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THE DIOCESE OF NEWARK
Present: The Rt. Rev. Mark Beckwith, President; Mr. Michael Francaviglia, Secretary; Mr. Richard Graham, Treasurer; Diane Sammons, Esq., Chancellor Elected by Districts: The Rev. Michael Allen, Ms. Edith Gallimore, The Rev. Mariano Gargiulo, Ms. Lois Gray, Mr. Robert Harwood, Mr. Bert Jones, The Rev. Thomas Mathews, Jr., Ms. Terrie McColl, The Rev. Victoria Geer (Vicki) McGrath, Ms. Alice Palmer, Ms. Barbara Piccirillo, The Rev. Stuart Smith, The Rev. Erik Soldwedel, Ms. Mary Sunden, Ms. Patty Watts, The Rev. Fain Webb, The Rev. Lynne Bleich Weber, The Rev. Canon Dr. Sandye A. Wilson. Bishop's Appointments: Ms. Gail Barkely, The Rev. Joseph Harmon. Absent: Mr. John Niles, The Rev. Gregory Perez. ECW: Ms. Anna Byrne Staff: Canon R. Carter Echols, Canon Greg Jacobs; and Ms. Kitty Kawecki (for the work group time). The Discipleship work group led the worship service. AGENDA The agenda was adopted with the addition of a resolution on parsonage allowance for the Rev. Canon Greg Jacobs. MINUTES Motion: It was moved and seconded to accept the minutes for the meeting of June 11 2008. The motion was adopted. EPISCOPAL COMMUNICATIONS Bishop Beckwith's comments included: " Welcomed Canon Greg Jacobs, new Canon for Mission and Ministry. Canon Jacobs and Canon Echols will each be responsible for clergy transitions and congregational development, delineated by even numbered districts to Jacobs and odd districts to Echols. Together they were working on a covenant to increase ministry capacity and support for congregations at risk. " Welcomed the Rev. John Mennell, new District 5 representative; Ms. Linda Curtiss, chair of the Human Resources Committee; and Ms. Anna Byrne, UTO Chair and representative from ECW. " Reported the diocesan staff completed the on-line modules of Safeguarding Online, the supplement to the Safeguarding God's Children program on child abuse awareness. The Discipleship work group was committed to completing the four modules and the assist with its diocesan-wide dissemination. He expressed thanks to Ms. Kitty Kawecki for her coordination and administration of the program. " Noted that the Cathedral search committee was moving toward a selection of a new dean. " Announced several clergy transitions: Randall Day to the Diocese of Los Angeles from St. Mark's, Teaneck; John Habacker, priest-in-charge, St. John's, Dover; Virginia (Ginny) Dinsmore, priest-in-charge, St. Dunstan's, Succasunna; Miguelina Espinal, assistant, St. Paul's, Paterson. Ms. Barbara Haynesworth, diocesan controller, will retire at year's end. " Commented on the upcoming budget process that will introduce a narrative budget model that tells the story about the diocese, shows what the diocese does and the connections between the diocese and the congregations. Expressed concern that there had been no payments toward the 2008 pledge to date for the national church. Steps will be taken to meet the full commitments of the diocese and that may include identifying new sources of revenue. " Asked those members who would complete their terms in January to assist in identifying replacements with interest and leadership ability. MEDICAL INSURANCE PLANS Ms. Linda Curtiss, chair of the Bishop's Advisory Committee on Human Resources, presented the recommended medical insurance plans for 2009. The committee recommended that the plans for 2009 be the same as the plans that were offered for 2008: Cigna National HMO; Cigna High Deductible Health Plan; Aetna Choice POS II; Aetna National HMO; Aetna National POS; United HealthCare Choice; and, United HealthCare Choice Plus. The cost of the Cigna High Deductible plan will increase by 2.5%; the cost of all other plans will increase by 8.5%. The increase for last year was 11%. Ms. Curtiss explained that General Convention in 2009 will consider a resolution to mandate a denominational health plan (DHP) model for 2010 and beyond which would require all Episcopal employers to offer health plans coordinated by the Medical Trust. Status reports and information about the intense research that has led to this recommendation have been sent, by the Medical Trust and the Church Pension Fund, to all clergy and lay participants. The Bishop's Advisory Committee on Human Resources received a briefing from the director of the DHP project at its August meeting. In short, the DHP is intended to address five issues: 1) increase potential savings by leveraging the Episcopal Church's aggregated size for the large scale purchasing of healthcare benefits; 2) balance the church's financial constraints with the cost of providing adequate employee healthcare benefits; 3) address equity in coverage and availability between clergy and lay employees who are regularly scheduled to work 1,500 or more hours per year; 4) provide for local control so that dioceses, agencies and institutions have flexibility to make decisions about healthcare benefits that reflect local polity and preferences; and 5) provide access for all employees of participating employers to purchase healthcare benefits at a group rate, even if their employers are not mandated to fund their coverage. Additionally, the committee asked all clergy in the diocese to raise any concerns they had with the current plans offered. Six persons responded, only one of which related to provider availability. There appeared to be general satisfaction with the plans available, although some were experiencing difficulties with claims procedures, and, many (we suspect) were anxious about the cost. In light of the potential for a nationwide program as early as next year, and with apparently few problems with the current set of plan offerings, the committee recommended no change in the offerings at this time. The current enrollment and 2009 monthly premiums for each of the plans were as follows: Plan Current Enrollment 2009 Monthly Premiums Single Plus Sps Plus Child Family Cigna HMO 26 $616 $1,233 $1,109 $1,849 Cigna High Deduct 1 447 895 806 1,343 UnitedHealth Choice 1 684 1,366 1,229 2,050 United Health Plus 4 679 1,358 1,223 2,038 Aetna Choice POS 29 643 1,286 1,159 1,930 Aetna HMO 39 616 1,233 1,109 1,849 Aetna Natl POS 41 711 1,422 1,280 2,133 Motion: The following motion was moved, seconded and adopted: RESOLVED, that for 2009 the Diocese of Newark offer the following medical insurance plans to eligible clergy and lay staff, both congregational and diocesan: Cigna National HMO; Cigna High Deductible Health Plan; Aetna Choice POS II; Aetna National HMO; Aetna National POS; United HealthCare Choice; and, United HealthCare Choice Plus. Additionally the committee was reviewing the cost of medical insurance for retired clergy and spouses and diocesan lay staff and how to reduce the impact on the diocesan budget; the cost and benefits of the current lay diocesan staff defined benefit retirement plan that had become under funded, and what changes, if any, could be made to a defined contribution plan. DIOCESAN INVESTMENT TRUST REPORT Mr. Richard Graham reported that TIAA-CREF was selected as the sole portfolio manager for the Diocesan Investment Trust. For the better part of seven months options were assessed for improving and streamlining of the investment management and administrative operations of the Diocesan Investment Trust ("DIT"). A group consisting of DIT and Trustees of the Episcopal Fund and Diocesan Properties developed a new model for the DIT including guidelines and requirements for performance and services. Numerous firms were interviewed and associated references contacted. Independent opinions were also sought. After much deliberation and checking of references the group selected TIAA-CREF as the sole investment manager for the DIT. TIAA-CREF was a non-profit organization that serves non-profits so its investment approach, understanding of fund accounting requirements, and ability to deliver on Diocesan operations and reporting requirements was strong. The firm offered a wide range of investment options and funds, had demonstrated good performance over time, and charged fees, as a non-profit, that were significantly below most other investment firms. All investment holdings with other managers were liquidated and the assets transferred to TIAA-CREF on 2 September 2008. The DIT Trustees' role will be expanded to include greater oversight of investments and investment strategy/options, performance, asset allocation, reporting, and communicating with investors. All reporting of investments will be in dollar, rather than share, format. The TIAA-CREF investment manager was charged with following the investment management policies/guidelines of the Diocese when making investment suggestions. The Diocesan Finance Office will continue to oversee operational oversight/relationship management and monitor fees. The change in investment/operations manager should be transparent to investors in the DIT; the improvement in service and timely processing will be immediately evident. The change will open opportunities for wider investment strategies by congregations. WORK GROUP REPORTS Congregational Vitality - The Rev. Fain Webb reported that three congregational learning sessions were scheduled for September, October and December; and, the work group will discuss the covenant with congregations to increase and support ministry capacity. Discipleship - The Rev. Stuart Smith reported the work group reviewed the worship experience at Council meetings, such as this evening's Evening Prayer, and what other formats could be considered besides Bible study; discussed the importance of creating churches as safe places and the encounter that the diocesan staff had with the on-line safe church curriculum; and, studied how the work group can be a resource to the diocese. Inclusion - The Rev. Joseph Harmon reported the work group continued its focus on raising up congregational efforts toward inclusion and highlight those efforts on the diocesan web site; and, began a conversation on the current state of anti-racism training and received a proposal from Canon Jacobs on radical hospitality training. Outreach - Ms. Mary Sunden reported the work group will update the Outreach grant process for next year and make the necessary changes to the web site; and, continued the discussions and engagement with the senior housing projects in the diocese. TREASURER'S REPORT Mr. Richard Graham reported on the current status. Income and cash flow remained the biggest challenges for the Diocese this year and looking forward to FY 2009. Currently there was a $535,000 deficit. Pledge income received was $395,000 below budget. Significant pledge income was also outstanding from 2007. Expenses were approximately $100,000 under budget. Budget variances were calculated based on budget allocation across 12 months, not when income/expenses would likely be received/incurred. The Council received $1.3 million in income through August versus a budgeted amount of $1.9 million. Income deficit was $600,000, 32% under projected income for YTD FY08. Almost 60%% of this amount was budgeted pledge payments not received. Additional funds of $207,000 were due to Council from investment sources that had not yet been recorded. Pledge income for FY 2008 was almost $100,000 under budget for August. YTD was still significantly behind projected year to date income (received = $1.3 million vs. projected $1.7 million). Overall expenses were $100,000 under budget. Most departments were at or under budget. Notable were Salaries and Benefits, currently $26,000 under budget and Ministries, $24,000 under budget. Convention expense was currently $11,000 over budget but needed further analysis to determine what expenses represent pre-paid amounts for the 2009 convention. During the discussion that followed the report, many comments were expressed concerning the diocesan pledge to the national church and the payment of congregational pledges to the diocese. The diocese was committed to its pledge to the national church. Perhaps there needed to be dialogue with congregations to review the various pledge payment schedules and patterns. Motion: It was moved and seconded to accept the report, subject to audit. The motion was adopted. STEERING COMMITTEE WARD J. HERBERT FUND BOARD RECOMMENDATIONS Motion: It was moved and seconded to suspend the rules to allow for the ratification of the Ward J. Herbert Fund Board grant recommendations. The motion was adopted. Motion: It was moved by Ms. Mary Sunden that the recommendations for the second cycle of grants recommended by the WJH Fund board's June meeting be ratified. The motion was adopted. WJH 08 03: Orange, Church of the Epiphany, Rectory Renovations The application was reconsidered and discussed by the board. It was the consensus that additional funding for the rectory work would not be provided under the guidelines. The church leadership will be encouraged that for future applications, church representatives contact the diocesan property manager, Mr. Jim Caputo, for guidance. WJH 08 06: Washington, St. Peter's, Rectory boiler, $3,850 WJH-08-09: Montclair, St. John's Church, Parish hall roof replacement, $35,000 WJH-08-10: Jersey City, St. Paul's, Furnace repairs, $2,954 WJH-08-11: Belvidere, St. Mary's, Roof replacement, $15,000 WJH-08-12: Chester, Messiah, Underground oil tank removal, $2,400 Total recommendation to Diocesan Council: $59,204 PAROCHIAL REPORTS & RECONCILIATIONS OUTSTANDING The Rev. Stuart Smith thanked the members for their assistance in making telephone calls to leaders of congregations whose parochial reports and reconciliation statements were outstanding. DIOCESAN COUNCIL RETREAT UPDATE (SEPTEMBER 12 & 13, 2008) Mr. Francaviglia noted that the meeting packet included a query card for completion by Council members and asked that the cards be brought to the council retreat. The card included four questions: What do you enjoy most about being on Council? What do you need to know more about to be an effective member? Clarification of what Council roles/functions or areas of responsibility would you find helpful? Do you have gifts to share that we should know about? MEETING LOCATION The Rev. Joseph Harmon reported that the Steering Committee didn't loose track of the survey. The results were evenly divided and didn't make for an easy decision. The matter will be taken under advisement and will be discussed at the retreat. PARSONAGE ALLOWANCE Motion: The Rev. Joseph Harmon moved the following resolution: RESOLVED, That of the compensation paid to The Rev. Canon Greg Jacobs in the calendar year of 2008 (months of September, October, November and December), the sum of $6,250 be designated as parsonage allowance. The motion was seconded and adopted. It was moved and seconded to temporarily adjourn the meeting of Council. SENIOR HOUSING CORPORATIONS The President called to order a meeting of the Hillsdale Senior Housing Corporation. HILLSDALE SENIOR HOUSING CORPORATION Motion: Ms. Mary Sunden, Outreach Work Group convener, moved that the following nominees be elected to the Board of Trustees for the term noted. The motion was seconded and adopted. Local Representative Trustees: Mr. Robert Comiskey and Ms. Margaret Rosenbauer. Motion: It was moved and seconded to adjourn the meeting of the Hillsdale Episcopal Senior Housing Corporation. The motion was adopted. The President reconvened the meeting of the Diocesan Council. DISTRICT SHARING District 1: The Rev. Thomas Mathews reported that Mr. Rich Graham will make a presentation to the September 18 meeting. District 2: Ms. Patty Watts reported on the district events of covered dish suppers and Bible studies in June and September. District 3: The Rev. Vicki McGrath reported that plans were being made for a district wide youth mission trip next year. District 4: The Rev. Canon Dr. Sandye Wilson reported that district was planning a trip to the Acolyte Festival in Washington, D.C. in October, and a Habitat for Humanity project for students in November. District 6: The Rev. Joseph Harmon reported the district meeting was upcoming. District 8: The Rev. Mariano Gargiulo reported the next meeting was scheduled for 9/21. District 9: The Rev. Lynne Bleich Weber reported next week's meeting will focus on the district's next outreach project that might possibly be work on Habitat for Humanity. ANNOUNCEMENTS AND MEETING EVALUATION Ms. Anna Byrne, ECW, announced that Ms. Sue Bennett accepted the role of ECW treasurer. The president's position was still unfulfilled. The National ECW committed to pay for a home to be built in New Orleans and the diocesan ECW will financially support the effort. The Province 2 ECW provided scholarships to students. Canon Echols reported on two upcoming events: the Stewardship conference on Saturday, September 27 and the Congregational Ad-Ministration day on Saturday, October 18. The meeting was closed with prayer by Bishop Beckwith. The meeting was adjourned at 9:20 p.m. Respectfully submitted, Michael Francaviglia Secretary  --Return to Diocese of Newark Home PageReturn to Top of Page |