Vestry Minutes

St. Johns in the Mountains

Stowe, Vermont

Vestry Meeting

April 20, 2015 – 7:00 p.m. – Parish Hall – St John’s in the Mountains

The Vestry of St. John’s in the Mountains Episcopal Church met on April 20, 2015 beginning at 7:00 p.m. in the Parish Hall, Stowe, Vermont.

Vestry Members Present: Tom Younkman, Senior Warden; Pete Johnson, Junior Warden, Bill Robinson, James Hodge (via phone), Lucy Howard, and the Reverend Richard Swanson, Rector.

Vestry Members Absent: Jimmy Mauro, Bidi Wheelwright

Guests Present: Bunny Libby and Sandy Duncan, Building and Grounds Committee , Cap Chenoweth, Sunworks Inc, and Maryellen Sullivan, Investment Committee

1. Call to Order/Prayer Father Rick called the meeting to order at 6:57 p.m., followed by opening prayer. It was determined that a quorum was present.

2. Accept Agenda The agenda was accepted with one change – Maryellen Sullivan will present the Investment Committee’s report

3. Introductions The guests and Vestry members introduced themselves.

4. Building and Grounds Presentation – next steps with the utility room

Bunny Libby discussed the reasons for making changes to the utility room, including the complexity of the current heating system and the cost of support from Control Tech, which is costing $3000.00 per year (see the report from Building and Grounds and the report from Cap Chenoweth).

Cap Chenoweth identified three options St. John’s has:

a. Do nothing – this would leave us relying on Control Tech

b. Hire a company such as his to analyze any problem that arises and have them show the support person(s) from Control Technology. This would reduce the cost of support from Control Tech

c. Rip out the existing control system and replace it with more conventional controls

Cap presented the Vestry with an Addendum to his earlier report. The Addendum identifies nine steps in the expected work and lists the likely materials and labor costs of approximately $6000.00. The cost estimate is just that; it’s likely it could cost more to do the work. The time estimated was five work days, and the first step would be to get the heating working with new controls, then fix the air circulation problems.

The Vestry approved the following Motion (proposed by Bill, seconded by Lucy):

The Vestry authorizes Sunworks, Inc to fix our heating system based on the statement of work in the Sunworks Addendum. The time and material cost is not to exceed $8000.00 without prior approval of the Vestry.

Tom, Pete, Bill, and Lucy approved the motion, Jim abstained.

The Vestry recommended that the work begin after Memorial Day. Tom volunteered to work with Libby as Clerk of the Works.

4. Investment Committee Report (attached)

Investment Committee members Maryellen Sullivan and Hank Kessler wrote a document on Investment Policy. Maryellen did the presentation. She started with an outline of the draft, stating that the document first describes relationships between the Investment Committee and the Vestry, the Finance Committee, and the financial advisor (M. Kraus and Company). The other parts of the document describe objectives and guidelines for the two investment funds we have, which are referred to in the document as the Unencumbered Endowment Fund and the Outreach Fund. (refer to the draft Investment Policy Document). For each fund, there are paragraphs that describe

a. Investment Objectives

b. Usage

c. Additions to the Funds

d. Distribution of the Funds

e. Income

f. Asset Allocations

g. Limitations on investments

Several questions arose while going over these topics. As the discussion continued, the group decided to table a vote on the proposed Investment Policy document to give us time to address several issues:

a. What should be the standard names for the funds? Two motions were made by Pete Johnson to address the naming convention for the Church’s investment funds. First, Pete proposed and Tom seconded a motion to use the name “Unencumbered Endowment Fund” for Schwab Account 1662-4286. This was approved. The second motion by Pete is to use the name “The Orlov Fund for Outreach” for account 3581-0633. This was seconded by Bill and approved by the Vestry

b. How should the balance of the Unencumbered Endowment Fund be calculated to determine the 2% distribution for the operating budget? The document (page 3) recommends taking the value of the fund on December 31st each year. The alternative proposed by Jim is to use a thirteen-month monthly average as the balance.

c. (page 3) Should a 2/3 majority vote be required by the Vestry (vs a majority) to draw additional money from the Unencumbered Endowment Fund to meet a budgetary shortfall or emergency financial need?

d. (page 3) Is $500.00 the right boundary for adding unrestricted bequests or gifts to the Endowment Fund?

e. Asset Allocations and Limitations on Investments (both funds) • Should there be a limit on changes made by the Advisor without consulting the Investment Committee

• Should there be limits on the ratings for Fixed Income investments

5. The following Agenda items were tabled:

Discussion of Action Items from the Vestry Retreat

Minutes from March 16, 2015 Vestry Meeting

Consent Agenda

2015 Vestry Calendar.

6. Next Meeting May 18, 2015 beginning at 7:00 p.m. in the Parish Hall, St. John’s in the Mountains.

7. Adjournment The meeting adjourned at approximately 9:00 p.m.

Respectfully submitted,

Bill Robinson, Vestry

Attachments:

Addendum to Cap Cenoweth’s Report on Heating

Investment Committee Report