Minutes

KCTCS Board of Regents Chair James Lee Stevens called to order the meeting of the Kentucky Community and Technical College System Board of Regents at 1:00 pm (ET) on September 15, 2022. The meeting was held at the KCTCS System Office in Versailles, Kentucky. The press was notified of the meeting on September 8, 2022. Hon. Pamela Duncan, KCTCS General Counsel, served as parliamentarian.

Chair Stevens introduced the three new Regents to the Board and asked each one to provide a brief introduction. Ms. Brittanie Bogard is a student at Hopkinsville Community College and Mr. Richard Smith is a student at Southcentral Kentucky Community and Technical College. Ms. Kelly Rabinowitz and was appointed by Governor Beshear. Chair Stevens also noted all three Regents were given their orientation session and they were administered the Oath of Office before the meeting began.

Chair Stevens asked Ms. Duncan to call the roll.

There being a quorum present, the meeting began.

Chair Stevens asked KCTCS President Czarapata to introduce KCTCS Chancellor Kris Williams to provide a presentation to the Board. Chancellor Williams provided a PowerPoint presentation on Certificate and Program Approvals, Certificate and Program Suspensions, Enrollment Report, and highlights from the Chancellor’s area.

Chair Stephens called for discussion. During discussion, the Regents asked for clarification on how students can finish a program of study if it is suspended. Chancellor Williams noted that each college is responsible for notifying students in the program and they finish or move to another program. Chair Stevens called for additional discussion, there being none, he moved to the next agenda item.

Chair Stevens asked KCTCS President Czarapata to introduce Acting Workforce and Economic Development Vice President Jessie Schook to provide a presentation to the Board. Ms. Schook provided a PowerPoint presentation on Workforce and Economic Development Updates. She noted that TRAINS funding has been the highest on record and KCTCS will be asking for more funding. She also presented a video on the benefits of Trains funding.

Ms. Schook called the Board’s attention to the KCTCS Workforce and Economic Development 2021-2022 Annual Report that was given to each Board member. The report highlighted all the advances the department has made.

Chair Stevens called for discussion, there being none, he moved to the next agenda item.

Chair Stevens asked KCTCS President Czarapata to introduce Interim Vice President of Administrative Services Beverly Malloy to provide a presentation to the Board. Ms. Malloy noted that the Statement of Current Funds Revenues and Expenses as presented in the agenda materials reflects actual program and operational expenditures compared to the 2021-22 budget approved by the KCTCS Board of Regents, June 11, 2021. The report reflects total revenues and appropriated fund balances of $1,002,872,000 (94 percent of the budgeted revenue and appropriated funds).

Ms. Malloy shared that the Statement of Current Funds Revenues and Expenses also reflects current fund expenses and budget reserve of $868,322,000 (81 percent of the expenses budgeted for the year). The Statement of Net Position as presented in the agenda materials reflects the overall financial position of the System. It includes assets, deferred outflows, liabilities, deferred inflows, and net position. KCTCS’s net position remains a strong $960,623,000 as of June 30, 2022.

Ms. Malloy also gave a PowerPoint presentation on KCTCS Energy Savings Performance Contracts to give the Board of Regents greater detail in the distribution of asset preservation funds.

Chair Stevens called for discussion, there being none, he moved to the next agenda item.

Chair Stevens asked KCTCS President Czarapata to introduce Vice President of Talent, Inclusion, and Workplace Culture Linette Hillis to provide a presentation to the Board. Ms. Hillis provided a PowerPoint presentation on Human Resources Strategy, Compensation RFP, Retirement 403b Enhancements, KCTCS Benefits, HR Dashboard, PageUP Implementation, Hard to Fill Positions, and the Culture DEI Study/Survey.

After the presentation Ms. Hillis shared that more information on the topics presented would be forthcoming at a later meeting.

Chair Stevens called for discussion, there being none, he moved to the next agenda item.

Chair Stevens asked the ROC Chair Dr. Wendy Fletcher to provide a presentation on the Committee’s actions. Before Committee Chair Fletcher began KCTCS President Czarapata shared that that the two RFP’s that were out for bid will now be combined into one as they both were going to be compiling a lot of the same information.

Committee Chair Fletcher shared that the Committee heard the RFP presentations and that the process will be moving forward through the KCTCS procure to payment procedure. She noted that the online learning success charge will be presented to the full Board at the December 2022 meeting and all the colleges now have a DEI officer. Chair Desmarais called for discussion, there being none, she moved to the next agenda item.

Chair Stephens called for discussion. During discussion, the Regents asked for clarification on when the full Board can discuss the chosen RFP vendor and when a timeline would be shared. KCTCS President Czarapata noted that more information would be shared once the process was completed.

Chair Stevens called for additional discussion, there being none, he moved to the next agenda item.

Chair Stevens provided a brief update to the full Board on the KCTCS Board of Regents Audit Committee Meeting, September 6, 2022. There was one action item that will be brought to the full Board on September 16, 2022.

Chair Stevens called for discussion, there being none, he moved to the next agenda item.

Chair Stevens asked KCTCS President Czarapata to introduce KCTCS Chancellor Kris Williams to provide a presentation to the Board. Vice Chancellor for Research and Policy Analysis Alicia Crouch and Chancellor Williams provided a PowerPoint to show the final metrics of the plan.

Chair Stevens called for discussion. During discussion, the Board thanked Chancellor Williams and Vice Chancellor Crouch for all the hard work in closing out the KCTCS 2016-2022 Strategic Plan. 

Chair Stevens called for additional discussion, there being none, he moved to the next agenda item.

Chair Stevens asked KCTCS President Czarapata to introduce KCTCS Chancellor Kris Williams to provide a presentation to the Board. Vice Chancellor for Research and Policy Analysis Alicia Crouch and Chancellor Williams provided a PowerPoint to highlight the progress of the current plan.

Chair Stevens called for discussion, there being none, he moved to adjourn.

Regent Hamilton moved that the meeting adjourn. Regent Bogard seconded the motion.

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

The motion was approved unanimously, and the Board adjourned at 3:34 p.m. (ET).

KCTCS Board of Regents Chair James Lee Stevens called to order the meeting of the Kentucky Community and Technical College System Board of Regents at 8:30 a.m. (ET) on September 16, 2022. The meeting was held at the Kentucky Community and Technical College System Office, Versailles, Kentucky. The press was notified of the meeting on September 8, 2022. Hon. Pamela Duncan, KCTCS General Counsel, served as parliamentarian.

Chair Stevens asked if there were any corrections to the June 9-10, 2022, Regular Meeting Minutes or the August 30, 2022, Special Meeting Minutes. Regent Fletcher noted a typo on page seven of the regular meeting minutes.

The minutes were declared approved as corrected.

There were no changes or additions to the agenda.

Chair Stevens asked if there were any changes to the consent agenda, the Ratification of KCTCS College Candidates for Credentials. There being none, the agenda was approved as presented.

Chair Stevens moved to the next item on the agenda.

Chair Stevens asked KCTCS President Czarapata to give his presentation to the Board. President Czarapata introduced Hazard Community and Technical College President Dr. Jennifer Lindon and Southeast Kentucky Community and Technical College President Dr. Vic Adams to provide an update to the Board on the flood damage to their colleges.

President Czarapata introduced KCTCS Chief Marketing Officer Ms. Terri Giltner. Ms. Giltner provided a PowerPoint presentation to the Board on New Creative Marketing.

President Czarapata discussed with the Board the 2022 CPE Trusteeship Conference and the Kentucky Chamber of Commerce Events.

Chair Stevens called for discussion. There being none, he moved on to the next agenda item.

Chair Stevens discussed with the Board the ACCT Conference that he and some of the other Regents attended in July. Each Regent who attended provided a brief overview of their experience.

Chair Stevens asked KCTCS President Czarapata to introduce Ms. Malloy and Mr. Combs to present this agenda item. Mr. Combs noted that during the June 2022, Board of Regents meeting, the KCTCS Board of Regents requested KCTCS staff to review the procedure and report suggested recommendations of the procedure to the Board. Mr. Combs shared that the KCTCS College Business Officers reviewed the current policies to provide recommendations of either a percentage or a flat amount for budgeted board reserves.

KCTCS President Czarapata shared that no action would be taken on this agenda item at this meeting, discussion would take place and action would be taken at the December meeting.

After the presentation, Chair Stevens called for discussion. During discussion, the Regents asked if a portion of the reserves could be set aside for emergencies. Mr. Combs noted that would happen. Regents also asked how a three-month reserve would differ from a three percent reserve. Mr. Combs shared that a three percent

reserve would be much higher than a three month. Regents asked if the college foundations could begin seeking unrestricted funds.

Chair Stevens called for additional discussion, there being none he called for a recess.

The Board took a recess at 9:36 a.m. (ET) and reconvened at 9:50 a.m. (ET) 

Chair Stevens asked KCTCS President Czarapata to introduce Ms. Duncan to present this agenda item. Ms. Duncan shared that the Code of Ethics documents and procedure was shared on the Board of Regents TEAMS site for the Board to review and make comments. She shared that after the presentation today, any final edits will be made and presented at the December 2022 meeting for a vote.

Ms. Duncan asked each Regent to sign the current conflict of interest form in front of them and sign the annual Attorney General receipt of information form. She shared they should return the signed forms to her at the end of the meeting.

Chair Stevens called for discussion. During discussion, Regents asked if the KCTCS Presidents and Cabinet members had a code of ethics to follow. Ms. Duncan shared they are developing a policy for all Executive level staff to have a code of ethics to follow.

Chair Stevens called for discussion. There being none, he moved to the next agenda item.

Chair Stevens asked KCTCS President Czarapata to introduce Ms. Hillis to present this agenda item. Ms. Hillis gave a brief presentation on the benefits of changing the vesting schedule for KCTCS retirement plans. She shared after the presentation no action will be taken at this meeting, but it will be presented at the December 2022 meeting for a vote.

Chair Stevens called for discussion. During discussion, Regents asked where the money goes if an employee leaves KCTCS before they are vested. Mr. Combs responded by noting that the ten percent KCTCS invests stays with KCTCS, but the five percent the employee invests goes with the employee.

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

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 reporting guidelines and policies adopted by the KCTCS Board of Regents.

Chair Stevens called for discussion. During discussion, Regents noted that the data did not match the totals. Ms. Hillis shared that she would review the data and make the corrections. Chair Stevens called for additional discussion. There being none, he called for the amended motion.

Motion: Regent Fletcher moved, and Regent Heerdink seconded, that the KCTCS Board of Regents ratify the personnel actions listed in the agenda materials with the clarification of data.

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

The motion was approved unanimously.

Chair Stevens moved to the next item on the agenda.

RECOMMENDATION: That the KCTCS Board of Regents ratify the Student Election Procedures. 

Chair Stevens asked KCTCS President Czarapata to introduce KCTCS Chief of Staff Hannah Rivera to present this agenda item.

Ms. Rivera noted that the Board did not vote on the procedures at the June meeting because at the time it was believed to be an administrative policy. Having reviewed the newly revised bylaws, the Office of General Counsel feels this should be a Board policy since it addresses Board of Regents composition. The procedure was placed in the Virtual Workspace. No comments were received.

Chair Stevens called for a motion.

Motion: Regent Jackson moved, and Regent Heerdink seconded, that the KCTCS Board of Regents ratify the Student Election Procedures.

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

The motion was approved unanimously.

Chair Stevens moved to the next item on the agenda.

Risk Plan approved by the KCTCS Board of Regents Audit Committee on September 6, 2022. 

Chair Stevens provided information from the September 6, 2022, Audit Committee Meeting. He shared that Lance Mann from Dean Dorton provided the Audit Committee a presentation on the 2022-23 Internal Audit Risk Plan. He asked that the Board to review the agenda materials posted in OnBoard.

Motion: Regent Martin moved, and Regent Smith seconded, that the KCTCS Board of Regents approve the 2022-2023 Internal Audit Plan approved by the KCTCS Board of Regents Audit Committee on September 6, 2022.

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

The motion was approved unanimously.

Chair Stevens moved to the next item on the agenda.

The Board took a recess at 10:15 a.m. (ET) and reconvened at 10:27 a.m. (ET) 

RECOMMENDATION: The KCTCS Board of Regents approve the scope increase of $3,600,000 for the renovation of the Newtown Campus North Building at Bluegrass Community and Technical College (BCTC). 

Chair Stevens asked KCTCS President Czarapata to introduce Ms. Malloy to present this agenda item. Ms. Malloy introduced Bluegrass Community and Technical College President Dr. Koffi Akakpo and KCTCS Assistant Vice President Andy Casebier who assisted with the presentation.

Dr. Akakpo noted that the current authorization for the Newtown North Building Renovation is $12,400,000 which is being funded from KCTCS Agency funds. An Additional $3.6 million is being requested. $2 million in grant funds was secured through the Lexington-Fayette Urban County Government for Bluegrass Community and Technical College to be used for the construction of the Newtown North building project. The remaining $1.6 million will be funded from KCTCS Agency funds. The new requested budget for this project will be $16,000,000. Mr. Casebier shared that with projected rise in building materials, these funds are needed to complete the project.

MOTION: Regent Martin moved, and Regent Smith seconded that the KCTCS Board of Regents approve the scope increase of $3,600,000 for the renovation of the Newtown Campus North Building at Bluegrass Community and Technical College (BCTC).

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

The motion was approved unanimously.

Chair Stevens moved to the next item on the agenda.

RECOMMENDATION: That the KCTCS Board of Regents approve a capital project with a total scope of $4,500,000 for the Gateway Community and Technical College (GCTC) Mechanical Equipment Upgrades capital project. 

KCTCS President Czarapata asked Ms. Malloy and Mr. Casebier to present this agenda item.

Mr. Casebier noted that the current budget for the Gateway Mechanical Equipment Upgrades project is $4,500,000. The source of funding for the increase will be asset preservation bond funds in the amount of $3,913,200 and KCTCS agency funds in the amount of $586,800.

Chair Stevens called for discussion. There being none, he called for a motion.

Motion: Regent Jackson moved, and Regent Heerdink seconded, that the KCTCS Board of Regents approve a capital project with a total scope of $4,500,000 for Gateway Community and Technical College (GCTC) Mechanical Equipment Upgrades capital project.

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

The motion was approved unanimously.

Chair Stevens moved to the next item on the agenda.

RECOMMENDATION: That the KCTCS Board of Regents approve a capital project with a total scope of $5,000,000 for the Southeast Kentucky Community and Technical College (SKCTC) Mechanical Equipment Upgrades capital project. 

KCTCS President Czarapata asked Ms. Malloy and Mr. Casebier to present this agenda item.

Mr. Casebier noted that the current budget for the Southeast Mechanical Equipment Upgrades project is $2,000,000 which was approved at the June 10, 2022, Board meeting. The project is being increased by $5,000,000 with a new total budget of $7,000,000. The source of funding will be asset preservation bond funds in the amount of $6,087,200 and KCTCS agency funds in the amount of $912,800.

Chair Stevens called for discussion. There being none, he called for a motion.

Motion: Regent Girdler moved, and Regent Martin seconded, that the KCTCS Board of Regents approve a capital project with a total scope of $5,000,000 for Southeast Kentucky Community and Technical College (SKCTC) Mechanical Equipment Upgrades capital project.

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

The motion was approved unanimously.

Chair Stevens moved to the next item on the agenda.

RECOMMENDATION: That the KCTCS Board of Regents accept the written report of Dr. Czarapata’ s annual evaluation as presented by Regent Finan and discussed by the KCTCS Board of Regents Executive Officers. 

Chair Stevens asked Regent Finan to present her report to the full Board. Regent Finan noted that Chair Stevens, Vice Chair Martin, Secretary Fletcher, and Regent Finan met with President Czarapata on September 12, 2022, to discuss the results of the evaluation. She shared that the final report was in the Board materials for the meeting.

Chair Stevens called for discussion. There being none, he called for a motion.

Motion: Regent Martin moved, and Regent Heerdink seconded, that the KCTCS Board of Regents accept the written report of Dr. Czarapata’ s annual evaluation as presented by Regent Finan and discussed by the KCTCS Board of Regents Executive Officers.

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

The motion was approved unanimously.

Chair Stevens moved to the next item on the agenda.

RECOMMENDATION: That the KCTCS Board of Regents accept the 2022-23 Goals and Objectives for Dr. Czarapata as provided in Attachment A. 

Chair Stevens asked KCTCS President Czarapata to present this agenda item.

President Czarapata presented a preliminary draft of his Goals and Objectives to the Board at the June 2022 meeting and asked for feedback in further development of them. No comments or advice was received after the June meeting so after his presentation he asked for the Board to accept his Goals and Objectives for the upcoming year.

Chair Stevens called for discussion. During discussion, Regent Finan asked President Czarapata to include KPIs. President Czarapata noted he would add those to the Goals and Objectives.

Chair Stevens called for additional discussion. There being none, he called for a motion and a second.

Motion: Regent Jackson moved, and Regent Smith seconded, that the KCTCS Board of Regents accept the 2022-23 Goals and Objectives for Dr. Czarapata as provided in Attachment A with the addition of KPIs.

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

The motion was approved unanimously by those present to vote.

Chair Stevens moved to the next item on the agenda.

Regent Whitten moved, and Regent Greene seconded, that the KCTCS Board of Regents to enter closed session pursuant to KRS 61.8210(1)(c) and/or KRS 61.810(1)(f) at 11:03 a.m.

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

The motion was approved unanimously.

The KCTCS Board of Regents reconvened in closed session at 11:03 a.m. (ET).

Regent Jackson made motion, and Regent Smith seconded, that the KCTCS Board of Regents reconvene in open session at 4:21 p.m.

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

The motion was approved unanimously.

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

Chair Stevens moved to the next item on the agenda.

RECOMMENDATION: That the KCTCS Board of Regents approve the benefits delivered as part of the health benefits funded by the OPEB Trust approved by the Board of Regents in 2021. 

Chair Stevens asked KCTCS President Czarapata to present this agenda item.

President Czarapata noted that prior to the October 2021 Open Enrollment period for health insurance benefits, KCTCS made an administrative decision to increase the health benefits supplied to those retirees eligible to receive post-employment benefits pursuant to pre-2009 Board Policy and through payments made to the OPEB Trust. This decision was reported out to the Board at the September 17, 2021, KCTCS Board of Regents’ meeting and the Board subsequently took action to ratify.

He shared that the Board would need to approve to keep those benefits for the next year.

Chair Stevens called for discussion. There being none, he called for a motion and a second.

Motion: Regent Heerdink moved, and Regent Smith seconded, that the KCTCS Board of Regents approve the benefits delivered as part of the health benefits funded by the OPEB Trust approved by the Board of Regents in 2021.

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

The motion was approved unanimously by those present to vote.

Chair Stevens moved to announce the next meeting.

Chair Stevens announced that the next regular meeting of the KCTCS Board of Regents is scheduled for December 1-2, 2022, at the KCTCS System Office, Versailles, Kentucky.

Regent Martin moved that the meeting adjourn. Regent Whitten seconded the motion.

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

The motion was approved unanimously, and the Board adjourned at 4:27 p.m. (ET).