At its February meeting, the Vestry

1) approved the request of the Social Ministry Committee for disbursementof $1000 in discretionary outreach funds to El Hogar Ministries;

2) endorsed Hugh Tilson as a candidate for ordination as a permanent deacon;

3) approved the nomination of Reid Conrad as Assistant Treasurer and Treasurer-Designate, with Mr. Conrad to assume the full responsibilities of Treasurer following a suitable period of orientation; and

4) approved the 2005 Parochial Report.

Following a bag supper, the Vestry met in focus session with the Next Step Committee. Vestry members present were Jim Crow (Sr. Warden), Steve Lackey (Jr. Warden), Bunnie Collura, George Evans, Jack Scarborough, Chris Bowes, Mary Schoenfeld, Terry Eason, Ann Henley, Chip Hill, and Melody Savage. Also present were Stephen Elkins-Williams (Rector), Bill Joyner (Deacon), Barbara Hastings (Parish Administrator), John McGee (Treasurer), and Nancy Kelly (Clerk). Next Step Committee members present were Ted Vaden (Chair), Paul Carew, Martha Dill, Linda Rimer, Barbara Schütz, and Rob Sullivan.

Mr. Elkins-Williams opened the focus session at 6:10 p.m. by welcoming the members of the Next Step Committee.

Attached is the final revision of the Executive Summary of the Interim Report of the Program Review Committee.

Mr. Vaden began by giving the Vestry an update on the work of the Next Step Committee, which has met three times since it last met with the Vestry. Its work has centered on working to refine the design plans to determine which one will best meet the program needs of the parish for the next twenty-five years. The committee has wrestled with the issue of renovation of existing space or demolition and new construction, in an effort to determine what would best serve the needs of the parish. The conclusion reached by the committee is that entirely new construction is preferable. The rationale for the decision is that the space would be larger and better designed, with better circulation and better use of space, and there would be no cost differential.

Once the decision was made, one of the committee members resigned from the committee, not because of dissatisfaction with the process but because she felt that committee members should be committed to the decision for new construction, and she does not personally feel that commitment.

Once the committee had made the decision in favor of new construction, it considered two plans. One plan would align the fellowship hall on the same axis as the current fellowship areas, facing the Morehead Planetarium. The other would have the fellowship hall perpendicular to the current fellowship areas but on the same axis as the church and the chapel, facing Franklin Street, and it was determined that this alignment would provide the best use of interior space.

Mr. Vaden said that it is important for parishioners to understand the concept of planning facilities around program. For this reason, the committee, under the able leadership of Martha Dill and Barbara Schütz, had posters created that visually depict this concept. Mrs. Dill then gave the Vestry an overview of the information provided by the posters. In addition to an summary poster outlining the program needs, there is a poster for each of the key program needs as determined by the Program Review Committee: Fellowship and Hospitality, Education and Christian Formation, Social Ministry and Outreach to the University, Social Ministry and Outreach to the Community, and Support for Clergy, Staff, and Lay Volunteers for Carrying on the Mission of the Church. There is also a poster showing the exterior elevations of the new construction.

Mr. Vaden added that the construction would be carried out in phases for two reasons, funding and operational issues. If a capital campaign raises sufficient funds for the entire project, the phases would follow one immediately after the other. The fellowship hall is the first priority. Once it has been completed, it can be used for many purposes while the Battle Building and the Yates Wing are demolished and new construction is completed in that area of the property.

Mr. Vaden announced that on Sunday, March 5, there will be an afternoon session of small group discussions with parishioners and members of the Next Step Committee.

Mr. Crow asked what kind of input the committee is seeking, and Mr. Vaden replied that any input is welcome.

Mr. Eason then spoke about the design plan. Mr. Eason said that the strongest part of the design was a desire for a principal, broad hallway connecting the church to the chapel to the fellowship hall, to provide a strong circulation axis. The courtyard will be a little larger, and the parlor will have a nice view of the courtyard. An outdoor play area is planned for the side of the fellowship hall next to the Morehead Planetarium. Space for garbage also needs to be considered.

Mrs. Schütz said that it is important to note that the architect was working with minimal space for expansion. Mr. Sullivan added that, in order to make the best use of the space that we have, we need to demolish the current buildings in order to excavate to provide more space. Mr. Crow said that this information definitely needs to be communicated to the parish.

Mr. Carew noted that some parishioners have been concerned about demolition and the loss of fixtures such as the old fireplace. He suggested that some of the sentimentally valuable fixtures in our current buildings could be removed and reinstalled in the new construction.

Mr. Eason said that he has suggested that the architect add some large classrooms on the upper level of the fellowship hall. The only concern about this is that of not making the roof line too high. Mr. Sullivan said that it is his understanding that the architect plans to add four more classrooms into this space in his next draft.

Mr. Lackey said that phasing of the construction would require permission of the University for access to the construction site on the Spencer Dorm side of the building. Mr. McGee has had some preliminary discussions with UNC about this and he foresees no problems. Mr. Elkins-Williams asked about issues with the town, and Mr. Eason replied that we will need special-use zoning permits, which may take up to a year to secure.

Mr. Crow commended the committee for its careful analysis of the issues and its data-driven conclusion.

Mr. Vaden said that the committee has already received some intensive input from some members of the parish, this in spite of having already met with the parish three times and having published the minutes of its meetings on the web site.

Mr. Elkins-Williams asked if there has been any discussion about the reduction in the number of parking spaces that will happen as a result of the additional space. Mr. Vaden replied that the committee has concluded that the parish needs to accept this as a necessary consequence and go on to identify other options for parking.

Mr. Hill observed that there is the perception among some parishioners that, since only one plan is being presented, the decision has already been made to proceed.

Mrs. Schütz added that another consideration addressed by the committee is that of increasing the security of the church buildings.

Mr. Elkins-Williams thanked the members of the Next Step Committee for meeting with the Vestry.

The focus session concluded at 7:10 p.m., and the Vestry moved to the more formal part of the agenda.

Attachment
- - - Final Draft of Executive Summary of Interim Report of Program Review Committee, June 5, 2005

The February meeting of the Vestry was held in the parish library on Thursday, February 16, 2006. Vestry members present were Jim Crow (Sr. Warden), Steve Lackey (Jr. Warden), Bunnie Collura, George Evans, Joe Khoury (for part of the meeting), Jack Scarborough, Chris Bowes, Mary Schoenfeld, Terry Eason, Ann Henley, Chip Hill, and Melody Savage. Also present were Stephen Elkins-Williams (Rector), Bill Joyner (Deacon), Barbara Hastings (Parish Administrator), John McGee (Treasurer), and Nancy Kelly (Clerk).

The Rector presided and opened the business meeting at 7:15 p.m.

Bible Study

Mr. Crow led the Bible study for the evening, beginning with a prayer. The Gospel reading appointed for the day was John 10: 19-30. Mr. Crow concluded the Bible study with a prayer.

Selection of Timekeeper

Mr. Joyner was asked to serve as timekeeper.

PARISH CONCERNS

Mr. Joyner relayed the concern of some parishioners that the photographers for the pictorial directory are exerting a bit of unwelcome pressure for purchasing additional photographs.

The following correction was made to the minutes of the Vestry meeting of January 19:

p. 3, second paragraph under Global Missions Committee, change “for the allocation of $10,500 to the committee” to “for the allocation of $10,500 for global missions.”

It was moved by Mrs. Collura, seconded by Mrs. Schoenfeld, and passed unanimously, that the Vestry approve the minutes of the Vestry meeting of January 19.

All items are to remain on the addendum, pending completion.

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

-request of the Social Ministry Committee for disbursement of $1000 in discretionary outreach funds to El Hogar Ministries (SMC tracking form attached).

It was moved by the Social Ministry Committee and passed unanimously that the Vestry approve the Consent Agenda.

Referring to item 1 of the report, letters of invitation sent to parishioners to serve on the Capital Giving Committee, Mr. Elkins-Williams said that since responses have not yet been received, a list of committee members will not be available until the March meeting.

Mr. Elkins-Williams cited the good newspaper coverage of the installation of the chapel organ. Last week there was an article in the Chapel Hill News, and this morning there were two color photos on the front page of the Chapel Hill Herald.

Mr. Joyner reported on his activities. He recently had the honor of addressing Annual Convention. He is teaching “smells, bells, and chanting” at the Deacons School. Last weekend he was one of the adult chaperones on the Youth Inquirers pilgrimage to Washington. Among other activities, the group distributed to the homeless the scarves, hats, and gloves from the Jesse tree.

Mr. Joyner announced that the annual Crop Walk will be held on Palm Sunday, April 9.

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

Mr. Crow gave an update on item 1 of his report, the Johnson Intern Program. To date, there have been 35 inquiries and 4 very good applications have been submitted.

Mr. Crow told the Vestry that he has received a letter from Virginia Theological Seminary in thanks for the financial support of the parish. He will forward this to the parish office.

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

Mr. McGee provided an update on the 2006 budget, saying that as of earlier this week the pledge total was $1,206,000. Mr. Lackey said that there are still some pledging units that pledged last year but have yet to do so this year and that follow-up contacts are still being made. Mr. Scarborough asked what comments people are making in these follow-up contacts. Mr. Lackey replied that some have indicated that they intend to submit a pledge right away, others say that they thought they had already done so, and still others indicate that their circumstances have changed and they are still trying to figure out at what level they can pledge.

Parish Administrator
The Parish Administrator’s report is attached.

Mrs. Hastings called attention to the 2005 Parochial Report. She noted that the healthy financial picture will probably result in a larger Diocesan Share for 2006. There was an impressive increase in membership, from 1545 in 2004 to 1633 in 2005. A question was raised about lines 15-16 on p. 2. Mrs. Hastings will check to determine if the figures for baptisms are accurate before sending in the report.

It was moved by Mr. Eason, seconded by Mr. Scarborough, and passed unanimously, that the Vestry approve the 2005 Parochial Report, with any errors to be corrected.

Treasurer
Attached are the Treasurer’s Narrative Report for January 2006 and the draft Combined Balance Sheet as of January 31, 2006.

Mr. McGee said that it has been his pleasure to serve as Treasurer since 2003 but his new responsibilities as Treasurer of the Diocese of North Carolina necessitate that he step down and that a successor be named. Reid Conrad has been nominated as Assistant
Treasurer and Treasurer-Designate and is recommended to succeed Mr. McGee as Treasurer after an orientation period of a reasonable amount of time, to be determined by Mr. McGee and Mr. Conrad. Mr. Conrad is well-qualified and willing to serve in this capacity.

Mr. Elkins-Williams reminded the Vestry that the standard practice for the office of Treasurer is that an Assistant Treasurer is elected Treasurer-Designate for a period of one year before becoming Treasurer, but that this is a unique circumstance, given Mr. McGee’s new responsibilities in the diocese.

It was moved by Mr. Crow, seconded by Mr. Evans, and passed unanimously, that the Vestry accept the recommendation of Treasurer John McGee that Reid Conrad be named Assistant Treasurer and Treasurer-Designate and that, following a suitable period of orientation to be determined by Mr. McGee and Mr. Conrad, Mr. Conrad assume the full responsibilities of Treasurer.

Mr. McGee will inform Mr. Conrad of his election.

Mr. McGee reported that the 2005 budget shows a small surplus. It was very positive news that no funds were transferred from Undesignated Bequests and Gifts, as had been budgeted.

The Special Giving Committee is having discussions on how to improve response to the endowment funds. The committee will come to the Vestry in March with specific recommendations.

Finance Committee
The report of the Finance Committee is attached.

Mr. Scarborough, referring to the work of the Special Giving Committee, reiterated that the Finance Committee expressed concern that the endowments policies not be overly restrictive.

Mr. McGee commented that the 6.65% return on the investments in the Diocesan Fund is an indication that it is a well-managed fund.

Referring to the debt associated with the chapel organ, Mr. Elkins-Williams said that he is still soliciting funds for this project.

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

Mr. Evans reported that one problem with the water is that the hot water seems to run out frequently in the kitchen. The cause has not yet been determined.

The electrical work in the chapel is proceeding more slowly than anticipated. It is expected that the first Sunday service back in the chapel will be held on March 19. Mr. Elkins-Williams commented that it was a wonderful sight to see more than twenty-five parishioners of all ages show up last week to help unload the pieces of the organ.

Conversation with Hugh Tilson

Hugh Tilson, candidate for ordination as a permanent deacon, arrived for his third and final interview with and request for endorsement by the Vestry. If he is endorsed this evening, completes his coursework, and is approved by the Commission on Ministry and by Bishop Curry, he will be ordained on June 3, at which time this parish will present him with the gift of a red stole.

Mr. Elkins-Williams asked Mr. Tilson to fill the Vestry in on his progress in the process of seeking ordination. Mr. Tilson began by saying that this past year has been an amazing learning experience. He said also that he has come to a true appreciation of the Anglican tradition in terms of its tolerance of various viewpoints. He concluded by saying that his ordination will be bittersweet in that it will mean that he will most likely have to leave the Chapel of the Cross, which he considers a remarkable place and which he will continue to consider his home parish.

Following Mr. Tilson’s departure from the meeting, the document of endorsement of Mr. Tilson’s candidacy was passed around for Vestry members to sign.

Hospitality Committee

The report of the Hospitality Committee is attached.

Mrs. Schoenfeld reported on the great enthusiasm at the recent dinner for newcomers. It has been suggested that these dinners continue to be held every three months. Ms Savage asked about the demographics of the individuals who attend, to which Mrs. Schoenfeld replied that there is a good mix, from young couples to retirees. Mr. Elkins-Williams said that in general it is more difficult for younger couples to attend, because of babysitting considerations. Mr. Eason suggested that perhaps once a year a dinner for newcomers could be hosted at the church, with babysitting provided.

Global Missions Committee

The report of the Global Missions Committee is attached. Also attached is a flyer created to raise funds for the El Hogar mission trip.

The Rector offered a prayer and the meeting adjourned at 8:45 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.

Mr. McGee – Inform Reid Conrad of his election as Treasurer-Designate, to become Treasurer after orientation period.