Memo of Understanding

When the Interim Board of Directors was formed there was considerable discussion about the relationship between the Piedmont Biofuels Cooperative and Piedmont Biofuels Industrial.  It was decided that a Memo of Understanding be drafted that could serve as a roadmap for going forward together.  This is what was drafted:

This Memo of Understanding is between Piedmont Biofuels Cooperative and Piedmont Biofuels Industrial.

Piedmont Biofuels Cooperative is a North Carolina Corporation that is owned by its members and governed by its Board of Directors and wishes to establish itself as a “consumer” Cooperative that will develop an attractive and successful model for community and patron-ownership for biodiesel consumption.

Piedmont Biofuels Industrial is a North Carolina LLC that is owned by its shareholders and governed by its operating agreement.

The purpose of this Memo of Understanding is to ensure the best interests of Piedmont Biofuels Cooperative’s member-owners, and the best interests of Piedmont Biofuels Industrial’s employees and stakeholders. To this end Piedmont Biofuels Industrial will serve as a “Contractor.”

The Board of Directors ask that the Contractor perform the following:

Maintain its locations of the B100 Community Trail.  These locations include Moncure, Pittsboro, Carrboro, Burlington, Raleigh, Saxapahaw, and any future locations that are established.

Maintenance includes all operational facets, from pumps to fuel filters to dispensers, and also includes ensuring that each location is stocked with fuel at all times.  Contractor is expected to manage the appropriate blend levels at all trail locations depending on weather conditions.

Contractor will also maintain communication with the Coop members. This communication ranges from blend levels to maintenance issues as they arise, and can come in the form of emails, newsletters, and signage at the Trail locations.

Contractor will also maintain the Members Database, manage member renewals, expired credit cards, Efueling cards etc.  Contractor will handle all administrative issues associated with the management of Trail locations, including negotiations with landlords, all applicable road taxes, property taxes, permitting etc.

The Contractor asks The Board of Directors perform the following:

Hold meetings from time to time to address matters that are germane to the membership, including but not limited to: fuel pricing, future locations, Coop member events, etc.

Conduct an Annual Meeting in accordance with the By-Laws.

Create an Annual Report for the membership.

Generally provide guidance and advice on improvements and smooth operations of Piedmont’s locations of the B100 Community Trail, and provide governance of Piedmont Biofuels Cooperative as a corporation.

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