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

June 15, 2001 Meeting (BOD Mtg #4)
Joint Meeting with the Legal Services Planning Council
Wake Forest University School of Law

Present: Pender McElroy, Allen Johnson, Willis Williams, Leo Allison, David Daggett, Linda Rollock, Glenn Barfield, Frank Queen.

Planning Council Guests: Gina Reyman, Ted Fillette, Melissa Pershing, Mary Lee Hall, Jim Barrett, Kay House, Michael Hamden.

Guests: Jennifer Stewart, Bill Rowe, Debra Tyler-Horton, George Hausen, Mel Ditz, Mary Lee Hall, Kellie Fleshman, Roselle Margolis, Lynn Chance, Janet McCauley-Blue, Ken Schorr.

Introductions, Approval of Minutes and Agenda (Pender McElroy)
After all who were present introduced themselves, the board approved the minutes from the previous meeting as written. The board approved the agenda with one addition: The Planning Council Presentation.

Legal Services Planning Council Presentation The presentation began with individual introductions by Planning Council members.

Jim Barrett serves at the executive director for Pisgah Legal Services (PLS; Buncombe, Henderson, Madison, Polk, Rutherford, and Transylvania counties) where he has worked for 18 years. PLS is a non-LSC-funded program. There are about 60,000 low income people in his service area. About 16 advocates serving those six counties including the advocates from Appalachian Legal Services (LSNC program). Provided handouts for the group.

Willis Williams serves as a client board member of LSNC and spoke on behalf of Vernessa Taylor (Planning Council member representing client issues). Clients are concerned that the client council be involved in shaping the decision about Legal Services configuration before the fact. The Client Council needs to be involved with priority setting and it should take into account what the client needs are. Clients want to see visible impact on their lives.

Michael Hamden serves at the executive director for NC Prisoner Legal Services (statewide program) where he has worked for 15 years. His program employs 15 lawyers and 10 paralegals. Funding is a little different: 98% derived from a contract with NC Department of Corrections. This program does not get federal money. IOLTA is next largest funder. This program benefits from participating in the Planning Council; effective means for a deliberate and coordinated means of delivery of services.

Mary Lee Hall is the managing attorney of the Farmworker Unit of Legal Services of North Carolina (statewide program for migrant farm workers). Her role is to help be the voice of migrant farm workers. North Carolina has the sixth largest number of migrant farm workers and the largest number of H2A workers in the country.

Michelle Cofield serves as the director of public service activities for the North Carolina Bar Association (NCBA). She has served four years as a legal services attorney at North State Legal Services in the early to mid 1990s. She serves as the Bar Association’s liaison to the legal services community and helps coordinate activities to promote legal services within the NCBA.

Ted Fillette serves as the deputy director of Legal Services of Southern Piedmont (Cabarrus, Gaston, Mecklenburg, Stanly, and Union counties), which is an independent program that predated the creation of LSNC – 1967. He has been there since in 1973 (except one year in an LSNC program in the east). Prior to the LSC restrictions, this program did a significant amount of the legislative advocacy and class action work statewide.

Kay House represents Legal Aid Society of Northwest North Carolina (Davie, Forsyth, Iredell, Stokes, Surry, Yadkin counties), established in 1962, where she serves as the executive director. There are eight advocates and a total staff of 16. Over the years, there have been a large number of landlord tenant and consumer cases out of the appellate courts, e.g., Ellis case–effective rights to claim exempt property. First money from LSC back before it was LSC (office of economic opportunity). Thorns Craven was a former director.

Melissa Pershing services as the executive director of Legal Services of North Carolina (for a few more weeks). LSNC recently celebrated 25 years of service. LSNC was created by NCBA in the mid seventies to fit around preexisting programs across the state. LSNC field programs serve 83 counties (which are the counties not served by LSSP, LASNNC and NCLAP) LSNC employs about 200 staff, about 90 of whom are lawyers. LSNC has 12 field programs. The field program directors are represented on the Planning Council by the chair of the program directors’ group. LSNC’s Domestic Violence Initiative program is coordinated at the LSNC Central Office. There is a domestic violence attorney in all LSNC programs. There are three other statewide programs–Advocates for Children’s Services (formerly the Mental Health Unit), Environmental Poverty Law Program and the Farmworker Unit.

Bill Rowe represents the NC Justice Center & Community Development Center, where he and deputy director, Debra Tyler-Horton, are serving as interim co-directors. What is now known as the "Justice Center" was formerly called the "Resource Center" for legal services. When legal services support units were "defunded", the Resource Center closed and reorganized as the NC Justice & Community Development Center. Litigation unit. Some class actions were inherited and others were initiated by the Justice Center. Work and efforts undertaken by the Justice Center include immigration work farm worker work, legislative work. The Tax Center is a grassroots effort and works with the legal services effort.

Gina Reyman serves as the Planning Council chair. She works at North Central Legal Assistance Program as the executive director. NCLAP has about 13 staff members.

Thirteen members make up the Planning Council. Members who were not present: Dale Deese (chair of the LSNC Program Directors Group), Stephon Bowens (Land Loss Prevention Project), Deborah Greenblatt (Carolina Legal Assistance), Vernessa Taylor (client rep).


Historical presentation of the delivery system: by Mary Lee Hall. Mary Lee’s presentation was aided by transparencies and a handout outlining the historical progression of the legal services delivery system. The presentation began in 1962 with the establishment of the Legal Aid Society in Winston-Salem, the Office of Economic Opportunity (OEC; predecessor to Legal Services Corporation) and the War on Poverty.

The presentation progressed through the 60's, 70's, 80's and 90's. Hall passed out a handout that tracked her presentation. (Please review the handout for this portion of the presentation.)

Consolidation in 1998. Pisgah Legal Services (Asheville) left the LSNC confederation. Appalachian Legal Services was created to serve that area with Legal Services Corporation (LSC) funds. The Farmworker Unit was "defunded" and folded into LSNC. The Grower’s Association tried to block all state funding for all LSC programs.

In May 1999, the Planning Council was convened. (Handout on the Vision). The Planning Council looked at the justice community broadly. Onion metaphor: Towards the center of the onion–people involved with direct advocacy for poor people, which includes the organizations presently on the Planning Council. Federally funded and not federally funded programs are included. The Planning Council is trying to figure out the best possible way to deliver services in the best and most efficient way possible. The Planning Council hopes to gain efficiencies by working together.

Gina Reyman, Planning Council chair, officially request that a member of the Transition Board be appointed to the Planning Council.

Pender McElroy thanked the Planning Council for the presentation noting that the historical presentation was fascinating.

McElroy called for motion to appoint member to the Planning Council. Moved by Frank Queen. Seconded by Glenn Barfield. Motion passed unanimously. Frank Queen consented to serve on the Planning Council.

Jim Barrett added that his program raised $650,000 in 1995. Currently they are at $1 million. It is a big deal with his board to raise money locally. Pisgah Legal Services has doubled the number of clients served since 1995. They have also expanded the pie of money to serve low income people. Feels that he would be remiss if he didn’t report this.

Report from Barfield Committee (Glenn Barfield)
Members: GlennBarfield, Willis Williams, Rick Fay, Ken Schorr, Ted Fillette, Kay House, Michael Hamden, Pender McElroy (ex officio), George Hausen. The chair suggested adding/appointing two additional Planning Council members to the group–Gina has agreed. McElroy intends to secure another person and will report this back to the Transition Board.

McElroy is concerned about timing of the work. He hopes that the Committee to have a recommendation to the Transition Board at the July 27 meeting with respect to the programs and services of the new entity and the Charlotte and Winston Salem programs. Committee needs to schedule at least two in-person meetings before July 27. Face to face meetings are crucial to this process.

Committee Report (Glenn Barfield)
The committee met for the first time on June 3, 2001 in Charlotte at McElroy’s office. The issues addressed were: (1) How will services be provided in the service areas served by Charlotte, Winston-Salem?; and (2) To what extent will the resources be folded in? Retain resources/personnel?

The committee is looking at two models:
1. Plan A. Folds the majority of the resources into the statewide program. Doing the same work that’s being done by the programs. Still allows to leave in place some smaller units to do work that the Justice Center is doing now–network of providers to do that work and working with the Justice Center in those areas and other areas of the state. This plan contemplates more of a seamless transition, would be subject to the general administration.

2. Plan B. More of a splitting of these programs. Would be two programs in these areas providing basic field services. Would involve splitting some practice areas. Maybe would involve an expansion of the practice areas. Basic needs type assessments. Would do some unrestricted work. LSC–funded and locally funded. Sharing of state resources. Missions would overlap to some extent. Would need to cooperate on how to divide up the practice areas.

Report from LSSP on Plan B (Ted Fillette)
Unrestricted component of the Charlotte program by looking at what they do best and what they have done historically. How they could work with the types of needs the clients have and how the restricted work could fill those needs? Reorganizing the resources to give them more flexibility to help the clients and helping other practitioners in the state to do things they need help with that the Justice Center may not be able to help with and other impact work. Three main areas of practicing this approach makes sense to their organization:
1. Benefits. Prior to the Justice Center, LSSP did most of the statewide benefits work. Doug Sea (LSSP staff attorney) has been doing most of this work for more than 20 years. There is a need for administrative advocacy that goes hand in hand with the litigation. Time to re-establish that capacity.
2. Hispanic Population. New phenomenon for them. Increased more than 1000% since 1999. Between 40K and 50K Hispanics in their service area. LSSP has hired 3 bilingual lawyers. Can’t serve undocumented people. Makes sense for the bilingual lawyers to serve whole families/communities. Administrative advocacy, community organizations, etc. Funding by unrestricted sources so that they can provided remedies that make sense.
3. Landlord Tenant work and Housing. Before JC, most of the legislature and administrative housing work for the state was done out of Charlotte. Helped start the Resource Center. Fillette was one of those people. Practitioners from across the state call Charlotte for help with their cases. That role continues. A lot of the lobbying needs to be done on a local/regional level. Charlotte could continue to provide this service on the regional/local level. Work that can be done now. Some of it is already being done now by their staff who "work of the clock" and go under someone else’s umbrella. Question of reorganizing how the two programs would work together. Staff would like to have the additional capacities. Doesn’t want to split up the staff. Think they can do this by not splitting up the staffs.

Report from LASNNC on Plan B (Kay House)
LASNNC was very impressed with what Pisgah had done with local fundraising and decided to take a look at that. LASNNC has tripled their United Way funding over the past three years. Forsyth County has the highest per capita United Way giving than any other in the nation. LASNNC has diversified its funding portfolios. Diversity of funding sources is crucial to stable funding. Her board asked her to do a feasibility study to determine if they could increase the range of services and range of funding. Access to Justice Campaign–wants 21st JD to increase their contributions over a specified period of time. They gave her a cautious "yes." LASNNC has become more collegial with the other attorneys which has helped the relationships. LASNNC should be just like the private bar in what they do–21st JD agreed.

The various funding sources have some restrictions based upon what the grant is for. LSC says that you cannot use another. If LASNNC can get support from Transition Board, the Planning Council and IOLTA, they think they can do some sort of collaboration "lap joint" with the colleagues in Greensboro (Central Carolina Legal Services). LASNNC would export the LSC money to the rural areas. LASNNC feels it needs a local board with local control. To convert on the fund raising piece, they would have to be a basic field service program and cooperate with Greensboro.

Advantages of Plan A (George Hausen)
This board needs to keep its focus on establishing a program for the basic needs of the poor people–to establish a basic legal services program. Hausen thought the Planning Council would decide how the unrestricted work should get done. The Planning Council should have a voice in the conversation of taking money from basic field services out to go to local programs and not to speciality programs. Not sure that legislative will agree with that. Pisgah state funding is not the same situation in other areas. Each of the other funders impose restrictions; concerned about that. You follow the money and not the need in many instances. Not always able to fund the need.

Barfield favors Plan A. He is concerned about Plan B in that you have to depend upon two separate organizations and boards to work out to be cooperative. He is also concerned that their may be competition and that splitting things up will mean competition for PAI (private attorney involvement) and local connections. LSNC has worked hard to resolve the issues in Asheville. Saying you will cooperate does not mean it will be done. There are differences of opinion about state funding based upon history, etc.–some think the legislature would want funds to go to the state program and others think that general assembly would be willing for it to be divided up differently.

Hausen also believed that the way the proposals are now, the statewide funded program would be limited to its LSC money. That would mean no competition for local money, no local attachment for the local bar or community. Statewide program would end up with the characteristics of the local DSS (department of social services) office. Pisgah Legal Services continues to do basic needs cases and is very concerned about continuing to raise money for those kinds of cases. Appalachian Legal Services (LSNC) does what Pisgah does not do. Pisgah has a stronger PAI program.

McElroy wants the Barfield Committee to stick to the July 27 deadline in coming up with their recommendation. Williams is concerned that clients may not be able to sort through the delivery of basic legal services.

It was reported that IOLTA would really like us to do a needs assessment of special populations, whether we are using our money in the best way. Some of this discussion will take place in the Planning Council.

McElroy agreed that the purpose of the Transition Board is to formulate set of programs for one statewide program to be funded by LSC money in all 100 counties in the state. It’s not quite that simple in his view. There are some of the other questions that need to be addressed in this group. Meetings are open. Not trying to go around the Planning Council. Time frame for making decisions is shorter tan the Planning Council’s ability to look at things long range. We also have four strong ind programs to work out as a statewide with all coming together. Two of them think things out to be done in a way that will work out as suggested–contrary to the entire purpose of this board. Need to try to address these other issues in order to accomplish the ultimate goal.

Pershing felt that there has not been a really good vision for Plan A. Vision of Plan A would be based upon what Willis said: How do clients get to where they need to go? All basic needs would be met. Statewide program is like a primary care physician. The intake/patient history would happen at that level. When there is a need for a specialist (doing what is restricted or the program can’t do) then there would need to be a referral out. Concerned about splitting resources and having so much overlap. There is a realization about funding sources: Three sources of funds can be used for operation and infrastructure (LSC, IOLTA, State) with LSC being the most stable funding source. IOLTA and State funds would not be enough together to provide this. Must ensure that client basic needs are being met in all 100 counties. System needs to be navigable by clients and talk to attorney within 24 hours. Consistency in the level of service. LSC funds are the only ones available that can put together that kind of system.

Barfield Committee’s next meeting: LSNC’s Central Office will send out dates he will propose. Possibly July 13 and 14 at the same time as the client council meeting in Wilmington. Bob Gross (LSC) will attend this meeting if he is available.

Reports from Planning Council
(No other reports from the Planning Council.)

Subgrants/Youells Letter (Pender McElroy)
Regarding the June 6, 2001 letter from Randi Youells (LSC vice president for programs).
Note page 3: short term subgrants. If we are not ready by January 1, 2002, LSC would permit us to continue under the current configuration through short term subgrant while finalizing. Obvious advantage is time.

Discussion surrounding the advantages and disadvantages of the LSC subgrant. Some saw it as an advantage for the larger programs to have that time frame to make the transition to a statewide program. It was also suggested that by accepting the LSC subgrant (the Transition Board), there would be another set of complexities involved with receiving that money. For example there may be a full audit for the three-six months’ worth of money received. It was also suggested that by contemplating a six-month subgrant, staff may feel that there is more stability.

The notice requirement for the subgrant is part of the LSC grant application which is due July 2, 2001. By giving notice in the July 2 grant application, we would preserve the option to accept the subgrant. If the program is not merged by December 31, 2001, then LSC will require the subgrant.

If we contemplate the use of the subgrant for the purpose of garnishing more time for planning and decision-making, then that is not the best reason to use the subgrant. It was also suggested that if we do accept the subgrant, there needs to be an administrative office and support personnel in place to receive and administer the grant.

McElroy stated that the board needs to decide whether it will submit a notice of the potential to apply for a subgrant. The notice says: "intends."

Glenn Barfield moved that the Transition Board and the four LSC-funded programs/boards sign the forms for the intent to submit the subgrant. Seconded by Frank Queen.
Discussion: Kay House stated that she did not feel that she could make the decision about the subgrant as the executive director. She plans to discuss this with her board at their June 25 meeting. She also further stated that she hoped that there would be the understanding that they (LASNNC) would work to preserve the option but not a commitment to be an LSC grantee. McElroy stated that he did not see that there was a problem with signing the subgrant intent document. This is a consensual process and no one is forced to stay at the table. The motion passed.

Governance Committee Report (Glenn Barfield)
McElroy appointed Barfield to co-chair this Committee, to step in when Cal Adams (chair) cannot participate. McElroy stated that because we are on a tight time schedule the committees should accelerate their work.

Barfield stated that not much progress since last transition board. Good consensus on how they put the board together. Wants to come to next transition board meeting with recommendations regarding local boards of trustees or advisory boards. Need info from management committee on the delivery system. Will help with determining matters of the local boards.

Ran Bell has completed the A/I (articles of incorporation), the draft of bylaws and the IRS stuff in the handout here.

The Client Council will have a request to increase the board by two client members. By adding client slots the board composition would be within the LSC guidelines. Barfield will make that suggestion.

Review of Corporate Documents prepared by Ran Bell (Pender McElroy)
Legal Documents prepared by Ran Bell. Unable to meet with us until August. It takes up to 4 months for the 501(c)3. Bell can file an amending document if necessary. She will file Articles of Incorporation and adopted bylaws and send in the IRS application for 501(c)3 status. Bylaws here are generic to a legal services organization. Initial directors are to get this off the ground–representative from each of the programs--Cal Adams, Glenn Barfield, Tracy Barley, Pender McElroy. The interim board would be the Transition Board for the time being. Once all done, then the Transition Board members become the directors.

Call for motion to approve filing of articles of Incorporation, have initial directors adopt bylaws, and file the 501(c)3 application. Moved by Williams. Seconded by Barfield. Discussion: Allen Johnson concerned that there is no client members on the initial board. McElroy explained that the Transition Board members then become members of the new entity. The motion passed.

Governance Committee Report (continued)
Adding additional members gets the board up to about 27 members—1/3 affinity bar, 1/3 attorneys geographically, 1/3 clients selected geographically. Local boards is a question–more locally based than the regional structure they are talking about. Open question as to what duties would they have. Important for the local bar to have much input.

It was clear from discussion that it is very important to have the local connection with local bar associations for volunteer lawyers programs and fundraising. There was the sense that the Transition Board members would want local boards or advisory boards. It is important to the Client Council that there be local involvement. Banks are a good analogy. Local boards have the advisory capacity. No particular authority, but forms local base of support and constituency.

Management Structure Committee Report (Allen Johnson)
McElroy appointed Allen Johnson co-chair of this committee.

June 8 conference call. Regionalism and management structure. Soft boundaries would be easier across boundaries.
1. All local offices maintained and provide local services.
2. Five regions: Charlotte (and west), Triad, Triangle, Northeast, Southeast.
3. Each region would be responsible for its own local fundraising, coordination of advocacy, training, etc.

There was no agreement where it should be located. This Committee suggested that it is possible for it to be located within a program. Look at each function to determine whether they should be relocated. For example, technology is currently in WS. Guidelines should be developed. 12-18 months.

There is a need to have someone in the executive director position. No agreement whether it would be an interim or an acting. Would bring it to this board to make this decision.

There was committee disagreement on what authority should be delegated to local boards. The committee disagreed on actual structure. The committee asked program directors to come up with their views.

There was discussion by the Committee about the autonomy of regional directors and how they relate to the executive director. Power should rest with the executive director, power should rest with regions (flatter management model). People within the regions would be on the team concept. Leadership within the region would rotate around.

McElroy stated that there is a need to have some one who is clearly in charge–executive director. He stated that he supports having for regional directors, but you cannot manage by committee. Maybe we will have an interim director; maybe the new board ought to hire the new exec director.

The Committee had some concerns about traditional management structure. Pershing stated that she was not necessarily a proponent of the team management. Teams are formed according to what needs to get done. Wants there to be a discussion on what the options are. Potential for chaos given this community and where we are at this particular time. Queen stated that he was against uniform regional structure across the state. There is some benefit of regional when there is a large geographic areas and lots of offices.

Some of the other issues expressed during this report include the ability for the managers within the new organization would be able to bring their ideas to the group as a team and to be able to come to consensus. It was noted that it is part of the Legal Services culture to make decisions by consensus. The executive directors will provide this committee with more detail by the next meeting of the committee. It was also suggested that local boards would be able to help make determinations regarding how things may work in regions.

There was a lot of discussion about the size of the regions. Some concern was expressed about the West region’s size, i.e. everything west of Charlotte. There was concern that there was no regional center in another part of western North Carolina. Some discussion that the size of the regions may depend upon what you do with the local programs.

Johnson invited comments from everyone regarding the management committee’s charge. The committee’s next meeting is scheduled for June 20 by conference call.

Available resources on agenda
(skipped)

New Entity or Durham
The Board decided not to decide whether we will form the new entity or use the existing entity of North Central Legal Assistance Program.

New Name
During the board’s discussion of a name for the new entity, a number of issues were discussed including: the Client Council’s recommendation that "aid" be in the name in that it represents free services, the marketing study showed that "legal aid" supports the Client Council’s recommendation, that each office have a dba ("doing business as"), e.g. Legal Aid of Gaston County, and that the name be simple so that clients can find the office.

Motion (by Queen): "The new entity be named Legal Aid of North Carolina, Inc." Seconded by Allison. The motion carried.

New Business
(No new business.)

The meeting was adjourned by unanimous consent.


Minutes prepared by Michelle Cofield

 

 

Back  |  Top


Disclaimer

The materials contained on this website are for information and educational purposes only and do not constitute legal advice. Please contact your Legal Aid of North Carolina office or a private attorney if you need to speak to an attorney regarding your particular situation. See our complete disclaimer.

Mission Statement

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.

Back  |  Top