At its meeting on February 28, the vestry:

• Heard concerns about the process for change in the bylaws that took place at the Annual Meeting
• Asked the Finance Committee to develop various financial scenarios for addressing the shortfall in the 2008 budget before the vestry must make some difficult financial decisions
• Learned that the church’s insurance for sexual harassment and for embezzlement has been increased
• Learned that the Capital Campaign will begin on September 14
• Approved the expenditure of up to $13,000 for five interior renderings of spaces, $27,000 for civil engineering, $3000 for borings, and $5000 for landscape renderings
• Approved the nomination of Teddy Lovejoy-Henkel to the Social Ministry Committee
• Approved the recommendations of the Social Ministry Committee for disbursement of $1000 from Discretionary Outreach Funds to Operation Storehouse, Stop Hunger Now; and of $3000 from the Social Ministry Fund to Alamance Orange Prison Ministry Peace Center.

Following a bag supper, the Vestry met in focus session in the parish library to experience Godly Play. Vestry members present were Melody Savage (Sr. Warden), Ann Henley (Jr. Warden), Terry Eason, Clare Baum, Gail Cloud, Sandra McClaskey, David Dill, Ele Ross, and Jimmy Satterwhite. Also present were Vicky Jamieson-Drake (Associate for Pastoral Ministry), Gretchen Jordan (Christian Formation Director), Kesslyn Tench (Church School teacher), and Nancy Kelly (Clerk).

Ms Savage opened the executive session at 6:30 p.m. and then turned the floor over to Mrs. Jordan and Ms Tench.

Ms Tench began by stating that the purpose for the evening is to provide the Vestry with an opportunity to engage in a Bible story. The Vestry then moved upstairs to room 30 for the remainder of the focus session.

Mrs. Jordan served as the doorkeeper, greeting each individual warmly and inviting them to enter the room, thus setting the tone for Godly Play. When all were settled in the room, seated in a semi-circle, Ms Tench began to tell the story of Abraham and Sarah, of Isaac and Rebekah, using a sand box to represent the desert and figures to represent the main characters in the story.

After the conclusion of the story, Ms Tench explained that the story is usually followed by age-appropriate activities, including re-telling of the story, an art project, or opportunity for time in the quiet corner. These activities are then followed by a feast, a communal activity in which the food is blessed before they all partake of it.

Ms Tench said that Godly Play provides a unique approach to religious education, giving children time, security, and permission to learn about the family of God. It is used at the Chapel of the Cross in the K-1 curriculum. Older children are also involved in Godly Play and have provided positive feedback. Another advantage of Godly Play is that it gives the storytellers a sense of worship and spiritual growth. As an added bonus, it is cost effective. Once the materials are purchased, they can be used over and over. Many of the materials have been created by parishioners.

Mr. Eason commented that in churches with which he has worked in designing space for Godly Play, the facility needs are quite simple, but it is preferable to have dedicated space.

Ms Savage suggested that Godly Play be done again at a focus session in the fall, when the new Vestry members can benefit from it.

The focus session concluded at 7:15 p.m., and the Vestry moved to the more formal part of the agenda.

The February meeting of the Vestry was held in the parish library on Thursday, February 28, 2008. Vestry members present were Melody Savage (Sr. Warden), Ann Henley (Jr. Warden), Terry Eason, Chip Hill, Clare Baum, Gail Cloud, Larry Logan, Sandra McClaskey, David Dill, Ele Ross, and Jimmy Satterwhite.. Also present were Vicky Jamieson-Drake (Associate for Pastoral Ministry), John Koch (Director of Stewardship and Development), Mary Anne Handy (Parish Administrator), Gary Monroe (Treasurer), and Nancy Kelly (Clerk).

In the absence of the Rector, the Sr. Warden presided and opened the business meeting at 7:15 p.m.

Bible Study

The Bible study for the evening took place during the informal focus session, in which the Vestry experienced Godly Play.

Timekeeper

Mrs. McClaskey volunteered to serve as timekeeper.

PARISH CONCERNS

Ms Savage relayed some concerns about security in the parish buildings, the result of several recent incidents. Two individuals have been trespassed from the church property, junior choir children have been approached by a stranger in the playground area, and one individual has made some aggressive phone calls to parish staff.

Mr. Eason asked if these incidents have been communicated to the police to see if other churches are experiencing such problems, and Mrs. Handy replied that the staff has instead communicated directly with the other churches on Franklin Street. A silent buzzer has been installed in the parish office, and there is also in place a system of phone codes to alert other staff members that help is needed. In addition, renewed effort will be made to keep the cloister door is locked during the day. Mr. Logan suggested that the Yates door and the dining room door be locked during the day as well. Mr. Satterwhite asked how much it would cost to make the door by the parish office handicap accessible, and Ms Baum said that it would cost about $1500. Mr. Hill asked about the impact of having a handicapped door (referring to the exterior door to the dining room) locked, and Mr. Eason said that it can be locked from the outside only.

Ms Savage reported that there has been concern expressed about the process for change in the bylaws that took place at the recent Annual Meeting. A letter from parishioner Phil Rees is attached. It was the consensus of the Vestry that any changes in the bylaws should be made available to parishioners in print at least two weeks in advance of the Annual Meeting and that the agenda should allot sufficient time for discussion.

Mr. Eason suggested that an additional change to the bylaws be considered, that if fewer than eight candidates indicate their intention to run for Vestry, a Vestry nominating committee complete the slate to eight nominees. Ms Savage will work with Mr. Eason and Mr. Logan on a resolution of how to deal with this issue.

Ms. Savage asked that Vestry members not share with parishioners such details as how individual Vestry members voted on an issue or what they said, as any such discussion with a parishioner would lack the context in which it originally took place.She continuted, although Vestry meetings are open to anyone, relaying information out of the larger context might serve as a deterrent to frank, earnest, and open discussion.

Mrs. Jamieson-Drake said that some parishioners have expressed concern about shaking hands at The Peace during the flu season. She will put a notice in Crossings suggesting a “hands free” passing of the peace during flu season.

There were no corrections made to the minutes of the Annual Meeting of February 3, to the focus session of January 17, nor to the minutes of the Vestry meeting of January 17.

It was moved by Mr. Satterwhite, seconded by Mr. Logan, and passed unanimously, that the Vestry approve the minutes of the Annual Meeting of February 3, the focus session of January 17, and the minutes of the Vestry meeting of January 17.

Ms Savage’s task to sign as guarantor for the proposed ECOTA rental lease has been completed. The other two items are to remain on the addendum, pending completion.

Referring to the task of the Buildings and Grounds Committee, Ms Baum commented that the Facilities Director is learning the sound system.

Referring to the task regarding notification of employees of the 0% salary increase, Ms Cloud said that there should be greater explanation made. Ms Savage will write an apology to staff that this was not done and provide an explanation for the lack of salary increases.

The following items were placed on the Consent Agenda (attached, along with Social Ministry Committee recommendation form and tracking forms):

-nomination of Teddy Lovejoy-Henkel to the Social Ministry Committee

-recommendation of the Social Ministry Committee for disbursement of $1000 from Discretionary Outreach Funds to Operation Storehouse, Stop Hunger Now

-recommendation of the Social Ministry Committee for disbursement of $3000 from the Social Ministry Fund to Alamance Orange Prison Ministry Peace Center Fund

It was moved by Mr. Logan, seconded by Mr. Satterwhite, and passed unanimously that the Vestry approve the Consent Agenda.

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

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

Ms Henley commented that there is great need to foster awareness of stewardship as a spiritual process as well as a financial discipline.

Parish Administrator
Referring to item 1 of the report, Mrs. Handy asked to what line item the purchase of additional parking coupons/tokens should be charged. She said that there are still available tokens for the municipal parking garage but that parishioners are asking for coupons for the Morehead lot. It was suggested that the remaining municipal lot tokens should be used before additional coupons are purchased. It was then suggested that Mrs. Handy attempt to cash in the municipal lot tokens and that she check to see from which line item the coupons and tokens were paid last year.

Mrs. Handy called attention to item 3 of the report. The annual luncheon with Bishop Curry will be held at the Carolina Inn this year.

Item 4 of the report, a minor fire resulting from a faulty electrical outlet, highlights the need to bring the parish buildings up to code. In addition, Mrs. Jamieson-Drake will write an announcement for Crossings with instructions on how to remove plugs to avoid such problems.

Treasurer
Attached is the Treasurer’s Narrative Report for February 2008 and the Combined Balance Sheets as of January 31, 2008.

Mr. Monroe summarized his report by stating that the financial health of the parish rests on an increase in pledge units or a decrease in expenses.

Finance Committee
The report of the Finance Committee (COTA Budget Options) is attached.

Mr. Hill outlined the difficult decisions that the Finance Committee and the Vestry will have to confront in the near future. Some options for cutting expenditures in order to avoid a significant year-end deficit are outlined in the report. He suggested that perhaps a subcommittee of the Vestry should determine priorities.

Ms Henley said that the Finance Committee should be the body to develop various financial scenarios based on the big picture, with the Vestry then making the difficult decisions.

Ms Savage reminded the Vestry that the April focus session is a review of the budget, and she suggested that this discussion be made a greater part of the meeting agenda.

Mr. Monroe added that the 2008 budget is overly optimistic on revenues, both pledges and plate offerings.

Mrs. Jamieson-Drake suggested that a letter be sent to parishioners to explain the shortfall in the budget and the difficult financial decisions that will need to be made. Mr. Monroe responded by saying that much of the problem is the issue of the decline in pledge units.

Ms Cloud observed that this is a problem common to large churches, in which there are many who worship but do not contribute to the financial well-being of the church and, because of the size of the church, are afforded anonymity.

Mr. Dill asked for a few minutes to present some observations that he has made and to make a proposal. Attached is a memo prepared by Mr. Dill to illustrate his concerns: Special Funds Summary as of December 31, 2007.

Referring to the first column of figures in the attached document, he said that the beginning of year principal represents accrued income from previous years. The last column illustrates that the parish currently has on about $100,000 in unexpended income in restricted accounts. He commented that it is the fiduciary responsibility of the Vestry not only to ensure the principal but also to expend the money as the donors intended. He added that it is a rule of business to expend restricted funds before unrestricted funds, which is the opposite of the traditional practices of the Chapel of the Cross. He would like for the Finance Committee and the Treasurer to look at the possibility of expending available restricted funds as appropriate and to determine how much could be expended legitimately from these funds.

Personnel Committee
Attached are the Chapel of the Cross Personnel Policies and Procedures.

Mr. Logan addressed the concern about Gretchen Jordan’s sabbatical and the extra hours that Boykin Bell will be working during that time. It has been determined that it is not required that Mrs. Bell be entered into the pension system.

Referring to the attached document on personnel policies, Mr. Logan stated that this includes all changes made by the Vestry at its November meeting. He explained that staff can carry over 2½ weeks or 100 hours of vacation time from year to year.

Mr. Logan notified the Vestry that the church’s insurance for sexual harassment has been increased to $2,000,000,an increase of 100%.

Master Plan/Capital Campaign

Ms Savage welcomed Margaret Conrad, Co-chair of the Capital Campaign Committee, to the meeting.

The memo on 2008 Sources and Uses and the report of the Master Plan Steering Committee are attached.

Mrs. Conrad reported that steady progress is being made and that the committee has received about $4,500,000 in outright and planned gifts. The committee is asking for full Vestry support and has been contacting members of the Vestry and hopes to have Vestry pledges in by March 12. The general campaign will begin on September 14.

Vestry members are invited to the full cabinet meetings of the Capital Campaign Committee on April 23 and September 3.

The committee reminds the Vestry that it is important that parishioners know that the campaign was inspired and driven by program needs, both spiritual and outreach.

Mrs. Conrad also emphasized that the Annual Giving Campaign and the Capital Campaign are meant to complement each other.

Discussion turned to the practical issues of structure and expenditure of funds. Mrs. Conrad said that the committee suggests that it present to the Vestry a budget for a specified period of time and, with Vestry approval of the structure, John McGee (Treasurer of the Capital Campaign Committee), Reid Conrad (Co-chair of the Capital Campaign Committee), and Barney Varner (Sr. Associate Treasurer) have the authority to sign off on expenditures. This structure would create a better flow, without having the Vestry involved in every individual expenditure.

Mr. Hill said that the Finance Committee would like for the committee to make quarterly requests for anticipated expenditures.

Mr. Logan suggested that some categories need to be itemized, and he cited specifically the areas of travel and miscellaneous.

The Treasurer has suggested an annual budget with quarterly forecasts of anticipated expenses.

It was moved by Mr. Logan and seconded by Mr. Dill that Treasurer Gary Monroe be ultimately responsible for approval of all expenditures associated with the Capital Campaign, within the structure decided upon by the Vestry.

Mr. Hill said that the Vestry is responsible for the initial budget. Mr. Eason added that when entering into contracts, approval by someone knowledgeable about the work should approve payment of the invoices to avoid payment for incomplete or unsatisfactory work before invoices are paid.

Mr. Monroe suggested that Mr. McGee be asked to submit a process to the Vestry for approval.

Ms Savage suggested an amendment to the motion and, following discussion, the motion was changed to a recommendation that Mr. Monroe and Mr. McGee will draft a plan for Vestry approval for handling of Capital Campaign funds.

The report of the Master Plan Steering Committee is attached.

Mr. Eason, Chair of the Master Plan Steering Committee, stated that regardless of the scope of any future building plans, the work proposed in this report must be completed in order to be in compliance with the Town of Chapel Hill building codes. .

It was moved by Mr. Eason, seconded by Mr. Logan, and passed unanimously, that the Vestry approve the expenditure of up to $13,000 for five interior renderings of spaces, of $27,000 for civil engineering, of $3000 for borings, and of $5000 for landscape renderings.

Global Mission Committee

The report of the Global Mission Committee is attached.

Ms Henley reported that sixteen individuals will travel in mission to San Patricio in May. Ms Henley and Margy Will will be departing on Saturday for Guatemala and returning on Wednesday. The purpose of the trip is to meet with the Bishop to plan and prepare for the May mission trip.

Hospitality Ministry

The report of the Hospitality Ministry is attached.

Social Ministry Committee

The report of the Social Ministry Committee is attached.

Mrs. Jamieson-Drake offered a prayer and the meeting adjourned at 9:00 p.m.

LIST OF ATTACHMENTS

(Attachments are available in the library for review.)

Ms Savage and Mr. Hill - Notify employees of 0% salary increase, communicate to parish the hope for reinstatement of recommended salary increases following April review, and thank those responsible for monitoring expenses in 2007. Done

Ms Savage, Mr. Logan, Mr. Eason - Work on proposal to ensure Vestry slate of eight nominees.

Ms Savage - Write an apology to staff for failure to receive official notification of 0% salary increase, and include an explanation for the lack of salary increases. Done

Mrs. Handy - Try to cash in remaining municipal lot tokens.

Mrs. Handy - Check to see from which line item parking coupons/tokens were purchased last year.