HASS AVOCADO BOARD BOARD MEETING MINUTES

Transcription

1 HASS AVOCADO BOARD BOARD MEETING MINUTES A meeting of the (HAB) was held on Thursday, at 230 Commerce, Ste. 190, Irvine, California, with the following people in attendance: MEMBERS Jim Donovan Giovanni Cavaletto Ken Roth Jamie Johnson John Lindstrom Jimmy Lotufo Casimir Wytaniec Mike Sanders Araceli Zanabria Charley Wolk, Ex-Officio MEMBERS ABSENT Barry London Reuben Hofshi Ohannes Karaoghlanian ALTERNATES Ed Embly Katie Wild Scott Bauwens Tom Sowden Emily Greenberg Donna Singmaster Ramiro Ortega ALTERNATES ABSENT Bob Schaar OFFICIALLY PRESENT Maureen Pello, USDA Tom O Brien STAFF José Luis Obregón Robert Rumph Yvonne Seebach GUESTS Alia Gebelin Angelina McClellan Barry Newton Cindy Lee Ransur Dan Sanders Henry Nader Jessica Berlin Laura Cubillos Marji Morrow Steven Muro Tom Swoboda Veronica Espinosa Wenn Chen Will Carleton CALL TO ORDER Jim Donovan, Chairman (HAB) Chairman Jim Donovan called the meeting to order at 10:04am. Establish Quorum Mr. Donovan proceeded with roll call and established a quorum. Approve November Minutes No corrections or amendments were made to the November 17, 2010 Board meeting minutes. The of Directors approves the November 17, 2010 Minutes as presented. (Lotufo/Lindstrom) MSC Announcements There were no announcements. Fill Vacancies Mr. Donovan asked HAB Executive Director Jose Luis Obregon to give the board an update on the status of the vacancy seats. Mr. Obregon explained that because of two withdrawals and a resignation, more names were required for submission to USDA; a vote was taken for the Producer alternate seat (1) and Importer alternate seats (3). Candidates who were present at the meeting were giving a few moments to introduce themselves and explain their interest in being on the board. The following names were selected: Producers Jim Swoboda Will Carleton Importers Saad Khan, Cliff Cavazos Gahl Crane Henry Nader Bob Jajkowski Mike Parr

2 FINANCIAL REPORT Rumph/Lotufo Staff Life Insurance Coverage Update Mr. Lotufo opened with and continued the discussion from a previous meeting about adding life insurance to the HAB staff benefits package. He indicated that the finance committee decided that a recommendation for a motion was unnecessary in order to implement this benefit because as funds are available within the current budget and a budget amendment was not required. Following a brief discussion a board motion was made to approve this addition to the staff benefits. The the purchase of term life insurance for HAB staff membersin the amount of $ for per month for $170, worth of coverage. (Sanders/Singmaster) MSC 2010 Financial Update HAB Controller/Financial Manager Robert Rumph gave a brief report and update with regard to HAB 2010 finances. Mr. Donovan asked Mr. Rumph to address a discussion from the finance committee meeting with regard to non-membership entities providing extra funds and marketing. The membership regulations are changing and will result in HAB no longer receiving non-members funds, resulting in less cushion for HAB. FINANCIAL REPORT 11 Months Ending November 2010 Hass YTD Volume = 1,156.7 MM lbs. --- down 75.0 MM lbs from the 1,231.7 MM lb. estimate. HAB Revenues = $28.9 MM dollars --- down $2.9 MM from the $31.8 MM estimate. HAB Net Revenues = $5.69 MM dollars --- approximating the $5.75 MM estimate. HAB Reserves as of 11/30/10 = $2.1 MM down 0.69 MM from the $2.79 MM December 2009 ending amount. Statement of Net Assets, Revenue & Expenditures as of November 30, 2010 Total Assets = $4,803,639 Total Liabilities = $2,702,597 Total Net Assets = $2,101,042 Total Revenues = $28,941,935 Total Expenditures = $29,633,835 Excess of Revenues Over (Under) Expenditures = ($691,900) Schedule of Cash & Investments as of December 31, 2010 Cash in Bank Checking Account = $153,091 Investments = $1,549,024 Total Cash & Investments = $1,702,115 Audit Update and Agreed-Upon Procedures selections Mr. Lotufo informed the group about the committee s recommendation of which Agreed-Upon Procedures process would be audited in 2011 (in reference to a list of procedures that the Board developed and approved in 2008). He said that they have chosen to direct Mayer Hoffman McCann to audit the 2010 purchase order and time entry records. The approves the proposed Agreed-upon-Procedures to audit the 2010 Purchase order and time-entry records. (Lotufo/Sanders) MSC 2

3 CHAIRMAN S REPORT Donovan Committee Appointments Mr. Donovan provided an overview of the 2011 committee member recommendations. He indicated that many of the current members will term-out at the end in 2011 and wanted to appoint individuals who could serve this year and provide continuity for the next few years. He proceeded to review the list with the membership and requested a motion The approves the 2011 Executive, Finance, Nutrition and Marketing Committee members as presented. (Lotufo/Johnson) MSC USDA-HAB Association Meeting Report Mr. Donovan provided a brief summary of a meeting that the USDA arranged with all the avocado association s leaders and Board officers to discuss, among other subjects, HAB s current and anticipated position in the industry. He said a topic of discussion was the benefits of developing a global industry information system that is similar to the Avocado Marketing and Research Information Center (AMRIC) in California. Mr. Obregon proceeded with a brief explanation of AMRIC s functions and services, and how it opens up avocado market information in the US. He added that it is becoming increasingly apparent to the industry that as more avocados are being imported and as the import percentages outnumber the California percentages, this subject needs to be addressed. Mr. Obregon went on to say he has been having discussions about this with the USDA and legal counsel, to formulate the best option to formalize a system to track avocado imports and sales in the United States. Mr. Donovan continued his meeting report and said the group discussed strategic planning, and the prospect of working together on a blueprint of what HAB and the avocado industry might or should look like in five years. He added that attendees agreed that kind of planning needs to occur. Suggested next steps include a brainstorming session to facilitate consensus and a move toward how to frame the process. Mr. Obregon added that there is common ground among the Executive Directors of each association to work together in having initial planning discussions. Mr. Donovan asked the Board to approve directing HAB staff to move forward to facilitate the strategic planning process, work on a timeline and consider costs involved. Mr. Donovan indicated that there is not an immediate timeline to accomplish this, but that he wants to see the structure established and ensure movement on the process. The approves and directs staff to pursue the development of a strategic planning session in conjunction with the Hass Avocado Promotion Research and Information Order (HAPRIO) associations. (Lotufo/Cavaletto)MSC Performance Evaluation Program During the November meeting, the Board voted to contract with Barry Newton, a consultant with Creative Management Solutions, to review and possibly revise the HAB employee performance evaluation process. Mr. Newton gave a presentation of his findings and recommendations. The approves and accepts the Performance Appraisal Guidelines developed by Creative Management Solutions as presented. (Lindstrom/Lotufo)MSC The complete attachments of the 2011 Performance Appraisal Program: Board Presentation, Executive Director Performance Appraisal Orientation, Executive Director Performance Appraisal is attached to the permanent copy of these Minutes and identified as Exhibit A. 3

4 CLOSED SESSION Managing Directors 2010 Performance Review Results. The performance review was postponed pending review and approval of the new Performance Appraisal Guidelines. MANAGING DIRECTOR S REPORT Obregón Fall Game Day Entertainment Results Mr. Obregon gave a review of the discussions and events leading up to the fall programs, that due to increased volume leading into the fall season, a funding partnership was established to increase consumption during a time of potential record-level volume. He introduced Diane Dreyer and Cindy Lee Ransur from Dentsu America, who administered the Fall Game Day Entertainment. They proceeded with a presentation and summary recap of the joint promotion between HAB, the California Avocado Commission (CAC) and the Chilean Avocado Importers Association (CAIA). The complete attachment of the HAB Joint Promotion-College Football Recap 2010 is attached to the permanent copy of these Minutes and identified as Exhibit B Super Bowl Activities Mr. Obregon reported that HAB had secured Joe Montana as Board Spokesperson for the 2011 Super Bowl activities. Mr. Montana will be conducting outreach with various media outlets during the week leading into Super Bowl and will be promoting the consumption of Hass Avocados. NEW BUSINESS HAB Counsel Tom O Brien distributed a document with a summary of the new federal food safety reform that was signed into law. The complete attachment of the Summary of New Federal Food Safety Law is attached to the permanent record of these minutes and is identified as Exhibit C. Mr. Obregon addressed the Board about the 2011 World Avocado Congress planned for early September in Cairns, Australia. Typically HAB covers the current Chairman s expenses to attend this event, but Mr. Donovan indicated that he is attending on behalf of his employer. As a result, it might be the Board s wish to cover expenses for a different member. No Decision was made and the subject will be readdressed at the April meeting. Mr. Donovan asked Board Vice-Chair Ken Roth to address the group with regard to furthering the members understanding of Board governance. Mr. Roth has recommended that Board members receive training about governance principles. The directs the HAB staff to conduct a formal search on the resources available and related costs to educate the Board on formal governance and to present this information at the April Board meeting. (Roth/Lotufo) MSC PUBLIC COMMENT There was no public comment. ADJOURN Mr. Donovan adjourned the meeting at 12:35 pm The next meeting will be held Thursday, April 7,

5 Respectfully submitted, Yvonne Seebach, Staff I certify that the above is a true and accurate statement of the Minutes approved by the HAB Board of Directors on: Giovanni Cavaletto, Secretary 5