Newsletter of the Franklin Community Cooperative May/June 2015

Annual Report Issue

Events atMcCusker’s Market

EVENTS continued on p.7

General Manager Report

BOARD continued on p. 7

GM continued on p. 4

by Sharin Alpert, member

Something new is happening atMcCusker’s recently acquired space(formerly the Wine Merchant): commu-nity events, musical gatherings, work-shops, and more. There’s an invitingchildren’s area with a kid-size table,books, games, art supplies. 

Emily Gopen, member and co-opstaff at McCusker’s, filled me in. Emilyis a creative thinker, committed tobuilding community. After the newspace opened, Emily collected chil-dren’s items and set up a  play arearight by the fish tank. “The fish tank,”she said, “is a big draw. A parent whooften spends time here with her littleboy told me he didn’t want to join hertoday. Then she reminded him, ‘Wecan see the fish!’ and he happily camealong.”

Events have already occurred in

Board of Director’sUpdate Report

The Board of Directors wants tounanimously, enthusiastically, andwholeheartedly thank the MembershipParticipation Circle (MPC) for their sub-stantial contributions to the success ofthis year's Annual Meeting.

We were again fortunate to haveenough member/owners step forwardto have a contested Board election,and for the second year in a row theMPC organized and hosted a candi-dates' forum. This gave other mem-ber/owners a chance to hear from and

In production of our own foods, we have eliminat-ed, as much as possible, the main sources of GMOs(beet sugar, corn, soy, canola and cottonseed).When possible, we use organic (which, by definitionis non-GMO) or Verified Non-GMO versions of theseingredients.

We prioritize using organic fruits and vegetablesas we also share purchasing with our all-organic pro-duce department.

Here is what we use in order to reduce the possi-bility of GMOs in our co-op produced foods:

• organic oils (canola, olive, corn, palm) in any ofour prepared foods or baked goods

• non-gmo pan spray • non-gmo cornstarch• We do not use corn syrup• organic rice syrup• organic cane juice crystals for sugar • organic tamari (also wheat/gluten free). • Bragg’s liquid aminos which is non-gmo • organic cornmeal• organic soy products (tofu, tempeh, tempeh

bacon). • non-gmo soy milk & soy creamer• non-gmo margarine and organic shortening• rBST-free milk

• sour cream that doesnot contain cornstarchand is rBST-free.

• organic ketchup• non-gmo mayonnaise

and non-gmo Veganaise.• organic corn (frozen &

fresh) • organic rice, grains and beans. • organic filo dough and shells • our spices are non-irradiates and organically

sourced when available.• our coffee is organic and Fair Trade• our flours (wheat, rye, pumpernickle, spelt, rice)

are organic or locally grown (which is non-gmo)

A note on eggs, dairy, meat: It is cost-prohibitive touse all organic for these products.  For that reason,it is likely that most of the dairy, eggs, meat we usecome from animals that consume gmo feed. We do,however use meats that are hormone, nitrite, andnitrate-free.

Please see our website for buying guidelines andupdates as they become available.

Co-op Ingredients Statement

This report was delivered at our Annual Meeting onMarch 1st, 2015

Good afternoon and welcome to our 2015 AnnualMeeting.

It is truly my honor and pleasure to be giving my firstmanagement report.

This has been a transformational year for me per-sonally and professionally and I want to thank theBOD, membership and staff for the opportunity toserve you and participate in our co-op and communityin a dynamic way.

I am going to highlight accomplishments, share mypriorities for the coming year, and mention the three

areas I believe are most important for us to focus on asa co-op community: member engagement in long-termplanning, financial viability, and efforts toward healingand reconciliation. The time allotted for reports is lim-ited so we can focus on member dialogue and partici-pation. This is a time for the BOD and me to hear fromthe member-owners collectively and to do the goodwork of our co-op together. I would be more than happyto create additional forums to discuss anything in fur-ther detail. You are the owners of this cooperative andI am committed to transparent access to informationand fostering a meaningful dialogue with you.

Tuesdays, May 12 & 26 5:30 p.m.Non-GMO Committee. The group meets the 2nd and 4thTuesdays of each month.

Weds, May 13 & June10 4:15 to 5:45 p.m.Franklin Community Co-op's Economic InnovationCommittee meeting. Open to all co-op members. Held thesecond Wednesday of each month. Info: Gary Seldon: (413)774-6950/ gary@earthlink.net

Tuesday, May 19 3 to 5 p.m.Would you like more ease in your life? FREE 5-10-minutetastes of ‘having your bars run’ (energy release process gen-tly holding points on the head). Sign-up in advanceWendy@WendyGoodman.com (413) 773-7899; or justshow up. On the mezzanine at Green Fields Market.

Wednesdays, May 13 & June 10 6:30 p.m.Franklin Community Co-op's Board of Directors’ meeting.The agenda is posted at both stores the week prior to themeeting. Open to all FCC member/owners; held at FranklinCounty CDC, 324 Wells Street, Greenfield.

Wednesdays, May 20 12 to 1 and 5 to 6 p.m. May 27 12 to 1 and 7 to 8 p.m.Listening Sessions General Manager John Williams is avail-able to hear what you think. Stop in briefly to talk in person,email or fill out a feedback form. john.williams@franklincom-munity.coop

Tuesday, May 26 noonWorking Member Orientation For members interested indoing volunteer hours for work credit discount.

Wednesdays, May 27 & June 24 Our co-op is responsible for the Community Meal held at theSecond Congregational Church, Court Square, Greenfield.Help is needed preparing and serving food. Please contactDeb Petrizzi, (413) 512-0642.

Tuesday, June 2Member Engagement Committee meeting.

Update: The Member Engagement Committee was creat-ed by the Board two years ago as a means to linkowner/members and the board. The committee welcomes allmember/owners and Board members who would like to par-ticipate with the Board. The MEC seeks to develop ways toengage conversations and involvement in the co-op.

One ongoing project has been the coordinating of thebusiness meeting part of the annual meeting. This projectalso includes working with the Member Participation Circle tocreate and administer the roundtable discussions. This yearwe also hosted "co-op chats" during the summer. We'realways seeking new avenues to fulfill our charter, so if you

feel inspired, please join us.The MEC meets the first Tuesday of every month upstairs

at GFM. You can just show up or you can e-mail the commit-tee at mec@gfm.coop

Wednesdays, June 3, July 1 5:30 p.m. The Membership Participation Circle continues to meet reg-ularly, the first Wednesday of every month at 5:30 p.m. in theupstairs room at GFM. Everyone welcome.

Sunday, June 7 2:30 to 4 p.m.Co-op Jazz At Green Fields Market. Repertoire of "OldChesnuts" from swing to bebop era tunes with a healthydose of bossa nova.

Monday, June 8 6 to 7 p.m. All About Herbs with

Kathleen O’Rourke Kathleenwill lead a discussion aboutwhere, how and when to har-vest the purest and mostpotent herbs, as well as themaking of remedies and safe usage, straining on mooncycles, and storing to maintain high quality. Kathy hasn’ttaught classes for several years, so this will be a chance toget questions answered and be mentored by an elder with 35years of herbal experience. Held at McCusker’s Market.You don’t have to reinvent the wheel! Come learn, share

information, and discuss problems. This session is for expe-rienced and practicing herbalists, as well as those interestedor just starting out. Bring questions, and maybe a notebook.This is not a class about diagnosing and prescribing, butrather information about many practical details of makinghigh-quality remedies. Sliding scale, $5 - $15.

Monday, June 15 Deadline for submitting items for the July/August issue of TheNew Beet. See submission guidelines, below.

Monday, May 18 5:30 to 7 p.m.Write That Thing "Excellent . . . changed the way I write." -A.M., Going into its 3rd year, "Write That Thing" is a support-ive, fun workshop designed to help members develop theirwriting projects while learning new approaches. All levels andgenres are welcome. Workshop leader Jonathan Mirin.Info/testimonials: www.ptco.org/training (413) 625-6569,jonathan@ptco.org Free for co-op members (FCC); $15 fornon-members.

More Calendar Listings On Our Website Check out our website calendar for co-op sponsored events.You can also sign up for co-op email notifications through ourwebsite. Go to www.franklincommunity.coop and click on“Contact Us” from the menu.

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the New BeetFranklin Community Co-operative

Board of DirectorsJay Lord ‘16

Gary Seldon ‘16 (Clerk)Lynn Benander ‘16 (Vic President)

Norm Hirschfeld ‘17David Paysnick ‘17 Stephan Gordon ‘17

Judy Draper ‘16Marie Betts Bartlett ‘17

George Touloumtzis ‘16 (President)Emma Morgan ‘17

Jeanne Douillard ’17 (Treasurer)

Co-op Managers 413.773.9567

General ManagerJohn Williams x1009

Marketing & Member ServicesSuzette Snow-Cobb x1017

Human Resources

Julia Ellingboe x1003Information Services David Russell x1001Operations ManagerRob Levengood x1004

Prepared Foods Chris Opalenick x1008

BakeryJames Callaway x1007

GroceryPat Donohoe x1014

Meat & CheeseKim Nyiri x1020

Wellness Pamela Ferrechio x1016

ProduceVictor Signore x1015

Front-end/Cashiers (GFM)Jeremy Starpoli x1013

McCusker’s Store ManagerAlec Goodwin x2001

McCusker’s Market413.625.9411

The New Beet is the newsletter published 7 timeseach year by Franklin Community Co-operative.Articles about health or nutrition are for informationalpurposes only. We recommend that you consult a healthcare professional for medical advice. Opinionsexpressed in this newsletter are those of the writers andnot necessarily the views or policies of FCC. The deadline for classified ads, letters, recipes orarticle submissions is the 15th of the month prior topublication. All submissions must include author’sname and phone number, and conform to the followingguidelines:Recipes: We welcome original recipes from members.Classifieds: Members’ classifieds are free (40 wordlimit) Drop off at the member/customer desk (typed orvery clearly written) or e-mail; we print as space allows.suzette@franklincommunity.coop

Event Announcements: Members may submitannouncements for their organization/event; we willprint as space allows.Letters to the Editor: We welcome letters; they mustbe signed and include a phone number for author verifi-cation. We will withhold name if requested. We reservethe right to edit for grammatical errors, clarity, andlength. 300 words maximum.Via email: suzette@franklincommunity.coopSubmissions on paper: Typed and double-spaced.The editor may reject letters and articles that are illegi-ble, too long, or inappropriate. We also welcome origi-nal poetry, photographs and drawings.

Our Ends (What we are working toward): Global: The co-op will be an innovator and collaboratorin the process of creating a regenerative and sustain-

able local community, economy, and food system. • Our community will be educated about our food, foodsystems, health and ecology.• The co-op will supply healthy, reasonably-pricedfoods--and other goods and services--that benefit thelives of the members, community, and all those whoworked to bring these goods to us. • The co-op will provide a central place for the membersand community to congregate and strengthen the socialfabric of our community.• The co-op will foster a positive working environmentfor all staff while providing a living wage, and excellenttreatment of all workers.• Customers will have a positive experience with eachvisit.• The co-op will be an outstanding example of theCo-operative Principles and Values.

The co-op board meets monthly, (generally 2ndWed.) at 6:30 p.m. The agenda and minutes from

previous meetings are posted in both stores.Meetings are open to all co-op members. Board

mailboxes are at our Greenfield store where message can be left or via email: bod@gfm.coop.

The Co-op CalendarEvents are free, open to the public, and held in GFM Meeting Room, unless otherwise noted.

New Beet Editors:Suzette Snow-Cobb, staff

Eveline MacDougall, memberwww.franklincommunity.coop

Illustrations:Jessica Larkin, member

Masthead Art Work:Karen Gaudette

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the New Beet

David Paysnick, outgoing president

Delivered on March 1, 2015 at the Annual

Meeting, Greenfield Community College by

Board Member George Touloumtzis

Good Afternoon,Thank you all for coming today. David was

unable to be here today and asked if I wouldread the President's report on his behalf. I amhonored to do so, but greatly regret he couldn'tbe here in person.

And now, David's report: First I’d like to thank John for his report and

appreciations. We are all very excited to havehim here leading our co-op as our new generalmanager. He comes with great experience,dedication, and a commitment to upholding ourends and improving our operations. Let’s showhim some appreciation (applause). I’d like tothank the interim management team, DavidRussell, Rob Levengood, and Julia Ellingboefor not only keeping the ship afloat while wesearched for a new GM, but for forging aheadwith many improvements to our operationsincluding energy efficiency measures, finaliz-ing our union contract, building our HR sys-tems, and beginning to draft plans and makemuch-needed improvements at McCusker’sMarket. I’d also like to thank Suzette Snow-Cobb, the Member Engagement Committee,and the Member Participation Circle for puttingtogether today’s event. Perhaps most impor-tantly, I’d like to thank all of the co-op’s staff foreverything they do to keep our business run-ning and our shelves full, day in and day out.We wouldn’t be here today without them.Finally, I would like to thank the board of direc-tors for their time, commitment, and dedicationto serving our cooperative, particularly as weemerge from an incredibly difficult few years.

Despite the difficulties we've endured, it'sclear that we've come a long way and mademany improvements to our organization. Lastyear in my report, I discussed the ongoing unionnegotiations. I’m happy to report that we nowhave a contract in place that helps provide clar-ity and consistency for the treatment andaccountability of staff in our two stores. Lastyear, I also discussed the beginning of oursearch for a new general manager. Afterreceiving many more qualified applicants thanwe expected, the board of directors is veryhappy with our selection of John Williams. Assoon as we hired John, he hit the ground run-ning, working to absorb as much information as

he could about our cooperative, even before hisofficial start date. Last year, I also talked aboutchange. We have experienced many significantchanges at Franklin Community Cooperativeover the past several years. Some have beendeliberate and desirable, and some, not somuch. Over the decades, the co-op haschanged our governance style, our store loca-tions, our general managers, our staff, and ourpolicies, and we remain strong. We are alwayslooking to make changes that better serve ourmembers, our staff and our community.

I’m sure that everyone is aware of the unfor-tunate circumstances regarding our former gen-eral manager, Dwight Gaddis. We put the oper-ations of our beloved cooperative in his handsand he let us down. Despite the year and a halfthat has passed since his departure, the hurtand betrayal is still fresh for many of us wholearned about this shortly after he left, and I'msure very raw for many of you who just heardthis news a month ago. When the board hired

Dwight, he came highly recommended. He hadbeen employed for many years at another foodcooperative, was professionally screened by anHR consultant, and came with excellent refer-ences. Despite what the board believed to bedue diligence at the time, his abrupt departureand alleged embezzlement have taught us thatmore needs to be done to protect ourresources.

In late 2013, the board reviewed our GMsearch and hiring procedures and made adjust-ments to include a more thorough screeningprocess which included any employment offerbeing contingent upon a background check andcredit check. We have also decided to pursuebonding insurance for key positions that haveaccess to our financial resources. Additionally,we hired an experienced CPA to review ourfinancial systems and provide recommenda-tions for enhanced controls and have just com-pleted an audit for FY 2014. Nearly all of therecommendations from our CPA and the audi-tors have either already been implemented, orare in process at this time. Carol will detailsome of these new measures in her Treasurer’s

report. The theme of our 2015 annual meeting is

“The Future of our Co-op - Moving ForwardTogether." This theme represents the commit-ment of the Board of Directors to find new waysto engage our member-owners as we plan forand move into the future. This Board commit-ment is supported and embraced by ourGeneral Manager. We have all made a commit-ment to developing both short- and long-rangeplans for our cooperative that are inclusive of allvoices and perspectives within our cooperativeownership and staff. We seek to engage mem-ber-owners in a variety of ways in order to pro-vide opportunities for all to participate. Theroundtable discussions today will help to informthe board and GM about how our membershipfeels about a couple of specific issues, as wellas some bigger-picture topics such as theimpact of our stores’ presence in the communi-ty. These roundtable discussions, paired withthe recent member survey, are only the begin-

ning of the member inputopportunities in our long-range planning process tobe led by our GeneralManager, John Williams.Through a recent policychange, the Board has

made it a requirement that the GM activelyengage membership in the crafting of this plan.

In my two years on the FCC Board ofDirectors, we regularly ask, “What do our mem-bers want? How do we find out? How do wereach MORE members?” The board has con-sistently held a commitment to seeking andrespecting member-owner input, and we needyour help. What are your ideas for our co-op?What can we do to make our co-op better? Tomake our community better? To make our livesbetter? We want to hear from you! Not only dowe want to hear your ideas for our co-op but wealso need your help to engage more of ourmember-owners. Please sign up for our emaillist, watch for participation opportunities, tellyour friends, join us when you can, and each ofyou consider this your first invitation to run forthe Board yourself next year. We want to bridgethe divides, heal the wounds, and move forwardtogether. We can’t change the past, but weCAN create a brighter future. Thank you all forcoming and for your continued passion for andpatronage of Franklin Community Co-operative.

President’s Report-FY 2014

In my two years on the FCC Board, we regularly ask, “What do our members want?

How do we find out? How do we reach

MORE members?

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AccomplishmentsAlthough I started as the GM with only ten days

left to the fiscal year, I feel confident saying thateveryone involved--the BOD, the IGMT team,members, the staff and community--have done aphenomenal job of lifting up our organization andpointing us solidly forward through a difficult time.

Under the supervision of the Interim GeneralManagement Team, many solid initiatives wereimplemented to put our financial house in order. Iam excited to say we have completed our firstaudit in quite some time. I know you will hear morefrom Carol on this in our treasurer’s report.

Here are some of the most notable accomplish-ments of this past year:

We…• Amicably negotiated our first union contract• Installed an open source point-of-sales sys-

tem at McCusker’s• Completed a thorough fraud investigation• Launched a lunchtime delivery program• Received positive staff survey results• Initiated shelf tags• Implemented our Food For All program• Completed store-level renovations including

deli refresh, expansion of the meat case,McCusker's re-set, new floors in the mezzanineand the introduction of a new logo.

• Conducted a wide range of community out-reach and sponsorship initiatives such as; premierof the film Food For Change at various local ven-ues; numerous in-store events includingincreased music and art shows, and ongoingclasses and presentations by members; a c t i v eparticipation in Franklin County Food Council andMA working group Food Systems Plan; increasedvisibility of co-operative businesses in our regionthrough collaboration and education and our par-ticipation with Valley Co-operative BusinessAssociation and Neighboring Food Co-opAssociation.

I will provide more substantial insight in ourannual report within the next few weeks.

PrioritiesI have spent the last few months engaging

members, staff, meeting people and observingand learning details of our operating structures. Iappreciate and applaud your patience andengagement within the last few months. The in-store interactions, telephone conversations andemail correspondence have been of great value tome. We have quite a bit of work to do this year.Here are my priorities:

• Establishing short- and long-term planningprocesses

• Engaging member-owners in the long-termplanning process

• Addressing the space constraints which

impact the quality, services and products availableto our community and the working conditions ofour staff

• Improving our financial viability• Stabilizing, reinforcing, and building the orga-

nizational and operational structures to supportpositive growth

• Re-energizing McCusker's Market as viablebusiness

• Improving communication with members andstaff

• Establishing a reconciliation and healingprocess to move us forward as an organization

Although I do not have time to touch on allnoted opportunities today, I would like to touch ona few that I feel are critical to our success as wellas the barriers we face as an organization and aco-op community.

Member Engagement and PlanningI clearly hear the call for stronger member and

staff involvement in laying out the future of our co-op.

The theme “The Future of our Co-op—-MovingForward Together” clearly embodies my intentionsin leading the operations of our co-op and thedesire to create a shared vision that includes ourstaff and owner-members.

The member survey completed last month andthe roundtable discussions today are a great start.

I’m seeking to move beyond a hierarchal deci-sion-making process with the three following ini-tiatives:

1.) Establish a visioning process to create aroad map to our Ends to include all levels of par-ticipation of our co-op and align leadership andmember-owner goals by implementing a steeringcommittee consisting of management, boardmembers, member/owners, and staff. This will bethe core of the visioning process.

With a clear mission to instill a process forvalue-based decision-making and value-basedbehaviors aligned with our Co-op Principles withfoundational goals to preserve the heart and soulof the co-op. To define what growth means interms of the quality, space and locations of ouroperations. To ensure economic viability andincrease access to local healthy affordable food.

2.) Create feedback forums throughout thevisioning process with a clear mission of present-ing and listening to the pros and cons of issues inopen and transparent ways, create synergy andcapitalize on the passions, opinions, experienceand skills of our staff and member owners.

3.) Implement the open-book managementprocess throughout the organization to empower,educate, engage and trust staff to make key deci-sions within their areas of responsibility, and to

support one another other in overcoming organi-zational hurdles.

Financial Viability I know Carol will be addressing the key finan-

cials in her Treasurer’s Report. I felt it would beprudent to give an overview of our current posi-tion.

Our fiscal year ended September 30th with rev-enue of $8.5 million. We had an overall salesincrease of 2.65%. I’d like your help in increasingour sales. Please consider purchasing more ofyour groceries at our stores and bringing yourfriends and neighbors in to do the same.

We ended the year with a net loss of $180,000.Compared to the previous year’s loss of$289,194, this loss is less than last year’s by$109,195. In addition to the store level losses wehad other expenditures of professional fees andcosts associated with the embezzlement, unioncontract negotiations, finance consultations, andan adjusted depreciation schedule. Many of thosewere one-time expenses.

Green Fields Market held a solid 4.48%increase in comparative sales over last year. Witha strong improvement of net income, we reducedthe year over year loss by $81,652. OurGreenfield store was able to move into the posi-tive net income of $39,112 compared to a loss of$138,040 the previous year.

McCusker's represents the majority of the com-pany loss. Things are improving. We reduced thenet income loss by $29,351, ending the year witha loss of $108,689, compared with $138,040 theprevious year. The trending losses are primarilydue to high overhead and inefficiencies oftenassociated with smaller format stores. The laborcosts currently absorb the majority of the grossprofit, leaving the operating costs coming straightout of the pocket. Sales have declined 5.56%while the cost of goods increased 2.56% due tocontrols associated with substantial managementtransitions.

The McCusker's team is working hard and thesales trends and margins are showing positivesigns. A deep dive clearly indicates preparedfoods and deli operations are the key focus for theturnaround. We are mapping scenarios and test-ing for feasibility options to close the gaps atMcCusker's and re-energize our Shelburne Fallsstore. I am excited to share the results of ourresearch with you all very soon. The efforts toclose the gap at McCusker's need to be swift andfiscally responsible.

I am optimistic and planning for a strong recov-ery this year in net income. I appreciate yourpatience and support during this challengingprocess. If you help increase sales, staff will helpdecrease expenses, and we’ll have strongerstores to bring you the benefits for years to come.

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There has been an enormous amount of posi-tive movement in stabilizing our financial positionwithin the last year. We have completed our auditand have a clear understanding of our financialpicture. We have updated charts of accounts anda reorganized finance department with strongerfinancial controls. We have a highly respectedand experienced CPA conducting third-party con-sultation and oversight.

We are finalizing our operational budget afterextensive re-mapping of the previous accounts toestablish historical perspective.

We are also ending the year with cash assetsof $913,030. Our land, building, and equipmentare worth about $750,000. We have resourcesto support our short-term turnaround and long-term planning processes.

The staff is working hard to establish short-term capital investment scenarios to stimulategrowth and improve efficiencies. We are deepdiving into opportunities to improve the shoppingexperience, such as expanding the member serv-ice desk and adding an additional register. Iwould like to develop our new administrativespace with a storefront on Main Street, to provideadequate offices space for our administrativestaff. I would also like to increase our bulk andmeat offerings and offer craft beer and wine atMcCusker's soon in order to strengthen our salesand support our local brewers. I look forward tosharing these scenarios with you and am open tofeedback at our upcoming short- and long-termplanning forums.

Open Book Management Open Book Management is about empowering

every single employee in our cooperative with thetools, education and data they need to act (andtake responsibility) for our cooperative’s opera-tions and financial health. This process will helpstabilize our margins and balance labor alloca-tions. We are still in a strong cash position tomove the organization forward. There are numer-ous capital improvements to consider as we seekto build our assets, improve our buildings and sys-tems, and create stronger operational efficiencies.

ReconciliationI would like to wrap up my report by addressing

a rather unique, unfortunate and, at times, contro-versial issue. Within the last few years there hasbeen substantial organizational turmoil within theoperational leadership. I firmly accept the respon-sibility of stabilizing and empowering the leader-ship as we move forward. I would like to start byoffering my support to establish a reconciliationand healing process for our co-op community.

Change is always hard, even change wechoose and look forward to. Under Dwight’s lead-ership, in light of the charges we have document-ed against him, the leadership transition went

nothing like anyone had hoped. I believe I speakfor the good of our cooperative to ask that we allput this chapter to rest, that we focus on the bless-ings, the good intentions, the contributions of theBoard, staff, and managers involved to repair thetears in our community’s fabric and move forwardtogether. I would like to offer my respect and com-passion for all parties. I want you to know that Ihear you and acknowledge that there is quite aspectrum of emotions. There are many perspec-tives and everyone has their own important van-tage point.

While detailing the events that have burdenedour co-op, it took a strong internal dialogue not to

seek sources for accountability and blame evenwithin my limited involvement. But as I felt the nat-ural urge to resort to such inquiry, I recognizedthat I would only be participating in holding uswithin that painful place, where there is no clearway to move through the thickness and no for-ward momentum.

I redirected myself and my efforts to looking atthe contributions each individual made to thisorganization and our community, be it a previousor current manager, board member, and or staffmember. What I found was incredible commit-ment and love for our co-op. I found selfless con-tribution, determination, and engagement. Fromevery angle, I found wonderful people doing whatthey felt were the right things for the co-op and thecommunity, individuals who are icons in the cul-ture and history of our co-op and community.

I have begun recently to reach out to a few ofthe individuals involved in an effort to understandtheir paths to healing, to listen deeply and createunderstanding of the support I can provide to rec-onciliation and healing. It is my intention to contin-ue these efforts and help guide us through thisprocess. I feel confident that an organization ofthis magnitude and culture can pull together toovercome, create a stronger bond, and trulyappreciate one another for the unique individualswe are. I offer my support within all of its capaci-ty every step of the way.

The conflict and trauma present upon my arrivalhas been a heavy burden for me and for myefforts to help you build a strong cooperative thatbrings great value to our members, our staff, andto our community.   To focus on our vision, weneed to remove the landmines in our midst thatkeep our focus on our feet, on conflict and self-preservation.  We can and we need to do better.Please join me in raising our sights to our com-mon purpose, and tap into the appreciation wehave of the people who have helped build our

cooperative over the years.Our co-op has been through some difficult

times the past few years both financially and orga-nizationally. I am confident of the foundation wehave in place to move forward; I appreciate ourstrong sense of community. It is my honor to beyour general manager.

I would like to take a moment to recognizeleadership that helped build our co-op to the thriv-ing community hub we are today. I ask that youjoin me in appreciating the hard work, dedication,and commitment of these individuals. They arepillars of strength in our culture, history, and suc-cess. I would like to do something that we were

just unable to do severalyears ago and askSuzette and Nico toplease come up to thestage.

I would like to thankSuzette Snow-Cobb forher 18 years of service to

our co-op and community, with 14 of those yearsas part of the General Management Team. Weappreciate the work you did and that you continueto build our links with members and the widercommunity, especially connections with peoplefrom low-income communities and with the widerco-operative movement here in the valley.

And I would like to thank Nico Lustig for herseven years of service to our co-op and commu-nity, with two as the store manager for McCusker'sMarket. We appreciate the work you did to sup-port operations and connect our Shelburne Fallsstore with the local community.

Collectively, you have before you 25 years ofexperience and commitment to the co-operativemovement. Please join me in giving them a roundof applause.

I’m also hoping to formally acknowledge Pattiand John’s contributions to our cooperative and toour community soon, as they could not be presentat today’s meeting. In their absence today I wouldstill like to recognize Patti Waters for her 25 yearsof service to our co-op and community, with 14 ofthose as part of the General Management Team.We appreciate the work you did to establishGreen Fields Market as an anchor in theGreenfield Business Community and expand toour store in Shelburne Falls.

And I want to appreciate John Eichholz for his25 years of service to our co-op and community,with 14 of those years as part of the GeneralManagement Team. We appreciate the work youdid to steward profitable operations, create somany jobs here at our co-operative and expand toour store in Shelburne Falls.

Thank you all for your time and let’s have agreat meeting!

We are also ending the year with cash assetsof $913,030. Our land, building, and equipmentare worth about $750,000. We have resourcesto support our short-term turnaround and long-term planning processes.

page 6

the New Beet

Treasurer’s Report FY 2014This report was delivered at the Annual Meeting on 3/1/15 by Carol R.

Silver, out-going treasurer.

Greetings, co-op members. Welcome to our annual meeting. Today ismy last annual meeting as Treasurer. It has been an honor and privilegeto serve on the board over the past six years as both president and treas-urer.

There are many questions to be answered regarding the allegedembezzlement, FY 2014 financial activity, and issues raised in my trea-surer’s report from last year.

There are two questions that have been raised regarding the allegedembezzlement which I am prepared to answer today. First, how much didthe forensic investigation cost? Second, what internal controls have beenput into place to prevent improper use of co-op funds? The forensicinvestigation cost $30,000, which we might be able to recover in a civilsuit if Mr. Gaddis is convicted. At my request, the forensic accountantprovided a report which recommended internal controls to help “put ourfinancial house in order.” I want to mention three significant changes thathave been made. There is now board president oversight of GM expensereimbursement, bank statements are reconciled by a qualified profession-al who is neither a signatory on any bank account nor supervised by theGM, and all checks payable to the GM are reviewed and signed by thefinance manager beforedisbursement.

In my report last year,I raised three issues thatrequire updates:

1. The audit2. Our financial loss-

es, 3. The need to

address the history oflosses at McCusker’s.

I also promised to pro-vide an audit report inThe New Beet uponcompletion, but havebeen unable to do sountil now. The audit wascompleted in mid-February, 2015, andwas delayed for the fol-lowing reasons:

1. The audit could notbe begin until the foren-sic investigation wascompleted.

2. The audit revealedthat our asset account-ing and depreciationschedule were inaccu-rate and had to be recal-culated; long-termassets on the books hadnot been removed whendisposed and deprecia-tion had been inaccu-

rately and deficiently calculated for many years. The net results of thisaccounting problem were an increase in our financial loss for FY 2014and the necessity to file amended tax returns.

3. We changed payroll services just before the end of FY 2014 andneeded to accurately recalculate the accrued employee benefits.

4. A new chart of accounts had to be developed and implemented priorto the start of FY 2015.

The charts reflect the audited finan-cial statements. The Income Statementfor FY 2014 (chart # 1) shows an over-all loss of $179,999. In addition toproblems with the depreciation sched-ule, we had several large, one-time,expenses that also contributed to theloss:

1. The forensic investigation2. The cost of the union contract

negotiations3. Systems improvement costs such

as the new POS (point-of-sale) systemfor McCusker’s and the complete refor-matting of our financial reporting.

Pleasenote thatMcCusker’s showed a loss of $108,689 forFY 2014. Our management team is active-ly working to improve labor efficiency atboth stores and to address the unique chal-lenges at McCusker’s.

Chart # 2 shows the history of losses atMcCusker’s.

Chart # 3 shows the history of our over-all profits and losses since FY 2004.

Our Balance Sheet (Chart # 4) showsthat we have no long-term debt at this time,and that we are still financially sound dueto our historical profitability.

So what can individual members do tohelp us turn around from a loss to a profit,and insure the continued financial viabilityof our Co-op? First, please shop at ourstores as much as possible, especially atMcCusker’s if you live in the hilltowns.Second, support the co-op staff and thechanges which must be made to bring prof-itability back to the co-op. Third, insist thatour volunteer board be accountable for fol-lowing the recommendations, based ondata, from our professional managementstaff and professional consultants to suc-cessfully administer our $8.8 million busi-ness.

Thank you for your continuing support ofour co-op.

Chart #1: Income Statement

Chart #2: McCusker’s Net Income

page 7

the New Beet

EVENTS continued from page 1

in the space: a CPR training, a conversation café, perform-ances, and monthly children’s art projects led by Emily her-self.  “I’ve been trying to spread the word that the space isavailable,” Emily said. “I’d like to bring in more educational pro-grams, perhaps about nutrition awareness, alternative medi-cine, parenting, wellness workshops, maybe a playgroup.”  

There’s an events sign-up clipboard where members canlist a proposed event, the date and time they’re hoping for, andcontact information. Suzette Snow-Cobb, the Co-op’sMarketing and Membership Manager, reviews the clipboardregularly and contacts potential users to let them know if it willwork. A customer who overheard our conversation comment-ed, “I’ve gotten my member credit for playing musichere!”  Use of the space is free. So far, most events have beenfree community gatherings.  

For years, the our co-op operated in a single location, firstin Montague, then in Greenfield. In 2007, we expanded to asecond location when we bought McCusker’s Market, a natu-

ral foods store that had been a cen-ter of the Shelburne Falls communi-ty for decades.  After the WineMerchant in the same buildingclosed, the co-op decided toexpand into that space as well.Staff and members worked togeth-er to create an open light-filledspace which has been used toexpand the dining area. A series ofco-op-wide conversations will helpdecide the longer-term use of thespace.

BOARD continued from page 1

ask questions of those running for theBoard. A wonderful tradition has been start-ed!

The MPC also coordinated the round-table discussions at the Annual Meeting,including holding effective training sessionsfor facilitators [in advance]. It's also thesecond consecutive year that the MPC hasprovided this essential function towardunderstanding the perspectives and valuesof our member/owners—another great tra-dition.

These tasks were once again done incollaboration with the Board-charteredMembership Engagement Committee(MEC), which took on the drafting of theoverall agenda for the Annual Meeting. Allinvolved demonstrated flexibility, persist-ence, and close attention to necessarydetail, while always keeping in mind the bigpicture of vibrant member/owner participa-tion .

One of the lessons learned from last

year was the importance of having aneffective system to compile and quickly dis-seminate the input gathered from mem-ber/owners during the roundtables. TheMPC has served us all well by being won-derfully organized and vigilant in attendingto this. The roundtable discussion resultsare now available to all on the co-op web-site, and we've devoted time at the AprilBoard meeting to consider what might flowfrom this valuable member/owner feed-back.

Largely due to the confusing similarity ofthe acronyms of these two groups, there isa name change under consideration for theMEC. But while the name may change, thepurpose remains the same: to enhanceconnections and communication betweenthe Board and the co-op member/ownerswe represent. The committee's charteradvocates that at least half the participantsbe member/owners who aren't on theBoard, so please consider attending andjoining—your energy, ideas and passionare valued. And as the MPC indicates inannouncing their monthly meetings, every-one is welcome there as well.

The Board encourages all member/own-ers to be involved with your cooperative tothe extent and in ways that reflect yourinterests and priorities: through shopping,joining committees, enjoying entertain-ment/educational events, participation inlistening/planning sessions, socializing inour great community gathering spaces,attending Board meetings, putting in hoursas a working member, conveying yourinterests/concerns to the General Managerand/or the Board, sharing with others aboutthis inspiring ownership model, becomingmore familiar with our bylaws and policies,attending next year's Annual Meeting, and(hint, hint) perhaps running for the Boardyourself next year.

On behalf and at the behest of the FCCBoard of Directors,

George Touloumtzis, President

Chart #3: Income Comparison

Chart #3: Balance Sheet as of 9/31/2014

May 30th Memorial Celebration ofthe Life of Juanita Nelson

(August 17, 1923 - March 9, 2015)

There will be a memorial celebrationof the amazing and inspiring life of ourdear friend Juanita Nelson onSaturday, May 30, at the GreenfieldMiddle School, 195 Federal Street inGreenfield. The program will beginpromptly at 2 p.m.

Plans are underway for the celebra-tion to be preceded by a New Orleans-style jazz procession from the

Greenfield Farmers’ Market to the Middle School, a dis-tance of half a mile.

Juanita and Wally Nelson co-founded the Farmers’Market in 1974 and sold their produce there everySaturday for almost three decades. People who wish towalk to the Middle School as part of the procession shouldmeet at the Farmers’ Market at 12:30 p.m.

At the conclusion of the celebration, there will be a timefor informal socializing and story-tellling in the MiddleSchool cafeteria. Refreshments will be available.

Franklin Community Cooperative144 Main Street

Greenfield, MA 01301

Prsrt StdUS PostagePAIDPermit 183Greenfield MA

Address ServiceRequested

Inside

Annual Reports p. 1

Ingredients Statement p. 1

Calendar p. 2

Financial Report p. 6

Juanita Nelson Memorial p. 7

1. Voluntary and Open Membership

2. Democratic MemberControl

3. Member Economic Participation

4. Autonomy and Independence

5. Education, Training and Information

6. Cooperation AmongCooperatives

7. Concern for Community

C o - o p C l a s s i f i e d A d sWork Trade for Yurt Living Seeking individual or couple to helpw/ garden work 10 hrs/wk in exchange for living in our yurt over-looking the South River in Conway. Many perks included.  May-September 2015. Contact (413) 369-4020 lesliechaison@comcast.net.  

Wilder Brook Farm Whole and half shares available in our 19thyear as a CSA. Ten minutes from Shelburne Falls. Shares includeherbs and flowers, as well as the freshest naturally grown vegeta-bles. Call John or Kate, 625-6967.

Kathy Dean, Licensed Acupuncturist and Practitioner ofChinese Herbal Medicine Offering comprehensive and compas-sionate health care in Franklin County since 1999. Call if you seekindividualized treatment for pain relief, stress reduction, reproduc-tive health care, immune system support or adjunctive treatmentfor cancer and other serious illnesses. (413) 625-2550

Nature and Nurture Week-Long Summer Camp Sessions Forchildren 3 to 5 years old. At Giving Tree School in Gill, from 7/6-8/7/15. Explorations of water, trees, light-wind-sound, motion, andNature’s Superheroes. Call Christina: 863-9218 for a brochure orto register.

Valley Time Trade Orientations - Sat. May 23, 2:30-4 p.m.  andSun. June 14, 2:30-4 in the co-op's upstairs meeting room, 144Main Street, Greenfield.  Free. No registration required. Bring alaptop or tablet if you have one. www.valleytimetrade.org (413)648-3093 for more information.

Yoga for relaxation with Jeanie Erlbaum. Mondays 5:30 p.m.at Green River Yoga: $12.50 drop-in mat class.Chair Yoga at GillMontague Senior Center, Tuesdays 10:30 - 11:15: $1. drop-inclass. All Welcome.  Info: (413) 773-9744.

Keys to Spiritual Development: Shamanic Training with CieSimurro ~ Thunderbird Starwoman, author of the Totems columnfor Wisdom Magazine. 9 Full-Day Sessions June – October.Certification of completion upon graduation. Registration and info:(413) 625-0385 or cie@ciesimurro.com 

Piti Theatre's "Innocenzo" is on tour! Discovery Center (5/9, 11a.m.); GCTV (6/2, 5:30 p.m.); Riverfest, Senior Center (6/6, 1p.m.). Rehearsal for the GCTV 6/2 show is on 6/1 at Gfd. PublicLibrary, for ages 5-10. 4-5 p.m. Free. www.ptco.org/innocenzo.

Bee Weeks are coming! Attend pollinator-inspired events or cre-ate your own in Gfd (5/30 - 6/7) and N’hamp (5/26 - 6/7). Plant10% for the bees and inspire your neighbors. www.beeweek.org,jonathan@ptco.org, 625-6569

Shelburne Summer-Fall Sublet: Spacious 2-floor, 2-BR apt innon-smoking, quiet house next to stream & forest, close to Gfd.Rent: $800 (includes satellite internet & heat). Available June 10 -December. Shorter stay may be possible. Jonathan - 625-6569,jonathan@ptco.org

Funeral Planning for the Living: a 2-session credit-free work-shop at GCC, 6/11 and 6/18, 6-8 pm. Why leave all the decisionsto your grieving survivors, when you can thoughtfully and lovinglymake plans now? Register: www.gcc.mass.edu/shopcreditfree/ or(413) 775-1661. More info: call Carol, (413) 774-2320.

Just Roots and the Greenfield Community Farm — your com-munity farm. Come out for the Women in Farming weekend inten-sive, join a volunteer work party, or try a community workshop.Farm shares — accessible for all income levels — available,weekly pickups next to the co-op’s Green Fields Market, BrickHouse, Turners Falls and Greenfield Senior Center. justroots.org.

Affordable, scenic, co-working spaces available. Bridge OfFlowers Business Center, Shelburne Falls! Cubicles, worksta-tions, desks & hotspots, business class WiFi, networked multi-function printer & copier, fax, conference room, kitchen, showerand security. All utilities & maintenance included! Join 20+ busi-ness people. (413) 834-3477 bridgeofflowersbusinesscenter.com

Need a trained and compassionate partner for discernment orspiritual exploration? Spiritual Direction might help you Find YourYes! Jennie Isbell, M.A., M.Div., www.jennieisbell.com or jennieis-bell@gmail.com or (413) 426-0801. In person or via phone.

Come to Natural Roots in Conway for delicious, nourishing, freshvegetables, eggs and more, June-October. More flexible CSAoptions are now available! Support a horse-powered farm andbecome connected to this beautiful land and community. www.nat-uralroots.com or 369-4269.

Leadership and Life Coaching, ‘Run your Bars’ (a relaxing andreleasing energy experience): I can help you clarify and create thechange you desire! Call me for a unique energy experience orcomplimentary introductory coaching session. (413) 773-7899,wendy@wendygoodman.com

Experienced nanny available for childcare. Excellent refer-ences, playful and reliable. email: dsuller@comcast.net

Office space available at Community Yoga and WellnessCenter, Gfld. I am looking for one or two practitioners to share myspace. By day or by month, very reasonable rates and flexibleschedule. Contact Lisa: toalternatives@yahoo.com

Reiki sessions offered by Suzanne Gluck-Sosis. Reiki is agentle hands-on process that relaxes, soothes one's entire being,enhances one's joy of living. Reasonable sliding scale fee, joyful-suzanne@gmail.com.

Pilates/Stretch and feel wonderful class! Thursday evenings,7-8:30 in Shelburne Falls, sliding scale: $10-$14/class with FeliceWolfzahn, MFA, Pilates mat cert. PTAs.

Four harness, 30” floor loom. Hand made, mostly woodenparts. Foot pedal arrangement needs some work. $50 or B/O.Contact Loren: (413) 475-3605.

2 concerts benefiting 2 local orgs & honoring 2 extraordinarywomen! ~Sat. May 16, 7pm: Amandla Chorus (special guest FirePond) ~Sun., May 17, 3pm: Fire Pond (special guests AmandlaChorus) Second Cong. Church, Court Sq, Gfd. Honor the legacyof  Juanita Nelson &  celebrate the work of [Nobel Peace Prizerecipient]  Malala Yousafzai.  Benefit the  Literacy Project&  the  Greenfield Farmers’ Market “Double Your SNAP Dollars”program. Tix: World Eye Bookshop / brown paper tickets.

Co-operativesare based on the

values of self-help, self-responsibili-

ty, democracy, equality,

equity and solidarity and the

ethical values of honesty,

openness, social responsibility and

caring for others.

Cooperative Principlesare

guidelines by which cooperatives put

their values into practice.