Meeting Minutes - LANC Board of Directors
March 27, 2009
Site/Location: Wyndham-Raleigh/Durham,
Research Triangle Park,
NC
Call to Order and
Welcome
Chair Lisa Morgan called the meeting to order at 10:35 a.m.
and welcomed all in attendance.
Members Present
|
Reid C. Adams
|
Celeste
Harris
|
Paul Shepard
|
|
Thomas Berkau
|
Shirley Jones
|
Ellen Sheppard
|
|
Helen Cook
|
Nellie Kearney
|
Mary Ann
Tally
|
|
Sue Perry
Cole
|
Phillip Leigh
|
Kyle Woosley
|
|
Mary Flowers
|
Lisa Morgan
|
Diana
Williams-Cotton
|
|
Sharon Greig
|
Ray Owens
|
|
Members Absent With Prior Notification
|
Glenn Barfield
|
Samuel
Johnson
|
Jim Talley
|
|
Lee Crouch
|
Dellarene
Myers
|
Alice Tejada
|
|
Gregg
McDougal
|
Kris Shepard
|
John Wester
|
Approval of Minutes
Following review and discussion of the Board of
Directors general business meeting minutes of December 12, 2008, a
motion was made, duly seconded, and the minutes were
UNANIMOUSLY APPROVED,
as written.
Chairman’s Report
Chair Morgan discussed the economy and its impact on the legal
services community, leading to more difficulties for our clients as
legal services programs face a decrease in funding and an increase
in services. Chair Morgan
recognized George Hausen for his sound judgment and leadership
and the LANC staff for being fiscally responsible during these
difficult times. She thanked
the North Carolina Bar Association for its continued support and for
a recent $100,000 one-time unrestricted gift. She also thanked
Burton Craige for his generous gift of $100,000 to assist with loan
forgiveness for UNC Law School alumni.
President’s Report
Executive Director George Hausen updated the Board
on how LANC is responding to the economic downturn. Specifically,
LANC has restructured the centralized intake call center and
withheld the 2008 staff retirement contribution of approximately
$500,000. These changes have increased cash flow, resulting in staff
retention and helping to maintain the delivery of services to
clients. Also, he added
his appreciation for the NCBA‘s generous $100,000 donation
and the respective donations
of $ 100,000 from Burton
Craige, Cliff Britt, and the Womble Justice Fund,
earmarked for loan forgiveness assistance. Also, Mr. Hausen reported
that the NC Bar Foundation has raised $860,000 in donations to its
LANC Endowment Fund.
Mr. Hausen reported that work plans have been completed and are
being reviewed. He
stated that there is a focus on how to serve the growing client
need, particularly in the areas of foreclosure, veteran benefits,
prisoner re-entry, and indigent defense services.
Pro bono work has increased and that law firms are requiring
their young attorneys and partners to do pro bono work with Legal
Aid. Mr. Hausen added that the NC Housing Finance Agency will
compensate LANC $125.00 per hour for prep work on foreclosure issues
before litigation. LANC
anticipates hiring an attorney to provide this service.
LSC funding will increase by 10%, approximately $800,000 to LANC for
the 2009 fiscal year and he intends to apply this amount to the LANC
reserve account which represents one month’s operating expenses of
$1.6 million.
Also, North Carolina
will receive $29 million from the American Recovery and Reinvestment
Plan, but the distribution of these funds has not been finalized.
There are plans for HUD projects to assist the homeless and
neighborhood stabilization.
LANC will explore partnering with the NC Community
Development Initiative on closings for rehabilitated homes.
LANC recently conducted a national search for a development director
and hired Janeen Gingrich, who has 15 years of non-profit experience
with grant-writing and fundraising.
IOLTA
Evelyn Pursley, IOLTA’s
Executive Director reported that IOLTA is showing drastic decreases
in income and that is of some concern because IOLTA provides12% of
the LANC budget. In many
states, Legal Aid programs are laying off staff due to the decline
of IOLTA funding.
NC Bar Association
Michelle
Cofield,
NCBA’s Director of Pro Bono Activities, reported that the NCBA
hosted a very successful 4ALL event with call centers located in
Asheville, Charlotte, Greenville, Raleigh and
Wilmington.
She stated that approximately 6,500 calls were received, and
that the NCBA will host the 4ALL event again next year.
Legislative Update
George Hausen reported the state legislature’s
activities.
Clients Council Report
Mary Flowers, Chair of the Clients Council,
reported that the LANC Clients Council had met and discussed LANC
agenda items, their work plan, and the stimulus package.
The Council continues to work on a policy and procedures
manual.
Committee Reports
Nominations Committee
Sue Perry Cole, Chair of the
Nominating & Board Development Committee reported that the committee
met, discussed vacancies and reappointments to the LANC Board.
Ms. Cole reported that a nominee will be recommended by the
14th Judicial District and the North Carolina Association
of Defense Attorneys at the June 2009 Board meeting to fill the seat
vacated by John Bowers, who recently resigned, and
Cal Adams who will complete his second year term in
June. The committee
recommends the re-nomination of attorney members Lisa Morgan, Ray Owens,
and Paul Shepard, who are
all eligible for a second term. She
further reported that a nominee to fill the one-year IOLTA seat will
be recommended at the June meeting.
The following client board members
Helen Cook, Phillip Leigh,
and Diana Williams-Cotton
are eligible for reappointment subsequent to the completion of the
screening process.
Following discussion it was moved, duly seconded and
UNANIMOUSLY RESOLVED
to accept the recommendations of the Nominating Committee.
Another motion was made, duly seconded and
UNANIMOUSLY RESOLVED
that future nominees from the LANC
Clients Council be screened prior to the submission of those names
for approval by the full board.
Operations and Personnel Committee
At the request of the Chair, Celia Pistolis reported that
the Committee reviewed the 2009 LSC Eligibility Guidelines,
revisions to the LANC personnel policies and the Annual Reports from
Local Advisory Councils. The Annual Reports require no action.
The Committee unanimously recommended that the
LANC Board approve the attached Legal Aid of North Carolina 2009
Income Eligibility Guidelines found on Page 14 of the Board
Notebook. Following
discussion, it was moved, duly seconded, and
UNANIMOUSLY APPROVED,
to accept the 2009 income eligibility guidelines, as recommended.
The Committee unanimously recommended that the LANC Board approve
revisions to the LANC Personnel Policies regarding hours of work,
found on page 15 and leaves/absences found on page 16 through 17 of
the Board Book.
Following discussion, it was moved, duly seconded, and
UNANIMOUSLY APPROVED,
to approve the revised personnel policies clarifying the status of
permanent and temporary employees.
Resource Development Report
Paul Shepard, Chair of the Resource
Development committee reported that the committee has discussed the
Access to Justice Campaign, the hiring of the development director,
and the gift from the North Carolina Bar Foundation.
Strategic Planning Committee
George Hausen reported
that the Strategic Planning Committee is in the process of being
re-assembled and will be meeting in June under the direction of
Cal Adams.
Finance Committee Report
Celeste Harris, Chair of the
Finance Committee reported that the budget had been approved at the
December meeting. Chris
Marks offered an update to the approved budget in December.
Mr. Marks reported that a hiring freeze was implemented in
late August to deal with the decline in revenue.
After looking at options to assist in the decline in revenue,
LANC management decided not to fund the retirement contribution to
eligible staff which gave more cash flow to start the 2009 fiscal
year. Presently, LANC is
maintaining its hiring freeze and 9 or 10 attorney positions remain
vacant across the state. Building Improvements are being delayed
until additional capital is obtained.
The goal for 2009 is to maintain one month’s worth of working
capital and maintain the hiring freeze.
Ms. Harris stated that the committee recommends that the Board
approve the retention of Romeo Wiggins to perform the annual audit
for LANC. Following
discussion, it was moved, duly seconded and
UNANAMIOUSLY RESOLVED
to accept the recommendation.
The Board reviewed the letter from AON Consulting regarding changes
to the State Children’s Health Insurance Program found on page 25 of
the Board Book and the accompanying a resolution requiring the
adoption of the Second Amendment to the Pre-Tax Premium Plan
sponsored by LANC. The
amendment can be found of page 27 of the Board Book.
Following discussion, it was moved and duly seconded to
UNANAMIOUSLY RESOLVED
to adopt the Resolution, as presented.
Following no new business, the meeting was adjourned at 12:40
p.m.
_______________________________________
Phillip Leigh,
Secretary
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