Meeting — June 7, 2018

Diocese of Rhode Island

Commission on Finance

Meeting, June 7, 2018

St. Luke’s Church, East Greenwich

Present: Robert Batchelor; The Rev Erik Larsen; James Segovis; Stephan Sloan; The Rev. Peter Tierney.

Also present: Dennis Burton; Joan DeCelles; The Rev. Canon Linda Grenz; The Rev. Edwin Hallenbeck; Richard Sellers;  Richard Sayer, Esq. (telephone).

Guests: The Rev. Patrick Campbell, Rector; Ted Daly, Treasurer, Church of the Redeemer.

The meeting was called to order at 5:05 p.m. by Chair Tierney, who offered an opening prayer.

Minutes of May 3, 2018 were approved as distributed. Notes of changes in COF: Mr. John Candon, guest at May 3^rd meeting was presented by the Bishop and approved for COF membership by Council for term ending in 2020. A letter of resignation was received from Sarosh Fenn resigning due to time constraints. His resignation was accepted. Fr. Tierney stated that the Bishop will appoint Robert Bergstrand (former COF member) to complete Mr Fenn’s term to 2018 convention. It was noted that this is Secretary Hallenbeck’s last meeting, thanks for his service was expressed by the Chair and those present.

Finance Report for May was reviewed by Mr, Batchelor. Moving through the second quarter of the year noting most numbers are remarkably near budget. Charities campaign income is lagging, DIT data is updated thru February. The report was received.

Apportionment Aging. Income from churches remains strong with two exceptions, and one experiencing a cash flow problem.

Church of the Redeemer, Loan Application. Fr. Campbell and Mr. Daly joined the meeting. An Application for a $12,000 loan for painting the church exterior. It was noted the Church has an outstanding loan which will remain in place. Several questions were raised and discussed. The question of a single bid from a previous painter for inside work was reviewed. Following discussion it was Moved, Seconded and Voted (4 Yes, 1 No) to approve a Loan of $12,000 for 5 years at

3.0% with DIT security, the existing loan to remain until completion. Guests left the meeting.

ECC Solar Farm. Mr Burton presented a proposed Term Sheet agreement with RER Energy for development of an 8-10 megawatt solar array field to be built on two tracts of approximately 25 acres each on remote areas of ECC property. Mr. Sellers reviewed the competitive selection process resulting in the selection or RER Energy as the working partner for the project. Over several weeks and drafts prepared

the Term Sheet. Several matters are of special importance:

            • Lengthy discussion of details and rate structure.

            • The ‘off-take’ arrangement – virtual net metering rate.

            • Project is mostly invisible from the camp and road, based on rev.iew of original ECC deeds

            • Court has granted OK for income producing projects.

            • Time is provided to resolve matters that arise as project progresses.

            • The aim of the project is to support ECC and permit it to remain viable.

Following lengthy discussion and consideration, it was MOVED, Seconded and Voted, to accept and approve the terms of the proposed solar project between the Diocese of Rhode Island and RER Energy on approximately 50 acres of the ECC property, substantially as outlined in the Term Sheet presented to the Commission and to be attached to the Minutes of this meeting, hereby authorizing review and approval of final transaction documents by the Chancellor for the Diocese and execution by the Bishop or his designee and review by the COF of final term language.

CFO Report. • ECC developments, an open house and Board meeting will be held June 9^th to introduce the Solar Farm project. A $5,000 grant for camperships has been received from The Champlin Foundations, enabling further applications, and a $5,000 grant has been received from the June Rockwell Levy Foundation.

            • Mobile Station land sale is waiting for sign off by Global Inc

            • Hallworth House is now paying its land lease rent money to the Diocese monthly.

            • May House needs a cement cap over the previously cleaned up tank removal ($7,800).

Grace Church has completed a loan application for $36,950 to complete 2017 apportionment payments. Following discussion it was MOVED, Seconded and Voted to approve a Loan of $36,950 to Grace Church, Providence for 5 years at 3.75%, starting July 15^th.

The Old Narragansett Church is in need of exterior painting due to age and deterioration. A low of two bids for $28,000 was submitted. Funds are available from the Old Narragansett Church reserve fund. It was agreed to complete this work with available funds up to $30,000.

Diocese of RI Draft 2019 Budget. A preliminary first draft budget for 2019 was distributed by Mr. Burton. Key matters in this draft:

            • Again split into Apportionment and Non-Apportionment segments.

            • Non-Apportionment income will level out.

            • Apportionment contingency is getting tighter.

            • Goes to zero or minus $141k in 5 years.

            • Need a zero deficit budget plan.

            • Key question is; what to do with Solar Farm income.

Drafts for August or later for forwarding to Council and Convention.

St. Peter & St. Andrew Church. Canon Grenz submitted an update status report that is very helpful. It is clear continuing a presence in that section of the city is important. Needed actions include:

            • Preparing a grant proposal to CDC.

            • Come to COF with a carefully prepared loan request.

            • Complete previous approval of proceeds of sale of houses with expected reductions for     legal and survey costs.

            • 2018 Apportionment be reviewed and charged to house sale proceeds.

            • Work up a Business Plan reflecting existing conditions

            • Secure firm costs for renovation work on Rectory to prepare for rental.

Discussion of planning agenda topics for August meeting, to be annotated by the Chair.

The meeting was adjourned at 7:45 p.m. with cake enjoyed by all.

Respectfully Submitted

Edwin F. Hallenbeck

Secretary

Next Meeting: August 2, 5:00 p.m. or as called.

Meeting — May 3, 2018

Diocese of Rhode Island

Commission on Finance

Meeting, May 3, 2018

St. Luke’s Church, East Greenwich

Present: Robert Batchelor; The Rev. Erik Larsen; James Segovis; The Rev. Peter Tierney. Also present: Dennis Burton; The Rev. Canon Linda Grenz; The Rev. Edwin Hallenbeck. Guest: John Candon;
The meeting was called to order at 5:10 p.m. by Chair Tierney, who offered an opening prayer.
Minutes of March 1, 2018 were approved as amended, the Minutes of April 5, 2018 were approved as distributed.
Finance Report for April was reviewed by Mr. Batchelor. At this point early in the year finances are close to budget planning, Some accounts that run unevenly throughout the year, such as ECC low activity in the winter are at variance.
Apportionment Aging. There are two churches significantly behind, others routinely paying, some a month or two behind. The two that are behind were discussed at length.
* Sts. Peter and Andrew. This is a very complex situation needing careful review in 2018. We are already paying utility costs for three buildings that have been condemned and are in the process of being sold, this matter must be completed. The Rectory needs major updates and repairs, the Rector has retired and a new clergy team is beginning activity. It was agreed to track all closing costs to be paid from proceeds of the sale of buildings. Following a lengthy discussion it was agreed that a special working committee is needed to work with remaining parishioners, clergy, the community to consider issues, budget needs, possible courses of action. Messrs, Batchelor, Burton and Segovis agreed to work on this group which must be broader than COF. It was MOVED , SECONDED and VOTED to recommend to Diocesan Council that a special St’s Peter and Andrew Working Task Force be established to create and assist in developing the church so that it may become a viable presence in an otherwise unserved area. Persons to serve on this TF are noted above as well as The Rev. Susan Carpenter from Diocesan Council. It was further MOVED, SECONDED and VOTED that the proceeds of the sale of buildings at St’s Peter and Andrew, less closing costs to be determined, be placed in the DIT for application to be determinded at a later date.
* St. Georges, Central Falls. It is uncertain if the congregation will be able to regroup this year. The Diocese is subsidizing it and has for at least a decade. A key is lay enthusiasm and support, especially from other parishes. Our question is where do we put our energy and resources? This depends in part upon what works, noting that resources are limited, even while needs are great. This matter needs extended ongoing discussion. Attention needs to focus on defining what may work and how it may be fostered.
CFO Report, Mr. Burton.
• A Financials Variance Analysis Report was distributed, stating items not on budget. This early in the year this information will become useful for tracking emerging issues.

• Budget development for 2019. Mr. Burton is serving as temporary Chair of the Program and Budget Committee. He outlined the planned schedule for the year leading to Convention.
• ECC Solar Farm. National Grid has accepted the proposed line feed. Next are legal matters, court approval for land use, zoning and town approval and the negotiations with RER for contract arrangements. The Project Team with PR assistace are at work.
• Diocesan Investment Trust Board met recently and is working on revisions to the working trust agreement.
• Capital Budget Planning. Primarily focused on the Diocesan Campus a draft plan was submitted for discussion outlining in broad form needs for all buildings and detail for the Cathedral and Diocesan House – see handout. It was agreed this is a major project . The matter is referred to Diocesan Council with a suggestion to establish a special Task Force, with representatives from Council, COF, an architect and a contractor. The lingering issue is how to finance whatever is agreed upon as essential work.
• Grace Church. A meeting with the Wardens stated they will pay the remaining apportionment due with a Revolving Loan, formal terms to be arranged, with no DIT pledge. While an affirmative vote was taken, there were no documents application or final numbers available at the meeting.
• Grace Church Cemetery. Noting the concerns discussed in previous meetings it was suggested that consideration be given to pooling the cemetery funds available for all cemeteries to see if there are any options available.
• Mobile Station Land Sale, 389 Elmwood Ave, Providence is in legal negotiations with two outstanding issues, handicap access and parking.
• ECC Champlin Foudations Grant. A campership grant for $5,000 has been received initiating access to other funding. A request has been submitted for a Nursing Station and a new Boys Bathroom.

The meeting was adjourned at 7:15 p.m.
Respectfully submitted Edwin F Hallenbeck Secretary.
Next Meeting: June 7, 2018. 5:00p.m. 

Meeting — April 5, 2018

Diocese of Rhode Island

Commission on Finance

Meeting, April 5, 2018

St. Luke’s Church East Greenwich

Present: The Rt. Rev. Nicholas Knisely; Stephan Sloan; The Rev. Peter Tierney.

Also present: Joan DeCelles; Dennis Burton; The Rev Canon Linda Grenz; The Rev Edwin Hallenbeck.

Guest: Richard Sellers, Consultant.

The meeting was called to order at 5:05 p.m. by Chair Tierney, who offered an opening prayer.

Note: There was not a quorum present, therefore this was an information session only with no votes taken.

The Minutes of The meeting of March 1, 2018 were received, but not voted upon.

ECC Solar Farm Analysis. Presentation and discussion by Dennis Burton and Richard Sellers based on the report “ECC Solar Project: Next Steps.” The report was prepared with the support and assistance of the Advisory Committee most of whom have extensive experience with solar project planning and operation. Key points are:

            • Frequent meetings of Solar Advisory Committee.

            • Legal issues identified and addressed.

            • Max size of 10 MW DC established.

            • Ten potential Partners interested, 6 bids solicited, shortlisted 4 companies, 2 finalists.

            • Extensive analysis of 2 finalists with expert assistance, data in report.

            • Recommend next steps: Negotiate MoU with RER by end of April, prepare alternative process in case negotiations fail.

The Report was received with interest and several matters were discussed at length. The same Report was made at Diocesan Council April 4, 2018 and was referred to Council Executive Committee for final approval with the understanding it would be reviewed by COF. Those present agreed with this process of decision. Mr. Sellers left the meeting.

COF Report. Mr. Burton:ce.

            • St. Peter and Andrew apartments. An analysis of three options was distributed, indicating the best choice is to sell the apartments to Gemma property Management. It was agreed this appears to be the best option. Dennis will follow up details. A business plan will be needed for St P&A church and plans for how best to prepare the Rectory for occupancy, see below.

            • Mobile station land sale, 389 Elmwood Ave, Providence is still in negotiation, with most concerns settled.

            • Grace Church, Providence. A meeting was held with the present and former Sr Wardens for updates. The Cemetery situation needs study, the Diocese is willing to receive a proposal for what might be done.

            • Edwards Homes. An audit is needed of the financial status of the Homes so the bookkeeping can be brought over to the Finance Office. Bookkeeping can be brought over to the Finance Office per agreement with Hallworth House to provide accounting and administrative services to the Edwards Homes. The accounts are presently part of the Hallworth House financial structure.

Finance Report of March 2018 was reviewed briefly by Ms. DeCelles stating there were no significant variations. It was noted that the Variations Report begun in 2017 was very useful and might be used again this year.

Apportionment Aging Report. Churches are up to date except for several that run a month late and the two that are expected to be problems throughout  the year.

St. Peter & Andrew Church, Providence. Canon Grenz reported that May 1^st has been established as the retirement date for the Rev. Joyce Penfield, Priest-in-charge. Canon Grenz has met with the Wardens to consider changes needed. They are revising the budget to consider funds needed for the church to function in 2018.

The meeting was adjourned at 6:20 p.m.

Respectfully submitted

Edwin Hallenbeck

Secretary

Next meeting: May 3, 2018. 5 p.m.