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 3rd
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 9th 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 15th.
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.
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