Legal Aid of North Carolina

Site/Location:  Renaissance Asheville Hotel, Asheville, NC

Call to Order and Welcome

Pender McElroy, Chair of the Board of Directors, called the meeting to order at 9:05 a.m. and welcomed all in attendance.

Members Present:

Leo L. Allison	Hada V. Haulsee	Rhonda Shepherd
Leto Copeley	Allen Johnson	Laura Shofner
Burton Craige	Scott Lewis	Bonnie Tatum
David Daggett	Jim Maxwell	Frank Queen
Sarah Davis	Pender McElroy	John H. Vernon, III
Willie Dawson	Pearl Nealey	Charles "CR" Ward
Mary Flowers	Robert Riddle	Willis Williams

Members Absent With Prior Notification:

Reid "Cal" Adams	Allyson Duncan	Ray Owens
Glenn Barfield	Richard E. Fay
Susan Cole	L. Lynnette Fuller-Andrews

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

Other Staff Members:
Richard Klein, Senior Managing Attorney, Wilmington Office
Millie Rogers, Administrative Assistant, Pembroke Office
Angie Dorsey, Senior Managing Attorney, Asheville/Boone Office
Barbara Degen, Senior Managing Attorney, Morganton Office/ Regional Manager, Western Region
Andrew Cogdell, Senior Managing Attorney, Morganton Office

Affiliated Attendees:
Charlotte Blake, former Senior Managing Attorney of the Boone Office
Michelle Cofield, North Carolina Bar Association
Shirley Dawson, wife of Willie Dawson, LANC Board member
Evelyn Pursley, Executive Director of IOLTA
Sorien Schmidt, NC Justice and Community Development Center
Delsie Williams, wife of Willis Williams, LANC Board member

Approval of Minutes

Chair McElroy asked Board members to review for approval the minutes of the February 14, 2003 meeting. Upon a motion made and seconded, it was UNANIMOUSLY RESOLVED by the Board to approve the minutes with three changes acknowledged for correction on page 5 of the minutes. The first correction is under the heading of Amendments to the Bylaws. The designation of "501(3)c" should read "501(c)3. In the second line, the letters in IOLTA were transposed. The last correction is to add the word motion in the last paragraph in that heading in the last sentence to read "Upon motion duly made and seconded, and it was UNANIMOUSLY RESOLVED to adopt the bylaw change as proposed".

Chair’s Report

Chair McElroy gave the Chair’s Report. He reported that Pisgah Legal Services and Legal Aid of North Carolina continue to work towards an amicable agreement regarding the Asheville property, although very little progress has been made. Mr. John Erlenborn, President of LSC, has rejected a proposal that the parties submitted to resolve the property dispute. The parties have requested a meeting in Washington to seek an explanation for the rejection of the proposal and to discuss a workable solution for LANC and Pisgah.

Chair McElroy reported that the state of the organization is "excellent" after its first year of inception. He further stated that George Hausen’s leadership and the LANC staff have made this new entity an effective statewide organization. Also, he noted that the Board has made its contribution by working effectively through its committee structure.

President’s Report

George Hausen gave the President’s Report. Mr. Hausen reported that there has been significant progress made regarding the equity swap property issue. He further reported that appropriate documents evidencing the transfer of property to Legal Aid of North Carolina have been recorded. There are six properties transferred to LANC and four properties that will not transfer to LANC. The four properties that will remain outside of LANC are: Fayetteville, Wilson, Morganton and Sylva.

Mr. Hausen reported that LANC submitted a new grant application to LSC that included a narrative listing three of LANC’s most significant accomplishments: Villalobos et al. v. North Carolina Growers Association et al.; Mohr v. Mohr; and Berry et al v. Town of Tarboro.

Mr. Hausen reported that LSC forwarded a letter to LANC addressing complaints made by a former client, Michael Poole, who had appeared previously at the February Board meeting. A copy of those findings was included in the June 27, 2003 Board book and can be found under the President’s Report on page 31. LSC found no problems in LANC’s handling of Mr. Poole’s case.

Mr. Hausen further reported that LSC had received an anonymous complaint against Advocates for Children Services and LANC. LANC sent a letter responding to the complaint. LSC has notified LANC that it found that ACS and LANC had not violated LSC regulations in handling a case on behalf of a child.

Mr. Hausen recognized Barbara Degen to give a report on the first comprehensive statewide Client Needs Assessment study. She explained that the needs assessment was developed to determine the legal needs of North Carolina's low-income population. This study was a joint effort by LSC funded and non-LSC funded legal services providers as well as the North Carolina Clients Council, all of who are members of the NC Planning Council. LANC staff contributed significantly to this important study. Ms. Degen reported that the Planning Council is currently developing a more extensive, detailed plan to address additional needs of the low income community statewide with limited resources. This Needs Assessment can be found on the Legal Aid website.

Mr. Hausen recognized Andrew Cogdell, the recipient of the Attorney of the Year Award. He further announced that Glenn Barfield received the Pro Bono of the Year Award. The North Carolina Bar Association recently presented these two awards at its annual conference. Mr. Hausen further noted that Mary Lee Hall was the 4^th recipient of the Thurgood Marshall Award presented by the NC Academy of Trial Lawyers at its annual convention.

Resolution - Charlotte Blake

Chair McElroy recognized Charlotte Blake, who recently resigned her position as Senior Managing Attorney of the LANC Boone office. Chair McElroy stated that Ms. Blake has accomplished many things in her career as a legal services attorney and in the legal profession. He further expressed that Ms. Blake is an exemplary model for all legal services attorneys. Ms. Blake will continue her career in private practice. Chair McElroy directed the Board’s attention to a Resolution regarding Charlotte Gail Blake found on page 43 in the Board book. Upon motion duly made and seconded, it was UNANIMOUSLY RESOLVED to adopt the resolution as presented. A copy of the adopted resolution is attached to these minutes.

Local Office Reports

Chair McElroy recognized Barbara Degen, Senior Managing Attorney in the Morganton office and Regional Manager for the Western Region, to give a regional report. She reported that the western region covers 33 counties with seven core offices. The western region has a diverse service area and is large, geographically. Ms. Degen further reported that a tentative plan is being considered to alter the western region boundary lines beginning in 2004, which will enable better representation for clients in the western region.

Angie Dorsey, the Senior Managing Attorney for the Asheville office and the interim Senior Managing Attorney for the Boone office, reported on the work in the Asheville and Boone offices. She reported on a local project in Asheville, a pro se divorce clinic that has been in operation for approximately one year. Ms. Dorsey reported that the clinic is a huge success. The clinic consists of classes taught by an attorney and a paralegal team. The participants are taught the basics of divorce law and how to complete pro se divorce forms. The completed forms are then reviewed by the attorney/paralegal team prior to being filed with the court. Groups of the clinic clients are scheduled for their divorce hearings on the same day and an attorney is there to assist the client if problems arise at the hearing. Judges are very pleased with the clinic and how the clients are so well prepared.

Ms. Dorsey further reported on the Mountain Domestic Violence Initiative, which is funded by VOCA and VAWA grants. Blan Minton, an attorney in the Asheville office, is the staff attorney working on this project and he covers counties traditionally served from both the Boone and Asheville offices.

Ms. Dorsey also reported that she has been working with the Boone office following the resignation of Charlotte Blake. She reported that the Boone service area is a large area and it is a hard area to serve, geographically. She further stated that the Boone and Asheville offices have combined their services to cover the needs of clients in both offices with a streamlined intake process so that staff can effectively serve both offices and their service areas. There are currently two staff positions available. One position has been filled and a second offer has been extended.

George Hausen recognized the determination and outstanding work by Angie Dorsey and her staffs in both the Asheville and Boone offices and Barbara Degen for her work in the western region.

Chair McElroy added that the Asheville LANC office receives limited support from the local bar but is hopeful that relationships would improve in the future. He commended both Ms. Degen and Ms. Dorsey for the service they provide in the western region.

Clients Council Report

Mr. Allen Johnson was recognized to give the Clients Council Report. Mr. Johnson reported that the Clients Council hired a full-time statewide coordinator, Mary Hedgepeth. The Clients Council held a two-day quarterly meeting in Morganton, and reported that Barbara Degen addressed the Clients Council about possible projects and ideas on developing projects.

The work of the Bylaws Committee, chaired by Leo Allison, completed its work and bylaws are now in place. The Nominating Committee, chaired by Willis Williams, reappointed all existing members to serve a second term on the Board, effective July 1, 2003.

Mr. Johnson reported that a committee has been formulated to address a process to be used in the selection of members to serve on the Clients Council Board of Directors. These selected members will attend quarterly meetings, and will be composed of 17 members, one from each Legal Aid field office.

Mr. Johnson further reported that the Client Council is currently looking for office space to house their coordinator and to run the business of the Clients Council.

Finance Committee Report

Jim Maxwell, Chair of the Finance Committee, gave the Finance Committee Report. He reported that LANC had recently completed its yearly audit and LANC finances are in good standing. There was one compliance exception noted and steps have been taken to correct this matter.

Mr. Maxwell reported on the budget and directed the Board’s attention to page 48 in the Board book. He reported on line items listed in the budget, stating that the overall budget projections are on target, as of this date.

Mr. Maxwell reported that over the last three years and during the consolidation, many differences have been addressed in order to bring all LANC programs into equal and consistent standing. There still remain some salary discrepancies in the various LANC offices. The goal is to have all offices pay comparable staff an equal sum for doing equal work. The first step to correct this matter is to adjust the salary scale as proposed on page 54 of the Board book. Also, each employee will receive a one-time 3% cost of living increase under this proposal. The finance committee recommends that the salary plan and COLA increase be approved.

Mr. Maxwell recognized Chris Marks who thanked the accounting staff for its outstanding work. He especially thanked Bernetta Johnsson, Finance Director, for her dedicated and hard work undertaking the day-to-day financial operations of the organization.

Mr. Maxwell directed the Board’s attention to page 55 as he reported on the health insurance claims. He reported that as of this date the self-funded insurance claims continue to fall below the budgeted allocations, which will result in a source of income for salary increases and funds to provide legal services to clients.

Mr. Maxwell reported to the Board that LANC no longer contributes to the Retirement Fund for employees who are not fully vested. As of this date, there is a profit of $250,000.

Chair McElroy asked for approval of the audit and finance report as presented by Mr. Maxwell. Upon a motion made, it was UNANIMOUSLY RESOLVED by the Board to approve the audit and finance report as prepared and presented.

"Working Hard Is Still Not Enough" Report

Sorien Schmidt of the North Carolina Justice and Community Development Center was recognized to give a report to the Board about a "living wage" in North Carolina and poverty. She is the author of "Working Hard Is Still Not Enough," a publication that examines whether wage earners in the state can afford to live here. Ms. Schmidt stated that a report was completed in May 2003 that addressed the decline of real wages, the inadequacy and out-of-date minimum hourly wage, the federal poverty level and the effects it has on poverty in the state of North Carolina. According to the report, approximately 60% of families with children do not earn a living wage to pay for the basic necessities of food, rent and clothing. This report calls attention to the working poor, and that the face of poverty in NC is not limited to those who are not working.

Personnel Committee Report

George Hausen gave the Personnel Committee Report. He reported that the approved personnel policies can now be found on the Legal Aid website. Mr. Hausen also reported that LANC is on target to save money on the health insurance plan. He further reported that Ceridian, the current Third Party Administrator of LANC Retirement Plan, has suggested that bonuses should be excluded as compensation under the plan. Mr. Hausen asked the Board to adopt the amendment to the retirement plan. Upon a motion made and duly seconded, it was UNANIMOUSLY RESOLVED by the Board to amend the retirement plan as recommended. A copy of the approved amendment is attached to these minutes.

Mr. Hausen reported that at the last Board meeting, the Board discussed Ceridian’s services as the Third Party Administrator (TPA) for the Retirement Plan. The Board agreed to explore the possibility of changing the TPA for the Retirement plan. The Retirement Committee met and has recommended a new TPA. However, Mr. Hausen explained that there are some costs involved if a new TPA is retained. He further stated that Ceridian has agreed to present a written proposal with new conditions and fees as the TPA. The Retirement Committee will review the proposal and report to the Board at the next meeting.

Operations Committee Report

Leto Copeley, Chair of the Operations Committee, gave the report of the Operations Committee. She reported that there were two issues, which will require approval by the Board. As requested by the Board at it’s February meeting, the Operations Committee developed Guidelines for Local Advisory Councils. The guidelines included membership requirements, the role and responsibilities, and the constitution. The guidelines are attached to these minutes and the Committee recommends approval.

Chair McElroy asked that the Board approve the Operations Committee report recommending approval of the guidelines as presented. Upon further discussion, it was agreed that the Client Affairs Committee would review the guidelines and recommend any changes to the Board at the next meeting. Upon a motion made, it was UNANIMOUSLY RESOLVED by the Board to accept the recommendation and approve the Guidelines for Local Advisory Councils subject to review by the Client Affairs Committee.

Ms. Copeley reported that the Operations Committee also has developed a policy regarding eligibility and the 2003 LSC Eligibility Guidelines. Ms. Copeley stated that the Operations Committee’s recommends adoption of the Eligibility Policy and the 2003 LSC Eligibility Guidelines. Upon a motion made, it was UNANIMOUSLY RESOLVED by the Board to accept the recommendation and adopt the Eligibility Policy and Guidelines as presented. The policy and guidelines are attached to these minutes.

Strategic Planning Committee Report

George Hausen gave the Strategic Planning Committee Report. He reported that the committee continues to discuss various fundraising efforts to secure additional funds to support the delivery of legal services in North Carolina. Mr. Hausen further reported that a $5,000 grant was awarded for a consultant to assess fundraising capabilities, and that LANC will work in conjunction with the Planning Council to retain a consultant. A report regarding these efforts will be reported to the Board at the September meeting.

Grievance Committee Report

Willie Dawson, Chair of the Grievance Committee, gave the Grievance Committee report. Mr. Dawson reported that Mr. Charles Patterson had made a grievance against the Greensboro office and that George Hausen had rendered a decision about the grievance. Mr. Patterson then appealed that decision to the Grievance Committee. The Grievance Committee met and discussed the appeal. Following discussion and review by the Grievance Committee, it found that the appeal was without merit and that no further action is necessary.

Client Affairs Committee Report

Pearl Nealey gave the Client Affairs Committee report. She reported that the Clients Council would like to be more involved in community education outreach and has undertaken the responsibility to work with churches across the state to find out client needs in their localities.

New Business

Chair McElroy asked the Board to adopt a resolution to authorize the issuance of a BB&T credit card to LANC to be used by George Hausen or Chris Marks. Upon a motion made, it was UNANIMOUSLY RESOLVED to adopt the BB&T resolution authorizing the issuance of a credit card as presented.

Nominating Committee Report

David Daggett was recognized to give the Nominating Committee report. Mr. Daggett reported that the Nominating Committee had met and recommends the following slate of officers for the upcoming year: Chair, Jim Maxwell of Durham; Vice Chair, Leo Allison of Efland; Treasurer, Cal Adams of Winston-Salem; and Secretary, Leto Copeley of Raleigh. The committee further recommends that the two at-large members to serve on the LANC Executive Committee for 2003-2004 are Lynnette Fuller-Andrews of Winston-Salem and C.R. Ward of Waccamaw. Each member on the slate has been contacted and has agreed to serve in the capacity stated.

Mr. Daggett further stated that the committee recommends the re-nominations of the following current Board members for a three-year term. Those nominations are: John H. Vernon, III of the North Carolina State Bar; Cal Adams of the North Carolina Association of Defense Attorneys; David Daggett of the 21^st Judicial District Bar; Sarah Davis, a statewide client representative; Susan Cole, the Triad Region Client Representative; and C.R. Ward, the Southeast Region Client Representative.

Upon a motion made, it was UNANIMOUSLY RESOLVED by the Board to accept the slate of nominations as recommended by the Nominating Committee. A copy of the written report submitted by Mr. Daggett is attached to these minutes.

Transfer of the Gavel

Before passing the gavel to the new Board Chair, Chair McElroy thanked the Board for their outstanding service during the first year of service as a new entity. He praised the dedication and hard work of the members of the Board. Chair McElroy further thanked and recognized individual administrative staff for their support and for an outstanding job. He further recognized the Board members who had served on the Transition Board for 15 months to create a consolidated entity. He was very appreciative of their efforts. He recognized Evelyn Pursley, Executive Director of IOLTA, and Michelle Cofield, Director of Public Service Activities of the NC Bar Association, for their support and assistance.

Chair McElroy passed the gavel to the new Board Chair, James B. Maxwell.

Chair Maxwell accepted the gavel and commented on the outstanding dedication and effective leadership of former Board Chair, Pender McElroy. He praised Mr. McElroy for taking on the challenge of bringing together a consolidated entity. He noted that this effort took patience and a special demeanor in accepting and making this challenge a reality.

George Hausen also stated that the consolidated programs could not have become LANC without the leadership of Pender McElroy.

Adjournment

Chair Jim Maxwell, adjourned the meeting at 2:53 p.m.

__________________________________
Leto Copeley, Secretary