Meeting Minutes - LANC Board of Directors
February 14, 2003

Site/Location: Hampton Inn, Goldsboro, North Carolina

Call to Order and Welcome

Pender McElroy, Chairman of the Board of Directors, called the meeting to order at 10:04 a.m. and welcomed all in attendance. He asked those persons present to introduce themselves by stating his or her name and affiliation with Legal Aid of North Carolina.

Members Present:

Leo L. Allison

Allyson Duncan

Rhonda Shepherd

Glenn A. Barfield

Mary Flowers

Charles “CR” Ward

Susan Cole

Allen Johnson

Willis Williams

Leto Copeley

Jim Maxwell

Bonnie Tatum

Burton Craige

Pender McElroy

Sarah Davis

Pearl Nealey

Members Absent With Prior Notification:

Reid “Cal” Adams

Laura Shofner

David D. Daggett

John H. Vernon, III

Willie Dawson

Richard E. Fay

L. Lynnette Fuller-Andrews

Hada V. Haulsee

Frank Queen Scott Lewis
Robert Riddle Ray Owens

Administrative Office Staff:
George R. Hausen, Jr., President
Dock Kornegay, Director, Public Relations & Development
Chris Marks, Assistant Director of Administration and Finance
Celia Pistolis, Assistant Director, Advocacy & Compliance
Tonya Pruitt-Lyons, Administrative Assistant
Melinda Carver Smith, Human Resource Manager
Paula Spence, Office Manager

Other LANC Staff Members:
Rogers Blount, Domestic Paralegal/Goldsboro Office
Beverly Eason, PAI Coordinator, Wilson Office
Gay Joyner, Paralegal, Wilson Office
Kathy Joyner, Executive Secretary/CRP, Wilson Office
Hazel Mack-Hilliard, Senior Managing Attorney, Wilson Office
John Keller, Staff Attorney, Wilson Office
Richard Klein, Senior Managing Attorney, Wilmington Office
Millie Rogers, Administrative Assistant, Pembroke Office
Jim Wall, Senior Managing Attorney, Wilmington Office

Affiliated Attendees:
Michelle Cofield, NC Bar Association
Mary Hedgepeth, Interim Clients Council Coordinator

Chairman’s Report

Pender McElroy gave the Chairman’s Report. He reported that Pisgah Legal Services and Legal Aid of North Carolina continue to work towards an amicable agreement regarding the property settlement dispute.

Mr. McElroy asked board members to send their nominations for upcoming officers to Rick Fay, Chair of the Nominating and Board Development Committee.

Local Program Report

Mr. McElroy recognized Hazel Mack-Hilliard to give the local program report. Ms. Mack-Hilliard welcomed all those present to the Goldsboro/Wilson service area. She reported on the settlement of the case of Berry, et al, v. Tarboro. This case directly resulted from the Hurricane Floyd disaster in eastern North Carolina. Tarboro has passed a zoning ordinance restricting multi-family housing after the disaster that adversely impacted the African American community. A collaborative team of attorneys, including attorneys from the Justice Center, Land Loss and the private bar represented the plaintiffs. The team reached a settlement where the defendants agreed to repeal the discriminatory ordinance and to pay the plaintiffs money damages. She thanked the support of Executive Director George Hausen in this case. She praised the team of Legal Aid attorneys and her staff for their dedication and hard work on this case.

Finally, she noted that even though this case was very involved and took a great deal of time to litigate, the Wilson office had represented more clients than last year while still doing this litigation. She further reported that the core of legal work is consumer, education, employment, housing and public benefits) handled by a staff of five attorneys and three paralegals. A copy of the local office written report is attached to these minutes.

Mr. McElroy extended the Board’s congratulations and appreciation on the very favorable settlement and the fine work being done for clients by Legal Aid lawyers and staff in this case and many others.

Approval of Minutes

Mr. McElroy asked board members to review the minutes of the December 13, 2002 board meeting. Upon motion duly made and seconded, it was UNANIMOUSLY RESOLVED to approve these minutes.

Approval of the Minutes of the Executive Session
of December 13, 2002

Mr. McElroy asked board members to approve the minutes of the Executive Session of the board on December 13, 2002. Upon motion duly made and seconded, it was UNANIMOUSLY RESOLVED to approve these minutes.

President’s Report

George Hausen presented the President’s Report. He directed the board’s attention to pages 34 and 35 in the board book, to review a map of the regional structure and an inventory of the entire staff of Legal Aid of North Carolina. He explained that the inventory is a tool to be used to organize the administrative and legal work provided by Legal Aid of North Carolina. Mr. Hausen further directed the Board’s attention to a statistical handout used to track all accepted cases and the level of service provided in each case. He asked the board to review a handout of the poverty population by county which will be useful in the budget process for the upcoming year. Also, this information will be helpful in allocating resources and evaluating the effectiveness and quality of legal services delivered to clients.

Mr. Hausen reported that Legal Services Corporation proposed funding for 2003 and 2004 fiscal year indicates no increase in revenue for Legal Aid of North Carolina.

Mr. Hausen reported that the Smithfield branch of our Raleigh office owned by LSNC since 1978, located at 216 East Church Street, Smithfield, North Carolina, was condemned and forced to close. He further reported that the Smithfield office and staff had been relocated, renting approximately 2,500 space feet an annual rent of $19,200. The Smithfield property appraised at $140,000 was listed for sale and is being sold “as is” to an individual who will raze the existing contaminated structure in order build a new multi-office complex. An offer has been made to LANC to purchase an office condominium in this complex. Mr. Hausen stated that there is no comparable office space available to purchase in downtown Smithfield and the anticipated mortgage payments would be less than the current rental payments.

In the upcoming year, Hausen anticipates that the Raleigh office will move into the Administrative Office building space currently housing Prisoner Legal Services. Recommendations have been made in the past that the Administrative Office should be housed in the same location as a field office. LANC will negotiate with Prisoners for an arrangement that would allow that organization to stay through the end of the year with free rent costing $20,000, which is one-third of the rent for the property.  Prisoners is claiming an equity interest in the property but said there is no signed document evidencing that interest. Mr. Hausen asked the board to give consideration regarding these two real estate matters. Chairman McElroy referred this matter to the Finance Committee and asked that they review and report their decision at the June Board meeting.

Mr. Hausen reported that each office has a local advisory council and the local councils currently do not have specific responsibilities. Chairman McElroy referred the task of defining these councils’ roles and responsibilities to the Operations Committee.

Mr. Hausen reported that Charlotte Blake, Director of the Boone office, has resigned due to personal reasons. An interim plan is in place to continue the delivery of services provided by that office to its service area.

Mr. Hausen also reported that regional managers and administrative office staff are studying ways to improve the delivery of services in the central part of the state.

Mr. Hausen reported that a complaint has been reported to the Legal Services Corporation (LSC) against Advocacy of Children’s Services. A response to the complaint will be submitted to LSC regarding this complaint in the next few days.

Mr. Hausen reported that a client in Winston-Salem, Mr. Poole, filed a complaint against the Winston-Salem program with the Legal Services Corporation. A response was sent to LSC and LANC has not heard the outcome. The Administrative Office reviewed the complaint internally and found it to have no merit.

Mr. Hausen reported that Legal Aid of North Carolina has been appointed a new LSC Program Counsel, Cheryl A. Nolan-Zavala.

Mr. Hausen recognized Dock Kornegay to report on the Access to Justice Campaign. Mr. Kornegay reported that the campaign is on track to raise funds keeping in line with the amount of funds raised last year.

Amendments to the Bylaws

Pender McElroy reported that a proposed change to the LANC Bylaws has been recommended to permit the IOLTA Board of Trustees to appoint a representative of IOLTA to the LANC Board who was not then sitting on the IOLTA board. The current Bylaw require the IOLTA Board to appoint “a member of the IOLTA Board of Trustees.” The amended Article II Bylaw would delete the language “a member of the” and replace it with the language “person selected by the” in the LANC Bylaws. Upon motion duly made and seconded, it was UNANIMOUSLY RESOLVED to adopt the bylaw change as proposed.

Chairman McElroy proposed a second change in the Bylaws under Article III. The change would move the annual meeting of the Board of Directors from May to June. The Bylaws provide that officers are elected in June. This change would permit election of officers at a regularly scheduled board meeting. Upon motion duly made and seconded, and it was UNANIMOUSLY RESOLVED to adopt the bylaw change as proposed.

Clients’ Council Update

Allen Johnson was recognized to give the Clients’ Council report. He reported that a Bylaws Committee has been appointed and is chaired by Leo Allison. This committee will develop bylaws for the NC Client’s Council, which has been recently incorporated and is seeking 501(c)3 status. Mr. Johnson further reported that the Search Committee is in the process of reviewing nine resumes and will interview three candidates for the Clients Council Coordinator.

Mr. Johnson reported that the Clients Council will select officers in June for the upcoming year. He stated that Willis Williams will chair the Nominating Committee to oversee this process. The next meeting of the NC Clients Council is June 6, 2003 in Morganton.

Committee Reports:

Nominating Committee:
Chairman McElroy gave the report of the Nominating and Board Development Committee. He reported that the committee continues to work and asked the members of the board to contact the chair of the committee, Rick Fay, with suggestions for persons to serve as officers for the upcoming year.

Finance Committee Report:
Jim Maxwell, Chair of the Finance Committee, reported that the Smithfield branch of the Raleigh office, located at 216 East Church Street, owned by LSNC since 1978 has been condemned as a result of asbestos contamination and the staff has been moved out and relocated. The Smithfield office is currently renting office space. The Smithfield property has been listed for sale since July 2002 for $149,900. A buyer has agreed to purchase this property, raze the existing structure, and build a multi-office complex with the condition of selling Legal Aid new office space. The proposed new Legal Aid office space is 2,500 square feet for the sum of $212,500. The amount of $112,500.00 net would be applied from the sale of the 216 East Church Street property to the purchase price. The sum of $100,000 would be borrowed, refinanced at 4.25%, floating prime, five-year balloon, ten-year payment amortization, with 7% cap, annual principal and interest payments totaling approximately $12,300, $6,900 less than current rent. Upon a motion made it was UNANIMOUSLY RESOLVED by the Board to approve the Smithfield property transaction.

Personnel Committee:
Glenn Barfield reported that the Personnel Committee reviewed and recommended the Board adopt the policies listed on pages 57 through 66 of the board book. Upon a motion made it was UNANIMOUSLY RESOLVED by the Board to accept the proposed policies as recommended. The approved policies are attached to these minutes.

Operations Committee:
Leto Copeley, Chair of the Operations Committee, gave the report of the Operations Committee. She directed the board’s attention to pages 69-78 in the board book to review the proposed Client Grievance Procedure. The Operations Committee recommended that the Board adopt the proposed Client Grievance Procedure as presented. A copy of the approved Client Grievance Procedure is attached to these minutes. The matter was tabled to hear the recommendations of Client Grievance Committee and the Client Affairs Committee.

Strategic Planning Committee:
Glenn Barfield, Chair of the Strategic Planning Committee, reported that the committee met and discussed various fundraising efforts to raise additional funds to support the delivery of legal services in North Carolina. Following discussion, it was recommended by the Strategic Planning Committee that a new standing committee be established to focus on fundraising. The new committee will be known as the Development Committee. Upon a motion duly made, it was UNANIMOUSLY RESOLVED by the Board to accept the recommendation to establish the Development Committee, as a new standing committee of the Legal Aid Board of Directors.

Grievance Committee:
In the absence of Willie Dawson, Chair of the Grievance Committee, staff member, Celia Pistolis, gave the Grievance Committee report. She reported that the committee had met, drafted the client grievance procedure, and would recommend that the Board adopt that procedure.

Client Affairs Committee Report:
Pearl Nealey gave the Client Affairs Committee report. She reported to the Board that the Client Affairs Committee had reviewed the proposed Client Grievance Procedure and like the other two committees would recommend that the Board adopt it.

Ms. Nealey directed the Board’s attention to a handout stating the mission of the Client Affairs Committee. The mission of the Client Affairs Committee is attached to these minutes.

Chairman McElroy asked the board to approve the Client Grievance Procedure recommended by the Operations Committee, the Grievance Committee and the Client Affairs Committee. Upon motion duly made it was UNANIMOUSLY RESOLVED by the Board to approve and adopt proposed Client Grievance Procedure as recommended. The approved Client Grievance Procedure is attached to these minutes.

New Business

Glenn Barfield was recognized and thanked all members for coming to Goldsboro and for the kindness shown towards the new addition in his family.

Mr. Poole, a client from Winston-Salem, was present with an aide. The aide was operating a video camera and tape recorder. He requested permission to address the Board. Chairman McElroy noted that Mr. Poole had filed a complaint with LSC against LANC and that such complaint was being investigated by LSC. Mr. McElroy noted that LANC board meetings are open to the public. He further explained that addressing the board was another matter. Mr. Poole was not on the agenda. Chairman McElroy stated that it would be up to the Board whether to allow Mr. Poole to speak to the board.  A motion was made by Susan Cole to allow Mr. Poole to address the Board. The motion died for lack of a second.

Adjournment

Glenn Barfield made a motion to adjourn the meeting. The motion was seconded. Upon unanimous vote, the meeting was adjourned at 1:22 p.m.

__________________________________
Reid C. Adams, Secretary

 

 

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Legal Aid of North Carolina is a statewide, nonprofit law firm that provides free legal services in civil matters to low-income people in order to ensure equal access to justice and to remove legal barriers to economic opportunity.

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