Meeting Minutes - LANC Board of Directors
December 12, 2003
Site/Location: Durham Wyndham Garden, Durham, NC
Call to Order and Welcome
Jim Maxwell, Chair of the Board of Directors, called the meeting to order at
11:12 a.m. and welcomed all in attendance.
|Reid C. Adams
||Frank G. Queen
|Leo L. Allison
||Hada V. Haulsee
||Robert E. Riddle
||John H. Vernon, III
||Scott B. Lewis
||Charles “CR” Ward
Members Absent With Prior Notification:
||L. Lynnette Fuller-Andrews
||Raymond E. Owens, Jr.
|Richard E. Fay
||G. Gray Wilson
Administrative Office Staff:
George R. Hausen, Jr., President
Mary Hedgepeth, LANC Clients Council Coordinator
Bernetta Johnsson, Finance Director
Dock Kornegay, Director, Public Relations & Development
TeAndra Miller, Project Director for Domestic Violence Initiative
Celia Pistolis, Assistant Director of Advocacy & Compliance
Tonya Pruitt-Lyons, Administrative Assistant
Melinda Carver Smith, Human Resource Director
LANC Staff Members:
Victor Boone, Triangle Regional Manager and
Senior Managing Attorney, Raleigh Office
Ted Fillette, Assistant Director and
Senior Managing Attorney, Charlotte Office
Hazel Mack-Hilliard, Senior Managing Attorney, Winston-Salem Office
Richard Klein, Southeast Regional Manager and
Senior Managing Attorney, Wilmington Office
Michelle Cofield, North Carolina Bar Association
Dennis Dorgan, Management Information Exchange (MIE)
Eloise Hedgepeth, Volunteer
Denise Long, NC Legal Education Assistance Foundation (NC LEAF)
Elaine Mejia, NC Justice & Community Development Center
Evelyn Pursley, Executive Director, IOLTA
Delsie Williams, wife of Willis Williams, LANC Board member
Ray Wilson, President-Elect, North Carolina Bar Association
Approval of Minutes
Upon a motion made and seconded, the Board UNANIMOUSLY RESOLVED to
approve the minutes of the September 12, 2003 meeting as written.
Chairman Maxwell reported that the Legal Services of North Carolina (LSNC)
Board of Directors had met during the morning of December 12, 2003 and
unanimously voted to recommend that the NC Bar Association reduce the LSNC Board
from twenty-five members to seven members. As part of its unanimous
recommendation, the Board included a statement that the newly configured board
be given the responsibility of redefining the mission for of Legal Services of
North Carolina to provide support to LANC with a specific interest and emphasis
on non-restricted activities.
As part of his President’s Report, George Hausen introduced Denise Long,
Director of North Carolina Legal Education Assistance Foundation (NC LEAF) a
non-profit, statewide loan repayment assistance program for public service
attorneys. Because NC LEAF pays law school loans for
participants in the repayment program, they are likely to stay employed in the
public service sector even though they receive lower salaries than other
attorneys. NC Leaf is funded by the NC Legislature, IOLTA, private attorneys,
some local individuals and law firms.
There are currently 62 attorneys, including LANC staff attorneys,
participating in the NC Leaf Program.
Mr. Hausen recognized TeAndra Miller to report on the Domestic Violence
Initiative. Ms. Miller reported that the LANC Domestic Violence Initiative is
mostly funded by non-LSC funds, Victims Of Crime Act Fund (VOCA), and the Z.
Smith Reynolds Foundation. The VOCA award in the amount of
$1.3 million supports 14-1/2 full-time positions and several contract attorneys.
The contract attorneys represent clients for Legal Aid at a reduced fee.
The Z. Smith Reynolds award in the amount of $70,000 supports one
full-time attorney in the Battered Immigrant Project in Charlotte, North
Carolina. Ms. Miller reported that the Violence Against
Women’s Act (VAWA) provided funding to support six positions, three full-time
attorneys and three full-time staff positions.
This VAWA grant ended in September of 2003; however, an application
will be submitted in January 2004 to reinstate that grant.
Mr. Hausen recognized Hazel Mack-Hilliard, the newly named Senior Managing
Attorney for the Winston-Salem office.
Ms. Mack-Hilliard was formerly the Senior Managing attorney in the Wilson
office and is looking forward to working with the clients and staff in
Winston-Salem to expand the delivery of services in that area.
Mr. Hausen reported that the Z. Smith Reynolds Foundation has awarded a new
grant in the amount of $150,000 to address foreclosure defense issues in the
eastern part of the state, and Ms. Mack-Hilliard will manage the consumer work
in foreclosure actions. Z. Smith Reynolds has also
issued a similar grant which was awarded to non-LSC providers in the western
part of the state to take a different approach to foreclosures and predatory
Mr. Hausen concluded his report by announcing that new funding is currently
being sought from various funding sources to fund projects such as racial
justice and fair housing.
Local Program/Regional Report
Victor Boone, Regional Manager for the Triangle Region and Senior
Managing Attorney in the Raleigh Office reported on the Triangle Region and the
Raleigh/Smithfield offices. Mr. Boone reported that the
Smithfield office recently moved to a new office condominium purchased by LANC.
The new office is located on the site of its former office, an old house that
was demolished after asbestos and other structural problems were found. In
February, 2004, the Raleigh office will relocate to the Administrative Office
building and the Hillsborough office will relocate to Pittsboro, North Carolina.
He stated that the Triangle United Way Campaign continues its strong
presence in the Triangle Region which will now include the Pittsboro office.
Mr. Boone lastly reported that the Access to Justice Campaign is
Clients Council Update
Allen Johnson, who serves in the dual role as Chair of the LANC Clients
Council and Chair of the NC Clients Council, Inc. reported that the Clients
Council held their end of the year, quarterly meeting on December 11, 2003 in
Rocky Mount, North Carolina, and hosted an open house at their new location.
He reported that the NC Clients Council, Inc is seeking 501(c) 3 non profit
status through the Internal Revenue Service.
Operations Committee Report:
Scott Lewis Chair of the Operations Committee reported that the Committee
had met and discussed program integrity guidelines, asset guidelines, program
priorities, and guidelines for the local field office reports.
He directed the Board’s attention to a handout which included reports
from the Local Advisory Councils for the Boone and Hillsborough offices.
Mr. Lewis reported that the eligibility guidelines will be presented at
the next meeting for approval. Mr. Lewis recognized Celia
Pistolis to present the report on the Certification of Program Integrity and
Priorities in Use of Resources.
Upon a motion made and seconded, the Board UNANIMOUSLY RESOLVED to accept the
Report regarding Certification of Program Integrity for 2003 as presented and
directed the Board Chair to submit the appropriate certification of program
integrity to LSC.
After discussion, a motion was made and seconded and the Board UNAMIOUSLY
RESOLVED to adopt Part 1620 – Priorities in use of Resources as presented.
A copy of the Priorities is attached to these minutes.
Resource Development Committee:
George Hausen reported that the Litigation Section of the American Bar
Association and the North Carolina Bar Association each awarded a $5,000 grant
for a total of $10,000 to hire a consultant to work in conjunction with the
Planning Council on evaluating fundraising possibilities for legal services
work. Mr. Hausen recognized Dennis Dorgan, Director of
Fundraising Consulting from Management Information Exchange (MIE) to address the
Board regarding his plans as the newly hired consultant in this matter.
Mr. Dorgan will work in this capacity for one year. He reported to the Board his
fundraising plans. A written report will be submitted to the
Board with recommendations and plans for fundraising.
Finance Committee Report:
Cal Adams, Chair of the Finance Committee, directed the Board’s attention to
the proposed budget for 2004.
Mr. Adams pointed out that revenue is down approximately $600,000 from
last year, and there is a proposed 1% decrease in LSC funding for the upcoming
year. He further reported that $300,000 has been appropriated
to support the self-insurance health plan.
Mr. Adams also stated that the increase in health cost spending will
affect the fund balance in 2004, however, there will not be a deficit carried
over into 2004. Following discussion, it was moved,
duly seconded and UNAMIOUSLY RESOLVED to approve the 2004 proposed budget as
A copy of the budget is attached.
Personnel Committee Report:
Chris Marks reported that the Health Benefits Committee had met and
discussed the health benefit plan. Mr. Marks reported that an
increase of 16% in premiums prompted the Committee’s recommendation to amend the
current plan, and that the amendments will sustain reasonable rates, deductibles
and premiums for LANC employees.
The plan previously had no annual deductible and most of the benefits
were covered at 100%. The amendment included adding a
deductible and increase out-of-pocket annual maximums.
Co-insurance was increased from 100% to 90% in-network.
The second tier of our drug card was increased to $25.00.
Following discussion, it was moved, duly seconded and UNAMIOUSLY
RESOLVED to accept the recommendation as presented to the Board.
Mr. Hausen presented a Resolution to the Board to remove Ceridian and Security
Trust as the third party administrators of the LANC Retirement Plan.
A second Resolution recommended that Frontier Trust Company be
appointed as Successor Trustee and Custodian of the Legal Aid of North Carolina,
Inc. 401(k) Plan effective January 1, 2004 and is authorized to hold the assets
of the trust under the terms of the Trust Agreement.
Following discussion, it was moved, duly seconded and UNAMIOUSLY
RESOLVED to accept the Resolutions as presented.
A copy of the Resolutions is attached to these minutes.
Mr. Hausen reported that a committee of LANC attorneys and staff was formed
and drafted a proposed Equal Employment Opportunity Policy, which he presented
to the Board. Chairman Maxwell deferred the approval of this
policy until the upcoming February Board meeting.
Strategic Planning Committee Report:
Glenn Barfield, Chair of the Strategic Planning Committee, reported that the
Committee had met and developed a mission statement.
The Mission Statement reads:
“Legal Aid of North Carolina is a statewide, non-profit law
that provides free legal services in civil
matters to low-income
people in order to ensure equal access to
justice and to remove
legal barriers to economic opportunity.”
Mr. Barfield recommended the mission statement for approval by the Board.
Following discussion, it was moved, duly seconded and UNAMIOUSLY RESOLVED to
accept the proposed mission statement as presented.
Grievance Committee Report:
Willie Dawson, Chair of the Grievance Committee, was recognized to present
the Grievance Committee report. Mr. Dawson reported that
there are no grievances pending.
Client Affairs Committee Report:
Pearl Nealey, Chair of the Client Affairs Committee, reported that the
Committee had met and was recommending that the Board amend its bylaws to
specifically state that the vice chair of the board automatically succeeds to
the chairmanship. Chairman Maxwell deferred this item to the Executive Committee
for consideration and that it would be addressed at the next meeting.
The Chair, Jim Maxwell, adjourned the meeting at 2:45 p.m.
Leto Copeley, Secretary
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Legal Aid of North Carolina is a statewide, nonprofit law firm that
provides free legal services in civil matters to low-income people in
order to ensure equal access to justice and to remove legal barriers
to economic opportunity.