2021 ANNUAL MEETING MINUTES

UNAPPROVED
Garden City Co-op, Inc
Annual Stockholders Meeting
December 7, 2021

 The Annual Meeting of the Stockholders of the Garden City Co-op, Inc. (GCC) met Tuesday, December 7, 2021, at the Clarion Inn and Convention Center, Garden City, Kansas. This meeting represents Fiscal Year Sept 2020 thru August 2021.

 At 2:00 p.m., Tyler Hands, Board Chairman, called the 102nd annual meeting to order. Directors in attendance were Gordon Drees, Chris Fullmer, Clayton Maddux, Joanna Schmeeckle, Lynn Teeter, and Max Engler. Associate Directors in attendance were Keith Miller, Kyle Deaver, and Dylan Linenberger.

 Tyler Hands advised that there were 183 voting members present, thus making a quorum. Tyler further advised that on November 16, 2021, 1475 notices were mailed, and certified by the U.S. Post Office. Tyler asked for any corrections to the minutes from the 2020 annual meeting. With no corrections, minutes were approved as provided.

 Tyler Hands welcomed members and expressed the Board of Directors’ appreciation for their attendance. He also recognized past board members.

 Jeff Boyd introduced special guests Kendall Poland with Sublette Co-op, Michael Kempke from Cooperative Grain and Supply, Nick Meuting with Lindberg Vogel Pierce Faris, Charlie Saurwein, Elias Vargas, and Adam Watson of Windriver Grain, Scott Anderson and Lee Gleason from Pro Value Insurance, Stan Stark and Kyle Eberle with Alliance Ag and Grain, and Jonathan Lightner and Rich Harp of Commerce Bank.

 Kelly Drees, CFO, described the items in the registration packet. Kelly then discussed the financial statement of operations, Sept 1, 2020, thru August 31, 2021. Kelly discussed patronage and equity and the PPP Loan redemption. The wheat crop was stronger and larger than the previous year and fall crops were down. Grain gross margins saw a decrease, attributed to less storage and handling income. Property tax increases also affected grain margins. The energy sector saw the Scott City terminal continuing to have shortages. We were able to provide fuel to patrons because of our storage at Lowe. Agronomy had a 5% margin increase. We had increased working capital and were able to pay down 2.4 million in debt. Kelly also discussed patronage allocation and the DPAD. Nick Meuting with Lindberg Vogel Pierce Faris was invited forward to give his audit opinion, which was favorable toward the Garden City Co-op.

 The following financial information was reviewed: Sales $256,406,730.79; Gross Margins $22,923,172.78; Gross Income from Local Operations $30,817,526.34; Total Assets $191,061,039.93; Total Current Liability $79,649,878.87, Total Long-Term Liabilities $12,120,596.49; Total Members’ Equity $99,290,564.57; Retained Savings are at $2,400,631.70; Total Patronage Dividends are at $1,084,771.70. Nick Mueting of Lindburg Vogel Pierce Faris stated that he had submitted an unmodified or clean opinion on the August 31, 2021, financial statements. There were no questions or comments regarding the financial report.

 Tyler then introduced the current Board of Directors and their spouses. During the 2020–2021 year, Kyle Deaver completed his term as an associate. Kyle gave his associate’s speech, stating he had a great experience as an associate and thanked everyone for allowing him to serve. Tyler introduced new associates Dylan Linenberger and Zion Roth.

 Tyler gave the chairman report, discussing K-State’s 16 goals for success and how they relate to the mission and vision of the Garden City Co-op.

 There were nine regular meetings and one emergency Zoom meeting. There were three monthly meetings which did not have full attendance.

 Jeff Boyd gave the General Manager’s Report. He thanked everyone for attending the meeting and spoke about community, volunteerism, and financial giving. Jeff also mentioned the REACH committee, various organizations we support, and the MOLZ scholarship. Jeff commented on the vaccine mandate and labor shortages, and how GCC has had to adjust work environments and pay structures to battle the labor market. Onboarding, reboarding, and project management will be the focus of the co-op moving forward.  Through all these challenges, we will continue to make sure farmers have what they need when they need it, from ag inputs and petroleum to grain storage solutions. Jeff talked of plans to build a grain shuttle loader. After numerous studies, it was determined the financial return will be profitable, and should not interfere with our relationship with Windriver. This project allows us to offer additional marketing options and have more logistical control to maximize efficiency and storage for our locations. Jeff shared renderings of the project and the new site that is near Tyson. The site would be named River Valley, in honor of Herb Clutter.

 A video was shown highlighting the 7^th Cooperative Principle of Community. It was created by GCC Communications Director Trevor Hands.

 Tyler then introduced Tom Mulville with the nominating committee report. The nominating committee consists of Tom Mulville and Tim Miller. Nominees are Tyler Hands, Gordon Drees, and Kyle Deaver. Clayton Maddux asked for two selections to be made. There were no nominations from the floor. Tyler Hands and Gordon Drees were reelected to the board of directors. Nick Meuting oversaw the vote.

 Years of Service Recognition: 5 Years-Gilberto Cruz, Chris Cruz, Brady Eakes, Norman Hensley, Matthew Jones, Felix Oronia and Darroch Perkins; 10 Years-Dustyn Arde and Jesse Ming; 15 Year-Ryan Kennedy and Cindy Kotara;

35 Year-Kevin Dickson and Ann Jackson; 40 Year-Chris Murphy; Retirement: Deb Lee.

 Tyler asked for new business. There was no new or old business.

 A Question-and-Answer session was then opened.

1. Will we own 100 % of the River Valley Terminal? Yes, it will be owned by GCC and our members.
2. Start Date of the Construction? Hoping for the spring of 2022 with a projected 14 months to build.
3. What is the cost of the project? We are approved up to 30 million.
4. How is the reaction from Windriver/Cargill?  There will be discussion with Windriver on how we can work and evolve together.
5. Why will the facility be built from concrete rather than steel? Concrete is less expensive and lasts much longer.

 Tyler issued a reminder that the Molz Scholarship is available for immediate family of members and employees and that patronage checks would be distributed the following week.

 Early redemptions of stock up to $1,000 were given to David Skipper, Monte Miller, Crait Tuttle, Josh Beaten, and Peter Kueker.

 It was moved and seconded that the meeting be adjourned.