At its December meeting, the Vestry:
1) officially welcomed David Frazelle to the parish;
2) adopted the 2005 staff compensation plan;
3) adopted the clergy housing allowance for David Frazelle for December 2004:
4) adopted the 2005 clergy housing allowances;
5) authorized the Parish Administrator to contract with North Carolina Professional Accounting Services for parish bookkeeping and accounting services, in an amount consistent with the Parish Accountant line item in the budget;
6) accepted with gratitude the undesignated gift of $2800 from the estate of Marty Ensign;
7) accepted with gratitude the gift of $5000 from the estate of Annie Lee Jones for the purpose of improving the interior rooms of the parish buildings;
8) accepted with gratitude the designated gift of 1000 shares of Wachovia stock, given by A. C. Elkins in memory of Shirley Elkins, the specific designation of the gift to be determined;
9) approved the 2005 budget and, while indicating the need for additional pledges, acknowledged the generosity of the parish in enabling a budget featuring increases in staff pay and parish programs and a decrease in the need for transfers to balance the budget;
10) gratefully acknowledged the generous gift of new Vietri dishes from Frances Gravely;
11) learned that the winner of the Carolina Inn gingerbread house competition was a model of the chapel; and
12) learned that Peter Gomes will preach at a service of solemn evensong on Pentecost Sunday, May 15.

None held.

The December meeting of the Vestry was held in the parish library on Thursday, December 16, 2004. Vestry members present were Dick Taylor (Sr. Warden), Paul Carew (Jr. Warden), Jean DeSaix, Kevin Trapani, Bunnie Collura, George Evans, Joe Khoury, Jack Scarborough, Chris Bowes, Jim Crow, Steve Lackey, and Mary Schoenfeld. Also present were Stephen Elkins-Williams (Rector), David Frazelle (Associate for Parish Ministry), Martha Hart (Deacon), Barbara Hastings (Parish Administrator), John McGee (Treasurer), Barney Varner (Sr. Associate Treasurer), and Nancy Kelly (Clerk).

At the conclusion of an executive session of the Vestry to discuss the proposed pay plan for 2005, the Rector presided and opened the meeting at 7:10 p.m.. He began the meeting by officially welcoming Mr. Frazelle to the parish and to the Vestry meeting.

Devotions
Mrs. Collura led the devotions for the evening, offering prayers for the church and the parish from an old book of prayers that she had recently found.

Selection of Timekeeper
Mr. Lackey volunteered to serve as timekeeper.

PARISH CONCERNS

Mr. Lackey, who is serving as Vestry liaison to the Episcopal Church of the Advocate, reported that he has met with Terry Millner and Joe Fisher of ECOTA and learned that progress is being made in that parish, but that it is not yet self-sufficient and independent. There are 34 pledging units, and about 75 people attend Sunday services. The main concern being addressed by that parish is finding a permanent place to hold services.

Mr. Trapani reported on his offer at the November Vestry meeting to frame the flag that was flown over Afghanistan and the accompanying certificate that were presented to the parish. Since the flag is very large, he suggested a triangular fold frame, with the certificate framed separately to be displayed below it. Mrs. DeSaix asked where the flag and certificate will be displayed, and Mr. Elkins-Williams suggested that the matter be referred to the Buildings and Grounds Committee.

There were no corrections made to the minutes of the focus session of November 18, nor to the minutes of the business session of November 18.

It was moved by Mr. Carew, seconded by Mr. Trapani, and passed unanimously, that the Vestry approve the minutes of the focus session of November 18 and of the business session of November 18.

The first two items of the addendum have been completed. The third item, the request for monthly updates on progress in securing gifts for the organ project, is ongoing and will therefore remain on the addendum.

There was no Consent Agenda.

Rector
The Rector’s report is attached.

Mr. Elkins-Williams expressed thanks to the Khourys for hosting the Vestry Christmas party.

Attached is the report of the Johnson Intern Program. Mr. Trapani informed the Vestry that the Board of Directors is in transition, and he asked the Vestry to forward the names of any parishioner with fund-raising experience who might be interested in serving on this board.

Referring to item 3 of his report, Mr. Taylor indicated that he will write a thank-you letter to Frances Gravely for her generous donation of dishes.

It was moved by Mrs. Schoenfeld, seconded by Mr. Evans, and passed unanimously, that the Vestry gratefully acknowledge the generous gift of new dishes from Frances Gravely and asked that Mr. Taylor write a letter to express thanks for this gift.

Associate for Parish Ministry
Mr. Frazelle began by saying that he is glad to be here at the Chapel of the Cross. He is beginning the long process of building relationships with parishioners and parish leaders and of learning about the various program areas of the parish.

Mr. Frazelle has accepted his first committee assignment. He will serve on the Program Review Committee, chaired by Rob Sullivan.

Deacon (Martha Hart)
Mrs. Hart noted that the Social Ministry Committee will be pleased about the 2005 budget.

In addition to her continuing community involvement, Mrs. Hart has begun a monthly service at The Cedars Health Center at Meadowmont.

Mrs. Hart mentioned that the Chapel of the Cross is the featured congregation in the current IFC newsletter. She added that the winner of the Carolina Inn gingerbread house competition is a replica of the chapel.

Mrs. Hart will nominate Fran Finney for the Pauli Murray Award.

Senior Warden
Attached is the Sr. Warden’s report. Also attached are copies of a letter to the Vestry from parishioners Jack and Betsy Pringle and a letter of response from Mr. Taylor and Mr. Elkins-Williams.

Mr. Taylor reported that Ted Vaden and the Next Steps Committee have contacted interested architects to provide some suggestions for building possibilities.

Junior Warden
Attached is the Jr. Warden’s report.

Mr. Carew asked Mr. Varner to provide the Vestry with an update on the Annual Giving Campaign. Mr. Varner replied that to date 475 pledges have been received, for a total amount pledged of $984,480. There are still about 115 pledges outstanding, and the Vestry was asked to take a packet of reminder calls to make, preferably by Sunday evening.

Parish Administrator
The report of the Parish Administrator is attached.

Mrs. Hastings told the Vestry that she has not yet but will soon forward to the Vestry the schedule for the 2005 Vestry elections.

The direct deposit system needs to be tested before being put into general use. She asked Vestry members who would be willing to do so, to give her a voided $5 check or to call Debby Kulik.

On Monday, the administrative staff will host a thank-you luncheon for parish administrative volunteers.

Mrs. Hastings commended those who carried out the recent thorough cleaning of the dining room and kitchen.

Mrs. Hastings asked for suggestions for upcoming focus sessions. Mr. Lackey suggested a meeting with members of the Episcopal Church of the Advocate. He will ask them if they can come for the focus session in January. Other suggestions for future focus sessions are the work of the Altar Guild, the music program, the Turchi report, and Annual Convention.

Treasurer
Attached are the Treasurer’s Narrative Report for November and the Combined Balance Sheet as of November 30.

Mr. McGee reported that the 2004 budget is on track. Mr. Trapani expressed congratulations to everyone involved in controlling expenditures to keep within the budget.

The parish has received an undesignated gift from the estate of Marty Ensign. These funds will be placed in Undesignated Bequests and Gifts.

It was moved by Mr. Taylor, seconded by Mr. Carew, and passed unanimously, that the Vestry accept with gratitude the gift of $2800 from the estate of Marty Ensign.

The parish has received a gift from the estate of Annie Lee Jones to be used to improve the interior rooms of the parish buildings. These funds will be placed in the Designated Bequests and Gifts line item.

It was moved by Mr. Taylor, seconded by Mrs. Collura, and passed unanimously, that the Vestry accept with gratitude the gift of $5000 from the estate of Annie Lee Jones for the purpose of improving the interior rooms of the parish buildings.

The parish has received 1000 shares of Wachovia stock from A. C. Elkins in memory of Shirley Elkins, his wife and the mother of Betsy Elkins-Williams. These funds will be placed in the Designated Bequests and Gifts line item, pending a specific designation for the funds. Mr. Elkins has suggested that the funds be used to plant and maintain a rose garden, and the feasibility of this suggestion is being studied.

It was moved by Mr. Taylor, seconded by Mr. Carew, and passed unanimously, that the Vestry accept with gratitude the designated gift of 1000 shares of Wachovia stock, given by A. C. Elkins in memory of Shirley Elkins, the specific designation of the gift to be determined.

Mr. Elkins-Williams said that gifts to the parish for 2004 must be received in the church office or postmarked by December 31, 2004. Reminders of this legal issue have been publicized in Crossings.

Mr. Varner informed the Vestry that the parish has received a gift of stock, worth about $1500-1600, from an unknown donor. Notices have been placed in Crossings and in Cross Roads to try to determine the donor.

Finance Committee
Attached are the 2005 draft budget and the report of the Finance Committee.

Mr. Scarborough reported that the Finance Committee met this evening and recommends adoption of the 2005 budget. Mr. Taylor expressed pleasure at the support from the parish for enabling a budget featuring increases in staff pay and parish programs and a decrease in the need for transfers of funds to balance the budget. Mr. Trapani added that he has said many times during the past year that the parish does not have an expense problem but rather a revenue problem, and the parish has stepped up in response to the challenge. For this he expressed thanks to the parish and to the Vestry leadership. Mr. Carew added that much praise is due Ann Henley.

Mr. Carew said that parishioners need to understand what parish programs the 2005 budget was unable to fund at the requested level, as well as what the increased budget has enabled to be funded.

Mr. Lackey said that he would like to see money in the budget designated for youth missions. Mr. Taylor responded that the increase in funds in the Youth Ministry line item was meant to be for that purpose.

Mr. Trapani commented that those generating the budget requests were very responsible in making their requests.

Mr. Taylor spoke of working towards funding for the future by growing the parish’s endowments at the same time as funding the present needs of the parish.

It was moved by Mr. Scarborough, seconded by Mr. Taylor, and passed unanimously, that the Vestry approve the 2005 draft budget.

The approval of the budget was followed by enthusiastic applause.

Mr. Elkins-Williams reminded the Vestry that it is customary for the Vestry to communicate with each staff member about compensation for the coming year and to communicate as well with program chairs. The chairs of the budget subcommittees will communicate with the program chairs under their subcommittee. Mrs. Hastings will communicate salary information to the clergy and staff. Mr. Taylor will draft a letter for Crossings and Cross Roads to inform the parish of what has and hasn’t been able to be funded in the 2005 operating budget, and he will indicate that additional pledges are still needed.

Referring to the last page of the budget document is a projection for 2005-2008, Mr. Taylor expressed thanks to Chris FitzSimons for his work in drafting this projection.

Buildings and Grounds Committee
The report of the Buildings and Grounds Committee is attached.

Referring to item 1 of the report, Mr. Evans reported that great progress is being made on the specifications for the appearance of the chapel organ case so that its design will be in harmony with the chapel.

Referring to item 5 of the report, Mr. Evans said that the committee is considering alternate locations for the proposed rose garden, to be funded by the memorial gift from Mr. Elkins.

Personnel Committee
Vestry action was requested on the pay plan (p. 4 of the 2005 draft budget attached) discussed in executive session this evening.

It was moved by Mr. Trapani, seconded by Mr. Carew, and passed unanimously, that the Vestry adopt the 2005 staff compensation plan, as proposed.

Attached are the resolutions for housing allowances submitted by the clergy for 2005 and a resolution for the proposed clergy housing allowance for Mr. Frazelle for December 2004. The IRS allows ordained clergy to claim a certain percentage of salary as a housing allowance, which is not taxed. The clergy must be able to document by year-end that these are actual expenses. The housing allowance includes utilities, but it can’t exceed the fair rental value of the property. The matter is between the clergy member and the IRS, and the parish assumes no liability, although the parish must be informed of the amounts of the elections.

It was moved by Mr. Trapani, seconded by Mr. Lackey, and passed unanimously, that the Vestry adopt the clergy housing allowance for Mr. Frazelle for December 2004.

It was moved by Mr. Trapani, seconded by Mrs. DeSaix, and passed unanimously, that the Vestry adopt the 2005 clergy housing allowance resolutions as presented.

Attached is a draft proposal for a contract with North Carolina Professional Accounting Services for parish bookkeeping and accounting services.

It was moved by Mr. Trapani, seconded by Mr. Lackey, and passed unanimously, that the Vestry authorize the Parish Administrator to contract with North Carolina Professional Accounting Services for parish bookkeeping and accounting services, in an amount consistent with the Parish Accountant line item in the budget.

Hospitality Committee
Mrs. Schoenfeld reported that the committee sent invitations to newcomers to the reception in the dining room between services of Lessons and Carols as well as to the weekly gathering for fellowship and food after the 11:15 a.m. service.

Mrs. Schoenfeld asked who is responsible for the Hospitality line item in the budget. Mr. Lackey replied that his wife Liska, chair of Loaves and Fishes, is responsible for this line item, which is used to provide lemonade and coffee on Sundays, the Shrove Tuesday event, summer breakfasts, etc.

Mr. Elkins-Williams informed the Vestry that Joe Ferrell will nominate him for Diocesan Council.

Mr. Taylor suggested that Bishop Marble be invited to be a guest preacher.

Mr. Elkins-Williams announced that Peter Gomes will be the speaker at UNC graduation in May and that he has accepted an invitation to preach that Pentecost Sunday evening at a service of solemn evensong at the Chapel of the Cross.

Mr. Elkins-Williams said that the parish is working on securing speakers to facilitate conversations about the Windsor Report.

The Rector offered a prayer and the meeting adjourned at 8:40 p.m..

LIST OF ATTACHMENTS

(Attachments are available in the library for review.)

Mr. Elkins-Williams – Ask Robert Wright to provide Vestry with monthly updates on progress in securing gifts for organ project.

Buildings and Grounds Committee – Suggest place to display flag and certificate.

Budget Subcommittee Chairs – Communicate budget information to relevant program chairs.

Mrs. Hastings – Communicate salary information to clergy and staff.

Mr. Taylor – Draft letter for Crossings and Cross Roads to communicate budget information to parish.

Mr. Taylor – Write thank-you letter to Frances Gravely for donation of dishes to parish.