May 2007
CHRIST CHURCH EPISCOPAL
VESTRY MEETING AGENDA
May 16, 2007
6:00 The Holy Eucharist
6:30 Dinner – Ken Royston
6:45 Approval of April Minutes – Mary Ann Cooley
6:50 Befriender Ministry Update – Joe Gallagher
7:05 Finance Report/Audit & EFT Update – Pete Gallagher
7:20 Preschool Financials/Board of Directors Approval – Kathy Guin
7:25 Gifts and Talents Booth – Dave Wasik
7:40 Sewer and Parking Lot Update – Tom Balgie
7:55 Open 24/7 – Mike Bucci
8:25 Communications Subcommittee
8:45 Half-time Meeting – Paul Johnson
9:00 Grateful Heart Article and Vestry Announcement – Lilly Andrews
Approved June 20, 2007
Christ Church Episcopal
Vestry Meeting Minutes
May 16, 2007
Members in Attendance
Karen Akens, Jr. Warden, Ted Susac, Kathy Guin, Pam Board, John Napier, Dave Wasik, Ken Royston, David Soule, Shelley Putney, Pete Gallagher, Lilly Andrews, Sr. Warden, Marc Halbritter, Mary Ann Cooley
Staff in Attendance
Paul Johnson, Hillary West
Guests in Attendance
Joe Gallagher, Tom Balgie
Approval of Minutes
A copy of the April 18, 2007, Vestry Meeting Minutes was distributed prior to the meeting for review and comments. A motion was made to approve the April 18, 2007 meeting minutes. The motion was seconded and carried.
Befrienders Update
Vestry welcomed Joe Gallagher to the meeting. Joe stated that the Befrienders training was fantastic and that those who went learned how to become a Befriender, be a facilitator for the Befrienders program, and learned how to administer the program. Joe told Vestry that they were given a comprehensive training log and dvd for the program. The training also covered risk management and the sexual misconduct class will be required for each Befriender trained.
Joe stated that they have identified sixty people who will be invited to a meeting on June 9th at 10:00am. An hour presentation will be given and then those at the meeting will be asked to begin the discernment process. Joe explained that the discernment process is a step by step process which includes the meeting then an interview with the team leader and twenty hours of training. Even after the training you can leave the program if you wish. The final step is to proceed into an internship.
Joe told Vestry that they hope to have Befrienders trained by the first Sunday in Advent.
Joe stressed that this is a Christ centered, active listening, program, and the Befrienders will meet monthly.
John asked if Joe anticipated any stumbling blocks and how many people would be involved.
Joe replied that he hoped for twenty to twenty four people. Joe also said that there may be people who don’t embrace this ministry. Joe stated that the goal of Befrienders is not to take the place of a priest, but to be there for people as a listener. Joe said that people can still connect with a priest and then be set up with a Befriender.
Mary Ann asked if Joe and the others who are already trained would begin their ministry prior to completing the training of the others.
Joe stated that he is open to doing that but there is a lot of work to be done in getting the program set up.
Lilly asked if the Befrienders Ministry would take the place of Lay Pastoral Care Ministry.
Joe replied that Befrienders would fold in with Lay Pastoral Care.
David asked if there will be any education about this ministry.
Joe replied that Paul and Hillary have been asked to preach about the Befrienders Ministry and there will be information in the Grateful Heart and on a billboard in the milling area.
Vestry thanked Joe for his report and dedication to the Befrienders Ministry.
Vestry welcomed Mac Thayer, Tom Balgie, and Bill Beattie to the meeting.
Financial Report
Pete stated that April was a good month, and the net operating performance for April was $131,882 favorable to the budget.
Pete stated that pledged income is $88,470 ahead of budget. Christ Church Episcopal (CCE) year to date net operating performance is ahead of budget by $95,000. CCE contribution income is $13,000 ahead year to date. Pete stated that year to date pledge income is ahead by $24,000, and loose plate and non pledged income is trailing by $10,800.
Pete stated that as of April 30th, CCE had $400,000 cash on hand which is equivalent to four months’ worth of expenses. Pete also told Vestry that CCE’s capital resources is $864,000 which is down $33,000 from March 31st.
Marc asked about restricted versus unrestricted accounts and why the Youth Ministry money from the Orlando trip was in a restricted account.
Pete responded by saying that money should not necessarily be in an account that is called restricted. It should be in a clearing account.
Karen stated that when money is collected for something such as a trip that there should be detailed information recorded as to what was collected and what was paid out.
Marc asked what should be done with the extra money from an activity such as the Youth trip.
Paul responded to that inquiry by asking Pete if the Finance Team can help with this.
Pete said that could be handled by the Finance Team and that we do need to define the difference between a clearing account and a restricted account.
Lilly stated that the auditor last year had a question about our restricted funds accounts, and it is something that needs to be more clearly defined.
Lilly told Vestry that the Personnel Team is writing a job description for the hiring of a part-time analysist/accountant and are working on how to advertise the available position.
A motion was made to approve the financial report. The motion was seconded and carried.
Auditor Update
Pete stated that the auditor is finalizing the scope of work to be complete and Heather Miller is working on scheduling the audit and she will inform Pete when it is completed.
Electronic Funds Transfer for Pledges
Pete stated that he was involved in a good discussion at the finance meeting about offering electronic funds transfer for pledges. The Finance Team came to the conclusion that they should not do anything at this time.
Pete told Vestry that the Finance Team used the Suntrust Bank model as their guide. With this model, the church must initiate the transfer each time, and the bank charges the church for each transfer. If Christ Church sent a weekly transaction for one hundred people, the cost would be $1,360. For two hundred people the cost would be $2,000.
It would also be detrimental to the church if people closed their accounts and changed their accounts.
Pete stated that the Finance Team thinks that another model should be explored but that this is not a good time to do that. The Finance Team recommends exploring this further once the part-time accountant is hired.
Parking Lot Update
Tom stated that the parking lot work is two weeks behind schedule because they are waiting for approval from Henrico County. Tom explained to Vestry that the county does not have existing rules to check the proposed sewer work against. The sewer system that Tom developed and proposed is new to the county. Tom stated that Todd Borden also went to the county seeking approval but was denied. Todd has suggested that we split the project so that we can go ahead with the parking lot piece and wait on beginning the sewer work. By splitting the project they can get the parking lot work approved and started.
Tom went on to say that Todd has recommended that Christ Church install a gravity feed sewer system so there will be no worries once the Parish Life Center begins construction. Tom explained that the gravity feed system will not requiring lining, but it will require a six inch pipe instead of a two inch pipe which means they will need to dig deeper to bury it resulting in an estimated cost of $50,000 more than what was originally proposed and approved by Vestry. Tom is working on getting a more exact price and will get back to Vestry next month. Tom added that with a gravity feed system there would not be a need for pumps.
Marc asked what would the savings be without pump expenses. Tom replied that it’s about $400 every few years for maintenance plus cost of electricity.
David asked if Tom needed Vestry approval now so that the project is not held up.
Tom said that the contractor should be getting back to him soon with an amount.
Since Tom has been in contact with the contractor and he feels the work is moving along as best as it can, Vestry decided to wait until next month’s meeting when an exact amount is known, to vote on how the sewer work should be handled.
Open 24/7
Prior to Vestry meeting a proposal from Buildings and Grounds was distributed for review. This proposal was written in response to the question on how to keep the worship space open twenty-four hours a day seven days a week.
Lilly asked Tom what was Building and Grounds main concern. Tom replied that it is vandalism.
Tom stated that one idea from Buildings and Grounds was to set up an altar in the vestibule (the small area just inside the doors before entering the milling area). John stated that doesn’t seem like a very good place.
Mary Ann stated that the proposal said there would not be any increase in insurance cost in keeping the worship space open.
A question was raised about the insurance deductible, whether it is $500 or $1000, or something else.
Hillary asked if the Buildings and Grounds team knew of any vandalism in the churches that are open 24/7. Tom said he had not heard of any.
A motion was made to make the Christ Church Episcopal Worship Space open 24 hours a day seven days a week with the following items in place: written verification that the worship space and items within the worship space such as the piano, drums, and other materials would still be insured, a roll down door for the A/V room, and a lock on the parlor doors. The motion was seconded and carried.
Vestry thanked Tom for all of his work, and Tom left the meeting.
Financial Considerations for the Parish Life Center
Bill distributed a handout of “Financial Considerations for the New Parish Life Center and Sanctuary Expansion” to Vestry members. Bill stated that this handout is a work in progress and a snapshot of financial considerations for today.
Bill began his presentation by considering PIF funds. He said that currently CCE has $900,000 on hand in the PIF fund. $340,000 is committed to current projects leaving $560,000. Bill stated that he took 25% of the amount remaining ($560,000) and put into a restricted account for future maintenance. This leaves $420,000 from PIF to begin the project.
Bill stated that the proposed Parish Life Center (PLC) is 14,000 square feet. Hard costs for the PLC are estimated at $125 per square foot which equals $1,750,000. The Soft costs (30% of hard costs) are $525,000 for a total PLC base line cost of $2,275,000. Bill explained that the soft costs include items such as the architect fee, drawings, other building fees, furniture, and fixtures.
Bill stated that CCE has the potential to raise $3,300,000 which is three times the annual budget, from a capital campaign. Lilly asked what this three times the annual budget was based on. Bill stated that this is the number he received from the Finance Team and from talking to several people. Paul stated that he has also heard that a capital campaign can raise between two and three times the annual budget.
Bill stated that pledge collection from a capital campaign is 90% reducing the $3,300,000 to $2,970,000. Add the $2,970,000 to current PIF funds available and the total is $3,390,000. Paul requested that 10% of the capital campaign total be tithed to outreach, leaving $3,093,000 available for building projects.
Paul stated that the 10% tithe to outreach is his idea, but will be a Vestry decision.
Bill continued by stating that after paying $2,275,000 for the PLC and $165,000 for the Pouncey Tract Road improvements, there is $653,000 remaining.
Bill discussed loan potential. He stated that a $1.1 million thirty year mortgage at 6.25% would require an annual debt service of $90,000. Bill explained that this was a working number suggested to him.
Bill stated that the updated estimate for the Sanctuary expansion is $1,500,000. With the Sanctuary expansion comes Henrico County requirements of $385,000. These requirements are for the Gayton Road North extension ($225,000) and additional parking lot/relocation of settling basin ($160,000). This brings the total for the Sanctuary expansion to $1,885,000.
Ken stated that the county will more likely require us to do the Pouncey Tract improvements and maybe not the North Gayton work.
Mac stated that he thinks it is quite significant that we are considering 4 million plus for both projects. He went on to say that there are still considerations with the PLC such as showers and a full kitchen which will bring the estimate to at least 4.2 million.
Ken stated that he felt the estimate may even be more like 4.5 to 5 million. Ken reminded Vestry that it may take a while for county approval to begin construction and costs will continue to rise. He stated that if we wait a year then 4.2 million becomes 4.7 million.
Bill stated that Vestry should also consider costs such as heating, cleaning, and other things that tie into maintaining a building.
Kathy stated that raising three times the pledged income in a capital campaign is not a sure thing.
David S. stated that the numbers presented by Bill give him cause for concern. He believes that this is more than we can handle right now and he is concerned about this amount of debt service. David also stated that he thinks there are a lot of favorable assumptions within these numbers.
Karen stated that three sources she has talked to say that 3-5 times of pledged income is usually raised in a capital campaign. Paul asked if that was a three or five year campaign, and Karen said she was not sure.
John stated that as a Vestry we can choose how to spend our pledged income. He also stated that he has spoken to Patsy Bjorling from the Diocesan Stewardship Office who said that she can make a capital campaign fun.
Bill told Vestry that the Building Steering Committee would like to submit both the PLC and worship space addition plans at the same time. He stated that just because they are submitted together it does not mean that they have to be done together.
Ted asked when would the Building Steering Committee be ready to submit the POD (plan of development).
Ken stated that it depends on how Henrico County responds to the RFP (request for proposal). Ken told Vestry the reason we should submit the RFP is to find out what efficiencies are available. If we submit an RFP with combined PLC and sanctuary expansion, we will find out all of the county requirements.
A motion was made to authorize the Building Steering Committee to release a Request For Proposal (RFP) that explores the possibility of constructing the Parish Life Center and expanding the worship space.
David S. asked about the cost of the architect.
Ken stated that we do not have those costs but will have professional drawings for the plan of development and costs for 2007 at that time.
Ted asked when would the RFP be released.
Mac said that the RFP has been drafted and could be submitted within two weeks. Bill stated that it could be released before Memorial Day.
Mary Ann reread the above motion to authorize release of the RFP. The motion was seconded and carried.
Lilly asked if the Stewardship Team was still being included in communication about building progress, and Bill replied that yes, the Stewardship Team is on the distribution list.
Vestry thanked Bill for his work on providing financial considerations for constructing the Parish Life Center and expanding the sanctuary.
Communications
Paul distributed a “Next Steps” handout for the Vestry to review.
Paul explained that he has some suggestions on how to move forward with expanding the building conversation to the congregation. Paul suggests that a story of how we have come to this point should be told. He stated that a full presentation of the PLC schematics, including costs, should be included. Paul stated that we should also communicate that the Vestry is investigating doing both the PLC and the sanctuary expansion.
Paul stated that we need to present a plan of how we will go about making a decision and how we are going to raise the money.
Hillary asked about the cost of the projects and what we plan on saying the cost is.
David S. responded to that question by stating that the Vestry will need to agree on the same amount.
Bill recommended that the Vestry be sure to clarify that we are building a Parish Life Center (PLC) and looking at doing both the PLC and sanctuary expansion at the same time.
Mac stated that the goals of communication should be to tell the story of where we are and where we need to go, to be orderly and determined, to be transparent, and to include the scope and cost of the project.
Kathy expressed concern that there be conversation with the congregation, not just questions and comments.
David S. stated that the story being told is a separate piece from conversation in smaller groups.
Paul stated that he thinks this will be a four month conversation and asked the Vestry what is the best way to bring the congregation together.
Dave W. stated that the Vestry should focus the conversation on the great things that can happen with this project and not make folks nostalgic for the past. Dave stated that this should be forward moving vision, not so much backwards moving vision.
Marc stated that we should not just tell the story but also share the vision.
Bill stated that we should have ongoing communication with the specifics of each part of the process so when we get to the point of a capital campaign the congregation is excited about it.
Paul asked Vestry how do we want to bring the congregation together.
Marc asked if this is something we can ask the ministry teams.
Karen stated that it is important to keep the message the same to everyone.
David S. stated that we should remember that this is a four month process and this is just the beginning. The message needs to be transparent with a timeline and basic information.
Lilly stated that we may have four months. But three of them are in the summer.
Paul suggested that we have a discussion with the congregation about the PLC and sanctuary expansion plans between services on either June 10th or June 17th. The Vestry discussed these and other dates and pros and cons of each date.
Ken requested that the communications subcommittee handle scheduling the meeting.
Paul stated that the subcommittee can also handle the other items of detail as well.
Mac and Bill were thanked for their input, and they left the meeting.
Gifts and Talents Fair
Dave W. distributed a Gifts & Talents Fair update handout for the Vestry to review.
Dave W. stated that we will have a booth at the fair, and the volunteer schedule is on the handout. Dave stated that he will have Vestry members pictures and names at the booth as well as a Vestry application form, a list of topics we have been working on, and a copy of meeting minutes. Dave stated that he also plans on having drawings of the Parish Life Center and parking lot improvements.
David S. stated that we may want to have a sheet with requests from ministry teams for the Parish Life Center.
Mary Ann recommended a financial/budget statement for the booth.
Preschool Update
Prior to the Vestry meeting, the Preschool financial statement and slate of Preschool Board of Directors for 2007-2008 was distributed for review and comments.
Kathy stated that Amy Goodman resigned her position of bookkeeper for the Preschool and is on the Board of Directors slate as Treasurer.
Kathy stated that one teacher out of two positions available has accepted a teacher position.
A motion was made to approve the hiring of the teacher, approve the financial statement, and approve the slate of 2007-2008 Preschool Board of Directors. The motion was seconded and carried.
Paul stated his thanks to Karen Shultz, the first President of the Preschool Board.
A motion was made to write a courtesy resolution for Karen Shultz. The motion was seconded and carried.
Lilly stated that she would attempt to write the courtesy resolution for Karen.
Appointment of Trustee
By email discussion and vote on May 13, 2007, it was moved and seconded that Louanna Ockerman Heuhsen should be appointed substitute trustee for Christ Church Episcopal to fill the vacancy caused by the death of John Arthur Hinkley. After discussion, the Vestry voted unanimously to appoint Louanna Ockerman Heuhsen to be a substitute trustee of Christ Church Episcopal and the Vestry directed Elizabeth Andrews, Sr. Warden, to cause the appropriate change to be made at the Circuit Court of Henrico County.
There being no further business, the Vestry meeting was adjourned.
Respectfully Submitted,
Mary Ann Cooley, Registrar
