Meeting Minutes - LANC Board of Directors
December 10, 2004

Site/Location: Wyndham Garden Hotel, 4620 South Miami Boulevard
Durham, NC 27703

Call to Order and Welcome

Leo Allison, Chair of the Board of Directors, called the meeting to order at 10:25 a.m. and welcomed all in attendance.

Members Present:

Reid C. Adams

Mary Flowers

Frank Queen

Leo L. Allison

Hada V. Haulsee

Robert Riddle

Glenn Barfield

Allen Johnson

Rhonda Shepherd

Michael Colombo

Scott Lewis

Saketta Spivey

Leto Copeley

Jim Maxwell

John Vernon

Burton Craige

Pender McElroy

Charles Ward

Sarah Davis

Pearl Nealey

Willis Williams

Willie Dawson

Ray Owens

Members Absent With Prior Notification:

David Daggett

L. Lynnette Fuller-Andrews

Richard Fay

Olga Gomez

Administrative Office Staff:
Arlene Glasco, Benefits Specialist
Ted Fillette, Deputy Director
George R. Hausen, Jr., LANC Executive Director
Dock Kornegay, Director, Public Relations & Communications
Bernetta Johnsson, Finance Director
Chris Marks, Assistant Director of Finance & Administration
Celia Pistolis, Assistant Director of Advocacy & Compliance
Tonya Pruitt-Lyons, Administrative Assistant

LANC Staff Members:
Victor Boone, Senior Managing Attorney, LANC-Raleigh Office, &
Regional Manager, Triangle Region
Mary Hedgepeth, Clients Council Coordinator
Richard Klein, Senior Managing Attorney, LANC-Wilmington, &
Regional Manager Southeast Region
Jim Wall, LANC Wilmington, Senior Managing Attorney

LANC Affiliated Attendees:
Michelle Cofield, North Carolina Bar Association
Sharon Greigg, North Carolina Clients Council
Nellie Kearney, North Carolina Clients Council
Evelyn Pursley, Executive Director, IOLTA

Approval of Minutes

Chairman Allison directed the Board’s attention to the Board of Directors general business meeting minutes of September 17, 2004. On page 4 under the President’s report the minutes reflect that George Hausen stated that the American Civil Liberties Union will present the Steven Edelstein Award to Burton Craige. The change in the minutes should reflect that the ACLU will present Steven Edelstein and Burton Craige with the W.W. Finlater Award. Following review and discussion of the minutes, a motion was made, duly seconded, and UNANIMOUSLY RESOLVED to approve the minutes with the changes noted.

Chairman’s Report

Chairman Allison described the Board Retreat held in September as well-organized and extremely productive. He hoped that some of the suggestions generated at the Retreat would be adopted for use by the organization. Also, he had made a presentation to the NC Bar Association Board of Governors about the state of Legal Aid of North Carolina and asked for its continued support to increase LANC resources. Allison and Allen Johnson, Chair of the LANC Clients Council, had participated on a panel discussion during the NC Pro Bono Coordinator’s meeting held at the NC Bar Center in November. The panel addressed issues related to pro se representation such as the Client’s Council role as well as legal services role in training individuals to represent themselves.

President’s Report

Chairman Allison recognized George Hausen to give the President’s Report. Mr. Hausen directed the Board’s attention to his response to the LSC Program Evaluation, that was included in the Board Notebook. Also, the LSC OIG PAI Audit had been completed and that report was also provided to the Board. Hausen updated the Board that on start-up meetings for the various practice groups. He is continuing to visit various individual offices, meeting with all staff in those offices as well as meeting with the respective Local Advisory Councils.

The Mortgage Foreclosure Project has been refunded by Z Smith Reynolds even without submitting a new grant request. This project has three full time attorneys and Hazel Mack Hilliard is the project manager. The attorneys are scattered throughout the eastern part of the state and represent clients to stop foreclosures as well as act as a resource for less experienced staff attorneys handling such cases. Within the first six months of this project’s existence, more than four million in equity has been saved and the project now has about 90 pending cases involving predatory lending.

IOLTA fully funded the LANC grant request for general services and pro bono services. Hausen recognized Evelyn Pursley, Executive Director of IOLTA and expressed thanks to her and the IOLTA Board for its efforts to provide this much needed funding to LANC.

Hausen reported that LANC staff and Board members raised $1500 towards the burial expenses of Susan Cole. Her family expressed its appreciation to LANC. Hausen ended his report by introducing Arlene Glasco as the benefits specialist for LANC.

Local Program Report

Chairman Allison recognized Victor Boone, Senior Managing Attorney and Regional Manager for the Triangle Region to give the local program and regional report. Mr. Boone reported that staff is representing clients with a myriad of problems including domestic violence, housing and consumer matters. Mr. Boone informed the Board that Kilpatrick Stockton had “loaned” one of its talented associates, Chris Jackson, to the Raleigh Office for six months. Jackson has proven to be an asset, and the Raleigh Office is very appreciative of Kilpatrick Stockton’s generosity. In closing, Mr. Boone indicated that the need for legal services continues to increase and that his small staff cannot possibly represent all those who need representation.

Client’s Council Report

Chairman Allison recognized Allen Johnson to give the Client’s Council report. Mr. Johnson reported that the Client’s Council held their quarterly meeting on December 9th in Durham, and thanked Gina and George for their attendance. The Clients Council is working on developing a Resource Manual as well as recruiting client members on local advisory councils and to have those client members be involved with the Clients Council.

Committee Reports:

Client Affairs Committee:
Chairman Allison recognized Pearl Nealey to give the Client Affairs report. Ms. Nealey reported that the Client Affairs committee met and discussed the issues of the intake procedure being handled by the Boone office. The Board discussed this issue and suggested that Nealey discuss these concerns with the Executive Director.

Nominating Committee/Client Eligibility Ad Hoc Committee:
Chairman Allison recognized Burton Craige and Pender McElroy to give these two reports. Mr. Craige reported that the committee continues to examine its process for nominating client members to the LANC Board. Mr. McElroy also reported on the efforts of the ad-hoc committee whom have been charged with addressing four issues: Client confidentiality, client nominations, client income eligibility and client members and board member relations. This committee will present its recommendations to the Board at its February 2005 meeting.

Finance Committee Report:
Chairman Allison recognized Leto Copeley to give the Finance Committee Report. Ms. Copeley reported that the Finance Committee met and discussed the 2005 budget. IOLTA funding which had been projected as being drastically reduced was awarded to LANC at the same rate as the 2004 grant. IOLTA did provide a $2,000 increase for the Clifton Everett Fellowship so that the fellowship is consistent with the starting salary for a new attorney. The Chair expressed the Board’s appreciation to IOLTA for its generosity in these tight financial times. Following discussion, a motion was made, duly seconded, and UNANIMOUSLY RESOLVED to approve and adopt the 2005 budget.

Personnel Committee Report:
Chairman Allison recognized Scott Lewis to give the report of the Personnel Committee. Mr. Lewis reported that the Personnel committee did meet to discuss the current status of the health benefits. The Health Committee which is comprised of LANC staff on all levels met and discussed the health plan and the increase in health premiums. Because LANC is self-insured, there was an overall savings in health costs that should be used to maintain the current plan. In addition, LANC should become self insured for its dental plan. The Personnel Committee echoed the recommendations of the Health Committee to maintain the current health plan with no change in benefits and to review the plan mid year to determine if any adjustments should be made as well as to self insure the dental plan. Following discussion, a motion was made, duly seconded, and UNANIMOUSLY RESOLVED to adopt the Personnel Committee recommendations for the Health benefits plan.

Operations Committee Report:
Chairman Allison recognized Allen Johnson to give the report of the Operations Committee. Mr. Johnson discussed the Report on Program Integrity, the Priorities and the Asset limits for client eligibility. The Operations Committee recommended that the Priorities as revised be adopted, that the Asset limits for client eligibility be maintained and that the Board Chair certify LANC compliance with Program Integrity as required by LSC Regulation 1610. Following discussion, a motion was made, duly seconded, and UNANIMOUSLY RESOLVED to adopt the Operations Committee's recommendations. NOTE: Click here to view a full list of the Operations Committee's recommendations.

Strategic Planning Committee Report:
Chairman Allison recognized Glenn Barfield, Chair of the Strategic Planning Committee, to give the Strategic Planning Committee Report. Mr. Barfield reported that the Committee had not met and discussed the difficulties of moving the work of this Committee forward without a facilitator. A discussion about the cost of a facilitator and the benefits of using a facilitator followed. This committee will continue to conduct its meetings in person even if that presents difficulties with attendance.

Grievance Committee Report:
Chairman Allison recognized Willie Dawson to give the Grievance Committee report. Mr. Dawson reported that there are no grievances pending.

Resource Development Committee:
Chairman Allison recognized George Hausen to give the Resource Development Committee report in the absence of Rick Fay who has been called into active duty in Iraq. Prior to being called into active duty, Mr. Hausen reported that Mr. Fay has worked extensively on LANC’s behalf with regard to resource development and fundraising. Mr. Frank Queen also commented that the board should recognize the efforts of Mr. Fay and thank him for his service on the LANC board. A motion was made and UNAMIOUSLY APPROVED, that the board present Fay with a Resolution of Appreciation for his service to LANC as well as to the nation. Also, board members were asked to contact Fay via email or through his APO mailing address to express their individual appreciation to him.

Because of Fay’s unexpected absence, Chair Leo Allison, indicated that the Board will need to elect a new secretary and directed the Nominations Committee to address this issue at the next Board meeting.

LSNC ("Legal Services of North Carolina")

Mr. Allison recognized Frank Queen to give an update on the status of LSNC. Mr. Queen reported that while LSNC currently owns four buildings currently being occupied by LANC for the delivery of legal services, the organization has no resources or incoming funds for operation. He also reported that he had met with the NCBA’s Board of Governors to select new board members and to develop new bylaws. Mr. Queen stated that the LSNC board would meet and have a report prepared for the board’s review at its February meeting.

Adjournment

Chairman Allison adjourned the meeting at 2:15 p.m.


__________________________________
Board Officer

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ADDENDUM - OPERATIONS COMMITTEE REPORT (RECOMMENDATIONS)

Operations Committee Report (11/23/04; Allen Johnson, Chair)
The Operations Committee met three times by conference call to discuss policies related to LANC operations as well as to develop 2005 statewide priorities and to review the annual program integrity report.

Program Integrity Report:
The Committee reviewed and discussed the Program Integrity Report as required by the LSC regulations. Copies of the Program integrity and the Certification form to be signed by the Board Chair are attached.

Recommendation: The Committee unanimously recommends that LANC Board direct the Chair to certify that LANC is in compliance with the program integrity requirements.

Document Retention and Destruction Policy:
The Committee reviewed and discussed a Document Retention Policy that will give direction to staff to be consistent with keeping and/or discarding documents.

Recommendation: The Committee unanimously recommends that the LANC Board approve the attached Document Retention and Destruction Policy.

"Safe Harbor" Provision:
The Fair Labor Standards Act and its new regulations related to overtime pay allow employers who mistakenly make improper deductions from an employee's salary a "safe harbor" if the employer has a written policy prohibiting violations of the Act and a mechanism for receiving and responding to employee concerns in that regard.

Recommendation: The Committee unanimously recommends that the LANC Board approve the attached Policy on Improper Salary Deductions.

Employee Complaints about LANC Policies or Practices:
The Committee wants to emphasize that LANC has an open door policy for employees to raise concerns with management and that employees who make such complaints will not suffer any retaliation.

Recommendation: The Committee unanimously recommends that the LANC Board approve the attached policy related to Employee Complaints about LANC Policies or Practices.

2005 Statewide Priorities:
Legal Services Corporation requires that the Board annually set priorities statewide to direct the delivery of services to eligible clients. The Committee reviewed the 2004 priorities along with census data related to poverty, housing and employment in NC, closed case data from each office and local case acceptance criteria approved by Local Advisory Councils. The Committee sought input from the LANC Clients Council. The Client Council Coordinator, Mary Hedgepeth, reported that client concerns were included within the current LANC priorities and the Clients Councils did not recommend any revisions to those priorities. The Operations Committee made two minor revisions to the 2004 priorities and those revisions are in italics on pages 1 and 7 or the Priorities attached to this report.

Recommendation: The Operations Committee unanimously recommends that the Board adopt the Priorities as revised.

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