Wednesday, June 9, 1999
St. John's Church, Boonton, New Jersey
Approved Minutes of Regular Monthly Meeting
Present: The Rt. Rev. John S. Spong,
President; The Rt. Rev. Jack M. McKelvey; The Rt. Rev.
John P. Croneberger; Mr. Michael Francaviglia, Secretary;
Mr. John Zinn, Treasurer; Mr. Michael F. Rehill, Chancellor
Bishop's Appointments: The Rev. Geoffrey Curtiss; Ms. Diane Kaczmarek; The Rev.
Dr. Robert A. Schiesler
Elected by Convention: The Rev. Emory Byrum; Mr. Leonard Glenn; Ms. Joyce Skipper;
Ms. Lynn Tyler; The Rev. Dr. Franklin Vilas; The Rev. Richard Wrede
Elected by Districts: The Rev. David Badgley; The Rev. Martin Bagay; Mr. Steven
Boston; The Rev. Dr. Lawrence Falkowski; Mr. Richard Fifield; Ms. Kathy Ganim;
The Rev. Scott Hoogerhyde; Mr. Michael James; The Rev. Mark Lewis; Mrs. Doris
Mardirosian; Mr. Christopher Neglia; The Rev. William Parnell; Mr. Junius Powell;
Ms. Susan Schink; The Rev. Mildred J. Solomon; Ms. Mary Sunden; Mrs. Virginia
Whitehouse
Absent: The Rev. Kevin P.J. Coffey; Ms. Dorothy Gould; The Rev. Margaret Hodgkins;
Ms. Naomi Horsky; The Rev. William Lantz; The Rev. Kenneth Near; Mr. Robert Simmons;
The Rev. Harry Smith; The Rev. Steven Steele
Others present: The Rev. Richard Bardusch, Mr. John E. Lynch, The Rev. Cooper
Conway, The Rev. Isaac Persaud, Mr. Sidney King, Ms. Carol Harrison Arnold, Mr.
Michael Rems, Mr. William Keil; Ms. Clara Horsley
The Rev. Stephanie Wethered, Rector, welcomed the members of Council and introduced
the parishioners who were responsible for the meal Joann and Peter Hinchel. The
church was in the midst of a capital campaign; there was a seven year strategic
plan before the 150th anniversary seven years hence. The parish hall would be
renovated; the organ was under current renovation. Tiffany windows in the hall
were restored. An after school program was part of their outreach plans, but
the building needed to be upgraded to meet DYFS codes. The church was the mother
church of St. Peter's, Mountain Lakes and Transfiguration, Towaco. The Council
demonstrated its appreciation by applause.
The meeting was called to order at 7:15 p.m. by Bishop Spong.
AGENDA
It was moved and seconded to adopt the agenda. The motion was adopted.
MINUTES
It was moved and seconded to accept the minutes for the May 12, 1999, meeting
with a correction in the attendance listing to show that Mrs. Clara Horsley was
present. The motion to accept the minutes was adopted.
EPISCOPAL COMMUNICATIONS:
THE RT. REV. JOHN S. SPONG
Welcomed The Rev. Richard Bardusch, The Rev. Cooper Conway, and Mr. John Lynch,
for Youth Ministries and the Camp; The Rev. Isaac Persaud, Mr. Sidney King, Ms.
Carol Harrison Arnold, Mr. Michael Rems, for Incarnation, Jersey City; and Mr.
William Keill, South West District co-chair.
TREASURER'S REPORT
Mr. Zinn presented the Treasurer's Report. There were no causes for concern at
the time. It was moved and seconded to accept the report, subject to audit.
He reported that the national church extended the deadline for churches and ministries
to be covered under the Episcopal Church's federal group tax exemption. Nearly
all churches in the diocese had taken action with only six outstanding.
LAY PENSION PLAN
Mr. Zinn presented a revision to the lay pension plan for diocesan lay employees.
He explained the differences between a defined benefit plan and a defined contribution
plan. A direct comparison of the diocesan lay pension plan with the clergy plan
through the Church Pension Fund was not possible for two basic reasons. Clergy
continued to be covered under the CPF plan regardless of which diocese they served
in; movement between employing churches did not affect continued coverage. The
CPF was not the employer of the clergy person even though it was the provider
of the plan. Under secular plans the employer was the provider of the pension.
About ten years ago, the Church Pension Plan began a plan for lay employees in
response to GC action calling for lay parochial employees to have coverage in
pension plans. The diocese had a plan in place at that time that was as good
or better. To date, there had been no compelling reason to change. The comparison
had been to compare ours with other secular employers.
The pension fund is administered separately and was funded on an projected basis,
meaning that there would be sufficient funds for each and every employee entitled
to a pension. There was no cost to making the changes.
Mr. John Zinn presented the following resolution, which was seconded by Ms. Mary
Sunden:
RESOLVED, that the following changes be made in the Diocese of Newark's Lay Pension
Plan effective June 9, 1999
1. The benefit percentage is increased from 1.5% to 2.0%.
2. The average pay definition is changed from the final eight years to the highest
five of the final 10 years.
3. The requirements for early retirement are changed from age 55 and 10 years
of service to age 55 and 5 years of service.
4. The listing of alternative beneficiaries shall include domestic partners as
defined in the Diocese of Newark's Group Medical Insurance Plan.
5. The minimum monthly benefit for existing retirees is increased from $150 to
$200 per month.
Items 1-4 apply to existing employees, item 5 applies to existing retirees.
Supporting Information: The Diocese of Newark maintains a pension plan for its
lay employees at Episcopal House. Participation is limited to diocesan employees.
Other organizations at Episcopal House as well as parochial employees are eligible
for a number of lay pension plans administered by the Church Pension Fund. The
plan is a defined benefit plan, that is employees are guaranteed a specific pension
payment on retirement. This is as opposed to a defined contribution plan where
a percentage of salary is invested and the employee receives that amount plus
the investment return on those funds.
Over the past 16 years the plan has been revised twice, in 1987 and 1993. The
Diocese utilizes the firm of Miliman and Robertson as pension consultants and
actuaries. The current recommendations are based upon an analysis by the consultants
which included comparison to current norms. A 1998 survey by KPMG indicated that
the percentage of compensation to be multiplied times year of service is typically
at least 2%. The highest five of the last ten years for average pay is the norm
in secular pension plans. The proposed early retirement definition is also reported
to be standard. The inclusion of domestic partners as alternative beneficiaries
simply brings the pension plan into compliance with the arrangements for our
group dental and medical insurance plans. The minimum monthly benefit was increased
as part of the both of the prior reviews, another increase is appropriate now.
These financial impact of these changes will be absorbed by the existing plan
assets. The lay pension fund is currently over funded. The minimal criteria for
pension funds is that the assets be sufficient to pay the accrued benefits. That
is, there should be sufficient funds to pay all the benefits that currently vested
employees have earned. The diocesan plan has sufficient assets not just to pay
the accrued benefits, but also to pay the projected benefits. That is, there
are sufficient assets to pay the benefits already earned as well as to pay benefits
if every existing employee worked for the diocese through age 65. Few plans are
funded to this extent and the proposed changes will not require any new funding
in the plan.
The motion was adopted.
EPISCOPAL CHURCH WOMEN
Mrs. Clara Horsley reported on the annual ECW planning meeting, held at the Seamen's
Institute, with had as its focus an emphasis the on women's concerns. Later this
summer, all clergy would get a package about the Children's Sabbath scheduled
for October 30 this year, urging their church's participation. The Christian
Education Commission, JPIC and ECW would assume the cost of distribution.
ACTS/VIM BOARD RECOMMENDATIONS
It was moved by Ms. Diane Kaczmarek and seconded that the recommendations presented
last month be ratified. The motion was adopted.
AV99-2 Hackensack, Christ - Peter's Place Client Advocacy Referral Program & CDC,
$10,000
AV99-3 Newark, Newark School of Theology, $5,000
AV99-4 Clifton, St. Peter's - St. Peter's Haven, $7,500
AV99-5 Newark, The Oasis - Wellspring Project, $10,000
AV99-6 West Orange Valley Area Ministry Evaluation and Vision - Project Manager,
$5,000
AV99-7 Newark, AIDS Resource Center at St. Barnabas - Pastoral Care Ministries,
$10,000
AV99-8 Fort Lee, Good Shepherd- Friends for Life, Community Services, $10,000
AV99-9 Newark, Companion Diocese Committee - Living Water for Lebombo, $5,500
AV99-10 Hoboken, All Saints' - United Campus Ministries at Stevens Institute
of Technology, $4,000
AV99-11 W. Milford, Incarnation & Ringwood, Good Shepherd - Highlands CDC,
$9,500
AV99-12 Paterson, St. Paul's - Women in Need (St. Paul's CDC), $8,500
Total recommendation to diocesan council: $85,000
WARD J. HERBERT FUND RECOMMENDATIONS
It was moved by Mr. Michael James and seconded that the recommendations presented
last month be ratified. The motion was adopted.
WJH99-1 Bloomfield/Glen Ridge, Christ - Boiler Replacement, no funding
WJH99-2 Washington, St. Peter's - Rectory Renovation, no funding
WJH99-3 Englewood, St. Paul's - Roof Repairs, Driveway, $10,000
WJH99-4 Lyndhurst, St. Thomas - Boiler Replacement, $3,000
WJH99-5 Sparta, St. Mary's - Roof Repairs, $9,100
WJH99-6 Montclair, St. Luke's - Steam Pipes, $8,000
WJH99-7 Union City, St. John's - Electric Work; flood control, windows, $7,200
WJH99-8 Clifton, St. Peter's Haven - Roof Replacement, $3,000
WJH99-9 Morris Plains, St. Paul's - Roof Tile Repairs, $4,000
WJH99-10 Hackensack, Christ - Boiler Repairs, $2,940
WJH99-11 Parsippany, St. Gregory's -Roof; Bathroom; Vicarage boiler; Tank Abatement,
$2,335
WJH99-12 West Milford, Incarnation - Workspace Conversion; Bathrooms; Electric
Work, $2,800
WJH99-13 East Orange, Christ - Handicapped Access Ramp, $9,000
WJH99-14 Bergenfield, All Saints' - Boiler Replacement, $12,000
WJH99-15 Towaco, Transfiguration - Roof Repairs, $2,550
WJH99-16 Oakland, St. Alban's - Roof Replacement, no funding
WJH99-17 Mt. Arlington, St. Peter's - Furnace; Tank Abatement, $2,303
WJH99-18 Montclair, St. John's - Roof Replacement (withdrawn)
WJH99-19 E. Orange, St. Agnes/St. Paul's - Rectory Roof; Basement Sealing, $9,400
WJH99-20 Irvington, Trinity - Roof Repairs, $2,360
WJH99DOM West Orange Area Strategy - $6,000 (ratified by Diocesan Council in
April)
Total recommendation to diocesan council: $95,988
Mr. Michael James reported that St. Peter's Church in Clifton had tithed at five
percent each bequest it received for the Acts/Vim and Ward J. Herbert Funds.
He moved that a letter of thanks and commendation be mailed to St. Peter's, Clifton
and to inform the other churches of the diocese of St. Peter's generosity. The
motion was seconded and adopted.
OUTREACH COMMITTEE RECOMMENDATIONS
It was moved by Ms. Mary Sunden and seconded that the recommendations presented
last month be ratified. The motion was adopted.
Partners for Environmental Quality - $5,000
Living Water for Lebombo - $13,000
The Oasis - $4,000.
The AIDS Resource Center at St. Barnabas - $8,500.
Project Upward Bound - $3,000
The Apostles' House - $4,000
St. Paul's CDC - $4,500
Grace Church, Union City - $2,000,
Syrian Orthodox Relief Fund - No funding recommended
Syrian Orthodox Sunday School - No funding recommended
Good Shepherd Community Services - $7,000.
Food For Friends -$3,000
Camp Shining Star - $2,000 subject to matching grants of $500 each from the two
sponsoring churches.
St. Agnes & St. Paul's Cricket Club Initiative - No funding recommended
Highlands CDC - $9,000
Christ Church CDC - $6,500
Jersey City Episcopal CDC - $4,000
St. Peter's Haven - $4,000
St. James CDC - $11,000
BALC - $3,000.
Newark School of Theology - No funding recommended.
Good Shepherd, Wantage - $2,000
ST. AUGUSTINE'S CHURCH,
JERSEY CITY
The Rev. Isaac Persaud, rector of Incarnation, Jersey City, Mr. Sidney King,
Ms. Carol Harrison Arnold and Mr. Michael Rems addressed the members of Council.
(Architectural drawings were displayed.) They reported on the plans for the new
buildings and the high level of excitement of the parishioners as the project
developed. An existing building would be renovated for a four story community
center, next to the newly constructed church. The new church would be built on
approximately an acre of land. There would be 30 parking spaces and the worship
space would accommodate 320 congregants. The community center would provide space
for the Sunday school, as well as possibly for a number of non-profit organizations.
They sought from Council continued assurance of support as the process continued.
Hopefully, ground breaking would occur in the spring of 2000, provided that everything
was in place, with a completion of the church by December 2000.
There was a property tax assessment on the land until the property could be taken
off the tax books when it was determined as space for religious purposes.
One million dollars was a target for fund raising – $300,000 for the church,
$700,000 for the building renovation. To have the basement increased the building
costs by $850,000. Already invested was $2.1 million. The site plan should be
approved by the September meeting of the Council.
A concern was raised regarding responsibility for the incurred debt on an ongoing
basis and in the event of default. The Chancellor explained that the church will
take out a $500,000 mortgage and will be obligated for the debt. The Standing
Committee will have to give approval for the mortgage, and the Diocesan Council
will probably guarantee the mortgage. If it ever happened that the church no
longer functioned and shut down, then the Council would sell the property. The
equity in the building is much higher than the mortgage. The parish was responsible
for the mortgage payments.
Mr. Jack Lynch suggested that there be additional analysis before final decisions
were made and that he would write a letter on behalf of the Trustees listing
a series of questions that might assist in the decision making process. Economic
projections will need further analysis, and a re-review would be a good exercise.
Mr. Persaud reported that the financial projections were realistic, yet conservative.
Bishop McKelvey moved the following resolution, which was seconded by Ms. Diane
Kaczmarek:
Resolved that Diocesan Council hereby authorizes and requests the Trustees of
the Diocese to release up to $75,000 for costs leading to and required by the
building of St. Augustine's, Jersey City, under the following conditions:
That invoices submitted are signed off as appropriate, due and payable, by the
architect, the owner's project coordinator, and a subcommittee of the Jersey
City Area Council composed of Tom Nickerson, representing JCAC; Peter Van Brunt,
representing the Diocese of Newark; the Rev. Isaac Presaud and Carol Arnold,
representing St. Augustine's.
That a committee of three people from Council, to be named, will work during
the summer with the leaders of the new St. Augustine's to respond to planning
issues raised so far. This report will be presented to Diocesan Council in September.
That the above mentioned subcommittee mentioned in #1 above, plus the accountant
and planning group of the new St. Augustine's meet with John Zinn, Treasurer
of Convention, to determine the optimum method of financing for upfront "soft" costs
(legal fees, permits, etc.) and construction costs.
Be it further resolved that should financing methods other than a draw down of
funds held by the trustees be determined to be more fiscally sound, the approval
methodology outlined in point 1 above is similarly authorized .
Be it further resolved that the Jersey City Area Ministry will present monthly
reports to Diocesan Council of progress and monies expended.
Supporting information: This project has already been approved by Diocesan Council.
These resolutions provide a mechanism by which funding is to be authorized and
monies expended—a step necessary to go before the Planning Committee of Jersey
City and other requisite approving agencies. It is anticipated that upfront "soft" costs
involved in the permitting and approval processes will be incurred over the next
3-9 months, and that actual construction will begin in the spring of 2000 with
a completion date of December, 2000.
The motion was adopted.
CAMP & CONFERENCE CENTER
Mr. John C. Lynch, Camp and Conference Center Committee chair, provided a status
report on the project which was on target for January 2000. Architectural drawings
were completed, a site plan approved, site engineering work completed, articles
of incorporation filed and finances in place. There will be need for some level
of subsidy in the diocesan budget to meet our share of the costs of the center.
The endowment that had been used for the joint venture and the camp operations
would need to be replaced by diocesan budget support . There will be approximately
half a million dollars of renovations costs over the next several years for swimming
pools, cabin renovations and other improvements. Our share would not be needed
until we were ready for a major capital funds campaign. The members from the
diocese on the joint committee were Mr. Jack Lynch, Ms. Christina Hembree, The
Rev. Mark Lewis, Mr. Peter Van Brunt and Bishop Jack McKelvey.
He asked for a motion to authorize release of the second $50,000 from the Camp
Endowment Fund for the diocese's share of the project development. The 124th
Diocesan Convention approved an expenditure of up to $100,000. The released funds
would be spent only if needed. It was moved by The Rev. David Badgley and seconded
by The Rev. Dr. Robert Schiesler to release the additional $50,000. The motion
was adopted.
YOUTH MINISTRIES & BEISLER/EAGLES
NEST CAMP
The Rev. Richard Bardusch and The Rev. Cooper Conway made the presentation. Rich
reported that this year was his third summer with the camp. Planning was ahead
of schedule. Registrations were up to 800 and expected to break 1000 by the next
two weeks; the projected goal had been 950. Many of the traditions from ENC would
continue at the new camp, such as the Christian Education component, while some
Lutheran would also be incorporated into the camping experience.
Cooper reviewed the schedule for the next year. There would be more adult training,
including an overnight session. Faith development for children will be deepened
and enlarged through Happenings and training sessions and a program called Cristophani.
The night watch program at St. John the Divine Cathedral will be held again next
March 10.
Bishop McKelvey commended the Camp Committee and Rich Bardusch for their abilities
in handling the change and the growth of the camp through the joint venture.
EPISCOPAL COMMUNICATIONS
- THE RT. REV. JOHN P. CRONEBERGER
Reported on the transition meeting of new bishops in the church that he recently
attended. Seven new bishops were meeting to discuss issues of common concern.
PARTNERS FOR ENVIRONMENTAL
QUALITY
The Rev. Dr. Franklin E. Vilas reported on the formation and work of PEQ – an
interfaith 501(c3) corporation which had begun to make the voice of the religious
community known at the state level and elsewhere. The Diocese of Newark was a
dues paying member of the organization.
He explained the reasons for PEQ's concern with electric deregulation. Everyone
will be affected by the deregulation. We will be able to select electric provider
between August 1 and October 1. Rates will drop 5% and then electricity will
be sold on the open market. The cheapest energy will probably come from Ohio
which was an unregulated state, which meant that the energy was produced from
polluting coal burning plants. The pollution doesn't stay in Ohio. It had presented
health problems here, as shown by the increase of asthma cases. Hopefully, PEQ
will provide aggregate buying power within the religious community. Congregations
and individuals can become members of PEQ. PEQ will provide information on who
are the most polluting providers and can supply speakers for forums.
STEERING COMMITTEE - SUMMER
AUTHORIZATION RESOLUTION
Ms. Diane Kaczmarek moved on behalf of the Steering Committee the following resolution:
RESOLVED, that the authority to act on behalf of the Diocesan Council during
the months of July and August 1999 be given to the Steering Committee in agreement
with the Bishop(s) in the event that a decision must be made during the summer
recess. Any such actions will be reported to the Council at its September meeting.
The motion was adopted.
STEERING COMMITTEE - ACTS/VIM
BOARD VACANCY
Ms. Diane Kaczmarek moved on behalf of the Steering Committee the following person
to be ratified to the Acts/Vim Board, Class of 2000, to fill a vacancy until
the Diocesan Convention 2000: The Rev. Wayne Riley, St. James', Hackettstown.
The motion was adopted.
STEERING COMMITTEE - VISITATIONS
WITH VESTRIES/EXECUTIVE COMMITTEES
Council visitation sheets were distributed. Ms. Kaczmarek explained that members
were expected to contact the churches early to set up the fall meetings. Training
would be done in September meeting.
STEERING COMMITTEE - CONVENTION
RESOLUTIONS REPORT
Ms. Diane Kaczmarek distributed a letter written for publication to all deputies
of convention. The letter addressed the status of JPIC resolutions adopted at
the 124th Convention.
STEERING COMMITTEE - PLANNING
DAY
A summary report of the planning day held on May 22 was distributed to all members.
EPISCOPAL COMMUNICATIONS
- THE RT. REV. JACK M. MCKELVEY
Reported on his visit with Sammy Sousa last week at Wrigley Field. Mr. Sousa
autographed a baseball owned by Bishop McKelvey and his brother that had signatures
of other record home run hitters.
The benediction was pronounced by Bishop Croneberger.
The meeting was adjourned at 8:45 p.m.
Respectfully submitted,
Michael Francaviglia,
Secretary
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