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Executive Council Minutes

July 17, 2012

Wilsey Conference Center A/B, Grace Cathedral

The meeting was called to order at 4:32 PM by Lauran Pifke, Chair of Executive Council (EC). The opening prayer was offered by David Frangquist.

I. Attendance:

Executive Council Members Present: The Rt. Rev. Marc Handley Andrus, President of EC; Ade Adekunle; Matthew Burt; Joe Jennings; Jay Luther; Christopher Martin, Vice Chair of EC; Donald Mulliken; Richard Patenaude, Brenda Paulin, Secretary of EC; Lauran Pifke, Chair of EC; Sylvia Vasquez; Leslie Watson; Earl Clinton Williams; Mary-Jane Wood; Gabriella Strand Bruce.

Conference Call: None.

Bishop’s Appointees: Merry Chan Ong; Clay Jones; Mauricio Wilson; Don White.

Ex-Officio Members: Mary Vargas, Standing Committee Co-Representative; AnnaMarie Hoos, Standing Committee Co- Representative; Bob McCaskill, Treasurer of the Diocese; David Frangquist, Secretary of Convention; Christopher Hayes, Chancellor of the Diocese.

Diocesan House Staff: Michael Barlowe, Canon to the Ordinary; Tom Ferguson, CFO.

Absent: Dana Corsello, David Boone, Bronwen Howes, Gary Hunt, Don White.

II. Approval of the Consent Agenda as included with the July meeting packet (page 2).

A. Meeting Agenda

  1. Remove St. Luke’s Assessment Appeal update
  2. Add Nominations Committee report by Mauricio Wilson

B. Minutes of June 19, 2012 with following modifications:

1. Under IV. B. Old Business: Financial Statements on the third line:

Change $400,000 to $40,000/ month

2. Under IX. Old Business: St. Dorothy’s Land Purchase

Correction- Christopher Hayes reported that this was a very

complicated transaction. SDR has previously drawn down

$80,000 and expects to draw $820,000 by close of escrow for

a total of $900,000. Escrow has been extended to June 28,

2012.

III. Governance Discussion: Christopher Martin.

  1. There was continued discussion from the June meeting of a policy book and positive reaction to move forward to creating such a book.
  2. EC members moved into groups of 5 to discuss 4 draft statements.
  3. Feedback received from each group was reported to the Governance sub-committee.
  4. Group norms will be considered in this process and reflected in the proposed policy book.

IV. Audit Committee: Don White reported on the following: (documents attached and filed with the minutes).

  1. The committee met with the Hood& Strong LLP auditors to review reports and findings.
  2. The auditors issued an unqualified opinion and there were no issues, concerns or adjustments found.
  3. Transition to a new accounting firm went smoothly. The Diocesan House staff is to be complemented.
  4. The prior year’s recommendations have been resolved and implemented.
  5. Two current year recommendations:
  1. There needs to be better reconciliation and documentation of expense reports. The staff has agreed to comply in maintaining higher documentation standards.
  2. Consider replacing BAMPAY application with a more robust invoicing and benefit billing system. The access database remains a useful tool for tracking benefits information on 2500 current and former employees.

F. There are no real questions regarding financial statements.

Tom will take questions at the next EC meeting in Don’s absence should there be additional questions.

Bob McCaskill will distribute a summary of the full audit report next month and recommended council members pay particular attention to footnotes in the Financial Statement about the diocese’s financial situation.

It was Motioned, Seconded and Approved to accept the report as submitted.

V. Assessment Appeals: (St. Giles’s report attached to the minutes).

There were only two appeals applied for this year:

  1. St. Giles, Moraga started making $200/mo. Payments in March. They are current with this year’s assessment.
  2. St. Augustine’s, Oakland will be requesting assessment appeal.
  3. St. Luke’s choose not to appeal this year. The re-negotiation of

The lease on the school will put them in a better financial

position.

VI. Finance Committee / Budget Presentation: Bob McCaskill reported on the following: (Financial reports attached and filed with the Minutes).

A. June income Statement YTD:

The assessment income receipts are close to budget through 6/30

The year-to-date expenses are below budget which is typical for this time of year.

B. Aging Report:

Other than Ohloff, There are no significant delinquencies. There are no parishes over 60 days delinquent in payroll and benefits.

C. Union Bank:

There are no significant changes from the prior month.

D. Working Draft 2013 Budget for Deanery Presentations: (Budget attached and filed with the minutes).

The draft narrative is prepared and is being reviewed. The budget will be sent to the Deaneries far in advance of the August/ September meetings and before the next EC meeting.

Be sure and read the footnotes for better understanding. Comments should be sent to Gary Hunt.

VII. Metrics Task Force: Leslie Watson and Mary Vargas (Final Metrics report attached and filed with the minutes):

Reception from the deaneries was overwhelming during the Deanery presentations. The Task Force recommended to EC the process and details in the final report. The Bishop supports and thanked the team for their efforts.

The Task Force recommendation was Motioned, Seconded and Approved.

VIII. Bishop’s Time:

A. General Convention:

Bishop Marc commented that this was the best of the four Conventions he has attended. Significant progress was made compared to previous conventions. The following highlights were mentioned.

1. General Convention approved the $111,516,032 budget based on the five Marks of Mission:

To proclaim the Good News of the Kingdom

To teach, baptize, and nurture new believers

To respond to human need by loving service

To Seek to transform unjust structures of society

To strive to safeguard the integrity of creation and sustain and renew the life of the earth. The mission of the Church is the Mission of Christ.

2. Declined to take a position on the Anglican Covenant

3. Supported a resolution on positive investment in the Palestinian territories.

4. Canon Michael Barlowe was elected from Province VIII to the Executive Council of the Episcopal Church. This was a great recognition of Michael’s gifts.

5. Passed an environment and climate change resolution co-sponsored by the Bishop.

6. Affirmed rights of transgender people’s access to the ordination process.

B. Bishop Marc acknowledged the excellent work of the California Deputation: Many people from Diocal made the effort to attend the Convention in Indianapolis and all played pivotal roles.

Clergy Deputies: Vanessa Glass, David Ota, Stacey Grossman, Michael Barlowe;

Clergy Alternates- Richard Helmer, Paul Fromberg, Sylvia Vasquez, Vicki Gray;

Lay Deputies: Warren Wong, Sarah Lawton, Carolyn Gaines, Rod Dugliss;

Lay Alternates: Kay Bishop, Scott Pomerenk, Alan Aw, Patricia Smith.

Others present from our diocese were Sheila Andrus, Joanna Henricks, Mark Richardson, Dianne Smith.

C. St. James, Oakland:

  1. The situation at St. James is tumultuous. The bishop has written letters to the congregation on various topics. He had consulted with lawyers & Law officials before sending the letters.
  2. The Congregation is moving forward beautifully.
  3. The Patronal feast of St. James will take place on Sunday. Members of EC are encouraged to attend to show support for the parish.

D. Open Positions Approved by EC:

  1. Development Function: Interviews are being conducted and a decision is close. There are two finalists.
  2. Communications Function: Interviews will be held this week. There are limiting factors in getting the best person.

E. St. Luke’s Hospital:

Bishop Marc has spent an emotional time trying to keep the hospital from closing. If the hospital closes, folks with limited means may have to be transported longer distances to other hospitals which is a tremendous burden on the poor. The Bishop would appreciate prayers.

F. The Bishops residence:

Bishop Marc and family will move to a rented house about four blocks from their current house during the renovation.

G. Upcoming schedule:

  1. Next week, the Bishop will serve as chaplain at the Transplant camp at St. Dorothy’s Rest with 37 children, ages 8-18, who have gone through transplants at Stanford children’s hospital.
  2. In August he will be on vacation in France and in September he will be working on a book.

H. Christopher Hayes recognized and complemented the Bishop’s efforts by his signing on to the effort to support ongoing same- sex marriage proceedings.

IX. Old Business:

EC approved specialized mission status for Sacred Space (canon 12.05). Lauran read a letter of thanks from Sacred Space for the $256 donation by EC members last month.

X. New Business:

A. Standing Committee Report: Mary Vargas

The standing committee requested temporary housing of up to $15,000 to cover expenses during the Bishop’s temporary re-location for up to five months. The question was raised about the source of the funds. An allowance in 2012 budget will cover this.

It was motioned, seconded and approved.

B. Church growth initiative: Joe Jennings

  1. Joe estimated that it would take 4-6 weeks to form a committee.
  2. The Bishop commented that new Development staff would help congregations understand win-win scenario by giving and funding larger diocesan programs. If parishes can articulate their needs, the diocese will help with funding through the Church Growth Initiative fundraising efforts.
  3. Lauran Pike stated that this is an EC effort and EC has to support the effort and lead by example by supporting an event.

C. Committee on Nominations: Mauricio Wilson

Mauricio asked the EC to appoint a member to work on a sub- committee that is developing a Skills Registry. Mary-Jane Wood was appointed.

D. Announcements:

Brenda Paulin announced a men’s cook-off at St. Augustine’s on September 22nd. Men volunteers are needed to bring a favorite cooked food. Tickets are $25.00.

XII. Closing prayer and adjournment:

Ade Adekunle offered the closing prayer and the meeting was adjourned at 6:30 PM.

Many thanks to Ade Adekunle for Brenda Paulin

Taking the notes of the meeting Secretary of

In the absence of Mary Louise Executive Council

Gotthold, Recording Secretary

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