Meeting Minutes - LANC Board of Directors
December 12, 2008

Site/Location:  Hawthorne Inn & Conference Center
                      
Winston-Salem, North Carolina

Call to Order and Welcome

Lisa Morgan, Chair of the LANC Board, called the meeting to order at 2:05 p.m. and welcomed all in attendance.   Chair Morgan acknowledged her gratification to serve as the Chair of the LANC Board since the resignation of Glenn Barfield as Chair.

Members Present

Reid C. Adams

Samuel Johnson

Paul Shepard

Thomas Berkau

Shirley Jones

Ellen Sheppard

Helen Cook

Nellie Kearney

Mary Ann Tally

Mary Flowers

Phillip Leigh

Alice Tejada

Sharon Greig

Lisa Morgan

Diana Williams-Cotton

Celeste Harris

Dellarene Myers

 

 

Members Absent With Prior Notification

Susan Perry Cole

Ray Owens

John Wester

Lee Crouch

Kris Shepard

Kyle Woosley

Greg McDougal

Jim Talley

 

 

Approval of Minutes

Chair Morgan directed the Board’s attention to the Board of Directors general business meeting minutes of September 12, 2008.  Following review and discussion of the minutes, a motion was made, duly seconded, and the minutes were UNANIMOUSLY APPROVED, as written. 

President’s Report

Chair Morgan recognized George Hausen, Executive Director of LANC, who gave the president’s report.  He reported that LANC served 3,000 more clients in 2008,  a 15% increase.  This increase was handled without a significant increase in staff. 

Mr. Hausen welcomed the following members of the Winston-Salem office:  Hazel Mack Hilliard, Triad Regional Manager; Yvette Stackhouse, managing attorney; Lisa Brace, Stephanie Goldberg and Kenneth Love, staff attorneys. The staff attorneys were recognized to share highlights of their legal work with the Board.

Mr. Hausen welcomed Bill Rowe, the General Counsel for the NC Justice Center, who gave a legislative update.   

Chairman’s Report

Chair Morgan reported that she recently attended a NLADA conference along with several members of the LANC staff including its director George Hausen and LANC Board member Celeste Harris.  She reported that the conference was informative and energizing as many issues were addressed that Legal Aid offices are currently confronted with.  

Chair Morgan recognized Celeste Harris to give comments regarding the conference.  Ms. Harris stated that the conference was worthwhile for her as a member of the Board and was honored for that opportunity.

Mr. Hausen reported that there is no expected increase in funding from LSC in 2009, however, and announcement is possible in March 2009 increasing funds in early 2009 as well as for fiscal year 2010.   He further reported that discussions are underway to remove some Legal Aid program restrictions. 

Committee Reports

Finance Committee Report

Chair Morgan recognized Celeste Harris to give the Finance Committee reported.  Ms. Harris reported that the committee met to discuss the proposed 2009 budget.  She asked Chris Marks, Assistant Executive Director in charge of Finance and Administration, to give the detail regarding the budget.  Mr. Marks reported that LANC sought a $200,000 increase from IOLTA for 2009, which is reflected in the proposed budget.  Mr. Marks reported that the IOLTA Board notified LANC that there will be no increase in IOLTA funds for the upcoming year.  Therefore, the proposed budget for 2009 found on page 8 in the board book showing the $200,000 added to that line item for 2009 will be reduced to the same funding as 2008 in the amount of $230,000 to reflect no increase in 2009. 

Mr. Marks stated other grants reflected in the budget, such as  VOCA, VAWA, Z Smith Reynolds, State DV, United Way, and miscellaneous grants totaling $1,100,000 are grants that during the course of the year may or may not remain in the budget as they are based on renewal each year.  

Mr. Marks further explained that LANC is facing financial restraints for the upcoming year possibly resulting in a salary and hiring freeze.  He stated that other options are a reduction of staff and work hours, a requirement that  offices close one day a month from March to December, training and travel budget decreases, and providing no retirement contribution to its employees accounts. All options are to provide additional funding for operational purposes.  Following discussion, it was moved, duly seconded and
UNANIMOUSLY RESOLVED to approve the proposed budget as presented with the appropriate adjustment in the IOLTA line item.
 

Resource Development Committee Report

Chair Morgan recognized Paul Shepard, Chair of the Resource Development Committee, to give that committee’s report.  He reported that the committee met by telephone conference call and discussed the process for hiring a development director.  He stated that this position is necessary to help increase funding to LANC. 

 

Nominating Committee Report
George Hausen reported that there are currently two attorney member vacancies.  John Bowers representing the 14th Judicial District Bar and Glenn Barfield appointed by the NC Bar Association.  New appointments will be recommended by both organizations.  He further noted that the vice-chair  position is vacant and an appointment is also forthcoming. 

Cal Adams, appointed by the NC Association of Defense Attorneys,  is currently serving his  2nd term and a new appointment will be required.  Mr. Hausen reported that the following attorney members are eligible for re-election after having completed their 1st term:  Lisa Morgan, NC Association of Black Lawyers, Ray Owens, NC State Bar; and Paul Shepard, 21st Judicial District Bar.  Jim Talley, representing IOLTA, is completing a one-year term, requiring an appointment for that position. 

Mr. Hausen reported that the following client members are eligible for re-election after having completed their 1st term of service:  Helen Cook, Southeast Region; Phillip Leigh, Statewide Clients Council; and Diana Williams-Cotton, Triad Region.

Client Affairs Committee Report
Chair Morgan recognized Mary Flowers, chair of the Client Affairs Committee to give the committee report.  She reported that the procedurals manual is expected to be completed by March 2009.  A uniform policy for an active advisory counsel from each field office will assist in keeping the counsel connected.  The client’s council recognized Celia Pistolis, Tonya Pruitt-Lyons, Paula Spence, Chris Marks, Dock Kornegay and George Hausen for their service to the council. 
 

Operations/Personnel Committee Report

Chair Lisa Morgan, Chair of the Operations Personnel Committee, gave the committee report along with Celia Pistolis, LANC’s Assistant Executive Director for Advocacy and Compliance.  Chair Morgan asked the Board to review the local advisory council reports from Pittsboro and Boone offices found on page 37 – 39 of the board book. 
 
A revision of the Family Medical Leave Act Policy, FMLA, revised to provide more leave benefits to military families.  This amendment to the law will go into effect on January 9, 2009.  LANC must revise its personnel policy so that its Family Medical Leave Policy is in compliance with these amendments to the Act.  The revised policy is in the board book on page 35 and expands our FMLA policy to provide additional leave for military families.  Following discussion, it was moved, duly seconded and UNANIMOUSLY RESOLVED, to adopt the FMLA policy, as presented.
 

Each year, LANC must report and certify to LSC that the program is in compliance with Regulation 1610 relating to program integrity, which requires LANC to maintain its autonomy from any other organization that engages in restricted activity  such as handling class action and lobbying.  The program integrity report also certifies that LANC has  maintained autonomy and prohibit the use of  any resources from any other entity and organization, physically and financially.  The committee reviewed the staff’s report and recommended approval to authorize the Chair to sign and send the report of Certification of Program Integrity  to LSC.  The reports is found on pages 9 – 10 in the board book.   Following discussion, it was moved, duly seconded, and UNANIMOUSLY RESOLVED to authorize the submittal of the report of Program Integrity Certification to LSC, as presented.
 
LSC requires the Board to review the  Eligibility/Assets Policy every three years.  The Eligibility Policy was last reviewed in 2005 and made some amendments to that policy .  A separate assets policy was adopted in 2007.  In addition to that change, the policy expands the section on retainers to require staff to accurately spell out the legal services to be provided to a client and clearly requires staff to modify the retainer as needed.  The committee reviewed the proposed policy and recommended that this policy be consolidated into one document. The consolidated policy is found on page 17 – 24  of the board book.   Following discussion, it was moved, UNANINIMOUSLY RESOLVED to accept the recommendation of the committee and to adopt the consolidated policy, as presented.
 
An annual review of program priorities for 2008 was reviewed by the committee as part of the program priority process.  The Operations/Personnel Committee undertook a thorough review of the LANC priorities, over the course of the last year.  The committee reviewed the priorities developed by other legal services programs in the state and also solicited input from legal services task forces, LANC managing attorneys and practice group chairs.  The committee recommended that the priorities found on page 25 through 34 in the board book  be adopted. 

Ms. Pistolis noted changes in the following areas:   family – custody case priority was changed regarding child custody, employment, consumer rights eliminated the priority for effective goods and services which involves cases with unfair and deception trade practices.  It was inadvertently deleted illegal dept collection and this should be added in the consumer rights section.  Tax issues (low income tax clinic in the eastern part of the state to run) handle controversies with low income tax with the IRS.  Eliminated environmental and disaster projects – folding those in.  Added two new priorities:  immigration and human trafficking.  The priorities were written broadly, but are very specific and some of the work is restrictive.  The committee reviewed the priorities with great diligence.    Following discussion, it was moved, duly seconded and UNANIMOUSLY RESOLVED to accept the 2008 priorities, as presented.

Mr. Hausen gave a brief report regarding the Retirement Plan.  He acknowledged that LANC would change its current  trustees moving from Frontier Trust Company to CDM Retirement Consultants, Inc. effective January 1, 2009.  A Resolution was given to the Board, as a handout, laying out the recommendation presented by Mr. Hausen, requesting Board approval. Following discussion, it was moved, duly seconded and UNANIMOUSLY RESOLVED to approve the Resolution, as presented.
 

Adjournment

Pending no further business, Chair Morgan adjourned the meeting at 4:45 p.m.
 
Respectfully submitted,


Phillip Leigh
Secretary

 


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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.

 

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