MEETING
OF THE
BOARD OF GOVERNORS
OF THE
STATE BAR OF ARIZONA
January 25, 2008
Arizona Bar Center
Phoenix
BOARD MEMBERS PRESENT: Daniel J. McAuliffe, President, Phoenix; Raymond A. Hanna, First Vice President, Prescott; Alan P. Bayham, Jr., Second Vice President, Phoenix; Joseph A. Kanefield, Secretary-Treasurer, Phoenix; Bryan B. Chambers, Globe; Richard D. Coffinger, Glendale; Roger H. Contreras, Sierra Vista; Amelia Craig Cramer, Tucson; Michael J. Crawford, Tucson; Whitney Cunningham, Flagstaff; H. Leslie Hall, Phoenix; Richard T. Platt, Florence; Dee-Dee Samet, Tucson; Jimmie Dee Smith, President, Immediate Past President, Yuma; Ex Officio Members: Dean Dennis Shields, Phoenix School of Law; Public Members: Bennie R. Click, Munds Park; Fernando Gonzales, Tucson; and Alexander B. Jamison, Scottsdale; At-Large Paul W. Ahler, Phoenix; Mike Baumstark, Phoenix and Virginia Herrera-Gonzales, Phoenix.
BOARD MEMBERS ABSENT: Edward F. Novak, President-Elect, Phoenix; Stephen M. Dichter, Phoenix; Diane L. Drain, Phoenix; Abbe M. Goncharsky, Young Lawyers Division, Tucson; Foster Robberson, Phoenix; Public Member: Frank Barriga, Glendale; Ex Officio Members: Dean Patricia White, Tempe and Dean Toni Massaro, Tucson.
OTHERS PRESENT: Teresa Schmid, Executive Director; John Furlong, General Counsel; Colleen McManus, Senior Director of Human Resources; Larry McVey, Chief Financial Officer; I. Godwin Otu, Diversity Director; Nina Benham, Assistant to the Executive Director; Carrie Sherman, Director of Executive Projects; Patricia Giallanza, Director of Communications; Tom Harper, Manager of Accounting; Betty Flores, Director of the Resource Center; Kathleen Lundgren, Administrator for Government Relations; Jenn Moreira, Director of Web Services; Susan Villarreal, ABA Delegate and Janna Day.
President Dan McAuliffe called the meeting to order at 9:30 am.
EXECUTIVE SESSION: 9:30 am – 9:55 am
President Dan McAuliffe reported that he, along with other members of the Board of Governors and staff, attended the Martin Luther King Jr. Breakfast held in Phoenix.
President McAuliffe announced that there may be an effort to put something on the ballot in Arizona this year that would be similar to the Connerly Amendment, which dealt with prohibiting race and gender-based preferences in state hiring and state university admissions. The Bar may be asked to take a position on it. At next month’s Board meeting, John Furlong will present an analysis of how the Keller opinion relates to the Connerly Amendment. Dennis Shields, Dean of Phoenix School of Law, and Clint Bolick of the Goldwater Institute will present opposing sides of the issue.
President McAuliffe reported that lawyers have met to discuss the rule petition filed by the State Bar that would require registration of in-house counsel who are not members of the State Bar. The Bar will continue to work with the group to resolve their differences over the proposal.
Maricopa County Superior Court wants to reinstitute the proximity system for jurors. Most of the master juror pool, not all, will be summoned from zip codes in close proximity to court. President McAuliffe has sent the information to the Civil Practice and Procedure and Criminal Practice and Procedures Committees for their comments. After discussion, it was requested to have a motion authorizing President McAuliffe to review the comments and to state the Bar’s opinion on the proposal by the February 18, 2008 deadline.
Richard Coffinger moved and Alan Bayham, Jr. seconded and motion carried authorizing President McAuliffe to state the Bar’s opinion on the proposal by February 18, 2008.
EXECUTIVE DIRECTOR’S REPORT
Teresa Schmid presented her monthly report and Key Performance Indicators for the third quarter of 2007 and noted for discussion this month is the Long Range Plan approval as an action item next month. Ms. Schmid announced that I. Godwin Otu, Director of Diversity, will provide a monthly diversity report to the Board of Governors.
President McAuliffe requested a motion to approve the remaining items on the Consent Agenda.
Teresa Schmid presented the
2008-2011 Long Range Plan, which will be expanded to include communication,
diversity and technology plans. The budgetary impact of new activities
suggested by the Board will be reflected on the following year’s plan. The
Board will vote on the overall plan at next month’s meeting.
TUCSON BUILDING TASK FORCE REPORT
Amelia Craig Cramer reported that the Bar had withdrawn its money from escrow, since the seller had denied their request for a 60-day extension to resolve title issues. A new survey shows there is no encroachment on the parking lot, but there are encroachments with respect to the building. The seller agreed to obtain quitclaim deeds that would resolve the Bar’s concern. The appraiser indicated that the purchase price is still fair. Scope and Operations has considered the issue, and the Finance Committee unanimously recommended that the Board reenter into negotiations providing the seller: (1) obtains quit claim deeds that would resolve the Bar’s concerns; (2) the Bar can obtain easement amendments to allow for maintenance to the building exterior; (3) the Bar obtains the final survey; and (4) the Bar can obtain clear title insurance.
Dee-Dee Samet moved and Alan Bayham, Jr. seconded and the motion carried unanimously to reopen the escrow under the existing contract and resolve the provisions noted: (1) obtain quit claim deeds that would resolve the Bar’s concerns; (2) the Bar can obtain easement amendments to allow for maintenance to the building exterior; (3) obtain the final survey; and (4) obtain clear title insurance.
The Board discussed that if the purchase goes through, the June 17th Board meeting should be scheduled near or at the new location.
Robert Van Wyck, Chief Bar Counsel gave his monthly report. He announced that Amy Rehm was promoted to Director of Litigation. He provided preliminary year-end statistics for the Lawyer Regulation Department. The number of charges received (2165) were consistent with prior years. However, there were more formal complaints filed in 2007. There were a number of reasons for this, including that the department is now fully staffed and processing cases more efficiently. Finally, Mr. Van Wyck reported that the department resolved 94% of its cases within the court's guidelines for case disposition
Susan Villarreal, responded to a request that President McAuliffe received to co-sponsor a resolution from the New York State Bar Association of the ABA Resolution Proposal on Long-Term Care. This urges all federal, state, territorial and local legislative bodies and governmental agencies to develop and assess innovative long-term care programs such as the “Compact for Long-Term Care” as a reasonable and fair solution to long-term care financing. The resolution will be presented in February at the ABA mid-year meeting. After lengthy discussion, the Board agreed not to co-sponsor the proposal.
Whitney Cunningham reported that the LRIS Committee will meet next week, and that a business consultant has been hired to assist in the development of the business model.
Amelia Cramer reported that the State Bar has filed eleven rule petitions. Ms. Cramer further reported that the Criminal Jury Instructions were postponed in order to address a few comments that were substantive and needed to be addressed and will return before the Board in March.
Alan Bayham announced that the Glendale City Council appointed Terence C. Mead for the City of Glendale Judicial Selection Advisory Board. The Appointments Committee is advertising open positions for public members out of Maricopa County (Deadline 2/15/08), and is encouraging qualified active members to apply for the Conflicts Case Committee. (Deadline is 2/22/08)
Drew Williamson and Teresa Schmid reported on the staff recommendation for the Bar to contract with FastCase to provide unlimited online legal research for active State Bar members. The service is estimated to cost the Bar $80,000. The service would be provided to members without additional charges. The Finance Committee reviewed FastCase materials distributed at the Finance Committee meeting and heard a presentation from Drew Williamson and Teresa Schmid regarding the recommendation.
The Finance Committee recommends that the BOG select FastCase as the provider of the service to active members.
Dee-Dee Samet moved and Alan Bayham, Jr. seconded and motion carried unanimously to adopt the recommendation from the Finance Committee to contract with FastCase for $80,000 annual fee to provide unlimited online legal research for active members of the State Bar of Arizona at no additional cost to the members.
The Finance Committee approved a $3,500 contribution request from the ABA to support the Judicial Intern Opportunity Program. The Bar has supported this program in the past two years.
Financial reports for November and a preliminary report for December operations were presented. CFO Larry McVey discussed the financial reports for both months and reported that the preliminary surplus for the year before year-end adjustments was $642,000.
Mr. McVey reported that performance pay on line 81 of the Operating Statement was under budget $47,000 due to not having accrued performance pay for the nine month review period ending 12/31/07. The performance pay will be paid in the first quarter of 2008 and should be accrued. Vacancy savings are more than enough to cover this amount and the amount is in the Budget. The Finance Committee recommended approval of the $47,000 accrual and distribution of this performance pay to staff.
No motion being required, the Board voted unanimously to approve the Finance Committee recommendation to accrue and distribute performance pay to staff for 2007 in the amount of $47,000 for 2007.
Raymond Hanna discussed with the Board the Finance Committee’s recommendation to fund the 401(k) employer match for 2007 in the amount of 10% of the first 6% of staff deferrals totaling $21,260 which is consistent with the budget.
No motion being required, the Board voted unanimously to approve the Finance Committee’s recommendation to fund the 401(k) employer match of 10% on the first 6% of staff deferrals for 2007 in the amount of $21,260, which is consistent with the budget.
Informational
The 2008 401(k) employer match of 10% on the first 6% of staff deferrals is included in the 2008 budget that was approved last month.
Cooling Towers
Mr. McVey then updated the Board on the 24th Street building’s cooling towers, which have reached the end of their useful life. During the years 2005-2007 the sum of $120,000 has been accrued for their replacement. Bids have been received indicating the current replacement cost could run $185,000. The Bar has hired a professional engineer to assist with soliciting the bids and assisting the Bar in selecting which bid is the most cost effective for the Bar. Mr. McVey recommending increasing the replacement reserve by $65,000 to $185,000. It was discussed that the effect of increasing the replacement reserve would be to decrease the 2007 surplus.
Alan Bayham, Jr. moved, and Raymond Hanna seconded, a motion to increase the replacement reserve by $65,000 which would decrease the 2007 surplus. If the additional cost of stainless steel tubes in the tower were recommended by the engineer and approved by Scope and Operations this additional cost would be added to the reserve. The motion carried.
ARIZONA FOUNDATION FOR LEGAL SERVICES & EDUCATION
Honorable Joseph Kramer presented the following report on behalf of the Foundation:
2008 Legal Service SBA Opt Out Dues
Project Summaries
Justice for Children, Northern Arizona Project
Grant Amount: $45,000
Justice for Children provides legal services in cases of documented, criminal abuse of children when traditional avenues of safety and protection could not or would not assist or help further; to provide free of charge legal assistance, and related case assessment and services to child victims and their families seeking to protect. Justice for Children is collaborating with CASA to establish an advocacy office in Mohave County. The pilot project in Mohave includes office space, a part time employee, a part time staff attorney, office equipment and a Lawyer and Advocacy Training in Mohave County.
Northern Arizona University Foundation, Northern Arizona Justice Project (NAJP)
Grant Amount: $24,000
The Northern Arizona Justice Project primarily works to free the wrongfully convicted and to reconstruct, after the fact, how cases went wrong. The funding provided will support a half-time graduate student administrative assistant, one part-time contract attorney, and case investigation and public education travel.
Society of St. Vincent de Paul, Medical Legal Partnership for Children
Grant Amount: $20,376
St. Vincent de Paul is developing a Medical-Legal Partnership for Children (Project) that is relevant and serves the needs of the poor and working poor of Maricopa County. The Project is based on the models developed by the Tucson Family Advocacy Program and the Medical Legal Partnership at Boston Medical Center. A core principle of Medical Legal-Partnerships is to create legal services access in the clinical setting to ensure that children’s basic needs for food, housing, education, health care and safety/stability. This principle is achieved by improving front-line health care staff’s capacity to screen, identify, triage and refer basic needs and legal issues. The Project’s goal is also to develop systemic advocacy efforts on issues affecting the health and well being of poor children and their families.
Southern Arizona Legal Aid, Inc., Tucson Family Advocacy Program
Grant Amount: $68,386
The Tucson Family Advocacy Program (TFAP) is a medical-legal collaborative in the University of Arizona Department of Family and Community Medicine designed to improve the health and welfare of low-income patients and their families. TFAP provides free legal assistance and coordinated social work services to low-income patients in a community health care setting as part of a medical treatment plan. The funding provided is supporting a staff attorney position to coordinate outreach efforts and program administration.
Statistical Summary
Approximately 32% of Arizonans had a legal problem in the last 12 months
· Over 71% of households with incomes under $25K believed they could not afford an attorney
· With households making as much as $47K, more than half (56%) stated they could not afford private representation
· 81% of those interviewed did not know where to look for legal aid assistance
· Of the 32% reporting a legal need, 41% attempted to take care of it themselves and 21% took no action at all.
ADJOURN
Alan Bayham, Jr. moved and Jimmie Smith seconded and the motion carried unanimously to adjourn.
Respectfully submitted,