[0:00] Region 30,

[0:03] Region 30, 226, virtual meeting. I'd like to welcome everyone. So, board members

[0:12] and staff are present, and we've got a couple of action items, and so I will let President

[0:24] and wait to sort of leave us in the east sky or vice president for them on these two

[0:31] action items.

[0:33] Right.

[0:33] I'm going to share my screen.

[0:34] We do have the two programs that we are proposing fees for.

[0:42] Let me get the right screen up.

[0:44] I'm just going to go through the memorandum and then I will show you guys the actual fee schedule

[0:48] so that you can take a look at that.

[0:53] All right.

[0:53] Are you able to see that screen?

[0:54] Okay.

[0:57] All right.

[0:57] So I had a accordance with institutional planning, you tosses some higher education expectations

[1:02] and ongoing operational review, UV Tech annually evaluates program fees to ensure alignment

[1:07] with our program delivery costs, student support needs, and long-term sustainability.

[1:12] The first one that we have is nail technician, we're really excited to get that up and going.

[1:16] We are proposing fees of $1,627.02 that equates to $180.78 per credit and this will cover the

[1:27] required supplies that students need.

[1:28] So as they enroll, they will have some kids

[1:31] with materials that they will need

[1:33] as they make their way through the program.

[1:36] This reflects very similarly what Mountain Land has.

[1:39] We really kind of try to model what they have as far

[1:44] as a structure, very similar to what the other schools

[1:47] that offer nail technician are doing as well.

[1:50] So that's the first one.

[1:52] The second one that we have is the electrical technician program.

[1:55] So because of the alignment, the electrical technician, electrical apprenticeship program,

[2:04] we needed to make that actually a program.

[2:06] It was a short term offering.

[2:08] We are modeling it just like the electrical apprenticeship program, electrical technician

[2:13] program.

[2:14] I'm sorry.

[2:14] Get those two mixed up.

[2:16] But the established program fees are the work proposing our 96 dollars.

[2:20] Again, this models almost exactly what we have in the current program.

[2:24] which is equivalent to $4 per credit, and again here fees will cover the required books, materials, and consumables necessary for a successful program completion.

[2:35] So I'm going to stop screen the screen and then I will share my second screen.

[3:01] All right, so I have these highlighted here.

[3:03] And again, for nail technician, we are proposing $1,627.2 with that breakdown of $180.78 per

[3:13] credit. So the total cost for the program to student would be $2,527.2. And then down

[3:21] here, this is where we had moved the electrical apprenticeship courses over to the program side

[3:27] due to alignment and so 96 dollars are the proposed fees and that models can see down here the

[3:35] electrical technician. So almost exactly $4 per credit for a total cost of $2,496.

[3:51] Any questions

[3:52] that I can answer for you guys?

[4:01] It's pretty straightforward to me so I mean it looks like we're

[4:04] just kind of aligning the nail technician to similar colleges.

[4:10] The other one I'm just in the

[4:22] We'll open it up for discussion. Is anyone have any questions or comments?

[4:31] President

[4:31] Wait, before we go, we'll take a motion on this. Is there any preferences to whether we need

[4:37] to separate these or whether we could just approve these by motion?

[4:44] in one month to approve.

[4:47] Just approving by motion together,

[4:50] we'll be great, Mr. Chair.

[4:51] This is updates to the fee schedule.

[4:56] All right, I'll open up for a motion to approve.

[5:03] Updates to the fee schedule for these two programs.

[5:08] How much?

[5:10] This is Greg on motion to approve the now technician

[5:14] and the electrical technician fee schedule change or fee, what do you want to call fee change?

[5:25] Opposition by Christy Garner.

[5:28] Let me go a second.

[5:30] I'll second.

[5:33] Second by Trustee McClellan.

[5:35] Any questions for a vote?

[5:38] Final questions.

[5:39] I should say.

[5:41] Seeing that, all those in favor say aye.

[5:44] Aye.

[5:45] any opposed?

[5:50] Okay motion carries.

[5:54] Thank you everyone. Yeah and and did you

[5:58] you saw Emily Wells's comment? She just did it by chat her vote.

[6:08] Oh we

[6:16] have that.

[6:17] Okay sounds good. Thank you Trustee Wells. What else do we have? The agenda was

[6:25] everything, right? Just one more item, the property item. Oh, that's right. We get the agenda

[6:33] back up on the screen. Please.

[6:49] Okay. President, wait and Vice President Johnson, please walk us

[6:55] through the updates to the fail of real property. All right, wonderful. Appreciate that, Mr. Chair,

[7:01] and we'll be brief. It's been most of the time handing us off the Vice President Johnson.

[7:06] and as we discussed in the last board meeting, the probability and potential of selling some

[7:14] of UB Tech's real estate property.

[7:18] And Vice President Johnson has done a great job of doing an analysis and a visit with some

[7:23] relicers to give you a look at potential opportunities here and potential prices as well as potential

[7:35] values of investment relative to retaining and or selling that in real cash so

[7:41] with that I'll turn the time to him and then we'll kind of wrap it up at the

[7:45] end with our recommendation.

[7:48] Thank you President and thank you Trustee

[7:50] Koch. Happy New Year's Eve. I've already said that to a few of you. It's always

[7:57] wonderful to have a new year on June 30th as we close up our fiscal year. So

[8:03] thank you for being here. We'll be brief but just I just want to go over

[8:07] our portfolio of properties that we have and some brief analysis and then you

[8:18] view our recommendation and turn it back to you probably turn it back to

[8:22] present-weight to wrap it up but all right so you be tech-owned seven individual

[8:29] residential properties I guess the zoning can be a little bit different on a few

[8:34] of them, but essentially their residential neighborhoods where we were going to build

[8:39] the construction program would use to build homes on the residential properties.

[8:46] Since we are no longer doing that,

[8:50] we've been looking at different ways to use those

[8:54] properties to the benefit of UV Tech and its students in the community.

[9:00] So we're going to dive into the Roosevelt properties first, just like you know where

[9:03] their app. The addresses of them. So this is a snippet of Google Maps. So for reference,

[9:12] here's the Burger King Maverick, 191 Stoplight. And then you go this way, you know, what,

[9:23] South East of that is where our properties are located. First one's on 350 North Polkow

[9:31] drive, and then 701 South Harrison Avenue and 710 South five hundredies. Those

[9:39] properties are next to each other.

[9:46] And the four properties on in the

[9:48] Bernal community, Bernal City. So there are four properties there, and the first

[9:55] pair are located in the same subdivision, and we'll be looking at those there on

[10:01] the left-hand side. And those are located west of Cal Ranch, or Northwest of

[10:06] Walgreens. If you were looking at them, but how you'd get there is trying to

[10:11] light up Walgreens and KFC in order to lay there or come down from north from

[10:17] the college. That's a 1469 West 250 South and 1363 West 300 South located in a

[10:27] similar neighborhood. In the other pair I had to split up the Google Maps snippet, but

[10:37] But they're located just north of the Uintah County Library, about a block, up 200 north.

[10:45] So 200 north, 143 east, it's the eastern property and then the one to the west, 216 north,

[10:52] 100 east.

[10:54] That's where all of, it's an overview of our residential property portfolio and so a few

[11:01] three months ago, I just asked to do some analysis on these properties on a bi-hold basis.

[11:10] In order to do that, I just needed to come up with some key assumptions and get some more

[11:14] information from people who know more about this than I do at times, especially in the

[11:20] real estate world.

[11:22] So, I found that I reached out, maybe tech consulted with a well-respected brokerage firm

[11:30] to discuss different scenarios, and based off those discussions, it was apparent to me that

[11:37] about a 5 to 10 percent annual returns considered reasonable for you to be for the UN Basin.

[11:45] One

[11:46] other thing that came out is two of the properties, two of our Roosevelt properties have an advantage.

[11:51] The properties are zoned for multi-unit housing, though if the board elects to sell some

[11:57] and hold others these properties may yield a large return.

[12:00] And

[12:03] then on the cash side, as presented in the March 2026 board meeting, we discuss different investment methods that we have available to us, which are not many.

[12:18] So PTIF is what we use currently and that means all the requirements for our investing.

[12:27] And over the past 13 years, the average is around 2%, with a high of about 5 and a low

[12:33] just around 1%.

[12:36] And these are on our operating cash reserves, so it's like our bank account, or similar

[12:41] to a bank bank.

[12:43] And Pete just stands for the Public Treasure Investment Fund, and governments have access to this

[12:52] pool.

[12:52] It does generate a better than a bank account interest rate.

[12:59] So some pros to selling and discussing, and most of you probably already know this,

[13:03] but just to be thorough, pros to selling you be tech could have a greater flexibility

[13:09] to reinvest into college infrastructure, capital improvements, and scholarships.

[13:13] And we would avoid any, avoid downturn in the economy and being stuck.

[13:24] So we have greater flexibility.

[13:26] Proced to holding, obviously, 5% to 10% is much greater than 2% to 5% to 4%.

[13:32] So you'd be tackled lightly, experience a larger return on investment, a likely larger return on investment by holding real estate,

[13:42] capitalizing on market appreciation at a future date.

[13:51] And this is just a very

[13:52] hypothetical analysis. I think most of our brains are already computing, you know,

[14:01] the difference between two and 9% or four and 9%. So obviously the return is

[14:07] going to be greater on the on the property side of things with our limited

[14:12] investment options. But just for illustration purposes, I just picked 50,000, 75,000,

[14:20] 100,000 just to give some illustration. So we also ran it for a three-year and a five-year

[14:31] future returns. So just to go through, I'll pick just a couple of lines. So a three-year

[14:38] assuming we sold it at $50,000 let's say and we're not really talking about real

[14:46] real surface either but $50,000 a 2% return in three years would generate

[14:52] somewhere around $53,000 and a 5% let's say we sold our property in three years.

[15:00] If a 5% year-over-year appreciation would be 57, 8, almost 58,000. Five years, obviously that

[15:10] grows and continues to escalate. You would look at a $75,000 property sale in the current year.

[15:22] We'll say we just saw that it'd be at a 4% return, 91,000, and on a 9% return year over a year and five years.

[15:30] All assumptions and hypothetical, of course, $115,000 would be a likely return.

[15:39] For those of you who have been in the UN based and long enough, frankly, anywhere, but the UN based and does it have a little bit more exposure to market ups and downs.

[15:51] And any given year that 9% may not have been realized.

[15:56] So in UL, I thought we were very well aware of those risks and I guess that is the con of

[16:07] holding property, but the con of cash is really limited in our investment options.

[16:14] But they are very, very secure and very consistent.

[16:21] Are there any questions up through this point?

[16:23] Are properties or were any analysis that I think hypothetical analysis has been done?

[16:31] I do have a question if I could.

[16:33] Yeah, trust you, Ron.

[16:37] We've talked, you've shared some of this with us and we talked a little bit about it previously, but

[16:41] What is the value of the cash itself to the organization versus investing it towards

[16:53] future growth in either of these vehicles?

[16:59] Yeah.

[17:00] I'll give you just my take and then President.

[17:04] I'll turn it to you to wrap it up or add anything to it.

[17:08] It's really just flexibility and ability to fund any projects that that we see that would improve the improve our mission, our ability to deliver education or meet labor market needs.

[17:25] So having the cash on hand would make us more flexible when we able to do that.

[17:31] Yeah I'll chime in right there and I think that's a wonderful question Trustee Ryan and that's

[17:38] something the board needs to kind of play this while we did talk and we have talked a little bit about

[17:44] bringing a recommendation in September to the board meeting about what to do with our post building

[17:50] that recommendation will be coming that we do some remodeling there so if we do sell properties and

[17:56] do realize cash that obviously helps us have some dollars to invest in those types of

[18:02] infrastructure projects. The other value that could be there is if the board elected to take

[18:07] those funds and put those into a nudie scholarship. We actually have the ability to invest scholarship

[18:14] dollars at a little more aggressive rates because that goes into a different bucket. That being said

[18:23] And that is the advantage of the cash.

[18:28] We do feel like that cash could be beneficial at times but also at times it's kind of

[18:35] do we want to stick all of our eggs in one basket or do we want to diversify it and liquidate

[18:39] some and then keep some from later depending on how the market goes.

[18:44] So that's kind of how you'll see our recommendation come forward here is that we split, we liquidate

[18:51] some and we also retain some so if you'll hit the next slide there Jason if you

[18:57] don't mind so recommendation that that I would make to the board and the board

[19:03] can do whatever they would like and we will do exactly what the board would like

[19:06] us to do but I would recommend that we liquidate one of our properties in

[19:14] Roosevelt but one that is not zoned for multi-use housing and turn it into cash

[19:20] and I would recommend that we liquidate two of our properties in Vernal and the ones over behind Cal Ranch and turn those in the cash.

[19:28] The other four properties that I recommend retain, I believe that the value of real estate inflation over time, I don't think we get hurt at all.

[19:40] I think it's as good as having cash in the bank that we can liquidate at a future time when we need it or want it.

[19:45] But I think those values probably outpace our need for cash, I guess is what I'm saying.

[19:54] So there's the one on Polkwood Drive, I'd recommend that we liquidate that, and then over

[19:58] in Burl, we recommend that we liquidate those.

[20:02] It's also, you know, could liquidate all of them if we want to, or we could do any combination

[20:11] that you would choose.

[20:12] a

[20:19] few questions. So we haven't done any formal appraisal. These are

[20:26] going to be true.

[20:27] Yes. The ones you've seen up there on the screen today are just hypothetical.

[20:32] The formal appraisals that we have done that you all saw last board meeting,

[20:38] that's what was shared with us by the appraiser.

[20:44] It's hard to know whether those are ultra conservative appraisal values

[20:48] or if they're pretty accurate, the brokerage firm we visit with felt like that

[20:56] their residential properties were reasonably accurate. They also felt like the

[21:03] comps and appraisal values for the multi-housing units are probably a little

[21:07] light, feels like there's a little more value there. Yeah, so my second question is

[21:13] It's just that you'd kind of have your analysis on kind of holding those proper

[21:22] trustee

[21:22] Ryan just kind of asking like, what does that look like compared to putting that money

[21:30] all of it into a march?

[21:33] And I guess one, I think that would be kind of worth trying to see you understand.

[21:39] But two, I'm also kind of curious, that's kind of where you would kind of see any cash

[21:49] funding going towards whether it would be the renovation that you mentioned, something

[21:54] that can help in that, that seems like a pretty big project where we're trying to get this

[22:03] in a more aggressive sort of investment fund types of area.

[22:11] I think, Mr. Chair, I would say from our perspective, if we liquidate and have cash, we definitely

[22:19] will be making recommendations to the board to use some of that cash in the remodel for

[22:24] sure.

[22:25] The challenge we see there, and we'll you go back, Jason, to the slides on the PTIF, and

[22:32] And I want to make sure we're helping everybody understand this.

[22:36] Clearly, if we sell these properties and keep that in cash,

[22:43] the only investment opportunity we have really is in the PTF account.

[22:48] So those two to 4% rates are really what we would be earning on that cash.

[22:56] That's if it's retained for infrastructure.

[23:00] If we move it into scholarships, that's a little different ball game for us.

[23:06] But I don't know that I would recommend moving that money into scholarships.

[23:11] I guess I'd say that the value of that liquidating that real property,

[23:15] I think we ought to stick that back into the capital facilities needs

[23:20] that we have no matter what we do.

[23:23] President, as it relates to the cash then, so if

[23:33] you're holding cash, at some point it has to

[23:36] be invested in the PTIF. I'm guessing you can't just hold cash. I don't understand all of that,

[23:43] so that's partially why my question maybe wasn't as, didn't have the clarity that it could have had,

[23:51] But if you invest cash in the PTIF, are there requirements for it to stay in for certain periods of time?

[24:01] Can it be moved in and out of that fund as needed?

[24:05] What can you help us understand that a little better?

[24:08] Yeah, Jason, you want to kind of walk everybody through that?

[24:11] Yeah, the PTIF, the way it's set up is to really be used for operational.

[24:17] We could put it in one day and pull it out the next and put it right back in. It's it's essentially a bank account that earns a little bit better

[24:24] rates as all the governments in Utah combine their

[24:29] their funds into this pool to generate

[24:34] marginal

[24:35] improvements over like a

[24:38] local bank would give us

[24:42] That's very helpful. Thank you. I appreciate that. Yep.

[24:47] Any other questions from the board?

[24:50] I just have a book one, this is Gina, again, any expected use of the properties, like

[25:01] for development for the benefit of the UBTEC, and we will regret selling these because

[25:08] we'll need to expand in some area in the future.

[25:13] and I bring this up, we just went through a similar thing with USU, selling some property and it's just, it's not common for institutions to sell property.

[25:26] Just a

[25:30] question.

[25:32] That's a great question, Trustee Gagan.

[25:36] In this regard, these lots where we feel like they're not continuous to college property anywhere.

[25:43] At least these three, we feel like are good investments to sell.

[25:47] I think there is good reason for us to pause on the other four for a minute and I'll give

[25:52] you the reasoning for that.

[25:54] The two lots over in Vernal are, I believe, now they have their zoning has changed and

[26:00] that opportunity could change.

[26:03] You know, potentially the college could invest in some type of a, either sell the real estate

[26:10] We were invested in some type of entrepreneur ship area that we could find approval for.

[26:19] I think that could make some sense.

[26:21] The other two multi-housing lots here at Roosevelt, I just think because they're multi-housing

[26:27] unit lots and multi-housing is kind of the direction of where things are going.

[26:33] I think there's definitely some increased value in that.

[26:36] But as far as a classroom or a lab space or anything of that nature, it would not be used for that.

[26:54] Great. Thank you.

[27:00] We sell the non-potential commercial properties that you're recommending.

[27:08] Where would you recommend these go to again?

[27:13] Yeah, so I'd recommend these go to PTF and we look at it and put that right in the PTF account.

[27:27] For me, just a comment, I value money, cash working for you while you're sleeping.

[27:35] I, you know, real estate is a higher end institution. I struggle a little bit with putting our hopes

[27:45] into the market in the real estate, and I think your recommendation is good today, but I

[27:53] would just caution about missing opportunities to get in the market right now, some of those

[28:02] properties that I think would probably sell quicker than these that they sit out here for

[28:09] a while.

[28:09] I don't know.

[28:10] maybe there's, I don't know, I have a look at these properties, maybe there's a need for housing or

[28:22] I'm just in favor of investing so that's just me but we don't have any other questions.

[28:30] I think we can take this recommendation to vote.

[28:34] I just have one quick question, Chair Kudsch,

[28:45] just realtor fees, we mentioned those, Jason.

[28:52] How much?

[28:53] Just curious.

[28:56] Yeah, we had a discussion with the brokerage firm and this broker has been instrumental

[29:05] and that's having properties.

[29:09] President, I hope I'm not saying too much, but anyway.

[29:13] No, I don't think you are at all and I'm happy to share.

[29:16] So the brokerage has said they'll sell the property

[29:20] for no fee at all.

[29:22] And they've done that for us in the past.

[29:25] It's a longstanding relationship we've had with them.

[29:28] They have sold properties for us back

[29:31] when we were building and selling

[29:33] and didn't charge us any brokerage fee at all.

[29:36] More of a community service to the college,

[29:38] so we feel very grateful for that.

[29:42] And that's regardless whether we sell one or sell seven.

[29:47] It's just, they're happy to bring that for us.

[29:51] Which makes it easy for us as far as all of the advertising

[29:56] because it's simply...

[30:00] Everybody can bid on the property, and we'll be bringing it back to the board. Board can make the decision on what they want to accept, and then we'd go from there, but there would be no fee on top of that. That's what they're communicating to us.

[30:16] That's a great question. Thank you, Trustee McClellan. Can we go to the slide where the recommendation is? Let me get that.

[30:25] The

[30:28] president's camera is recommending a diversified approach. Liquidate two properties in Bernal, one property in Roosevelt.

[30:35] about, have those cash

[30:40] resources go towards P-TIF.

[30:42] Wanted to see if there was any other questions or comments

[30:47] or concerns for the board for we take this note.

[31:06] That said, there are no other questions or comments.

[31:11] I'll open the floor for a motion to approve liquidating

[31:19] the two properties in Bernal and one property.

[31:21] it grows a belt for cash resources to give it towards the PTIF.

[31:37] I'll make the motion to sell the

[31:40] properties recommended and hold the rest and put the proceeds towards PTIF. Okay we have a motion

[31:48] that Tim on phone who is that? Ben already sorry. Okay thank you Ben. Take a second.

[31:57] I'll second.

[31:59] by Trustee Ryan. Any questions before we go to the final questions?

[32:09] I see none. All those in favor say aye.

[32:12] Aye.

[32:15] Well, let's see us. Any opposed?

[32:22] Motion carries. All right. Thank you very much, everyone.

[32:27] let's present or his cabinet have any other comments I'll open the floor for a

[32:36] motion to do adjourn. Chair I have one small comment just for Pam just so that Pam

[32:46] hopefully you're seeing that chat with Emily Wells with her votes.

[32:56] Okay I'll

[33:01] Make a motion. We adjourn. Okay, motion by them. Thank you a second. Second by Trustee McCullough and all those in favor.

[33:11] All right. Hi.

[33:15] Opposed. All right. Thank you, everyone. I think we made some progress tonight.

[33:20] You guys have a great evening. We'll see you all. Appreciate it very much.

[33:23] Bye.

[33:25] Happy 4th of July.

[33:26] Yeah.

[33:27] 4, 2, 1.

UBTech Board of Trustees

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