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Minutes of the Kentucky Community and Technical College System

Board of Regents Special Called Meeting

January 7, 1998

Video Teleconference

Meeting Opened

The Board of Regents of the Kentucky Community and Technical College System met at 10:00 a.m. (Eastern Standard Time) on Wednesday, January 7, 1998, by video teleconference at 10 sites in Kentucky. Martha Johnson, Board Chair, called the meeting to order.

Roll Call

The following members of the Board of Regents answered the call of the roll: John R. Banks, Richard A. Bean, Michael Hoseus, Martha Johnson, Cynthia L. Read, Marvin Russow, Donna Davis, Mark Powell, Bobby McCool, Chuck O’Neal, Jack Hanel, and Cindy Fiorella. Absent from the meeting were Lorna D. Littrell and Diana L. Lutz.

Members of the KCTCS administration and the general public were also in attendance. A quorum being present, Ms. Johnson declared the meeting officially open for the conduct of business.

Capital Projects Proposals to be Submitted to CPE

Mark Powell, chair of the board’s Finance, Administration and Technology Committee, reported that members of the Transition Team had met with the finance committee on Tuesday, December 23, 1997. After much discussion and consideration, the committee approved the capital construction proposals as submitted.

Dr. James Ramsey stressed the importance of this special meeting of the KCTCS Board of Regents because of deadlines imposed by the General Assembly. The Governor’s proposed budget will be sent to the printer this weekend and he will address the members of the General Assembly on January 20. The Governor is anxious to show his support of KCTCS by including the capital construction proposals in his speech. In addition, Dr. Ramsey said that he had heard from several legislators that they will not consider giving a lump sum to fund the proposals; they will only consider specific, individual projects.

Dr. Ramsey outlined the goals of the plan, emphasizing that whatever is approved must be considered with the mandates of House Bill 1, and listed three priorities:

    • Maintenance of existing facilities
    • Upgrading technical and information systems
    • Providing new construction that increases access

In an overview of events leading to the current capital construction proposal, Dr. Ramsey outlined events that occurred in November, including a CPE recommendation to provide

$50 million for new KCTCS construction projects and $4.25 million for KCTCS maintenance funds (to be matched by $4.25 million of KCTCS funds). At the same time, CPE set aside $25 million in new construction money for "access facilities to be identified by CPE as part of their ‘Access Plan.’ "

Dr. Ramsey then addressed the principles which dictated the construction allocation process. Four principles were followed:

    • Highest priority be given to those maintenance projects where failure to undertake in the next biennium will result in significantly increased costs in future years.
    • New capital projects should exhibit strong local support. It is recommended that one-third of the total project cost be funded by local sources. (Hazard and Madisonville projects were mentioned as specific examples of how this could work.)
    • New capital projects should represent collaborative efforts between Kentucky Tech and the UK Community College System. Additionally, KCTCS seeks to promote collaboration with other providers of postsecondary education through the design, planning and cooperative use of new facilities.
    • An effort to provide initial phase funding for as many projects as possible is encouraged. Priority should be given to those projects that can be constructed and implemented in phases.

Dr. Ramsey then outlined the three priorites:

  1. Maintenance

    A report from David Banks, president of Architects and Associates, and consultant to the Council on Postsecondary Education, outlined 32 maintenance recommendations at both Kentucky Tech sites and UKCCS sites, plus 14 Life Safety projects that should be funded with the $8.5 million. His total estimated cost was $9,491,000. Dr. Jack Jordan pointed out that four of the projects mentioned in Banks report had already been funded by UKCCS to an amount totaling some $860,000. That brings the total within reach of the budget.

  2. Technical and Infrastructure Needs

    Dr. Ramsey said that one of the most important aspects of the creation of KCTCS was to establish a technical and infrastructure that would meet the communication needs. At this time, there is no real estimate of the amount of time or money that will take. However, rough estimates are approximately $13.5 million and multiple years. The following was proposed to fund the project:

    $6.5 million – UKCCS

    $3.8 million – Office of the President (KCTCS)

    $1.5 million – CPE Access Fund

    $1.5 million – KCTCS Capital Construction Fund

    Dr. Ramsey also pointed out that KCTCS has no legal right to approve projects valued over $400,000 without approval from the legislature. He asked that this proposal be sent along with the other budget requests. Sandy Gubser reiterated that the Transition Team felt this was the number one priority, that it is essential if the system is to run efficiently and that if other projects had to be dropped, this one should be included.

  3. New Construction

Dr. Ramsey presented a list of 13 capital construction projects that would be presented to the General Assembly. This includes:

Hazard Community College Classroom Building – Phase II

Danville/Boyle County Regional Technical Training Center – Phase I

Central Regional Postsecondary Education Center (Elizabethtown) – Phase I

Madisonville Community College Science/Technical Classroom Building

Shelby County Regional Technology Center/Jefferson Community       College Extension – Phase I

Southeast Regional Postsecondary Education Center (London/Corbin) – Phase I

Somerset Community College/Regional Technical Center Academic Support/Technical Education Complex – Phase I

Clinton County Technology Center

South Regional Postsecondary Education Center (Glasgow) – Phase I

Kentucky Technical College of Arts & Crafts (Hindman)

Maysville Community College/Maysville Technical Training Center

West Regional Postsecondary Education Center (Hopkinsville)

Northwest Regional Postsecondary Education Center (Prestonsburg)

Dr. Ramsey pointed to two issues that should be addressed:

    • Management/oversight of the regional postsecondary education centers
    • Local match requirements

Following discussion, members of the board determined that the first issue – management – was a manageable issue. The institution responsible for the building would be determined by where it was located.

Dr. Ramsey said that he had heard about, but not seen, a letter written by Dr. Ed Hughes, spokesperson for the community college presidents, that expressed concern about the requirement that one-third of the total amount of the project come from local, private sources. Martha Johnson, who had received the letter, called on Dr. Hughes to outline the presidents’ concerns. Dr. Hughes said the problem was not that they could not accomplish the fund-raising efforts. In fact, many of the community colleges have just completed a successful capital campaign. The problem is the time factor. He said that it takes time and professional staff to be successful. He requested, on behalf of the presidents, that KCTCS ask the General Assembly for an additional $30 million, with the understanding that they be required to raise private funds following this biennium.

Dr. Ramsey responded that there are two ways this can be accomplished. They can go back to CPE for the additional $30 million, or they can approach the General Assembly directly for the funds. Dr. Ramsey observed that neither approach is feasible at this juncture in the process.

In response to the question about the time frame for raising the funds, Dr. Ramsey replied that the colleges would have two years. After that, the KCTCS board could ask CPE for an extension, or drop the project. Further discussion pointed out that projects would be prioritized by the success of the local funding. However, it was said that local support did not have to be cash. It could be land, property, services, etc. Approximately $8 million of the proposed $30 million needed to be raised locally has already been acquired.

Because of time limitations with satellite hookups, Martha Johnson was taken off interactive television at 12:00 noon (EST), and included in the discussion via speakerphone. She expressed her views on the issue prior to turning the meeting over to Vice Chair Michael Hoseus. Ms. Johnson felt that despite the uncertainty of securing private funds the board should approve the recommendations.

Chuck O’Neal moved that the recommendations of the Finance, Administration and Technology Committee be approved as submitted. John Banks seconded the motion. Mr. Hoseus called for an individual voice vote from each of the board members present. The vote was unanimous in favor of the proposals.

Update on Hay Group Development of Interim Personnel Policies

Representatives from the Hay Group presented a brief overview of the interim personnel policies. The point was made that, with the exception of new appeal procedures and payroll deduction policies, the recommendations only apply to new KCTCS employees – those hired after January 14, 1998 – and will be in effect until approximately July 1, 1998, when Kentucky Tech will join the System. New permanent policy recommendations will be presented in late spring. A more detailed report will be presented to the board at its January 14th meeting in Ashland.

Meeting Adjourned

There being no further business to come before the board, the meeting adjourned at 12:30 p.m.

Respectfully submitted,

 

 

 

_______________________

Cynthia Read, Secretary