Meeting Minutes - Transition Board
Transition Board of Directors - Legal Aid of North Carolina

June 28, 2002 Meeting (BOD Mtg #14) - FINAL MEETING
Adams Mark Hotel, Winston-Salem, NC

Persons in Attendance:
The following persons were present for this meeting:

Board members: Cal Adams, Leo Allison, Glenn Barfield, David Daggett, Sarah Davis, Allen Johnson, Pender McElroy (Chair), Dorothy McHugh, Laura Shofner and Willis Williams. Cal Adams held proxy for Elizabeth Cox.
Guests: Ted Fillette, Susan Gottsegen, George Hausen, Bernetta Johnsson, Chris Marks, Celia Pistolis, Gina Reyman and Delsey Williams.

Call to Order
Pender McElroy, Chair of the Transition Board, called the meeting to order at 1:15 pm.

Adoption of Agenda (Pender McElroy)
McElroy presented the meeting agenda. Willis Williams moved that: "The agenda be adopted."

Sarah Davis seconded the motion. The motion was approved unanimously.

Approval of minutes of May 31, 2002 meeting
Cal Adams moved that:

"The Minutes of the May 31, 2002 meeting be approved with the following revision to the
Governance Committee section: the insertion of the name of ‘Mary Flowers as the ex officio client member’ and the addition of ‘Ward’ to the name of C.R. in the last paragraph of this section."

Willis Williams seconded the motion. The motion was approved unanimously.

Report from Nominating Committee (Allen Johnson)
Allen Johnson reported, in the absence of Committee Chair Rick Fay, that the Committee held a conference call with the following Committee members participating: Burton Craige, David Daggett, Rick Fay, Allen Johnson and Rhonda Shepherd. The call involved discussion of the officers listed in the bylaws and that the bylaws do not actually have an Executive Director, but a president. Under the current trend for non-profit organizations, the President is the CEO and has the same duties as Executive Director. George Hausen is actually the President of Legal Aid of North Carolina, Inc. The Committee members also discussed the various terms of office for the incoming board members and how to suggest board members for the offices of Chair, Vice Chair, Secretary and Treasurer. The Committee will meet again by conference call on July 8, 2002 and wanted direction from the full board about selecting officers and proposing term limits for various board members. The Transition Board directed the Nominating Committee to present a slate of candidates who are willing to serve in those positions to the full Board at its next meeting.

George Hausen reported that the North Carolina Bar Association Board of Governors at its annual meeting had named its remaining appointees as Willie Dawson of New Bern and Farruk Ikbal of Asheville.

There was a discussion about selecting officers and the initial terms for those officers as well as other board members. Also, the composition of the Executive Committee of the Board will need to be considered as the current Bylaws of Legal Aid of North Carolina, Inc. calls for the Board to designate two or more directors to constitute the Executive Committee.

Glenn Barfield moved that:

"Article IV, Section 1 of the Bylaws of Legal Aid of North Carolina, Inc. be amended to read as follows:
‘Article IV. Section 1. Executive Committee. The Executive Committee of the Board of Directors shall be comprised of the officers of the corporation, except the President, and two additional at-large members of the Board of Directors appointed by the Board. The Executive Committee shall have and may exercise the authority of the Board of Directors in the management of the business and the affairs of the corporation during intervals between meetings of the Board. Vacancies in the at-large membership on the Executive Committee shall be filled by a vote of the Board of Directors at a regular meeting or a special meeting called for such purpose. The Executive Committee shall keep minutes of its proceedings and shall report to the Board of Directors on action taken. Minutes of the Meetings of the Executive Committee shall be prepared and kept with the records of the corporation.’ "

Leo Allison seconded the motion and the motion was approved unanimously.

Willis Williams moved that:

"Article V. Sections 1 and 2 of the Bylaws of Legal Aid of North Carolina, Inc. be amended to read as follows:
‘Article V. Section 1. Officers. The officers of the corporation shall be the Chair of the Board, Vice-Chair of the Board, President, Secretary and Treasurer. The officers of the corporation shall have the authority and perform the duties as prescribed in these bylaws and as from time to time may be prescribed by the Board of Directors. Article V. Section 2. Election and Term. Officers of the corporation, except for the President, shall be elected by the Board of Directors at the annual meeting of the Board of Directors. Each officer of the corporation, except the President, shall hold office until the next annual meeting and until a successor is elected and qualifies. The President of the corporation shall hold office at the pleasure of the Board of Directors.’ "

Glenn Barfield seconded the motion and the motion was approved unanimously.

Local Advisory Councils (George Hausen)
George Hausen reported that Local Advisory Councils would need to be selected and that he will create a proposal for selecting members to those councils. He will present this proposal to the Nominating Committee for review and discussion. The Nominating Committee will then present its proposal to the Board for action. The Board discussed the composition of Local Advisory Councils in the interim.

Dorothy McHugh moved that:

"The current members of the Board of Trustees for the various Legal Services of North Carolina offices and current members of the Boards of Directors for Legal Services of Southern Piedmont, North Central Legal Assistance Program and Legal Aid Society of Northwest North Carolina be designated as Local Advisory Councils."

Cal Adams seconded the motion and the motion was approved unanimously.

Publicity (George Hausen)
George Hausen reported that Dock Kornegay had distributed press packets about Legal Aid of North Carolina to various media across the state. A logo had been designed as a way to identify or brand the organization. Glenn Barfield had made a wonderful presentation about the new organization as part of the Academy of Trial Lawyers Annual Meeting. The North Carolina Bar Association was also promoting Legal Aid and there was a great deal of information presented during its Annual Meeting in Wilmington. The NCBA also has something special planned as a kick off for July 1, 2002. Signs and business cards with the new name have been created for each office. Also, promotional materials (coffee mugs, buttons, pencils and mouse pads) were being distributed to employees and others, including Board members. Hausen presented each Board member at the meeting with a coffee mug, button and pencil with the Legal Aid name and new logo.

Ted Fillette explained that the two new offices in Charlotte (Legal Aid of North Carolina and Legal Services of Southern Piedmont) were promoting their different services in a "Partners for Justice" campaign. He distributed a pamphlet that has been produced and is being provided to clients, social agencies and others to explain the functions of those offices.

Recommendation on Committees (George Hausen)
George Hausen reported that he had no recommendations for committees to serve the Board of Directors; however, a Personnel Committee was needed immediately to work on new personnel policies related to salary structure, leave time, etc.

Cal Adams moved that:

"A Personnel Committee be appointed with the following Board members: Cal Adams, Leo Allison, Glenn Barfield, Pender McElroy, Jim Maxwell and Laura Shofner."

Willis Williams seconded the motion and the motion was approved unanimously. Cal Adams was designated as the Chair and George Hausen will staff the Committee.

Hausen indicated that until the Board adopted formal personnel policies, existing policies in the four programs would operate as temporary policies. Most of the policies in the four programs were similar, but Legal Services of Southern Piedmont had some very distinct policies. There was discussion about the need for "staff buy in" with any new policies created. Policies will be circulated to all staff and an appropriate period for comments will be provided.

Adams moved that: "Cindy Patton be appointed as an ex officio member to the Personnel Committee."

Glenn Barfield seconded the motion. The motion was approved unanimously.

Governance Committee (Cal Adams)
Cal Adams distributed copies of the Bylaws of Legal Aid of North Carolina for the Board’s text being distributed.

Adams moved that:

"The Bylaws of Legal Aid of North Carolina, Inc. as amended earlier today along with the following corrections: ‘24th Judicial District C in Article II. Section 3.’ should read ‘26th Judicial District C’ and the language ‘Amendments to Article II, Section 2 approved February 22, 2002’ found on page 8 of the Bylaws should be deleted."

Willis Williams seconded the motion and the motion was approved unanimously.

Report from the Management Structure Committee (Allen Johnson)
Allen Johnson reported that the Management Structure Committee had completed its work and had no further assignments to address.

Report from the Real Property Committee (George Hausen)
George Hausen reported that Legal Services Corporation had not made a decision about the real property proposal and that no decision was expected by July 1, 2002.

Report from Property Conveyance Committee (Gina Reyman)
Gina Reyman reported Deann Richardson Spell had recommended that the Board address formal conveyance of the property at its meeting on July 26, 2002. At that time, assignments of the leases could also be approved.

Additional Issues for Discussion
Cal Adams moved that:

"The Board approve the direct deposit of Legal Services Corporation funds into Legal Aid of North Carolina, Inc."

Glenn Barfield seconded the motion and the motion was approved unanimously.

Banking institutions require formal Board approval of printed resolutions for imprest accounts and new IOLTA accounts for client funds. David Daggett moved that:

"The Board adopt the resolutions authorizing the transactions in the following accounts:

1) Mechanics and Farmers Bank, Raleigh, NC-close an existing account and terminate the process for opening a new account;
2) Lumbee Guarantee Bank, Pembroke and Fayetteville, NC- open an imprest deposit or savings account to endorse checks and make payments, but no authority to borrow or lend funds;
3) Lexington State Bank, Lexington, NC- open an imprest deposit or savings account to endorse checks and make payments, but no authority to borrow or lend funds for both imprest and IOLTA account for client funds;
4) Wachovia /First Union Bank Greensboro, NC- open an imprest deposit or savings account to endorse checks and make payments, but no authority to borrow or lend funds;
5) RBC-Centura Bank, Durham, NC- open an imprest deposit or savings account to endorse checks and make payments, but no authority to borrow or lend funds; and
6) First Citizens Bank- open an imprest deposit or savings account to endorse checks and make payments, but no authority to borrow or lend funds for both imprest and/or IOLTA accounts for client funds for the following local offices: Asheville, Boone, Hillsborough, Raleigh, Smithfield, Sylva and Wilmington."

Dorothy McHugh seconded the motion and the motion was approved unanimously.

Glenn Barfield moved that:

"The Board authorize Pender McElroy to sign any other bank resolutions for the purpose of opening a deposit or savings account so long as there was no authority to borrow or lend funds and so long as McElroy was satisfied that the requisite paperwork was in order."

Willis Williams seconded the motion and the motion was approved unanimously.

Final Statements from Transition Board MembersThere were shouts of "Hallelujah" from Willis Williams, Dorothy McHugh and others as the meeting concluded.

Glenn Barfield remarked on the transformation of the process that began with tension, concern and scrutiny from an audience. Today, the tension was missing and there was no audience in the room. He congratulated the Board for designating Pender McElroy as the Chair and noted that Pender’s work on this Board, among his other activities, resulted in his being recognized as the Pro Bono Attorney of the Year by the North Carolina Bar Association. On behalf of Legal Services of North Carolina, Glenn thanked Pender and other Transition Board members for their work.

Gina Reyman expressed her deep appreciation to the private attorneys and clients who had spent so much of their personal time during this process.

Willis Williams provided the client’s perspective by echoing that there was less tension around the table and that clients had been empowered by this process. The Transition Board had proactively encouraged client participation and that he expected the Legal Aid Board to continue that encouragement.

David Daggett invited all present to attend the 40th Anniversary of the creation of the Legal Aid Society of Northwest North Carolina, the oldest legal aid organization in the state.

Pender McElroy stated that on behalf of the Board, he wanted to sincerely thank the many staff persons who helped further the process – including Gina Reyman, George Hausen, Ted Fillette, Susan Gottsegen, Michele Cofield and Celia Pistolis. On a personal note, McElroy noted that tension and mistrust were evident at the beginning of the process; however, everyone was intent on doing the best thing for our clients and programs. People put aside selfish motives and self-interests to create a statewide program that will be efficient and will be able to work together for the clients. He remarked that Legal Aid of North Carolina was ready to go forward in a way that the Transition Board could be proud of. The sixteen people who came together as the Transition Board have a done a marvelous job and he extended his personal thanks to each of them.

Dorothy McHugh moved that the meeting be adjourned sine die, and Sarah Davis seconded the motion. The motion was approved unanimously.

Meeting summary prepared by Celia Pistolis.

 

 

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