BOARD OF DIRECTORS MEETING, March 17, 2015
CTAHR Conference Room, Kainaliu
Board Members Present: Tom Butler, Anita Kelleher, Bruce Corker, Kurt Schweickhard, Colehour Bondera, Christine Coleman, Kally Goschke, Mary Lou Moss, Randy Phillips, Judy Schuman, Suzanne Shriner, Cea Smith, Allan Wong
Guest: KCFA Member John Koontz
Call to Order at 4:00 pm by President Tom Butler.
100% Kona Coffee provided by Kurt Schweickhard. Thank you.
Coffee next month: Bruce Corker
February Minutes—Colehour moved to accept the minutes with a second from Anita. Motion passed.
Treasurer’s Report—Kurt reviewed the financial statements and noted that the end of our fiscal year is 6/30. New budget templates will be provided to the Board on or prior to April 21 so that committees have time to work on their budgets. On May 19 there will be a preliminary budget meeting with final proposed committee budgets. The Treasurer will then compile all committee budgets and forward them on about June 1st. The final budget meeting will be no later then June 16, 2015. Bruce moved to accept the Treasurer’s report with a second from Judy. Motion passed.
New BUSINESS
NEW HDOA CBB QUARANTINE CONDITIONS—Bruce
A report was given on the presentation (“Meeting To Inform Coffee Growers About New Coffee Shipping Permit Conditions”) given earlier in the day (March 17) at CTAHR by HDOA representatives from Honolulu, Chris Kishimoto and Teresa Manzano. The “new conditions” are being made following the extension of the CBB Quarantine to Oahu. About 20 Kona farmers attended the meeting. To the surprise of farmers, HDOA is not changing green coffee quarantine shipping requirements from Kona to Oahu--despite confirmed CBB infestation of Oahu. Even more surprising was an announcement that because USPS/Fed Ex/UPS shipments are transshipped through Oahu, even double-bagged small quantities of green coffee to the Mainland (for example 5 lbs. of green to a Mainland home roaster) must now be inspected and stamped as approved by HDOA inspectors at the Kona Airport. The HDOA representatives were not able to explain to the satisfaction of farmers why these double-bagged transshipments through Honolulu presented a risk to coffee grown on Kauai, Maui or Moloka’i. Farmers requested a meeting with the Acting Director of the Plant Quarantine Branch, who apparently has discretion “to authorize the transportation of an untreated infested commodity to an island where the pest is known to be established.”
MEMBERSHIP QUESTIONS CHANGE—Cea
Changes have been made in the website membership application forms to assure compliance with KCFA By-Laws. The revised website forms ask applicants for “voting membership” to indicate that they derive a majority of their coffee-related income from the sale of coffee grown on their Kona property and that they support the objectives of the KCFA. Associate and Supporting Members are asked to indicate that they support the objectives of the KCFA. Paper application forms are being revised to also include these questions.
BY-LAWS CHANGE—Tom
A proposed amendment to the By-Laws will be drafted to make explicit what is now an implicit requirement—that support the objectives of the KCFA is required for voting membership. The proposal will be presented to the Board with a recommendation that the amendment be submitted to the membership for approval at the next Annual General Meeting.
HOLUAKOA GARDENS FUNDRAISER—Anita and Chris
There was a discussion of organizing a social/fundraising event at the Holuakoa Gardens restaurant in Holualoa—with recognition that this restaurant exclusively serves 100% Kona coffee. Anita and Chris were encouraged to do so. They also requested Board members to pass along additional suggestions and ideas to the Social Committee for other social/fundraising events for members. [Related matter: Tom will make an inquiry to Kona Brewery representatives as to why KCFA was not invited to participate in this year’s Brewfest.]
HANO WORKSHOP—Colehour
Colehour noted that it has been 4 years since our workshop on development and operation of non-profits given by HANO, an Oahu-based non-profit advisory organization. He suggested that a follow up workshop may be useful for the continuing development of the KCFA. Colehour will prepare a proposal for consideration by the Board at a future meeting.
MEETING WITH SEN. HIRONO/DEPUTY USDA SECRETARY—Bruce
Senator Mazie Hirono will be hosting USDA Deputy Secretary of Agriculture Krysta Harden next month in Hawaii and has requested a meeting with KCFA Board members to discuss matters of interest to Kona coffee farmers. The meeting will be on April 10 at Higasihara Park.
KCFA “COFFEE SHACK”—Mary Lou
The KCFA “Coffee Shack” trailer--used for parades, the Coffee & Art Stroll and other events--is in need of repair. Bruce moved with a second from Colehour that Anita and Jim Kelleher be authorized to organize a work party for the repairs and to spend up to $1000 on the project—with a cost estimate prior to beginning the work. Motion passed.
MACFARMS—Bruce
There will be a meeting with MacFarms Business Manager, Larry Nixon, on Thursday, March 19, at 3:30 pm at Higashihara Park. The meeting will be to discuss the verified use of 100% Kona coffee as the coffee flavoring ingredient in MacFarms’ “Kona Coffee/DarkChocolate/Macadamia nuts” product. All interested Board members are encouraged to participate in the meeting.
COMMITTEE ORGANIZATION—Tom/Cea:
There was extended discussion of organization, leadership and membership of KCFA Committees. Based on input from the discussion, Tom and Cea will present a proposal at the April Board meeting for committee designations and assignments.
HONOLULU MAGAZINE/PROPOSAL TO GREENWELL FARMS
Tom Butler has prepared and will hand deliver to Tom Greenwell of Greenwell Farms an invitation to meet and discuss with KCFA ways for cooperation in seeking investigation by the authorities of suspected instances of coffee fraud on Oahu. An article in the December edition of Honolulu Magazine detailed Tom Greenwell’s concerns that packages of fraudulently labeled 100% Kona coffee are being offered for sale “all over Oahu”.
Meeting adjourned at 4:45 pm.
Submitted by Bruce Corker, Secretary
Committee Reports for March 17, 2015
*Branding- Corker/Smith
*CBB Task Force Report- K. Schweickhard
Education/Coffee Talk- C. Bondera/ S. Shriner
Grant Refresher Workshop March 23 from 2-4 at CTAHR
Finance - K. Schweickhard/M. Moss
Aloha Board;
- February Balance Sheet and P & L circulated to Board. Please note: Available Unrestricted Funds are $44,824.16. (Total checking/Savings less Temp Restricted Net Assets [Temp Restricted Grant Funds])
- Periodically I like to underscore the importance and necessity to have good financial information exchange between Board members and Treasurer. Some time ago (2 1/2 years) the finance committee established
“Best Practices” protocol and it is much appreciated that most board members are fully cooperating. Reemphasizing some of the key points:
- Any expense or purchase on behalf of KCFA by a Committee Chair or Board Member has to be documented and provided to Treasurer in a timely manner. (Prior to end of the month)
- The tool to be used is an “Expense/Income” Voucher stating the amount, purpose, authorization and target budget so that it can be properly recorded and allocated, (Committee)
Accompanied by appropriate documentation. (Originals If at all possible)
- KCFA`s books are operating on accrual rather than cash based system, meaning that expenses and income have to be recorded when incurred and not when received or paid for.
- This is essential for Treasurer to provide the Board with accurate monthly financial reports.
- As a tax exempt organization, 501(c) 6, KCFA is obligated to keep accurate, transparent and timely records, ready to be audited by State or Federal agencies.
- Thinking Budget 2015/2016
To have this year’s budget meeting wrapped up by June 2015, I am proposing the following schedule:
- Committee Budget templates to Board by April meeting - 4/21/15
- Preliminary budget meeting in May – 5/19/15, with final Committee budgets.
- Treasurer to compile all Committee budgets and forward to Board on or about June 1st.
- Final Budget meeting no later than June 16, 2015
Last year ended up to be rush, rush, perhaps we can do better this year, and I will be off Island as of July 3rd.
*Fundraising – ML Moss/ C. Coleman R. Phillips/
Geographic Identities- C. Bondera
Here is the report for the Geographical Identity Committee:
- Annual elections resulted in a new Officers of BOD, and Colehour is now Secretary for American Origin Products Association (AOPA).
- Another of the rotating meetings by the American Origin Products Research Foundation to educate about origin products was held in New Mexico on March 5 via Webinar (see http://cast.uark.edu/assets/files/PDF/EUTRD2014-2015/TRD-Panel_5_Program-NEWFinal.pdf).
- Efforts are underway to potentially formalize the relations between the National Farmers Union and AOPA and AOPRF in terms of working towards common goals including protection of designations of origin for products across the US.
HDOA Grant Committee-C. Bondera
Here is the update for the ad hoc HDOA Grant Committee:
- Second quarterly report was submitted from KCFA to HDOA.
- Request will be made for an extension to the grant, since we still have money and need to extend using it beyond the June date of the current agreement.
- Farm & Garden is being communicated with the ensure that they will have product stock on hand as farmers again seek subsidized Bb from their stores.
- At this time we will meet the request for participating in the grant by offering Refresher Workshops as needed. The next one is now scheduled for Monday, March 23 from 2:00-4:00pm at the CTAHR meeting room.
*HFUU -C. Bondera
Legislative - B. Corker
LEGISLATIVE COMMITTEE
1—Truth-In-Coffee-Labeling—SB594 and HB387: Notwithstanding a unanimously adopted Resolution from the Hawaii County Council and a Petition with more than 1,800 signatures asking for reform of the State’s disgraceful 10% coffee blend labeling law, for the 24th straight year the Hawaii State Legislature has failed to act. House Agriculture Committee Chair Clift Tsuji killed Rep. Richard Creagan’s bill (HB387) by failing to give it a hearing. Sen. Russell Ruderman’s bill (SB594) was given a hearing by the Senate Agriculture Committee, but died when Sen. Rosalyn Baker (Senate CPN Chair) and Sen. Jill Tokuda (Senate WAM Chair) refused to hear the bill.
As Sen. Ruderman told West Hawaii Today, fair labeling for Hawaii coffee is “one of those things where money and politics is the problem with politics.”
Opposition from the moneyed interests that benefit from deceptive coffee labeling (specifically including the Hawaii Coffee Co./Paradise Beverages/Topa Enterprises corporate conglomerate) was on full display at the February 17 Senate Ag hearing on SB594. There was oppositions testimony from Hawaii Coffee Co. employees Jim Wayman and Roger Kaiwi, Paul Ah Cook and other employees of Paradise Beverages, and Gary Strawn and David Bateman of KCC—plus more than a dozen representatives of various business organizations recruited by the blenders to testify that 10% Hawaii coffee blends are good for business in Hawaii.
The Legislative Committee thanks the following for their continuing support for reform of the 10% coffee blend law: Brenda Ford and the Hawaii County Council; Sen. Russell Ruderman; Rep Richard Creagan; Rep. Nicole Lowen; KCFA members and supporters who submitted supporting testimony; and the 1,800+ signers of the online petition.
Next year will mark a quarter century that Hawaii has been the only region anywhere in the world to authorize the use of its geographical names on one of Hawaii's heritage agricultural products with only 10% genuine content.
2—Other Bills: KCFA has submitted testimony on the following additional bills:
**In opposition to SB1294: 10% cacao blend labeling bill. Killed by House Ag Committee after a hearing.
**In support of SB598/HB482: to create and fund a full time position to manage HDOA subsidies for CBB pesticides. HB482 passed in the House and has been sent to the Senate.
**In support of the objective and with suggested amendments for SB604: the Hawaii Farmers Union’s bill creating a Hawaii “origin products” commission. Given a hearing by Senate Ag Committee, but deferred/killed.
**In opposition to HB1051: a poorly crafted bill to give “origin product” designation authority to HDOA rather than to a state commission. This bill is supported by Hawaii Coffee Co, Paradise Beverages and their allies. Passed in the House and sent to the Senate.
Membership – C. Smith
New Voting Members: Maurice Pinker and Mary Katherine Trevithick, New Associate Member: Jolani Shrinski,
Total Members: 353---Farmer Members: 275, Associate Members: 43 and Supporting Business Members: 35—4 Renewals-
Developed “Welcome letters” for each Membership Category and ditto “Thank you for Renewing” Letters
Newsletter -C. Wilson
Articles requested by March 29, 2015 for April Newsletter!
Pest & Disease - B. Smith
Plan to attend the Tuesday, March 17, 2015 meeting at CTAHR regarding “New Coffee Shipping Permit Conditions”.
PR - A. Kelleher
Aloha All,
- Petition Ad in WHT
- Sent the Newsletter out
- Sent hand written thank you notes for Expo speaker/attendance to the following;
- Representative Lowen, Lisa Keith, Brenda Ford, Ken Kakesako, Robert Curtis, Deputy Phyllis Shimabuko-Geiser
- Correspondence with ABC regarding Truth-in-labeling
Regards, Anita
*Social Events - C. Coleman/M.Moss
Website/Membership -C. Smith
Put statements-(see below) - on applications for New and for Renewal Members to say <yes> before able to proceed:
Active Voting Members:
1.Do you derive the majority of your coffee-related income from coffee grown on your Kona coffee farm?
2. Do you support the KCFA Mission and Objectives (link)
Associate and Supporting Business Members:
Do you support the KCFA Mission and Objectives (link)
