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Karma Co-operative Annual General Meeting Monday, October 20, 2014, 6:30pm - 9:30pm
Booklet Contents
Introduction ........................................................................................................................ 2
Agenda ........................................................................................................................ 3
2013 AGM minutes ............................................................................................................ 4
............................................................................................................ 11
Motion to change fiscal year end ........................................................................................ 14
........................................................................ 15
................................................................................................ 17
Committee reports ............................................................................................................ 19 Building Committee ................................................................................................ 19
Chronicle Committee ................................................................................................ 19 Community Development Committee ...................................................................... 21 Finance Committee ................................................................................................ 22 Food Issues Committee .................................................................................... 23 Orientation Committee ................................................................................ 24 Social Events Committee .................................................................................... 25
Board candidate bios ............................................................................................................ 26 Audited Financial Statements ........................................................................................ 27
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Introduction Hello fellow Karma member, Welcome to your Annual General Meeting! This meeting is an opportunity for you to exercise your democratic rights as a member and learn more about the stoall appropriate times during the meeting. As a member, you are are at the centre of our success. A big thanks to returning members. Your dedication over the years has seen Karma through the good times and the bad times. Your continued energy and your co-op wisdom are an important part of our future. While reading this booklet please be sure to pay particular attention to the following items that require your vote: the agenda, the 2013 AGM minutes, the audited financial statements, the motion to update the financial year end, and Board candidate biographies. Please note that while all are welcome to attend this AGM, your membership fees need to be paid up to September 22, 2014 in order to vote. Overdue membership fees can be paid at the store leading up to the AGM, or at the registration table before the start of the meeting. Remember to take a moment to say hello to other members before we start. In co-operation, Karma Co-op Board
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Agenda
5:45 Doors open
Meeting registration begins Snacks and light refreshments served in the meeting room
6:25 Call to order 6:30 Approval of the agenda
Approval of the minutes of the 2013 Annual General Meeting
6:35 Special co-op speakers 6:50 7:05 Discussion of the two reports 7:35 Motions to receive the financial statements and to reappoint the Auditors 7:40 Discussion and motion on updating the financial year-end date in our by-laws 7:50 Board report 8:00 8:10 8:40 Motions to rec 8:45 Introduction of committees and discussion of committee reports 9:00 Review of election procedures and nominations for 4 two-year and 5 one-year terms
9:10 Ballot, if required, for the Board positions, with 10 minute break for ballot collection 9:25 Announcement of winners of the election, if required
Nominations and second ballot, if required
9:30 Adjournment and cleanup If no ballots are required, we will take questions and suggestions from the floor or return to tabled business.
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2013 AGM Minutes
Karma Co-operative Minutes for the Annual General Meeting
Monday, October 21, 2013 Friends House (60 Lowther Avenue)
Present: 65 members and 3 guests Guests: Auditor Jerry Berman (Berman, Lofchick & Lum, LLP); Loretta McHenry (London Food Co-op); and Hannah Renglich (Local Organic Food Co-ops Network; Ontario Natural Food Co-op; West End Food Co-op) Chair: Arel Agnew, President, Board of Directors
Alex Speers-Roesch, VP & Secretary, Board of Directors Minute Taker: Suzanne Methot 1. Call to Order Arel Agnew called the meeting to order at 6:30 pm. Board members introduced themselves. Meeting was recorded in digital form with no objections from attendees. 2. Approval of Agenda Motion by Caitlin Smith to approve the agenda. Seconded by Karen Kaplan. Carried. 3. Approval of Minutes from 2011 and 2012 AGMs There were no questions with regards to the 2012 AGM minutes. There was a comment from Howard Kaplan praising the speed with which the minutes were released for comment. Motion by Lauren St. Louis to accept the minutes as presented. Seconded by a member in good standing. Carried. There were no questions with regards to the 2011 AGM minutes. Motion by Ernst Von Bezold to accept the minutes as presented. Seconded by a member in good standing. Carried. 4. Special Guest Speakers
Food Co-ops Network, Ontario Natural Food Co-op, and West End Food Co-op) and Loretta McHenry (from the London Food Co- -op summit but lots of love. People care about Karma as an organization. To talk about why they love Karma, the
Loretta McHenry: The London Co-op Store was incorporated in 1970. It is a lot like Karma. Members are key to keeping the co-op movement going. The co-op movement is important in Canada because of its unique business model: member-owned, working members, and volunteer boards of directors. Many co-ops in the U.S. have a for-
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profit business model. The London store is a not for profit. To stay successful, co-ops need to refocus on members. Loretta met with Acting General Manager Talia McGuire at the Local Organic Food Network Co-op summit and was able to give Talia ideas on helping Karma come back to life. Whenever we need assistance, Karma can call Loretta. She is also on the board of the Ontario Natural Food Co-op (ONFC). Loretta also encouraged Karma staff and members to attend the Tools for Co-ops workshop (http://www.toolsconference.ca/) to get up to speed on the latest co-op issues. Hannah Renglich: Hannah works at Local Organic Food Network, which Karma is a part of, and the ONFC. When Karma was in danger of closing, she worked with Acting GM Talia McGuire on sales and marketing. When Talia attended the Local Organic Food Network Co-op summit last year, there was much concern and interest in the co-op
predicament, and received advice and feedback from other attendees. There were 12 offers of support. The ONFC offered discounts, and other co-ops assisted with marketing. Hannah thanked Karma for being a model for other co-ops in the province the movement has grown from 17 co-ops to over 50 today province-wide. Cooperation between members is essential for co-op survival, but cooperation between co-ops is also essential to the co-op movement. 5. Jerry Berman presented the audited financial reports on behalf of Berman, Lofchick, & Lum, LLP. He highlighted the fact that gross profit percentage increased, but the store lost money in retail operations. However, the operating loss was brought down in comparison to the previous year, which meant that Karma had a much better year. Expenses were high, so the store reduced expenses, helping the overall picture. Inventory was also down, which helped with
Jerry recommended that the Board and Treasurer keep close watch on the numbers for next year to ensure there is no slippage from these gains. Overall, Karma is not in the negative and is getting much better. Jerry concluded with a comment that Karma has always been up and down the store has had great years, really good years, bad years, and really bad years. It seems to be the nature of the organization.
AGM Booklet, which showed that sales were up, the gross profit margin was up, and costs and loss were lower. He attributed these trends to several factors:
between the months of March and June was successful; sales were consistently higher by almost 20%; and
operations by closing on Mondays, and keeping inventory low to improve cash flow). These adjustments mean that Karma can survive lower sales.
Yves called attention to the graph on page 23 of the AGM Booklet, which showed that the store was making positive income. The net income changed because loss was down and income has been up since February even in the traditionally slow sales periods of July and August. Overall, the fortunes of the co-op are turning around. 6. There were a number of comments which were addressed by the auditor, Treasurer, or Board:
What effect has closing Mondays had on staff? Talia replied that she is trying to reallocate staff hours, but the store has had to lay off one staff member.
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The store can play with expenses, outstanding loans to members, and the credit line, and markup/prices, but should concentrate on increasing sales so the solution is for members to buy as much as they can at our store.
Have there been issues with staffing costs? Talia replied that there has been overtime, and times when there have been more than two pay periods in a month.
Donald Altman replied that we are paying a good rate, 3.5%.
Now that the store is using Smart Vendor, is it possible to reduce staff hours by having members do a self-checkout? That would also put less pressure on the store to fill work shifts. Jerry Berman replied that it
staff would still have to be involved.
What is the issue with regards to filling cash shifts, as many are not filled by member labour? Lauren St. Louis replied that the Board is working on member involvement. Although the committees are hard working, filling cash shifts is an issue. Talia replied that the timing is tricky as many people work daytime hours and cannot be at the store.
Is the Smart Vendor system helping us manage inventory better? Yves Cheung replied that it is giving us a better idea, but we are still trying to solve glitches.
Does Smart Vendor help us to de-list and reduce the amount of inventory in the store? Talia replied that it is helping us make better buying decisions. Smart Vendor tracks what sells, so we can take out products that do not sell. It is not currently providing an inventory count, but it is helping.
7. Motions to Receive the Financial Statements and Reappoint the Auditors Motion by Linda Rosengarten to receive the audited financial statements. Seconded by Howard Kaplan. Carried. Motion by Donald Altman to reappoint Berman, Lofchick & Lum, LLP as auditors. Seconded by Kevin Taylor. Carried. 8. Discussion and Motion on Allowing Non-Member Shopping at Karma Paul Danyluk, the Co-AGM, the Board looked at other co- rom and brainstorming with committee members and cashiers, the board came to two conclusions: there was a desire to simplify the membership structure, and there was a desire to open the store to non-members. Many members felt that opening the store to non-member shopping would fight the sense of exclusivity at Karma. An additional benefit would be that the store would make more money. Non-members shopping would also be a route to membership for those who might not come to the co-op at all, thus increasing our membership overall. There were a number of comments and questions about the motion, and about non-member/trial shoppers, which were addressed by various members of the Board and the Acting General Manager:
What would non-members be missing out on? Non-members would not have the right to participate in the democratic life of the store or in the work side of the store (e.g. working member shifts or sitting on committees or the Board). They would only be shoppers, not members, and as such, they would not be able to make changes to the organization as voting members can.
Selling only to members is a form of exclusivity that turns people off and prevents Karma from engaging with the community. The example of families at Palmerston Public School was given. We could increase our sales,
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and maybe our membership, if people could run over and buy stuff when they drop off and pick up their kids. We could also advertise workshops to the wider community if non-members were allowed to attend. This is the right way to go. The board recently passed a motion so that non-members in the wider community can attend Karma events.
Would non-members be allowed to place special orders? directors. On the one hand, this marketing intelligence will allow us to discover more sales and learn about potential items to carry in the store on a permanent basis (depending on product sales sustainability and connection to Karma's values). Non-members may have to pre-pay for special orders; various options will be discussed.
Has any research been conducted with regards to non-members, e.g., what percentage of overall sales might originate from that group? How would this affect the feeling of community at the store? If we take the London Food Co-op as an example, we could expect less than 10% of our overall sales to be purchased by non-members. Under co-op law, 50% of all sales must be to members.
-op should remain a member-based structure or it would change Karma into Whole Foods. But what is the benefit to members for being a member? Serial guest shoppers used to be allowed.
Are guest shoppers tracked? All shoppers have their own account, so guest shoppers are warned when their 30 days are up. They are then asked if they would like to join the co-op and thereby continue their shopping at Karma. This is being enforced.
What kind of follow-through would there be with trial shoppers, especially with regards to getting people to take out loans? What process are we putting in place to ensure that we present trial shoppers with information and the opportunity to become members? We cannot address this here because we have not thought it out yet (before the potential passing of the motion), but how we do this is something the Board is currently examining.
-members to join we have lost members that way. The board recently revised the policy around hours and lapsed memberships lapsed members are now switched to percentage rated membership after two months so they never owe more than
our definition of what a lapsed member is. There are now more options for members who have lapsed, including the cap and speaking to the GM and making arrangements. People can also ask to have their membership temporarily suspended if they know they will be away or not shopping at Karma. [The full
a lapsed member to be a member who has not shopped or paid their membership fees in three (3) months. We encourage recently lapsed members to pay their outstanding membership fees and hours. However, the board gives the General Manager discretion to waive outstanding membership fees and member labour hours for the reinstatement of lapsed members. In the case in which a member is repeatedly lapsed and returns, the GM
Non-members should put down a deposit or pay ahead of time when they make special orders. The board will
discuss this with the GM. When the ONFC opened to non-members, what was the result? They now have two categories non-members
and buying clubs/co-ops. It led to more memberships in the co-op. There are issues with one parent being a member but the other parent not so the non-member parent will go
elsewhere if s/he ca -parent family to find four hours to work every month. Is there a solution for households, to make it easier for people to shop together? This is an important issue; the Board will examine it in the coming year.
Communication with and to membership is crucial as regards the benefit of being a member. It will also be crucial in making non-member shopping a success, along with encouraging people to take out loans and turn
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non-members into members at the cash if they are shopping a lot. Motion by Paul Danyluk to allow non-members to shop at Karma. Seconded by Ernst von Bezold Two members opposed: Charles Danzker and one member who declined to be on the record. Carried. 9. Discussion and Motion Paul Danyluk provided some context for this motion. How can we make Karma accessible and more understandable? The board looked at fusing some membership categories together and deleting other categories. We ran reports on how members were shopping, and we discovered that we needed many different categories in order for membership to work for different members. We needed to break it open and give members and prospective members the advantage of having all sorts of subsets of shoppers/members. There were a number of comments and questions about the motion, which were addressed by various members of the Board:
The new categories offer more clarity. Why is the Trial Shopper category different from the Guest Shopper category? We tried to name each
category with a positive name. These two categories represent different types of shoppers. We decided not to -
I am over 65 and still working member labour at Karma, so perhaps we should adjust the description of the Work-Exempt Membership? Members must be over 65 to be work exempt (among other exemptions), but they do not have to become work exempt.
Has the Board discussed mitigating circumstances and people abusing/misusing categories? Smart Vendor tracks who is shopping and what kind of membership they have. This motion is just about clearing up the language and making things more understandable. It is not about tracking potential abuse/misuse.
How does one get to be in the Percentage-Rated category? Members can choose it instead of working every month.
Why is there a Flat-Fee Membership and a Percentage- The difference is that Flat-Fee is a $25 payment and the Percentage-Rated is 10% on all purchases. They complement each other but are for members who choose not to work.
Motion by Paul Danyluk to rename Karma membership categories. Seconded by Linda Rosengarten. Carried. 10. Board Report President Arel Agnew did not summarize the Board Report as the meeting was behind schedule. Members were asked if there were any comments or questions about the Board Report, as presented in the AGM Booklet. There were no comments or questions. The membership offered their applause to the Board of Directors in appreciation for good work done over the previous year. 11.
hard-working staff, especially in the past year when there was insecurity as regards their jobs. Talia also
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the Community Development Committee, who helped the store pull through and survive a difficult time. Talia said,
Howard Kaplan for being her tech-support person, and to all members for shopping more.
one-month trial shop period has boosted sales by allowing people to shop more than once before having to decide on becoming a members. Conversion rates have been better because the month-long period gives them a better opportunity to understand the store and the co-op movement and become more invested. The trial shop period also combats the idea that Karma is closed or exclusive and gives people more time to become knowledgeable about the store, which will lead to fewer lapsed memberships over time. The trial shop voucher has been a good marketing tool and outreach strategy. The monthly feature flyers have also played a part in increasing sales; the store now has a stronger product promotion
ices and getting the best deals for members. Buyers have also been monitoring current inventory levels much more carefully. The new system for bulk items (by product bar code rather than category) and the scanning technology at the cash mean better inventory tracking and more efficient checkout, which also helps the store track what sells and what does not and with what frequency. We changed Smart Vendor to make the surcharge more understandable so that the sticker price is the price that flat-rated members pay. There has been more member engagement and better communication with members. The monthly e-newsletter to members has contributed to people feeling more informed, which converts into more involvement and engagement. Currently, Karma is pursuing two partnerships: one with the High Park Day School and one with some fourth year Social Economy students from York University. Students from these programs will be working at the store and assisting the committees. Talia feels that partnerships are an important marketing tool and is investigating the possibility of developing a University of Toronto marketing campaign that targets students. Talia is also ordering T-shirts and tote bags with the Karma logo as a marketing tool. New bulk bins are on her current wish list. This year, Karma made stronger ties with the larger co-op community, including the West End Food Co-op. After her report,
12. Discussion of the Board Report and Acting General Ma Art Jacobs said he would support Talia being appointed as GM instead of her current position as Acting GM. Lauren St. Louis said that the media attention garnered when Karma was in danger of closing was not intentionally sought the board communicated the situation to members, it was shared to Reddit, and it went viral. Committee members who were present at the meeting stood up to be recognized and received applause. 13. s Report Motion by Alex Speers-Roesch to receive both reports. Seconded by Arel Agnew. Carried. 14. Nominations for Five Two-Year Board Terms One person had already put their name forward (Lauren St. Louis).
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Stephen Targett nominated himself. Roberta Benson nominated herself. All candidates were acclaimed to the Karma Co-op Board of Directors. Arel Agnew asked if there were any nominations for a one-year term. There were no nominations. 15. Other Business There were two questions/comments from the membership:
Will there be an event to mark the opening up of Karma to non-member shopping? There are no current
This has been one of the sweetest AGMs are getting from the board.
16. Raffle Draw
the gift certificates came from the Board members. 17. Adjournment Motion to adjourn the meeting. Seconded by Arel Agnew. Carried. Meeting adjourned at 8:46 pm. The 2013 AGM Booklet, which contains audited statements and all reports, can be viewed at http://www.karmacoop.org/wp-content/uploads/2013/10/FINAL-Karma-AGM-2013-Booklet.pdf.
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Submitted by Yves Cheung, Treasurer
-op and we are back in the
black after a few straight years of losses. Two years ago, in our 2012 AGM report, it was stated tha
-op has lost almost $83,000 two years ago. Responding to the record losses, the Board has since then taken a number of cautious measures including: improvement in inventory control, reduction of store hours, streamlining store operations, improved sales & marketing strategies, enhancement of our membership recruitment program and extensive media coverage. Thanks to the efforts by our staff, the committees and the Board, we managed to reduce our losses to approximately $49,500 in the financial year 2012-2013 (as presented at the 2013 AGM). With our continued efforts, Karma Coop has managed to post $14,000 of net profits in our past financial year (2013-2014). We have also incurred another $4,700 of surplus from the membership operation. As a reminder, the fiscal year presented in this report (2013-2014) covers the months June 1st, 2013 through May 31st, 2014, as demonstrated in detail on the statements at the end of the AGM booklet. The transition between fiscal years is always marked by taking a careful inventory of our goods for sale, under the supervision of the auditors. We also conduct an unsupervised inventory about halfway through each fiscal year. Our revenue (sales, including flat fees and surcharges) in the past financial year is recorded at $1,427,969, which is 13.1% improvement from what was observed in the 2012-2013 financial year ($1,261,672). Our gross profit has increased to $334,786 and our gross profit margin has improved from 22.83% to 23.44% . The improvements in gross profit margin, combined with a $25,073 decline in expenses, led to the $14,000 in net operating profits as mentioned earlier.
So are we there yet? Did Karma fully recover from the dire financial situation we have experienced two years ago? Karma Co- (1) Sales improvement The combined marketing and advertising efforts by our staff, the committees and the Board has significantly improved our sales last year. However, our annual sales is still slightly below the levels we have experienced back in 2010. If there is one way w
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(2) Gross Profit Margin improvement - better inventory management & shrinkage control In addition to our increased sales, another reason Karma Coop is in the black this year is a direct result of the improved
control. Our goal is to maintain the current level of gross profit margin as the sales keep improving.
(3) Controlling our expenses
report in the 2013 AGM, we have successfully reduced our expenses by reducing store hours and streamlining our operations. Total expenses are at their lowest level since 2009. However, it is important to note we have spent a
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significant amount of money recently on upgrading and repairing our aging HVAC and freezer storage system. It has put a significant strain on our finances. (4) Line of Credit Alterna Savings & Credit Union Ltd.
(LOC) at an interest rate of Prime + 0.5%. Alterna has proposed to reduce and restructure our LOC. After the initial discussion, the LOC amount has been temporarily reduced to $230,000 and the interest rate was increased by 1% (now at Prime + 1.5%). The negotiation is currently under progress and LOC into two subclasses: Subclass 1 - $150K, 15-yr Term Loan with an interest rate of Prime + 0.5%. This loan needs to be paid down over time (meaning that we have to contribute both principal and interest payment) and;
Subclass 2 - $50K LOC with an interest rate of Prime + 1.5%. This LOC is similar to our current LOC (meaning that we only need to pay the interest, repayment of principal is ideal but optional). The amount and the term presented in each subclass were based on a document received from Alterna back in May
2014 and the amount is subject to changes based on the result of our current negotiations. The creation of subclass 1, a term loan that requires repayment in principal would put additional strain on our finance as we have the obligation to repay a portion of the principal on a monthly basis. In addition, the reduction in the revolving LOC amount would severely limit our ability to incur any significant expenses in the near future.
I will present the following motions at the appropriate times: The General Meeting hereby receives the audited financial statements as approved by the Board, the Auditors' report on the statements, and the Treasurer's report. The General Meeting hereby reappoints Berman, Lofchick & Lum LLP as the auditor for Karma Co-operative, Inc. for the fiscal year ending May 31, 2015.
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Motion to Change Fiscal Year End Submitted by Yves Cheung, Treasurer
For many years, it has been Karma's practice to terminate each fiscal year on the last day of May, even though the by-laws specify the last Saturday instead. This past spring, the Finance Committee considered the advantages and disadvantages of terminating the fiscal year on a fixed weekday rather than on the last day of May, and it confirmed that the current practice is the more practical choice. Therefore, it recommended the proposed amendment, to bring our by-laws into conformance with the actual practice. Motion to change Article XI - Fiscal Year to the following: ARTICLE XI FISCAL YEAR
1. The financial or fiscal year of the co-operative shall terminate on the last day of May in each year.
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Report Submitted by Alex Speers-Roesch, President
Dear Karma Co-operative members,
a small profit this past year, for the first time in years. This is fantastic news, and a direct consequence of the
General Manager, committees and board, and the commitment of members to our co-op. However, the limit on our Line of Credit (LOC), which is held by Alterna Credit Union, has been lowered by $70,000, to a limit of $230,000. This means our situation is still tenuous. If we hit the limit of our line of credit, we will be forced to close. We are currently carrying approximately $150,000 on our LOC. Thus, while we have managed to turn things around, so that we are now making rather than losing money, we are still uncomfortably close to cash flow insolvency. We have very limited ability to handle unexpected shocks, such as a large expense or a downturn in sales. So, while we are in a much better spot than we were at this time last year, we are not out of the woods yet. Early in 2014 we implemented the Guest Shopper motion from the 2013 AGM, and since March, Guest Shoppers, without a membership, have been purchasing items from Karma at a 15% markup. Guest Shoppers generally spend $1,000 to $2,000 per month at Karma, a small but significant amount. The other major motion from the 2013 AGM, around the names of membership categories, was also implemented. We have upto reflect the change. Our General Manager, Talia McGuire, went on maternity leave in June and had a baby boy in July. The board is happy to welcome little Camden into the world.
job in her new role, and Karma continues its steady improvement under her management.
er labour system. Shortages of member labour continue to be a problem throughout Karma, particularly at cash, clean up, and on the board. The difficult reality we face is that there is much more work to be done in running Karma properly than we have member labour to do it. The board
resources are being allocated to different types of work. The results were interesting, and point to the basic need to increase the number of member labour hours being worked by the membership each month. This can be achieved either by increasing the number of working members or increasing the number of hours each member works each month. Flat fees and percentage-rated surcharges are important sources of income for Karma, so generally speaking the best way to increase the number of working members is simply to increase the number of members overall. So as with our financial woes, a key solution to this problem is to bring in more members. All this said, it should be kept in mind that we can also help address the shortage of member labour by hiring staff or other non-members to do more of the work traditionally done by the membership. Another aspect of the problem, and one which we hope to devote more attention to in the coming year, is the
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members are doing for their hours to increase both the contribution that labour makes to the co-op and the level of engagement and commitment members have to the labour they do. Karma is run by a Board of Directors elected from the membership. The next election will take place on October 20, 2014 at the Karma AGM. We need seven new drole in Karma's growth and continuation, and a highly rewarding way to earn your member labour hours. Over the past year we had to purchase two new freezers and a new HVAC (heating, ventilation, and air conditioning) system for the store. While these represent a significant capital cost, the new HVAC is much more efficient than our old one and we expect that it will pay for itself in energy savings over the coming years. To help foster an atmosphere of mutual respect at Karma, we adopted the following Code of Conduct for all members,
Karma Co-op is a not for profit, member-owned co-op. Each one of us can contribute to making the co-op a welcoming space by being considerate of others. It is expected that all who participate at the co-op treat each other with respect and dignity. Any disrespectful or abusive behaviour may result in a refusal of service. We thank you for your co-operation in making Karma a safe place to work and shop.
The board has also been working to develop Conflict of Interest and Privacy policies for Karma, and in June we began bargaining with the staff union for their next Collective Agreement.
Karma won the award for Best Bulk Food and Best Green Grocer, and we came in second place for Best Organic. Thank you to everyone who voted! Current Board Members: Alex Speers-Roesch, President Paul Danyluk, Vice-President and Secretary for Staff Relations Yves Cheung, Treasurer and Membership Secretary Arel Agnew, Membership Communications Secretary Lauren St. Louis, Engagement Co-Secretary Roberta Benson, Engagement Co-Secretary Ernst von Bezold, Planning Secretary Board members who left the board this past year: Phillip Lakin, Stephen Targett
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Submitted by Rachel Yanchyshyn, Interim General Manager
Finances: The 2013/2014 year was a good fiscal year for our co-op, with the end of year financial statement ending in a profit, as opposed to the large deficits we have had in the past four years. The year end statements have been steadily increasing over the past few years, and the trend is very promising for the co-op. The reason for such steady increases has been a marked lowering in costs paired with an overall increase in sales. Membership: The past year saw a few significant changes in membership. These changes included the introduction of a one month trial shop, as well as the introduction of the Guest Shopper category, which was voted in at the last AGM. The definition of a lapsed member was changed from 6 months of no shopping to 3 months, and anyone who was more than 3 months behind in their fees was switched to the Guest Shopper category. Tables 1 and 2 (below) summarize the membership numbers over the past fiscal year. Table 3 is a brief summary of the Guest Shopper category. Membership numbers appear to be down, but this seems to be mostly from removing members who were inactive in
officially resigned, are still members of the co-currently shopping at Karma. It gives us a good sense of the number of members who are regularly making purchases at the store. It is interesting to note that though the membership numbers have decreased, the sales have continued to increase, suggesting that active members really are committed to the co-op and to shopping here regularly. The guest and trial shop categories represent those who are just passing through or who have temporary interest in the co-op. Those categories also, hopefully, enable people to experience Karma, but not to get bogged down and frustrated by fees owing or hours owing before they know they are fully committed to the co-op. I think now that we have a sense of how many regular, active members we have, and knowing this number of members can result in good sales, we should focus on retaining this type of regular, committed, active member. Possibly easier said than done :) Staff: Talia McGuire was the General Manager during this past fiscal year. She left on maternity leave in late June,
-long maternity leave. James Byrne was hired to replace Colette Slone in the spring. Other than that, the paid staff roster remains constant, with 5 regular staff members, 1 assistant general manager, 1 general manager, and 2 contract workers a bookkeeper and member records secretary. Physical Plant: There were two large store equipment purchases made during the fiscal year a four door freezer and a new HVAC system. The freezer was purchased to replace two older units that had both broken down. The new HVAC system was purchased and installed in late May, resulting in a much more comfortable indoor environment. Table 1. Summary, by month, of Karma membership, June to December 2013
2013 Flat Rated % Rated Work-exempt Total HH Resign Newly joined
Trials Lapsed
June 381 in 309 HHs 870 in 751 HHs 104 in 93 HHs 1355 in 1153 HHs 5 16 88 July 359 in 291 HHs 898 in 774 HHs 105 in 94 HHs 1362 in 1159 HHs 4 8 60
Aug 375 in 305 HHs 651 in 555 HHs 89 in 79 HHs 1115 in 939 HHs 0 17 50 245* Se 334 in 269 HHs 675 in 590 HHs 85 in 74 HHs 1094 in 933 HHs 5 17 80 42 Oct 330 in 263 HHs 674 in 583 HHs 90 in 79 HHs 1094 in 925 HHs 4 15 60 n/a Nov 326 in 258 HHs 656 in 568 HHs 96 in 83 HHs 1078 in 909 HHs 5 15 61 n/a Dec 323 in 358 HHs 634 in 550 HHs 93 in 81 HHs 1050 in 989 HHs 2 9 38 n/a
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Table 2. Summary, by month, of Karma membership, January to May 2014 2014 Flat
Rated % Rated Work-
exempt Total HH Resign New Trial shop
before joining
Trial shop
Lapsed Switched to Guest
Jan 310 in 252 HHs
487 in 417 HHs
90 in 78 HHs 887 in 747 HHs 0 21 46 127 n/a
Feb 292 in 239 HHs
376 in 317 HHs
72 in 61 HHs 740 in 617 HHs 2 8 24 141 n/a
Mar 288 in 238 HHs
308 in 265 HHs
64 in 57 HHs 660 in 560 HHs 9 14 6 26 6 40
Apr 296 in 245 HHs
253 in 220 HHs
63 in 56 HHs 612 in 521 HHs 5 11 6 39 66 4
May 297 in 261 HHs
282 in 242 HHs
66 in 59 HHs 645 in 562 HHs 4 12 3 48 43 0
*New policy for lapsed members went into effect August 2013. Lapsed became defined as 3 months of no shopping as opposed to 6 months. Table 3: Guest Shopper Summary
Month (2014) Sales February $1215.61 March $1627 April $1066.96 May $1773 June $1428 July $1512 August $1853.06
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Committee Reports Building Committee Submitted by Cathy Tafler Choosing a Heating/Air Conditioning Replacement System Thanks to the hard work of many Karma members and friends of Karma, a decision was reached by the Board for which type of heating/air conditioning system to choose to replace the existing electric resistance unit. It was decided to replace the existing electric resistance heating unit with a heat pump. It was also assessed whether or not repair of the existing unit was feasible and worthwhile. Thanks go to long-time Karma member Art Jacobs for all of his work keeping the old unit going until decisions could be made about the replacement unit. Work is planned for this fall on the following projects by members:
Refinishing of exterior wood doors Weatherstripping of existing glass doors and wood doors Reworking of shelving to accommodate changes to ramp
Work is planned for the winter on the following projects by members:
Kitchen shelves Kitchen ceiling/storage area
Work being considered to be done this fall by contractors:
Replacement of fascia and edge of roofing along west side of building Automatic door opener/closer Replacing door lock Door threshold repair/replacement to eliminate lip Redoing concrete ramp to improve slope (+ handrail) Adding air curtain by entrance door
Interior work on the brick on north interior and east exterior walls Exterior pavement Bread shelves Redo uneven floor in washroom
Everyone is welcome to help out with/coordinate any of the projects please contact us to let us know which one you are interested in by sending an email to [email protected] Chronicle Committee Submitted by Karen Fliess
a year, The Chronicle is distributed in hard copy in the store, electronically through an email subscription list, and on -quality, informative newsletter for the Karma community.
The Chronicle Committee aims to be a vehicle for members to communicate with each other. We solicit Board, committee, and staff reports, and provide a forum for sharing and discussing important issues facing the co-op. We also offer a way to share news and information about store products and food-policy issues that are of interest to members.
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What We Do The timeline to publish each issue of the newsletter is relatively short. Our committee meets soon after an issue goes to press to review the finished product and plan for the next issue. To facilitate production, we each choose roles for the upcoming newsletter. We continually refine our role descriptions and responsibilities as we look for ways to be more efficient. Currently, we fill the following roles for each issue:
Communications manager (liaises with the Board, committees, staff, and members to solicit articles) Managing editor (keeps track of the schedule to ensure contributors and committee members know their
deadlines; communicates with new volunteers) Content editor (works directly with writers to trim and polish their pieces for publication) Copy editor (reviews copy for errors in spelling, grammar, or facts) Photo editor (gathers images and takes photos to accompany articles) Designer/Printing coordinator (lays out the issue, pairs text with photos, designs the cover and reviews the final
file before sending it to the printer) Proofreader (proofreads the issue) Web editor (posts articles online and sends a PDF version to subscribers) Board e- -newsletter)
Highlights This past year has been another year of great support from all those involved in running our co-op. Our gratitude goes to Board, staff, and committee members for fully honouring our deadlines and consistently submitting up-to-the-minute reports. Due to this involvement, we have been able to keep members well informed of developments and activities happening at our co-op. The Chronicle has also been distributed at CDC marketing events and serves as a good snapshot of what the co-op is all about. Chronicle Committee members have attended in-store and community events that Karma has participated in, reporting about them in The Chronicle. We attended and reported about the 2013 AGM. Staff interviews are often featured, and a member interview appears in every issue. These interviews provide a window into the background and interests of both our hard-working staff and our diverse and interesting membership. We have also researched and written many
We pay special attention to the size of The Chronicle in order to keep production costs as economical as possible. Committee member Mara Eksteins has taken on the extra role of editing and circulating the monthly Board e-newsletter. Special thanks go to our designer, Ellen Pauker, who continues to surprise and amaze us with beautiful covers and the sleek and easy-to-read format of The Chronicle. Thanks also go to departing committee member Amanda Lewis for all the events she attended, for the many inspiring articles she wrote for The Chronicle, and for taking on the role of editor so often and so skillfully. Caley Moore and Karen Lior have so willingly taken on a multitude of extra tasks and roles whenever the need has arisen. If you want to contact the committee, please send an email to [email protected]. Current committee members: Mara Eksteins, Karen Fliess, Karen Lior, Caley Moore, Sybille Parry, Ellen Pauker, Joanne Wojewoda Retiring committee members: Bill Howson, Amanda Lewis, Diane Saibil, Hilary Turner
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Community Development Committee (CDC) Submitted by Jennie Lee The mandate of the Community Development Committee (CDC) is to work with the Board, fellow Committees, the
members in the Karma community. Member Engagement and the Store The CDC supported GM Talia McGuire, along with Staff and Board, in the implementation of the Guest Shopper category. The goal was to engage and educate guest shoppers new to the store, and to promote the transition to full membership. Our key contributions were the following:
developed the new informational brochure with updated membership categories.
In-store Signage Improvements: Emily Van Halem designed new signs and developed official Karma sign templates to use for all signage that carries the Karma look.
Map of the Store: Matt Kerry designed a visual map of the store to guide new shoppers. This map identifies physical areas in the store and highlights where items can be found.
We launched the Karma Slogan Contest in 2014. The contest was widely promoted in-store and through social media, and members voted on a shortlist selected by the Board and the CDC to select the final winning slogan: Sustainable food, sustaining community. In support of the GM, Emily Van Halem continued the design of Monthly Features posters seen around the store and on social media, and the special Holiday Product Guide. Outreach With leadership from Melissa Berney, outreach activities continue to be strong this past year. The CDC and our dedicated outreach team attended events in our neighbourhood and the west end to promote Karma to new audiences:
The Wychwood Eco-Fair at the Barns -Up Markets throughout the year The Toronto GMO-Free Festival The Annex Festival on Bloor The Toronto RAW/Vegan Festival
Melissa and Board member Paul Danyluk also represented Karma at the 5th Annual Assembly of the Local Organic Food Co-ops in Guelph, where they networked with food co-ops from across the province and gave a presentation on Karma. We are always looking for more members to get involved by representing Karma at outreach events a fun and interesting way to earn your member labour hours. If you are interested in joining the outreach list, please contact Melissa at [email protected].
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Events Our potluck this spring helped us send off GM Talia McGuire, and welcome the new interim GM Rachel Yanchyshyn (who also won a prize for her delicious rhubarb muffins). Monique Smith once again took charge of the organizing along with the GM, and brought together members and non-members in this fun and tasty community event. Karma Website
design or writing and would like to share your skills, please get in touch. Partnership Policy Natalie Brown led the development of a partnership policy for Karma that is in the final stages of discussion with the Board and the GM. Once implemented, this policy will guide how Karma establishes mutually beneficial partnerships with organizations that are aligned with our mandate and values. The Coming Year
Continuing outreach activities at local events, fairs, and festivals to promote Karma Organizing member engagement activities such as our popular community potlucks Promoting sales through a monthly features flyer and the holiday product guide Membership drive Website update and renewal New promotional materials inside and outside of the store
We welcome members to join our committee! If you enjoy working collaboratively, organizing community events, writing and designing materials, please get in touch with us at [email protected]. Current committee members: Melissa Berney, Natalie Brown, Sylvie Goldfain, Matt Kerry, Jennie Lee, Monique Smith, Emily Van Halem Past committee members: Donald Currie, Michelle Szabo Finance Committee Submitted by Donald Altman The Committee currently consists of Linda Doran, Charles Lior, Quincin Chan, Howard Kaplan and myself. The Committee met almost every month throughout the year staffed ably by the Bookkeeper (Denise Stapleton), the General Manager (Talia McGuire and Rachel Yanchyshyn) and the Treasurer (Yves Cheung). In the course of the
t. As well, we reviewed financial policies, discussed the various systems that provide information to the Committee, and dealt with any financial questions asked by the Board. The Committee dealt with the auditor, and recommended that the Board adopt the astatements and recommend to the members that they renew the mandate of the current audit firm. Probably the most significant policy change this year has been the trial shop provisions and selling to non-members.
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Although not strictly an item from the fiscal period ending on May 31, 2014, one of the most critical items on the agenda has been dealing with Alterna Savings, our major banking institution, which has been pressing to change the structure of our lending instruments. The most gratifying event this year is the fact that we have ended the year with a surplus. This means that in the past three years we have moved from a significant loss to surplus. We cannot rest on our laurels because the credit union is determined to restructure our lending instruments so that we pay back a portion of our indebtedness on a regular monthly basis and we are in the process of renewing our contract with our employees which is also likely to increase our monthly costs. We encourage you to support the minor by-law amendment with regard to the description (definition) of the end of our fiscal year which is before you as part of the AGM. The Committee wishes to thank Charles, who is leaving the Committee, for his years of service on the Committee. As well, even though his service was not all that lengthy, Yves has been our front person dealing with the credit union and has done a good job of reflecting the Committee to the Board and vice versa. Karma needs a new Treasurer and the Committee needs to replace Charles. So, I am encouraging folks with any financial acumen and/or interest to come forward to fill these two vacancies. If you want to contact the committee, please send an email to [email protected]. Food Issues Committee Submitted by Cindy Willems Our current mandate:
To connect with food suppliers and distributors and research product ingredients to determine GE status. To discuss food issues priorities and actions to be taken on an ongoing basis with Karma members.
Current committee members: Cindy Willems (Chair), Wes Allen, Ken Macdonald, Nattha Wannissorn (We are looking for new members to attend monthly meetings and follow up with research at the store or at home) Past committee members: Todd Tyrtle (co-Chair), Ross Krekowski Goals from Last Year This year the FIC has been working much more closely with the staff and especially the GM of Karma to help research products that may not fall within the product policy. Often sitting down to write an email to the FIC takes time away from the staff, so we are currently working with Rachel (GM) to create a simple yet functional way staff members can record questions to then be followed up by an FIC member. We are looking at different ways to share documents or researched information with the Board, other committees, and members of Karma. Accomplishments This Year Researching GMOs within the store for the Board and Karma members continues to move forward, but slowly. Thanks to a few skilled members (who unfortunately are no longer part of the FIC) we have started a report detailing
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how members feel about GMOs within the foods they buy and have begun to investigate products in question at Karma Co-op. This report will contain results from a survey that was conducted last year. As spreadsheets have been compiled using the Karma inventory list, FIC members have already noted that the store sells a smaller percentage of GMO products than might have been thought. Communication between the Board and the FIC (via the current liaison Lauren) has much improved and at times has helped to give the committee direction when it comes to a food issues concern. We hope to continue this with the new liaison. Challenges This Year One of the challenges we face is how to address new products entering the store which are not labeled organic. We are trying to work closely with the staff to help follow up on products that might contain GMOs or find similar items that can be a better replacement. We have been discussing how the FIC can help staff go about researching questionable products more efficiently and quicker with the GM. It has also been a bit challenging to organize monthly group meetings and maintain consistent follow ups due to a turnover of FIC members. Budget Spent The FIC did not spend any money over the year. Goals for Next Year We are currently working on developing a structure and foundation for evaluating products sold within the store that may contain questionable ingredients (such as GMOs). Working with the staff and Board, we hope to eventually create the Implementation Guide that will help support Karma's Product Policy. The FIC will be working on an article (with input from the Board and GM) to share with members about the issue of supporting companies whose religious beliefs may directly affect their employees. Currently Karma's product policy
lawsuit by Eden Foods and will offer Karma's membership an opportunity to express their concerns about carrying this brand as well as others that might have similar issues. If you want to contact the committee, please send an email to [email protected]. Orientation Committee Submitted by Sondra vanderVaart
Members: The members of the Orientation Committee during the 2014 year were Jill Magen, Adam Seelig, Paul DeCampo, Doug Parry, Paula Coutinho, and Sondra vanderVaart Mandate The Orientation Committee is responsible for introducing all new members to Karma Co-op. Our mandate is to
-op. Activities We provide historic and operating information, answer questions, and conduct tours for all people who are interested in joining Karma Co-op. In addition to providing information and answering questions over the phone, we schedule four in-person orientation sessions each month. In the 2013/14 fiscal year we scheduled orientation sessions for over
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100 people which was slightly less than past years: 2012/13 156 people; 2011/12 175 people; 2010/11 170 people; 2009/10 180 people; 2008/09 140 people; and 2007/08 150 people. Our conversion to membership rate continues to be high that is, most people who attend an Orientation Session decide to sign up as Karma members. Please remember to promote Karma to your friends and acquaintances, as word of mouth is one of the main avenues for prospective members to hear about Karma. If you want to contact the committee, please send an email to [email protected]. Social Events Committee Submitted by Susan Green The Social Events Committee (SEC) has had a very successful year bringing together members to explore and appreciate the range of expertise and resources that Karma Co-op has to offer. Our monthly events from September through June are tied to the seasons and are always free. We provide uniquely non-commercial events for all to
-op principles. This is expressed through musical entertainment, creating community, tasting some wholesome home cooking featuring Karma products, and sampling
out. At the heart of all of our Social Events is a welcoming spirit. We help to orientate curious visitors to Karma Co-op by providing informal tours and explaining how Karma works, while gently encouraging people to join. We help people with their shopping, provide gardening advice, introduce wellness techniques, and exchange recipes, household items, books, yarn, clothing indoor/outdoor plants, etc. The Social Events Committee is currently comprised of four members. During this past July and August, we planned events right up through winter 2015. We organized and coordinated event scheduling within the SEC and with staff members. We wrote and set up publicity for the Karma website and newsletter, coordinating with the respective committee members. Articles about SEC events are written quarterly for The Chronicle. We currently are working on a SEC committee write-up for the Karma website. We would love to share the fun with some new SEC members. It is a great way to connect with both long time and new Karma members. Come one, come all to any of our events. If you or someone that you know may be interested in joining the SEC Social Events Committee, please contact us at [email protected]. Social Events Lineup to March 2015 November 15, 2014 Fall Wellness feel great December 20, 2014 Holiday Hot Cider hits the spot January 17, 2015 Slow Cooker recipes for you to taste February 14, 2015 March 28, 2015 Book and Yarn Exchange something for everyone
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Board Candidate Bios One Year Term - 5 Positions Open Curtis Herle I am currently a Sr. Manager within the Practice Management team within CIBC Internal Audit. I assist with all the
Harbourfront community a -Spadina). Within the last 3 years, I became a vegan and found it increasingly hard to find quality and affordable produce (organic) within the city until I found Karma. I have been a member of Karma co- Alex Speers-Roesch I joined Karma a little over three years ago, motivated by a desire to purchase local, organic, and more ethically produced foods from a democratic and co-operative institution, rather than a for-profit corporation. I'm a lifelong activist with a strong interest in environmental and social justice issues. I have a degree in mathematics and physics and currently I work with Greenpeace on protecting the Arctic, tackling climate change, and promoting energy sustainability. For the past two years I've served on the Karma board, first as Vice-President and then as President. In this time I've helped create and oversee the changes which have turned Karma from a store chronically losing money and on the brink of closure to reporting its first profits in years. I'm eager to continue this work to improve Karma, and I have a strong desire to see the store, and the community it supports, flourish. Two Year Term - 4 Positions Open Paul Danyluk I joined the Karma board in 2012 when things looked quite dire and have discovered great wells of energy, passion, and commitment within many people while working to ensure our store remains open and viable. I served as Co-op Relations Secretary in 2012-2013 and worked to introduce the changes in membership, including the introduction of non-member shopping and the most recent change to our membership structure. I served as Vice President and Secretary for Staff Relations in 2013-2014, helped hire a permanent General Manager and then a new Interim General Manager to fill a maternity leave, and was a member of the negotiating team in contract negotiations with our staff union. I want to continue serving the members of Karma as we work towards an even better future. Away from Karma I work with credit unions across the country to help them meet their staff and board training and development needs. I am also the coordinator of the GTA Co-op Network, a fledgling initiative of the Ontario Co-operative Association that aims to bring together co-op staff and members from across our region to network and collaborate to strengthen the capacity and increase the knowledge of co-operative enterprises like Karma. Up to and including at the AGM, interested members can join the election process.
