Board of Directors & Diocesan Council

BOARD OF DIRECTORS & DIOCESAN COUNCIL

Oct. 6, 2012 10:00 AM – 3:00 PM

ALL SAINTS’ EPISCOPAL CHURCH∙2150 BENTON DR.∙REDDING, CA 96003

Present: +Barry Beisner, Tom Ewart, Deacon Cindy Long, George Henry, Bob Hall, Cliff Haggenjos+, Jeff Frost+, Ray Hess+, John Miller, Seth Kellermann+, Charles Mack, Nancy Mack, Deacon Dave Ferrell, Margrett Dunning, Lucretia Jevne+

Via Conference call: Charlie Chapman, Phil Reinheimer+, Carlton Allen

Absent: Lynn Hill, Miles Snyder

Staff: Thea Mangels, Lisa Bruno

Guests: John Mangels+

1. Call to Order – 10 am

1. Meditation – 15th Chapter of Corinthians – The Bishop led a meditation on the King James’ Bible’s version of this text, much of which is the work of William Tyndle. The King James’ Bible was the work of a church committee.

1. Minutes of Meetings

a.Board:6/23/12 - In section VII, 25% Corrected to read 22%, John Miller moved Charles Mack seconded, the motion passed with no abstentions,

b.8/2/12, 9/14/2012 John Miller moved that both minutes be approved as submitted, the motion was seconded and approved.

c.9/20/2012 There was one correction to substitute “vestry discussion” for parish discussion. Cliff moved to keep these minutes in a confidential minute book. John Miller seconded. Passed with no absentions.*

d.Council: 8/25/12 Phil moved. Lucretia seconded. Passed with no abstentions. *

1. Bishop’s Report

a.The Bible Challenge is going forward. You will be given the opportunity to sign up. A number of our clergy have already signed up. The form will go out at convocations and convention and the hope is that all congregations will work together throughout the year. This is a major adult Christian Formation opportunity.

b.There have been some staff changes, including Lisa Bruno who was able to join the last Council meeting. Jenifer announced her resignation and the Bishop invited Thea to take her place. We then had an opening in the position of Office Manager and News Editor. We hired a new staff person who comes from the diocese of Nebraska, Nicole Baxley. Nicole has a graduate degree in communications and experience in administration. We are looking forward to Britt’s return from Sabbatical. She safely returned from the Sudan to England.

c.Cameron Park has called a new rector as has Folsom. St. Paul’s in Healdsburg is considering a new priest in charge. The Bishop is also meeting with St. Michael’s in Carmichael and Epiphany Vacaville. He also met with St. Francis’, Fair Oaks and helped them call their priest in charge. He will be working with both Christ Church, Eureka, and St. Luke’s, Calistoga to help them call priests in charge. A priest in charge is more than long term supply, but less than a rector. The Bishop does not allow a congregation to call a part-time rector. A priest in charge has the authority of a rector, an interim does not.

d.Ordinations– There will be two people ordained October 13th as a part of the convocation celebration in the Sierra deanery. Donna Lee Hart will be ordained a deacon in November. She is the first deacon ordained as a part of a total ministry team. Steve Moore will be received into the priesthood at the end of this month.

e.Sara Potter is the new Dean in Semper Virens. The West Deanery has a new name – the Russian River Deanery.

f.General Convention – About 40 resolutions were referred to dioceses.

g.Board of Trustees – December Meeting, January retreat. No other meetings scheduled. We will need to schedule meetings pretty quickly. Meetings will need to be every other month.

1. Bishop Letter of Agreement*

a.Page 2 of Appendix A – the pension fund amount should read $20,934.26.

b.The bishops of our office have never had a letter of agreement. Bishop Beisner collected 4 samples from the Presiding Bishop’s office. He worked with the Employment Practices and Benefits committee to try to put his LOA together. Creating an LOA establishes a precedent for all future bishops in this diocese. A rector LOA is between a rector, a vestry, and the Bishop. There is not an exact correlation on a diocesan level. All of the example LOAs that the Bishop collected were between Bishops and Standing Committees. Our Chancellor said that because there were financial implications to the LOA, the Board should be a party to the LOA. Standing Committee has approved this LOA.

c.Dave Ferrell moved that we approve the LOA as presented with the amendment to Appendix A. John Miller seconded. The matter passed unanimously with no abstentions.

1. There was discussion of the provision of residence for the Bishop – this has happened for previous bishops. Our current Bishop did not need one, but we assisted his Canon to the Ordinary.
2. Mutual Ministry Review will happen at the retreat in January. There is a Standing Committee presence at this process.
3. The continuing education allotment and the sabbatical provision are the same as those for a rector.
4. The intention is to consult the Trustees about any revision.

1. Administration & Finance – Director of Administration and Finance Lisa Bruno presented.

a.Financial Reports July* - We have a surplus of about $218 thousand dollars. Office of the Bishop expenses to date are lower by $16 thousand than expected. There is a $47,000 amount left over year to date in Congregational Development/Support compared to budget. Most likely these areas will have more expenses that will offset the surplus by year end.

b.Accounts Receivable Aging Memo* - Cassie’s memo indicates that St. George’s Carmichael, Eureka, and Petaluma all have past due apportionment but are making payments and no action is needed. The closing of the Montessori school creates a significant deficit in the 2012 budget for St. Helena – it is unclear if she is aware of the agreement that Board and Council made with St. Helena in June. Lisa will make sure that the accounting department is informed. St. Matthew’s loan has been deferred until 2013 (May 1 teleconf). TMRs missing are for board information, Accounting is following up.

c.Memo Re: COLA from EP&B* - Memorandum from the Rev. Liz Armstrong was presented by Lisa Bruno. This is reflected in the budget and recommended to all congregations.

d.Congregational Range Chart 2013 - Salary ranges have been adjusted to reflect that 1.5% COLA. We will send out an adjusted version with line F with $72007 as the base salary and a totals line will be added. Bob moved that we adopt the congregational ranges and the salary ranges including COLA with the two corrections (Pending budget approval of COLA). Seth Kellermann seconded. The motioned carried with no abstentions.

e.Credit Card Approval for Thea Mangels* - Cliff Haggenjos moved that we approve the credit card balance with the limits and names as presented. John Miller seconded. The motion carried with no abstentions.

f.PERS Bequest* - John Miller moved that the Board concur with the request of Council. Jeff Frost+ Seconded. The motion carried. No abstentions.

g.Vacaville Apportionment Rebate Appeal - In order to qualify for the rebate, each congregation must meet specific requirements. These requirements were not met by Epiphany, and the apportionment committee denied the application of the congregation. An appeal has been made to the Board of Directors, so the Board must review. Charles Mack moved approval and Dave Ferril seconded. The motion passed with one vote against.

h.Loan to St. Mary’s, Elk Grove - Unless action is taken by the Board and Council, St. Mary’s will begin payments of $1256.77 plus interest in January of 2013.

1. John Miller moved that the Diocese forgive the loan to St. Mary’s of $238,098. Cliff Haggenjos seconded.
2. The diocese purchased the land out of ministry development funds. The value of the loan was based on the value of the land at the time. St. Mary’s will not be able to develop that land. They would like more time or debt forgiveness, or to give the land back to the Diocese.
3. John Miller moved that we table his motion. Charlie Chapman seconded. The motion passed.
4. John Miller moved that the Board,while recognizing a historical interest of St. Mary’s Elk Grove in money derived from the sale of property resulting in $740,500 in the Growing in Unity Fund, asserts its right to dispose of all or part of that money as is best for the diocese as a whole. He further moved that the board suspend payments on the loan of $238,098 until January 2014 at which time St. Mary’seither begin payments or return the land to the diocese. He further moved that St. Mary’s be asked to present concrete plans for growth before January 2014. Cliff Haggenjos Seconded. The motion carried with no abstention or dissension.
5. Ray Hess explained that there was a sale of property in Elk Grove which resulted in a sum of money being held for Elk Grove.
6. At a joint meeting of Board and Council in 2010 in Rocklin, the Board and Council gave Elk Grove permission to purchase portable buildings and permits at $740,495 from the funds that the diocese was holding for St. Mary’s and a loan from the Burnet fund; the portables and the loan did not happen.
7. At the same time we are receiving this request, we are also getting requests from many congregations for apportionment relief. How do we meet both requests?
8. The money that was set aside was set aside for building projects. At this point, we know that some money has already been spent on building projects, either from Ministry Development or from Growing in Unity. Before we make decisions on restricting money for Elk Grove, does the Board need to establish how much money is in each fund? Memo from Cassie -as of June (in advance of the allocation to Rocklin) there were $230,933 in Growing in Unity in addition to $740,500 designated to use for Elk Grove. $205,800 was given to Rocklin. The $740,500 is designated for Elk Grove in Growing in Unity.
9. The Growing in Unity Fund money is for three purposes: Establishment of new congregations,redevelop existing parishes, or to make resources available for ministries to better serve God’s people in the geographic area that is the Diocese of Northern California.

1. Lunch - All Saints’ Presentation – Recess for lunch 12:02 Reconvene for All Saints’ presentation at 12:20. The Vestry at All Saints’ presented on their Vestry style which is a commission based Vestry. Each commission is chaired by a commissioner.

1. Budget 2013- John Mangels+ presented the budget. Total Realized investment income – change in budget - $29000 (8 becomes a 2) the totals under it should be 1,075. The budget is a new format so that it is clear how much money is coming out of the reserves.

a.The Budget committee suggests that the Board of Trustees set up a Budget and Finance Committee beginning next year. This new committee will include a charter which would clearly define the responsibility and authority of the Budget and Finance committee.

b.This budget also changes how we deal with the Foundation.

c.The rate of reimbursement for Deacon’s mileage has been increased at the Bishop’s request to an employee rate. This will create administrative costs and additional forms. This is under the Archdeacon line item in the budget.

d.The Budget includes the COLA recommendation from the Employment Practices and Benefits Committee.

e.They made additional cuts to balance the budget after they had a significantly lean budget because the budget was not balanced. They reduced travel and lodging from the operating budget by $400, they reduced continuing education in the operating budget by $300, they reduced board of trustees by $500, and CNP by $1,400.

f.The budget will be presented at all Convocations.

g.Cliff Haggenjos moved that we approve the budget as presented. Bob Hall seconded. The motion passed with no abstentionsor dissensions.

1. Roseville School Legal Matter – This is summarized in the confidential minutes. We discussed it briefly.

1. River City LEVN Letter- We received a letter of thanks from River City.

1. Apportionment Reform– The Resolutions Committee received a couple of resolutions on Apportionment. One from Brian Baker+ asking that within 3 years Apportionment be capped at 15%. Grace Fairfield asked that in 2 years apportionment be capped at 12%. The third was from Yuba City and asked that gifts in kind be counted towards apportionment. Based on these three resolutions, Cliff, Bob Hall, and the Bishop met to try to come up with a resolution that would work for the diocese as a whole. The result is the draft resolution which is in the board packet. Both Brian+ and Debra+ have withdrawn their resolutions. The senior warden in Yuba City may withdraw his resolution.

a.The resolution has a clause which is in conflict with canons. Debra+ and Brian+ were okay with withdrawing their resolutions because there was an automatic solution if the Board of Trustees did not act. If we strike the remainder of the task. There was discussion about striking everything after 20/15/10. We will also strike the apostrophe in the explanation. Cliff moved that he and Bob present the modified resolution on behalf of the Board and Council from the floor of Convention.

b.If the presenters agree, we can present this as a substitution for resolutions which were presented on time (which would mean that it is not a floor resolution). Cliff will confirm.

1. Convention 2012

a.Plans

1. This convention will also be a 1 day business meeting. Unlike last year we will not be ending early. We will be having table discussions this year. The table discussions will be on the topic of apportionment reform. Each deputy should come armed with the best ideas from his/her congregation on apportionment reform. There was suggestion that we have materials at the tables for people to use in addition to the ideas they bring from convocations and their congregations.

b.Resolutions

1. Ministry Development Fund – There should be an amendment that the money come from Growing in unity or the Mission Development Funds. Cliff moved that the Board of Directors and Diocesan Council bring this amended resolution to Diocesan Convention. Bob Hall seconded. The motion carried with some dissent. There were no abstentions.
2. In 2000 when this same idea was used, only one of the congregations who received money had success. If we do this again, there would need to be oversight to see that it needs to be tied to mission.
3. Congregational Vitalization is already giving grants, and they get reports back on the use of the money they grant. They can also use the success stories as a “laboratory” to breed future success stories.
4. Congregational Vitalization will be tasked with developing the application process and distributing details with all congregations.
5. There are 12 resolutions at this point. Those that are lower in priority will be at the end of the agenda. We will entertain a motion to extend the time if needed.
6. A couple of the resolutions will be introduced at the beginning of convention and convention will decide if we will entertain them. All resolutions that we know of will be distributed to convocations.
7. Canon 32 Change – Charles brought new versions for everyone. This resolution comes from the Church Support Team. Cliff moved that Bob Hall be authorized to bring this resolution before convention on behalf of the Board and Council. Bob seconded. The motion passed with no abstentions or dissent.
8. Resolution on Amendment to articles III, V and XI Moved by Charles that Bob Hall present it to the Convention on behalf of the Board and Council seconded by John Miller. The motion passed with no abstentions or dissent.

1. Committee Reports

1. Board of Directors:
2. Apportionment – No report
3. Congregational Audit – No report
4. Properties – No report

1. Joint:
2. Church Support Team – No Report
3. Audit – No Report
4. Congregational Vitalization- One correction – the Diocese of California did not attend the joint meeting they will attend the next meeting.
5. Employee Practices & Benefits- Congregational Range Revisions may not be appropriately the work of this committee. The new board of trustees will be charged with exploring this work.
6. Disaster Planning- Margret is working with people in the Office of the Bishop.

1. Special Work Groups:
2. Church Legacy– They made a presentation in March. They reconsidered some things. They wished further clarification, but the June meeting was so busy. The group has not been reconvened. Our buyer in Rohnert Park has withdrawn as of last week. There is no urgency in making those decisions, so the Bishop is giving that project to the next Board.
3. Restructure Implementation–The Restructure committee is proposing 5 major committees: communication, youth and young adult, congregational development, finance and development, and deaneries. Each of these committees with report to the board of trustees of which the Bishop will be the chair. Each committee will also have sub-committees.
4. Funding for each of these groups has a line item in the 2013 budget.
5. There will be 15 members of the board. Each might be on one of the 5 committees?
6. The Bishop appoints the head of committees and gives them the freedom to recruit committee members as they see appropriate.

1. EFNC Report – David Bundesen submitted a written report. Cliff and the Bishop put in a plug for the life planning workshops that the Foundation puts on.

1. Closing Prayer – The Bishop closed us with prayer and we adjourned at 2:25 pm.

1. New Board Dec. 8th and the Planning Retreat January 4 -6 Deans are invited to the retreat again this year.

“Making Disciples, Raising Up Saints & Transforming Communities for Christ”