Present: Bishop McKelvey, Presiding
Officer; Mr. John Zinn, Treasurer; Mr.
Michael Francaviglia, Secretary
Bishop's Appointments: Mr. Steven Boston; The Rev. Margaret Gunness;
Mr. Michael James; Mr. Russell Murphy; The Rev. Scott Hoogerhyde
Elected by Convention: The Rev. Emory Byrum; Ms. Peg Dengel; Ms.
Kathy Ganim; Mr. William Heick; The Rev. Canon Angela Ifill; The Rev. Scott
Kallstrom; The Rev. Harry Smith
Elected by Districts: The Rev. Caroline Bruschi; Mrs. Patricia Cumberbatch;
The Rev. Lawrence Falkowski; The Rev. John Hartnett; The Rev. Rose Hassan;
Mr. Scott Helsel; Ms. Diane Kaczmarek; Ms. Dagi Murphy; The Rev. Ashley Neal;
The Rev. William Parnell; The Rev. William Potter; Mr. Junius Powell; Mr.
Robert Simmons; The Rev. Steven Steele; Ms. Mary Sunden; The Rev. Gordon
Tremaine; Ms. Jean Wadnik; Ms. Nancy Weidbrauk; Mrs. Virginia Whitehouse
Absent: The Rt. Rev. John S. Spong (sabbatical leave); Mr.
E. Kim Byham; Ms. Cheryl Notari; The Rev. Mark Lewis; Ms. Pamela Lindquist;
The Rev. Dr. Franklin Vilas
Others present: Ms. Clara Horsley; The Rev. Edward Hasse; The Rev.
William Guthrie; Mr. John Taylor; Mr. James Grimstead
The meeting was called to order at 7:10 p.m. by Bishop McKelvey. The Rev.
John Donnelly, rector, welcomed the Council members, and introduced members
of the parish who provided the meal and organized the worship service. Mr.
Dennis Crimi, Warden, welcomed the Council and gave witness to the meaning
of St. Michael's in his life and the life of his family.
AGENDA
It was moved and seconded to adopt the agenda with the addition of an announcement
by Mr. Michael James. The motion was adopted.
MINUTES
It was moved and seconded to accept the minutes for the September 10, 1997,
meeting. The motion was adopted.
EPISCOPAL COMMUNICATIONS: BISHOP MCKELVEY
- Reported on the opening of Grace Kids at Grace Van Vorst, Jersey City,
an after school program daily and on weekends. 50 children and over two
dozen adults were at the ribbon cutting ceremony.
- Commented on the new church building at St. Thomas', Vernon, opened this
past Sunday.
- Advised that discussions continue with the NJ Lutheran Synod on joint camp
and conference center. Committees on camping, family camp, special needs camp,
and conference center usage were being formed. In December a status report
will be presented to Council before going to the Convention.
- Asked for a volunteer to serve on the governing board of the NJ Council
of Churches.
- Reported on a telephone conversation earlier in the day with Bishop Spong
who sent his warmest regards. Bishop Spong's cousin, William R. Spong,
passed away during the day.
COMMISSION ON MINISTRY
The Rev. Edward Hasse, COM Chair, presented a report on the work of the Commission
on Ministry. He outlined the process for aspirants, postulants and candidates
from exploration through ordination, including the General Ordination Examination.
Planning was underway for another conference on the recruitment of minority
candidates. The Task Force on Total Ministry had begun its work and would be
reporting to the 125th Convention.
TECHNOLOGY COMMITTEE
Mr. Steven Boston, Chair, distributed a report on the background, projects
and goals of the committee. The goals were short and long term as presented.
The committee sought the support and endorsement of the goals as part of the
ministry of the diocese. Site licensing for church use of software packages
was in discussion with vendors. Workshops will continue for web page development.
The Rev. Steven Steele moved that the Council accept and support the goals
of the Committee as presented. The motion was adopted.
EPISCOPAL CHURCH WOMEN
Mrs. Clara Horsley reported on the schedule of upcoming meetings for ECW over
the coming months to discuss ministry opportunities. Volunteers were needed
at both the Newark and Paterson sites of North Porch. "How to set up an
ECW chapter in your church" information was available.
STEERING COMMITTEE- COMMISSION ON RACISM
Ms. Dagi Murphy distributed a flyer on the Combating Racism Conference scheduled
for Saturday, November 8, sponsored by the Mission to Dismantle Racism. Leaders
of all groups and organizations within the diocese were invited and urged to
participate. Workshop leaders will be the Rev. Charles Virga and Ms. Saundra
Peters, authors of the National Church's Dialogue on Racism. Important that
there be Diocesan Council participation.
STEERING COMMITTEE- ST. PAUL'S CHURCH, NORTH ARLINGTON
Mr. William Heick reviewed the situation presented to Council regarding the
reclassification of St. Paul's. At last month's meeting, the church asked for
a two month delay in the vote, a request that was agreed by Council. He reported
that the church did have outstanding pledge payments to the diocese. The Rev.
Lawrence Falkowski reported that he had conversations with the Rev. Tom Logan,
interim, and a development report should be received in time for the November
meeting.
STEERING COMMITTEE- JERSEY CITY MINISTRY
Mr. William Heick provided a status report on the ongoing evaluation of the
property selected for the new church building.
STEERING COMMITTEE- CHRIST CHURCH, EAST ORANGE, LOAN GUARANTEE
Mr. William Heick read from a letter received from Christ Church asking for
a loan guarantee for the recasting of the mortgage on the church rectory. The
guarantee would get them a more favorable rate from the bank. He read the memo
of agreement between Council and churches that had been used in prior guarantees.
The Rev. William Guthrie, Rector, Mr. John Taylor, Treasurer, Mr. James
Grimstead, and Mr. Robert Simmons, Senior Warden, addressed the Council.
The mortgage from the PNC Bank was originally negotiated four years ago at
the time of purchase of the property. The interest rate would be reduced
with a loan guarantee. Repayment was not a burden for the church, but the
lower rate was a prudent and wise move. Currently, ten and a half percent
was the rate; guarantee would bring it down to 8 and ½; without it,
the rate would be 9 and ½. The payout was 15 years.
Concern was expressed over the growing number of requests for guarantees
that had come before Council in recent times.
The Rev. William Potter moved that a formal policy regarding loan guarantees
be drafted by the Steering Committee. The motion was adopted.
The Rev. Caroline Bruschi moved the request for a Diocesan Council guarantee
for the loan so that Christ Church could recast the mortgage. The motion was
adopted.
STEERING COMMITTEE - ST. PETER'S, WASHINGTON LAND PURCHASE
Mr. William Heick read from a letter received from the Rev. Caroline Bruschi
reporting that land had been purchased in late fall fpr eventual construction
of a new church building. St. Peter's sought the disbursal of the funds that
were its share after the sale of Ascension, Bloomfield, under the terms of
the resolution adopted by Diocesan Council on October 12, 1994.
The Rev. Bruschi displayed a map that showed the location of the purchased
six acre parcel. Access was available to Route 57 from two roads; the site
was visible from a major highway, without the hassle of being on a state
highway. Building was planned for the future, possibly five to ten years
down the road. The purchase was made before land prices continued to escalate.
Currently, the land was leased to a farmer. Housing development in the surrounding
area was a great possibility. The total price was $60,000.
The Council resolution adopted in 1994 called for the Trustees to purchase
the property and hold title until St. Peter's was ready to build. If the church
was not built within ten years, the Trustees could sell the property.
The Rev. Bruschi assumed that the congregation understood that the Trustees
will hold title in trust and would be buying the deed from St. Peter's when
the funds from the sale disbursed.
The Rev. Ashley Neal moved that the funds be released subject to the Vestry
of St. Peter's, Washington, approving the proper instrument or appropriate
documentation to convey the property to the Trustees to be held in trust, and,
further, to be in compliance with the conditions of the original resolution.
The motion was adopted.
TREASURER'S REPORT
Mr. Zinn presented the Treasurer's Report. It was moved and seconded to accept
the report, subject to audit. The motion was adopted.
Mr. Zinn announced that a Treasurer's workshop was scheduled for Saturday,
November 15, St. Agnes', Little Falls, 9 a.m. to 3 p.m.
MEDICAL INSURANCE
Mr. John Zinn moved the following resolution:
Resolved that effective January 1, 1998 the Diocese of Newark enter
into a group medical insurance contract with Prudential Healthcare said contract
to consist of a point of service/managed care plan and a health maintenance
organization. This contract will replace the current contract with Aetna/U.S.
Healthcare; and, be it further
Resolved that effective January 1, 1998 the Diocese of Newark
will offer 4 tiers of coverage for the Prudential and HIP contracts, the
four categories will be single, husband and wife or domestic partnership,
parent and children and family.
The motion was adopted.
Mr. Zinn explained that for over 10 years the Diocese of Newark has maintained
its indemnity or managed care plan with the Aetna Life Insurance Company. This
had been a satisfactory relationship, but problems had developed with that
relationship especially since the merger of Aetna with U.S. Healthcare. This
began with the Aetna's refusal to provide domestic partnership coverage which
among other things led to the decision to enter a bid process for the plan.
That process began this summer and while other carriers had submitted the proposals
as of October 2nd the Insurance Committee had yet to receive a proposal from
the Aetna. It appeared that the company was shifting toward the HMO model of
U.S. Healthcare and was no longer interested in the relationship.
Proposals were requested from the Church Life Insurance Company, Prudential,
Blue Cross/Blue Shield and from some other sources. Proposals were requested
solely for the Aetna plan, there was no desire to change the existing HMO relationships.
Church Life indicated that the timing made it impossible for them to make a
proposal, but that they would like to talk with us in the future. Proposals
were received from Prudential, Blue Cross and Rapp & Co, which arranged
split funded plans. All of the carriers were willing to provide coverage for
domestic partnerships similar to that provided by the existing HMO's.
Acceptance of the Prudential proposal was recommended for several reasons.
It represented an overall improvement in benefits, a better hospital network
and a comparable physician network. Finally it was very competitive financially.
The Prudential plan would basically be a replacement for the existing Aetna
plan. That is, it provided both in network and out of network benefits with
significant financial incentives to stay in network. Under this arrangement
Prudential will also offer its HMO plan which was another option for those
covered by the plan. In terms of benefit improvement the Prudential proposal
included the following:
- A $250 reduction in the family deductible.
- Outpatient mental health out of network benefits will basically provide
partial reimbursement for one visit a week compared to a visit every two
weeks for the Aetna plan.
- A significant improvement in prescription drug coverage, full coverage
after a $5 co-pay in network and 70% after a $50 deductible out of network.
The network was very extensive including most major chains. The current
plan pays 70% after the $250 deductible.
Other Issues:
The Prudential plan included the same pre-certification requirements as
the Aetna plan, but with much more substantial penalties for failure to comply,
a 20% penalty for hospital admissions and 50% for other procedures compared
to $400 and $200 under the Aetna plan.
The Prudential plan reduced the lifetime inpatient emotional and mental maximum
by $25,000 to $50,000. This had been reached very seldom and it was believed
that this level of coverage would be sufficient. (Included in documentation
would be handling of circumstances that go above the cap.)
Networks:
Like any managed care plan a key factorwais the network of primary care
physicians and hospitals. A poll was made of those currently enrolled in
the Aetna plan. We were able to contact 55 of the 70 participants, of that
group almost 80% had primary care physicians who were also in the Prudential
network. Prudential had a more extensive hospital network than the Aetna.
Tier Rates:
Historically the Diocese's group plans had offered only two categories
of coverage, single and family. This meant that the same rate would be paid
for coverage for two people as for eight. Obviously it was more equitable
for a church to pay for coverage for the actual number of people in a family.
The difficulty in moving to such an arrangement was that cost was being shifted
from the new categories to the cost of family coverage.
In the case of the Prudential plan we had a rare opportunity to offer tier
coverage without significantly increasing the current cost of family coverage.
On a two tier basis the Prudential proposal represented a 7-11% reduction in
the existing cost. Moving to a four tier basis represented additional savings
for two party coverage and/or coverage for a parent with children. At the same
time the cost of the family plan will increase by only $77 or about 1% over
the current family rate. The four tier rates compared to the current rates
were listed
. The Prudential HMO rates will also be offered on a four tier basis.
The situation with HMO's was slightly different. In the case of the HIP
HMO the Diocese was community rated that is it was not a separate group where
lower costs in one category must be offset with higher costs in another.
The issue then became the number in each category. In the HIP plan there
were only three "family" plans so that there were more cost reductions
than cost increases. The HIP rates were also listed
.
Unfortunately the situation was not the same with the Cigna HMO. At this
point the Insurance Committee was only working with projected rates which makes
the situation less clear. But the analysis indicated that the cost increase
to the family plan would significantly exceed the cost savings to those moving
to other categories. We also had a significant number of "family" plans
so that some churches would be adversely effected. This will continue to be
followed and such a change could be made at a future date. It was also be noted
that the Prudential HMO rates are very competitive and that some in the Cigna
HMO may choose to move to Prudential to take advantage of the four tier pricing.
The major risk in this change was being hit with a major price increase in
1998 that was unrelated to our claims experience. This could lead to repeating
the process in 1998 which was difficult for those covered by the plan. It may
be, however, that we were entering a period where long term relationships like
the Aetna relationship were less common and more frequent changes was more
the norm. The committee believed that this was an acceptable risk.
Insurance Committee members were: Mr. Steve Boston, The Rev. Canon Leonard
Freeman; Ms. Mary Sunden; Ms. Shirley Gerhardt; Mr. Art Bledsoe; Mr. Scott
Helsel; The Rev. Bill Parnell; Mr. Charles Hayes; Mr. John Zinn.
TRAINING FOR VESTRY/EXECUTIVE COMMITTEE VISITS
The Rev. John Hartnett distributed a list of assignments. He reviewed the process
of calling on the churches.
DISTRICTS
Mr. Michael James reported on the 250th Anniversary Celebration of the Cathedral.
The Rev. Canon Angela Ifill reminded members about the October 23, 1997,
program and worship service at Trinity & St. Philip's Cathedral to inaugurate
the companion diocese relationship between the Diocese of Lebombo, Mozambique,
and Newark. The Rt. Rev. Denis Sengulane will be present.
The benediction was pronounced by Bishop McKelvey.
The meeting was adjourned at 9:05 p.m.
