TEXAS ANNUAL CONFERENCE of the United Methodist Church 2009 Journal

S G N I D E E C O R P Y L I A D

E DAILY PROCEEDINGS E-1

DAILY PROCEEDINGS 40TH SESSION TEXAS ANNUAL CONFERENCE MAY 24, 2009 - MAY 27, 2009 Day One

SERVICE OF MEMORIAL AND HOLY COMMUNION

The 40th session of the Texas Annual Conference began Sunday, May 24, 2009 with the Service of Memorial and Holy Communion. The chancel choir of Memorial Drive UMC, under the direction of Ann S. Abels and accompanied by M. Keith Ross, opened worship with a beautiful rendition of "Gathered Here in the Mystery of the Hour," written by Phillip A. Porter. Bishop Janice Riggle Huie called the 40th session of the Texas Annual Conference to order, which was followed by the congregational hymn of praise, "Come Let Us Join Our Friends Above." A special ensemble comprised of members from the Annual Conference Worship Team and directed by Frode Gundersen, sang "Seasons of Love." The liturgists were Kelsey Johnson, lay member of St. Luke's UMC in Bryan; Rev. Justin Coleman, lead pastor at Gethsemane UMC; and Rev. Allison Thompson, associate pastor at Marvin UMC in Tyler. The service organist for the conference was Judith P. York. The following scriptures were chosen for the message: Exodus 40:34-38; John 1:1-12; and 2 Corinthians 5:9-14. The Reverend Dr. Elijah Stansell was the preacher for the evening. He spoke of passing the witness of the saints of glory to the present day saints, who then have the responsibility to share the saving knowledge of Jesus Christ to the world around us in order to preserve and pass the witness of the gospel to the future generations. Bishop Janice Riggle Huie presided over Holy Communion with assistance from following persons: Leah Taylor, Rev. Rick Goodrich, Jan Ervin, Dr. Karen Dorris, Rev. Nick Sholars, Marty Sholars, Dr. Jerry Pennington, Joey Pennington, Rev. Joe Fort, Margaret Fort, Rev. Bill Taylor, Sherri Waters, Rev. Cynthia Harvey, Dr. Richard Burnham, Tom Abbage, Dr. Elijah Stansell, Rev. Gail Ford Smith, Dr. Ted Smith, Dr. Don Waddleton, Irma Waddleton, Dr. Jack Shelton, Ianthe Shelton, Rev. Lawrence Young, Karen Young, Dr. Roy James, Merryl James, Rev. Sandra Smith, Rev. Randy Smith, Dr. Richard L. White, and Leticia White. During the service of Holy Communion, the names of the following clergy and spouses who have joined the Church Triumphant were read: John Bess, Isaiah Daviss, Donald Ray Box, Lois June Stephenson Boyles, Christine Garoutte, Larry Mobley, Foy Mae Reagan, David Noel Morgret, Bill Haskell, Merle A. Jones, Joseph Winn Fort, Sr., Joyce Whiddon, Keith Kellow, Robert E. Johnson, June Landrum, Thomas Latta, Bradley Nelson, Chester Steele, Doyle Riley, LeRoy Stanton, Dorothy Iwig, Spurgeon N. Dunnam, Clinton Huey Clements, Linda Scott, Ruth Smith Jonte, Billie Murray Thomas, Russell James Watkins, Claude Decelle, and Nancy Oliphint. After the elements were served and received, Bishop Huie led in the prayer of thanksgiving, which was followed by the recessional hymn "Sing with All the Saints in Glory." The congregation then participated in a Litany of Hope for the Journey Ahead, which was followed by the choral blessing, "The Journey is Our Home." The congregation was dismissed as the organist played the postlude by J.S. Bach, "We Believe in One God, the Creator." E-2 DAILY PROCEEDINGS

Day Two

CLERGY EXECUTIVE SESSION Monday May 25, 2009 Sanctuary, The Woodlands United Methodist Church The Woodlands, Texas

Call to Order: Bishop Janice Riggle Huie called the executive session to order at 9:40 a.m. She asked Rev. Gail Ford Smith to offer an opening prayer. Bishop Huie then took a personal moment to thank the clergy for our perseverance and endurance during the difficulties resulting from the damage left by Hurricane Ike and the economic downturn which occurred during the same time frame. She praised the way the Texas Annual Conference responded with help in the recovery from Ike, and the extra giving that helped financially in apportionment payment. Bishop Huie testified that the Lord makes a way in the midst of crisis by using all of us and the gifts we bring to give to others. She recognized that financial stress affects the body and drains strength. Bishop Huie then called upon Dr. Tom Pace, Chairman of the Board of Ordained Ministry, to bring their report. Board of Ordained Ministry Report: Dr. Pace asked the members of the Board or Ordained Ministry to stand and be recognized. He asked the pastors to do three things: (1) to be on the front lines to identify persons who are called to ordained ministry; (2) to help candidates discern if their call is into the representative ministry or the general ministry of the church and to guide the candidate in the right direction to fulfill their calling; and (3) to be aware that the General Board of Higher Education and Ministry has published behavioral guidelines and the Board of Ordained Ministry is taking these seriously. Dr. Pace called upon the registrar of the Board of Ministry, Rev. Jon Stouffer, to begin the report. Dr. Pace thanked Rev. Stouffer, Nancy Hinshaw, and Stephanie Whitaker for preparing the report, which takes hours of work. However, Dr. Pace acknowledged that mistakes can happen and if anyone noticed any changes to be made, to submit the form provided to Rev. Stouffer before the end of this annual conference. Registrar's Report: Rev. Jon Stouffer, Rev. Danny Barrett, and Rev. Richard Bauman: Question 17, Dr. Pace asked the question: "Are all the clergy members of the conference blameless in their life and official administration ( ¶604.4, 605.6)? The clergy members answered: "Yes, by the grace of God." Question 18.a: Nominations for membership on the Committee on Investigation: Dr. Pace recognized Rev. Rick Goodrich who made the following corrections on the Committee on Investigation: add Lay Observer, Robert Harris and delete the names of Cynthia Harvey and B.T. Williamson; on the Administrative Review Committee add Rodney Graves, alternate Jim Flagg; and Ex-Officio Member Joe Fort; delete Sandra Smith, Rose Boyd, Rob Fisher, Deborah Proctor, Joe Fort and B.T Williamson. Bishop Huie asked the clergy delegates to vote by voice and the corrections were approved. Question 18.b: Rev. Goodrich made corrections to the nominations for the Administrative Review Committee and they were approved. Question 19.a: Dr. Pace added four names to the list of certified candidates: Kenneth Carter, certified on April 1, 2009 from the South District; Will Knuckols, certified on April 3, 2009 from the Southwest District; Andrew Payne, transferred in from the Southwest Texas Conference as a certified candidate; and Brian Wharton, certified on September 1, 2008 from the Northwest District. Dr. Pace asked all the Certified Candidates for the ordained or licensed ministry to stand so they could be recognized. Dr. Pace then thanked the mentors who spend hours working with the candidates to stand for recognition. Question 20: Danny Barrett called attention to those who have completed the studies for license as a local pastor, are approved, but are not currently appointed. Question 21: Rev. Barrett then moved to the list of local pastors who are approved and appointed to serve as local pastors as of May 31, 2009. Bishop Huie asked the clergy to vote by voice on all of DAILY PROCEEDINGS E-3

Question 21 as written with corrections as discovered." The vote was affirmative and passed. Question 24: Rev. Goodrich recognized the ordained ministers from other conferences or other Methodist denominations who are approved and serving appointments in the Texas Conference. Question 25: Rev. Goodrich presented clergy in good standing in other Christian denominations who have been approved to serve appointment or ecumenical ministries in the annual conference while main- taining their denominational affiliation: Rev. Kent McKeever, Baptist. Bishop Huie asked all to vote by voice and it was approved. Question 28 (a): Dr. Pace explained to the clergy delegates that the candidates coming for commissioning as probationary member would maintain the term "Probationary Members" this year due to the fact that the Constitutional Amendments referring to the name change had not yet been voted on by all the annual conferences. If the vote is a 2/3 aggregate majority, the Council of Bishops would declare the amendment adopted and the term would change to "Provisional Members." Dr. Pace introduced those candidates for election as probationary Deacons under ¶324.4a, and .4c: Sunny Brown Farley, and Cindy Foster Serio. Bishop Huie asked the clergy to vote by voice and they were elected. Question 28 (b): Dr. Pace presented those candidates for election as probationary Elders under ¶¶324.4a and .4b: Mary Elaine Balagia, Robyn Kay Bishop, Edward R. Blackstone, Debra Moton Brown, Anjelita Helaine Dirden, Elizabeth Matthews Duffin, Seann Duffin, Russell Andrew Hall, Melissa Maher, Silverio Sanchez, Jacob Sean Smith, Collin Bridges Taylor, and Jon King Thornsbury. Bishop Huie asked the clergy delegates to vote by voice and they were elected. Question 29 (a): Rev. Stouffer mentioned those who were continued as probationary (provisional) members as a matter of information. Question 29 (b): Rev. Stouffer added the name of Francine Meyer, (PE), who was elected June 1, 2008. Question 31 (a) and (B): Dr. Pace presented those who were elected to full connection. He mentioned that the names were also listed in Questions 32 and 33. Deacons: Lorna Kay Bradley and Melody Lynn Kraus; and Elders: Richard Dale Anderson, Taylor Meador Fuerst, Dan Lake Gilliam, Williams Preston Greenwaldt, Michelle Renee Hall, Ray Simpson Hughes, Jr., Kelly Steven Krone, Jin-Jong Lee, Jack Alwin McMahon, Elnora Marie Nunnally, Kimberly Camp Orr, Bartley Steven Reddoch, Stephen Mark Rhoads, Victoria Gunn Simons, Matthew Nolan Stone, Linda Jean Tolon, Benjamin David Trammell, Marilyn Marie White, and Jack Allen Womack. Dr. Pace mentioned that Taylor Meador Fuerst was not present in the clergy session due to having a baby a couple of days prior to annual conference but that she would be present in the afternoon session. Bishop Huie stated that she would wait to ask the historic questions until the afternoon session in order to give the laity opportunity to participate. Question 32 (a): Bishop Huie explained that the Deacons coming for ordination and full connection needed a 2/3 majority vote to be elected for deacons in full connection. She asked the clergy delegates to vote by hand and they were so elected. Question 33 (a): Bishop Huie stated that those who are before the delegates for ordination as elders must be elected by 2/3 majority and asked the delegates to vote by raised hand. They were so elected for ordination. The clergy stood and received the ordinands with a standing ovation. Question 37: Bishop Huie introduced the Transfers from other Annual Conferences of the United Methodist Church to be effective as of June 1, 2009 and asked them to stand to be recognized: Nolan Brian Donald from the Alabama-West Florida Conference; Ray Simpson Hughes, Jr. from the Florida Conference; James Martin from the Western North Carolina Conference, and Mark Welsimer from the Central Texas Conference. The conference welcomed them with applause. Question 41: Bishop Huie asked if any had transferred to other Annual Conferences of The United Methodist Church. Angela Gafford Asmus will transfer to the Iowa Annual Conference to be effective as of July 1, 2009. Question 42: Rev. Richard Bauman named those who wee discontinued as probationary members: Jennifer Jackson, Probationary Elder and Martha Kerns, Probationary Deacon. Bishop Huie asked for a E-4 DAILY PROCEEDINGS

voice vote and they were discontinued. Question 43: Rev. Bauman noted that no one was given honorable location this year. Question 45: Rev. Bauman presented Jerry Carpenter, Full Elder, who had his status as honorably located and his orders terminated, effective as of February 16, 2009. Bishop Huie asked the conference for a voice vote. It passed and the elder's orders were terminated. Question 46 (a): The following persons withdrew from the ordained ministerial office: Jennifer Jackson, Probationary Elder on September 1, 2008; Martha Kerns, Probationary Deacon on February 18, 2008; and Shelley Merryman, Full Deacon effective on June 1, 2009. Bishop Huie asked the clergy for a voice vote and the withdrawals were approved. Question 46 (b): By termination of orders under recommendation of the Board of Ordained Ministry: Remove Francine Meyer, Probationary Elder, from the list. The Bishop asked for a voice vote and the conference approved the correction. Question 48 (c): Rev. Bauman asked the conference to stand for the naming aloud of the Elders who have died since last we met: Lois June Stephenson Boyles, David Noel Morgret, Russell James Watkins, Donald Ray Box, Clinton Huey Clements, Isaiah Daviss, Claude Decelle, Spurgeon M. Dunnam, Joseph Winn Fort, Bill Haskell, Robert Johnson, Keith Kellow, Doyle Riley, LeRoy Stanton, and Billie Murray Thomas. Question 48 (d): Local Pastors who have died: Bradley Nelson. Question 48 (e): Retired Local Pastors who have died: Carey Cauley, Jr. Following the reading of the names of the deceased, Rev. Bauman offered a prayer of thanksgiving for those who have joined the Church Triumphant. Question 49: Rev. Bauman noted the names of clergy who received appointments in other annual conferences. Question 50 (a): This question pertains to the number of years clergy have been on leave of absence. Bishop Huie asked the delegates to vote by raised hand and it was approved by 2/3 vote. Question 50 (c): One person was placed on family leave: Rebecca Jo Wallace, Full Deacon. Question 52 (c): Those were granted incapacity leave at this session were: Roy O. Biser, Jerry Lynn Burnette, Kenneth Wayne Day, E. Dwayne Dillard, John Dowden, Elton Eugene Easterly, Anita Hathaway Green, Richard Leland Hume, Denise White Jones, Lucy Annette Jones, Joseph Scott McKay, Wayne Middleton, Elizabeth Moreau, Terry Myers, Paul Quiggins, Ronald Dean Reeves, Teresa Tressler Smith, Thomas Floyd Smith, and William Lloyd Yohe. Bishop Huie asked the conference to give a voice vote and incapacity leave was approved. Question 53 Deacons (a): Deacons in full connection who have retired this year were: Robert Breckbill and Charlotte Floyd. Question 53 Elders (a): Elders in full connection who were retired this year were: Anthony Cecil, Joe F. Crabb, John B. Cullen, John A. Dawson, Gerald J. DeSobe, Gary Fitzgerald, Charles R. Greene, Edward E. Kester, Susan K. Kester, Ferel R. Little, James Edgar McConnell, Charles E. Ruehl, Everett C. Schrum, Jack R. Shelton, John Larry Smith, F. Herb Stallknecht, and William G. Stell. No vote was required. Question 54 (a): The associate members who were retired this session were: Janet Blackburn and Robert Shelton. No vote was required. Question 56 (a): Local Pastors who were retired this year were: Dudley Childs, Do Ung Lee, John A. Montgomery, and Kenneth Stackhouse. No vote was required. Rev. Bauman moved the adoption of this part of the Board of Ordained Ministry report and it was adopted by majority voice vote.

PART III CERTIFICATION IN SPECIALIZED AND CERTIFIED LAY MINISTRY

Dr. Pace called upon Rev. Pam Besser to speak to the certification due to the absence of Judy Tefteller. Question 61: Two persons received certification in specialized ministry this year: Kristen Hailey in DAILY PROCEEDINGS E-5

Youth Ministry and Jennifer Lynn Powell in Christian Education. Question 65: Rev. Besser recognized those who were certified as lay ministers this year.

PART IV DIACONAL MINISTERS

Question 71 (b): The retired Diaconal Ministers who have died during the year was: Ralph Evans on March 13, 2009. Question 72 (b): The diaconal ministers who were granted leave of absence this annual conference was: Patricia Ricks. Bishop Huie asked the conference to vote by voice and the leave of absence was approved.

PART V APPOINTMENTS AND CONCLUDING BUSINESS

Question 76: Rev. Bauman noted the associate members and elders approved for appointment to less than full-time service. This item of business requires a 3/4 majority vote. Bishop Huie asked the delegates to vote by hand and it was approved. Question 77: The interim pastors who were appointed as interim pastors since the last session of annual conference were listed with the amount of time served. Question 84: Rev. Stouffer mentioned other notations for information: (a) Reverend Dr. W. Earl Bledsoe was elected bishop in 2008 and is no longer of the Texas Annual conference list of clergy members; (b) Rev. Lee McKinzie served in the Louisiana under paragraph 346.1 during the year. The Louisiana Conference was to transfer him in June 2008, but the paperwork was not completed. Forms will be submitted and the transfer will be effective on June 1, 2009. (c) Candace Barron was listed in 2008 Conference Journal as a full time local pastor and candidate for ministry. She transferred her candidacy to the Arkansas Annual Conference effective June 1, 2008. (d) Marilyn Nixon, deaconess, resides in the bounds of the Texas Annual Conference. (e) Jill Daniel was an unappointed local pastor. She transferred to the Kentucky Annual Conference effective June 1, 2008. (f) Carol Heath withdrew on March 1, 2008.

CONCLUSION: Dr. Tom Pace placed the entire Board of Ordained Ministry report before the conference for adoption. Bishop Huie asked the clergy delegates to vote by raised hand and the full report was approved with corrections. Bishop Huie recognized the work of the members of the Board of Ordained Ministry. ADJOURN: Bishop Huie closed the 40th session of the Executive Clergy Session with prayer at 10:30 a.m.

MEETING OF THE LAY MEMBERS OF THE TEXAS ANNUAL CONFERENCE The Marriott Waterway Hotel, The Woodlands, Texas May 25, 2009, 9:00 a.m.

The pre-session singing was provided by Chosen Generation of Windsor Village UMC Youth Choir with Zedric Smith, Director and Gerrond Thomas, Accompanist. Songs included Glory Alleluia; We Bless Your Name (congregational participation); This is the Way We Praise Him. Welcome: Mrs. Leah Taylor, Lay Leader, Texas Annual Conference. Mrs. Taylor welcomed E-6 DAILY PROCEEDINGS

the lay delegates to conference. She explained that the theme for the 2009 Texas Annual Conference is "Faith Forming Relationships," (Faith Formed Together - on Logo). Mrs. Taylor shared items to be highlighted during conference, which she feels will empower delegates in building relationships. Mrs. Taylor then led in an opening prayer. The opening hymn was verses one and four of "Joyful, Joyful, We Adore Thee," which was led by Will Luton, young adult delegate from Fairhaven UMC in Houston. Mrs. Taylor introduced Bishop Janice Riggle Huie. Bishop Huie reminded the Laity of our intentional faith development and that we grow in faith by prayer and study of scripture when we do it together. We learn the practice of forgiveness and love and, when it is all informed by scripture and prayer, it matures us in Christ and pushes us out to serve God and neighbor. Our guest speaker for this annual conference session is Dr. Edgardo Colon- Emeric, a professor at Duke University with a specialty in Wesleyan Studies. Worship on Monday night will be in the form of a drama. Retirees will share by video. Bishop Huie noted the challenges faced this year and thanked the delegates for rising to the occasion. She reminded those present that this conference has dealt with our third (including Katrina) hurricane in three years followed by the "great recession" and the whole economic situation. Noting that some states have it worse, the Bishop noted that we are blessed to be in Texas. Bishop Huie reiterated that, as always, the clergy and lay of the Texas Annual Conference rose to the occasion and shared her gratitude for that. Bishop Huie also thanked Leah Taylor, Conference Lay Leader, for her participation with the Cabinet (except for appointments) and acting as the voice of the laity on boards and agencies. Bishop Huie concluded with a word of appreciation for each of the delegates as she shared that she looked forward to seeing the delegates at The Woodlands UMC at 1:00 p.m. for the opening business session of the Texas Conference. Kathi Paul, Central North District Lay Leader, offered a welcome and shared some conference details. She admonished delegates to not let questions go unanswered but suggested that delegates inquire of the person next to them or check at the registration desks. Ms. Paul share that The Woodlands UMC offers a help desk located outside the sanctuary. Ms. Paul extended, on behalf of Dr. Shelton and the entire North District, a thank you to the entire Woodlands staff. Worship last night was a great sharing time and Ms. Paul encouraged delegates to attend all of the worship times to enable each to see new ways of worshipping that can be taken back and incorporated into their home church. Ms. Paul noted that this is a busy week with a lot of business to do but encouraged delegates to take time to be a part of the bigger body of the conference and form their own faith relationships. Mrs. Taylor recognized first-time delegates and delegates who have served more than 20 years. Announcements: There were several housekeeping details for delegates: local church delegates have the responsibility to gather and carry information back to their churches; district delegate obliga- tions should be discussed with the District Superintendent as to what the intention is for carrying information back to the district. Delegates have one responsibility in common: that we are here together representing the United Methodist Church and all are working together for the future of our church. Lay Ministry College: Denise Foose (Chapelwood UMC in Lake Jackson) shared about the Lay Ministry College - The Methodist College. She told lay delegates that by and through our baptism, we are commanded to go forth and love one another. For some, this call is to spiritual care giving. Two programs: Lay Ministry College and Lay Ministry Institute are offered with information on these programs shared as part of the DVD Video: Ron Sunderman; Ted Smith; Rev. Vance Ross; Marisela Weaver; Alean Harper all participated in the video presentation. Due to technical difficulties, the video would be shown later. Mrs. Foose shared that persons with information will be outside the doors following this session. She noted that space is limited and interviews for the Lay Ministry College begin in September. A flyer, placed in seats, was referenced for the February 4-6, 2010 Lay Ministry Conference. DAILY PROCEEDINGS E-7

Cote d'Ivoire: Mrs. Taylor referenced the covenant to make a difference in the lives of persons which was ratified between the Texas Annual Conference and Cote d'Ivoire during the 2008 Conference. She introduced representatives of Cote d'Ivoire: Samuel Koffi, Assistant to Bishop Boni; Emmanuel Aca, and the Cote d'Ivoire Annual Conference Lay Leader. Mrs. Taylor shared aspects of this partnership which included outfits made by the women of Cote d'Ivoire. She shared that the people of Cote d'Ivoire make this fabric and are making a fabric exclusive for the TAC, which will be here soon. Mrs. Taylor noted that profits of fabric sales will go to support various aspects of our partnership with Cote d'Ivoire. DVD: The Lay Ministry College. This program is for those who do not feel a call to ordained ministry, but feel called to offer pastoral care in a congregational or hospital setting. Partners in Mission: The Lay Leader introduced Kathie Mann who is the Director of Partners in Mission, a Volunteer in Mission Program of the annual conference. Because we are in "Partnership with the People We Serve" many of our delegation have participated in mission ministries that include our conference, and extend to many national sites and international projects. Our volunteer teams help reconstruct and build new churches, schools, clinics, parsonages and hospital, all over the world. We have been given the task of setting up worksites in Cote d'Ivoire at those places where we know our teams can and will make a difference. After a site visit in April, the Dabou Methodist Hospital was designated as the first site for our teams. Mrs. Mann was also a part of the Nothing but Nets distribution team. She shared information about the Eglise Methodiste unie Cote D'Ivoire Hospital Methodiste built in 1968 which has 110 beds and is running at 30% capacity. As a priority, PIM plans to take on the task of bringing the hospital back to a vibrant facility. Work has already begun. During the April visit, staff revealed the adult facility, with 26 beds, is a priority. With renovations, it is hoped to increase the capacity by 50%. Ms. Mann noted that mosquito screens, electrical wiring, plumbing, and paint are needed. Additionally, new surge protectors are needed to protect equipment. Sharing that Ivorian law requires individual medical charts to be kept for 25 years after a person's death; she noted that volunteers are needed to help computerize files. Donated equipment, which has broken- down, requires a medical technician for repairs. First phase teams are now being formed for January to April of 2010. Contact Reverend Kalamba Kilumba to schedule a team for this mission experience. If you want to lead a team to meet a specific need then you need to attend the next team meeting on June 6th at The Woodlands UMC. More information is available at the display area booth located at the church. Future projects include: • Collecting and filling a 40 foot container with medical supplies and equipment • Reconstruction of the Nursing School located on the hospital property • Repairs and construction to the Istha Seminary property Mrs. Mann reminded the delegates that there is a place in PIM for each person no matter the skill level. Nothing but Nets: Susan Silvas, St. Luke's UMC in Houston, was a member of the Nets Distribution event. Ms. Silvas shared that the job of delivering nets was only one part of the adven- ture. She noted that the Ivorian volunteers gave immunizations, Vitamin A and de-wormer to the children before they received a net and that many were involved in making this possible. With team partner, Linda Marr, Silvas recalled that children arrived at their station still screaming from their shots before they came to realize that they were then getting a present - a net. Ms. Silvas said, "I felt you (the Texas Annual Conference) with each net - you were the network behind me and I was there on your behalf. It was overwhelming to realize that we were delivering health, hope and a future to them in the name of Jesus Christ and all of that was accomplished without a word." Ms. Silvas shared about receiving a gift vase which represented the Father, Son and Holy Spirit and of a Muslim man who wanted to be a Christian because of the care given his child without question or discrimination. She concluded by noting that it was powerful to realize the power of our collective actions. Distribution team member, Eddie Hilliard, noted that a photo of children who experience malaria E-8 DAILY PROCEEDINGS

and hunger who are seen as Christ's children says it all. Hilliard noted that he went because he received so much by being a part of the solution. Africa is our neighbor and Mr. Hilliard shared that because of the conference's participation this little girl (pictured) is protected against malaria and measles. She now has a chance at surviving and reaching adulthood. Many Africans live in bamboo huts and share a community water well, yet they make their place of worship a better place than they raise their families. The church there is one of the fastest growing in the world, offered Mr. Hilliard. Marty Vaughn, a team member from the Waskom UMC in the North District offered that she has been blessed by a group of extraordinary people who demonstrated to the distribution team daily what radical hospitality is. Ms. Vaughn recalled meals shared in remote villages prepared on open outdoor fires, transportation by vans to worksites with drives over an hour and of one occasion when canoes were their mode of transportation. Ms. Vaughn told of wonderful translators who were part of their programs, helping negotiate, offering directions and information and of the armed guard who accompanied team members daily. She mentioned the joy of seeing smiles on the faces of the children who came to receive aid, despite some sites having lines with waits of multiple hours. Ms. Vaughn told of jubilant worship services which lasted 3.5 hours with large numbers of persons in attendance and recalled the second Sunday in Africa when Cynthia Harvey brought the message. She noted that her translating machine was broken so that she was unable to understand all but the parts in English but that it didn't make a difference to the ability to worship together. Noting the long hours worked by team members, Ms. Vaughn shared appreciation for the prayers and the funds provided. There remains a need for more nets as this is an ongoing project. Vaughn noted that a smile and a hug mean the same in any language. Ms. Vaughn noted that abundance of cell phones and her surprise to have service in even a local village which allowed her to send daily text messages. She concluded by say- ing that not all of us are called to go to Cote d'Ivoire but all of us are called to serve the Lord and that at this day and time the Lord Jesus calls on us. Ms. Vaughn noted that it is her prayer that our response will be, "here I am Lord, send me." Mrs. Taylor offered that there were 35 team members who went to Cote d'Ivoire and recognized some of the other lay team members before a sharing of her experience. Mrs. Taylor emphasized the heat which was intensified because of the crush of bodies. She told of noise which was almost deaf- ening with countless children screaming first in fright then pain. The process required that fingers be marked to ensure that a child didn't go through the experience more than once. Children proceeded through a line which included a vitamin, then marking of the finger before a de-worming medication was given and then receiving a net. Team member, Will Reed, used bubbles to try to take the children's minds off the process. Once done, Mrs. Taylor shared of two local volunteers taking them on a tour of the village where they witnessed village life and saw many people in the village market wish- ing to have their picture taken. They toured the church with an alter stating in French, "Christ is risen" and had lunch at Aline Yapi's home, one of the nicest in town. She continued to tell of seeing women cooking in the courtyard surrounded by infants and children and of their delicious lunch. Taylor told of returning days later and seeing nets already hung and helping to hang nets not yet hung. She noted that never once was a request to enter a home denied and that they again were treated like royalty at Aline's home. Taylor shared that her time in Cote d'Ivoire changed her life and that she doesn't believe any of us should use the word 'need' again. Taylor concluded with the thought that abundance has nothing to do with material needs and everything to do with the way we serve each other and God. In January and February, Bishop Huie and Dr. Richard Burnham traveled to each district to introduce and discuss the appointment making system with meetings being well attended. Email addresses were collected and Ms. Taylor shared of plans to launch a laity email newsletter. Brant Mills, Conference Communications, developed a graphic and tagline, "Living our Faith, Sharing our Hope" which was chosen by survey. Taylor offered that the ripples of the logo represent all that each delegate and other laity do and suggested that when you see this logo delegates will recognize that laity DAILY PROCEEDINGS E-9

information is forthcoming. She noted that finding places for sharing stories is another way of building faith forming relationships. Good Soil Project - East District: Gil Hanke (East District) shared about the "Good Soil Project." He noted that the East District is primarily made of small membership churches with many needing a boost in spiritual passion and to learn that their best days are ahead of them, not behind them. This process is a transformation process. Hanke compared preparing soil to preparing our hearts. He noted that they begin with prayer and emphasize scripture to encourage the move from a maintenance mentality to mission. Mr. Hanke noted that the district will find the good soil and will plant seeds of love, healing and hope, then will celebrate the fruitfulness. He noted that the district has agents to bring training and resources at no cost. This is a yearly cycle: 1) Discernment (January and February); 2) Strategy (February and March); 3) Implementation (April - November). Through the process, the east District will be better able to build vital, growing congregations for the transformation of the world. Keith Tilley will head this project for the East District. For more information, Mr. Hanke encouraged delegates to look at the East District website. Northwest District - ACTS: Northwest District Lay Leader, Stephanie Griffin shared about the district ACTS Groups (Area Churches Together in Service). She noted that dividing the district into geographic segments allows for less travel and helps meet specific needs of area churches. Each group has a lay chair and enjoys fellowship beyond their congregations. Bob Ripley is the District Chair of the ACTS groups. Ms. Griffin shared that monthly meetings provide groups the opportunity to reach area goals. She also noted that the District Leadership Team provides the direction to empower and equip congregations in the development of ministries. Through these partnerships, resources are shared to provide for ministries. Each group (hubs include Tyler, Mineola, Athens and Jacksonville) has unique and specific goals. Tilley offered that the laity of the Northwest District were challenged to be the heart and hands of Jesus Christ and that laity should recognize it isn't the pastor's job but all of ours together in service. Ms. Griffin concluded by challenging delegates with that of their District Superintendent, to "go out and bear fruit." North District - Sharing and Borrowing: Martha Scott (North District Lay Leader) told of the North District's Sharing and Borrowing where each church was asked to share challenges and what they were going to do in the future. Ms. Scott told of their second speaker who shared about ministries and changed the attitude to electrifying, a concept desired by the district to be multiplied. She shared that she and Bill Taylor, District Superintendent, knew that the current model wasn't working. They also knew that many churches wanted to meet together on a regular basis to share ideas, to improve communications, and to help provide for ministry. They sought a flexible model and didn't want to reinvent the wheel. The North District appreciated the Northwest District sharing their entire program and decided, with a few minor changes, that this was what they were looking for. Ms. Scott shared of utilizing an organizational model from the West District with minor adjustments. Recognizing the challenge of geography with some having over a 2-hour drive, districts were divided into four quadrants and ACTS Groups which meet on a quarterly basis. There isn't a cookie cutter approach to each of these groups because their needs are different, Scott offered. The district leadership team is leaner with only 16 serving and new and younger people now participate. The North District is connectional with the ACTS groups as a perfect example and the key element to bringing more than a hundred churches together to share ideas and encourage each other as they seek to be in mission and ministry and make disciples for Jesus Christ. Introduction of District Lay Leaders: Alfred Calloway, Central South; Reginald Clemons, South; Don Cooper, Southwest; Roy Follmer, Southeast; Stephanie Griffin, Northwest; Kathi Paul, Central North; Mary Reed, West; Scott Atnip, West- Associate District Lay Leader; Martha Scott, North; Carroll Greenwaldt, Associate North District; Bill Teague, East District. New Laity Blog: The Laity Blog address is www.txcumc.org/laityblog. Laity Luncheon: Leah Taylor reminded the delegates of the laity luncheon and that tickets are E-10 DAILY PROCEEDINGS

still on sale. Ms. Taylor led the lay members present in a litany for Christian Unity. The Laity Session ended at 10:45 am.

Laity Minutes respectfully submitted by Associate Secretaries, Jill E. Krone Donna Alexander

Day Two

THE GATHERING CELEBRATION Monday, May 25, 2009, 1:00 p.m. Sanctuary, The Woodlands United Methodist Church The Woodlands, Texas

The Houston Children's Chorus began the Gathering Celebration with two musical presentations of "Canticle of Praise" and "God, Who Touchest Earth with Beauty," directed by Stephen Roddy, Director of Music Ministries at Grace Presbyterian Church in Houston. Song Leader, Barry Barrios, Director of Music and Fine Arts at First UMC in Katy, led the delegates and guests in the opening hymn, "And Are We Yet Alive." Liturgists Matthew Dorris, Rev. Rob Fisher, Rev. Joe Cortinas, Rev. Ricky Georgetown, Tommy Settlemyre, and Rev. Kitty Key led the Litany of Life, which was followed by a musical presentation of "Children of Today," featuring the Houston Children's Chorus and the Texas Conference Children's Chorus, which is comprised of children from First UMC Katy, Christ UMC Sugar Land, Spring Woods UMC Houston, and Holy Covenant UMC Katy. Bishop Janice Riggle Huie delivered the Episcopal Address.

Glimpses of Heaven on Earth 2009 Episcopal Address

Grace and peace to you in the name of the Risen Christ. Friends, it has been an incredible year since last we met. We've been beset on every hand by adversity, disappointment and disaster. In the midst of the rising waters of a hurricane and the ever- shifting winds of economic uncertainty, the people of the Texas Annual Conference have persevered and are hopeful. We have girded ourselves for sacrifice and service, not just in the exigency of this moment, but sacrificing and serving as we have always done. We have witnessed the love of United Methodists bringing hope to battered communities. We have experienced glimpses of heaven on earth. At this Annual Conference we rejoice. God is gracious and good. Take a moment to remember this year. Hurricane Ike, the third most costly hurricane in U. S. history, poured through the entire length of the Texas Annual Conference causing extraordinary damage. The deepest economic recession in more than half a century has cast a dark cloud over the entire globe. While we are blessed that Texas has been spared the worst difficulties, many of our own members have lost investments or jobs or both. Then, just a month ago, an outbreak of the H1N1 virus caused some to question whether this gathering should even be held. Wow! If you are feeling a little anxious or weary, it would be understandable. If you are feeling discouraged or downright frustrated, most of us would be sympathetic. Nevertheless, in the words of the Apostle Paul paraphrased by Eugene Peterson, "We've been surrounded and battered by troubles, but we're not demoralized. We're not sure what to do, but we know that God knows what to do. God has- n't left our side. We are not giving up and we are not keeping quiet." What sustains us in the midst of such jarring realities? What beckons us forward? What can't we keep quiet about? The Texas Annual Conference continues to take bold, imaginative action to fulfill DAILY PROCEEDINGS E-11

God's dream that God's kingdom will come on earth as it is in heaven. We continue to engage with God's world. We can't help but proclaim to a wounded, hurting world, "Neither death nor life nor angels nor principalities nor height nor depth nor things present nor things to come nor anything else in all creation will be able to separate us from the love of God in Jesus Christ our Lord." God's new creation was launched on Easter morning when Jesus came forth from the tomb. By the power of his resurrection, his disciples become new creation people, birthing the life of heaven on earth. In the language of the Biblical scholar N. T. Wright, God's dream for us is "to colonize earth with the life of heaven." To say it another way, again in Wright's words, Christ wants "to make [his disciples] agents of transformation of this earth." Therefore, United Methodist disciples help people re-build their lives and homes after the storm- whether that storm is a natural disaster or an economic one. United Methodist disciples help people re-claim their lives from whatever demon holds them fast: drugs, greed, scars of abuse, or depression so deep that life seems not worth living. United Methodist disciples help to heal families that are wounded or exploited or self-destructing. United Methodist disciples seek justice. They resist tempta- tion. They ensure God's children have adequate food, clothing, shelter, health care. They start new congregations and transform existing congregations so that more disciples can be made for Jesus Christ. We embody the words Jesus taught his disciples to pray, "Thy kingdom--God's reign--come on earth has it is in heaven." The primary place through which this annual conference fulfills God's dream of bringing heaven to earth is in and through our congregations. So how are we doing?

Responding to Hurricane Ike

I've never been more proud of our congregations than in the aftermath of Hurricane Ike. Despite the damage in their own homes and churches, the people of our congregations moved quickly to help their neighbors. You brought food and water, cleared debris, and mucked out houses and churches. You worked the streets and neighborhoods covered in foul-smelling mud and the wreckage of people's lives. You partnered with sister congregations in heavily damaged areas. When the cameras and media and national attention disappeared and the world focused on the falling stock market and the general election, you remembered your neighbors. It was a remarkable manifestation of vibrant congregations changing lives and re-shaping futures. It was a glimpse of heaven on earth.

Preventing malaria

Two months after Ike, the people of the Texas Annual Conference were not deterred and fulfilled a commitment. We assisted in the distribution of over 855,000 mosquito nets in Cote d'Ivoire. Because of your effort in partnership with the Cote d'Ivoire Annual Conference, General Board of Global Ministries, United Methodist Communications, United Nations Foundations and others, over a million young children in Cote d'Ivoire will grow up to become doctors, teachers, pastors, business persons, entrepreneurs, and leaders in their church and nation because tonight they are sleeping under a long- lasting, insecticide-treated mosquito net. We have made new friends and experienced life-changing worship. We have discovered that United Methodists in Cote d'Ivoire take evangelism very seriously. I learned earlier this month from Bishop Bickerton, chair of the Global Health Initiative that the million dollars you raised has triggered the additional giving of $33 million, mostly for Cote d'Ivoire. Money has been set aside to cover the entire country of Cote d'Ivoire with one net per household in 2010. That is 8 million nets! The Texas Annual Conference has been invited back to help distribute them. Friends, there is no doubt that this outcome is the work of the Holy Spirit. It is an extraordinary manifestation of the power of God. You changed lives and re-shaped futures. It is a glimpse of heaven on earth. E-12 DAILY PROCEEDINGS

Equipping Congregations

None of this engagement could have occurred without strong, mission focused pastors and congregations. The purpose of our annual conference is to equip local churches to make disciples for the transformation of the world. The Center for Congregational Excellence has offered 21 equipping events with approximately 1250 people in attendance. Those events have covered topics ranging from leading change to improving fund-raising to expanding ministry. Both the annual conference assessment and our own reviews report numerous congregations stepping out in new ways to practice radical hospitality. Our focus this annual conference is on the practice of faith-forming relationships or as some would say, "intentional faith development." Radical hospitality invites and welcomes. Passionate worship opens hearts to Christ's pardon, love and grace. Risk-taking mission and service sends us out into the world. Faith forming relationships cause us to mature in the love of God and neighbor. Wesley's word is "sanctification," the maturing in faith made possible by the Spirit as we grow in Christ-likeness. Small groups are the primary Wesleyan way that Methodists practice faith forming relationships. For example, last summer almost 3,000 youth and over 700 adults experienced the opportunity to grow in their faith as they participated in summer camps at Lakeview. Another 2200 youth and nearly 900 adults took part in UMArmy experience. These experiences recreate us in the image of Christ and awakens in us a desire to love our neighbors.

Starting New Congregations

This last year, you started six new congregations to make more disciples of Jesus Christ for the transformation of the world. Since 2005, 15 new congregations are maturing and bearing fruit in the Texas Annual Conference. On any given Sunday, over 2,000 people are worshipping in these new congregations. Children and adults are being baptized. They are receiving Christ by profession of faith. They are maturing in love of God and neighbor. They are engaging in mission. I've had the privilege to visit some of these new faith communities. Young families. Senior adults. Middle-aged folks. Usually kids everywhere. Poor people. Wealthy people. Everybody in between. Hispanic. African American. Anglo. Ex-offenders. Corporate boardroom folks. Unemployed. Blue collar. Management. Persons in the recovery community. Congregations changing lives and reshap- ing futures for Jesus Christ. It is a glimpse of heaven on earth every time.

Supporting Our Pastors

We know that our pastors are our most precious resource. They are also our most vulnerable. Leading congregations to make disciples in a rapidly changing world is challenging, demanding work. The Center for Clergy Excellence is seeking to support and equip our pastors. Over one hundred pastors attended a seminar on "Leading through Resistance" with Dr. Gil Rendle. Pastors and laity have been trained in "You Say Goodbye and I Say Hello," events so that transitions at the time of an appointment change will be less stressful and more welcoming. Pastors are accessing the Birkman leadership assessment process and coaching to improve their leadership skills. We give thanks that another group of clergy and spouses enjoyed participating in a Marriage Renewal retreat this last year. A total of 44 couples have been blessed by these retreats since their beginning in 2006. These wonderful experiences are offered at no charge to our pastoral families through a gift from a lay couple who love pastors and want to support clergy families in this life-nour- ishing way. Pastors and congregations making disciples of Jesus Christ for the transformation of the world is a beautiful sight to behold. I am grateful for every one of our pastors and their families, and I'm DAILY PROCEEDINGS E-13

proud to serve as your bishop.

Evidences of Fruitfulness fall short

Let's talk about Evidences of Improvement. I promised you the first year I arrived that I would always be truthful with you. As we look back over three years of hard work of implementing our vision, mission, practices and beliefs, we clearly have not met our own expectations in the evidences of fruitfulness. 1. Attendance Last year I reported the first attendance increase in a long time. This year our attendance fell from nearly 107,000 persons to just over 105,000 persons. Certainly, this is not the growth we expected. There's no doubt the hurricane effected us negatively, but it is hard to determine how much. On the other hand, those 2,200 people attending our new churches every Sunday are not included in this count because those churches are not yet chartered. 2. Professions of faith The number of congregations receiving at least one person by profession of faith Jesus Christ dropped from 425 churches to 417 churches this past year. At one level that is only eight churches fewer. However, it is also the first time in the last five years that we've seen a decrease in the percent- age of congregations receiving at least one person by profession of faith. Even so, approximately 60% of our congregations are receiving at least one person by profession of faith each year. That is consid- erably stronger than the national average. 3. Apportionments Financially, the big drop in our apportionments occurred in 2007. Last year we crept up by about a half a percent. A five year chart looks like this.

Second Mile Giving Even though you were worried about the economic situation, you reached into your savings accounts and gave generously for Ike recovery. Beyond apportionments, the conference has received over $1.5 million to help churches and people affected by the hurricane. $77,000 came primarily from clergy-pastor to pastor-and was designated for clergy families who lost personal belongings in the floodwaters. The Methodist Hospital sent a grant of $100,000 per year for five years. Individual churches have given hundreds of thousands of dollars directly to sister congregations. Then came a gift from Cote d'Ivoire. The people of our partner conference Cote d'Ivoire live in a country where the average annual per capita income is $660. Our friends sent us a check for $4,000 to help us recover from Hurricane Ike. I couldn't help but think of Paul's letter to the Corinthians. He says, "We want you to know, brothers and sisters, about the grace of God that has been granted to the churches of Macedonia. Their abundant joy and extreme poverty have overflowed in a wealth of generosity on their part. They voluntarily gave according to their means, and even beyond their means, begging us earnestly for the privilege of sharing in this ministry to the saints." It was a glimpse of heaven on earth. This conference has a long history of generosity extended through the general church connection. Over the last three years we have also received generously through the general church connection. The United Methodist Committee on Relief has committed $1.5 million for Ike recovery. Combining contributions for Katrina, Rita and Ike, this conference will have received nearly $6 million from UMCOR in the past three years to help our battered communities recover. Such giving and receiving demonstrates the power of the United Methodist connection at work. Cleaned up property, re-built homes, and hopeful people are outward signs of God's transformation on earth.

Hands on Mission The Texas Annual Conference continues to increase in participation in hands-on mission. Because of your intentionality to love your neighbor-and by making hands on mission a priority in your con- E-14 DAILY PROCEEDINGS

gregations-and because so many United Methodists volunteered after Hurricane Ike-we served in record numbers! On behalf of all the recipients of your labors, thank you. Another glimpse of heaven on earth!

Holding One Another Accountable

These indicators of fruitfulness - attendance, professions of faith, apportionments, hands-on mission - are realities for which you should hold your bishop accountable. In the midst of a growing pop- ulation, I don't believe the numbers about professions of faith or attendance reflect the future God desires for us or that God is asking from us. Those of us in leadership are asking "What can we learn from this information? What do we need to do differently?" This approach is the same one you would take in your local church as you study your own evidences of fruitfulness. Numbers give us important information about what is happening around us. If you and your leadership team are not studying key indicators in your congregation, you are missing important information that can help your church adapt to the changing environment around it. In addition, leadership is paying special attention to the conference assessment completed by Dr. Susan Beaumont of the Alban Institute. We are learning from what you said in the online surveys and during the listening sessions. The Cabinet has already spent a full day with Dr. Gil Rendle studying and learning from the report. The Core Leadership Team has met with Dr. Beaumont twice to listen and learn what might be next. You will hear from Dr. Beaumont on Wednesday. The Core Leadership Team, superintendents and center directors have already begun to implement many of the recommendations made by Dr. Beaumont based on your feedback.

Looking ahead to next year As we look ahead to next year, starting new congregations continues to be a high priority. We know that "mother-daughter" churches get off to faster start. However, the primary reason we will be starting fewer churches this year is that we simply don't have enough mother churches. Developing more mothers is key goal for next year. On the other hand, some of our new congregations are ready to move out of rented space, buy land and build. I expect several of these new churches to charter during this next conference year. We are making major efforts to increase the number of new faith communities designed to reach Hispanic persons in our area. We are working with our sister Methodist Church in Mexico and other places to identify pastors, and we expect to begin three new Hispanic faith communities this next year. Altogether we anticipate beginning five new faith communities over the summer and fall. With God's help and a little help from the economy, we expect to launch a higher number of new church starts next year. This summer the Texas Annual Conference will offer the first Texas Conference Youth Academy. The Youth Academy is a two-week Christian formation ministry for high school juniors and seniors held on the campus of Southwestern University. Youth will hear lectures by distinguished leaders such as Bishop Will Willimon and our own Dr. Ted Campbell. They will participate in small groups, hands- on mission projects, and opportunities for creative expression. We thank both Moody Permanent Endowment and Texas Methodist Foundation for helping to fund this new beginning. Just a few weeks ago we learned that the Texas Annual Conference has been awarded a $2 million grant from the Lilly Endowment for Advancing Pastoral Leadership. This five year formation process is designed for pastors who have at least 30 years of future service. This grant is a tremendous vote of confidence in the Texas Annual Conference. Reverend Janice Virtue of Leadership Education at Duke Divinity will serve as our part-time interim director. We expect our first class to begin by October 1. DAILY PROCEEDINGS E-15

Conclusion The Apostle Paul wrote nearly all of his letters to congregations who were trying to make disciples in turbulent times. These little churches faced stiff headwinds: an unfriendly culture, difficult economic situations, and sharp internal disagreements. In different ways, Paul urges all of them to remember that Jesus Christ is Lord. He reminds them that the resurrection of Jesus is the ground of our hope. "Beloved," he says, "be steadfast, immovable, always excelling in the work of the Lord, because you know that in the Lord your labor is not in vain." Bringing the life of heaven to earth is hard work, and it's frustrating at times. It always takes longer than we think. In fact, it has taken 2,000 years already! It is easy to be discouraged and pass on tough decisions and demanding sacrifices to the next generation or beyond. In our annual conference, we are walking in territory that no other conference has mapped. There are vital lessons to be learned in moments of success, in times of failures, or even in a slough of despondency where external forces impede our progress. But by the grace of God, we press on toward the mission God has given to us, knowing that God will surprise us with resurrection when we least expect it and in a form we can't even imagine. What can we say to all of this? Despite the turbulence the people of the Texas Annual Conference have been blessed this year to see numerous glimpses of heaven on earth. By the grace of God and through sacrifice and service, we have witnessed lives changed and futures re-shaped for Jesus Christ. We have participated in the resurrection itself: resurrection turned into prayer, turned into forgiveness, turned into families saved, turned into hope restored, turned into children who have a brighter future, turned into lives redeemed. Thanks be to God for giving us these glimpses of heaven on earth. The Gathering Celebration closed with the congregational hymn "O For a Thousand Tongues to Sing." Following a short recess, the afternoon business session began.

Day Two

Business Session Monday, May 25, 2009

Call to Order: Bishop Huie called the afternoon business session to order at 1:55 p.m. Roll Call: Dr. Gail Harrelson, conference secretary, stated that roll call will by registration, which closes at 6:00 p.m. on Monday evening. Welcome: Dr. Ed Robb welcomed the Texas Annual Conference to The Woodlands UMC. DVD Reports - Faith: Bishop Huie asked for the DVD report that lifted up ministries from the Central North, East, and West Districts. The title of the DVD was "Faith" and focused on persons in extension ministries in the conference. Extension Ministries DVD: Rev. Sue Carter spoke of her rewarding work in crisis intervention; Robert Grigsby, Director of Pastoral Care Trinity at Mother Francis Hospital in Tyler addressed ministry in a hospital setting; Ed Dosart and Mike Baty, were teachers in the Followers Class. Central North District - Faith. Formed. Together DVD: The Central North district reported on the Restorative Ministry at Cypress UMC with Senior Pastor, Jerome Brimmage, Gary Taylor, Ray Sims, and Chuck Dewees. The second ministry in the Central North district was the Wesley Foundation, Prairie View A&M. Rev. Kalamba Kilumba, Wesley Foundation Director and several of the Prairie View A&M students were featured in the report. East District DVD: Rev. Kimberly Hagedorn, John Hudson, and Amy English reported on the Wack Helper ministry at Beckville UMC. Consent Calendar: Bishop Huie called on Rev. Rick Goodrich to present the Consent Calendar. Rev. Goodrich referred to page 28-29 of the pre-conference journal: E-16 DAILY PROCEEDINGS

PRELIMINARY CONSENT CALENDAR

The consent calendar will be presented as a resolution in which the reports listed can be approved in one motion rather than separate motions for each item. However, any item can be pulled off the consent calendar to be discussed and considered separately by a request made on the floor when the consent calendar is presented.

Ministries ...... Page

Assistant to the Bishop ...... 57 TACCOR ...... 57 Higher Education & Campus Ministries ...... 60 Conference Lay Leader's Report ...... 60 Core Leadership Team ...... 61 Center for Clergy Excellence ...... 75 Clergy Accountability ...... 75 Birkman Assessment ...... 76 Sexual Ethics ...... 77 Clergy Development/Spiritual Formation ...... 78 Clergy Recruitment ...... 80 Clergy Support Ministry Area ...... 82 Board of Ordained Ministry ...... 82 Extension Ministries ...... 83 Interim Ministry ...... 83 Endowment Fund Report ...... 100 Center for Congregational Excellence ...... 134 Extravagant Generosity ...... 138 Passionate Worship ...... 138 Faith Forming Worship Ministries ...... 138 Small Membership Church Committee ...... 138 Radical Hospitality & Outreach ...... 139 Age Level & Camping Ministries ...... 139 Lay Leadership & Development Ministries ...... 139 Young Adult Ministry Council ...... 140 United Methodist Men ...... 140 United Methodist Women ...... 141 Center for Connectional Resources ...... 142 Communications ...... 143 Board of Trustees ...... 143 Conference Statistician ...... 144 Safe Sanctuary ...... 148 Comparative Giving ...... 149 Lakeview Methodist Conference Center ...... 180 Texas Conference Cemetery ...... 180 McMahan Chapel Trustees ...... 180 Episcopacy Committee ...... 181 Center for Missional Excellence ...... 183 Sending Ministries ...... 184 DAILY PROCEEDINGS E-17

Parish & Community Development Team ...... 184 Restorative Justice Ministries ...... 185 School of Missions ...... 185 Mercy Ministries ...... 186 Golden Cross Ministry ...... 186 Social Principles Implementation Team ...... 187 Asian Ministries ...... 187 Church & Society ...... 188 Christian Unity & Interreligious Concerns ...... 189 Disability Concerns ...... 189 Native American Ministries ...... 189 Committee on Status & Role of Women ...... 190 Hispanic Ministries ...... 191 Peace With Justice ...... 191 General Institution Reports ...... 193 Cramer Retreat Center ...... 193 Gulfside Assembly ...... 193 Lydia Patterson ...... 194 Methodist Children's Home ...... 195 Methodist Hospital System ...... 196 Methodist Mission Home ...... 208 Methodist Retirement Communities ...... 209 Mount Sequoyah Conference & Retreat Center ...... 211 Texas Methodist College Association ...... 211 Texas Methodist Foundation ...... 213 United Methodist Foundation ...... 215 Wesley Community Center ...... 215 Higher Institutions of Learning Reports ...... 217 Candler School of Theology ...... 217 Gammon Theological Seminary ...... 218 Huston-Tillotson University ...... 220 Lon Morris College ...... 226 McMurry University ...... 228 Perkins School of Theology ...... 230 Saint Paul School of Theology ...... 231 Southern Methodist University ...... 232 Southwestern University ...... 233 Texas Wesleyan University ...... 237 Wiley College ...... 238 Miscellaneous Reports ...... 239 South Central Jurisdiction ...... 239 National United Methodist Campers, Inc...... 239

Rev. Goodrich moved the adoption of the Consent Calendar, which received a second. Bishop Huie asked if there was discussion and recognized Rev. Jim Foster to speak. Rev. Foster asked that the report from the Core Leadership Team be removed from the Consent Calendar. The Bishop asked the delegates to vote and the motion to adopt the Consent Calendar with the request to remove the Core Leadership Team report was approved. Retirement DVD: Dudley Childs. Rev. Childs spoke of his wonderful years in ministry and stated E-18 DAILY PROCEEDINGS

that small groups were instrumental in his members' faith formation. Ministry of Monitoring: Rev. Kim Meyers described the ministry of monitoring which serves a mirror to reflect who speaks and who is heard as it pertains to gender, race, and age. The results of monitoring the language used during the annual conference will be submitted to Rev. Rick Goodrich at the end of conference this year. The Texas annual conference is a widely diverse body. We often miss out on some of the gifts our brothers and sisters can bring. The monitoring process is to make sure that we hear the voices of all. Retirement DVD: Dr. Jack Shelton. Dr. Shelton spoke of his memories of ministry in both times of joy and times of sorrow and the support he received from the laity in the churches he served. Core Leadership Team Report: Bishop Huie asked Dr. Jack Steele to present the report from the Core Leadership Team and he referred to the report in the pre-conference journal as listed below.

Core Leadership Team

The Core Leadership Team was created by Resolution of the 2006 Annual Conference. The purpose of the Core Leadership Team is to implement decisions of the Annual Conference between sessions in accordance with our mission, vision, key drivers, and core beliefs and directives of the Annual Conference and the Book of Discipline, to have authority from the Annual Conference to hold bodies accountable for action, and to create a culture of accountability within the Conference by conducting an ongoing process of strategic planning, goal setting, and annual reporting to the Annual Conference. Members are:

District Representatives Central North- Mr. Oscar Garza Central South- Rev. Kenneth Levingston East- Rev. Tommy Williams North- Mr. Jerry Massey Northwest- Ms. Stephanie Griffin South- Ms. Brenda Marshall Southeast- Rev. Carla Badgett Shield Southwest- Rev. Jim Leggett West- Ms. Linda Marr

At Large Bishop Janice Riggle Huie (Chair) Rev. Richard Burnham (Cabinet, Southeast) Ms. Leah Taylor (Conference Lay Leader, Southwest) Rev. Jim Jackson (Central South) Mr. Jack Steele (Central South) Rev. Jacqueline King (Central North)

Ex-Officio Rev. Richard W. Goodrich (Assistant to the Bishop) Rev. Elijah Stansell (Center for Connectional Resources) Rev. Karen Dorris (Center for Congregational Excellence) Rev. B. T. Williamson (Center for Clergy Excellence) DAILY PROCEEDINGS E-19

Rev. Cynthia Harvey (Center for Missional Excellence) Ms. Eleanor Colvin (Director of Communications)

Key activities of the Core Leadership Team during the last year include: o Met with District Superintendents, District Lay Leaders, District Leadership Team Chairpersons about communications and relationships o Monitored and assessed 2008 Evidences of Fruitfulness o Worked with Dr. Susan Beaumont of the Alban Institute, an outside consultant in the assessment of the conference structure, vision, mission, key drivers and core values o Continued to develop a strategic clergy initiative o Monitored and assessed the work for the Centers of Excellence o Worked on strategic visioning for the Core Leadership Team and the Centers for Excellence The Core Leadership Team is a servant leadership group. Its activities are undergirded with fer- vent prayer and diligent study of Scripture. The Core Leadership team exists to give life to the conference's vision and values. The work of the team is focused on vision and strategy.

Key Activities this year a) Assess Structure and implementation b) Develop Advancing Pastoral Leadership with the endowment grant of $2,000,000.00 from the Lilly Foundation designated for pastoral leadership development. This program recognizes the responsibility of us to identify and prepare future leaders. This next year the CLT will take time to make sure that the annual conference advances Pastoral Leadership in an effort to develop pastors to replace those leaders who have gone before. Mr. Steele moved the adoption of the Core Leadership Team report. Bishop Huie recognized Rev. Jim Foster, Senior Pastor of the John Wesley United Methodist Church in Houston, Texas, who had a question. Request for the Bishop's Decision of Law: Rev. Foster submitted a written statement requesting that Bishop Huie make a rule of law on the legality of the Core Leadership Team's decision to establish an early retirement incentive plan using money from the unrestricted pension fund. The formal written question submitted read as follows: "I request your ruling of law, on the decision of the Core Leadership Team to offer retirement incentives, utilizing funds from the Pension Reserve, in relation with 613, #1 of the 2008 Book of Discipline." Bishop Huie received the request and explained to the delegates the procedure to follow in a request for a decision of law. Bishop Huie explained that she would give consideration to the request and offer a time line as to when she would render a full ruling before the end of this annual conference. She explained that she had up to 30 days following the close of the conference to submit her decision. (Conference Secretary's note: see ¶2609.6 in the 2008 Book of Discipline. The secretary will include the bishop's decision of law in the minutes of the 2009 Annual Conference Journal as an addendum.) Bishop Huie then asked for The Methodist Children's Home report, which was in the form of a DVD presentation. Methodist Children's Home DVD. The Methodist Children's Home has been a safe haven for children and youth for many years. The Methodist Children's Home fosters an environment of faith and love that encourages youth and children to develop into Christian adults. Chancellor's Report: Mr Gibb Walton: Earlier in the year Mr. Walton attended the Legal Forum. The one thing he learned from those meetings is the great Conference we have in the Texas Annual Conference. Hearing about the legal problems of other Conference he is proud of the clergy and lay leaders in the Texas Annual Conference. This year the conference has no serious pending litigation pending. There is one minor litigation pending over a piece of property that conference leaders feel was illegally taken from us. A count- E-20 DAILY PROCEEDINGS

er claim has been filed against the annual conference but the anticipation is that it will be settled out of court. Mr. Walton took a moment of personal privilege to mention one of the more obscure amendments that will come before the delegates on Tuesday. Amendment number 17 allows for lay persons to serve on the Committee on Investigation with vote on clergy related matters. This is important for fair process and to support the current wording in the Book of Discipline. Bishop Huie thanked Mr. Walton for his many hours of work on behalf of the annual conference as legal counsel. Retirement DVD: Dr. Von Dawson. Dr. Dawson spoke of his love for camping and the impact camp has had on youth through the years. He reflected on the countless number of persons who were called into ministry through summer and mid-winter camping. He said he hoped to have many more years as the administrator of Lakeview Methodist Conference Center. Recess: Following a few announcements from Rev. Rick Goodrich, Bishop Huie granted a fifteen minute break at 2:24 p.m. Call to Order: At 3:05 p.m. and mentioned that in the spirit of remembering those who gave their lives in service to the country to protect our freedoms, it was fitting to take a moment to pray. She asked Rev. Rick Goodrich, who is a veteran, to offer the prayer. The Board of Ordained Ministry Report: Dr. Tom Pace. Bishop Huie called on Dr. Tom Pace to bring the report from the Board of Ordained Ministry. Dr. Pace asked the conference to keep the members of the Board of Ministry in prayer as they deliberate in their work. He mentioned the full report could be found on page 82 of the pre-conference journal. Dr. Pace introduced the candidates for commissioning and ordination, asking for those who were probationary deacons and elders to come forward. Bishop Huie presented them to the conference. Then those who were received earlier in the day were presented for full membership and ordination as deacons and elders. Bishop Huie asked them the historic questions. The annual conference received the candidates with a standing ovation and applause. Rev. Pam Besser presented the candidates for certification in Specialized Ministry: Kristen Hailey, Youth Ministry; and Jennifer Lynn Powell, Christian Education. Bishop Huie thanked the members of the Board of Ordained for their report and called on the next DVD presentation. Central South District Faith Sharing DVD: St. Paul's UMC, Houston. Dr. Jim Bankston, Senior Pastor, and Nataly Negrete, John Howard, Director of Hispanic Ministry spoke of the lives touches and changed through education in the Hispanic ministry at St. Paul's. Rev. Wilson Boots, Missionary to Columbia spoke of the work being done with the people in Colombia. Northwest District DVD: Carroll Springs UMC. Rev. Matthew Smith and Dana Mitchell, Choir Director spoke of the ministry their congregation is performing with senior adult needs. North District DVD: McCary's Chapel UMC. Rev. Charlotte Austin and Kenny Shuler, member, described the way faith forming relationships were developed through meeting people's simple needs over food and fellowship. Lay Leader's Report, Mrs. Leah Taylor: Every where I have gone my faith has been stretched and has grown. Now we have the opportunity to worship, celebrate our achievements, and vote on the amendments sent to us from the General Conference. At the 2008 General Conference adopted and has implemented a piece of legislation that could turn the UMC around. New members are asked to support the UMC with their prayer, presence, gifts, service and witness. We as members renew our vows each time. Prayers we can do in private, Presence is done in worship and by participating in the daily life of your local church. Gifts can be a little more problematic. Service is my most exhilarating of the vows. I like to get out and get involved. So why the addition of the word witness to our vows? I have come to the conclusion that prayers, DAILY PROCEEDINGS E-21

presence, gifts and service are easy. It is more difficult to witness. The witness added to our membership vows is where the rubber meets the road. Shares the story of Philip and the eunuch. By adding the word witness we acknowledge that one day we too will encounter a eunuch in our lives. We will be called upon to share the story of Jesus. He had what he had come for the peace and salvation. We can change the lives of other through our witness. Let us come together with our witness of love and rejoicing. Let us bring the gospel looking for those outside the church waiting for us to bring Christ to them. Bishop Huie thanked Mrs. Taylor for the report and called for the Methodist Retirement Communities report. Methodist Retirement Communities DVD: The Methodist Retirement Communities offer resi- dential living, assisted living, memory support, skilled nursing care, rehabilitation services, home health services, and opportunities for worship and spiritual study. Wiley College DVD: The DVD featured Melodie Sheridan Patterson and Michelle Hall who spoke of creating a community of learning and faith on a college campus. Report of the Committee on Episcopacy - Dr. Jim Bankston, Chairman: The report was submitted as follows: It is my great honor to serve as the chair of the Committee on Episcopacy for the Texas Annual Conference. Last year was, of course, a year of the reassignment of bishops across our connection. We were certainly hopeful that Bishop Huie would be reassigned to the Texas Annual Conference for another quadrennium, and of course that was the case. Bishop, I'm sure I speak for all of us when I say we are very glad to welcome you back for another four years as our Episcopal leader. You have brought energy, wisdom, leadership, creativity and deep faith as a part of who you are to the Conference and we are grateful and better for it. During the two years that you served as President of the Council of Bishops, you may have neglected your own health, it was a grueling pace, but you never neglected your conference. At the same time that you were leading the reform movement of the General Church, you were taking on long standing inertia in the Texas Conference and moving us forward. Now that you are no longer the President of the Council, we are running as fast as we can to keep up with you, and we thank you for it. Let me mention a few specific highlights, and then offer a consideration and I will conclude this report. First of all, members of the Conference, I want us to have an opportunity to hear from Dr. Bob Huie. As you may know, Bob is retiring this year from the Southwest Texas Annual Conference and he just may not come to Conference next year. So, I would like to give Bob Huie the opportunity to address the Conference. Dr. Bob Huie offered his words of appreciation to his wife, Bishop Janice Riggle Huie and said that she was his "glimpse of heaven on earth." Then Dr. Bankston continued the report. Thank you, Bob. Let me just remind the Annual Conference that it was through the Hard work and dedication of our Bishop that we have received a Lilly Endowment grant for $2,000,000.00 to be used for enhancing pastoral leadership in the Texas Annual Conference. A team will decide how best to use this grant, but what a wonderful opportunity to make a difference in our church for years to come. Bishop, I want to note for the Annual Conference that as you lead all of us, you also more particu- larly lead the staff of our United Methodist Center. We have very capable leadership in our Conference staff and I would want us all to be aware that our Conference staff at the United Methodist Center has been reduced from 35 to 26 people, without comprising excellence, service or leadership. We applaud you and your staff for both your effectiveness and efficiency. As all of us are aware, the General Conference mandated the reduction of the number of bishops in each jurisdiction. As this process plays out, we may see some changes in our Conference and those around us. We will keep you and other bishops in our prayers as you and others charged with this E-22 DAILY PROCEEDINGS

responsibility make difficult decisions. We will keep you in our prayers for all that you do. One last concern, Bishop. We are all very aware that your much needed leave time was interrupt- ed last fall by Hurricane Ike. When churches and congregations were affected by this act of nature, you gave up your time away to be back here with us. We are grateful for your pastoral response, and your support during such a difficult time was necessary and appreciated. However, Bishop, I want to encourage you to find time for renewal and rest in sufficient time spans as to truly be helpful. We want you to keep doing what you do so well for a long time. Bishop, I hope I am not betraying a trust, but sometimes when you are not listening, we refer to you as "The Energizer Bunny." You never seem to run down. But we want you to take time to recharge your battery. Thank you for your leadership for all of us. Now, Bishop, with your permission, I would like to end my report as the Chair of the Committee on Episcopacy and offer a brief proposal in my capacity as Chair of the Committee on Episcopal Residence. This proposal actually comes from both committees. We have made available both through emails before the beginning of Conference and in hard copy in the pews today, copies of the proposal. For several years now, we have been monitoring our Episcopal residence. I may be one of the few people in the room today who was present at a called session of the Annual Conference that met in First United Methodist Church, Lufkin in 1972 to vote to purchase our present Episcopal residence. The two committees, Committee on Episcopacy and the Committee of Episcopal Residence, both believe that now is the time to consider a new Episcopal residence. I will simply introduce the consideration today and give you time to think and talk about it. My intention is at some point to bring before the Annual Conference a resolution that would allow us to discuss this proposal and hopefully move it forward." Dr. Bankston explained that there was approximately $150,000.00 worth of deferred maintenance needed on the current residence. There is $150,000.00 in the CFA building reserve fund. Thought should be given to spending this $150,000 on a new residence rather than on maintenance on the old one. It is a favorable time economically to invest in a long term investment for the annual conference. A shorter commute time would enhance the convenience and productivity of the bishop. An agent familiar with the market areas with one of the major real estate firms in Houston has agreed to reduce the commission from 6 percent to 4 percent. The cost in additional funds between the sale of the existing home and the purchase of a new home would be in the $250,000 price range. Financial arrangements would be arranged by the CF&A. The two committees believe the money should be spent on a new residence rather than on presently needed maintenance. With those words, Dr. Bankston concluded the report. Retirement DVD - Chick Cullen. Rev. Cullen feels his greatest joy in ministry is found in men- toring others who are called into ministry. Retirement DVD - Ferel Little. Rev. Little believes it's important to stand on the truth of the gospel. He recounted some of the joys he experienced in baptism and performing weddings. Cokesbury Report - Gordon Dillahunty, Houston Cokesbury Store Manager. Mr. Dillahunty mentioned that we are blessed to have a good core team that helps run the store. When Methodist churches turn to Cokesbury for Sunday School and other resources, we also assist churches hit by natural disasters. In addition to assistance in times of disaster relief, The United Methodist Publishing House also has provided funds and resources to third world churches. He invited the delegates to stop by the Cokesbury display and look at the resources that are available. This year the Publishing House has been adversely affected by the economic down turn. They are taking action to assure that the Cokesbury stores sustain ministries to the church while cutting expenses. Mr. Dillahunty was sad to report to the annual conference that the United Methodist Publishing House will not be able to distribute funds to the Conference for the claimants' pension fund this year. He ended his report with an affirmation of how much Cokesbury values and appreciates the continued support. Bishop Huie thanked Mr. Dillahunty for the report and turned to the next retire- DAILY PROCEEDINGS E-23

ment DVD. Retirement DVD - Rev. Janet Blackburn. Rev. Blackburn has discovered how to share the Christian faith through care for animals and nature. Lakeview Methodist Conference Center Report - Don Strickland. Mr. Strickland referred to the Lakeview report on page 180 in the pre-conference journal. He mentioned a couple of action items. There is a resolution for approval of the amendments to the Lakeview by-laws. Mr. Strickland moved the adoption of the report. However the resolution did not meet requirements for adoption since it was submitted late. Dr. Jack Shelton moved to suspend the rules. There was a second and the conference voted 2/3 majority to suspend the rules to consider the by-laws. Mr. Strickland referred to the copy of the by-laws and put the report before the conference in the form of a resolution with changes to the by-laws as stated: Where as the Board of Directors of Lakeview Methodist Conference Center (herein called Lakeview) recognizes the efficiency of the streamlining its leadership for effective decision-making as modeled by the Annual Conference and other institutions, and Whereas, some language in the Lakeview by-Laws needs clarification and modification, Be it resolved that the Lakeview by-laws be adopted by the Texas Annual Conference as amended and approved by the Lakeview Board of Directors. A summary of the amendments follows: 1. Clarification of the membership qualifications to include specifically clergy as members of the Texas Annual Conference. 2. reduction in the size of the Board of Directors from 55 to 15 3. Better definition of Standing Committees. 4. Clarification of the definition of Superintendent (clergy, non-clergy retired clergy) 5. Review of By-laws to be done annually by the Executive Committee

Bishop Huie asked if there were questions or discussion on the resolution. Aletha Kirkwood asked why there was a reduction of board members from 55 to 15. Mr. Strickland explained it was easier to get the members to a meeting with the needed quorum. A question was asked if the manner of hiring Lakeview administrator had changed. Monroe Walker was called upon to answer the question with the explanation the nothing changed in the proposed by-laws as to the method of hiring the superintendent. A question was raised concerning the perceived change from an appointive position of the director to one who is hired by the Lakeview Board. Mr. Walker answered that it was a clarification of the role of the directors. Alyce Christian raised the question of the clergy/laity ratio and what number would be eliminated. Mr. Walker explained that the numbers were reduced when the Districts were realigned in the structure change of the annual conference. While the numbers are lower, the ratio has not changed. Rev. Matt Idom called for the question. Bishop Huie asked the conference to approve the resolution on the Lakeview by-laws by raised hand. The resolution is so approved and is found in the following document.

BY-LAWS OF LAKEVIEW METHODIST CONFERENCE CENTER TEXAS ANNUAL CONFERENCE - THE UNITED METHODIST CHURCH

ARTICLE I Principal Office The principal office of the corporation is hereby fixed and located on the site of the Lakeview Methodist Conference Center ten (10) miles southwest of the City of Palestine in Anderson County, Texas. The above location shall continue to be the principal office of the corporation until otherwise ordered by the Board of Directors, and said Board of Directors shall have full power and authority to E-24 DAILY PROCEEDINGS

change and fix, from time to time, the location of the principal office of the corporation in said County of Anderson.

ARTICLE II Board of Directors Section 1 - Number of Directors. There shall be a board comprised of fifteen (15) Directors including both ex-officio and elected Directors. Directors as used herein are one and the same as Trustees. Section 2 - Qualifications. Directors of this corporation shall be members of a congregation of the United Methodist Church of the Texas Annual Conference, or members of the Texas Annual Conference. Section 3 - Membership. (a) Ex-officio directors shall include the presiding Bishop of the Texas Conference or his/her designee, the District Superintendent of the Northwest District, and the Lakeview Superintendent. (b) Twelve (12) Directors will be elected to serve for four (4) years or until they are no longer quali- fied to serve as defined in Article II Section 2, or upon unexcused absences from three (3) successive meetings. At least one-third (1/3) of the twelve (12) Directors shall be clergy of the Texas Annual Conference. These Directors are eligible to succeed themselves until such person has served twelve (12) consecutive years on the Board of Directors. After a one year break in service, Directors who have previously served twelve (12) consecutive years will be eligible for service as stated above. Directors will be nominated by the Nominations Committee and submitted to the Board of Directors for approval at a regular meeting. Approved members of the Board of Directors shall be presented to the next session of the Texas Annual Conference for ratification. If the Annual Conference does not ratify the approved members, the matter will be referred back the Lakeview Board who will submit different members at the next session of the Annual Conference. (c) The following four (4) standing committees of the Board of Directors shall exist: Budget/Rates/Salaries, Building and Grounds, Insurance, and Nominations. The Chairs of said standing committees shall be held by Directors of the Board. (d) The Nominations Committee shall comprise two (2) members of the Board of Directors along with the President and the Superintendent as ex-officio members for a total of four (4) members. The Nominations Committee will recommend the Officers and the Standing Committee Chairs, except the Chair of the Nominations Committee, to the Board of Directors at any regular meeting for election. The Nominations Committee will recommend all Directors for election to their term as members by the Board of Directors at a regular meeting. (e) The Executive Committee shall comprise the positions of President, Vice President, Secretary, Northwest District Superintendent, the Lakeview Superintendent, Chair of Budget/Rates/Salaries Committee, and Chair of the Building and Grounds Committee. The Executive Committee shall nominate to the Board of Directors for election at a regular meeting the Chair of the Nominations Committee and the other at-large member of the Nominations Committee. Section 4 - Vacancies. All interim vacancies will be filled by nominations made in the same manner by the Nominations Committee as initially stated, and elected by the Lakeview Methodist Conference Center Board of Directors for the remaining portion of the vacated term. Section 5 - Quorum. A majority of the Board of Directors shall constitute a quorum for the transaction of business at any meeting of the Board. A majority of the Executive Committee shall constitute a quorum for the transaction of business at any meeting of the Executive Committee.

ARTICLE III Directors Meeting Section 1 - Place. Meetings of the Board of Directors shall be held at such place within or without the State of Texas as may be fixed from time to time by resolution of quorum of the Board; and full DAILY PROCEEDINGS E-25

power and authority are hereby delegated to and conferred upon said Board of Directors to fix and locate from time to time the place within or without the State of Texas at which meetings of the Board of Directors shall be held. Until otherwise ordered by a quorum of the Board, meetings of the Board shall be held at the principal office of the Corporation. Meetings may be called for other convenient locations at the discretion of the President upon giving ten (10) days notice. Section 2 - Annual Meetings. A regular meeting of the Board of Directors shall be designated as the annual meeting, and shall be held no later than thirty (30) days after the adjournment of the annual meeting of the Texas Annual Conference. Section 3 - Regular Meetings. The Board of Directors shall hold not less than two (2) meetings each year, the time and place of such meetings to be determined by such Board, and due notice thereof must be given unless dispensed within accordance with these By-Laws. Section 4 - Special Meetings. Special meeting of the Board of Directors shall be held at the call of the President upon ten (10) day's notice by mail, personal service, or email, and a recital in the minutes of such special meeting of such special notice by mail, personal service, or email shall be conclusive evidence that the same was given. The President's calling a Special Meeting of the Board of Directors shall be filed with the Secretary. Section 5 - Validity of Meeting. When all of the Directors and/or Executive Committee give their written consent to the holding of a meeting (whether regular or special) and confirm the action taken at said meeting, whether said consent and confirmation in writing be before or after said meeting, the proceedings had and action taken at said meeting shall be valid irrespective of the manner in which said meeting is called or the place where it is held or whether there be less than a quorum present at said meeting.

ARTICLE IV Power of Directors The corporate powers of the corporation shall be vested in the Board of Directors which powers are: Section 1 - Elect Officers and Committees. To elect or appoint all officers of the corporation and to remove officers or appointees. Section 2 - Appoint Executive Committee. To appoint an Executive Committee composed of seven (7) Directors specified under Article II, Section 3, Paragraph (d), which between meetings of the Board of Directors shall have full authority to act on all matters pertaining to the operations of Lakeview Methodist Conference Center except acting on any land sale or acquisition or major building in excess of $500,000. The Executive Committee shall have power to authorize the execution of oil, gas and mineral leases, and timber sales. Section 3 - Fill Vacancies. To fill all vacancies on the Board of Directors and in the offices of the corporation; and in the absence or inability to act of any officer or appointee to fill such position by an appointment pro tempore, if in the judgment of the Board such be necessary. Section 4 - In General. To perform any and all other acts, not inconsistent with the articles of incor- poration, these By-Laws and laws of the State of Texas, necessary for the purpose of conducting, man- aging, and controlling the affairs and business of the corporation; and to that end, to adopt such rules and regulations as the Directors may deem expedient. Section 5 - Hiring of Employees and Fixing of Salaries. The Superintendent shall be approved and hired by the Lakeview Board of Directors upon the selection and recommendation of the Executive Committee. If the Executive Committee selects and recommends an ordained clergy subsequently approved by the Board of Directors, the Executive Committee will confer with the Bishop and Cabinet of the Texas Annual Conference to seek appointment of said ordained clergy. If the Executive Committee selects and recommends a lay person or non-appointed person, their recommendation shall be presented to the Lakeview Board of Directors for approval. Department Heads shall be employed and dismissed by the Superintendent. The Rates and Salaries Committee shall fix or change the E-26 DAILY PROCEEDINGS

salaries of compensation to be paid to the Department Heads upon recommendation of the Superintendent. The Rates and Salaries Committee shall make their recommendation to the Board of Directors for final approval. Each Department Head shall hire or fire employees under his/her supervision with the approval of the Superintendent and in accordance with policies and procedures established by Administration.

ARTICLE V Duties of Directors It shall be the duty of the Board of Directors: Section 1 - Records and Statements. To cause to be kept a complete record of all their meetings and acts, and to present at each meeting of the Board of Directors a statement showing in detail the condition of the corporation's affairs. Section 2 - General Supervision. To supervise all the acts of the officers, agents, and employees to conduct the business of the corporation generally and to determine all policies affecting the work of Lakeview Methodist Conference Center.

ARTICLE VI Officers Section 1 - Officers. The officers of the corporation shall be a President, a Vice-President, a Secretary and a Treasurer, and such Vice-Presidents, Assistant Secretaries, Assistant Treasurers, and additional officers as the Board of Directors may from time to time deem necessary or desirable. One person may hold two offices provided their duties are not incompatible. The Superintendent of Lakeview Methodist Conference Center shall be the Chief Operations Officer (COO). Section 2 - Election. All officers shall be elected by the Board of Directors as outlined in Article II, Section 3, except the Assistant Secretaries and Assistant Treasurers, who shall be appointed by the Board of Directors. A majority of votes cast shall elect or appoint. Section 3 - Term of Office. All officers elected or appointed shall take office immediately and shall hold same during the pleasure of the Board of Directors or until their successors are elected or appointed, or until they no longer meet the qualifications as outlined in Article II, Section 2. Section 4 - Removal. The Board of Directors by the vote of a majority of those present at any regular meeting may remove any officer provided for in the By-Laws, provided, however, that a motion for such removal shall be made only at a regular meeting, or at a special meeting called for the purpose and of which meeting the officer in question has had due notice; and final action thereon shall not be taken until the next regular meeting following; provided further, that the Board of Directors may suspend any such officer immediately pending further action. Section 5 - Bonds. Such officers of the corporation as the Board of Directors deems necessary shall give bonds in the sums and with such sureties as the Board of Directors may require, and the Board may from time to time change the sums required, or require new sureties to be given.

ARTICLE VII Duties and Powers of Officers Section 1 - President. The President shall have the general direction and supervision of the affairs of the corporation. The President shall, subject to the Board of Directors, be the Chief Executive head Officer of the corporation and shall preside at all meetings of the Directors. The President shall sign, as President, all instruments in writing which are necessary to be signed on behalf of the corporation and which have been first approved by the Board of Directors, all deeds, bonds, mortgages, assign- ments of mortgages, or other instrument calling for money, transferring or encumbering property, or creating any obligation or liability, present or future, positive or contingent, on the part of the corporation; provided, however, that the Board of Directors may designate other officers, or persons not offi- DAILY PROCEEDINGS E-27

cers, who may sign, on behalf of the corporation, checks, warrants, orders for money, and other instruments of every kind and nature. The President shall define duties of all committees and be an ex-officio member of all committees. In consultation with the Superintendent and the chair of each standing committee, the President shall appoint all committee members to their respective committees be they Directors or non- Directors. Section 2 - Vice-President. The Vice-President shall assist the President in the exercise of his/her duties; and in the absence of the President, or in the event of his/her inability to act as such, the Vice- President shall temporarily perform all the President's duties and shall have all his/her powers, and when performing the duties of the President, such Vice-President shall sign his/her name as Vice- President. Section 3 - Secretary and Assistant. It shall be the duty of the Secretary, or in his/her absence or inability the Assistant Secretary, to keep a record of the proceedings of the Board of Directors, the Executive Committee, and any other standing committee which may from time to time be provided for; to keep the corporate seal of the corporation, the book of By-Laws, and the book of the Minutes of the Board of Directors; to affix the corporate seal to all papers and documents requiring the affixing of such seal; to countersign every instrument of every kind whatsoever which requires the signature of the President to be countersigned; to keep open for the inspection of any member of the Board of Directors, during office hours, accounts and books of the corporation; to serve all notices required either by law or by the By-Laws of the corporation; President, or the Board of Directors. Section 4 - Treasurer and Assistant. The Treasurer or authorized representative shall receive and keep all the funds of this corporation deposited in the name of the corporation in such banks as the Board of Directors shall from time to time designate; the same shall be paid out only by checks signed and countersigned by those authorized by the Board of Directors to do so. Except as provided by Article VII, Section 1, and except as may otherwise be provided by the Board of Directors, the Treasurer, or authorized representative shall keep a complete set of books in such manner that they shall show the whole business and business transactions of the corporation, its debts, assets, and liabil- ities, and shall deliver a balance sheet there from to the Board of Directors when required by them. Section 5 - Superintendent. The Superintendent shall be the Chief Operating Officer of Lakeview Methodist Conference Center. He/she shall be responsible for implementing the policies of the Board of Directors, administering the operation of the corporation, and supervising the work of all employees. He/she shall be directly responsible to the Board of Directors and shall keep the Board fully informed concerning the condition and operation of the corporation.

ARTICLE VIII Seal The corporation shall have a common seal containing the words, "Lakeview Methodist Conference Center, The United Methodist Church, Palestine, Texas"

ARTICLE IX. Fiscal Year The fiscal year shall commence the first day of January and end the thirty-first day of December of each year.

ARTICLE X. Majority to Decide In the deliberations of all meetings of the Board of Directors provided for in these By-Laws, or of standing or special committees created hereunder, a majority vote of those members present shall decide all questions, except in those cases where it is otherwise specified; and provided a quorum is present as defined in Article II, Section 5. E-28 DAILY PROCEEDINGS

ARTICLE XI. Amendments These By-Laws may be altered, changed, or amended by a two-thirds vote of the Board of Directors at any regular meeting where such proposed action has been announced in the call and notice of such meeting with a copy of such proposed amendment being furnished to each member of the Board of Directors at least ten (10) days prior to the meeting or at any special meeting of the Board of Directors called for that purpose, provided that notice is given of such proposed amendment to each Director by furnishing a copy of such amendment to each director at least ten (10) days prior to such meeting or such may be amended by the unanimous consent of all members of the Board of Directors, waiving such notice and such time above required. Such amendments shall only be effective when approved by the Texas Annual Conference of the United Methodist Church. If the Annual Conference does not ratify the Board approved amendments, the matter will be referred back the Lakeview Board for modification and presentation at a future session of the Annual Conference. The By-Laws shall be reviewed annually by the Executive Committee. The By-Laws of Lakeview Methodist Conference Center were adopted at a regular meeting of the Texas Annual Conference on the 31st day of May, 1989. ------

Retirement DVD - Bill Stell. Rev. Stell tried to witness to others with love and compassion. Lakeview Task Force - Dr. Richard Burnham. Dr. Burnham referred the conference to the report on pages 73-74 of the pre-conference journal. He offered a brief history of the historic relationship between Lakeview and the annual conference since 1952. In 1993 Bishop Hart published a book about Lakeview. In 1952 the Conference decided that Lakeview should be incorporated and the deed would be signed over to Lakeview. The minutes recorded in the 1953 journal indicates that this was done. The Lakeview board is adding a dissolution clause, that if the Lakeview Conference Center folds, then the property holdings will revert back to the Texas Annual Conference. Dr. Burnham noted the following: 1. The Lakeview Board can employ non-appointed Clergy or hire non-clergy as the Superintendent. 2. Amendments to the by-laws have to be approved by the Conference as we have done today. 3. All apportionment askings for Lakeview went to subsidize camper scholarships. 4. Task force recommends that Lakeview charge a fair market amount for campers at Lakeview. 5. Be it resolved that we establish a fair share goal with a graduated reduction of the apportionment until it is 100% Fair Share Goal. Dr. Burnham placed the Resolution of the Lakeview Task force before the conference. Bishop Huie asked if there were questions or discussion. Rev. Matt Idom asked if some of the Fair Share Goal funds would be available for Mid-winter. Dr. Burnham responded that the funds are designated for the Summer Camping Program. Rev. Cramer Johnson asked if Dr. Burnham could tell the conference what the current market value for a child to attend summer camp at Lakeview. Dr. Burnham answered that the purpose is to be able to cover the cost per camper. Rev. Johnson commented that she was concerned that the cost will prohibit children from attending Lakeview. Dr. Burnham answered that the anticipation is to raise the funds to help every child/youth who desires to go to camp. Rev. Matt Idom explained that the Lakeview's cost per child is $180.00. With the additional supplies needed, the cost averages around $200.00 per camper. There were no further questions and the Bishop asked the conference to approve the Lakeview Task Force Resolution by raised hand. The resolution was approved. The bishop turned to the next DVD report. DAILY PROCEEDINGS E-29

Faith Formed DVD: The report featured Allen Rice Executive Director, Spirit Key, Houston, TX; David Noethlich, After School Program, Spurger, TX; Donald Lacy, Donaldson Unit, Carol Bruse, Associate Director, Center for Clergy Excellence, Houston, Tx. Each one presented the various ways our faith is formed. Nomination Report - Rev. Rick Goodrich. Bishop Huie called upon Rev. Goodrich to bring the Nominations report. He mentioned that the reports were passed out during the break. The changes are written in red and he asked the conference to review it and report back to him any further changes. Motion for Center for Connectional Resources: Bishop Huie recognized Rev. Matt Idom, who offered a motion to add to the nominations. The motion was: "I move that a Protocol of Communication be developed by the Center for Connectional Resources that will outline the methods and timing of information that is sent to and received by the delegates of the Annual Conference." There was a second to the motion. Following a discussion, Bishop Huie called for a vote by raised hand. The motion carried. Resolution In support of Extravagant Generosity - Rev. Morris Matthis. Rev. Matthis moved to suspend the rules in order to put the resolution on the table for action later. The rules were suspend- ed by 2/3 vote. Rev. Matthis moved that the resolution be placed before the conference for consideration on Wednesday, May 27, 2009. There was a second. The bishop asked for a vote by hand and the motion carried. Lydia Patterson Institute DVD. The Lydia Patterson Institute gives hope by representing the Christian faith in action and by providing bi-lingual, cross cultural ministry and student education. Retirement DVD - Dr. Charles Greene. Dr. Greene mentioned that he would be working after retirement as a social activist. He said he believed he was evangelistic in bringing people into the church. Bishop Huie thanked the conference for patience and hard work throughout the afternoon. She reminded the delegates of the very special evening worship service featuring the drama group "Friends of the Groom." Closing Prayer - Dr. Ted Smith. Bishop Huie called on Dr. Smith to offer the closing prayer for this session of the business. Recessed for the day at 5:09 p.m.

Day Two

EVENING WORSHIP SERVICE Monday, May 25, 2009, 7:00 PM God-journeys: Worship with Drama and Music

The service began with the hymn "Come and Find the Quiet Center" followed by the Old Testament Lesson from Genesis 12:1-12 from The Message by Eugene Peterson. Rather than a traditional proclamation of the message, the evening's service featured three dramas presented by the professional theater company, "Friends of the Groom." The dramatic presentations focused on the Journey, Places Along the Journey and Sharing the Journey, each of which offered insights on the call to serve, God's placement of each one called and getting reconnected when our connection to Jesus has become loose. In addition to the opening hymn, the music included Faith While Trees Are Still in Blossom, Hamba Nathi (Come Walk with Us), I Give You My Heart, and Say So. Prayers were interspersed amidst the hymns and dramatic presentations. The liturgists for the evening were Ginny Griggs of Pollard UMC in Tyler; Andrew Hook of St. E-30 DAILY PROCEEDINGS

Luke's UMC in Bryan, and Sterling Allen, Director of Music Ministries, A&M UMC in College Station. Music was provided by pianist Taylor Davis of FUMC in Fulshear; guitarist Sam Ramsey of St. Luke's UMC in Bryan; drummer Shawn Welling; and vocalists Faith Ayers and R. DeAndre Johnson, both of who are members of St. Luke's UMC in Bryan. The offering taken during the service was designated to the Cote d'Ivoire Secondary Schools.

Day Three

Business Session Tuesday, May 26, 2009

Call to Order: Bishop Huie called the session to order at 9:00 a.m. She asked Reverend Joe Cortinas to lead the opening prayer. He expressed his desire to pray in both English and Spanish. Surprise Guests Leading in Music: LaHonda Sharp introduced a group of special guests (French Monks) who had come from Mulala,. They had taken vows of silence and rough cloth. They provided a different version of The Hallelujah Chorus with the use of flash boards. It was received with much joy and appreciation followed by a standing ovation. Setting of the Voting Bar of the Conference. The bar of the conference was established with a motion by Dr. Gail Harrelson. The motion was seconded to set the bar as the bottom floor of the sanctuary and was approved. Retirement DVD - Rev. Charles Ruehl. Rev. Ruehl reflected retirement had been a time of great learning and a different perspective. He was excited about having time with his grandchildren and how to find ways he could still serve God through assistance to local churches. He regretted that he sometimes didn't always put his family first. They are most important and he offered that guidance to others. He shared a story a ministry moment when he was reminded of something he said that made a difference to one of his Bible study participants. Courtesies: Rev. Rick Goodrich offered the following announcements and courtesies: Laity Luncheon Tickets available for $15; Rev. Carey Cauley has died and his funeral has been scheduled for 1:00 p.m. on Friday, May 29, 2009 in Bryan, Texas. Rev. Ken Archer's son had a major stroke and was hospitalized. He sent a note that he felt that he was unable to leave him. A moment of silence was offered for the family of Carey Cauley and Ken Archer, Jr. and their families. Faith Formed Together DVD - South, Southeast, and Southwest Districts. South District: Rev. Bob Sinclair, Angleton UMC, shared a ministry offered for grandparents who are now caring for their grandchildren. Gail Mizell approached her pastor to ask about beginning a grandparents support group after receiving support from her church during this difficult time. The first meeting had 36 grandparents attend who were parenting their grandchildren. There is not much support out there for these needs. The members of Angleton UMC have been able to reach out beyond our four walls to provide assistance to those in surrounding counties. Southeast District: Rev. Carlos Phillips proudly stated that St. James UMC in the Southeast District offers Faith Forming Ministries through many opportunities for fellowship and for study. St. James' small groups are spawning many new ministries and the members enjoy working together. All are in the process of trying to make Disciples for Jesus Christ by being out in the community and serving people. They have a very vital food pantry. The faith aspect is being built as they study together and hold each other accountable to what the Word says to us. Southwest District: Rev. Suzanne Reedstrom spoke on the Memorial Drive UMC's many activities for youth through The Refuge Center. In that same center they have older adult ministries in the same building. A great way that they reach out is through the sports ministry. They have an outstanding singles ministry, which includes a coffee shop setting. Ellen Lee spoke on the many opportunities DAILY PROCEEDINGS E-31

offered through the UMW within the Memorial Drive UMC, one of which is called the Common Thread. They meet at Starbucks and stuff pillows and sew while at the coffee shop. There are many women who have become involved but are not members of the church. They started with 5 or 6 and are now up to 16 and have made over 4000 items for distribution at hospitals. Retirement DVD - Rev. Jim McConnell. Rev. McConnell and his wife plan to travel and see their family all over the United States. He's looking forward to doing some writing. There were many stories to share about his family, time at Southwest University with many friends and also his wife, Melinda. In answer to the question, how do you know that you have been a good influence to other folks, Rev. McConnell reflected that he really appreciated being involved and participating and leading in the Walk to Emmaus. The richest memory from ministry is the sense of that great number of folks who have touched his life and they have touched his. Melinda has always been involved in the church and it meant so much to him and to the congregations that have served together through the years. Report of Group Health and Pensions: Bishop Huie recognized Rev. B.T. Williamson to bring the Group Health and Pensions report. Rev. Williamson introduced Ted Carlson, Rev. Deborah Proctor, Chair, and Tony Pierce. Group Health Benefits: Mr. Pierce brought the report on Group Health Benefits with the following highlights beginning with page 93 of the pre-conference journal: for 2009, the Krist Samaritan Center Counseling Center contract has been renewed for the employee assistance program; the Unicare plan has been renewed and notices will be sent later in the year as to any increase in the plan. The Dental and Vision program now has 150 enrollees; to date 92 persons have completed the Day of Wellness program. A Day of Wellness is now offered to Clergy Spouses at no cost, whereas previously it was offered at a cost. The investment policy changes were adopted by Group Health Benefits and the Board of Pensions and is a guide on how the committee makes its investments. The changes are: The following changes to the Investment Policy Statement were adopted by both the Board of Pensions and the Group Health Benefits Committee. The investment policy statement is the guide that is followed by the investment committee which identifies where investments can be deposited and what type of investment can be made. 1) The new document contains only a single investment committee as opposed to three inde- pendent investment committees. Mr. John Curry was elected chair person. 2) Between committee meetings the Director of the Center for Clergy Excellence will implement the decisions of the investment committee following the parameters of the IPS. Investment strategy and decision-making would remain the responsibility of the investment committee. 3) To properly maintain continuity in years when the membership of the committee changes (i.e. Quadrennial changes). The outgoing committee will stay in existence and have authority to make investment decisions until the newly formed committee has been organized. 4) The Center for Clergy Excellence will pay bills and inform the committee semiannually at their respective committee meetings (Distribution of the General Ledger). The Board of Pensions Early Retirement Incentive Plan (ERIP) was approved and implemented during the year. With the current number of eligible clergy, it is difficult to place ordained or commissioned clergy in appointments. The last appointment cycle required that five or six clergy be appointed outside of the Texas Annual Conference: Appointments had to be created using equitable compensation: Initial projections for clergy seeking commissioning reveal one of our largest incoming classes. The goal of the ERIP is to have those clergy so inclined to accept an early retirement incentive plan that would free up appointments for other clergy. The early retirement incentive plan is being paid for by the Board of Pensions using the Superannuate trust fund and the unrestricted reserve. The Group Health Benefit expense (subsidy for 36 months for those who qualify) is being funded out of the Group Health Unrestricted reserve. Following is a summary of the benefits under this plan; E-32 DAILY PROCEEDINGS

1. A cash payment of $30,000. 2. A $400 subsidy per month toward the personal contribution for 36 months 3. Limiting the plan to the first 25 applicants who apply. The ERIP was approved by the Cabinet, passed by both the Group Health Benefit and Board of Pension committees and approved by the Core Leadership Team. It is estimated that 15 - 20 clergy will take advantage of the program.

2010 Recommendations from Group Health Benefits

A. Increase in out of network costs The out of network maximum expense will increase in 2010 by an additional $4,000 bringing the total out of network maximum to $30,000 plus deductible in both the low and high deductible plans. B. Other plan changes 1. The deductible will increase from $400 to $500 2. The out of pocket maximum will increase from the current $2,200 to $3,000 (plus deductible) for both the low and high deductible plans. C. Increase in personal contribution 1. The personal contribution for active clergy will increase 10% in 2010. Following are the new personal contribution amounts for both the low deductible and high deductible PPO plans.

Less than $44,999 Greater than $45,000 PPO Plan 6.86% 8.35% High Deductible Plan 5.98% 6.68%

The HMO rates will be published during open enrollment based on the renewal received from UniCare. The HMO plan is fully insured. D. Non-payment to result in termination The Group Health Benefits Committee reaffirmed the following policy approved by Annual Conference 2007. Terminations will occur in 2009. Policy 140 The HMO and Life Insurance coverage are fully insured programs and the decision to accept a reinstated participant is up to the insurance companies. The Life insurance carrier may require evidence of good health and the HMO may require the participant to wait until open enrollment.

The PPO has stop loss insurance that has the right to decline coverage for a participant or their dependents whose coverage has lapsed and they are requesting reinstatement.

It is the policy of the Group Health Benefits Office to send notice of arrearage to a participant and/or dependent who is 60 days in arrears in their personal contribution or the church's 7.2%, giving the participant an opportunity to make payment arrangements with the Plan Administrator. (Failure to keep the arrangement will result in immediate termination) A participant is terminated when there is a 90-day arrearage if no payment arrangements have been made. The effective date of termination will be the last day of the month for which full contributions have been received. E. Medicare requirement reaffirmed and clarified The Group Health Benefits Committee reaffirmed the requirement that retired clergy and their dependents must be enrolled in Medicare or a Medicare equivalent program when they reach age 65. DAILY PROCEEDINGS E-33

The following clarification will be added to the PPO plan document in 2010 and will become a policy of the Group Health Benefits office. For retired clergy and their dependents over the age of 65, the plan requires participants to file for and obtain Medicare coverage (parts A & B). In the event a clergy or their spouse has opted out of Medicare, it will be the participants responsibility to obtain Medicare coverage (or a similar coverage) since they have chosen to not pay for Medicare coverage over their working career. The plan will only reimburse expenses supplementing Medicare. In the event a clergy or their spouse does not obtain Medicare type coverage, then all expenses that would have been covered by Medicare will be the responsibility of the participant.

Explanation of Group Health Benefit Reserves & Program Explanation The Group Health Benefits Committee has several reserves for which it is responsible, because they operate a self insured plan. These reserves include the following: 1. Termination reserve - the part of the total reserve that is accrued to pay for claims that have been already incurred but which have yet to be paid by the Third party Administrator (Boon Chapman or ScriptCare) and billed to the Group Health Benefits Committee. The amount of the termination reserve is calculated each year and indicated on a separate line in the budget forecast included with this report. 2. Additional reserve (Total Reserve less the termination reserve and Endowment Fund) - This is the amount of money that the Group Health Benefits Committee has determined it needs to have set aside for negative events that may occur. Such events can include, but are not limited to, dramatic increases in medical utilization, negative investment returns, etc. Currently the committee has determined that an amount equivalent to no less than 50% of the projected Total Reserve (less the termination reserve and Endowment Fund) or more than 100% the projected Total Reserve (less the termination reserve and Endowment Fund) is the correct amount to accumulate. 3. Endowment Fund - Created with the approval of Annual Conference, is a trust fund (the trustees are the members of the Group Health Benefits Committee) which has been set aside to defer the cost of health care in the future. All reserves are invested according to the Investment Policy Statement (IPS) under the supervision of the investment committee. The Group Health Benefits Committee has complete discretion regarding how these funds will be utilized. The Group Health Benefits Committee operates as a sub committee of the Board of Pensions which according to the Discipline has over all responsibility for the funding and provision of both pension and health care benefits to the clergy. The Group Health Benefits Plan has a self insured PPO, a self insured prescription drug plan, a fully insured private fee for service plan and a fully insured HMO which covers clergy, laity, retirees and surviving spouses who meet the eligibility requirements. The Group Health Benefits Plan is not a form of entitlement and it should be noted that the Group Health Benefits Committee, with the approval of Annual Conference, reserves the right to amend or possibly eliminate both the active and retiree plan of benefits. Motion to adopt the 2010 Group Health Recommendations: Mr. Pierce moved the adoption the report. Bishop asked for a vote by hand and the report passed and was adopted. Report from the Board of Pensions: Rev. Deborah Proctor brought the report from the Board of Pensions with the following highlights: "First, you may have noticed this year that your pension funds have gone down just a bit. We, like other investors across the United States, have felt the sharp pain of declining investments and negative earnings in our pension accounts. This was a topic of great interest at the General Board Quadrennial training in October of last year. We have, since then had two conference calls between our investment committee, chaired by John Curry, and the General Board of Pensions and Health E-34 DAILY PROCEEDINGS

Benefits, as well as all other investment managers that hold money for the Conference Board of Pensions or the Group Health Benefits Committee - our last call being just last week. All of the investment managers indicated that it was best to stay the course with current investments. I do want to report to you that our conference pension and health benefit funds are fundamentally sound and well-funded - due to the diligence of past Boards of Pension and Health benefit committees in ensur- ing adequate reserves. We also have the benefit of having the expertise and diligence of B.T. Williamson and our consultant Ted Carlson - they help our conference to be head and shoulders above most other conferences in the area of clergy benefits. Second, Our Board of Pensions this year was asked by the cabinet to investigate the possibili- ty of offering an Early Retirement Incentive Program to help make it financially possible for pastors who met eligibility requirements to retire - thus opening up appointments for incoming clergy. After extensive research into these type plans and consulting with legal counsel about how to set up a plan that met our needs, we were pleased to be able to offer a one-time early retirement incentive plan that 17 eligible clergy participated in. These retirees will receive a $30,000 cash stipend and up to a $400 credit toward their health benefits cost for up to 36 months. This plan was approved by the Board of Pension and Group Health Benefits Committee and confirmed by the cabinet and the Core Leadership Team. The funding is from the Pension Unrestricted Reserve account set up by this annual conference in 2007 under the control of the Board of Pensions and the Health Benefit Committee. Rev. Proctor the move adoption of the report and all three of the resolutions from the Board of Pensions as follows: Section I. Basic Recommendations 1. Conference Board - 2010 Budget a. Administrative Funds 1) Meeting Expense $3,500 2) Office Expense 1,000 $4,500.00 b. Program Funds 1) Retiree Luncheon 6,000 2) Pre-Retirement Seminar 0 3) Retired Ministers Retreat 300 4) Commemorative Plaques 1,000 5) Retiree Video 6,000 6) Promotion & Interpretation (Benefits Tour) 2,000 7) Board Members & D.S.'s Education & Developments 4,000 19,300.00 Budget Total $23,800.00

2. Pension Fund Apportionment - 2010 Budget a. Apportionment for Pension Fund $900,000 b. That $50,000 of the Pension Fund Apportionments be retained by the Conference Treasurer for administration of the Conference Board of Pensions; the balance of the apportionment $850,000, be remitted monthly to the General Board of Pensions. c. That all pastors and local churches be reminded of ¶638.4.a of The 2004 Book of Discipline: When the apportionment of the pastoral charges for the pension and benefit program of the Annual Conference has been determined, payments made thereon by each pastoral charge shall be exactly proportionate to payments made on the General Board of Pensions and Health Benefits Plan Compensation of the ordained minister or DAILY PROCEEDINGS E-35

clergy serving it. d. That the apportionment for Pension Fund shall be spread among the churches on the prevailing decimal basis for all apportionments and that remittances are made to the office of the Conference Treasurer. 3. Funding Pensions for Past Service Rate Past Service is that service rendered prior to January 1, 1982, by clergy members and Full-Time Local Pastors which has been approved for pension credit. Funding for pen sions for past service is provided through income from gifts, earnings on pension reserves, a stabilization fund and Pension Fund Apportionments. BE IT RESOLVED 1) That the 2010 Past Service Rate for approved service rendered by ordained Ministers and Full-Time Local Pastors be set at $767.00. 2) That the rate for Surviving Spouses be set at 75% of the Past Service Rate. 3) That the 2010 Past Service Rate becomes effective January 1, 2010. 4. CRSP Funding Pensions for Current Service Current Service is that service rendered on and after January 1, 2010, by clergy. Funding for pensions for current service is the responsibility of the salary-paying unit to which the appointment is made. The funding for pensions and a protection umbrella is through the Clergy Retirement Security Program (CRSP) administered by the General Board of Pensions. The Adoption Agreement on CRSP will provide more specific detail and will be printed in the Conference Journal. WHEREAS, the United Methodist Church began in 2007 a new pension program for all years of service beginning January 1, 2007, THEREFORE, BE IT RESOLVED, That we affirm the action taken at 2006 session of the Texas Annual Conference which placed the church contribution for each clergy participant according to the following CRSP Funding Plan: A) Defined Benefit (DB) i. Projected Total Cost to Texas Annual Conference (TAC) would be: 9.5372% x $60,341 x # of Eligible Participants = $ "Total DB $" ii. Plan Compensation of Eligible Participant ÷ Total TAC Plan Compensation = "Decimal" iii. Funding for Eligible Participant = "Total DB $" x "Decimal" B) Defined Contribution (DC) 1. 3% x Plan Compensation of Eligible Participant 2. UMPIP - 1% x Plan Compensation of Eligible Participant C) Comprehensive Protection Plan (CPP) 3% x Plan Compensation of Eligible Participant (not to exceed $3,620.46) D) Reserved Fund 1% x Plan Compensation of Eligible Participants E) Sustentation Fund .5% x Plan Compensation of Eligible Participant NOTE: 1) Effective January 1, 2010 the "contribution base" (Plan Compensation) of a clergyperson's salary consists of: 1. taxable cash salary 2. housing exclusion or allowance 3. salary-reduction contributions to Internal Revenue Code section 125 or 403(b) E-36 DAILY PROCEEDINGS

plans, and 4. when a parsonage is provided, 25% of the sum of 1, 2 and 3. 2) The Denominational Average Compensation in 2010 will be $60,341. Thus, the maximum CPP contribution by any Texas Conference participant will be 3% of twice the DAC or $3,620.46. 3) The minimum level for participating in CPP at the normal 3% level is a contribution base equal to 60% of the Denominational Average Compensation. In 2010 this 60% will be $36,204.60. Thus, a cash salary of $28,963.68 will be necessary to reach this 60% requirement since $28,963.68 plus 25% ($7,240.92) for housing = $36,204.60. 4) By special arrangement, ministers on leave of absence and ministerial members or full-time local pastors with a contribution base of less than 60% of the Denominational Average Compensation in 2010 may participate in CPP by payment of 4.4% of the Denominational Average Compensation, or $2,655, annually, $221.25 monthly. Participants under these special arrangements receive death benefit and disability protection. 5. Death Benefits - New UNUM Optional Life Insurance Program 1. The General Conference discontinued the Basic Protection Plan (BPP) and added an optional life insurance program underwritten by UNUM in its place. The Board of Pensions of the Texas Annual Conference has chosen to fund the new life insurance program for grandfathered retirees in the same fashion as for the previous BPP plan for retirees. Thus, the Board of Pensions will provide a $5,000 or less supplemental life insurance benefit to all grandfathered retired clergy who were eligible and participating in the BPP in 2008. 2. Participating retirees will be reimbursed 1) according to the UNUM premium table and 2) with submission of documentation that they have paid their annual premium to UNUM.

Section III. Discussion on the Apportionment and the Past Service Rate 1. Pension Fund Apportionment It should be noted that through 1998 the Conference Claimant Apportionment Request for $1,425,000 has remained unchanged since 1991 when the Past Service Rate was $319.00 and the $1,425,000 was equivalent to 12.16% of the Total Texas Conference 1991 budget. The request for 1999 was $1,400,000 and this constituted the first reduction since 1991. The request for the year 2010 is $900,000. 2. Past Service Rate The recommended 2010 Past Service Rate (PSR) of $767.00 is in keeping with the Disciplinary recommendations (¶1506.7) "that such rate be not less than (emphasis added) 1% of the Conference Average Compensation (CAC) as computed by the General Board of Pensions." The CAC for 2010 is $72,618 and the 2010 PSR of $767.00 is equivalent to 1.06% of the CAC.

Section IV. Pre-1982 Years of Service Pension credit is given for full time service ¶1506.4 (a). The 2004 Book of Discipline notes the qualifications and restrictions. Less than full time service, students and part-time local pastors are not eligible for pension credit. (Full-time local pastors are eligible for pension credit for full time service). The Board of Pensions of the Texas Annual Conference recognizes this paragraph as the stan DAILY PROCEEDINGS E-37

dard guidelines for determining years of service and pension credit for years of service.

Section V. Housing Resolution RESOLUTIONS RELATING TO RENTAL/HOUSING ALLOWANCES FOR RETIRED OR DIS ABLED MINISTERS The Texas Annual Conference (the "Conference") adopts the following resolutions relating to rental/housing allowances for retired or disabled clergypersons of the Conference: WHEREAS, the religious denomination known as The United Methodist Church (the "Church"), of which this Conference is a part, has in the past functioned and continues to function through ministers of the gospel (within the meaning of Internal Revenue Code section 107) who were or are duly ordained, commissioned, or licensed ministers of the Church ("Clergypersons"); WHEREAS, the practice of the Church and of this Conference was and is to provide active Clergypersons with a parsonage or a rental/housing allowance as part of their gross compensation; WHEREAS, pensions or other amounts paid to retired and disabled Clergypersons are considered to be deferred compensation and are paid to active, retired and disabled Clergypersons in consideration of previous active service; and WHEREAS, the Internal Revenue Service has recognized the Conference (or its predecessors) as the appropriate organization to designate a rental/housing allowance for Clergypersons who are or were members of this Conference and are eligible to receive such deferred compensation; NOW, THEREFORE, BE IT RESOLVED: THAT an amount equal to 100% of the pension or disability payments received from plans authorized under The Book of Discipline of The United Methodist Church (the "Discipline"), which includes all such payments from the General Board of Pension and Health Benefits ("GBOPHB"), during the year 2010 by each active, retired or disabled Clergyperson who is or was a member of the Conference, or its predecessors, be and hereby is designated as a rental/housing allowance for each such Clergyperson; and THAT the pension or disability payments to which this rental/housing allowance applies will be any pension or disability payments from plans, annuities, or funds authorized under the Discipline, including such payments from the GBOPHB and from a commercial annuity company that provides an annuity arising from benefits accrued under a GBOPHB plan, annuity, or fund authorized under the Discipline, that result from any service a Clergyperson rendered to this Conference or that an active, retired or disabled Clergyperson of this Conference rendered to any local church, annual conference of the Church, general agency of the Church, other institution of the Church, former denomination that is now a part of the Church, or any other employer that employed the Clergyperson to perform services related to the ministry of the Church, or its predecessors, and that elected to make contributions to, or accrue a benefit under, such a plan, annuity, or fund for such active, retired or disabled Clergyperson's pension or disability as part of his or her gross compensation. NOTE: The rental/housing allowance that may be excluded from a Clergyperson's gross income in any year for federal income tax purposes is limited under Internal Revenue Code section 107(2) and regulations thereunder to the least of: (1) the amount of the rental/housing allowance designated by the Clergyperson's employer or other appropriate body of the Church (such as this Conference in the foregoing resolutions) for such year; (2) the amount actually expended by the Clergyperson to rent or provide a home in such year; or (3) the fair rental value of the home, including furnishings and appurtenances (such as a garage), plus the cost of utilities in such year. The housing/rental allowance exclusion is available only to ordained clergy, not to surviving spouses, but the death of a minister during the year does not invalidate the exclusion for the entire year. E-38 DAILY PROCEEDINGS

The exclusion is still available for the part of the year the minister was alive. Since neither the General Board of Pensions nor the Texas Annual Conference gives legal tax advice, each minister should consult with his or her own attorney, CPA, or other tax advisor.

Section VI. Adoption Agreement-Comprehensive Protection Plan This Adoption Agreement is hereby adopted by the Texas Conference (hereinafter referred to as the "Conference" or as the "Plan Sponsor" as defined in CPP section 2.18 (b)), and agreed to by the General Board of Pension and Health Benefits (hereinafter referred to as the "Administrator") for the Plan Year commencing January 1, 2010. It shall be effective until amended by the Conference and agreed to by the Administrator in accordance with the provisions of the Comprehensive Protection Plan. Previous Adoption Agreements and Addenda A shall remain in effect for the Plan Years to which they apply. 1. Remittance. (CPP §4.02) The Church Contribution shall be remitted monthly by the Salary-Paying Unit. 2. 1% Remittance by Participant. (CPP §4.03a) Each Active Participant shall be required to contribute 1% of his/her CPP Contribution Base. 3. Elective Arrangements. The Conference Board of Pensions is hereby authorized, at its discretion, to arrange with the Administrator for active participation in CPP by eligible persons who are not otherwise required to participate. 4. Required Continued Participation. The Conference elects to enroll or to continue the participation of all the participants in the following categories: All Full, Associate, and Probationary Members appointed to incapacity leave, but not approved for disability benefits payable under the Comprehensive Protection Plan, however, the Conference shall contribute 3.4% of the Denominational Average Compensation for this category. (CPP §3.02a Discipline ¶358) All Full-Time Local Pastors appointed to incapacity leave, but not approved for disability bene fits payable under the Comprehensive Protection Plan, however the Conference shall contribute 3.4% of the Denominational Average Compensation for this category. (CCP §3.02c, Discipline ¶358) 5. Optional Continued Participation. The Conference elects to enroll or to continue the participation of electing participants in the following categories for which the Conference shall contribute 3% of the Denominational Average Compensation. Associate members and clergy in full connection appointed to a sabbatical leave. (CCP §3.02a, Discipline ¶352) Associate members and clergy in full connection appointed to attend school after having served under appointment in the Conference, other than an appointment to attend school, for a maximum of n/a years. (CPP §3.02a)

Probationary Members appointed to attend seminary, for a maximum of n/a years. (CPP §3.02a).

Full, Associate, and Probationary Members granted leave of absence, for a maximum of n/a years. (CPP §3.02a, Discipline 354) Participants granted a family leave, for a maximum of n/a years. (CPP §3.02a, Discipline ¶355) 6. Appointed Less than Full Time. Optional Participation. The Conference elects to enroll or continue the enrollment of all electing participants in the following categories for which the salary-paying unit shall make the required contribution based upon 3% of the Denominational Average Compensation. DAILY PROCEEDINGS E-39

Full, Associate and Probationary Members who are appointed (CPP §3.02a, Discipline ¶338.2) 3/4 time, 1/2 time, 1/4 time. Members of Other Denominations who are appointed pursuant to Paragraphs ¶338.2 and ¶346.2 or 346.3 of the Book of Discipline and who are appointed: 3/4 time, 1/2 time, 1/4 time. 7. Plan Compensation below 60% of the DAC or the CAC. Optional Participation. The Conference elects to enroll or continue the enrollment of all of the electing participants in the following categories whose Plan Compensation is below 60% of the Denominational Average Compensation or the Conference Average Compensation, whichever is less, for which the salary-paying unit shall make the required contribution based upon 3% of the Denominational Average Compensation: (CPP §3.02c). Full, Associate, and Probationary Members; Full-Time Local Pastors; Members of Other Denominations whom are appointed pursuant to Paragraph ¶346.2 or ¶346.3 of the Book of Discipline. Bishop Huie asked if there were questions concerning the report and being none, she asked for a vote by raised hand. The report was approved. In behalf of the Group Health Benefits Committee, Rev. Proctor thanked Rev. B.T. Williamson, Director of the Center for Clergy Excellence, Lydia Fay Lopez, Benefits Administrator / HIPAA Privacy Officer, Allen Bass, GBoP Reporting (Active clergy) / Pensions Eligibility Assistant, Melonie Joseph, GHB Eligibility / GHB and Pensions Customer Service, Monica Obregon GHB - Accounts Receivable / Pensions Retirees & Surviving Spouses - GBOP reporting, and Patty Oliver, Pensions and GHB Financial Assistant for providing outstanding dedication and skillful application of their talents in this difficult and changing field. Personally I would like to thank each of the Group Health Benefits Committee members for their work in crafting the solutions we have identified to date and enduring long and challenging committee meetings. Rev. Williamson reported on the upcoming Day of Wellnes and thanked the members of the conference for becoming more aware of health concerns. The Methodist Mission Home DVD. The Methodist Mission Home provides help and support to those who are facing difficult decisions. The Family Services offers assistance for those facing unwanted pregnancies and options for families starting a family. Students with disabilities experience life skills and help to develop and learn skills to live independently. Students find pride in themselves as they learn things that they didn't think they could. Faith Formed Together DVD: Wesley Foundation, Texas A&M. Rev. Max Mertz stated that the Wesley Foundation provides a home away from home for students. We provide them with mentor- ing, family, and community. They are here at all hours and learn together about God's word and doing that with students from different backgrounds, teachings and great diversity. FUMC Henderson offers the "Roots Café" as part of their Youth ministry. It takes ministry outside the walls of the church. The youth invite other young people to join them. It is a great place to gather after school and a way to reach and teach about God without going inside the church itself. Many youth and their families have joined with us through this ministry. St. Mark's Baytown has reached out through a Women's ministry and have grown together and stronger as a whole while they work on projects together. Aldersgate UMC, Bryan, has a college ministry that establishes relationships between all ages and the spirit of the people here offer love and teach through their example of Christ's love. Council on Finance and Administration: Bishop Huie called on Rev. Marlin Fenn and Dr. Elijah Stansell to bring the report. Resolution 1 -Apportionment Formula: Since 2000, the conference has operated under a new formula. At the 2008 Annual Conference, a resolution was passed to assess the effects of the new formula. The task force noted the concerns and the benefits, reviewed other conference formulas and E-40 DAILY PROCEEDINGS

examined the current formula against prior formula and have come up with the following recommendation. The recommendation is that our current formula is doing what it was suppose to do and that no changes be made to the formula at this time. They do, however, recommend a method to interpret the ministries to the congregations and that all work together to promote and educate the ministries provided through our apportionment giving. Rev. Fenn offered appreciation to Dr. Don House, Rev. Rick Goodrich, Dr. Elijah Stansell, Russell Hall, and Elaine Kimzey for their work on the Task Force. Rev. Fenn moved for its adoption. The motion was approved by raised hand. Resolution 2 - Retired Clergy Per Diem: Dr. Stansell asked Rev. Don Meador to present the resolution. Rev. Meador notes that this resolution came from the 2008 Retiree Gathering because many of our retirees are unable to attend conference due to financial restraints. The resolution is to provide a per diem to the retirees to offer financial assistance to attend conference. The resolution was approved by the Task Force and the Council on Finance and Administration and reads as follows:

Referred Resolution to Reimburse Retired Pastors for Expenses to Annual Conference

Whereas, the high cost of travel, housing and meals at the meetings of the Texas Annual Conference prevent many retired pastors, surviving spouses, retired deacons, retired deaconesses, retired diaconal ministers, and below minimum compensation pastors from attending Annual Conference, and Whereas, retired pastors, et al, do not received any kind of expense allowance for attending Annual Conference, which has been a very important part of their lives, and Whereas, other conferences- Central Texas Conference of the UMC- provide retiree expense reim- bursement for attendance at Annual Conference, Resolved, that a Per Diem allowance be granted each day in actual attendance at the meeting of the Texas Annual Conference for retired clergy, surviving spouses, retired deaconesses, retired diaconal ministers, and that the Per Diem be $35 for those who reside within 50 miles of the site of Annual Conference and $70 for those who reside over 50 miles from the site of Annual Conference, and Further resolved, that the procedure for receiving the Per Diem allowance will begin in 2010 and that those who qualify will complete the request form after Annual Conference- submitting the request for days in attendance at Annual Conference only and for actual expenses paid, and Further resolved, that any person whose expenses at Annual Conference are paid by a church, individual, or organization not complete a Per Diem request, and Further resolved, that the program be administered by the Center for Connectional Resources.

CLERGY EXPENSE STATISTICS

Type Conference Total 2008 Attendance Retired Clergy 365 78 Retired Deaconess 1 0 Retired Diaconals 14 1 Clergy Surviving Spouses 228 5 Clergy on Disability Leave 16 6 Total 663 90 DAILY PROCEEDINGS E-41

Per Number of Days Growth Total Estimated Type Composition Diem per person Factor Days Costs Within 50 $35 40% 2.00 1.10 79.2 $2,772 miles Over 50 miles $70 60% 1.75 1.15 108.7 $7,607 Totals 100% 187.9 $10,379

Per Number of Days Growth Total Estimated Type Composition Diem per person Factor Days Costs Within 50 $35 40% 2.00 1.25 90.0 $3,150 miles Over 50 miles $70 60% 1.75 1.30 122.9 $8,599 Total 100% 212.9 $11,749

Rev. Meador moved the resolution be approved. Bishop Huie asked if there were questions. Dr. Chap Temple asked who would qualify. Rev. Meador referred to paragraph one in the resolution. Rev. Deborah Proctor spoke against the resolution and mentioned that everyone wants the retirees at conference. We support all of our pastors students, local pastors and others and recognize it is difficult for all those these persons to afford to attend conference. She expressed concern that we may be opening the door for future requests from other groups. Rev. Meador responded that the task force did take into consideration all pastoral groups and all were considered, but elected to continue only with retired clergy due to financial implications. Bishop Huie asked the delegates to vote by raised hand and the resolution was adopted. CF&A Budget: Rev. Fenn spoke to the budget. In 2008, the annual conference adopted a $22 million budget. In the fall of 2008 and spring of 2009, the economy took a nose dive. The Bishop and members of the Cabinet have responded with great concern. The Center Directors and leaders established a lower spending plan. The CF&A followed the direction of the Bishop and Cabinet to review our 2009 budget. The Cabinet opted not to take a raise for a second year. All of the Bishops took a decrease in salary going back to the 2008 amount. The Council on Finance and Administration members have asked those who have funds in reserve to use that money prior to accessing the 2009 budget line items. Using reserve funds provided a reduction of $150,000 to the 2009 budget. There are fewer new church starts, which resulted in a $200,000 in the 2009 budget. Happy Harbor closed and that offered another $15,000 reduction. The CF&A recommends the Lakeview Camping Scholarship item be moved to the 2010 level, which reduces the 2009 apportionment by $50,000 and increases the Fair Share goal by $50,000. The 2010 budget includes $60,000 as a new item for the Ivory Coast Partnership and $11,749 for the retired clergy per diem. With all the reductions in spending from the 2009, the CF&A recommended a 5% decrease in the 2009 conference budget, excluding the Fair Share Goals. If adopted, there will be a re-apportion of the adjusted expense needs for the local churches between June through December. Church apportionments are set by the General Church and CF&A are unable to adjust in that area. Rev. Fenn made a motion to adopt the recommended revised 2009 budget and to adopt the 2010 budget, which received a second. 2009 Revised Budget: Bishop Huie asked if there was discussion to approve 2009 budget adjust- E-42 DAILY PROCEEDINGS

ment. Rev. Scott Dornbush raised the question as to why the entire 2009 line item in the budget for Partners in Mission was eliminated since it is a vital program of the annual conference. Rev. Fenn explained that they are operating on a reserve fund. Motion to Amend the Motion: Chris Reed, lay delegate from Trinity UMC in Beaumont presented his concern that $75,000 was eliminated in the 2009 budget for a conference staff person to work with Youth/Young Adult ministries. He made the following motion to amend the motion to reduce the 2009 budget. "I make a motion to amend the 2009 Revised Budget to include the $75,000 for the Youth and Young Adult Director." Bishop Huie asked for a second and received it. There was discussion of the amendment to the amendment. Rev. Bill Teague asked if there would be other expenses for the proposed director. Dr. Karen Dorris explained that the $75,000 included everything - salary, insurance, etc. However, the Center for Congregational Excellence has not yet written a job descrip- tion for the position or began a nation wide search for applicants. The work to be done prior to hiring a director would unlikely be completed until December, 2009 to January 2010. Bishop Huie asked if the conference was ready to vote of the amendment and received an affirmation. She asked all in favor of the amendment to vote by raised hand and likewise, those against the amendment to vote by raised hand. The vote was too close to call. Bishop Huie called for the tellers to come forward and asked for the delegates to vote either yes or no by standing. The tellers wrote down the results and gave the results to Jan Ervin to tally. The amendment to include $75,000 in the 2009 budget carried. Bishop Huie then presented the motion before the conference to Revise the 2009 Budget with the inclusion of the $75,000. Dr. Chap Temple, Lakewood UMC, stated that his congregation and others would be more than happy to raise the $75,000 for the new Youth and Young Adult Director's position. Dr. Pat Sparks asked again for clarification on the $75,000 and what was included. Again Dr. Dorris stated it included everything needed for the position. Bishop Huie asked for the vote on the 2009 Revised Budget by raised hand and the revision was approved. 2010 Budget: Bishop Huie told the delegates that the 2010 budget was properly before the conference as a report coming the CF&A. She recognized Beverly Deerhake, who raised a question of clarification about the zero amount in the line item for the School of Mission. Rev. Fenn looked at the budget and stated it was a typographical error and was corrected to reflect the amount of $5,000 on that line item for 2010. Bishop Huie asked for the vote by raised hand and the budget for 2010 is adopted. Dr. Elijah Stansell expressed his appreciation and deep gratitude for the support and sacrifices that have been made. He also wanted everyone to note that the per diem allowance for Retired Clergy will take effect in 2010. There were no notices or alerts from the Conference Auditors this. He also informed that conference there is a worker's safety program that offers incentives and savings for local churches and information will be forthcoming. In mid June congregations will received the new apportionments for the remainder of 2009. If some local churches have already paid 100%, he asked that they would allow the conference to believe that they want to be gracious. If that is not correct, then those local congregations will have an opportunity to make adjustments towards the 2010 apportionments. He concluded the report by stating he is "so happy to be your treasurer, thank God." Retirement DVD: Rev. Herb Stallknecht remembered his grandfather and has tried to pattern his life after his teachings. He reflected on his service at various churches through ministries and has found Disciple Bible Study to be an effective tool for forming faith. He believes the church needs to keep the balance of unity and diversity concept. He has had so many good friends with colleagues and churches. His wife Judy has blessed him and the many churches that he has served. As he changed appointments, church members often asked if he was taking Judy with him. Lon Morris College DVD and Report from Dr. Morris McCall Highlights include: • Scholarship increase to Pastor's Annual Scholarship Award. • Increased communication on-line. DAILY PROCEEDINGS E-43

• A opening of Cooper House. • Hosted 4 Campus Visit Days • Students will have various options for Spiritual Growth. In speaking of Lon Morris College, Dr. McCall said we are not done yet. We have started a new trend in our college and we will continue to improve and add varied aspects of our college. We are also confident that Lon Morris isn't done yet and believe that God has great plans for Lon Morris. In his closing remarks Dr. McCall said: "We will continue to add students and a 4 year degree plan for some students. It is a brutal time financially for our school, our students and our families. We replaced 9 roofs on 9 buildings and have worked with the city and have added 12.5 acres of property to the campus. We have completed the Administration Building. We are in a partnership with the YMCA. We have added a new 32 bed dorm debt free. We been brought down the debt of the college by $2,000,000 and have added a band house. We are bringing back football to LMC. We anticipate a room shortage as we have doubled our requests for enrollment. It has been a challenging year. Last week I flipped open my Bible and I read a scripture and it didn't speak to me and I flipped again and it didn't speak with me again. I got home and was discouraged. I was scheduled for the devotion for the next day and I found Deuteronomy 20 about going fearlessly down the hill for God is with you. LMC is your college. We should go down the hill fearlessly and do not be fainthearted. Your college will prosper and Faith Formed Together is how God wins." Dr. McCall's report received an enthusiastic endorsement of applause. Equitable Salary and Compensation: Rev. Jesse Brannen brought the report. He referred to the following resolution that is being made to address the concern of losing appointments because of churches going off EC after 5 years and then decreasing the salary to only a part time status.

Resolution for Establishment of Uniform Application of Equitable Compensation and Conference Minimum Salaries

1) All Equitable Compensation (EC) will begin on July 1st and will end on June 30th the follow ing year. 2) Beginning January 1st of 2010, EC will be under the following rules and guidelines: 3) Any EC payments received during a conference year will count as one full year of EC eligibility. For example, if your church or charge receives EC support for July and August but then a pastoral change occurs in September which results in a change of clergy status that removes EC support, the church/charge will have one year of EC eligibility eliminated. 4) The eligibility for EC will be established in January after the year end reports are finalized. 5) All churches/charges that have used their 5 year eligibility will be published in the Conference Journal. 6) In the event that a charge that has been on EC is separated, all churches on the charge will have that time counted towards their eligibility. The separation of a charge does not start the eligibility over again for EC support. 7) All requests for EC must be made PRIOR to the Bishop's and Cabinet's setting of appointments to avoid having to make alternative arrangements for clergy compensation. 8) The EC and Annual Conference minimum salaries for 2010-2014 will be: FT $36,204 FLP $30,773 SLP $27,153 USP $24,739 This figure is based on the Denominational Average Compensation (DAC) of $60,341 for 2010 as set by the General Council of Finance and Administration (GCFA). E-44 DAILY PROCEEDINGS

All churches/charges receiving EC will be required to provide an annual salary increase of 2.5% with the understanding that the above mentioned salaries are the starting point for EC and minimum Conference salaries until such time as the CAC and DAC more accurately reflect each other. 9) All clergy currently appointed to a church/charge that is receiving EC will continue at the salary as established by last year's compensation report. Only after there has been a change in clergy can the church/charge adjust their salary downward to reflect the new salary structure. The result of this resolution will be that all EC determination will be made at the same time. It will eliminate confusion as to what churches/charges are eligible, and it will give the clergy a means of accurately assessing where their charge is in its movement off of EC support. This resolution will also provide the Texas Annual Conference churches a means to more accurately gauge the cost of clergy support as a total % of budget. Rev. Brannen moved the adoption of the resolution. Bishop Huie asked for a hand vote and the resolution was approved. Retirment DVD: Dr. Gerald DeSobe found it was very rewarding to help people to have life changing and transforming power. He hoped he had a meaningful ministry in which he had touched the lives of others. Recess: Bishop called for a short recess to get ready for the Retirement Service and asked everyone to return at 11:15 a.m.

Day Three

Service of Honoring our Retirees Tuesday, May 26, 2009 11:15 a.m.

Liturgists in the service were Rev. Charles Ruehl, Rev. Larry Smith, and Rev. Janet Blackburn. The song leader was Rev. Luis Ramirez, Servants of Christ UMC, Houston. Music provided by Adrianna Nelson, Rev. Luis Ramirez, and Dr. J. Randall Zercher, Minister of Music, Westbury UMC, Houston. Bishop Huie led in the call to worship. Rev. Ruehl offered a prayer. There was a DVD presentation from the retirees offering advice to new ministers. Dudley Childs recommended a strong prayer life. Larry Smith advised to quit taking it too seriously. Dr. Von Dawson said it's not about you. It's about God. Bill Stell advised new ministers to trust the appointment system. Dr. Jack Shelton recommended keeping a connectional conscience. Jim McConnell said to stay connected. Janet Blackburn encouraged clergy to help people find their vision for ministry. Charles Greene said to hang in there. Chick Cullen recommended all to share the awe of this wonderful gift. Ferel Little said to keep a serious work ethic. Charles Ruehl prescribed reading Matthew 5, 6, and 7 and to apply the principles like an aspirin. Herb Stallknecht advised justification by grace through faith so that you have worth and value. Jerry DeSobe recommended to new clergy to recognize what a privilege it is to be in ministry. Rev. Smith read Psalm 84 and Rev. Blackburn led a litany from Hebrews 11:8-10, 15-16. The congregation responded after each reading by singing a verse from the hymn "How Firm a Foundation." Rev. Richard Bauman then presented the retirees to the congregation. Bishop Huie gave a charge to them and presented each one with an original hand crafted walking stick in appreciation for their service and leadership to the church. The hymn of blessing was "May You Run and Not Be Weary." The postlude was "Carillon" by Louis Vierne. The service concluded at 12:05 p.m. DAILY PROCEEDINGS E-45

Day Three

Tuesday, May 26, 2009 Bible Study Dr. Edgardo Colon-Emeric

Bishop Huie introduced Dr. Colon-Emeric and listed his credentials. He is Assistant Research Professor of Theology and Hispanic Studies at Duke University and Director of the Hispanic House of Studies at Duke Divinity School. Dr. Colon-Emeric is an ordained elder in the North Carolina Annual Conference and serves as associate pastor of Reconciliation UMC. Dr. Colon-Emeric used the Sermon on the Mount in Matthew 5 and the model of the Lord's Prayer as the foundation of his study. He pointed out that happiness is a Christian vocation. Happiness is inseparable from holiness. Happiness is social. The Beatitudes are the marks of the church. Dr. Colon- Emeric will continue the study at 8:00 on Wednesday, May 27, 2009.

Day Three

Tuesday, May 26, 2009 Afternoon Session

Call to Order: Bishop Huie called the session to order at 2:10 pm. and asked for the next DVD presentation. Retirement DVD – Larry Smith: Rev. Smith reflected on the joy he received in ministry as he watched people touched by grace so that their faith grew and developed. Motion: Bishop Huie recognized Dr. Will Reed who rose to make a motion for a task force to be established to review and make recommendations for policies and procedures regarding distribution of opinions prior to votes taken by the annual conference. Due to the confusion of the delegates about the motion and its purpose, Bishop Huie asked the body if they wanted a deferment of the motion until Wednesday morning in order to give the presenter time to make some clarification adjustments in the motion's wording. The body agreed for the motion to be brought back for consideration on Wednesday morning. Order of the Day: Bishop Huie introduced the background of the 32 amendments to the United Methodist Constitution. She explained how the constitution of the Church is amended and referred to ¶59, Article I of the 2008 Book of Discipline. The General Conference must pass a constitutional amendment by 2/3 majority vote. All the annual conferences will vote on the amendments. The total votes will be submitted to the Council of Bishops, who will add together the votes for an aggregate total. In order for an amendment to be passed, there must be a 2/3 majority of the aggregate total votes of all the annual conference. Bishop Huie stated that there would be a written ballot on the 32 amendments. The amendments come from the General Conference and are properly before the body. Bishop Huie called upon Dr. Harrelson to outline who is eligible to vote on the amendments. Dr. Harrelson referred to the Discipline and stated that all lay delegates from local churches, all district delegates, and all deacons and elders in full connection were eligible to vote. Rev. Goodrich was asked to explain the ballot. He pointed out that there were five different groups. Each group has a specific color and the amendments are color coordinated to help identify to which group they are connected. Bishop Huie ordered the tellers to come forward and pass out the ballots. Rev. Jim Welch was recognized and asked for clarification as to who was eligible. Bishop Huie explained that Dr. Harrelson had spoken with Rev. Fitzgerald Reist, Secretary of the General Conference, for clarification. Rev. E-46 DAILY PROCEEDINGS

Reist sent an email confirmation about the eligible delegates. Rev. Welch voiced his opposition by stating that his committee at General Conference intended that the candidates, who had been received into full membership but not yet ordained at the time of the vote, would be eligible. Bishop Huie again stated that the General Conference Secretary had made the determination. Rev. Welch said he would discuss it with Rev. Reist later. Dr. Scott Andress asked for suspension of the rules to allow people in the balcony to vote since the floor was not large enough for all eligible delegates. The Bishop asked that it be amended to be one section of the balcony because of the lack of tellers. He agreed to the amendment. It would between the middle between the two pillars. Bishop Huie asked the delegates to vote if they agreed and it was approved. The Bishop gave direction that she will recognize persons to speak for and against the amendments in alternating order for a length of three minutes. After the debate, there will be a time of prayer before voting. Rev. Bernie Stein asked for a point of information of how do we know who is eligible to vote. Rev. Goodrich explained that the delegates' name badges would have either blue, green, or red bars. If someone had a badge with no colored bar on top or bottom, then they were ineligible. The Bishop called the conference to a moment of silence and offered a prayer. Conference Lay Leader, Leah Taylor, presented the subject matter of each grouping. Group One: 4, 10, 13, 23, and 26 which was a structural change to establish regional conferences. This group was color coded green. Judge Ewing Werlein spoke against. This is not about the world wide church, but about creating an American church. Dr. Ed. Robb also spoke against the amendments. No one wanted to speak for the amendments. Dr. Randy Smith called the question. Bishop Huie asked the body if they were ready to vote and they voted yes. After calling for a time of prayer and discernment, Bishop Huie asked the delegates to cast their votes on the first group of amendments. Bishop Huie moved to Group Two indicated by the color blue: 3,5,7,11,12,14,16,18,20,21,24,25,27,28,29,30,31,32. If passed, these amendments would change all terms of "central conference" to "regional conference," which would also change the wording in the Book of Discipline. Rev. Kabamba Kiboko, from the Congo Central Conference and the South Central Jurisdiction, spoke against the amendments from the perspective of a Congolese pastor. In her opinion, it is suspi- cious of colonization. With an impassioned speech and plea, she encouraged the delegates to vote against them, "Do not colonize me again." Gibb Walton pointed out that if a delegate voted against the Group One amendments, then vote against those in Group Two. Dr. Randy Smith called for the previous question and Bishop Huie asked if everyone was ready to vote. The body indicated yes. After a time of prayerful consideration, the body cast their votes for Group Two, color coded blue. Group Three, colored orange, contained Amendment 1, ¶4, Article 4 and concerns membership in local churches. Rev. Ken Werlein, Faithbridge UMC, spoke against amendment 1. Dr. Jim Bankston, St. Paul's UMC spoke for the amendment. Dr. Chap Temple, Lakewood UMC spoke against the amendment. Christie Hale, First UMC Port Arthur, spoke for the amendment. Dr. Steve Wende, FUMC Houston, spoke against the amendment. Martha Pepper, Trinity UMC Beaumont, spoke for the amendment. Dr. J.D. Norris spoke against the amendment. Melanie McDonald, St. John's UMC Houston, spoke for the amendment. Dr. Smith called the question. Bishop Hue asked if the delegates were ready to vote to lift their hands. The majority voted yes. Bishop Huie called for a moment of silent prayer and asked the body to mark the ballots. Group Four: Amendment 19 will allow local pastors and probationary (provisional members if adopted) of the conference to vote for delegates to general conference. Rev. Jason Burnham asked two questions: first, does the amendment include basic or advanced course of study. The answer was basic course of study. Second, does the amendment include part-time or full time pastors and who is DAILY PROCEEDINGS E-47

considered eligible to vote if adopted? The answer was full time local pastors under appointment and probationary/provisional members. Rev. Larry Smith spoke for the amendment. Rev. Jim Jones asked a point of clarification if the amendment also included associate members. Dr. Chap Temple reminded the body that the petition for amendment 19 came out of the Texas Conference. The body indicated it was ready to vote and the Bishop asked for a moment of silence before casting the vote for amendment 19. In Group Five, amendments 2,6,8,9,15,17, and 22 will be discussed individually. Amendment 2 adds a new paragraph for all groups to adopt conflict and ethics policies. Rev. Burt Palmer spoke against the amendment. There were no speeches for the amendment. The Bishop moved the conference to vote. Amendment 6 would allow General Conference to create new conferences to have proportional representation. Although there were no speeches, Marion Jones asked for a clarification on the words "central conference" in the amendment since the other amendments changed the word to "regional conferences." Rev. Gail Ford Smith answered that the others pertained to the World Wide Nature of the Church. There is a sentence in #6 that states the word Central would be changed to regional if the other amendments passed. Bishop Huie stated that change in wording does not change the intent of the legislation. Bishop Huie then asked the conference to vote on Amendment 6. Amendment 8 adds the word gender. There were no speeches to the amendment and the Bishop called for the vote. Amendment 9 provides that no Jurisdictional Conference shall have fewer of 100 delegates to allow for equal representation in electing bishops. There were no speeches offered and Bishop Huie called the conference to vote. Amendment 15 allows the General Conference to define lay and clergy membership of the annual conferences without amending the constitution. Rev. Jim Killen asked for a point of clarification. Can a person abstain on certain questions? Bishop Huie answered yes. Dr. Randy Smith expressed his concern about what we are changing. Rev. Jim Welch explained that the rationale is that this article has been changed numerous times since 1968. This amendment would change the wording so that there would not be additional amendment change requests in the future. Bishop Huie called for a vote. Amendment 17 would allow lay persons on the committee on investigation to vote on matters that pertain to clergy matters. Rev. Kevin Adair questioned the reason the laity are not allowed to vote on these matters at this time. Dr. Chuck Simmons answered that the 2004 General Conference passed legislation to allow laity on the committees of investigation to vote in clergy matters. The Judicial Council then reversed it. This amendment seeks to include it again. Rev. John Riley asked if laity had a vote on Board of Ordained Ministry and Dr. Simmons answered yes. Rev. Herb Stallknecht expressed concern about the distinction between clergy and laity and stated that certain things belong to the laity and others belong to the clergy in a speech against the amendment. Bishop Huie asked the conference to vote Amendment 22 will allow Bermuda to be added to the Northeastern Jurisdictional Conference. Rev. Welch asked if the adoption of this amendment would change the Episcopal representation of the Northeast Jurisdiction and whether any other annual conference or jurisdiction had this kind of relationship. Rev. Jim Foster pointed out that Puerto Rico was connected to one of the jurisdictions. Dr. Jim Bankston spoke for the amendment by pointing that this is a historic relationship since the Northeastern Jurisdiction does have oversight of Bermuda. Bishop Huie called for the vote. The ballots were collected and submitted to the counters. Courtesies: Bishop Huie read a courtesy from Rev. E.B. Beasley that Rev. Larry Kelly passed away at 3:10 p.m. today and asked Rev. B.T. Williamson lead the conference in prayer. Resolutions -Archives and History on Historic Sites: Bishop Huie called upon Bill Hardt to bring a resolution to declare the First United Methodist Church and Coldspring UMC as an historic E-48 DAILY PROCEEDINGS

site. Bishop Huie asked the conference to indicate their vote by voice. The resolution passed and both churches are named as historic sites. Resolution from District Camping Coordinators: Bishop Huie called on Rev. Matt Idom, who asked all the district coordinators and district superintendents to stand. The resolution asks for 100% participation from every congregation to support their district camping program in order to reach 6,000 youth within the next five years. Bishop Huie asked the body to give a voice vote and the resolution was approved. Announcements: The Bishop asked Rev. Goodrich to make the afternoon announcements. He recognized the signer for the hearing impaired, Michelle Menefee and said she was moving. The annual conference affirmed her work with applause. Rev. Goodrich asked the cabinet to meet and robe right after the session and return to the sanctuary for pictures with the ordinands. He reminded all of the commissioning and ordination service that evening. Closing Prayer: The Bishop called on Gil Hanke to offer a closing prayer. The afternoon session closed at 4:10 p.m.

Day Three

Service of Commissioning and Ordination Tuesday, May 26, 2009 7:00 p.m. The Woodlands UMC Sanctuary

The service of commissioning and ordination began with the choral introit, "Make a Joyful Noise," by the Friendswood UMC Choir and the Spirit Singers, followed by a greeting litany led by Bishop Janice Riggle Huie. The processional hymn was "Lord, You Give the Great Commission." Bishop Huie led in a declaration of the Recognition of our Common Ministry. Following the anthem, "Come, Thou Fount of Every Blessing," and the reading of II Corinthians 4:1-12 by Dr. Tom Pace, chairman of the Board of Ordained Ministry, Bishop Huie delivered the sermon, "On Not Losing Heart." Conference Lay Leader, Mrs. Leah Taylor, gave the offertory prayer. The offering was designated for Lon Morris College in Jacksonville, Texas. The offertory anthem was "This is My Word," directed by Rev. Terry Bebermeyer and accompanied by Lonnie W. Taber, organist for Friendswood UMC. Bishop Huie led the General Examination to the Candidates who were being commissioned or ordained. The congregation stood and sang a hymn medley. Bishop Huie examined the Probationary Members for commissioning. The probationary members moved to the altar as Bishop Huie commissioned each one. Those who were commissioned on Tuesday, Mary 26, 2009 were: Mary Elaine Balagia, Robyn Kay Bishop, Edward Randolph Blackstone, Debra Moton Brown, Elizabeth Matthews Duffin, Seann Michael Duffin, Sunny Brown Farley, Russell Andrew Hall. Melissa Amy Maher, Silverio Gea Sanchez, Cindy Foster Serio, Jacob Sean Smith, Collin Bridges Taylor, and Jon King Thornsbury. Bishop Huie next examined the candidates for deacons in full connection. She laid hands on Lorna Kay Bradley and Melody Lynn Kraus. Bishop Huie then examined the candidates for elder in full connection. The Bishop laid hands upon each candidate as they knelt at the altar. Those who were ordained as elder in full connection were: Richard Dale Anderson, Taylor Meador Fuerst, Dan Lake Gilliam, William Preston Greenwaldt, Michele Renee Hall, Ray Simpson Hughes, Jr., Kelly Steven Krone, Jin-Jong Lee, Jack Alwin McMahon, Elnora Marie Nunnally, Kimberly Camp Orr, Bartley Steven Reddoch, Stephen Mark Rhoads, Victoria Gunn Simons, Matthew Nolan Stone, Linda Jean Tolon, DAILY PROCEEDINGS E-49

Benjamin David Trammell, Marilyn M. White, and Jack Allen Womack. The newly commissioned and ordained clergy members stood and faced the congregation for exhortations. Bishop Huie offered a prayer of thanksgiving the new clergy members, gave the dis- missal and blessing and presented the new deacons and elders of the Texas Annual Conference. The recessional hymn was "Forth in They Name." The postlude was "Finale from Symphony No. 2" by Charles Marie Widor. A reception for those who were commissioned and ordained was held in Wesley Hall. The song leader was Paul Bolding, Director of Contemporary Worship at Marvin UMC, Tyler and organist was Judith P. York. The acolytes, crucifer, and bible-bearer were from St. Paul's UMC, Houston.

Day Four

Wednesday, May 27, 2009 Bible Study by Dr. Edgardo Colon-Emeric 8:00 a.m.

Bishop Huie greeted the conference at 8:05 and asked Dr. Joe Fort to lead in prayer. She introduced Dr. Colon-Emeric, who continued the presentation began on Tuesday afternoon on the Beatitudes and the Lord's Prayer. He pointed out that the Beatitudes were the chief means for attain- ing happiness, especially as it pertains to the Lord's Prayer. Dr. Colon-Emeric led the audience in an examination of John Wesley's concept of holiness and stated that Mr. Wesley called the Lord's Prayer a prayer for perfection. He concluded the study by asking the congregation to pray together the Lord's Prayer. Bishop Huie thanked Dr. Colon-Emeric for the thought provoking study on Matthew 5 and asked the delegates to prepare for the morning business session.

Day Four

Wednesday, May, 27, 2009 Business Session

Call to Order: The Bishop called the session to order at 9:00 and asked Dr. Don Waddleton to lead in prayer. DVD - Hurricane Ike: The Hurricane Ike DVD was removed from the agenda and will be replaced by the TUMCA DVD, featuring Bishop Dan Solomon later in the day. Order of the Day: Bishop Huie took a few minutes to outline the order of business. First, she gave an update on her decision about the request for the rule of law. After conferring with Mr. Gib Walton, Conference Chancellor, she has decided to take 30 days to be deliberate in making her decision. The decision will be posted on the conference website and sent to the Judicial Council. Courtesies: Bishop Huie recognized Rev. Goodrich, who gave an updated report on Rev. Larry Kelly's funeral arrangements for May 31, 2009, at 3:00 p.m. at the First UMC in Humble. DVD - UMArmy: The DVD gave the history of UMArmy, which began 30 years ago. The program now sponsors youth missions year round and also includes some mission trips for college students. DVD - Texas Methodist Foundation: The Texas Methodist Foundation sponsored the Texas Conference Youth Academy and programs by the Center for Clergy E-50 DAILY PROCEEDINGS

Excellence. The DVD Featured Dr. Clayton Oliphint, Rev. Ellen Cowley, Rev. Diana Presley, Bishop Janice Riggle Huie, Rev. Tom Locke, Dr. Tom Pace, Sandra Cabrera, and Rev. B.T. Williamson. Each spoke of the stress on pastors and the need for Clergy Development groups. Conference Advance Special Rev. Noel Denison brought the report. She made a motion that the 2010 Conference Advance Special will be designated for the support of the 51 United Methodist Schools in Cote d'Ivoire. Bishop Huie asked the conference to vote on the motion by hand and it was passed. Nominations Second Report: Rev. Rick Goodrich noted some deletions and additions in the nominations report since its printing. Rev. Clay Whitaker rose to nominate Rev. Tommy Myrick and Rev. Jeffrey Stull to the Disaster Response Team. Rev. Goodrich also referred to the following names nominated to serve for a three year term on the board of The Methodist Hospital System: Rev. Kenneth R. Levingston, Joseph C. Rusty Walter, III, Keith Reeves, M.D., Connie Dyer, Sandra Gayle Wright R.N. Ed. D, Gary W. Edwards, Vidal G. Martinez, and Dr. Thomas Pace. With the additions and deletions complete, Rev. Goodrich moved the adoption of the nominations report. Bishop Huie asked for the vote by raised hands and it was adopted. DVD - The Methodist Hospital: The Methodist Hospital DVD referred to the Lay Ministry Academy designed for laity who wish to make hospital calls, but do not desire to be ordained clergy. Amendments Results: Bishop Huie presented the results from the voting on the constitutional amendments.

Amendment # Yes No I 398 704 II 373 716 III 166 932 IV 148 944 V 164 927 VI 309 785 VII 175 930 VIII 852 238 IX 812 256 X 150 908 XI 220 876 XII 162 934 XIII 149 942 XIV 173 919 XV 613 451 XVI 168 937 XVII 827 259 XIII 149 942 XIV 173 919 DAILY PROCEEDINGS E-51

Amendment # Yes No XV 613 451 XVI 168 937 XVII 827 259 XVIII 176 923 XIX 888 187 XX 160 924 XXI 177 909 XXII 662 404 XXIII 153 929 XXIV 165 931 XXV 162 919 XXVI 149 944 XXVII 164 933 XXVIII 161 939 XXIX 163 936 XXX 160 938 XXXI 159 941 XXXII 160 939

Bishop Huie announced that the results of the election would be posted on the conference website. Model for Ministry Assessment Report - Dr. Susan Beaumont: Bishop Huie introduced Dr. Beaumont to bring the assessment report. Dr. Beaumont is a senior consultant with the Alban Institute. The new model for ministry was passed by a called session of the annual conference in November 2005. A few of the highlights of the research are listed below. The mission of the new model was clear and compelling. There is a level of satisfaction related to the tasks of the conference. The highest level of satisfaction was found in 16 organizational features. The lowest areas of satisfaction were in communication and input from conference members. The people felt communicated to rather than being a partner in the communication process. The people felt they had no means for input into the system and openness in hearing new ideas was not sought. In the Five Fruitful practices, the congregations were trying new things. Some of the churches were having positive results. In Radical Hospitality, there was some success. In Passionate Worship, there was less measured success than in Radical Hospitality. The area of Risk Taking Mission and Service was doing well, most likely because the annual conference was already doing missions well. In Faith Forming Relationships, churches were not trying new things and this was the area with the weakest results. In Extravagant Generosity, local churches were not trying as many things as in the E-52 DAILY PROCEEDINGS

other areas. Listening sessions were conducted in 5 geographic areas of the annual conference during the after- noons and evenings. Five basic questions were asked in those sessions. 1. In what ways is your congregation more effective in its mission because of the conference's reorganization? 2. What annual conference resources have been most helpful? Camping, training, youth ministry and campus ministry. 3. In what way can the Texas Annual Conference be most helpful? 4. What is the greatest benefit in the conference reorganization? People liked the idea of reor- ganizing the structure, but have some distrust of the structure. The Fruitfulness indicators were obtained by the numbers submitted by the congregations. Dr. Beaumont pointed out that it takes 7 years to change the internal workings of an organization. After two years, the indicators show a modest increase in some areas and a decline in others. Church membership showed a moderate increase of less than one percent. Worship attendance saw a spike in 2007 of a 1.2% increase, then fell 1.3% in 2008. In hands on mission, there was an increase over the past two years. Connectional generosity declined over two years. In professions of faith, the churches are still struggling. Dr. Beaumont stated that the early indicators seem to point to the fact that change would be sustained. Then she offered some concerns. In communication issues, the people felt the model for ministry is hierarchical. The people saw it as bishop driven. The people don't trust the Core Leadership Team. The centers for excellence had a better standing with the people. There was concern that the education of the structure was passed to the churches by the pastors of congregations. In the listening sessions, the participants indicated that the District Leadership Teams seemed to have no relationship with the Core Leadership Team and the annual conference. Dr. Beaumont offered a few recommendations. Eliminate the use of the term "new model of ministry." Make clear that the main communicative body between clergy and laity is CLT. Consider reducing the size of the Core Leadership Team to accomplish this goal. Define the role of the District Leadership Team for congregational feedback to the conference. Evolve the role of District Superintendent away from being the face of the conference toward being an empowering and resource role. Have more qualitative measures for fruitfulness in congregations and less quantitative measures at the conference center level. Offer more transformation tools to help unique needs of small, large, and diverse congregations. Develop technology for offering connectionalism and leadership development in the conference without requiring travel. Clarify the conference's position on ministry with youth, campus ministry, and young adult ministry. Focus on communication with local churches. Reduce frequency of communication, strengthen coordination of messages, and develop sharper delivery methods to the target audience. Questions: Bishop Huie announced that there wasn't time to receive questions from the floor but Dr. Beaumont would meet with all who had questions about the report. Resolution from the Advisory Team to the Texas Annual Conference Session May 25, 2009: Rev. Pat Sparks and Stephanie Griffin: Rev. Sparks spoke to the resolution and stated that the conference leadership wants to hear from persons in the annual conference. The numbers are disappointing but it may be partly due to the economy and hurricane disasters over the last several years. He presented the resolution as it was printed. WHEREAS the Strategy mapping team recommended to the 2007 Texas Annual Conference a process for ongoing evaluation and assessment of fruitfulness for the Model for Ministry, and make any necessary recommendation to enhance support of the Model for Ministry … WHEREAS the Core Leadership Team in 2008 recommended to the Texas Annual Conference the establishment of an assessment of the Model for Ministry and named Susan Beaumont of the Alban Institute as the outside consultant to perform the assessment. DAILY PROCEEDINGS E-53

WHEREAS Susan Beaumont of the Alban Institute has completed that assessment and presented a (36) page comprehensive report, along with an (8) page summary report to the Core Leadership Team, Advisory Team, Bishop and Cabinet. WHEREAS the aforementioned teams have reviewed the comprehensive reports and request a presentation from Susan Beaumont of the Alban Institute, at the 2009 Texas Annual Conference. THEREFORE BE IT RESOLVED that the Advisory Team makes the following recommendations: • That a Strategic Review task force accept the responsibility to develop a comprehensive strategy for acting upon the comprehensive recommendations from Susan Beaumont of the Alban Institute. • The Strategic Review task force is made up of six representatives, three from the present Core Leadership Team and three (one each) from the North, East and Southeast districts. The Bishop and Cabinet will select the three district representatives. BE IT FURTHER RESOLVED that this Strategic Review task force report to the Core Leadership Team it's recommendation for action and the Core Leadership Team's report be presented at the 2010 Texas Annual Conference session.

Rev. Sparks made a motion to adopt the three resolutions. Rev. Jason Burnham made the following motion to amend the resolution: "I move that the Strategic Review task force is made up of nine (9) representatives, two (2) from the present Core Leadership Team and one (1) each from the remaining non-represented districts. The District Leadership Teams from those remaining non-represented districts shall select their representatives." Bishop Huie asked those in favor of the amendment to vote by raised hand. The motion to amend the resolution failed. Bishop Huie asked the body if they were ready to vote on the original motion and the body said yes. The vote by raised hand on the main resolution failed. Response from Cabinet Representative, Rev. Gail Ford Smith: Rev. Smith stated that the cabinet realizes that the District Leadership Teams are important in the structural organization and need to be more involved in the communication process. She thanked the members of the annual conference for honest evaluation and input. Bishop Huie also thanked the conference and called on the next DVD. DVD - Texas United Methodist Colleges Association: The DVD featured Bishop Dan Solomon, who encouraged churches to pay the TUMCA Fair Share goal. Resolutions: The Bishop turned to two resolutions before the conference. Resolution In Support of Extravagant Generosity: Rev. Morris Matthis moved that the Council on Finance and Administration create a task force to determine if there are effective strategies for financially supporting the conference ministries that are more in alignment with the core belief of extravagant generosity than present strategies. The task force will report back to the 2010 annual conference with any information or recommendations. Upon receiving a second, Rev. Morris spoke in favor of it. Bishop Huie asked the body if they would support the resolution by raised hand. It carried and was approved. Resolution from the Committee on Episcopal Residence and the Committee on Episcopacy: Dr. Jim Bankston moved to suspend the rules to hear the resolution. The Bishop asked the body to vote by raised hand and it passed. Dr. Bankston made the motion to adopt the resolution that the Episcopal Residence Committee be given authority to locate and recommend a new Episcopal residence, and that the sale of the present residence and purchase of a new one be subject to the approval of the Council on Finance and Administration and the Conference Board of Trustees. The motion received a second and Dr. Bankston spoke to it. The money is already available for the purchase of a home. There is about $150,000 worth of deferred maintenance needs to the current residence. It seemed to be wise stewardship to use the money for maintenance and apply it toward the purchase of E-54 DAILY PROCEEDINGS

a new residence. Bishop Huie stated the resolution and motion was properly before the conference. She recognized Rev. Kenneth Levingston who questioned the resolution being presented at this time since the previous report earlier in the week indicated a resolution would be voted on later. Dr. Bankston explained it was a matter of timing for the purchase of homes. Dr. Kirbyjon Caldwell rose and spoke for the resolution. Julius Booker from the Southeast District recommended putting a cap on the price of the home so that the residence committee worked within a specific financial frame. Dr. Don House asked the conference to give authority to search for a new home and allow the Council on Finance and Administration to have authority to either accept or reject the sale and purchase. Bishop Huie asked the body if they were ready to vote on the resolution with authority given to CF&A to either accept or reject the offer and they indicated yes. The Bishop asked for the vote on the motion from the Episcopal Residence Committee to vote by raised hand and it passed. Resolution Concerning Procedures for Distributing Opinions during Voting Years: Dr. Will Reed read the motion he perfected earlier as: "In the spirit of holy conversation, I move that a task force be established to review and make recommendations regarding policies and procedures around the communication and distribution of opinions prior to votes to be taken by the Annual Conference. This refers to the election of delegates, Resolutions, Constitutional Amendments, etc." The motion received a second and Dr. Reed spoke for the motion. Charlotte Newton, FUMC in Houston, asked if there would be time before annual conference to discuss those things. Beverly Woodard, Windsor Village UMC in Houston, spoke in favor of the motion. Bishop Huie asked if others wanted to speak and there were none. She asked the body to vote by raised hand and the motion failed. Question of Where will the annual conference be held next year? Bishop Huie called on Rev. Jessica LaGrone for the announcement. Rev. LaGrone said on behalf of Dr. Ed Robb and the pastoral staff, she welcomed the annual conference to return to The Woodlands UMC in 2010. After thanking the congregation for their gracious invitation, Bishop Huie called for the Cote d'Ivoire report. DVD - Report from Cote d'Ivoire: The presentation was a pictorial report of the delivery of 855,000 mosquito nets. Dr. Lacy Warner, a clergy member of the Texas Conference and Associate Professor at Duke University Divinity School announced that Duke will partner with the Texas Annual Conference to offer theological education and health care. Mr. Samuel Koffi brought greetings from Cote d'Ivoire and greetings from Bishop Benjamin Boni. Rev. Kilamba Kilumba went to Cote d'Ivoire to distribute the nets and thanked Bishop Huie for making it possible. Rev. Cynthia Harvey asked the 35 persons who travelled to Cote d'Ivoire to stand. She introduced a small delegation from Cote d'Ivoire who was present on the floor. Conclusion of the Business: Bishop Huie stated that the business was concluded and that the sending forth service would begin after a short recess. Announcement: The Bishop recognized Dr. Elijah Stansell who offered his appreciation for the offerings taken during conference. The totals were: $6,029.16, which was designated for annual conference expenses; $5,754. designated for schools in Cote d'Ivoire; and $5,572.36 for Lon Morris College. In addition to the offerings, he was handed a check for an additional $1,200 for Cote d'Ivoire schools. Words of Appreciation: Bishop Huie expressed her appreciation for the volunteers who gave countless hours toward planning and working in annual conference: The Woodlands UMC staff, the signers, tellers and counters, the conference staff and district administrative assistants; Jan Ervin and Rev. Rick Goodrich for planning conference, the conference secretaries, the worship team and asked Melissa Burnham and the worship team to stand. Courtesies: Rev. Rick Goodrich announced from Rev. David Meeker-Williams that someone had mistakenly taken his clergy robe the night before. He would appreciate exchanging it with the one DAILY PROCEEDINGS E-55

that was left behind. Rev. Goodrich reminded the clergy of the Celebration of Life service for Rev. Larry Kelly at 3:00 p.m. on Sunday, May 31, 2009 at the First United Methodist in Humble. There will be reserved seating for attending clergy members. Recess: Bishop Huie called for a short recess at 11:50 a.m. in order for the stage to be set for the Sending Forth Service. She asked all to be back within 10 minutes.

Day Four

The Service of Sending Forth Wednesday, May 27, 2009

The message was delivered by Rev. Christi Conway, who dedicated her message to the memory of her mother-in-law who recently passed away. Dr. Derrick Noble, IMPACT UMC in Port Arthur was the liturgist. The all male choir was composed of clergy from the conference, Marvin UMC, First UMC Missouri City, Christ UMC College Station, and members of the Texas Conference Worship Team. The choir was directed by Frode Gundersen and Matthew Robinson. The song leader was James Faith, Director of Music and Worship Arts at Christ UMC in College Stations. They were accompanied by pianists Melissa Burnham and James Faith with organist, Judith P. York. Bishop Huie set the appointments by calling forth the District Superintendents and asking clergy and laity from each district to stand as a group by the districts in which they will serve in the coming year. Bishop Huie asked for hands to be laid upon them or for the audience to extend hands toward them as they were blessed. After the appointments were blessed, the Bishop invited those who are starting new ministries to come forward and asked the whole body to stand and extend their hands forward for a special blessing for new ministries. The closing hymn was "Go Make of All Disciples," followed by the Bishop's benediction. Conference Adjourned: Bishop Huie declared the 2009 Texas Annual Conference adjourned at 12:40 p.m.

Respectfully submitted,

Dr. Gail Harrelson Secretary, Texas Annual Conference

ADDENDUM:

Bishop's Ruling of Law Concerning ¶613.1 and the Texas Annual Conference Early Retirement Incentive Program

The request for a ruling of law is not sustained because it was not germane to the proceedings of the Annual Conference.

No resolution, motion, or recommendation concerning either clergy compensation or the early retirement incentive program was before the Annual Conference at the time of the request for ruling of law. In its report to the Annual Conference, the Core Leadership Team brought no recommendation, E-56 DAILY PROCEEDINGS

motion, or resolution to the Annual Conference concerning clergy compensation or the early retirement incentive program.

Additionally and alternatively, all actions of the Conference Board of Pensions, Core Leadership Team, and Group Health Benefits Committee were proper under the Book of Discipline and within the authority delegated to them by the Annual Conference.

The Conference Board of Pensions and the Group Health Benefits Committee acted within their authority under The Book of Discipline and the Conference structure in developing and implementing an early retirement incentive program providing post-retirement benefits. Advice of outside legal counsel was sought and obtained to ensure that all actions were proper.

All actions concerning the early retirement incentive program were taken by the appropriate Annual Conference bodies operating under authority of The Book of Discipline and the authorization of the Annual Conference.

Additionally, the early retirement incentive program did not affect any clergy compensation "in relation with ¶613, #1 of the 2008 Book of Discipline." The program provides post-retirement benefits only, and is funded from Pension Unrestricted Reserve funds as recommended and approved by duly authorized bodies of the Annual Conference under authority of The Book of Discipline and as approved by outside Counsel.

Signed Bishop Janice Riggle Huie Bishop of the United Methodist Church

Date: June 24, 2009

All DVD reports are available at www.txcumc.org/video.