Board Policies

Board of Directors' Governing Process Policies

GOVERNANCE PROCESS

GP 1: BOARD MISSION AND VISION STATEMENT
Approved: November 14, 2012

Mission - Central Oregon Community College promotes student success and community enrichment by providing quality, accessible, lifelong educational opportunities.

Vision Statement - To achieve student success and community enrichment, COCC fosters student completion of academic goals, prepares students for employment, assists regional employers and promotes equitable achievement for the diverse students and communities we serve.

GP 2: GOVERNING STYLE
Approved: July 13, 2011 Revised: 12/9/2015

The board will be actively involved in the governance of the college, being proactive rather than reactive, staying adequately informed on relevant issues and approaching its task with a style which emphasizes outward vision rather than an internal preoccupation, encouragement of diversity in viewpoints, strategic leadership more than administrative detail, clear distinction of board and staff roles, collective rather than individual decisions and an orientation towards the future while respecting lessons from the past.

More specifically, the Board will:

1. Operate in all ways mindful of its civic trusteeship obligation to the citizens of its district.
2. Enforce upon itself whatever discipline is needed to govern with excellence. Discipline will apply to matters such as attendance, policy making principles, respect of roles, speaking with one voice and adherence to ethical practices.
3. The Board will keep adequately informed about relevant global, regional and local educational and other issues, actively gathering information to fulfill this role.
4. Direct, control and inspire the organization through the careful establishment of the broadest organizational values and perspectives through written policies.
5. Focus chiefly on intended long term impacts on the world outside the organization (ends), not on the administrative or programmatic means of attaining those effects.
6. Be an initiator of policy, not merely a reactor to staff initiatives. The board, not the staff, will be responsible for board performance.
7. Use the expertise of individual members to enhance the ability of the board as a body, rather than to substitute their individual values for the group's values.
8. Monitor and regularly discuss the Board's own process and performance. Insure the continuity of its governance capability by ongoing training and review:
1. Self-monitoring will include at least a biannual comparison of board activity and discipline to its Governance Process and Board-Staff Relationship policies.
2. Ongoing training will include orientation of new members in the Board's adopted governance process and periodic Board discussion of process improvement.
9. Be accountable to the general public for competent, conscientious and effective accomplishment of its obligations as a body. It will allow no officer, individual or committee of the board to usurp this role or hinder this commitment.
10. Acting as a committee of the whole, the Board shall perform the functions of an Audit Committee including:
1. The appointment and establishment of the compensation of any public accounting firm employed by the College in connection with the attest function.
2. Establishment of procedures for:
   i. The receipt, retention and treatment of complaints received by the College regarding accounting, internal controls and auditing matters.
   ii. The confidential, anonymous submission by employees regarding questionable accounting or auditing matters.
3. The appointment, compensation and oversight of independent counsel or other advisor as deemed necessary to carry out its audit duties.
11. Unless otherwise specifically delegated by the Board, the Board shall have sole responsibility for appointment of legal counsel or real estate agencies that represent the College in whole, any College department or College unit. No college funds including resources collected through student fees or other program or department fees may be used for legal counsel or real estate representation without prior approval of the Board or designee.
    
    * Any legal representation available to the College that may be a related benefit from college departments, or college unit membership in regional or national organizations shall be coordinated through the college legal counsel approved by the Board.

GP 3: BOARD JOB DESCRIPTION
Approved: June 9, 1993 Revised: December 9, 2015

The job of the board is to make certain contributions which lead the organization toward the desired performance and assure that it occurs. The board's specific contributions are unique to its trusteeship role and necessary for proper governance and management.

Consequently, the contributions and responsibilities of the board shall be:

1. To serve as the link between the organization and its many stakeholders and constituents (this occurs through board meetings, committee meetings, formal college events and day-to-day communication with the public).
2. To develop and abide by written governing policies.
3. To approve the annual budget.
4. To assure Presidential performance.
5. To be an active and engaged Board member - attend Board meetings and functions, participate on one or more committees, and take the initiative to be informed to make good decisions (i.e. communicate with staff through the President).
6. To participate in legislative and public policy activities (through testifying, lobbying and taking positions as appropriate).
7. To provide oversight of financial resource development.

GP 4: CHAIRPERSON / VICE-CHAIRPERSON ROLE
Approved: June 9, 1993
Revised: March 13, 1996; December 9, 2015

The role of the Chair is, primarily, to ensure the integrity of the Board's process and, secondarily, occasional representation of the Board to outside parties. The Chair is the only Board Member authorized to officially speak for the Board (beyond simply reporting Board decisions), other than in rare and specifically authorized instances.

1. The outcome of an effective Chair is that the Board behaves consistent with its own policies on governance and Board/staff relationship and those legitimately imposed upon it from outside the organization.
1. The Chair is responsible for reviewing the Board meeting agenda and facilitating the Board meetings to ensure the Board remains proactive, forward looking and value-added in its deliberations.
2. Meeting discussion content will only be those issues which, according to Board policy, clearly belong to the Board to decide, not the President.
3. Deliberation will be timely, fair, orderly and thorough, but also efficient, limited to time allotted and kept to the point.
4. The Board's policies concerning individual and group behavior will be enforced appropriately.
2. The authority of the Chair consists of making and/or carrying out decisions on behalf of the Board. This authority extends to all decisions which fall within and are consistent with any reasonable interpretation of Board policies on Governance Process and on the Board-President Relationship, except where the Board specifically delegates portions of this authority to others.
1. The Chair is empowered to chair Board meetings with all the commonly accepted power of that position (e.g., ruling, recognizing, etc.).
2. The Chair has no authority to make unilateral decisions about policies and no authority to individually supervise or direct the President.
3. The Chair may represent the Board to outside parties in announcing Board-stated positions and in stating Chair decisions and interpretations within the area delegated.
4. The Chair may call special meetings as required.
3. The Vice-Chair will assume responsibilities of the Chair in the event of Chair's absence or inability to serve.
4. The Chair and Vice-Chair of the Board will be elected at the Annual Meeting in July.
5. The selection of the Chair will be based on the following factors:
   Desire, leadership ability, availability of time to complete the obligations of the job, experience relative to the goals/opportunities for the college in the ensuing year, and zone representation.

It is generally anticipated that the Vice-Chair will succeed the Chair in the following year if the criteria for the Chair can still be met.

GP 5: BOARD COMMITTEE PRINCIPLES
Approved: June 9, 1993 Revised: December 9, 2015; March 10, 2021

The Board may establish committees to help carry out its responsibilities, subject to the following:

1. Purpose. The purpose of committees shall be:
   1. To tap the special talents, skills and knowledge of individual Board members;
   2. To develop knowledge and skills to more ably consider specific issues in the committee’s areas of expertise;
   3. To educate the full Board on particular issues or subjects within the committee’s areas of expertise;
   4. To divide the work of the Board into manageable sections;
   5. To provide counseling and advice to the Board; and
   6. To handle specific tasks assigned by the Board.
      
      
2. Guidelines. All committees shall operate under the following guidelines:
   1. Committees do not speak on behalf of the Board;
   2. Committees do not act on behalf of the Board;
   3. Committee recommendations to the Board shall be based upon a vote or consensus, with a majority ruling;
   4. Committees shall remain focused on the specific issues/tasks assigned by the Board. If a committee wishes to consider additional issues or tasks, it shall first seek approval for the whole Board; and
   5. Committees shall not deviate from Board directions.
   6. Committees shall be subject to public meetings and records law in the same manner as regular Board meetings, including all laws regarding public notice, requirements around open meetings, minute taking and record keeping obligations, and requirements associated with recording.
      
      
3. Annual Review. The Board shall do the following each year with respect to all committees, which it may do at the annual meeting, at a retreat, or at a regular meeting:
   1. Evaluate the need for each existing committee;
   2. Consider whether any additional committee(s) is/are needed;
   3. Review and consider whether updates are needed to any committee’s charge; and
   4. Evaluate the effectiveness of each committee.
      
      
4. Committee Chairs. Each committee chair shall seek to do the following:
   1. Involve all members in committee meetings and work;
   2. Leverage the particular skills/knowledge of individual members;
   3. Clearly define and remind committee members of the specific jobs or goals established by the Board to keep the committee on task;
   4. Help identify and coordinate outside assistance and college liaisons that would be helpful or necessary to the committee completing its work; and
   5. Assist the board in annually evaluating the effectiveness of the committee.
      
      
5. Committee Membership; Consultants.
   1. Only Board members may serve as voting members of Board committees, except as otherwise required by applicable law or applicable contracts.
   2. However, as the Board or committees may determine, a committee may have one or more College liaisons.
   3. Each committee shall consult with such third parties, within the College and outside, as it deems reasonably necessary to effectively and efficiently complete its work; provided, however, no committee shall hire any outside expertise without the approval of the whole Board.

GP 6: COMMITTEE STRUCTURE
Revised: December 8, 2010; December 9, 2015; September 8, 2021; September 19, 2023

The COCC Board will have eight standing committees with members and chairs appointed by the board chair. Additionally, the board chair will appoint members of the board to serve as liaison to non-board committees and outside organizations. The board chair will use reasonable efforts to consult with each board member prior to making an appointment. Appointments will be made at the annual organization meeting of the board, or as necessary due to unexpected vacancy.

Unless otherwise noted below, each committee appointment shall be for a period of one year, and members may serve more than one term.

Board Committees:

1. President Evaluation – This committee consists of three board members who will adopt an annual performance review policy, instrument, and procedure in collaboration with and mutually agreed upon by the president. The committee will gather agreed upon data/information, facilitate the evaluation discussion with the Board, and discuss the evaluation results with the president. 
2. Board Self-Evaluation– This committee consists of three board members who will oversee the board’s Self-Evaluation, including reviewing the process used for evaluation, gathering necessary data/information, and facilitating the evaluation discussion with the full board.
3. COCC Memorial Education / Keyes’ Trust – This committee consists of one board member (serving a renewable, two-year term) and the president. They annually determine how best to spend earnings from Keyes Trust investments in compliance with the instructions of the Trust.
4. Audit and Finance – This committee consists of three board members and two budget committee members and meets at least twice annually to do the following: 1) review external and internal audit plans and results prior to their submission to the board as a whole; 2) report to the board its findings and opinions regarding internal and external audit results; and 3) recommend specific areas of future internal and external audit focus for consideration by the full board.  The president and designated staff serve as ex officio.
5. Real Estate – This committee consists of three board members who review all material real estate plans, purchases, sales, and changes. The committee makes recommendations to the full board about all material real estate matters.  The president and designated staff serve as ex officio.
6. Student Success – This committee consists of three board members who recommend Institutional student success indicators to the full board and monitor longitudinal Institutional student success data. The committee also may monitor and review other institutional measures of student success and initiatives undertaken to improve student performance.  The president and designated staff serve as ex officio.
7. Policy Review – This committee consists of three board members who review and recommend revisions to policies of the COCC Board of Directors, including those related to the Governance Process, Board-President Relationship, and Expectations of the President. The president may be invited to attend as an ex officio.
8. Board Member Orientation – This committee consists of 3 board members who create, review, and adjust the plan for orientation of new board members. The committee will meet at least yearly to review and update the orientation plan. The president and designated staff serve as ex officio.

Board Liaison Roles:

9. College Affairs Committee – One board member serves as an ex officio member of the college’s committee to adopt, revise, and sunset general college policies.
10. COCC Foundation Board – One board member serves as an ex officio member on the board of the COCC Foundation, which provides funds for scholarships and capital improvements, cultivates relationships with stakeholders to support COCC and its students, and develops programs that foster COCC student success.
11. Oregon Community College Association – Along with the president of the college, one board member serves on the governing board of the Oregon Community College Association, whose purpose is to support the colleges before policy-makers and partners whose actions affect the well-being of community colleges across the state. Each College has one vote on the board.
12. OSU-Cascades Advisory Board – One board member, recommended by the COCC Board of Directors and approved by the OSU president, serves on this board, which provides an opportunity for alumni, friends and community members to deepen their engagement with OSU-Cascades, and for the vice president of OSU-Cascades to gain advice and support.
13. Association of Community Colleges & Trustees – One board member attends the annual ACCT Conference as a voting delegate. If the board chair is in attendance, that person will have the college’s voting rights.

All other board committees will be established on a designated or ad hoc basis, with a specific charge, and timeline for completion.

GP 7: BOARD PLANNING CYCLE
Approved: June 9, 1993
Revised: June 13, 2001; December 9, 2015

To accomplish its goals with a governance style consistent with Board policies, the Board will utilize a planning cycle which typically starts with a Board Retreat in the summer and/or fall and continues through the year, taking into special consideration if there is an upcoming legislative session.

Topics to be covered include, but are not limited to: long-term financial health of the institution, strategic planning, master plan update, facility maintenance review, student success measures, new programs, and review of Board policies.

Board members will also be encouraged to identify those areas of education and training needed to increase their knowledge and effectiveness in future deliberations.

GP 8: BOARD MEMBERS' CODE OF CONDUCT
Approved: June 9, 1993
Revised: February 8, 1995; December 9, 2015

Given the role that a Board member plays, and the fact that they are often seen as the "face" of the institution, the Board expects at all times that its members will exhibit ethical and professional conduct. This commitment includes proper use of authority and appropriate decorum in group and individual behavior at all times.

1. Board members must represent unconflicted loyalty to the interests of the stakeholders and constituents. This accountability supersedes any conflicting loyalty such as that to advocacy of interest groups and membership on other boards or staffs. This accountability supersedes the personal interest of any Board member acting as an individual consumer of the organization's services.
   
   
2. Board members must avoid any conflict of interest with respect to their fiduciary responsibility.
1. There must be no self-dealing or any conduct of private business or personal services between any Board member and the organization except as procedurally controlled to assure openness, competitive opportunity and equal access to information.
2. Board members must not use their positions to obtain employment in the organization for themselves, family members or close associates.
3. Should a Board member be considered for employment, s/he must temporarily withdraw from Board deliberation, voting and access to applicable Board information.
3. Board members may not attempt to exercise individual authority over the organization except as explicitly set forth in Board policies.
1. Board members' interaction with the President or with staff must recognize the lack of authority in any individual Board member or group of Board members except as noted above.
2. Board members' interaction with the public, press or other entities must recognize the same limitation and the similar inability of any Board member or Board members to speak for the board.
3. Board members will refrain from making any public remarks or disparaging comments about the President or staff that could damage the college's reputation.
4. Board members will be reimbursed for all Board/college-related travel; however, the college does not pay meals, lodging, or other costs for family member(s) who may accompany the Board member unless circumstances are pre-approved by the Board Chair.

GP 9: BOARD OPERATIONS
Approved: June 9, 1993
Revised: March 13, 1996; November 14, 2001; December 9, 2016; September 8, 2021

The Board will operate in a consistent manner, following the policies detailed herein, and, unless otherwise noted and/or subject to applicable law, adhere to these operational proceedings:

1. The Board will meet on the second Wednesday of each month, normally at 5:45 p.m. in the Christiansen Board Room of the Boyle Education Center on the Bend campus. When the chair deems it necessary or advisable to reschedule the time or date of a regular meeting, the chair may do so, in consultation with the president and the remainder of the Board. Reasons for rescheduling may include, but are not limited to, assuring quorum, accommodating other College needs for the Board Room, and avoiding conflicts with holidays or community/College events. The chair may upon his or her own motion, or at the request of three members of the Board, by giving notice to all members of the Board and the public call for an emergency meeting or special meeting of the Board; provided, however, special meetings must be called and noticed at least 24 hours prior to the holding of the special meeting. All meetings of the Board will be called, noticed, and held in accordance with the rules of the Board, ORS Chapter 341, and Oregon’s Public Meetings Law.
2. To foster equitable participation by all Board members and to facilitate efficient and effective meetings, the Board shall generally follow Robert’s Rules of Order in the conduct of meetings.
3. At the annual organization meeting, to be held as part of the regular July Board meeting, the Board shall elect a chair and a vice-chair. The vice-chair will serve as chair-elect, with the expectation, but not the obligation, of becoming chair. No vice-chair is required to subsequently serve as chair, and the Board has no obligation to elect a former vice-chair as chair. The vice-chair shall fulfill the duties of the chair in the absence of the chair.
4. When a vacancy as specified under ORS 341.335(1)(a)-(d) occurs on the Board, the remaining Board members shall cause the College to publicly advertise the vacancy and seek applications from members of the public who reside within the zone represented by the vacancy. The Board shall prescribe the format in which applications to fill the vacancy are to be submitted. Time permitting, the Board may choose to convene a subcommittee of Board members to screen applications, and/or interview applicants, and make a recommendation to the Board.  At a regular or special meeting, the Board shall then fill the vacancy with a qualified individual. The member so selected shall serve until the next Board election at which time the current Board member (or a successor) shall be formally elected to fill the remainder of the unexpired term, if applicable.  
5. During the budget review process, the Board will convene the District Budget Committee, in accordance with ORS Chapter 294.
6. The Board Chair, with input from Board members and the President, will set the Board’s meeting agendas. The Chair will seek to base agendas upon then-current issues for the College as well as upon the goals and issues agreed upon by the full board at a retreat.
7. To the extent permitted by Oregon law and College technology, Board members may participate in meetings via telephonic conference call or other electronic means of conferring and be considered present, provided all members of the Board and the public attending the meeting can reasonably hear the voice of the Board member and the Board member can reasonably hear the voices of the other members of the Board and the public attending the meeting. In accordance with applicable law, the College will provide electronic access or other means for the public to attend meetings of the Board.  
8. The Board will give high priority to participation by members of the public and of the College community. The Board reserves the right to establish time limits for public comment, take partial testimony, to limit debate, or to take whatever actions are necessary to offer a fair hearing to an individual within the time necessary to complete the published agenda.
9. The naming of any campus, building, or significant spaces within Central Oregon Community College shall be at the discretion of the Board of Directors.

     A. The Board may choose to name a building after a major geographical feature, facility function or after persons
          involved with the College or state of Oregon. The Board may use a naming committee to recommend names for
          particular campuses, buildings or significant spaces        

    B. The Board may choose to name smaller areas of the College, such as rooms or spaces, after persons living or
        deceased, or organizations which have given a major service or made major contributions to the College or College
        distrcit. 

   C. The Board will consult with, and consider requests from, the president and the executive director of the COCC
        Foundation in exercising naming opportunities. 

   D. The Board may, as it deems appropriate, change the name of any campus, building, room, space, or area of the
        College.

10. When the Board finds it to be in the best interest of the College, the Board may disregard any of its policies and take action contrary to such policy(ies). 

GP 10: POLICY REQUIREMENTS
Revised: July 13, 1994

Board policy will include appropriate and/or required policies to meet federal and state laws and regulations, and program requirements, i.e., equal opportunity, affirmative action, sexual harassment, handicap accessibility.

GP 11: BOARD MONITORING/EVALUATION
Revised: November 10, 2010; December 9, 2015

The Board will complete a self evaluation annually, normally at the fall Retreat.

The Board of Directors will formally review the Board Governing Policies every other year (although changes may be made sooner than that if necessary)

The Board will review and evaluate the President's performance annually. Prior to the June Board meeting, the Board Chair and Board Vice-Chair will confer with the college legal counsel over the review of the President's contract. The college legal counsel will confer with the President to develop a mutually agreeable contract. A contractual revision may not always result from the annual review. Board approval of contract revisions will occur at the June Board meeting.

GP 12: BUDGET COMMITTEE
Approved: November 12, 1998; Revised: October 9, 2013; December 9, 2015

The COCC Budget Committee will follow the provisions of ORS 294.414. The Board will attempt to appoint one Budget Committee member from each Board zone. However, at the discretion of the Board, under special circumstances (such as boundary changes impacting incumbent Budget Committee members or no candidates from a particular zone), the Board can choose to make exceptions and appoint Budget Committee members who reside in the District but in a neighboring zone to represent that area.

GP 13: BOARD PROFESSIONAL IMPROVEMENT
Approved: November 10, 2010; Revised: December 9, 2015

The Board will strive to maintain an awareness of local, regional and national trends in community college education. As such, there is an expectation that a least once in their 4-year term, a Board member will attend a convention of American Association of Community College Trustees (ACCT), American Association of Community Colleges (AACC), or Oregon Community College Association (OCCA).

Given their role on the Board, the Chair will be especially encouraged to attend the ACCT annual convention each year.

GP 14: NEW BOARD MEMBER ORIENTATION
Approved: March 13, 1996; Revised: December 9, 2015

All new Board Members will receive an orientation to COCC and the role and responsibilities of the COCC Board of Directors within the first three months of election and/or appointment. The orientation will be conducted by Board Members in collaboration with the President and include topics in: Policies, statutory responsibilities, institutional financial status and other topics as determined by the Chair.

GP 15: Media Attendance at Executive Sessions
Approved January 11, 2012; Revised: December 9, 2015

Under the Oregon Public Meetings Law and ORS 192.660, recognized representatives of the news media are allowed to attend executive sessions. However, the proceedings of this executive session are for background information only and not for publication or broadcast.

The following entities are recognized as news media organizations eligible to attend executive sessions at COCC because they have an established history:

The Bulletin
The Broadside
The Source
Cascade Business Journal
The Redmond Spokesman
The Central Oregonian
The Madras Pioneer
The Sisters Nugget
The Newberry Eagle
The Spilyay Tymoo
KTVZ
KOHD
KBNZ
Bend Radio Group
Combined Communications
Horizon Broadcasting Group
Oregon Public Broadcasting

No other entity shall be permitted to attend an executive session unless it is recognized through the process described below.

The following organizations' members are eligible to seek application to attend executive sessions:

• A general or associate member newspaper of the Oregon Newspaper Publishers Association, a broadcast member of the Oregon Association of Broadcasters or a member of the Associated Press; or
• A newspaper that the College uses for publication of public notices and that meets the requirements of ORS 193.020; or
• An entity recognized by the College as being a news source that:
  • Is organized and operated to regularly and continuously publish, broadcast, transmit via the Internet or otherwise disseminate news to the public; and
  • Regularly reports on activities of the College or matters of the nature under consideration by the College; and
  • Is a well-established entity committed to complying with the requirement that confidential executive session information be undisclosed.

In making this determination, the College may consider any factors that it deems to be relevant, including whether the entity has an available process for correcting errors, including violations of executive session statutes, by a person with authority to take corrective measures.

Any entity seeking recognition as a news media organization has the burden of proof to establish that it meets the standards of this policy. A determination that the entity is not recognized shall be based upon written findings addressing the criteria in this policy.

The College may require that a request to attend an executive session be made in writing, in advance of the meeting. The request shall disclosure the person's name and the entity for which he or she is a news reporter. The request shall also include a certification that the person is gathering news for a recognized news media organization, that the information given is true and that the person agrees to comply with ORS 192.660.

The College may consider any relevant evidence provided or gathered in making its decision as to whether a person shall be recognized as a representative of a recognized news media organization.

In making its determination whether to recognize a specific person as a representative of the news media organization, the College may also require:

• A press badge or identification issued by the recognized news media organization, plus proof of identity (such as a driver's license); or
• A recently published news article in the recognized news media organization publication or broadcast, with the person's byline, or a masthead showing the person's name as a member of the news gathering staff of the news media organization, plus proof of identity; or
• A letter on letterhead from an editor of the recognized news media organization in which the editor states that the reporter is covering the meeting for the news media organization, plus proof of identity.

Representatives of the news media are not permitted to attend executive sessions involving deliberations with persons designated to carry on labor negotiations (ORS 192.660(4)). Additionally, if the executive session is being held for the purpose of conferring with counsel about current litigation or litigation likely to be filed, the College shall exclude any member of the news media from attending if the member is a party to the litigation to be discussed or is an employee, agent or contractor of a news media organization that is a party to the litigation (ORS 192.660(5)).

Cameras, tape recorders and other recording devices shall not be used in executive sessions, except for the official executive session tapes made by College staff.

Any person or entity which has a direct personal interest in the subject of the executive session may be barred from attending.

BOARD-PRESIDENT RELATIONSHIP

BPR 1: DELEGATION TO THE PRESIDENT
Approved: June 9, 1993; Revised: December 9, 2015

The President is accountable to the full board. The board will establish the governing policies, delegating implementation of the policies and the development and implementation of procedures to the president.

1. All board authority delegated to staff is delegated through the President, so that all authority and accountability of staff is considered to be the authority and accountability of the President.
2. The President is authorized to establish all procedures, make all decisions, take all actions and develop and implement all activities as long as they are consistent with the Board's direction and policies. This includes specific goals set by the Board on an annual basis.
3. No individual Board member, officer or committee has authority over the President. Information or assistance may be requested by individuals or groups, but if such a request - in the President's judgment - requires a material amount of staff time or funds or is disruptive, it may be refused, unless authorized by the Board.

BPR 2: PRESIDENT'S JOB DESCRIPTION
Approved: June 9, 1993; Revised: December 9, 2015

The President's job duties and responsibilities can be stated as performance in the following areas:

1. Performance of Board Goals and Objectives
2. Relationship with the Board of Directors
3. Operational Skills and Services
4. Professional and Leadership Activities
5. Knowledge, Skills and Abilities.

BPR 3: EVALUATING PRESIDENTIAL PERFORMANCE
Approved: June 9, 1993; Revised: December 9, 2015

The President Evaluation Committee, comprised of three members, including the chair of the Board, shall annually prepare a draft Presidential evaluation for consideration by the full Board. In preparing its draft, the Committee shall consult with all Board members, the President and such other individuals as the Committee deems relevant. The form used to prepare the evaluation shall seek details and conclusions on the following criteria:

(a) to compare the President's performance with the requirements stated in the Presidential job description adopted by the Board;

(b) to evaluate the success of the College in meeting its strategic objectives as set forth in the adopted Strategic Plan, and the President's role in such success or lack of success;

(c) to evaluate the President's performance in carrying out specific goals and tasks assigned by the Board; and

(d) to evaluate such other aspects of the President's performance as the Committee deems relevant.

At an executive session of the Board, the Committee shall present the Board with the draft performance evaluation for consideration as soon as reasonably possible before May of each year. Such draft performance evaluation shall include a proposed salary and benefits adjustment, if any, recommended by the Committee. The Board may take any of the following actions with respect to the draft performance evaluation:

(a) approve it;

(b) modify and approve it;

(c) instruct the Committee to consider additional matters and propose a revised draft performance evaluation in the future. When the Board adopts the performance evaluation, the Chair shall provide a copy to the President and meet with the President to discuss it.

BPR 4: EMERGENCY EXECUTIVE SUCCESSION
Approved: June 9, 1993
(Formerly EL 5) Revised: February 8, 1995; December 9, 2015

In order to protect the Board from sudden loss of Presidential services, the President may not have fewer than two other executives familiar with Board and Presidential issues and processes. The President will designate to the Board each year, at the organizational meeting, his or her recommended line of succession.

BPR 5: APPOINTMENT OF ACTING PRESIDENT
Approved: March 13, 1991
(Formerly EL 5) Revised February 8, 1995; October 14, 1998; March 10, 2010; December 9, 2015; October 22, 2020

In the absence of the College President, an individual holding the position of Vice President or Chief Officer may be designated by the College President to serve as Acting President of Central Oregon Community College for short periods of time, not to exceed 30 consecutive working days at a time. For periods in excess of 30 working days, the Acting President of Central Oregon Community College shall be selected by the Board of Directors.

BPR 6: ORDER OF ADMINISTRATIVE RESPONSIBILITY
Approved: March 13, 1991
Revised February 8, 1995; October 14, 1998; March 10, 2010; December 9, 2015; April 2, 2024; July 22, 2024

In the absence of the College President and when an Acting President has not been named, administrative responsibility shall reside with:

1. Vice President of Finance and Operations
2. Vice President of Student Affairs
3. Vice President of Academic Affairs

BPR 7: EMERITUS STATUS FOR COLLEGE PRESIDENT
Approved: March 15, 2018

The Board of Directors of Central Oregon Community College may, at its sole discretion, grant President Emeritus status to a retiring or retired college president. President Emeritus status shall be reserved to honor, in retirement, a college president who has provided outstanding and distinguished service to the College. The designation identifies the college president as a continuing member of the college community.

1. A member of the College Board of Directors may nominate a retiring or retired college president to become President Emeritus. The title must be approved by a majority vote of the College Board of Directors.
2. In addition to the benefits and privileges received by all emeritus faculty and staff, a college president granted emeritus status will also receive a resolution naming and honoring the college president as President Emeritus and use of the title "President Emeritus in community and professional activities.
3. The current College President may call upon the President Emeritus to provide counsel or to serve in various volunteer roles and/or capacities in support of the college; provided however, Presidents Emeriti are not required to continue to serve the college community.
4. The title of President Emeritus confers no remuneration, rights to employment, or benefit in addition to those provided above. Presidents Emeriti do not exercise any of the authority or administrative functions associated with holding a staff position at the college.
5. The Board of Directors retains the authority to withdraw a President Emeritus title at its discretion, as it deems necessary and appropriate. Such action would require a majority vote of the Board of Directors.

 

BOARD EXPECTATIONS OF THE PRESIDENT

BEP 1: STAFF TREATMENT
Approved: June 9, 1993 Revised: December 9, 2015; November 9, 2016; May 12, 2021

The President shall foster a welcoming and inclusive campus environment reflective of our diverse college district, ensuring that working conditions are fair and dignified for all paid and volunteer staff.

Accordingly, the President must:

1. Operate with personnel procedures which clarify personnel rules for staff, provide for effective handling of grievances, and protect against wrongful conditions.
2. Ensure there will be no discrimination or harassment on the basis of age, disability, sex, marital status, national origin, ethnicity, color, race, religion, veteran or military status, sexual orientation, genetic information, gender identity, citizenship status, pregnancy or any other classes protected under Federal and State statutes in any educational programs,
   activities or employment.
3. Report annually to the board on employee hiring and retention related to the protected classes listed above.
4. Allow staff to file a grievance with the Board when (A) internal grievance procedures have been exhausted and (B) the employee alleges either (i) that Board policy has been violated to his or her detriment or (ii) that Board policy does not adequately protect his or her human rights.
5. Ensure that staff are acquainted with and fully understand their rights under this policy.

BEP 2: BUDGETING
Revised: January 12, 2011; December 9, 2015

Budgeting for any fiscal year or the remaining part of any fiscal year shall be consistent with Board priorities and guidance, avoiding unnecessary fiscal risk, and generally showing acceptable levels of oversight.

Accordingly, the President must produce (or cause to be produced) budgeting which:

1. Contains sufficient information to enable accurate projections;
   Contains sufficient information to separate capital and operational items;
   Contains sufficient information to do cash flow projections; and
   Contains sufficient information to clarify planning assumptions.
2. Plans the expenditure in any fiscal year of fewer funds than are conservatively projected to be available in that period.
3. Ensure cash accounts do not drop below a safety reserve of at least $500,000 at any time.
4. Provides at least $30,000 per annum for Board prerogatives during the year.
5. Is derived from long-term planning, to include but not limited to a 5-year forecast and reserves based on projected issues.
6. Ensures working capital at the end of any fiscal year does not drop below 10 percent of the year's operating expenditures.

BEP 3: FINANCIAL CONDITION
Revised: March 9, 2011; December 9, 2015

The President must ensure that the organization is in strong or at the very least stable financial health.

Accordingly, the President must:

1. Expend fewer funds than have been budgeted and appropriated for in the fiscal year to date.
2. Not indebt the organization of an amount greater than can be repaid by certain, otherwise unencumbered revenues within 60 days, except board-approved debt service and/or certificates of participation.
3. Not use any Reserves that are not budgeted and appropriated for expenditure.
4. Not allow deficit fund balances at the end of any fiscal year without a plan to eliminate those deficit balances.
5. Not allow cash to drop below the amount needed to settle payroll and debts in a timely manner.
6. Ensure tax payments or other government-ordered payments or filings are accurate and submitted in a timely manner.
7. Ensure actual allocations to not deviate materially from Board priorities and guidance.
8. Contract with the College's independent auditors for nonaudit services only after prior approval of the Board.
9. Ensure the following certifications to the Board upon the completion of an audit:
   A. He/she has reviewed the annual audit report;
   B. Based on his/her knowledge, the annual audit report does not contain any untrue statement of a material fact or omission of a material fact necessary in order to make the statement misleading;
   C. Based on his/her knowledge, the financial statements present in all material respects, the financial condition and results of operations.
   In addition, the President must operate with the following certifications from the CFO, Director of Fiscal Services and Accounting Manager:
   D. He/she has reviewed the annual audit report;
   E. Based on his/her knowledge, the annual audit report does not contain any untrue statement of a material fact or omission of a material fact necessary in order to make the statement misleading;
   F. Based on his/her knowledge,the financial statements present in all material respects, the financial condition and results of operations.
10. Ensure that the organization has established and maintains an adequate internal control structure and procedures for financial reporting.

BEP 4: ASSET PROTECTION
Revised: March 9, 2011; December 9, 2015

The President must ensure that material, fiscal and human resource assets are protected, adequately maintained, and not put at unnecessary risk.

Accordingly, the President must:

1. Inform the Board of misalignment among fiscal resources, staffing, and programmatic commitments for implementing college vision and mission.
2. Insure responsibly against theft and casualty and against liability losses to Board members, staff or the organization itself.
3. Not allow personnel access to material amounts of funds without purchasing a fidelity bond or providing equivalent coverage.
4. Ensure maintenance schedules are reviewed at least annually.
5. Not allow unnecessary exposure to the organization, its Board or staff to claims of liability.
6. Not make any purchase or commit the organization to any expenditure of greater than $100,000 without full knowledge and approval of the Board.
7. Not make any material purchase without complying with the Central Oregon Community College Rules of Procurement (CCRP) or the Oregon Revised Statutes (ORS) and Oregon Administrative Rules (OAR). (The purchasing guidelines will automatically change with changes in CCRP, ORS, and OAR purchasing statutes.)
8. Receive, process or disburse only those funds under controls which are sufficient to meet the Board-appointed auditor's standards.
9. Not invest or hold operating capital in investments in violations of state or federal law.
10. Not acquire, encumber or dispose of real property.

BEP 5: INVESTMENT POLICY
Adopted: January 10, 2024

I. Purpose

This Investment Policy defines the parameters within which funds are to be invested by the Central Oregon Community College District (COCC). COCC is an Oregon Community College District whose purpose is to offer educational opportunities to the public. This policy also formalizes the framework, pursuant to ORS 294.135, for COCC’s investment activities to ensure effective and judicious management of funds within the scope of this policy.

These guidelines are intended to be broad enough to allow designated investment staff to function properly within the parameters of responsibility and authority, yet specific enough to adequately safeguard the investment assets.

II. Governing Authority

COCC’s investment program shall be operated in conformance with Oregon Revised Statutes and applicable federal law. Specifically, this investment policy is written in conformance with ORS 294.035; 294.040; 294.052; 294.135; 294.145; and 294.810. All funds within the scope of this policy are subject to laws established by the state of Oregon. Any revisions or extensions of these sections of the ORS shall be assumed to be part of this Investment Policy immediately upon being enacted.

III. Scope

This policy applies to activities of COCC with regard to investing the financial assets of operating funds, capital funds, bond proceeds and bond reserve funds. Funds managed by COCC that are governed by other investment policies are excluded from this policy; however, all funds are subject to Oregon Law. The amount of funds falling within the scope of this policy over the next three years is expected to range between $30 million and $70 million.

IV. General Objectives

The primary objectives, in priority order, of investment activities shall be:

1. Preservation of Invested Capital
   Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The goal is to mitigate credit risk and interest rate risk.
   
   
2. Liquidity
   The investment portfolio shall remain sufficiently liquid to meet all reasonably anticipated operating requirements. Furthermore, the portfolio should consist largely of securities with active secondary or resale markets. A portion of the portfolio also may be placed in the Oregon Short Term Fund which offers next-day liquidity. Where possible and prudent, the portfolio should be structured so that investments mature concurrent with anticipated demands.
   
   
3. Return
   The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into consideration the safety and liquidity needs of the portfolio. Although return consists of both principal return (gains and losses due to market value fluctuations) and income return (yield), this policy discourages active trading and turnover of investments. Investments should generally be held to maturity.

V. Standards of Care

1. Prudence
   The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported and appropriate action is taken to control adverse developments within a timely fashion as defined in this policy.
   
   The "prudent person" standard states:
   “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.”
   
   
2. Ethics and Conflicts of Interest
   Officers and employees involved in the investment process shall refrain from personal activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Employees and investment officials shall disclose any material interests in financial institutions with which they conduct business. Disclosure shall be made to the governing body. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of COCC. Officers and employees shall, at all times, comply with the State of Oregon Government Standards and Practices code of ethics set forth in ORS Chapter 244.
   
   
3. Delegation of Authority and Responsibilities

1. Governing Body
   COCC’s Board of Directors will retain ultimate fiduciary responsibility for invested funds. The governing body will receive reports, pursuant to, and with sufficient detail to comply with ORS 294.155.
   
   
2. Delegation of Authority
   Authority to manage investments within the scope of this policy and operate the investment program in accordance with established written procedures and internal controls is granted to COCC’s Vice President of Finance and Operations hereinafter referred to as Investment Officer, and derived from the following: ORS 294.035 to 294.053, 294.125 to 294.145, and 294.810.
   
   No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Investment Officer. The Investment Officer shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials.
   
   All participants in the investment process shall seek to act responsibly as custodians of the public trust. No officer or designee may engage in an investment transaction except as provided under the terms of this policy and supporting procedures.
   
   
3. Investment Committee
   COCC’s Board of Directors may seek to establish an investment committee to provide guidance to the Investment Officer and monitor investment policy compliance.
   
   
4. Investment Adviser
   The Vice President of Finance and Operations may engage the services of one or more external investment managers to assist in the management of the entity’s investment portfolio in a manner consistent with this investment policy. Investment advisers may be hired on a non-discretionary basis. All investment transactions by approved investment advisers must be pre-approved in writing by the Investment Officer and compliant with this Investment Policy. If COCC hires an investment adviser to provide investment management services, the adviser is authorized to transact with its direct dealer relationships on behalf of COCC.

VI. Transaction Counterparties, Investment Advisers and Depositories

1. Broker/Dealers
   The Investment Officer shall determine which broker/dealer firms and registered representatives are authorized for the purposes of investing funds within the scope of this investment policy. A list will be maintained of approved broker/dealer firms and affiliated registered representatives.  The broker/dealer selection will follow all COCC Procurement Policies.
   
   The following minimum criteria must be met prior to authorizing investment transactions. The Investment Officer may impose more stringent criteria.
   
   
   1. Broker/Dealer firms must meet the following minimum criteria:
      
      
      1. Be registered with the Securities and Exchange Commission (SEC)
      2. Be registered with the Financial Industry Regulatory Authority (FINRA)
      3. Provide most recent audited financials
      4. Provide FINRA Focus Report filings
         
         
   2. Approved broker/dealer employees who execute transactions with COCC must meet the following minimum criteria:
      
      
      1. Be a registered representative with the Financial Industry Regulatory Authority (FINRA);
      2. Be licensed by the state of Oregon;
      3. Provide certification (in writing) of having read; understood; and agreed to comply with the most current version of this investment policy.
         
         
   3. The Investment Officer, with Board approval, may want to establish policy for engaging broker/dealer firms and registered representatives that are more restrictive than stated in this policy. Additional requisites or due diligence items may include:
      
      
      1. Positive references from at least three other local government.
      2. As part of the periodic due diligence review, inquiries with other local government clients with regard to their recent experiences with broker/dealer firms or registered representatives and any change in relationship status.
      3. Requirement that approved registered representatives provide notification within 30 days of any formal investigations or disciplinary actions initiated by federal or state regulators.
      4. Requirement that prospective registered representatives have an established history of advising local governments with similar amounts of assets under management.
         
         
   4. Periodic (at least annual) review of all authorized broker/dealers and their respective authorized registered representatives will be conducted by the Investment Officer. Factors to consider would be:
      
      
      1. Pending investigations by securities regulators
      2. Significant changes in net capital
      3. Pending customer arbitration cases
      4. Regulatory enforcement actions
         
         
2. Direct Issuers
   Obligations that are permitted for purchase by this policy may be purchased directly from the issuer.
   
   
3. Investment Advisers
   A list will be maintained of approved advisers selected by conducting a process of due diligence.

1. The following items are required for all approved Investment Advisers:
   
   
   1. The investment adviser firm must be registered with the Securities and Exchange Commission (SEC) or licensed by the state of Oregon (Note: Investment adviser firms with assets under management > $100 million must be registered with the SEC, otherwise the firm must be licensed by the state of Oregon).
   2. All investment adviser firm representatives conducting investment transactions on behalf of COCC must be registered representatives with FINRA.
   3. All investment adviser firm representatives conducting investment transactions on behalf of COCC must be licensed by the state of Oregon.
   4. Certification, by all of the adviser representatives conducting investment transactions on behalf of this entity, of having read, understood and agreed to comply with this investment policy.
      
      
2. A periodic (at least annual) review of all investment advisers under contract will be conducted by the Investment Officer to determine their continued eligibility within the portfolio guidelines. Factors to consider would be:
   
   
   1. Pending investigations by securities regulators
   2. Significant changes in net capital
   3. Pending customer arbitration cases
   4. Regulatory enforcement actions
      
      
3. The Investment Officer, with Board approval, may want to establish guidelines or policy for engaging investment advisers’ services that are more restrictive than stated in this Additional requisites or due diligence items may include:
   
   
   1. Positive references from at least three other local government clients of a prospective investment adviser firm.
   2. As part of the periodic due diligence review, inquiries with other local government clients of approved investment advisers with regard to their recent experiences with the adviser and any change in the relationship
   3. Requirement that approved investment advisers provide notification within 30 days of a relationship termination by an Oregon based local
   4. Requirement that approved investment adviser provide notification within 30 days of any formal investigations or disciplinary actions initiated by federal or state regulators.
   5. Requirement that prospective investment advisers have an established history of advising local governments with similar amounts of assets under management.

4. Depositories
All financial institutions who desire to become depositories must be qualified Oregon Depositories pursuant to ORS Chapter 295.

5. Competitive Transactions

1. The Investment Officer shall obtain and document competitive bid information on all investments purchased or sold in the secondary market. Competitive bids or offers should be obtained, when possible, from at least three separate brokers/financial institutions or through the use of a nationally recognized trading
2. In the instance of a security for which there is no readily available competitive bid or offering on the same specific issue, then the Investment Officer shall document quotations for comparable or alternative securities.
3. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities as the same original issue price. However, the Investment Officer is encouraged to document quotations on comparable securities.
4. If an investment adviser provides investment management services, the adviser must retain documentation of competitive pricing execution on each transaction and provide upon request.

VII. Administration and Operations

1. Delivery vs. Payment
   All trades of marketable securities will be executed (cleared and settled) by delivery vs. payment (DVP) to ensure that securities are deposited in COCC’s safekeeping institution prior to the release of funds.
   
   
2. Third-Party Safekeeping
   Securities will be held by an independent third-party safekeeping institution selected by the Investment Officer.  All securities will be evidenced by safekeeping receipts in COCC’s name. Upon request, the safekeeping institution shall make available a copy of its Statement on Standards for Attestation Engagements (SSAE) No. 16.
   
   
3. Internal Controls
   COCC’s Board of Directors are responsible for establishing and maintaining an adequate internal control structure designed to reasonably assure that invested funds are invested within the parameters of this Investment policy and, protected from loss, theft or misuse. Specifics for the internal controls shall be documented in writing. The established control structure shall be reviewed and updated periodically by the Investment Officer.
   
   The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits likely to be derived and the valuation of costs and benefits requires estimates and judgments by management.
   
   The internal controls shall address the following points at a minimum:

1. 1. Compliance with Investment Policy
   2. Control of collusion
   3. Separation of transaction authority from accounting and record keeping
   4. Custodial safekeeping
   5. Avoidance of physical delivery of securities whenever possible and address control requirements for physical delivery where necessary
   6. Clear delegation of authority to subordinate staff members
   7. Confirmation of transactions for investments and wire transfers in written or digitally verifiable electronic form
   8. Dual authorizations of wire and automated clearing house (ACH) transfers
   9. Staff training
   10. Review, maintenance and monitoring of security procedures both manual and automated

 4. An external auditor shall provide an annual independent review to assure compliance with Oregon state law and COCC’s policies and procedures.

VIII. Suitable and Authorized Investments

1. Permitted Investments
   The following investments are permitted pursuant to ORS 294.035, 294.040, and ORS 294.810.
   
   
   • US Treasury Obligations: S. Treasury and other government obligations that carry the full faith and credit guarantee of the United States for the timely payment of principal and interest.
   • US Agency Obligations: Senior debenture obligations of US federal agencies and instrumentalities or U.S. government sponsored enterprises (GSE).
   • Oregon Short Term Fund
   • Corporate Indebtedness
     1. Commercial Paper issued under the authority of section 3(a)2 or 3(a)3 of the Securities Act of 1933.
     2. Corporate Bonds
   • Repurchase Agreements
   • Municipal Debt
   • Bankers Acceptances
   • Qualified Institution Time Deposits/Savings Accounts/Certificates of Deposit
   • Oregon Local Government Intermediate Fund (OLGIF). To invest in OLGIF COCC must fulfill the requirements listed below:
     • Maintain an existing account with the Oregon Short Term Fund.
     • OLGIF listed as an eligible investment in the participant’s investment policy.
     • Investment policy reviewed by the Oregon Short Term Fund Board.
     • Investment policy approved by the participant’s governing body.
     • Statement of understanding recorded in the participant governing body’s minutes as follows and with no deviations.
       
       The governing body of COCC acknowledges the following:
       • Members of this body and investment staff have read and understand the "Oregon Local Government Intermediate Fund Information Pamphlet" provided by Oregon State Treasury;
       • Investments in OLGIF are subject to loss; and
       • nvestments in OLGIF and divestments from OLGIF may be subject to restriction by Oregon State Treasury.
         
         
2. Approval of Permitted Investments
   If additional types of securities are considered for investment, per Oregon state statute they will not be eligible for investment until this Policy has been amended and the amended version adopted by COCC’s Board of Directors.
   
   
3. Prohibited Investments
   1. Private Placement or “144A” Securities
      Private placement or “144A” securities are not allowed. For purposes of the policy, SEC Rule 144A securities are defined to include commercial paper privately placed under section 4(a)(2) of the Securities Act of 1933.
      
      
   2. US Agency Mortgage-backed Securities
      US agency mortgage-backed securities such as those securities issued by FNMA and FHLMC are not allowed.
      
      
   3. Securities Lending
      COCC shall not lend securities nor directly participate in a securities lending program.
      
      
4. Demand Deposits and Time Deposits
   1. All demand deposits and time deposits (Examples of time deposits are: certificates of deposit and savings accounts) shall be held in qualified Oregon depositories in accordance with ORS Chapter 295.
   2. Demand deposits in qualified depository institutions are considered cash vehicles and not investments and are therefore outside the scope and restrictions of this policy. Pursuant to ORS 294.035(3)(d), time deposits, certificates of deposit and savings accounts are considered investments and within the scope of this policy.
      
      
5. Repurchase Agreements
   1. ORS 294.035 (3)(j) requires repurchase agreement collateral to be limited in maturity to three years and priced according to percentages prescribed by written policy of the Oregon Investment Council or the Oregon Short Term Fund Board.
   2. ORS 135 (2) limits the maximum term of any repurchase agreement to 90 days.
   3. The OSTF Board has adopted the following margins:
      1. US Treasury Securities: 102%
      2. US Agency Discount and Coupon Securities: 102%
      3. Mortgage Backed and Other*: 103%
         *Limited to those securities described in ORS 294.035(1)

IX. Investment Parameters

1. Credit Risk
   Credit risk is the risk that a security or a portfolio will lose some or all of its value due to a real or perceived change in the ability of the issuer to repay its debt. Credit risk will be mitigated by the following guidelines:
   1. Diversification
      It is the policy of COCC to diversify its investments. Where appropriate, exposures will be limited by security type; maturity; issuance, issuer, and security type, allowed security types and Investment exposure limitations are detailed in the table below.
   2. Recognized Credit Ratings
      Investments must have a rating from at least two of the following nationally recognized statistical ratings organizations (NRSRO): Moody’s Investors Service; Standard & Poor’s; and Fitch Ratings Service as detailed in the table below. Ratings used to apply the guidelines below should be investment level ratings and not issuer level ratings.
   3. Portfolio Average Credit Rating
      The minimum weighted average credit rating of the portfolio’s rated investments shall be Aa/AA or P1/AA or F1 by Moody’s Investors Service; Standard & Poor’s; and Fitch Ratings Service respectively.
   4. Exposure Constraints and Minimum Investment Credit Ratings
      The following table limits exposures among investments permitted by this policy.

Issue Type	Maximum % Holdings	Minimum Ratings Moody’s / S&P / Fitch
US Treasury Obligations	100%	None
US Agency Securities	100%	-
Per Agency (Senior Obligations Only)	33%	-
Oregon Short Term Fund	Maximum allowed per ORS 294.810	-
Bankers’ Acceptances	25%	A1+/P1/F1+
Time Deposits/Savings	50%	-
Accounts/Certificates of Deposit
Per Institution	25%
Repurchase Agreements	5%	-
Corporate Debt (Total) Corporate Commercial Paper Per Issuer	15% 15%	-
	2.5%	A1/P1/F1
Corporate Bonds	10%
Per Issuer	2.5%	Aa/AA/AA
Municipal Debt (Total)	10%	-
Municipal Commercial Paper	10%	A1/P1/F1
Municipal Bonds	10%	Aa/AA/AA

v. Determining a Security’s Rating
A single rating will be determined for each investment by utilizing the lowest security level rating available for the security from Standard and Poor’s, Moody’s Investor Services and Fitch Ratings respectively.

vi. Restriction on Issuers with Prior Default History
Per ORS 294.040, the bonds of issuers listed in ORS 294.035 (3)(a) to (c) may be purchased only if there has been no default in payment of either the principal of or the interest on the obligations of the issuing county, port, school district or city, for a period of five years next preceding the date of the investment.

2. Liquidity Risk
Liquidity risk is the risk that an investment may not be easily marketable or redeemable. The following strategies will be employed to mitigate liquidity risks:

1. The value of at least 25% of funds available for investing or three months of budgeted operating expenditures will be invested in the Oregon Short Term Fund, with a qualified depository institution, or investments maturing in less than 90 days to provide sufficient liquidity for expected disbursements.
2. Funds in excess of liquidity requirements are allowed for investments maturing in greater than one year. However, longer-term investments tend to be less liquid than shorter term Portfolio investment maturities will be limited as follows:

Total Portfolio Maturity Constraints:

Maturity Constraints	Minimum % of Total Portfolio
Under 90 days	25% or three months Estimated Operating Expenditures
Under 1 year	50%
Under 3 years	100%

iii. Reserve or Capital Improvement Project monies may be invested in securities exceeding the maximum term if the maturities of such investments are made to coincide as nearly as practicable with the expected use of the funds.

iv. Larger issuance sizes enhance liquidity as there are likely to be a greater number of investors. Issuance sizes above a minimum amount qualify a corporate or municipal debt bond issuance for index eligibility. Index eligible bonds have a significantly larger investor base which improves liquidity.

v. Limiting investment in a specific debt issuance improves secondary market liquidity by assuring there are other owners of the issuance.

Issue Type	Maximum % of Issuance (Par)
US Agency Securities	50%
Corporate Debt (Total) Corporate Commercial Paper Corporate Bonds	- 100% 25%
Municipal Bonds	25%

3. Interest Rate Risk
Longer-term investments have the potential to achieve higher returns but are also likely to exhibit higher market value volatility due to the changes in the general level of interest rates over the life of the investment(s). Interest rate risk will be mitigated by providing adequate liquidity for short term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes. Certain types of securities, including variable rate securities, securities with principal pay-downs prior to maturity, and securities with embedded options, will affect the interest rate risk profile of the portfolio differently in different interest rate environments. The following strategies will be employed to control and mitigate adverse changes in the market value of the portfolio due to changes in interest rates:

1. Where feasible and prudent, investment maturities should be matched with expected cash outflows to mitigate market risk.
2. To the extent feasible, investment maturities not matched with cash outflows, including liquidity investments under one year, should be staggered to mitigate re- investment risk.
3. No commitments to buy or sell securities may be made more than 14 days prior to the anticipated settlement date, or receive a fee other than interest for future.
4. The maximum percent of callable securities in the portfolio shall be 10%;
5. The maximum stated final maturity of individual securities in the portfolio shall be three years, except as otherwise stated in this policy.
6. The maximum portfolio average maturity (measured with stated final maturity) shall be 1.5 years.

X. Investment of Proceeds from Debt Issuance

1. Investments of bond proceeds are restricted under bond covenants that may be more restrictive than the investment parameters included in this Bond proceeds shall be invested in accordance with the parameters of this policy and the applicable bond covenants and tax laws.
2. Funds from bond proceeds and amounts held in a bond payment reserve or proceeds fund may be invested pursuant to ORS 052. Investments of bond proceeds are typically not invested for resale and are maturity matched with outflows. Consequently, funds within the scope of ORS 294.052 are not subject to this policy’s liquidity risk constraints within section IX (2).

XI. Investment of Reserve or Capital Improvement Funds

1. Pursuant to ORS 294.135(1)(b), reserve or capital Improvement project monies may be invested in securities exceeding three years when the funds in question are being accumulated for an anticipated use that will occur more than 18 months after the funds are invested, then, upon the approval of COCC’s Board of Directors, the maturity of the investment or investments made with the funds may occur when the funds are expected to be used. These investments will be excluded from the calculation in IX.3.vi.

XII. Guideline Measurement and Adherence

1. Guideline Measurement
   Guideline measurements will use market value of investments.
2. Guideline Compliance
   1. If the portfolio falls outside of compliance with adopted investment policy guidelines or is being managed inconsistently with this policy, the Investment Officer shall bring the portfolio back into compliance in a prudent manner and as soon as prudently feasible.
   2. Violations of portfolio guidelines as a result of transactions; actions to bring the portfolio back into compliance and; reasoning for actions taken to bring the portfolio back into compliance shall be documented and reported to COCC’s Board of Directors.
   3. Due to fluctuations in the aggregate surplus funds balance, maximum percentages for a particular issuer or investment type may be exceeded at a point in time. Securities need not be liquidated to realign the portfolio; however, consideration should be given to this matter when future purchases are made to ensure that appropriate diversification is maintained.

XIII. Reporting and Disclosure

1. Compliance
   The Investment Officer shall prepare a report at least quarterly that allows COCC’s Board of Directors to ascertain whether investment activities during the reporting period have conformed to the investment policy. The report should be provided to COCC’s Board of Directors. The report will include, at a minimum, the following:
   
   
   1. A listing of all investments held during the reporting period showing: par/face value; accounting book value; market value; type of investment; issuer; credit ratings; and yield to maturity (yield to worst if callable).
   2. Average maturity of the portfolio at period-end.
   3. Maturity distribution of the portfolio at period-end.
   4. Average portfolio credit quality of the portfolio at period-end.
   5. Average weighted yield to maturity (yield to worst if callable investments are allowed) of the portfolio.
   6. Distribution by type of investment.
   7. Transactions since last report.
   8. Distribution of transactions among financial counterparties such as broker/dealers.
   9. Violations of portfolio guidelines or non-compliance issues that occurred during the prior period or that are outstanding. This report should also note actions (taken or planned) to bring the portfolio back into compliance.
      
      
2. Performance Standards/ Evaluation
   At least annually, the Investment Officer shall report comparisons of investment returns to relevant alternative investments and comparative Bond Indexes. The performance of the portfolio should be compared to the performance of alternative investments such as available certificates of deposit; the Oregon Short Term Fund; US Treasury rates; or against one or bond indices with a similar risk profile (e.g., Bond indexes comprised high grade investments and maximum maturities of three years).
   
   When comparing performance, all fees and expenses involved with managing the portfolio shall be included in the computation of the portfolio’s rate of return.
   
   
3. Marking to Market
   The market value of the portfolio shall be calculated at least quarterly and a statement of the market value of the portfolio shall be issued at least quarterly.
   
   
4. Audits
   Management shall establish an annual process of independent review by the external auditor to assure compliance with internal controls. Such audit will include tests deemed appropriate by the auditor.

XIV. Policy Maintenance and Considerations

1. Review
   The investment policy shall be reviewed by COCC’s Board of Directors at least annually to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends.
   
   The annual report should also serve as a venue to suggest policies and improvements to the investment program, and shall include an investment plan for the coming year.
   
   
2. Exemptions
   Any investment held prior to the adoption of this policy shall be exempted from the requirements of this policy. At maturity or liquidation, such monies shall be reinvested as provided by this policy.
   
   
3. Policy Adoption and Amendments
   This investment policy and any modifications to this policy must be formally approved in writing by COCC’s Board of Directors.
   
   This policy must be submitted to the Oregon Short Term Fund (OSTF) Board for review if:
   
   
   1. This policy allows maturities beyond 18 months unless the funds are being accumulated for a specific purpose, including future construction projects, and upon approval of COCC’s Board of Directors, the maximum maturity date matches the anticipated use of the funds (ORS 294.135(1)(b) and 294.135(3)).
      
      And either:
      
      1. This policy has never been submitted to the OSTF Board for comment;
         Or
      2. Material changes have been made since the last review by the OSTF

Regardless of whether this policy is submitted to the OSTF Board for comment, this policy shall be re-submitted not less than annually to COCC’s Board of Directors for approval.

XV. List of Documents Used in Conjunction with this Policy

(The following is a list of suggested documents that may be used in conjunction with this policy.)

• Listing of authorized personnel
• Relevant investment statutes and ordinances
• Description of benchmark(s)
• Master repurchase agreements and tri-party agreements
• Listing of authorized broker/dealers and financial institutions
• Credit studies for securities purchased and financial institutions used
• Safekeeping agreements
• Wire transfer agreements
• Sample investment reports
• Methodology for calculating rate of return
• Broker confirmations and safekeeping receipts

BEP 6: COMPENSATION AND BENEFITS
Revised: May 10, 2017. Renumbered: April 1, 2024.

With respect to employment, compensation and benefits to employees, consultant, contract workers and volunteers, the President must ensure the organization's fiscal integrity, public image and program quality.

Accordingly, the President must:

1. Not change unilaterally his or her own compensation and benefits.
2. Not promise or imply permanent or guaranteed employment.
3. Establish compensation and benefits offerings which are competitive at the local or regional level. He/she shall not create obligations over a term longer than can be covered conservatively by projected revenue, in no event longer than one year or the terms of Board approved collective bargaining contract, and in all events subject to potential losses of revenue.
4. Establish deferred or long term compensation and benefits, within the following constraints:
   A. Must not cause unfunded liabilities that commit the organization to benefits which incur unpredictable future costs.
   B. Must not provide less than some basic level of benefits to all eligible full time employees, though differential benefits to encourage retention of key employees are permitted.
5. Ensure timely negotiations with employee groups in accordance with state labor laws.
6. Inform the Board prior to the establishment of negotiation teams, allowing the Board to consider the option of including a Board member on a team.

BEP 7: COMMUNICATION & COUNSEL TO THE BOARD
Approved: June 9, 1993. Revised: December 9, 2015. Renumbered: April 1, 2024.

With respect to providing information and counsel to the Board, it is critical that the President keep the Board fully informed.

Accordingly, the President must:

1. Make the Board aware of all relevant trends, anticipated adverse media coverage, information which might have political consequences, material external and internal changes, particularly changes in the assumptions upon which any Board policy has previously been established.
2. Submit the required monitoring data (see policy on Monitoring Executive Performance) in a timely, accurate and understandable fashion, directly addressing provisions of the Board policies being monitored.
3. Gather for the Board as many staff and external points of view, issues and options as needed for fully informed Board choices, particularly with respect to faculty opinion on instructional matters.
4. Present information clearly and in a concise format with minimal jargon.
5. Provide a mechanism for official Board, officer or committee communications.
6. Communicate with the Board as a whole except when (a) fulfilling individual requests for information or (b) responding to officers or committees duly charged by the Board.
7. Report in a timely manner an actual or anticipated noncompliance with any policy of the Board.

BEP 8: DEBT LEVEL AND MANAGEMENT
Approved: January 9, 2002; Revised: December 9, 2015. Renumbered: April 1, 2024.

With respect to the incurrence and management of institutional debt, the President shall insure that sufficient funds are available to meet current and future debt requirements on all indebtedness within prudent fiscal parameters.

Accordingly, the President must:

1. Issue bonds and other obligations that are in full accordance with the guidelines and limitations set forth in the Oregon Revised Statutes.
2. Ensure that future budgets adequately plan to pay for maturing principal and interest of its general obligation indebtedness.
3. Issue certificates of participation (e.g., full faith and credit obligations) only when sufficient revenues are available and identified to pay the obligation in the future.
4. Ensure adequate accounting to occur for the property taxes that have been levied to pay for the maturing principal and interest of general obligation bonds.
5. Not allow general obligation debt to exceed fifty percent of the district's general obligation debt capacity.
6. Ensure that a periodic review of interest rates is conducted at least once every 3 years to determine whether potential savings from refinancing meet and exceed 3% aggregate interest costs savings required by the State Treasurer's guidelines.
7. Not allow debt to be incurred without the use of legal services, financial services and a paying agent.

 

STATUTORY

S 1: STATUTORY REQUIREMENTS

Revised: July 13, 1994; Revised: December 9, 2015

The Board of Directors will comply with Chapter 341 of the Oregon Revised Statutes (O.R.S.) and all other appropriate federal and state statutory regulations.