State Employees Association of North Carolina – District 3
Serving the interests of Avery, Mitchell, and Watauga Counties
DISTRICT #3 EXECUTIVE COMMITTEE MEETING
6:00 pm March 1, 2016
Sagebrush Steakhouse, Boone
The meeting was called to order at 6:05 p.m. by Chairman Pat Reighard
Members in attendance were: Libby Clawson, Doris Greer, Wayne Holliday, Teresa Johnson, Pat Reighard, Rhonda Robinson, Janice Smith, Mike Waters, Jonathan Huskins, and MAC Johnny Davison. Excused: Teresa Canton, Anne Castro, Kathy Howell
Minutes from the December 3rd meeting were reviewed and approved as amended.
No Treasurer Report: District #3 has a balance of $20,000 in the budget.
Chairperson’s Report: Pat Reighard thanked the members of District #3 for the Gift Certificate to Outback for his Holiday gift.
Signs for the endorsed candidates are here – please take some and place around the Counties.
Pat Reighard presented a summary of the BOG Meeting February 26-27
President’s Report
President Hailey & Executive Director Leonard will be meeting with Neil Alexander and others from the Governor’s office
Charles Johnson did an excellent job representing SEANC at the Board of Trustees of the State Health Plan meeting
EMPAC meeting that determined endorsements went well
Regional reps should contact districts at least every two weeks
President Hailey having back surgery March 23; not going to run for a second term
Points of Personal Privilege
Stanley Drury announced candidacy for SEANC President
Gloria Evans announced candidacy for SEANC 1st Vice President
Darius McLaurin announced candidacy for SEANC 2nd Vice President
Tony Smith gave President SEIU scholarship material
Doug Skinner: Mark Dearmon’s mother died last week
NCAE worked with SEANC on the proposed SHP changes
General Counsel’s Update on Cases (Hardy Lewis, SEANC General Counsel)
Defamation/Slander lawsuit brought by B. J. Jones filed in Sep./Oct. 2015, alleged that
Charles Johnson said three things at the 2014 convention that were slanderous. Their
lawyers dismissed the case.
New Defamation/Slander lawsuit was filed by Jones with six SEANC individuals named.
Alleges that in Feb. of 2015 some SEANC individuals make slanderous statements about
Jones. Lewis doesn’t think complaint has any merit.
Amicus brief was filed by SEANC in teacher’s tenure case, which was won by state employees. That case was a lot like state employees’ retirement system. Governor McCrory wants to expand number of people who are at-will employees, and lawsuit has been filed to prevent that. SEANC is helping with that by filing a brief.
Benny Brigman regarding process of two districts merging: Membership has dropped
drastically. Will propose at annual meeting that district merge with District 66.
Tom Campbell on Connect NC Bond Referendum [handout]—bond vote is March 15, 2016
Encouraged SEANC to work to pass the bond referendum
Public infrastructure needs cannot be met with pay-as-you-go basis
State is growing to 12 million people by 2030
Little known high need is water/sewer loans and grants
Private sector has pledged another $1 billion matching funds
Troubling: poll says only 43% favor the bonds; need ~$3 million for campaign but only have half that; far left and far right firmly against it
Debt service will actually be lower later than it is right now
Marilyn Jean Martin announced her candidacy for SEANC Treasurer
Executive Director’s Report—Mitch Leonard [handout]
Bank draft now available
Going to meet with Governor’s office re rescinding Executive Order 45 and signing
Executive Order 84
SEANC staff has been realigned and there are new hires
Two TV commercials have been created by NC Spin and will be run on that program
beginning March 18
SEANC will offer leadership training, perhaps this fall; secretary/treasurer training will
be held prior to convention; Roy McGalliard will be offering a class in parliamentary
procedure
Doug __?_ SEIU rep
SEANC & SEIU have gotten closer together since Cope gone
SEANC’s leadership has been attending SEIU meetings, unlike before; communications between the two organizations have improved
Many SEIU projects going on in NC
Ron Elmer--EMPAC-endorsed candidate for State Treasurer
Single biggest issue is state pension fund. He started working with it in 1999. Financial
statements haven’t been released since 2001 (Harlan Boyles). Over $500 million spent
on financial managers and another $500 million on transactions fees. Expenses have
gone up 1000% in 10 years; big difference is alternative contracts, which are secret
($400 million worth). Giant fund like this should just invest in index funds. Over last 15
years, 5.5% return, which is about 1% below index funds—1% of over $80 billion is a lot
of money. Losing about $18 billion over last 15 years. His plan, indexing, has been
analyzed by several independent authorities; all agree that plan will save $750 million to
over $2 billion. Only change expenses of the portfolio, not its structure.
Has experience managing large funds. Worked for First Citizens Bank.
Will only need 5-6 people to handle the stock side under his plan—currently have 250
stock managers; have 5 people running bond side now, very successfully.
Wants to get rid of sole trusteeship and go to a board structure. Lock it down so it can’t
be changed in the future.
Wants to bring the money in house and manage it as an index fund.
No more proprietary contracts; therefore, no more “Pay to Play.”
15 years ago fund was 13% overfunded (113%), now is 5% underfunded (95%).
Ethics Policy—Ardis Watkins
MOTION made and PASSED to adopt the text of the “SEIU Policies on Ethics and
Standards” as the “SEANC/SEIU 2008 Code of Ethical Practices”
Annual Meetings/2016 Convention (Sep. 7-10, includes Wednesday)—Alicia Miller
Theme: “Turn the Page”
Send in District Annual info by end of March
Stanley Gales re South Carolina flood relief efforts in Dunbar--Dr. Mary Rice-Crenshaw presented.
Faculty Forward—Zach Robinson, math professor at East Carolina University
An effort of SEIU to organize faculty across the country to tackle problems related to
campus issues (adjunct faculty, student debt, graduation rates, etc.)
Future Meetings: BOG May 13-14; Exec. Cmte 6:30 Wed. April 13 & Th. May 12
Committee Reports
EMPAC—Tony Smith & Mark Dearmon
o Reviewed events of the last couple of years that affected state employees
o Rather than complain, we choose to fight
o Going to build on our successes
Grow membership
Increase EMPAC contributions
Listen to members we represent
Educate members & get them involved
o Reviewed State Health Plan success
o Targeted endorsements in 41 primaries since those will mostly determine the
election winner
o Ron Elmer endorsed for State Treasurer
o Critical that Nelson Dollar gets our support—he has been SEANC’s best friend in
the House
o Support all endorsed candidates
Awards Committee—Pam Hailey [handouts]
Audit Committee—Keith Renner
o Started auditing individual districts
Bylaws Committee—Jimmy Davis
Remember that Bylaws proposals must be made at district annual meetings
Insurance Board of Trustees—Janice Smith
o Listed all of the committee members
o Boston Mutual rates will remain the same for 2016-2017
o RFPs sent out for dental insurance
o Reviewing marketing strategies with staff for SEANC insurance products
Member Discount—Martha Fowler
o Member Discount Guidelines have been updated
Will accept businesses that will not be able to offer a 10% discount
o 3,331 businesses in directory as of 1/1/16
o 21 new businesses added since 10/1/15
o Contest Feb. 26 - May 14 [handout]
Growth/Expansion Committee—Gloria Upperman
Membership Committee—Bill Spade
o SEANC opens full membership to local government employees [handout]
o Procedure for deleting members
o Increasing incentive for recruiting members to $4; Win an iPad Mini challenge
Planning Committee—no report
Policy Platform Committee—Jim Pressley
2015-16 Top Ten Legislative Priorities [handout]
o Moved to determine Top Ten online at convention—MOTION PASSED
Retiree Council—Spillman Grice
Lake” lawsuit: when hired, was promised 80/20 plan
Scholarship Foundation—Mike Bell
o Future meetings: May 12, July 14, 10:00 AM; Sep. 9 in afternoon
o Bowl-a-thon Sat. May 14 at Buffaloe Lanes North Family Bowling Center
o Possibility: Specialized NC License Plate highlighting Scholarship Foundation
o Judging applications: May 24-26 at SEANC HQ
Youth Council—no report
Affiliation to Evaluate SEANC/SEIU Affiliation—Pat Reighard
Categories of study: Financial; Political; Ideology, Values, & Principles;
Communication; Culture; Retiree
o Completing data being gathered from SEANC, including online surveys; will go to
Washington, DC, to gather data from SEIU
Committee to Revise Operations Manual—Marilyn Jean Martin
o Progress is being made; many things very outdated
New Business:
Motions -
Darius McLaurin—Executive Committee moved that SEANC move oversight of the CFO to the Board of Governors. MOTION PASSED
Doug Skinner moved that for any called meeting for which mandatory presence is
required, expenses incurred should be paid for by the called party. MOTION FAILED
Committee Reports
§ Auditing - Rhonda Robinson – No report
§ Awards – Reta Greene – No report
§ Bylaws – Wayne Holliday – Changes to ByLaws being reviewed and will be sending out an email to members.
§ Communications - Pat Reighard will be compiling a newsletter and will be sending out an email with the deadline submission date.
§ Community Service - Janice Smith reminded the members that the next community service project is for the Humane Society and they have until the next meeting to collect donations.
§ EMPAC - Kathy Howell – No report
§ Fundraising - Teresa Johnson reported that everything is on track with the brochures etc. She will email the members the brochure. Talk up and get hole sponsors, door prizes, she will send out last years list so the members can contact the merchants.
§ Insurance - Janice Smith reported that the RFPs for Dental Insurance.have been received and a recommendation will be forthcoming after the presentations on March 17th.
§ Member Discount - Bob Gibbard – No report.
§ Member Strength – Mike Waters – No report
§ Membership – Janice Smith reported that she will be stopping by the Admin offices on the ASU campus to distribute materials, she will coordinate with Johnny. We still have representation at the New Employee Orientation at ASU, but we need to help Bob Gibbard with the meetings since there are now two a month..
§ Nominating – Reta Greene – No report
§ Policy Platform - Anne Castro – No report
§ Retiree – No report
§ Scholarship – Wayne Holliday – Already received one application, deadline is April 15th
§ Web Master - Mike Waters – will update the web site with the changed meeting date.
§ Youth Council – vacant position
Member Action Coordinator Report – Johnny Davison reported that his title has changed and he is now a Member Relations Representative for the Member Relations Department..
Johnny will be attending Mountainview Correctional Facility roll call with Cliff Johnson (District #2) and will be in Avery & Mitchell Counties for drop by visits.
Johnny will be recruiting at the Newland Court House (Juvenile Justice Dept) on Thursday at 9:30 a.m. If you are in the area and would like to help you are welcome.
Unfinished Business – Dr. Pat sent a letter to Chancellor Everts (ASU) and has yet to receive a response in regards to obtaining a letter of support.
Announcements
Review – NEXT MEETING DATE WAS CHANGED FROM MARCH 29 TO APRIL
5th (Sagebrush Restaurant in Boone at 6 pm)
Adjournment - was at 7:30 p.m.