Minutes Kentucky Community and Technical College System Board of Regents Meeting December 3, 2021

KCTCS Board of Regents Chair Lisa Desmarais called to order the meeting of the Kentucky Community and Technical College System Board of Regents at 9:02 a.m. (ET) on December 3, 2021. The meeting was held in Room 102 A and B of the KCTCS System Office, Versailles. The press was notified of the meeting on November 24, 2021. Hon. Pamela Duncan, KCTCS General Counsel, served as parliamentarian.

Chair Desmarais introduced the three new Regents to the Board and asked each one to provide a brief introduction. Chair Desmarais noted the new Regents were elected to the Board during the October faculty and staff election. Ms. Kimberly Greene is a staff member at Somerset Community College, Dr. Patsy Jackson is a faculty member at Big Sandy Community and Technical College and Mrs. Brianna Whitten is a faculty member at Maysville Community and Technical College. She also welcomed Mr. Joe Heerdink back to the Board. He is a staff member from Henderson and Madisonville Community College. He was re-elected for another term. The new members will serve a three year term on the Board.

There being a quorum present, the meeting began with the approval of minutes.

Chair Desmarais shared that all of the minutes are grouped together and will get approval on all of them unless there are any that need to be discussed. She asked if there were any corrections to the following, minutes presented in the meeting materials.

• Approval of September 17, 2021, Regular Meeting Minutes
• Approval of November 4-5, 2021, KCTCS Board of Regents Retreat Minutes

Chair Desmarais asked if there were any corrections to the minutes. There being none, the minutes were declared approved as presented.

Chair Desmarais announced there will be a second Executive Closed Session added after agenda item C. Action: Personnel Actions. It will be Executive Session KRS 61.810 (1) (c) Proposed or Pending Litigation.

Chair Desmarais moved to the next item on the agenda.

Chair Desmarais asked if there were any changes to the consent agenda. There being none, the agenda was approved as presented.

Chair Desmarais moved to the next item on the agenda.

Chair Desmarais noted that Dean Dorton Executive in Charge Lance Mann provided an update to the KCTCS Board of Regents Audit Committee at their meeting on December 2, 2021, regarding the findings on the internal audit that had been conducted. He presented a PowerPoint presentation and provided a handout to each of the Committee members who attended in person. Chair Desmarais asked Vice President Followell to distribute the report copies to the full Board. Chair Desmarais provided an update on the presentation that was given to the KCTCS Board of Regents Audit Committee on December 2, 2021.

From the presentation Mr. Mann gave to the Committee, Chair Desmarais noted that details on the findings of the internal audit items of Executive Summary; Compensation Analysis for System Office Senior Staff, College Presidents & Cabinets; Transparency in Cost of Tuition; Credentials Audit for Senior/Key Personnel at System Office and Colleges; Information Technology - Remote Access Audit. Chair Desmarais shared with the Board that Dean Dorton was pleased with the overall results, and she thanked management and other personnel within KCTCS for their time and efforts during the process.

Chair Desmarais called for discussion

During discussion, Regent Fletcher asked if the College President Cabinet personnel could be looked at more in depth. The discussion centered around why colleges had different College President Cabinet personnel and if they could be the same at each college for efficiency. President Czarapata noted that this topic would be looked at further and a report would be given to the Board at a later date.

Other discussion focused on student late fees and why some colleges charged, and some did not. The Board wanted to focus on equity throughout the System. President Czarapata noted he would work with the College Presidents to address the issue.

Chair Desmarais noted that during the KCTCS Board of Regents Audit Committee meeting, she asked for Mr. Mann to provide an update in March at the next KCTCS Board of Regents Audit Committee meeting and then at the March Board meeting another Internal Audit update would be provided to the full Board.

Chair Desmarais called for additional discussion, there being none, she moved to the next item on the agenda.

RECOMMENDATION: That the KCTCS Board of Regents accept the financial audit for the 2020-21 fiscal year

Chair Desmarais noted that Mr. Brad Schelle from Crowe, LLP. joined the KCTCS Board of Regents Audit Committee at their meeting on December 2, 2021, virtually via Microsoft TEAMS to go over the 2020-21 external audit results.

Chair Desmarais noted that the independent opinion issued by Crowe, LLP is an unmodified opinion. This opinion means that the KCTCS financial statements present fairly, in all material respects, KCTCS' financial position as of June 30, 2021, and the changes in its financial position and its cash flows for the year ended June 30, 2021. The KCTCS financial statements and the audit firm's opinion letter are included in the document provided to the KCTCS Board of Regents, titled 2020-21 Annual Financial Report. Auditing standards require that ce1tain items be communicated to management. Those items were noted in the materials provided to the Board members.

Chair Desmarais introduced Vice President Followell and asked him to share additional information. He shared three additional repo1ts, (2020-21 Annual Financial Report,2020-21 Audit Correspondence, and 2020-21 Report on Audit of Institutions of Higher Education in Accordance with Uniform Guidance) were provided to the full Board in hard copy and were loaded for the Board in the Board of Regents On Board portal.

Crowe, LLP rep01ted there are no deficiencies in the KCTCS internal controls that are considered material weaknesses. The audit firm's management comment letter, KCTCS responses, and other related correspondence from the audit firm are included in the document titled 2019-20 Audit Correspondence. Crowe, LLP has audited the KCTCS major federal programs in compliance with the requirements of the U.S. Office of Management and Budget Uniform Guidance. That audit rep01t is in the document titled Report on Audit of Institutions of Higher Education in Accordance with Uniform Guidance.

Chair Desmarais called for discussion.

During discussion, Vice President Followell shared negotiations, for a new external firm were taking place. He noted it is best practice to reissue request for proposals for new firms on a regular basis.

Chair Desmarais called for additional discussion, there being none she called for a motion.

Regent Allen moved, and Regent Fletcher seconded the motion. Ms. Duncan conducted a roll call vote.

The motion was approved unanimously.

Chair Desmarais called for a recess. She noted that the Board and Ms. Duncan would come back in ten minutes and go into executive session and the personnel would not convene again until the Board was ready to adjourn from executive session.

The Board recessed at 10:20 a.m. (ET) and  reconvened at 10:30 a.m. (ET).

Chair Desmarais called for a motion for the KCTCS Board of Regents to reconvene the meeting in open session.

MOTION: Regent Whitten moved, and Regent Fletcher seconded, that the KCTCS Board of Regents reconvene in open session.

Chair Desmarais called for the vote. Ms. Duncan conducted the vote.

The motion was approved unanimously.

The KCTCS Board of Regents reconvened in open session at 11:18 a.m. (ET).

Chair Desmarais announced the KCTCS Board of Regents has no action to bring at this time.

RECOMMENDATION: That the KCTCS Board of Regents ratify the personnel actions listed in the agenda materials.

It was noted that the personnel actions presented were in accordance with rep01ting guidelines and policies adopted by the KCTCS Board of Regents. The Board of Regents delegated to the KCTCS President the authority to administer personnel actions, with such actions to be presented to the Board for review and ratification at each regularly scheduled Board meeting.

Chair Desmarais called for discussion. There being none, she called for the motion.

MOTION: Regent Allen moved, and Regent Fletcher seconded, that the KCTCS Board of Regents ratify the personnel actions listed in the agenda materials.

Chair Desmarais called for the vote. Ms. Duncan conducted the vote

The motion was approved unanimously.

Chair Desmarais moved to the next item on the agenda.

RECOMMENDATION: That the KCTCS Board of Regents ratify the increase in benefits delivered as part of the health benefits funded by the OPEB Trust previously established by 2013 KCTCS Board of Regents Resolution (Attachment A).

Chair Desmarais introduced KCTCS Vice President Wendell Followell to present the agenda item.

Mr. Followell noted that at the September 17, 2022, KCTCS Board of Regents meeting, an Update regarding the Other Postemployment Benefit (OPEB) Trust for the benefit of eligible employees in KCTCS 403(b) retirement plans was provided. At that time, it was not recognized that the KCTCS Board of Regents needed to ratify the action taken to expand the benefits. Mr. Followell turned the presentation over to Ms. Duncan who then introduced Ms. Melissa Bork and Mr. Brent Baughman who will be presenting to the KCTCS Board of Regents on two separate issues regarding the OPEB trust and benefits.

Mr. Baughman spoke on the particulars of the trust and why it is fiscally responsible to do the trust and Ms. Bork spoke on the KCTCS Board of Regents statut01y duties. After the September 17, 2022, KCTCS Board of Regents meeting, questions were triggered concerning v,1hat the KCTCS Board of Regents were statuto1y authorized to do in their role of employee compensation and benefits, after review, it came down to the KCTCS Board of Regents is statutory authorized and has exclusive control over the sala1y and compensation of all employees of KCTCS. The Board can delegate ce1tain roles to the KCTCS President, but the Board has control over those recommendations and the Board has an obligation to act on those recommendations.

Chair Desmarais called for discussion.

During discussion, it was noted that there is no policy and procedure that is written to guide the Board in how they should approve salary and/ or benefits of KCTCS employees. Ms. Duncan shared that she would be working with the board to develop a policy and procedure to do this. It was also noted that Vice President Followell would need to notify existing OPEB recipients that their coverage would change year to year after the Board of Regents approve the type of coverage, they would receive year to year.

Chair Desmarais called for additional discussion. There being none, she called for the motion.

MOTION: Regent Allen moved, and Regent Fletcher seconded, that the KCTCS Board of Regents ratify the increase in benefits delivered as pa1t of the health benefits funded by the OPEB Trust previously established by 2013 KCTCS Board of Regents Resolution.

Chair Desmarais called for the vote. Ms. Duncan conducted the vote.

The motion was approved unanimously.

Chair Desmarais sta1ted with the next agenda item.

Attachment A

Kentucky Community and Technical College System
Board of Regents
KENTUCKY COMMUNITY AND TECHNICAL COLLEGE SYSTEM POST RETIREMENT PLAN

WHEREAS, Kentucky Community and Technical College System ("System") sponsors and maintains the Kentucky Community and Technical College System Post Retirement Plan ("OPEB Plan"), which provides post retirement non-pension benefits, specifically group medical coverage, for the benefit of ce1tain of the System's former employees and their beneficiaries ("Participants"); and

WHEREAS, benefits under the OPEB Plan are funded by a trust held by PNC Bank, National Association ("Trustee"), pursuant to the Kentucky Community and Technical College System Post Retirement Benefit Plan Trust Agreement between the System and the Trustee ("OPEB Trust"), which Trust is intended to be tax exempt under section 115 of the Internal Revenue Code of 1986, as amended; and

WHEREAS, upon the recommendation of the President's Cabinet ("Administration"), the Board of Regents of the System ("Board"), on behalf thereof, desires to ratify the amendment and enhancement of the OPEB Plan for the coverage year ending December 31, 2022, including (i) offering Anthem®'s Anthem Medicare Preferred (PPO) level of coverage and (ii) not charging Participants a po1tion of the premiums for such coverage, in the forms executed by Wendell Followell, Vice President and Treasurer of the System ("Amendment"), while reserving the System's right to offer reduced coverage or different Pa1ticipant cost-sharing in future coverage years.

NOW, THEREFORE, BE IT:

RESOLVED, that the Board, on behalf of the System and upon the recommendation of the Administration, hereby adopts, approves, and ratifies the Amendment to the OPEB Plan, including approving the use of OPEB Trust assets to fund such enhanced benefits under the OPEB Plan for the coverage year ending December 31, 2022, while reserving the System's right to offer reduced coverage or different Participant cost-sharing in future coverage years; and

FURTHER RESOLVED, that the appropriate officers of the System be, and each hereby is, authorized, empowered, and directed, on behalf of the System, to execute any and all necessary or appropriate documents evidencing and implementing the above-referenced actions, including, without limitation, the Amendment, and to do all other acts and things which each such officer of the System determines to be necessary or appropriate to effectuate the actions described above.

CERTIFICATION

I, Lisa Desmarais, do hereby certify that I am the duly appointed and acting Chair of the Kentucky Community and Technical College System Board of Regents and, as such, I further certify that the foregoing is a true, correct, and complete copy of the Resolution adopted by the Board of Regents of the Kentucky Community and Technical College System, at a meeting properly held on December 3, 2021, now in full force and effect.

IN WITNESS WHEREOF, I have hereunto set my hand this 3rd day of December 2021.

LISA V. DESMARAIS, CHAIR KCTCS BOARD OF REGENTS

I, Dr. Paul Czarapata, do hereby certify that I am the duly appointed and acting President of the Kentucky Community and Technical College System and, as such, I further certify that the foregoing is a true, correct, and complete copy of the Resolution adopted by the Board of Regents of the Kentucky Community and Technical College System, at a meeting properly held on December 3, 2021, now in full force and effect.

IN WITNESS WHEREOF, I have hereunto set my hand this 3rd day of December 2021

PAUL B. CZARAPATA, Ed.D. KCTCS PRESIDENT

This Instrument Prepared By:

Pamela M. Duncan, Esq. KCTCS Vice President and General Counsel

 

Chair Desmarais asked KCTCS Vice President Wendell Followell to present the agenda item. Vice President Followell asked KCTCS Assistant Vice President and Chief Human Resources Officer Jackie Cecil to assist him.

Vice President Followell noted that the KCTCS Board of Regents asked for an update in regard to KCTCS employee benefits. Vice President Followell shared that his staff put together the document posted in the materials on what benefits employees receive from type of retirement account, dental insurance, sick leave, life insurance, and other benefits for both nev11 and existing employees.

Chair Desmarais called for discussion

Chair Desmarais noted that the Board is statutorily required to know the benefits information and understand it. She thanked Vice President Followell and his staff for putting this together. Questions were asked regarding pa1t time employees. The Board wanted to know if they receive benefits. Vice President Followell shared that if a part time employee works 25 hours, they are eligible to receive some benefits.

The Board asked if they could receive a more detailed benefit update a future meeting. Vice President Followell noted he would work with his staff to provide further information.

Chair Desmarais called for additional discussion. There being none, she moved to the next agenda item. .

Chair Desmarais asked KCTCS Vice President Wendell Followell to present the agenda item. Vice President Followell asked KCTCS Assistant Vice President and Chief Human Resources Officer Jackie Cecil to assist him. KCTCS Director of Employment and Compensation Heather Humphreys also assisted with the presentation.

Vice President Followell shared that in September, he would bring the Board an update as to where KCTCS is with the work that has been done and continues to be done with the compensation and classification study. Compensation is a complex situation. There are challenges in every market retaining employees, and that is one focus this plan will address.

Chair Desmarais noted that KCTCS is not alone in the workforce issue facing the state. Job retention is a problem in every state.

After the presentation, Chair Desmarais called for discussion.

Questions regarding the posting the positions and positions of advancing through the System were addressed by KCTCS Staff. It was noted that each college has their own way to recruit and adve1tise positions.

Questions were also addressed regarding reorganization at the College and System level.

Chair Desmarais called for additional discussion. There being none, she moved to the next agenda item.

Chair Desmarais called lunch. She noted that the Board and Ms. Duncan would come back in ten minutes after they grab lunch and go into executive session and the personnel could not convene again until the Board was ready to adjourn from executive session.

The Board recessed at 1:34 p.m. (ET) and reconvened at 2:04 p.m. (ET).

Chair Desmarais called for a motion for the KCTCS Board of Regents to reconvene the meeting in open session.

MOTION: Regent Stevens moved, and Regent Whitten seconded, that the KCTCS Board of Regents reconvene in open session.

Chair Desmarais called for the vote. Ms. Duncan conducted the vote.

The motion was approved unanimously.

The KCTCS Board of Regents reconvened in open session at 2:05 p.m. (ET).

Chair Desmarais announced the KCTCS Board of Regents has no action to bring at this time.

Chair Desmarais sta1ted with the next agenda item

RECOMMENDATION: The KCTCS Board of Regents approve a one-time employee appreciation award for each regular, full-time employee, employed as of November 1, 2021, in recognition of the outstanding work performed during the COVID-19 pandemic. (Attachment A). The cost of including regular part-time employees is included for consideration (Attachment B); the cost for all regular full-time and part­ time employees can be found in Attachment C. All three attachments list a range for an award of $250-00 to $1,000-00 with the associated cost by business unit. The KCTCS President is encouraged to implement this award prior to the institutional break later this month.

Chair Desmarais asked KCTCS Vice President Wendell Followell to present the agenda item.

Vice President Followell noted that KCTCS faculty and staff have and continue to demonstrate their dedication to our students. This dedication is exemplified over the past two years with COVID-19 pandemic challenges. Their commitment to provide educational services while under increased safety restrictions and vi1tual instructional delivery of classes provided a seamless educational experience for our students. This achievement would not have been possible without the dedication and hard work of faculty and staff working to advance the mission of KCTCS daily for the benefit of the Commonwealth. This employee retention award is in recognition of this outstanding achievement and commitment.

The recommended employee appreciation award will be funded using nonrecurring resources and could range between $250 to $1,000.

Chair Desmarais called for discussion.

President Czarapata noted that all 16 College Presidents were in favor of this employee appreciation award and would like to recommend to the Board that they choose the $500 award for employees. Chair Desmarais noted that she is in favor of an appreciation award, but as a Board we need to be careful that it does not become the only compensation given.

During discussion, it was decided that $1,000 was the preference to be given, but in terms of the legislative session and enrollment, the Board would award $500 now and then look again at the March 2022 meeting to see if the Board could award the other $500.

Chair Desmarais asked Ms. Duncan if two motions are needed in order to carry out this action. As parliamentarian, Ms. Duncan noted that two motions were needed.

Chair Desmarais called for additional discussion. There being none, she called for the motion.

MOTION: Regent Stevens moved, and Regent Heerdink seconded, that the KCTCS Board of Regents approve a one-time employee appreciation award of $500 to be awarded immediately before the KCTCS Institutional Closing for each regular, full-time employee and each regular part-time employee, employed as of November 1, 2021, in recognition of the outstanding work performed during the COVID-19 pandemic (Attachment C) in the agenda materials.

Chair Desmarais called for the vote. Ms. Duncan conducted the vote

The motion was approved unanimously.

Chair Desmarais called for a motion and vote on the second motion.

MOTION: Regent Allen moved, and Regent Girdler seconded, that the KCTCS President bring a one-time employee appreciation award of $500 to be awarded for each regular, full-time employee and each regular pa1t-time employee, employed as of November 1, 2021, in 1:recognition of the outstanding work performed during the COVID-19 pandemic to the KCTCS Board of Regents to their March 2022 Meeting.

Chair Desmarais called for the vote. Ms. Duncan conducted the vote.

The motion was approved unanimously.

Chair Desmarais called for additional discussion. There being none, she moved to the next agenda item.

RECOMMENDATION: The KCTCS Board of Regents approve the 2022-24 biennial budget requests, operating and capital, for KCTCS. Statutorily, KCTCS must submit its requests, operating and capital, to the Council of Postsecondary Education, the Legislative Research Commission (LRC) and the Governor of Kentucky- Office of State Budget Director (OSBD). The KCTCS operating and capital requests are developed in cooperation with the CPE, LRC and OSBD guidelines. The requests that follow are items developed in consultation with the KCTCS President's Leadership Team, CPE, and OSBD staff.

Chair Desmarais asked KCTCS Vice President Wendell Followell to present the agenda item.

• Recognizes the economic growth the Commonwealth of Kentucky has experienced.
• Recognizes the need for an additional general fund appropriation for each institution of postseconda1y education.
• Provides opportunity for the institutions and the CPE to cooperatively seek additional funding.

The KCTCS President has worked with the 16 KCTCS college presidents and the CPE President and staff to develop a biennial capital budget request that addresses KCTCS's capital needs for the 2022-24 biennia. The proposed KCTCS 2022-24 biennial capital budget request is based on the KCTCS 2022-28 Six-Year Capital Plan. The KCTCS 2022-28 six-year capital plan is compiled from project information submitted by the 16 KCTCS college presidents through a Strategic Needs Analysis (SNA) submitted pursuant to statute to the Legislative Capital Planning Advisory Board and in concert with CPE guidelines. CPE is requesting $700,000,000 in General Fund supported bond funds for a capital investment pool of asset preservation and renovation projects. This request for asset preservation funds is needed to address long overdue deferred maintenance, bring facilities up to current indust1y standards, and better serve students, faculty, and staff. If the requested bond funds are authorized, they will be matched fifty cents on the dollar by receiving institutions. KCTCS' portion of the requested $700 million pool would be $92,515,200 for the 2022-24 biennia, i.e., $46,257,600 for 2022-23 and 2023-24, matched at fifty cents on the dollar. Projects listed in the Asset Preservation and Renovation total will be eligible to receive funding from this pool.

Chair Desmarais called for discussion.

During discussion, the Regents asked Vice President Followell about the Bluegrass Community and Technical College (BCTC) Student Services and Classroom Building with a cost of $58,000,000. President Czarapata shared this project hopefully would allow BCTC to move off of the Cooper Campus of the University of Kentucky. Regent Fletcher continued discussion in regard to new brick and mortar projects when the utilization of our current facilities is low. Regent Fletcher asked that Vice President Followell bring a report to the March meeting with the breakdown of building utilization throughout KCTCS.

Chair Desmarais called for additional discussion. There being none, she called for the motion.

MOTION: Regent Greene moved, and Regent Heerdink seconded, that the KCTCS Board of Regents approve the 2022-24 biennial budget requests.

Chair Desmarais called for the vote. Ms. Duncan conducted the vote. Ms. Duncan noted that Regent Girdler had to leave.

The motion was approved unanimously.

Chair Desmarais moved to next agenda item.

 

RECOMMENDATION: That the KCTCS Board of Regents approve all revisions to KCTCS Board of Regents Policy 1.5 Administrative Structure of the Kentucky Community and Technical College System.

Regent Fletcher asked for Ms. Duncan to present the agenda item to the Board.

Ms. Duncan shared that the proposed revisions and additions to the KCTCS Board of Regents Policy 1.5 Administrative Structure of the Kentucky Community and Technical College System are intended to Clarify and more strongly state the authority of the KCTCS Board of Regents as the sole governing body for the KCTCS. It also emphasizes the jurisdiction of the KCTCS Board of Regents.

Ms. Duncan noted that the Board would not delineate the governance and administrative roles of the KCTCS Board of Regents and the KCTCS President as the Board's employee; and establish minimum qualifications for the KCTCS President and the College Presidents. It will Require a Board Procedure that establishes these criteria and provides a mechanism for any deviation therefrom with the need for "clear and convincing" justification for that deviation; and clarifies the delegation of authority from the KCTCS Board of Regents to the KCTCS President, reserving all duties within the exclusive jurisdiction of the Board thereto.

Ms. Duncan mentioned that the Board had the opportunity to review and make edits to the policy that was housed in the Board TEAMS po1tal.

Chair Desmarais called for discussion.

During discussion, Ms. Duncan noted that this policy now clarifies and more strongly states, the authority that the Board of Regents has as the sole governing body of KCTCS.

Chair Desmarais called for additional discussion. There being none, she called for the motion.

MOTION: Regent Fletcher moved, and Regent Whitten seconded the motion. Ms. Duncan conducted a roll call vote.

The motion was approved unanimously.

Chair Desmarais moved to the next agenda item.

RECOMMENDATION: That the KCTCS Board of Regents approve the new KCTCS Board of Regents Policy 2.11, Compensation of Non-banded Employees/Executive Level Compensation.

Regent Fletcher asked for Ms. Duncan to present the agenda item to the Board.

Ms. Duncan shared that the KCTCS Board of Regents has exclusive jurisdiction over the salary and benefits of all KCTCS employees. For those employees who do not fall within a band on the previously adopted salary schedule, the Board has only approved hiring and no other review of salary, benefits, or supplemental compensation has occurred. This policy will ensure that the KCTCS Board of Regents sets a range of acceptable salaries for executive level employees and will provide a mechanism for pre-approval of any deviation therefrom.

Ms. Duncan noted that while the Board establishes and votes to approve the KCTCS employee salary schedules, those schedules only go to band 16. The College Presidents and the KCTCS President's Cabinet are not within a band and are considered non-banded. The KCTCS President's salary and other compensation is set and approved by the Board upon hiring and in any subsequent compensation votes. The non-banded criteria leaves those employees outside the Board's approval and solely within the KCTCS President's discretion.

Chair Desmarais called for discussion.

During discussion the Regents discussed exceptions that were made to non-banded employees which included car allowances or bonuses. Ms. Duncan noted that this policy would alleviate these special items and at a future meeting a procedure would need to be approved.

Chair Desmarais called for additional discussion. There being none, she called for the motion.

MOTION: Regent Fletcher moved, and Regent Greene seconded the motion. Ms. Duncan conducted a roll call vote.

The motion was approved unanimously.

Chair Desmarais moved to the next agenda item.

RECOMMENDATION: The KCTCS Board of Regents approve the scope increase of $800,000 for the renovation of the Student Center Building on the Elizabethtown Community & Technical College Main Campus.

Chair Desmarais asked KCTCS Vice President Wendell Followell o present the agenda item.

Vice President Followell shared that in accordance with state statues, interim authorization for a capital construction project with a scope greater than $1,000,000 must be approved by the KCTCS Board of Regents and repo1ted to the Capital Projects and Bond Oversight Committee. The current authorization for the ECTC Student Center Renovation is $4,300,000. Additional scope increase is needed in the amount of $800,000 to raise the authorization to $5,100,000.

Vice President Followell shared that the current construction market conditions have caused this needed increase due to material and labor costs which have escalated recently and are expected to continue into the near future. The increase in authorized scope of the project will be funded from agency funds with the anticipation of continuing fund-raising eff01ts for the project from private donations. The project has significant community support. Should the increase in authorization necessa1y to move forward with this project not be granted, the bids received will have to be canceled and the project re-bid at a later date

Chair Desmarais called for discussion. There being none, she called for the motion.

MOTION: Chair Desmarais moved, and Regent Allen seconded the motion. Ms. Duncan conducted a roll call vote.

The motion was approved unanimously.

Chair Desmarais moved to the next agenda item.

RECOMMENDATION: That the Board of Regents approve an Associate in Applied Science (AAS) in Aviation Maintenance Technology, a diploma in Airframe and Powerplant Maintenance Technician and certificates in Airframe Maintenance Technician, Powerplant Maintenance Technician and Aviation Electronics for Madisonville Community College (MCC) to be implemented in Fall 2022.

Regent Stevens introduced Madisonville Community College President/ CEO Dr. Cindy Kelley to present the agenda item.

Dr. Kelley noted that Kentucky ranks second nationally in aerospace-related exp01ts. Labor market data for Kentucky projects an 11 percent increase in openings through 2026. MCC has pioneered both a fixed wing and rotary pilot training program, and the Aviation Maintenance Technology program will be a pe1fect pa1tner to those existing programs. Just as with pilots, there is a worldwide shortage of aviation mechanics. In Boeing's Pilot and Technician Outlook 2020-2039, Boeing projects a need for 739,000 new aviation mechanics worldwide over the next twenty years. Data for Kentucky projects an 11 percent increase in openings through 2026.

Dr. Kelley shared that the Kentucky General Assembly commissioned the Kentucky Aerospace & Aviation Industry Study which was released in May 2017. The study repo1ts that Kentucky ranks second nationally in aerospace-related exp01ts. Kentucky is also home to three major private-sector logistics hubs: DHL and Amazon in N01thern Kentucky and UPS in Louisville. Madisonville Community College intends to be a part of the solution to the national and statewide shortage of aviation personnel. The AMT program will provide supp01t personnel needed for the aviation industry as it grows and continues to increase the economy of Kentucky.

The Aviation Maintenance Technology program will be offered at the Madisonville Municipal Airport, currently being leased by MCC. This is a city-owned, public-use airport located five miles from city limit. The program will use a hybrid delive1y model. The didactic content 0ectures, assignments, reading material, assessments, etc.) will be delivered online. The lab skills will be mastered and evaluated at the Madisonville Municipal Airp01t site.

Chair Desmarais called for discussion. There being none, she called for the motion.

MOTION: Regent Stevens moved, and Regent Whitten seconded the motion. Ms. Duncan conducted a roll call vote.

The motion was approved unanimously.

Chair Desmarais moved to the next agenda item.

RECOMMENDATION: That the Board of Regents approve an Associate in Applied Science (AAS) in Diesel Technology with tracks in Agriculture Diesel Technician, Construction Equipment Technician, and Medium and Heavy Truck Technician, diplomas in Agriculture Equipment Technician, Construction Equipment Technician, and Medium and Heavy Truck Technician, and certificates in Agriculture Equipment Mechanic Helper, Construction Equipment Mechanic Helper, Electrical/Electronics Systems Mechanic, Diesel Engine Mechanic, Diesel Mechanics Assistant, Diesel Steering and Suspension Mechanic, Fluid Power Mechanic, Heavy Duty Brake Mechanic, Heavy Duty Drive Train Mechanic, Medium and Heavy Truck Mechanic Helper, Mobile Air Conditioning Mechanic, Preventive Maintenance Mechanic and Undercarriage Mechanic for Madisonville Community College (MCC) to be implemented in Fall 2022.

Regent Stevens introduced Madisonville Community College President/ CEO Dr. Cindy Kelley to present the agenda item.

Dr. Kelley noted that local demand is high, as employers surveyed rep01ted that finding qualified diesel mechanics is difficult in the MCC service area. Employers estimate openings for over 21 positions in the next five years. The starting salary varies greatly between $14 and $28 per hour. The state labor market data was equally promising, showing a nine percent growth rate through 2026.

Dr. Kelley shared that the Diesel Technology program will focus on live work which will be largely provided from two existing programs (Utility Technician and Truck Driver Training). With multiple tracks in both programs, students in Diesel Technology will have ready access to equipment in need of maintenance and repair. The college has been awarded a Depa1tment of Labor (DOL) grant to provide the necessary funding for the first three years, and internal reallocation for maintenance of existing equipment will be dive1ted to Diesel Technology along with new tuition dollars to sustain the program thereafter.

Dr. Kelley noted that the Diesel Technology v1rill have a positive impact on existing programs since Utility Technician and Truck Driver Training require extensive maintenance and repair for continued operation. Funding already exists for this maintenance requirement but will be dive1ted to the Diesel Technology program in the future.

Chair Desmarais called for discussion. There being none, she called for the motion.

MOTION: Regent Stevens moved, and Regent Heerdink seconded the motion. Ms. Duncan conducted a roll call vote.

The motion was approved unanimously.

Chair Desmarais moved to the next agenda item.

RECOMMENDATION: That the KCTCS Board of Regents approve the proposed revision of KCTCS Board of Regents 4.11 Policy on Program Approval.

Chair Desmarais asked for KCTCS Chancellor Williams to present the agenda item to the Board.

Chancellor Williams noted that the proposed revision of KCTCS Board of Regents 4.11, Policy on Program Approval, expedites program approval by authorizing the KCTCS President to approve college requests to add programs of study currently in the KCTCS Catalog without taking the approval before the Board of Regents and still following Council on Postsecondary Education requirements; and provides for the approval of programs new to the KCTCS Catalog by the Board of Regents.

Chancellor Williams shared that the Board of Regents desires to expedite program approval to enhance the System's responsiveness to business and indust1y. Final program approval rests with the Council on Postsecondary Education (CPE). To expedite the Board's approval, which then will hasten CPE's approval, the Chancellor's Office contacted CPE for their support of a policy change to allow the KCTCS President to approve programs already in the KCTCS Catalog before it is submitted to CPE, with CPE having the final approval.

Chancellor Williams noted that a change to KCTCS Board of Regents 4.11 Policy on Program Approval provides this authority to the KCTCS President.

Chair Desmarais called for discussion. There being none, she called for the motion.

MOTION: Chair Desmarais moved, and Regent Fletcher seconded the motion. Ms. Duncan conducted a roll call vote.

The motion was approved unanimously.

Chair Desmarais moved to take a recess.

The Board recessed at 3:46 p.m. (ET) and reconvened at 4:04 p.m. (ET).

Chair Desmarais noted that all the action items for the meeting has been addressed. She shared there are eight update items to still go through.

Chair Desmarais asked the Board which items they wanted to discuss.

Ms. Duncan shared that there is a stay with the Mandatory Vaccine Plan so there will be no mandatory vaccines at this time.

Chair Desmarais asked Chancellor Williams to discuss the Accreditation agenda item.

Chancellor Williams shared that during the September 2021 KCTCS Board of Regents meeting, Regents questioned the efficiencies possible should the 16 Colleges of KCTCS merge into one, singly­ accredited institution. This report provides information on the perceived benefits and costs of single accreditation along with statutory authority of the Board of Regents and accreditor oppo1tunity.

Additional research into efficiencies and any actual cost-savings would need to be unde1taken prior to a decision of this magnitude. If KCTCS became a singly-accredited institution, 16 institutions would merge into one College. The system would exist as the administrative framework for the one College. Current colleges would become off-campus instructional sites or branch campuses and the system would manage shared systems and institutional governance.

Chancellor Williams noted that the 16 colleges of KCTCS could be merged into a single community college under SACSCOC accreditation. The General Assembly may have to approve this new College. Efficiencies of policy and practice could result, along with some recurring costs savings. There would be immediate direct costs due to the substantive accreditation process and new branding and marketing. There would be other potential costs, including public and legislative concerns, loss of college leadership and expe1tise, loss of alumni/donor support, and loss of enrollments due to a lack of student affiliation with the new institution. More research and information would be of value before unde1taking formal discussion.

Chair Desmarais called for discussion.

During discussion the Regents discussed pros and cons of pursing single accreditation. The Regents will have more discussion on this topic at a later date.

Chair Desmarais called for additional discussion. There being none, she moved to the next agenda.

Chair Desmarais asked for KCTCS Chief of Staff and Board Liaison Hannah Rivera to present the agenda item to the Board.

Ms. Rivera shared that the procedures are scheduled to be reviewed at least eve1y three years. She noted that last review ,,vas Februa1y 5, 2019, so they are to be reviev11ed before the next Board meeting in March 2022. Ms. Rivera noted that these were an information item and asked if any Regent had any questions or changes to let her know before the next Board meeting.

Chair Desmarais announced a special KCTCS Board of Regents meeting in January 2022 to discuss the current evaluation process of the KCTCS President and to do a mid-year evaluation of the KCTCS President. She shared that the Board would invite external input to his evaluation.

Chair Desmarais called for discussion. There being none, she moved to the next agenda item.

President Czarapata and KCTCS Governmental Affairs Liaison Brian Perry gave a brief legislative update to the KCTCS Board of Regents.

Chair Desmarais called for discussion. There being none, she moved to the next agenda item

Chair Desmarais asked KCTCS Chancellor Williams to provide a brief update to the Board on the KCTCS Strategic Plan.

Chancellor Williams noted that the Board will be asked to discuss and affirm their support of the draft Mission, Vision, Values, Goals, and Objectives as noted in the Strategic Planning Update in your agenda materials. These affirmations will assist in developing the next steps of the plan with the goal of having a final plan for Board approval at the March 25, 2022, KCTCS Board of Regents meeting.

Chancellor Williams shared that President Czarapata has finished all of his college tours and the surveys that were conducted after the visits have been used in the planning of the KCTCS Strategic Plan 2022-2026. Chancellor Williams and Vice Chancellor Alicia Crouch went through the survey results with the Board.

Chair Desmarais called for discussion. There being none, she announced the next meeting.

Chair Desmarais announced that the next regular meeting of the KCTCS Board of Regents is scheduled for March 24-25, 2022, at Hazard Community and Technical College, Hazard Kentucky.

Regent Stevens moved that the meeting adjourn. Regent Heerdink seconded the motion.

Chair Desmarais asked Ms. Duncan to conduct the roll call vote.

The motion was approved unanimously, and the Board adjourned at 4:46 p.m. (ET).

March 25,  2022

Date Approved

Signature of approval are on file.