Meeting Minutes - LANC Board of Directors
June 16, 2006

Site/Location: AmeriSuites Hotel Atlantic Beach, Pine Knolls Shore, NC

Call to Order and Welcome

Chairman Cal Adams called the meeting to order at 10:05 a.m. and welcomed all in attendance.

Members Present

Reid C. Adams

Willie Dawson

Frank Queen

Leo L. Allison

Nellie Kearney

Rhonda Shepherd

Burton Craige

Scott Lewis

CR Ward

Leto Copeley

James Maxwell

Willis Williams

Sarah Davis

Pearl Nealey

John Vernon, III

Members Absent With Prior Notification:

Glenn Barfield

L. Lynnette Fuller-Andrews

Ray Owens

David Daggett

Olga Gomez

Robert Riddle

Richard Fay

Hada V. Haulsee

D. Clark Smith, Jr.

Mary Flowers

Pender McElroy

Saketta Spivey

Administrative Office Staff:
George R. Hausen, Jr., LANC Executive Director
Bernetta Johnsson, Finance Director
Dock Kornegay, Director, Public Relations & Communications
Chris Marks, Assistant Director of Finance & Administration
Celia Pistolis, Assistant Director of Advocacy & Compliance
Tonya Pruitt-Lyons, Administrative Assistant
Paula Spence, Office Manager

LANC Staff Members:
Mary Hedgepeth, Clients Council Coordinator
Richard Klein, Regional Manager/Senior Managing Attorney, LANC-Wilmington Office

LANC Affiliated Attendees:
Michelle Cofield, Director of Public Service & Pro Bono Activity, NC Bar Association
Helen Cook, LANC Clients Council
Dennis Dorgan, Consultant, LANC Access to Justice Campaign
Angie Goodwin, Romeo Wiggins
Nan Hannah, Attorney at Law
Phillip Leigh, LANC Clients Council
Gregg McDougal, NC Bar Association
Evelyn Pursley, Executive Director, IOLTA
Rhonda Raney, Executive Director, NC Justice Center
Paul Shepard, 21st Judicial District
Mastin Simmons, Romeo Wiggins
Diana Williams-Cotton, LANC Clients Council

Approval of Minutes

Chairman Adams directed the Board’s attention to the Board of Directors general business meeting minutes of March 15, 2006. Following review and discussion of the minutes, a motion was made, duly seconded, and the minutes were UNANIMOUSLY APPROVED, as written.

Finance Committee Report:
Chairman Adams recognized Leto Copeley, Chair of the Finance Committee, who reported that the Finance Committee had met and discussed the 2005 Audit and the current mid-year financials. Ms. Copeley reported that the Finance Committee was pleased with the Audit. Mastin Simmons and Angie Goodwin, auditors from Romeo Wiggins, addressed the board about the auditor’s findings stating that the audit received a clean opinion in all aspects reviewed, receiving less than a 5% error rate. Following discussion, it was moved, duly seconded, and UNANIMOUSLY APPROVED, to accept the audit report as presented.

Ms. Copeley asked Chris Mark, LANC’s Assistant Executive Director for Finance and Administration, to further discuss items addressed by the Finance Committee. Mr. Marks directed the board’s attention to the 2006 mid-year report found on page 14 in the board book. He stated that the mid-year budget reflects a savings from an adjustment in the projected cost in fringe benefits and health costs. He further stated that the reflected budget is basically on target for revenue and expenses as projected at the beginning of the year.

Chairman Adams recognized Evelyn Pursley, Executive Director of IOLTA, to report on IOLTA. She reported that last year, IOLTA earned approximately $4 million in income. She further indicated that the 1st quarter of 2006 has earned income reaching almost $1 million.

President’s Report

Chairman Adams recognized George Hausen who reported that LANC completed and submitted the 2007 grant. He further reported that a team from LSC recently visited LANC offices and reviewed compliance matters in staff and Private Attorney Involvement (PAI) cases. The LSC team reported that it had not discovered any systematic errors in the cases reviewed. However, the team found that PAI cases did not have appropriate follow-up and some cases were not being closed timely. Mr. Hausen stated that the PAI coordinators are scheduled to meet to address these concerns.

Mr. Hausen gave a brief update on the progress of the Centralized Intake Unit. The Unit is providing advice and brief service to callers and referring extended service cases to local LANC offices. The new intake unit has increased client access from 75% to 90%. He noted that IOLTA and the Z Smith Reynolds Foundation are funders and supporters of this project.

Legislative Report

Chairman Adams recognized Rhonda Raney, Executive Director from the NC Justice Center, to give the Legislative Report. Ms. Raney gave a brief overview of the activities of the Legislature and the efforts of the NC Justice Center in lobbying, litigation and research. She stated that the NC General Assembly reconvened for a short session on May 9, 2006 to address limited areas of business carried over from the last session dealing with bills, taxes and fees. Ms. Raney gave highlights of several bills currently being addressed during this short session which affects low income persons in our state.

Access to Justice Campaign Report

Chairman Adams recognized Dennis Dorgan, a consultant for LANC’s Access to Justice Campaign, to give an update on the campaign. Mr. Dorgan reported that the Resource Development Committee and the leadership decided to target the Triangle and Triad areas to begin the campaign’s effort for fundraising. He reported that key persons have agreed to contribute in a leadership role in the Triad region fundraising effort. He reported that the leadership and the Triad’s committee membership is underway and making great progress. Mr. Dorgan continues to work closely with Lynn Chance who is the coordinator working out of the Greensboro office, and that she has provided immeasurable supportas the staff person in the fundraising effort.

Mr. Dorgan commented that North Carolina is setting a new leadership element in the effort of fundraising in the country. The campaign has gotten off to a good start receiving contributions of $25,000 each from two of the largest law firms in North Carolina, Kilpatrick Stockton and Womble Carlyle Sandridge & Rice. He urged the board to fulfill its own obligation to further this effort by making a pledge no later than July 1, 2006 for 100% participation. Chairman Adams assured follow-up with the LANC Board regarding the campaign.

The meeting was recessed for lunch at 11:45 a.m. and reconvened at 2:35 p.m.

Committee Reports

Operations Committee:
Chair Adams recognized Celia Pistolis to give the report. Ms. Pistolis directed the Board’s attention to pages 17 through 24 in the board book which contained the annual local advisory reports for Ahoskie, Greensboro, Pembroke/Fayetteville, Sylva, Wilmington, Winston-Salem and Wilson, stating that these reports are for informational purposes only.

Personnel Committee:
Chair Adams recognized Celia Pistolis and Chris Marks to give the Personnel Report in the absence of Chair Hada Haulsee. Mr. Marks reported that the Personnel Committee met and discussed current health costs and projections. He stated that the costs are in line with the projections.

Ms. Pistolis reported that the committee reviewed the Conflict of Interest Policy and recommended that the board adopt the policy as presented and found on page 15 of the board book. Following discussion it was moved, duly seconded and UNANIMOUSLY RESOLVED to adopted the policy as presented. A copy of the approved policy is attached to these minutes.

Mr. Hausen stated that a recommendation to the board regarding loans for employees from the Retirement Plan is deferred until the September board meeting, pending a decision from outside council on revising language in the Retirement Plan.

Strategic Planning Committee:
Chair Adams recognized George Hausen to give the Strategic Planning Committee report in the absence of Chair Glenn Barfield. Mr. Hausen directed the board’s attention to a draft of a Resolution of the Deficit Reduction Act of 2005 (DRA). Mr. Hausen recommended, and the Board agreed, to table the Resolution until the next meeting.

Grievance Committee:
Celia Pistolis reported that there are no grievances pending.

Client Affairs Committee:
Chairman Adams recognized Willis Williams to give the report of the Client Affairs Committee. Mr. Williams reported that the Clients Council has joined efforts with the NC Justice Center to include news of the client’s council in its newsletter “Community News.” The NC Justice Center will also help draft a work plan, develop a mission statement, and a strategic plan. Mr. Williams further reported that the LANC Clients Council was given a demonstration of a national web-based resource, Law Help, which is currently available through the Legal Aid website. He stated that this valuable resource will be useful to clients statewide.

Amendment to the Bylaws

Chair Adams recognized George Hausen to report on an amendment to the Bylaws. Mr. Hausen directed the board’s attention to a proposed amendment to the bylaws on page 26 in the board book. Mr. Hausen stated that the proposed amendment basically allows officers of the corporation to serve a two-year term effective immediately, and if their term as a director ends while they are serving as an officer, they will be allowed to serve an ex officio year. Following discussion, it was moved, duly seconded and UNANIMOUSLY RESOLVED to adopt the amendment as proposed. A copy of the bylaw amendment is attached to these minutes.

Nominating Committee Report:
Burton Craige was recognized to give the Nominating Committee Report. Mr. Craige reported that David Daggett, John Vernon, L. Lynnette Fuller-Andrews and Robert Riddle have either completed their terms of service or resigned. John Vernon was present and accepted an award for his dedicated service and outstanding leadership to the LANC Board. David Daggett, L. Lynnette Fuller-Andrews and Robert Riddle were not in attendance, but were recognized and an award for their outstanding service will be delivered to each of them.

Mr. Craige reported that the following attorney board members were reappointed to serve a second three-year term from June 2006 until June 2009: Frank G. Queen and Glenn A. Barfield, NC Bar Association; Richard E. Fay, Mecklenburg County Bar; Scott B. Lewis, NC Gay & Lesbian Attorneys; Reid C. “Cal” Adams, NC Association of Defense Attorneys; and Burton Craige, NC Academy of Trial Lawyers. The Nominating Committee recommends that these reappointments be accepted by the Board.

He reported that the Nominating Committee recommended that the following nominees to serve a three-year term from June 2006 until June 2009: Gregg McDougal, NC Bar Association; Lisa Morgan, NC Association of Black Attorneys; Paul Shepard, Forsyth County Bar; Raymond E. “Ray” Owens, Jr., NC State Bar. He further recommended Nan Hannah, appointed by IOLTA to serve a one-year term as the IOLTA representative.

Mr. Craige reported that the following eligible client board members were reappointed to serve a second three-year term from June 2006 until June 2009: Pearl Nealey from the West Region, Willis Williams from the Northeast Region, Nellie Kearney from the Triangle Region, Rhonda Shepherd from the West Region.

Mr. Craige reported that the Nominating Committee recommended the following nominees to serve a three-year term from June 2006 until June 2009: Phillip Leigh from the Triangle Region, Helen Cook from the Southeast Region, and Diana Williams-Cotton from the Triad Region.

Mr. Craige reported that it is the recommendation of the Nominating Committee that Sarah Davis serve as a statewide ex officio member, and that CR Ward serve as an ex officio member from the LANC Client Council.

Following discussion is was moved, duly seconded, and UNANIMOUSLY RESOLVED to accept the appointments and recommendations of the Nominating Committee, as reported.

Chairman’s Report

Chair Adams thanked the Administrative Office staff and all who supported him in his position as Chairman of the Board, and stated that he is looking forward to working with them for one more year, until his term is complete as Chair.

Adjournment

As there was no further business before the Board, Chair Adams adjourned the meeting at 3:05 p.m.



____________________________
Mary Flowers, Secretary
LANC Board of Directors

 

 

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