Overview of Planning Process:

I. Where are we?
Current situation. Research can answer this question.
II. Where do we want to be?
Target. Sometimes requires compromise to achieve
III. How do we get there?
Ideal - Action Plan

Why do long range planning?

1) To ensure organizational "success"
2) To improve communication between board-staff-owners-volunteers-community….
3) Clarify organizational culture values, roles, responsibilities
4) Establish a common / shared vision for the organization to pursue…

Board Responsibilities:

· Listen to owners / organization
· Think broadly
· An advocate for owners / customers
· Practice representative democracy
· Have a vision-advance the vision
· Pay attention (have full information)
· Plan for contingencies
· Look beneath the surface
· Be vigilant
· Not a hierarchical system - create the circle
· Think holistically
· Take / use input
· Provide structure / lead
· Make choices
· We explain
· We keep moving
· Look beyond, choose where we want to go.
· Be responsible to owners
· Control the targets

Strategic Planning - Initial Brainstorming

Reviewed the Board Work Plan, 2003-2004 and the status of these projects. Considered new items.
1) Process for Allocation of profits
2) Influence NCGA - 2006 Election
3) Community foundation
4) Owner / worker system
5) Owner dividend
6) Debt reduction strategy
7) Second store planning (expansion)
8) Principle-policy & assessment evaluation - future planning & values
a) GM evaluation process
b) Board
c) Organization as a whole
9) Sustainability Issues
10) Business sustainability / opportunities changes needed?
11) Community sustainability
a) Other services? (Daycare, farm…)
12) Small expansion at Main Store
13) Form an environmental sustainability committee for the board.
14) Community visibility - outreach & donations
15) Planning for responding to opportunities and emergencies…
16) Incorporating celebrations and fun.

Discussion and clarification of Strategic Planning Statements

· Allocation of profits - Board decision on how to allocate profits by determining priority & proportionality of funding:
o Patronage refunds
o Community Support
o Education
o Owner Worker Programs
o Foundation
o Debt Reduction
o Business Dev Opportunities
o Capital Investments
· Evaluate membership in NCGA - NCGA will have provisions that allow local autonomy. First Alt will have acceptable representation on Board of NCGA to advocate in best interests of First Alt
· Community Foundation - We shall:
o Decide if establishing a community foundation is indeed a priority target for us and if so…
o Establishment of this Community Foundation will help us raise funds and allocate financial resources so that we may support a community outreach mission.
· Owner Workers - Evaluate the importance of the program and provide appropriate levels of opportunity and funding to reflect evaluation.
· Owner Dividend - Determine priority of funding; set target level of return; build into budget
· Debt Reduction - Monitor First Alt's debt / equity ratio to recommended levels in five years. (Recommended = best available consultants. Five years = best available consultants time frame.
· Expansions:
o Second Store Expansion
o Expand the overall retail floor space and capacity of the North Store
o The Coop could purchase Schmidt's property and expand services to include:
§ Groceries/Bulk
§ Deli
§ Bakery
§ Organic Butcher
§ Garden Shop
§ Sublease Dari-Mart
§ Option: Buy / Lease
· Refine First Alt 's policies, evaluation tools, & processes to ensure GM, Board, and organizational accountability to guiding principles
· Create an environmental sustainability advisory board. Values will be obviously evident in First Alt operations and in community outreach efforts
o Standards for eco-friendly "green", et al will be followed in any construction, renovation…
o Community education programs address issues not only in food production, distribution, purchase, but also transportation, construction, etc.
· Expand South Store - Remodel Main Store to block off portions of the north parking lot and create an outside eating area
· Business development / Opportunities - Plan for sustaining a viable business and considering development into future projects
o For ideas / brainstorms, visions & opportunities
o For emergencies / back-up where we are able to react quickly if necessary
o To take advantage of "timely" situations (i.e. political, economic, etc.)
o Consider developing a contingency fund
· First Alt will take the lead in expanding or establishing regional coops to advance local autonomy health insurance, financial institutions, land ownership / control coops to enhance local autonomy in these areas:
o Health insurance
o Housing
o Daycare
o Farm
o Financial institutions
· Enhance community awareness and visibility of the coop
o Internal & external
o New members
o Events in community
o Not necessarily budget item

Revised list for consideration

1) Allocation of profits
2) NCGA involvement
3) Community Foundation
4) Enhance co-op visibility
5) Debt reduction
6) Planning for Store Expansions (A & B)
7) Refine evaluation tools
8) Create environmental advisory board
9) Regional co-op autonomy

Top 5 Priorities after voting - Ranked by number of votes

1) Allocation of profits
2) Planning for store expansions
3) Refine evaluation tools
4) Regional co-op autonomy
5) Community foundation

Day One (Sept 18) Adjourned 4:45pm

Day Two (Sept 19) Begin 9:05am

Board Present: Colin King, Jill Nishball, Claire Pate, Sandra Helmick, and Joanne McLennan
Staff Present: Michele Adams
Board Advisor: Marcia Shaw
Scribe: Kevin Oder

Discussion of Top 5 Priority List

1) Allocation of Profits
Board plan for re-distribution of profits transition
a. Owner Benefits
i. Sale Days Discount
ii. Patronage Refund
b. Community Support
c. Education
d. Owner Worker Programs
e. Foundation (part of overall community support discussion)
f. Debt Reduction
g. Business Development Opportunities - (First Alt)
h. Reserve for equipment replacement

Discussion of definitions of these items:

a. Owner Benefits
Understood

b. Education
Moved under community support umbrella

c. Community Support
Education (cooking classes, chef's classroom, gardens), school lunch, low income, donations, events. Foundation if set up would fall under here.

d. Owner-worker program
Operational & Support workers

e. Foundation
Moved under community support…it would be a program to allocate community support

f. Debt Reduction:
Understood

g. Business development opportunities:
First Alternative business opportunities that are additional services different from retail operations in nature.

h. Reserve for equipment replacement:
Need clearly defined "capital investment" specifically. Currently equipment needs are paid for our of current year income. Need more information to make a decision allocation. Need to go over equipment and depreciation schedule and project replacement needs with dollars for finance committee to bring some different scenarios for the board to consider.

Revised list for allocation:

1) Owner Benefits
2) Sale days discount
3) Patronage refund
4) Community Support
5) Owner Worker Program
6) Debt Reduction
7) First Alt Business Development
8) Reserves for Capital Replacement

Discussed previous year percentages of expenditures and owner surveys asking how they would like to see expenditures. Discussed weighting of priorities.

Assumptions after discussion:

1) Patronage refunds and owner appreciation days are our highest priorities.
2) Education and Community Support remain a high priority.
3) We are moving toward giving owners the support of community projects (We need a transition plan)
4) We are empowering owners to direct resources toward various community or store projects
5) We are moving toward faster reduction of debt
6) We are reevaluating and refining our owner-worker & support programs towards a cost savings.
7) The Board supports reserving some money to facilitate long term First Alt business development.
8) We will set up reserves to adequately fund equipment replacement.
9) 2005 profits: These assumptions work for 2005; other conditions might change these assumptions in the future
10) 2004 profits: If there is a 2004 available profit, a patronage refund will be given.
11) Self-supporting programs will continue to operate.

#1 Owner Benefits
Determine the process for owners to direct patronage refund (i.e. mail, store, boxes, etc)
GM will do this (Q1 '05 for 2004 profit distribution)
Continue owner sale days as is - 5%, 7% or 10%
Research the Community Fund that is funded by owner benefits for 2005
Board will do this (Q2 '05)

#2 Education and Community Support. (Qtr 1 '04)
To help with the transition year…Consider GM's proposal "Outreach Proposals" option #4.
Board (Hold until late 2005)
Owner Relations Committee's schedule for informing owners of changes
ORC will make timeline for transition (Q1-4 '05)
Plan for redistribution of profits transition
Board (Q2 '05)
Make budget adjustments (Q3 '05)
Owner choices made go into budget for 2006. (Q3 '05)


#3 Owner Worker Program
What percentage does the Board want to allocate to the owner worker program
Board item (Q4 '04)
Create an Ad Hoc committee to create options for the Board to re-evaluate the current owner worker program.
Maybe Dave, Dave, & Kiko (Q1 '05)

#4 Debt Reduction
Finance committee to consider and send recommendation to the board.
Finance Committee (Q4 '04)
After report received from Finance Committee, check with outside experts to confirm finance committee recommendations.
Board item (Q1 '05)

#5 First Alt Business Development
Board & GM will elicit long term proposals for ideas for other business development such as daycare, farm, bakery, catering (2006)

#6 Reserves
GM will direct Michael to go over equipment / depreciation schedule to project upcoming replacement needs.
GM / Michael (Q1 '05)
Define what all is in reserves for equipment, specifically - labels, jargon
Finance Committee (Q2 '05)
Recommendation for ratio / % to put into capital investments based on this replacement schedule
GM (Q2 '05)
Define what all is in reserve for equipment replacement specifically - labels, jargon.
Finance Committee (Q2 '05)

2) Planning Expansions (A Main, B North) GM would bring these proposals to the Board

A. Main
a. Details for out eating area at Main
b. Evanite properties
c. Other…Next 5 years
d. Impact if Intabas ever left.
B. North
a. Schmidt possibilities
b. Miller possibilities
c. City concerns
d. Longer range ideas

3) Refine Evaluation Tools

A. GM Evaluation - Executive Committee will do this with possible help from Max (calendar) and BDC. (4Q '04)
a. For '05, what will GM be evaluated on by Dec '04?
i. Add some qualitative review
ii. More focus on long term business development, bring ideas, info that we need
iii. Monetary targets tied to bonus?
iv. Multi-faceted process
b. Research on how other GM's are evaluated
B. Organization Evaluation
a. Collect some #'s / decide criteria
i. Community
ii. Focus groups
iii. Sales
iv. Shoppers
v. New members
vi. Pos info collection
vii. Evaluating volunteers
C. Board Evaluation
a. Self evaluation
b. Feedback
c. GM
d. Owner Workers
e. Staff

4) Region Co-op Enhancement Outside of First Alt. Colin will follow up.
a. Banking, housing, health, land purchase, energy co-operative
b. Find other coops in our area
c. Explore options for cooperation
d. Begin to investigate market
e. Potential for "conference" on cooperatives pool resources? For what?
f. Report from Laurie Heilman as a resource

5) Community Foundation. Sandra will initiate follow up.
a. Research in 2005
i. IRS info - what are the benefits?
ii. Money to be invested?
iii. Utility for dealing with community support
iv. Board discussion
v. Find an expert to talk to the Board
vi. Is this part of allocation of profits
vii. Who / how controlled
b. What is the mission of the foundation

Discussion of the other items below the top five.

o Enhance coop outreach visibility.
First get information from Marketing / Outreach about where they feel we're at on the status quo and then decide where to go from there
GM Report (1Q '05)
o NCGA
Currently we are in a two-year test run. GM will report back at the end of that period. (2006)
o Create environmental advisory board.
GM will identify resources and report on current practices
Draft plan and members (2005)

Day Two Adjourned: 2:20pm
Board Retreat Follow Up Meeting by Executive Committee: Oct 1 @ 2pm in the Meeting Room