part-time roles of this nature.
● At the time of this report, EFC has 50 employees, 37 are full-time and 13 are part-time. This is a higher percentage of full-time employees of similar sized retail organizations meaning the Co-op provides health insurance benefits to a larger portion of staff.
● In addition, the Co-op offers free product each month and a labor gain-share program. ● The Cop-op’s average pay is well above average wages in Erie county by position as reported by the Bureau of Labor Statistics
A2. Our environment will be minimally impacted by the Co-op's own practices, and our members, neighbors, and civic leaders will be able to follow our example toward a greener future.
Reduction of Harmful Environmental Impact
● EFC is a member of the Green Building alliance which includes annual energy audits with recommendations to improve. In July 2021, our 26th street Store Manager, Chad, was certified as a Green Building Alliance Technician.
● Reinstituted our $.05 credit for reusable containers and bags
● Use of compostable straws and cutlery made of 100% recycled plastics
Increasing Positive Environmental Impact
● EFC started full cycle gardening with Conversation Compost, where we sell the soil made of what has been composted through their service.
● EFC has also continued our Partnership with Lake Erie Arboretum at Frontier (LEAF) through our “leaves for leaf” program that allows us to plant one tree every year while providing additional funds toward the re-leaf program which has the goal to plant one tree for each person living in Erie County. In July 2021, we set a goal of selling 1,000 leaves for $1 each to help in the purchase of a serviceberry (this is a native tree to PA) tree with a plaque to commemorate the commitment of our shoppers. We ended up selling 2,046 “leaves”! Additional funds were donated directly to LEAF.
A3. Members, shoppers, and community will look to the Co-op as a trusted resource for information about nutrition, health, sustainability, and cooking practices. Our civic leaders will look to the Co-op as a trusted resource on the Cooperative business model.
● For education on nutrition, health, sustainability and cooking practices, we put out a monthly newsletter that hits on one or more of these topics in each edition.
● We began working with Erie Food Tours Downtown: The Erie Food Tours alone have brought in 97 people between 5/20/22 and 6/18/22.
● Continuing education on the cooperative business model:
○ Held listening session at the J. Schmidt Towers
○ Met with leadership from HANDs and the Erie Housing Authority
○ Met with community groups such as Our West Bayfront and the Penn State Entrepreneur Club
○ Went on podcasts such as Idiotville and BuddyCast
○ Presented our Downtown store project at the Consumer Cooperative Management Association’s (CCMA) annual conference.
○ Went on news programs such as Giving You the Business, and were featured in the newspaper several times.
Discussion:
Joelyn Bush mentioned that someone who wished to remain anonymous commented to her on the condition of the 26th St. store recently. Joelyn asked how she should respond to such questions. LeAnna stated that the best way is to encourage member-owners to provide feedback directly to the co-op via comment cards, by speaking to employees/managers, etc.
Motion was made by Derek Golembeski to accept the GM’s Report and compliance with Policy A - Ends. Chauncey Dumbuya Brown seconded. All were in favor. Motion passed.
Board Policy Evaluation; K. Schaaf
C7 - Board Committee Principles
All board members stated compliance with all sections of Policy C7 - Board Committee Principles. Joelyn Bush and Liz Bugbee both asked about committee charters, and it was noted that the Committee Guidelines document is representative of committee charters.
Motion was made by Liz Bugbee to accept the Board Policy Evaluation review of Policy C7 - Board Committee Principles. Joelyn Bush seconded. All were in favor. Motion passed.
**New Business:**
● Officer Succession Planning
Shari Gross began the discussion by stating that she has one year left in her current term and would like to use that time to help someone else grow into the role of President. Shari noted that the intent of the discussion at this time was to broach the subject, which would be discussed further during the upcoming board retreat. Chauncey asked about the amount of time the President normally spends on the role each month, in addition to time spent at the board meeting, etc. Shari noted that it can vary, but that there is certainly more time involved for the President than for board members at large. Joelyn stated that the makeup of the current board and the current officers enticed her to rejoin the board after a less-than-ideal previous stint.
● Product Policy Committee Update
Prior to the board meeting, the Product Policy Committee met to discuss potential revisions to the current policy. LeAnna mentioned the idea of a product matrix that could be used to help guide decisions. The matrix would be composed of attributes such as accessibility; nutritional content; ethically sourced; local; organic; meets dietary needs; staple. She stated that there should be an open dialog between member-owners and the board as to what the policy should allow. Joelyn said that it will be especially important to communicate the updated policy once finalized. Shari stated that the product policy is a reflection of our identity as a co-op.
● Nominating Committee Update
Kevin reported that the timeline for activities leading up to and including the election had been agreed upon. Heidi and the Marketing team did a great job creating application pamphlets and getting signage up in the store, on the web page, and on social media. The deadline for applications is August 15th, which will give the Nominating Committee time to conduct interviews with applicants prior to the deadline (September 15th) to provide candidate photos & statements to the Marketing team in time for inclusion in the October newsletter. Another update will be provided during the August board meeting.
● Annual Meeting Planning
The 2022 Annual Meeting will be held on October 23rd, and will double as the October board meeting. LeAnna asked the annual meeting planning committee to pull out bullet points from our Ends to be expanded upon & used as somewhat of a theme during the meeting. Location, time, etc., are still to be finalized.
● Dinner with Molly
Shari asked if anyone would like to attend dinner with Molly Snell-Larch of Columinate on Saturday, August 13th. Plans will be finalized shortly.
Closure:
Next board meeting is Aug. 24, 2022 at 5:30pm.
Board and Management retreat is Sunday August 14th at Asbury Woods, from 9 am to 4 pm.
Next PG reviews:
○ CEO/GM - B5 - Treatment of Customers
○ Board - D5 - CEO/GM Treatment
Motion was made by Michael Barron to adjourn the meeting. Amanda Gates seconded. Meeting adjourned at 7:03 PM.
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Minutes respectfully submitted by Kevin Schaaf, Secretary.