Office of the President
                                         October 18, 1983








Members, Executive Committee, Board of Trustees:


  Increase in the Scope of Pharmacy Building Project of $700,000


Recommendation:   that the Board of Trustees approve an increase
in the scope of $700,000 of the Pharmacy Building which shall be
funded from proceeds of Consolidated Educational Buildings Revenue
Bonds authorized in the 1982 session of the Kentucky General
Assembly, and that the additional funds will be provided from
revenue bonds included in the next Consolidated Education
Buildings Revenue Bonds issue authorized by the Board.


Background:   The Pharmacy Building is currently under
construction with scope of $8,230,000. The building has not been
bid as a total project, but in phases. The last sizeable bids on
the project were opened on Friday, September 30, 1983. Due to the
favorable bidding climate throughout the phase bidding process,
the project has experienced sizeable underruns.   In sum 4 stories
of the 5 1/2 story building can now be completed for the total of
$7,225,542, including a 5% contingency reserve. This leaves a sum
of $1,004,458 which can be utilized to complete the remaining
floor and a half in the building. The additional sum of $700,000
necessary to finish the structure can be provided by the sale of
revenue bonds authorized by the 1982 legislature, inasmuch as the
debt service appropriated by the legislature to cover the project
has exceeded by $169,000 the amount actually needed for debt
service in the current fiscal year.

Until bonds are sold, funds will be advanced to cover the
increased costs.



Date:    October 18



Action taken:  Approved    X      Disapproved        Other_



, 1983