At its December meeting, the Vestry

1) approved the recommendation of the Social Ministry Committee for disbursement from the Discretionary Outreach line item of $750 to El Centro Latino for relief for Hurricane Katrina victims located in Orange County;

2) accepted and approved the concept paper of the Special Giving Committee;

3) adopted the 2006 Budget, including the pay plan;

4) accepted with gratitude the gift of $3000 from the estate of Janet Meegan; and

5) learned that the Johnson Intern Program has secured a grant of $30,000 ($10,000 per year for the next three years) from a local foundation.

DRAFT MINUTES OF A MEETING IN EXECUTIVE SESSION
OF THE VESTRY OF THE CHAPEL OF THE CROSS

15 December 2005

The Vestry met in executive session in the parish library on Thursday, December 15, 2005, to discuss the proposed pay plan of the 2006 budget. Vestry members present were Jim Crow (Sr. Warden), Steve Lackey (Jr. Warden), Bunnie Collura, George Evans, Joe Khoury, Jack Scarborough, Chris Bowes, Mary Schoenfeld, Terry Eason, Ann Henley, Chip Hill, and Melody Savage. Also present were John McGee (Treasurer) and Nancy Kelly (Clerk).

The Sr. Warden presided at the meeting.

Attached is the Working 2006 Pay Plan. Mr. Crow asked Mr. McGee to lead the discussion.

Mr. McGee began by saying that the Personnel Committee urged the Finance Committee to be as generous as possible with the clergy and staff, who are the heart of the parish. He explained that the larger percentage increase for the Rector is the second part of a two-year plan to bring his salary in line with parishes of comparable size.

In response to a question, it was explained that the clergy housing allowances are declared individually by clergy members, within federal tax guidelines.

Mr. Evans asked how the salaries for the lay staff compare to those at other churches in the area. Mrs. Bowes replied that she does not have that information but that raises in recent years have been based on what the budget can bear. Mr. Evans responded by saying that he would like to see a comparison study carried out every few years.

Mrs. Schoenfeld asked where the position of the Hospitality Manager is in the pay plan. Mr. McGee will research this omission.

Mr. Eason asked where the accountant services show up in the budget, to which Mr. McGee said that this is now a line item.

It was moved by the Finance Committee, seconded by Mr. Crow, and passed unanimously, that the Vestry approve the proposed pay plan and recommend that a comparison study be conducted of staff salaries in the area.

The executive session concluded at 6:50 p.m., and the Vestry moved to the remainder of the business agenda.

Attachment
- - - Working 2006 Pay Plan

The December meeting of the Vestry was held in the parish library on Thursday, December 15, 2005. Vestry members present were Jim Crow (Sr. Warden), Steve Lackey (Jr. Warden), Bunnie Collura, George Evans, Joe Khoury, Jack Scarborough, Chris Bowes, Mary Schoenfeld, Terry Eason, Ann Henley, Chip Hill, and Melody Savage. Also present were Stephen Elkins-Williams (Rector), John McGee (Treasurer), and Nancy Kelly (Clerk).

At the conclusion of an executive session of the Vestry to discuss the proposed pay plan for 2006, the Rector presided and opened the meeting at 6:55 p.m.

Bible Study

Mr. Hill led the Bible study for the evening. The Gospel reading appointed for the day was Matthew 25: 1-13. Mr. Hill concluded the Bible study with a prayer.

Selection of Timekeeper

Ms Savage was asked to serve as timekeeper.

PARISH CONCERNS

Mrs. Schoenfeld referred to the Vestry a concern of a parishioner about shaking hands during the peace during flu season.

Mr. Eason said that the Next Step Committee is getting a lot of questions from parishioners about how large the parish is willing to grow and about how soon we’ll be getting into a feasibility study.

Mrs. Bowes reiterated the concern of the Pre-school about having notification well in advance of a need for re-location during any renovation and construction.

There were no corrections made to the minutes of the focus session of November 17.

The following correction was made to the minutes of the Vestry meeting of November 17:

p. 6, third paragraph under Buildings and Grounds Committee, change “have secured a preliminary lighting bid from Todd Dickinson,” to “ have secured a preliminary lighting bid from King Electric and associated cost estimate from Todd Dickinson,”

It was moved by Mrs. Collura, seconded by Dr. Khoury, and passed unanimously, that the Vestry approve the minutes of the focus session of November 17 and approve the minutes of the Vestry meeting of November 17 as amended.

The tasks of Mr. Elkins-Williams and Mr. Crow are to be removed from the list. The other items are to remain on the addendum, pending completion.

The following item was placed on the Consent Agenda (attached):

-the recommendation of the Social Ministry Committee for disbursement from the Discretionary Outreach line item of $750 to El Centro Latino for relief for Hurricane Katrina victims located in Orange County

It was moved by Mrs. Collura, seconded by Mrs. Bowes, and passed unanimously, that the Vestry approve the Consent Agenda.

Referring to item 3 of his report, the Rector asked the Vestry to accept the gift from the estate of Janet Meegan.

It was moved by Mr. Scarborough, seconded by Mr. Crow, and passed unanimously, that the Vestry accept with gratitude the gift of $3000 from the estate of Janet Meegan and allocate it in the amount of $300 as a tithe to outreach, $900 to the Outreach Endowment, $900 to the Buildings and Grounds Endowment, and $900 to Undesignated Bequests and Gifts.

Mr. Elkins-Williams, referring to item 7 of the report, indicated that he has registered for the CEEP conference in February, and he asked if others have already done so. Ms Henley, Mrs. Schoenfeld, and Mr. McGee are already registered. Mr. Eason, Mr. Crow, and Mr. Lackey indicated that they are considering going. Mr. Elkins-Williams said that David Frazelle, Bill Joyner and Barbara Day are also registered.

Senior Warden
The Sr. Warden’s report is attached.

Mr. Crow reported that the Johnson Intern Program is doing well, and he cited the $10,000 grant that it has secured for the next three years.

Attached also is the Executive Summary: Program Review Committee, Interim Report from June 2005. Following discussion, it was decided that Mr. Crow, Ms Savage, and Mr. Eason will bring a recommendation to the Vestry in January.

Junior Warden
The Jr. Warden’s report is attached.

Mr. Lackey asked Mrs. Collura to report on her progress in exploring grant fundraising for a capital campaign. Mrs. Collura said that this initiative is in the initial stages. She said that there is more likely to be success in this area in seeking program support rather than in support for buildings.

Attached is the updated 2006 pledge report.

Parish Administrator
The Parish Administrator’s report is attached.

Mrs. Hastings said that today’s luncheon for volunteers was a wonderful event.

The next parish pictorial directory will have a scheduled delivery date of May 1.

Also attached is the 2006 Vestry election schedule.

Treasurer
Attached are the Treasurer’s Narrative Report for November 2005 and the Combined Balance Sheet as of November 30, 2005.

Mr. McGee began by saying that he is hopeful that the 2005 budget will come in on target.

Mr. McGee began a discussion on special giving (memo attached), stating that the parish needs to emphasize planned giving. The memo outlines a basic way to structure parish funds in three general areas – category endowments, general funds, and named endowments. If the Vestry endorses this concept of special giving as a reasonable way to structure the funds, then the committee will create more specific policies and make recommendations to the Vestry.

Mr. Evans suggested that some portion of income from endowments should be reinvested to help to grow the endowments. Mr. McGee responded that this is what we do with the funds that we have invested in the Diocesan Fund. Mr. Elkins-Williams agreed that this is a policy that should definitely be articulated.

Ms Savage asked if the three categories are typical of those of other parishes with endowments. Mr. Elkins-Williams replied that Syd Alexander did some research on the matter, to which Mr. McGee added that the categories are very basic categories. Mr. Crow suggested that the wording or the naming of the categories needs to be done very carefully so as to avoid confusion among parishioners. Dr. Khoury added that parishioners need to be educated about what giving is and what it encompasses, not only the categories, but also levels of giving.

Mr. Elkins-Williams summarized the discussion by saying that there appears to be agreement with the special giving concept presented but that there are some concerns about coordination with other giving opportunities within the parish and with communication with parishioners.

It was moved by Mr. Crow, seconded by Mr. Scarborough, and passed unanimously, that the Vestry accept and approve the concept paper of the Special Giving Committee.

Finance Committee
The report of the Finance Committee is attached. Also attached is the proposed 2006 Budget.

Mr. McGee began discussion of the proposed 2006 Budget by saying that the Finance Committee is attempting to reduce the practice of transfers from other funds as a way to balance the budget.

Mr. McGee then summarized the increases in the various areas – a 30% increase in Work Outside the Parish, a 16% increase in Parish Program, a 4.1% increase in Staff, a 26% increase in Physical Plant, with Program Support remaining fairly level.

Of the requests that were unable to be met, $6000 came from Work Outside the Parish, $4750 from the area of Parish Program, and $1000 from Physical Plant. Ms Henley asked if all committees that made requests receive a final report on the decisions of the Vestry on their requests, to which Mr. Elkins-Williams replied that they do, from the budget subcommittee chairs through whom they forwarded their requests to the Finance Committee

It was moved by Mr. Eason, seconded by Mrs. Bowes, and passed unanimously, that the Vestry adopt the proposed 2006 Budget as presented and amended by the above discussion.

Following the passing of the budget, Mr. Evans commented that it is remarkable that the Vestry has been able to pass the budget in December the past two years, while adding programs. This success needs to be communicated to the parish.

Mr. Evans suggested that the renovations in the chapel need some visibility in the parish. Mr. McGee said that he will prepare a recommendation for the January meeting as to how to present this to the parish.

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

Mr. Evans reported that the issue of recommended work on the trees has been referred to the Finance Committee.

Mr. Evans reported that the tree service has also recommended that a lightning rod be put in the tall tree near Franklin Street. The committee has decided not to proceed with this at the present time, because of budget constraints, but it will keep the item on its agenda for future consideration.

Mrs. Savage suggested that recurring expenses should be itemized in the Buildings and Grounds budget. Mr. Evans agreed that this can and should be done.

Mr. Evans said that the committee is asking for suggestions for ways to improve the dining room in the interim before renovations are done.

Mr. Crow asked if there is anything to be gained by getting the church registered as a historic building. Mr. Eason replied that it is probably not advantageous for an active parish, although the Chapel of the Cross would certainly qualify for historic status. Mr. Evans added that historic status might put limitations on the buildings.

Hospitality Committee
Mrs. Schoenfeld reported that the revised form for newcomers is in draft form and contains a checklist of ways for parishioners to indicate that they would like to be involved in the parish.

The next newcomers’ dinner will be on January 30.

Announcements

The following focus sessions were determined:

-January –Special Giving Committee (Syd Alexander)
-February – Next Step Committee
-March- Centering Prayer (David Frazelle)

Dr. Khoury commended Mrs. Hastings on the wonderful job she does of managing the office with the available resources. Mrs. Hastings said that she will pass this compliment on to the staff.

The Rector offered a prayer and the meeting adjourned at 9:20 p.m.

LIST OF ATTACHMENTS

(Attachments are available in the library for review.)

Mr. Evans, Wardens, and Rector – Continue study of issue of clarification of Buildings and Grounds Committee membership and structure.

Buildings and Grounds Committee – Check with Hartman-Cox before proceeding to replace maple trees.

Budget Subcommittee Chairs – Inform those who made budget requests of results of budget decisions.

Mr. Crow, Mr. Eason, Mrs. Savage – Bring to Vestry in January recommendation about Program Review Committee report.