Wednesday, November 11, 1998
Christ Hospital, Jersey City, New Jersey
Approved Minutes of Regular Monthly Meeting

Present: The Rt. Rev. John S. Spong, President; The Rt. Rev. Jack M. McKelvey, Vice President; Mr. John Zinn, Treasurer; Mr. Michael Francaviglia, Secretary

Bishop's Appointments: Mr. Steven Boston; The Rev. Scott Hoogerhyde; Mr. Michael James; Ms. Diane Kaczmarek; The Rev. Dr. Robert A. Schiesler; The Rev. Dr. Franklin Vilas

Elected by Convention: Mr. E. Kim Byham; The Rev. Emory Byrum; The Rev. Scott Kallstrom; The Rev. Harry Smith;

Elected by Districts: The Rev. William Coats; Mr. Richard Fifield; Mr. Scott Helsel; The Rev. Mark Lewis; Ms. Pamela Lindquist; Ms. Dagi Murphy; The Rev. Kenneth Near;
Mr. Christopher Neglia; The Rev. William Parnell; Mr. Junius Powell; Ms. Susan Schink; Mr. Robert Simmons; The Rev. Steven Steele; Mrs. Virginia Whitehouse

Absent: The Rev. Susan Butler; The Rev. Kevin P.J. Coffey; Ms. Dorothy Gould; The Rev. Margaret Hodgkins; The Rev. William Lantz; The Rev. Isaac Persaud; Mr.
Michael F. Rehill; Ms. Lynn Tyler; Ms. Mary Sunden; Ms. Nancy Weidbrauk; The Rev. Fain Webb. On leave of absence: The Rev. Lawrence Falkowski

Others present: Ms. Bonnie Magnuson, The Rev. Lucy Ann Dure, Christian Education Commission; Ms. Barbara Conroy, Acts/Vim Board; Mr. Dan O'Connel, Ms. Barbara
Davey, The Rev. Richard Chasse, Ms. Cindy Brady, Christ Hospital; Mr. Thomas Nickerson, The Rev. Geoffrey Curtiss, Mr. Peter Van Brunt, Mr. Robert Miller, Jersey
City Episcopal CDC; The Rev. Dr. David Hamilton, Ms. Bernice Mays, Companion Diocese Relationship Committee.

Mr. Dan O'Connel, Christ Hospital President and CEO, addressed the Council.

He reported that for 126 years the hospital was in operation and affiliated with the Episcopal Diocese of Newark. Financial pressures were felt by all hospitals in New Jersey, including Christ Hospital. Its focus had been on providing health care locally in Hudson County. Discussions had been held with other care providers regarding an affiliation, but a decision had not been reached. Pastoral care services were expanded within the hospital and into the community. The parish nurse program began with the Episcopal churches; a program of wellness and prevention to hold health care costs down.

The meeting was called to order at 7:15 p.m. by Bishop Spong.

AGENDA

It was moved and seconded to adopt the agenda with the deletion of The Sabbath for a New Millennium Task Force Report and the addition of an announcement by the Rev.
William Parnell. The motion was adopted.

MINUTES

It was moved and seconded to accept the minutes for the October 14, 1998, meeting. The motion to accept the minutes was adopted.

EPISCOPAL COMMUNICATIONS: THE RT. REV. JOHN S. SPONG

Welcomed the guests who were scheduled to make presentations and reports to Council tonight.

Announced the appointment of an Episcopal Compensation Committee, whose ex officio members were the president of the Trustees, the president of the Standing Committee and the vice president of Diocesan Council.

Reminded members of the upcoming consecration of the bishop coadjutor on Saturday, November 21.

Remembered Peg Dengel, member of Diocesan Council and other groups, who died last week. The memorial service was scheduled on Thursday, November 12 at 3 p.m., St.
Paul's Church.

The Evensong Service for receiving diocesan pledge cards will be held on Sunday, December 6, 3 p.m. Clergy and lay leadership were invited to attend.

TREASURER'S REPORT

Mr. Zinn presented the Treasurer's Report. Finances were on target. It was moved and seconded to accept the report, subject to audit. The motion was adopted. The budget process had begun and hearings were scheduled for Saturday, December 5 at Episcopal House.

MORTGAGE RESOLUTION

Mr. John Zinn moved the following resolution:

RESOLVED, that the Diocesan Council directs that a total of $700,000 be invested in Fund 2 of the ECLF in order to fund the permanent mortgage on 31 Mulberry Street. The source of these funds will be current investments in Fund A of the Diocesan Investment Trust. The breakdown of the investments will be $300,000 each from both ACTS/VIM and the Ward J. Herbert Fund and $100,000 from the Paul Moore Outreach Fund. Interest will be paid on these funds equal to the quarterly dividend rate for Fund A of the DIT so that there will be no reduction in the income received by the three funds.

Supporting Information: The renovation and move to 31 Mulberry Street is now complete and it is time to convert the balance of the construction loan into a permanent mortgage. Listed below is a summary of the Sources and Uses of Funds for this project. This covers the total cost of the project beginning in 1994 and running through this year. All of the funding has been received except that the balance on the construction loan is currently $755,000.

On the expenditure side the remaining major issue is the need for a repair and replacement reserve, We have successfully completed the move to a new headquarters
which represents a dramatic improvement over the situation that we left at 24 Rector Street. However, it is clear that any building will deteriorate if adequate provisions are not made for long term maintenance.

Included in this proposal is the establishment of a repair and replacement reserve with initial funding of $83,000 from the permanent financing. The current projection is that we will receive an additional $31,000 in pledges to the capital campaign. It is proposed that
the first $17,000 be added to the reserve to bring initial funding to $100,000. Additional pledges collected would reduce the mortgage. The goal will then be to add to the reserve each year from the diocesan budget. The reserve will be for long term repair and
replacement including major systems such as HVAC and roof repair and replacement. The reserve will not be used for basic annual maintenance or for new capital expenditures.

Under this proposal the long term mortgage will be $700,000 or $100,000 less than was originally anticipated. Under this proposal the mortgage will be funded through an alternative financing tied into the rate on Fund A of the DIT. At a conservative rate of 6%
the total annual debt service will be about $70,000 of which the Council's portion would be approximately $17,500, again lower than anticipated. The proposed investments from the three funds will be approximately 50% of their total investment in Fund A. This is similar to the refinancing of the DOM debt which has realized a substantial savings in interest expense.

Sources

New Jersey Performing Arts Center $609,000
Capital Campaign 340,000
Ascension, Bloomfield Endowment 124,000
Burrell Bequest 182,000
Insurance Proceeds 75,000
Permanent Financing 700,000
Miscellaneous Sources 20,000

Total 2,050,000

Uses

Renovations 1,528,000
Equipment & Furnishings 248,000
Transitional Expenses 100,000
Construction Interest 41,000
Trinity & St. Philip's Cathedral 50,000
Repair & Replacement Reserve 83,000

Total 2,050,000

This arrangement had previously been approved by the Trustees and was being proposed to the Council for approval so that it would be in place by January 1st.

The motion was seconded and adopted.

It was noted that the creative financing method was the idea of the Rev. Geoffrey Curtiss presented several years ago.

JERSEY CITY EPISCOPAL COMMUNITY DEVELOPMENT CORPORATION

Mr. John Zinn and Mr. Thomas Nickerson, Executive Director of the JCECDC, addressed the Council and introduced board members Robert Miller, Peter Van Brunt,
Barbara Davey, The Rev. Geoffrey Curtiss, Roger Williams, Mary Prioleau. The CDC formed two years ago. The start up financing was provided by the diocese through Jersey
City Strategy and Christ Hospital. It was moved, seconded and adopted that a letter of gratitude be sent to Mr. Dan O'Connell for the support of Christ Hospital.


The programs were described -- after school programs, community development, partnership with Corpus Christie Ministries, collaborative work with other organizations,
tenant organizations. The initial support of the hospital was critical for the CDC to begin its operations in the early days. The hospital provided financial assistance and office space. Resurrection House had 28 apartments. The total of housing units served over 500 people.

COMPANION DIOCESE RELATIONSHIP COMMITTEE

The Rev. Dr. David Hamilton, Chair, introduced the members of the committee: the Rev. William Parnell, Mrs. Virginia Whitehouse, Ms. Bernice Mays, Ms. Dorothy Fowlkes, Ms. Susan Kynor. The first pump was expected to be installed in early January. The committee was quite diverse and representative of the diocese. The committee was warmly received by the people and leaders of the diocese.

The installation of many pumps was a goal of the committee and a campaign to raise funds would begin in Lent. Collegial relationships with companion congregational relationships will be encouraged. Contacts with seminaries and medical liaisons for health care issues will be established.

The infrastructure of the country was destroyed after 17 years of civil war which followed a nine year war for independence. There had been peace only for the last six years. "Companion" means to walk with, and the committee will encourage others to do so with the people in Mozambique. Hospitality was widely exhibited. Many committee members gained a new respect for the abundance of water available here and the educational prospects open to us in comparison to Mozambique. The Christian Council under the leadership of Denis Singulane was responsible for bringing together the political opponents at a rally to commemorate peace and to pledge to work together for the benefit of the whole company.

CHRISTIAN EDUCATION COMMISSION

Ms. Bonnie Magnuson, Chair, and the Rev. Lucy Ann Dure, member, made a presentation. The Bishop Anand Resource Center had a new director, Kitty Kawecki. The Center will go on line in the near future to answer requests and questions. Godly Play was a new education program and was demonstrated for the members by Lucy Ann.

ACTS/VIM BOARD RECOMMENDATIONS

Ms. Barbara Conroy presented the recommendations. It was moved and seconded to adopt the recommendations and refer them to the December meeting for ratification. The
motion was adopted.

AV-98-13 Companion Diocese Relationship requested $5,000
Living Water for Libombos
Motion to fund: 8 yes, 3 no.
Motion to fund $4,000: 11 yes.

AV-98-14 Newark, Grace Church requested $37,300
Grace Choir Boys After School Program
Motion to fund: 11 yes.
Motion to fund $9,000: 11 yes.

AV-98-15 Paterson, St. Paul's Community Devel. Corp. requested $20,000
Emergency Shelter for Homeless Men
Motion to fund: 11 yes.
Motion to fund $10,000: 11 yes.

AV-98-16 Hoboken, All Saints' requested $20,000
Hoboken Helping Hands
Motion to fund: 9 yes, 2 no.
Motion to fund $10,000: 11 yes.

AV-98-17 West Milford, Incarnation requested $30,000
The Work Room: Highlands CDC
Motion to fund: 10 no, 1 abstention.

AV-98-18 Washington, St. Peter's requested $9,300
Youth Area Recreational Development Yard
Motion to fund: 8 yes, 2 no, 1abstention.
Motion to fund $6,000: 11 yes.

AV-98-19 Episcopal Church Women requested $9,300
North Porch Facility at St. John's, Dover
Motion to fund: 11 yes.
Motion to fund $5,000: 11 yes.

AV-98-20 Belleville, Christ Church requested $4,750
Care Closet
Motion to fund: 11 yes.
Motion to fund $3,000: 11 yes.

AV-98-21 DOM/North Bergen, Transfiguration requested $3,000
Computer Awareness Program
Motion to fund: 2 yes, 8 no, 1 abstention.

AV-98-22 Diocese of Newark requested $5,000
Food For Friends
Motion to fund: 8 yes, 3 no.
Motion to fund $2,800: 11 yes.

AV-98-23 Newark, St. James CDC requested $7,500
Housing Resource Center
Motion to fund: 7 yes, 4 no.
Motion to fund $5,000: 11 yes.

AV-98-24 Hackensack, Christ Church requested $15,000
Peter's Place Advocacy and Referral
Service Motion to fund: 11 yes.
Motion to fund $9,500: 11 yes.

AV-98-25 Hope, St. Luke's requested $14,000
St. Luke's House: Caring For Children
Motion to fund: 10 no, 1 abstention.

AV-98-26 Commission on Aging requested $10,000
Abuse, Neglect & Exploitation Training Project
Motion to fund: 6 no, 5 yes

AV-98-27 Diocese of Newark requested $5,900
Congregational Reporting & Statistical Analysis
Motion to fund: 2 yes, 8 no, 1 abstention

AV-98-28 Phillipsburg, St. Luke's requested $7,000
Luke's Pantry
Motion to fund: 10 yes, 1 no
Motion to fund $5,000: 11 yes.

AV-98-29 Newark, Apostles' House requested $12,775
Emergency Shelter for Families Program
Motion to fund: 11 yes.
Motion to fund $9,500: 11 yes.

Total Recommendation to Diocesan Council $78,800

WARD J. HERBERT FUND RECOMMENDATIONS

Mr. Michael James presented the recommendations. It was moved and seconded to adopt the recommendations and refer them to the December meeting for ratification. The
motion was adopted.

WJH-98-11 Bloomfield/Glen Ridge, Christ Church requested $4,993
Boiler Replacement
Motion to fund: 13 yes.
Motion to fund $1,700: 13 yes

WJH-98-12 Bayonne, Calvary requested $4,650
Boiler Replacement
Motion to fund: 13 yes.
Motion to fund $3,200: 13 yes.

WJH-98-13 Washington, St. Peter's requested $40,000
Rectory Renovation
Motion to fund: 13 yes.
Motion to fund $5,000: 13 yes.

WJH-98-14 Jersey City, Grace Van Vorst requested $5,000
Roof Repairs, Fire Alarm, Wiring
Motion to fund: 13 yes.
Motion to fund $2,000: 13 yes.

WJH-98-15 West Orange, St. Mark's requested $24,000
Rectory Repairs
Motion to fund: 12 no, 1 abstention.

WJH-98-16 Teaneck, St. Mark's requested $24,000
Roof Replacements
Motion to fund: 13 yes.
Motion to fund: $8,200: 13 yes.

WJH-98-17 Montclair, Trinity requested $5,000
Church & Parish Hall Repairs
Motion to fund: 13 yes.
Motion to fund $3,750: 13 yes.

WJH-98-18 Bergenfield, All Saints' requested $1,580
Handicapped Access
Motion to fund: 13 yes.
Motion to fund $1,580: 13 yes.

WJH-98-19 Belleville, Christ Church requested $13,760
Church Repairs
Motion to fund: 13 yes.
Motion to fund $10,000: 13 yes.

WJH-98-20 Oradell, Annunciation (withdrawn)

WJH-98-21 East Orange, Christ Church requested $9,413
Handicapped Restroom Facility
Motion to fund: 13 yes.
Motion to fund $2,500: 13 yes.

WJH-98-22 Ringwood, Good Shepherd requested $2,131
Electrical and Plumbing Work
Motion to fund: 13 yes.
Motion to fund $2,131: 13 yes.

WJH-98-23 Irvington, Trinity requested $2,850
Church Boiler
Motion to fund: 13 yes.
Motion to fund $2,850: 13 yes.

WJH-98-24 Union City, St. John's requested $18,742
Church and Parish Hall Roofs
Motion to fund: 13 yes.
Motion to fund $6,400: 13 yes.

WJH-98-25 Mendham, St. Mark's requested $22,145
Rectory Rehabilitation
Motion to fund: 13 yes.
Motion to fund $7,789: 13 yes.

WJH-98-26 Montclair, St. Luke's requested $19,891
Boiler Replacement, Window Repairs, Gutter Work Motion
to fund: 13 yes.
Motion to fund $5,000: 13 yes.

WJH-98-27 South Orange, St. Andrew & Holy Communion requested $43,500
Church Repairs & Restoration
Motion to fund: 13 yes.
Motion to fund $10,000: 13 yes.

WJH-98-28 Sparta, St. Mary's requested $15,153
Roof & Boiler Replacements
Motion to fund: 13 yes.
Motion to fund $5,200: 13 yes.

WJH-98-29 Hackensack, Christ Church requested $5,000
Rectory Windows and Painting
Motion to fund: 13 no.

WJH-98-30 Hope, St. Luke's requested $6,570
Church Roof Replacement
Motion to fund: 13 yes.
Motion to fund $ 2,250: 13 yes.

WJH-98-31 Kearny, Trinity requested $4,000
Retaining Wall & Parish Hall Skylights
Motion to fund: 13 yes.
Motion to fund $2,500: 13 yes.

WJH-98-32 Dover, St. John's requested $1,000
Thrift Shop Repairs
Motion to fund: 13 yes.
Motion to fund $1,000: 13 yes.

WJH-98-33 Nutley, Grace requested $12,500
Roof Repair, Tower Stonework
Motion to fund: 13 yes.
Motion to fund $4,250: 13 yes.

Total Recommendation to Diocesan Council: $87,300

The changes in evaluation procedures were recommended for ratification as outlined in the minutes from the Ward J. Herbert Board Meeting. The following changes were
ratified:

The Board adopted the following additions to its operating guidelines. These will be presented to the Diocesan Council for ratification.

- Future submission of applications for new projects that total over $5,000 must include at least two estimates.

- Before new applications are accepted by the Board from churches that have outstanding grants, a financial accounting must be received before additional funds will
be disbursed.

- In the event a project is not completed or is terminated, all remaining funds must be returned to the Board together with a written report of reasons of termination.

- Where funds are committed to a project and that project does not start within 12 months or the funds are not spent within 12 months, all funds will automatically
revert back to the Ward J. Herbert Fund account for redistribution in the next granting period. The original proposal may be resubmitted, although it would then become one of any received in the particular granting period.

EPISCOPAL CHURCH WOMEN

Mrs. Clara Horsley reported briefly on upcoming events as outlined in The Voice.

CAMP & CONFERENCE CENTER

The Rev. Mark Lewis presented a status report on the development of the camp and conference center in conjunction with the Lutheran Synod of New Jersey.

He requested by motion an authorization for Project Development Expenditures. The resolution was to increase the amount previously authorized from $20,000 to $50,000.


The 124th Diocesan Convention authorized a resolution detailing the specific criteria for developing and establishing the Joint Camp and Conference Center with the New Jersey Synod of the Evangelical Lutheran Church in America. Among the criteria authorized was for the expenditure of up to $100,000 from the Camp Endowment Fund for a facilities appraisal and for the Diocese of Newark share of Project Development Expenses. On March 11, 1998 the Diocesan Council approved a request for up to $20,000 for this purpose. At this time, we would like for the Diocesan Council to increase this authorization to $50,000.

At this time we can identify the following estimated
expenditures: Facilities appraisal..............$ 1,500
(1) Preliminary engineering.......................16,500
(1a) Strategic Plan Development (consultant)...... 7,000
(2) Architect for Development of a Site..40,000 - 45,000
(3) Master Plan Wet Lands Delineation............ 25,000
(4) (Including State of New Jersey Letter of
Interpretation)
Total $90,000-$95,000
(1) Complete
(1a) Major portion of the work completed
(2) Underway
(3) Underway - Final cost depending on reports, models, etc. that may be required
(4) Being started

At the present time, either the Diocese of Newark or the Lutheran Synod are paying directly for the specific project expenses. It is our mutual understanding that at the formalizing of the Joint Venture all expenses will be "equalized" on a 50/50 basis. If the project should fail to proceed, the Diocese of Newark would be reimbursed for all such expenses (except the Facilities Appraisal) since the Lutheran Synod would need to have
this work done to proceed with their development of the Camp and Conference Center. Based on the above, we respectfully request the Diocesan Council to increase our authorization for our share of project development expenses from $20,000 to $50,000.

The motion was seconded and adopted.

STEERING COMMITTEE

Ms. Dagi Murphy announced that Council members will process at the consecration on November 21.

STEERING COMMITTEE - VESTRY/EXECUTIVE COMMITTEE VISITS

Reminded members of the visits' process. Susan Schenck reported on a visit made the evening before with Hackettstown and Budd Lake leadership. Evaluation sheets
were to be returned to Dagi.

STEERING COMMITTEE - 125TH CONVENTION RESOLUTIONS (JPIC)

Resolutions adopted by Convention asked Council to take action for which it had no authority. Where it was able, the Steering Committee began to work on the issues raised
in the resolutions. Ms. Martha Gardner, JPIC member and Jubilee Officer, will address the December meeting of Council. A full report would be made to the Diocesan
Convention in January.

RESOLUTIONS AD HOC COMMITTEE

Mr. Kim Byham, chair of the Resolutions Committee, presented an alternative report to the report that had been distributed in the member package.

PROPOSAL TO CHANGE THE RULES OF ORDER SECTION ON
RESOLUTIONS

Resolutions

The Committee on Resolutions shall be responsible for receiving all resolutions except those provided by standing committees and bodies required to report to this
Convention.

A. All resolutions to be considered for action bythe Annual Convention shall be submitted to the Secretary of Convention in writing and signed by a Deputy not less than seventy-five (75) days before the date of Convention. Resolutions should be submitted on white 8-1/2 x 11 paper, typed and double-spaced or in electronic format by disk or e-mail. Each should contain two sections: 1) the RESOLVED naming the desired action,
and a further RESOLVED, as appropriate, providing for the implementation of the resolution, if adopted; and 2) a brief statement or information in support of the
resolution.

Resolutions submitted by more than one Deputy must designate one Deputy as capable of agreeing to any amendments by the Committee or offered on the floor of Convention. After the expiration of the seventy-five (75) day deadline, the Secretary shall transmit to the Committee all resolutions submitted to him/her.

B. The Committee shall hold hearing(s) prior to Convention on all resolutions submitted timely. The Committee shall publicize at least eighty- five (85) days prior to Convention dates, place and time of its hearings, inviting submitters of all resolutions to attend. The Committee shall collate all resolutions dealing with obviously similar subjects and shall discuss such collation with the submitters.

C. Upon submission of any resolution that in the Secretary's opinion may have financial implications if adopted, s/he shall submit a copy to the Treasurer or Chief Financial Officer for review and comments. Upon submission of any resolution that in the Secretary's opinion may affect insurance, s/he shall submit a copy to the Chair of the Diocesan Insurance Committee for review and comments. Upon submission of any resolution that in the Secretary's opinion may have canonical or legal implications if adopted, s/he shall submit to the Chancellor for review and comments. Review and comments will be requested in time for the initial meeting of the Committee.

D. The Committee shall have the power to revise or modify any proposed resolution, and shall have the power, by a two-thirds vote of all committee members present and voting, to determine not to offer any proposed resolution on the floor of Convention.

E. The Committee shall submit its report to the Secretary sixty (60) days before the date of Convention with its recommendations for action upon each resolution as proposed or as amended or collated by the Committee. This report shall be mailed by the Secretary to each Deputation during the first week of January. All resolutions considered by the Committee will be included in the report, unless withdrawn by consent of the sponsoring Deputy. If a resolution to be offered to Convention has been amended by the Committee without the consent of the sponsoring Deputy, such amendment(s) will be clearly shown.

F. Any resolution which the Committee determines not to offer on the floor of Convention shall be permitted on the floor of Convention only by a majority vote of all Convention Deputies.

G. Resolutions will be permitted from the floor only when they carry a clear statement in writing of the circumstances that lead to the request for their consideration and only by a two-thirds vote. Such resolutions should be duplicated in advance by the presenter(s) with sufficient copies available for distribution to all convention delegates (650 copies are
needed).

H. Consent Calendar. It is recognized that certain resolutions may not require full debate prior to action by Convention. Accordingly, the Committee on Resolutions may propose that certain resolutions be included on a "Consent Calendar". Exclusion of any resolution on the Consent Calendar requires agreement of any three congregations to remove it. Any resolution included on the "Consent Calendar" shall not be subject to amendment
or debate, except that the sponsoring Deputy or his/her designee may speak to the resolution for a period not to exceed one minute.

Mr. Steve Boston accepted the alternate report and moved its adoption. The motion was seconded and adopted. The recommendation would be sent to the Rules of Order
Committee for their review and recommendation to the Convention of 1999.

JERSEY CITY STRATEGY

Bishop McKelvey presented a status report on the Jersey City Strategy Group and the Jersey City Area Council. Eventually, the JCAC will be ready to govern without the
need for the strategy group.

DISTRICTS

The Rev. William Parnell announced a remembrance service for Matthew Shepherd and James Burke tomorrow at Christ Church, Hackensack. He reported on a recent attack on a Syrian paper carrier that was racially based. Local clergy issued a statement decrying hatred and discrimination.

EPISCOPAL COMMUNICATIONS - THE RT. REV. JACK M. MCKELVEY

Reported on a conference scheduled for November 16 and 17 at Xavier Center, Madison, with clergy and lay leaders from within the state for training on how to engage the discussion on capital punishment. Every judicatory has stated that the death penalty was wrong. A news conference next week will be held for the issuance of the pastoral letter throughout the state of New Jersey by each denomination. It was believed that the death penalty worked to increase violence in society.

The benediction was pronounced by The Rev. Dr. Franklin Vilas.

The meeting was adjourned at 9 p.m.

Respectfully submitted,


Michael Francaviglia,
Secretary

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