xt7ns17snm79 https://exploreuk.uky.edu/dips/xt7ns17snm79/data/mets.xml Lexington, Kentucky University of Kentucky 19860525 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 1986-05-jun25. text Minutes of the University of Kentucky Board of Trustees, 1986-05-jun25. 1986 2011 true xt7ns17snm79 section xt7ns17snm79 










       Minutes of the Meeting of the Board of Trustees of the University of
Kentucky, Wednesday, June 25, 1986.


       The Board of Trustees of the University of Kentucky met at 1 p.m.
(Eastern Daylight Time) on Wednesday, June 25, 1986 in the Board Room on
the 18th floor of the Patterson Office Tower on the Lexington Campus.

       A.    Meeting Opened and Roll Called

       Mr. Robert T. McCowan, Chairman, called the meeting to order at 1
p.m., and the invocation was pronounced by Mrs. Edythe Jones Hayes.

       The following members of the Board of Trustees answered the call of
the roll: Mr. Robert T. McCowan (Chairman), Mr. William R. Black, Mr. John
S. Cain, Professor Timothy A. Cantrell, Governor Albert Benjamin Chandler,
Mr. Albert G. Clay, Mr. George W. Griffin, Mrs. Edythe Jones Haves, Mr.
Henry E. Hershey, Mr. Brereton C. Jones, Mr. R. Larry Jones, Professor
James D. Kemp, Mr. T. A. Lassetter, Mr. W. Bruce Lunsford, Mr. Frank
Ramsey, Mr. James L. Rose, Mr. Bobby Watson, and Professor Constance P.
Wilson. Absent from the meeting were Mr. Tracy Farmer and Mr. Ronald G.
Geary. The University administration was represented by President Otis A.
Singletary; Mr. James 0. King, Vice President for Administration;
Chancellors Peter P. Bosomworth, Art Gallaher, and Charles T. Wethington;
Dr. Raymond R. Hornback, Vice President for University Relations; Mr.
Edward A. Carter, Associate Vice President for Planning and Budget; Mr.
John C. Darsie, General Counsel; Mr. Henry Clay Owen, Controller and
Treasurer; and Dr. Paul G. Sears, Special Assistant for Academic Affairs.

       Members of the various news media were also in attendance. A quorum
being present, the Chairman declared the meeting officially open for the
conduct of business at 1:04 p.m.

       B.    Minutes Approved

       On motion made by Mr. Rose, seconded by Mr. Lunsford and passed, the
Minutes of the May 6, 1986 meeting of the Board of Trustees were approved
as written.

       C.    Nominating Committee Appointed

       Mr. McCowan appointed Mr. George W. Griffin (Chairman), Mrs. Edythe
Jones Hayes, Mr. James L. Rose, Mr. R. Larry Jones, and Professor Constance
P. Wilson to serve as the Nominating Committee to recommend officers of the
Board and members of the Executive Committee to be presented at the
September 16, 1986 meeting of the Board of Trustees.




 





- 2



       D.    President's Report to the Trustees (PR 1)

       President Singletary indicated his pleasure in announcing one item
not included in PR 1:  a $47,000 grant from the Ford Foundation to tile
College of Arts and Sciences to help support implementation of the new
undergraduate studies requirements.  He then reviewed briefly some
significant changes that have occurred on campus in the last few years
which reflect the high priority placed on the quality of undergraduate
education:  (1) the adoption of the selective admissions policy, (2) the
ten-fold increase over the last three years in the number of merit
scholarships awarded, (3) Mrs. Maxwell Gluck's recent endowment of a
scholarship to be given to a top-notch scholar in equine studies, (4) the
streamlining of various services provided to students, and (5) the
curriculum revision which has been in the pipeline two years or so in
Chancellor Gallaher's area.

       In view of the length of the agenda, President Singletary said he
would not attempt to cover the items in PR 1 and suggested that the
Trustees read it at their leisure.

       E.    Personnel Actions  (PR 2)

       In recommending that the appointments and staff changes be approved,
President Singletary said he was pleased to report that Professor Emmett R.
Costich has been named Acting Dean in the College of Dentistry.   He also
reported that a search committee has been appointed to find a permanent
successor to replace Dean Merrill W. Packer who recently resigned.

       On motion made by Mr. Ramsey, seconded by Professor Wilson and
passed, the appointments and staff changes recommended in PR 2 were
approved.  (See PR 2 at the end of the Minutes.)

       F.    Supplemental Recommendations--Personnel Actions   (PR 3A-1)

       President Singletary then indicated his pleasure in recommending the
following:  (1) the appointment of Professor Donald C. Leigh, "a highly
respected member of the Engineering faculty," as Acting Director of the
Center for Robotics and Manufacturing Systems and (2) the appointment of
Joseph T. Burch, Dean of Students, as Actina Vice Chancellor for Student
Affairs.  He reported that a search has begun for a permanent replacement
for Vice Chancellor Robert G. Zumwinkle who recently retired.   Professor
Leigh and Dean Burch were present and asked to stand and be recognized
following which they were given a round of applause.  President Singletary
expressed his appreciation to Dean Burch for always responding to any
request to serve the University.

       With President Singletary so recommending, Mr. Griffin moved
approval of the appointments in PR 3A-1. His motion was seconded by
Professor Kemp and carried.  (See PR 3A-1 at the end of the Minutes.)




 





- 3 -



       G.    Report on Results of Alumni Member Election  (PR 3A-2)

       President Singletary reported that the three persons receiving the
highest number of votes in the election for an alumni member of the Board
of Trustees to fill the vacancy created by the death of Mr. Thomas P. Bell
were Mrs. Robert 0. Clark, Mr. Ted Bates, and Mr. John C. Owens.

       Mr. Larry Jones moved that the report of the Secretary of the Board
of Trustees, as given by President Singletary, be received and put to
record and the Secretary be authorized to certify to the Governor the names
of the three persons receiving the largest number of votes from which list
a successor will be appointed. His motion was seconded by Mr. Cain and
unanimously carried. (See PR 3A-2 at the end of the Minutes.)

       H.    Proposed Amendments to the Governing Regulations  (PR 3B-1)

       Professor Cantrell moved that the proposed amendments to the
Governing Regulations in PR 3B-1, which were received for preliminary
consideration by the Board at its May 1986 meeting. be approved. Mr. Black
seconded the motion which carried without dissent. (See PR 3B-1 at the end
of the Minutes.)

       I.   Proposed Amendment to the Governing Regulation  (PR 3B-2)

       Professor Wilson moved that the proposed amendment to the Governing
Regulations in PR 3B-2 be received for preliminary consideration and
included on the agenda at the next regular meeting of the Board. The
motion, seconded by Mr. Larry Jones, carried. (See PR 3B-2 at the end of
the Minutes.)

       J.    Appointments to Advisory Board--Lexington Community College
(PR 4-A)

       On motion made by Mr. Lassetter, seconded by Mr. Clay and passed,
the Board approved the reappointment of Mr. Richard E. Blanchard and Mr.
Larry S. Martini to the Advisory Board of Lexington Community College for
three-year terms ending June 30, 1989.  (See PR 4A at the end of the
Minutes.)

       K.    Appointment of Director, Lexington Community College (PR 4B)

       On recommendation of Chancellor Wethington and with the concurrence
of President Singletary, Professor Cantrell moved that Dr. Allen G. Edwards
be named Director of Lexington Community College, effective July 1, 1986.
Professor Cantrell's motion was seconded by Mr. Cain and unanimously
carried. (See PR 4B at the end of the Minutes.)

       L.    Establishment of Interdisciplinary Human Development
Institute  (PR 5A)

       President Singletary recommended that the Board of Trustees
authorize the establishment of an Interdisciplinary Human Development
Institute. He reported that the proposal to establish the Institute
originated in the Human Development Program. The proposed Institute's
goals include research, training, and service demonstration for persons
with developmental disabilities and related handicapped problems.  It will




 





- 4 -



be an educational unit in the Graduate School.  The establishment of the
Institute has been recommended by the Vice Chancellor for Research and Dean
of the Graduate School, the University Senate Committee on Academic
Organization and Structure, the University Senate Council, and the
Chancellor for the Lexington Campus. On motion made by Mr. Hershey,
seconded by Mr. Rose and carried, PR 5A was approved.

       President Singletary introduced Dr. Melton Martinson, Director of
the Human Development Program, whom he identified as the force behind the
proposed Institute. He informed the Trustees that the Valvoline Oil
Company has been financially supportive of the Human Development Program
and involved in the planning for the Institute.  He introduced Mr. Jack
Boehm and Mr. John Barr, President and Vice President of Valvoline,
respectively, and expressed appreciation for the support of their company.
He asked them to stand and be recognized following which they were given a
round of applause. (See PR 5A at the end of the Minutes.)

       M.    Naminq of Conference Center  (PR 5C)

       On recommendation of President Singletary, Mr. Clay moved that the
conference center in the University of Kentucky Research and Education
Center Building at Princeton, Kentucky be named THE GEORGE A. EVERETTE
CONFERENCE CENTER. The motion was seconded by Mr. Hershey and carried.
(See PR 5C at the end of the Minutes.)

       N.    Approval of Agreement Between University of Kentucky and
University of Kentucky Student Agencies, Inc. (PR bD)

       President Singletary indicated this was an annual contract which has
been in effect since 1982, and said he was pleased to recommend approval of
the agreement with Student Agencies.  On motion made by Mr. Cain, seconded
by Mr. Ramsey and carried, the Board approved the agreement between the
University of Kentucky Board of Trustees and the University of Kentucky
Student Agencies, Inc. for the period of July 1, 1986 through June 30,
1987. (See PR ED at the end of the Minutes.)

       0.    Student Health Fees  (PR 6A)

       On motion made by Mr. Lunsford, seconded by Mr. Hershey and carried,
the Board approved the continuation of the $25.00 health fee for each
semester of the 1986-87 academic year.  (See PR 6A at the end of the
Minutes.)

       P.    Agreement Between the University of Kentucky and the McDowell
Cancer Research Foundation  (PR bB)

       On recommendation of Chancellor Bosomworth and President Singletary,
Mrs. Hayes moved that the Board approve the agreement between the
University of Kentucky and the McDowell Cancer Research Foundation
regarding the use of certain rooms in the Lucille Parker Markey Cancer
Center building as presented in PR 6B.  Mrs. Hayes' motion was seconded by
Mr. Brereton Jones and unanimously carried.   (See PR 6B at the end of the
Minutes.)




 





                                 - 5 -




       Q.    Agreement Between University of Kentucky and Kentucky Medical
Services Foundation (PR 6C)

       Chancellor Bosomworth explained that the terms in the document are
essentially the same as those in the agreement approved by the Board on
June 24, 1985. He added that the document has been updated to reflect
dates in the new contract period and to revise the dollar amounts due the
University under Section 5.C and Section 18.A. He explained that Section
18 on Professional Liability Insurance has been revised to reflect the
percentage KMSF will pay for liability insurance, and that the amount for
expenses attendant to the production of clinical income has been increased
from $2,204,241 to $2,237,352.

       Mr. Larry Jones moved approval of the agreement between the Board of
Trustees of the University of Kentucky and Kentucky Medical Services
Foundation, Incorporated as presented in PR 6C. Mr. Jones' motion was
seconded by Mr. Hershey and carried without dissent. (See PR 6C at the end
of the Minutes.)

       R.    Operating Budget for 1986-87  (PR 3C)

       President Singletary reviewed the processes involved in preparing
the Operating Budget and indicated the $488.4 million budget was in many
ways the finest budget during his tenure at the University.

       Using a series of charts, Mr. Edward Carter provided a general
overview of the proposed budget which includes:

       An average increase of 7 percent for faculty salaries and 6 percent
       for staff salaries.

       An allocation of $1,017,000 to enhance five UK Centers of Excellence
       identified in the Five Year Plan and Biennial Request: Center on
       Aging, $300,000; Center for Pharmaceutical Science and Technology,
       $283,00; Center for Cancer Prevention, Education, Research and
       Patient Care, $284,000; Center for Equine Health Care, $100,000; and
       the Graduate Center for Biomedical Engineering, $50,000. In
       addition Mr. Carter indicated that Governor Collins and the General
       Assembly had provided $300,000 to develop the Center of Public
       Administration into a Center of Excellence by expanding flexible
       graduate programs in public administration and maintaining quality.

       $780,000 to improve graduate student support.

       Special funding for equipment: $20,370,000 for academic equipment
       and $10,000,000 for a supercomputer.

       $170.9 million capital budget includes funding for new buildings at
       five community colleges and new campus facilities in Owensboro;
       three new buildings on the Lexington Campus--an agricultural
       engineering building, a regulatory services building, and a building
       and equipment for the University's new robotics center; $55.6
       million for equipment including the $20.3 million for academic
       equipment; $4.8 million for renovation; $1.2 million for deferred
       maintenance; $5.7 million for life safety projects; and $50 million
       to renovate University Hospital.




 





- 6 -



      Mr. Carter also reviewed the major sources of income and
expenditures by categories, indicating the state's appropriation to the
budget is $205.1 million (42 percent); University Hospital funds contribute
16.3 percent ($79.8 million), student fees 9.5 percent, and auxiliary
enterprise operations another 5.1 percent.  The balance of the budget comes
from federal appropriations, endowment income, investments, gifts and
grants, sales and services, fund balances, restricted funds, and affiliated
corporations.

       Mr. McCowan voiced his satisfaction with the budget and expressed
appreciation and thanks to President Singletary and his staff.  He said
that even though the budget does not do all the things he would like, it is
a great step forward and represents the fruits of hard work by a number of
dedicated people in the University throughout the years.

       Mr. Clay then moved that the 1986-87 Operating Budget, as presented,
be approved and that the Chairman of the Board be authorized to negotiate
and execute contracts with the administrative officers providing for the
terms and conditions of their employment and benefits.  Mr. Clay's motion
was seconded by Mr. Cain and unanimously carried.  (See PR 3C at the end of
the Minutes.)

       S.    Executive Session Called

       The Board members, President Singletary, and Mr. Darsie went into
Executive Session to discuss impending litigation.  Following the Executive
Session, the Board reconvened at 3:20 p.m.

       T.    Interim Financial Report  (FCR 1)

       Mr. Clay, Chairman of the Finance Committee, reported that the
Committee had met on the morning of June 25 and reviewed a large number of
agenda items to be presented for action, the first of which was the interim
financial report.  He said the Committee found the University to be "on
target," and then moved that the Board accept the financial report for the
ten months ended April 30, 1986.  The motion was seconded by Mr. Griffin,
and it was so ordered.  (See FCR 1 at the end of the Minutes.)

       U.    Acceptance of Audit for the University of Kentucky Federal
Credit Union (FCU a)

       Mr. Clay then moved that the Board accept the audited financial
statement of the University of Kentucky Federal Credit Union for the
twelve-month period ended December 31, 1985.  The motion was seconded by
Mr. Lassetter, and it was so ordered.  (See FCR 2 at the end of the
Minutes.)

       V.    Disposal of Personal Property  (FCR 3)

       Mr. Clay next moved, and Mrs. Hayes seconded, that the Board approve
the disposal of personal property as presented in FCR 3.  The motion
carried without dissent. (See FCR 3 at the end of the Minutes.)




 





7



       W.    Approval of Lease   (FCR 4)

       On recommendation of the Finance Committee, Mr. Clay moved that the
Vice Chancellor for Administration, Lexington Campus, be authorized to
renew the lease between the University of Kentucky Medical Center, Finance
Division and The Webb Companies as presented in FCR 4. Mr. Clay's motion
was seconded by Mr. Griffin and passed without dissent. (See FCR 4 at the
end of the Minutes.)

       X.    Approval of Lease   (FCR 5)

       Mr. Clay moved that the Vice Chancellor for Administration,
Lexington Campus, be authorized to enter into a lease between the
University of Kentucky Community College System and Midtown Complex of
Owensboro as presented in FCR 5. The motion, which was seconded by
Professor Wilson, was voted on and carried. (See FCR 5 at the end of the
Minutes.)

       Y.    Report of Leases   (FCR 6)

       Mr. Clay moved, and Mr. Watson seconded, that the report of leases
in FCR 6 be accepted. The motion was voted on, and it was so ordered.
(See FCR 6 at the end of the Minutes.)

       Z.    Agreement with Spindletop Hall   (FCR 7)

       Mr. Clay moved that the Board approve the Extension of Agreement
between the University of Kentucky, the University of Kentucky Research
Foundation, and Spindletop Hall as presented in FCR 7.    Mr. Clay's motion
was seconded by Professor Wilson and carried without dissent. (See FCR 7
at the end of the Minutes.)

       AA.   Use of Sorority Reserve   (FCR 8)

       Mr. Clay moved that the Vice Chancellor for Administration,
Lexington Campus, be authorized and directed by the Board of Trustees to
request the Trustee of University of Kentucky Student Housing Bonds of 1964
to make available the sum of $14,000.00 for the purpose of renovating
bathrooms in the Delta Gamma Sorority House located at 450 Pennsylvania
Avenue. The motion, which was seconded by Professor Kemp, was voted on and
unanimously carried. (See FCR 8 at the end of the Minutes.)

        BB.   Establishment of Quasi-Endowment for the Thomas D. Clark Fund
for History and the Humanities (FCR 9)

        The Finance Committee so recommending, on motion made by Mr. Clay,
seconded by Professor Wilson and unanimously carried, the Board authorized
the creation of a quasi-endowment fund to be entitled the "Thomas D. Clark
Fund for History and the Humanities."   (See FCR 9 at the end of the
Minutes.)

        CC.   Establishment of Quasi-Endowment for the Thomas P. Bell
Scholarship Fund   (FUR 1U) 1

        On recommendation of the Finance Committee, Mr. Clay moved that the
Board authorize the creation of a quasi-endowment fund to be entitled the
"Thomas P. Bell Scholarship Fund."   Mr. Clay's motion, which was seconded
by Mr. Lassetter, was voted on and unanimously carried.    (See FCR 10 at the
end of the Minutes.)




 





- 8 -



      DD.   Resolution to Finance Equipment  (FCR 11)

      On motion made by Mr. Clay, seconded by Professor Kemp and carried,
the Board approved a Resolution requesting approval of the State Property
and Buildings Commission to finance equipment acquisition projects
authorized by the 1986 General Assembly through the issuance of State
Property and Buildings Commission bonds. (See FCR 11 at the end of the
Minutes.)

       EE.   Proposed Amendments in the University of Kentucky Retirement
Plan (FCR 12)

       Mr. Clay moved that the proposed amendments in the University of
Kentucky Retirement Plan in FCR 12 be approved. The motion was seconded by
Mrs. Hayes and unanimously carried.  (See FCR 12 at the end of the Minutes.)

       FF.   Adoption of Resolution Approving the Issuance and Sale of
Consolidated Educational Buildings Retunding Revenue Bonds, Series G
(Second Series), Series H (Second Series), and Series I (Second Series),
dated August 1, 198b (FCR 13)

       Mr. Clay reported that the Resolution and official documents
regarding the Consolidated Educational Buildings Refunding Revenue Bonds,
Series G (Second Series), Series H (Second Series), and Series I (Second
Series), dated August 1, 1986, had been prepared by Bond Counsel. These
documents contemplate action by this Board of Trustees or by the Executive
Committee. Mr. Clay noted that present at the meeting is a quorum of the
Board of Trustees.

       Thereupon, a motion was made by Trustee Clay, and seconded by
Trustee Rose that a Resolution entitled:

       A RESOLUTION AUTHORIZING THE ISSUANCE OF UNIVERSITY OF KENTUCKY
       CONSOLIDATED EDUCATIONAL BUILDINGS PEFUNDING REVENUE BONDS, SERIES G
       (SECOND SERIES), SERIES H (SECOND SERIES), AND SERIES I (SECOND
       SERIES), DATED AUGUST 1, 1986,

be adopted, that the official documents relating to the advertisement and
sale of said Refunding Revenue Bonds be approved, and that, as provided in
the sale documents, bids be considered for the purchase of such Bonds by
the Treasurer of the University in the office of the President,
Administration Building, University of Kentucky Campus, Lexington,
Kentucky, until a certain date and hour, and that the University Treasurer,
in cooperation with the President of the University and the Fiscal Agent,
Dupree & Company, Inc., ascertain the best bid for the bonds, subject to
the provision that the actual award of the Bonds to the best bidder shall
be made by action of either the full Board or its Executive Committee at a
meeting scheduled for a later hour on that same date, true copies of which
Resolution and documents are attached to these Minutes. Upon such
Resolution and documents having been read and fully considered, a vote was
taken on the motion to adopt such Resolution, which resulted as follows:




 





- 9-



      Yeas for the Motion                  Nays Against the Motion

      Robert T. McCowan                            None
      William R. Black
      John S. Cain
      Timothy A. Cantrell
      Albert G. Clay
      George W. Griffin
      Edythe Jones Hayes
      Brereton C. Jones
      R. Larry Jones
      James D. Kemp
      T. A. Lassetter
      W. Bruce Lunsford
      Frank Ramsey
      James L. Rose
      Bobby Watson
      Constance P. Wilson

      Thereupon, the Chairman declared that said Resolution had been
adopted, and that said documents had been approved. (See FCR 13 at the end
of the Minutes.)

       GG.   Adoption of Resolution Approving the Issuance and Sale of
Community Colleges Educational Buildings Refunding Revenue Bonds, Series D
(Second Series), dated August 1, 1986. (FCR 15)

       Mr. Clay reported that the Resolution and official documents
regarding the Community Colleges Educational Buildings Refunding Revenue
Bonds, Series D (Second Series), dated August 1, 1986, had been prepared by
Bond Counsel. These documents contemplate action by this Board of Trustees
or by the Executive Committee. Mr. Clay again noted that present at the
meeting is a quorum of the Board of Trustees.

       Thereupon, a motion was made by Trustee Clay, and seconded by
Trustee Rose that a Resolution entitled:

       A RESOLUTION AUTHORIZING THE ISSUANCE OF UNIVERSITY OF KENTUCKY
       COMMUNITY COLLEGES EDUCATIONAL BUILDINGS REFUNDING REVENUE BONDS,
       SERIES D (SECOND SERIES), DATED AUGUST 1, 1986,

be adopted, that the official documents relating to the advertisement and
sale of said Refunding Revenue Bonds be approved, and that, as provided in
the sale documents, bids be considered for the purchase of such Bonds by
the Treasurer of the University in the office of the President,
Administration Building, University of Kentucky Campus, Lexington,
Kentucky, until a certain date and hour, and that the University Treasurer,
in cooperation with the President of the University and the Fiscal Agent,
Dupree & Company, Inc., ascertain the best bid for the bonds, subject to
the provision that the actual award of the Bonds to the best bidder shall
be made by action of either the full Board or its Executive Committee at a
meeting scheduled for a later hour on that same date, true copies of which
Resolution and documents are attached to these Minutes. Upon such
Resolution and documents having been read and fully considered, a vote was.
taken on the motion to adopt such Resolution, which resulted as follows:




 





- 10 -



      Yeas for the Motion                 Nays Against the Motion

      Robert T. McCowan                           None
      William R. Black
      John S. Cain
      Timothy A. Cantrell
      Albert G. Clay
      George W. Griffin
      Edythe Jones Hayes
      Brereton C. Jones
      R. Larry Jones
      James D. Kemp
      T. A. Lassetter
      W. Bruce Lunsford
      Frank Ramsey
      James L. Rose
      Bobby Watson
      Constance P. Wilson

      Thereupon, the Chairman declared that said Resolution had been
adopted, and that said documents had been approved. (See FCR 15 at the end
of the Minutes.)

       HH.   Authorization of President to Fix Time of Sale of Refunding
Bonds, to Publish Notice of Sale of Bonds, and to Take Other Steps with
Respect Thereto (FCR 14 and FCR 16)

       Thereupon, Mr. Clay stated that the timing of such a sale is quite
important and that maximum flexibility should be afforded to enable the
University to have the opportunity to proceed immediately whenever the
market would be considered by the University, with the advice of its Fiscal
Agent, to be favorable for such an offering of Bonds, and that therefore,
it would be appropriate for the Board to authorize the President to
determine the precise time to proceed with the advertisement of the
Refunding Bonds for sale, subject to the condition that no bid for the
purchase of such Refunding Bonds could be accepted without the approval of
the Board or of its Executive Committee (with the advice of the Finance
Committee of the Board).

       Thereupon, a motion was made by Trustee Clay and seconded by Trustee
Rose that a Resolution entitled:

       A RESOLUTION AUTHORIZING THE PRESIDENT OF THE UNIVERSITY TO FIX THE
       DATE AND HOUR OF THE SALE OF UNIVERSITY OF KENTUCKY COMMUNITY
       COLLEGES EDUCATIONAL BUILDINGS REFUNDING REVENUE BONDS, SERIES D
       (SECOND SERIES), DATED AUGUST 1, 1986, TO ARRANGE FOR PUBLICATION OF
       THE NOTICE OF SALE OF THE BONDS WITH RESPECT THERETO, AND TO TAKE
       CERTAIN OTHER ACTION IN CONNECTION THEREWITH, ALL SUBJECT TO THE
       RATIFICATION AND CONFIRMATION OF THE EXECUTIVE COMMITTEE OF THE
       BOARD OF TRUSTEES OR OF THE FULL BOARD OF TRUSTEES,

be adopted. Upon such Resolution and documents having been read and fully
considered, a vote was taken on the motion to adopt such Resolution, which
resulted as follows:




 





- 11 -



       Yeas for the Motion                 Nays Against the Motion

       Robert T. McCowan                           None
       William R. Black
       John S. Cain
       Timothy A. Cantrell
       Albert G. Clay
       George W. Griffin
       Edythe Jones Hayes
       Brereton C. Jones
       R. Larry Jones
       James D. Kemp
       T. A. Lassetter
       W. Bruce Lunsford
       Frank Ramsey
       James L. Rose
       Bobby Watson
       Constance P. Wilson

       Thereupon, the Chairman declared that said motion had been adopted
and the President was authorized to proceed accordingly. (See FCR 16 at
the end of the Minutes.)

       Thereupon, a motion was made by Trustee Clay and seconded by Trustee
Rose that a Resolution entitled:

       A RESOLUTION AUTHORIZING THE PRESIDENT OF THE UNIVERSITY TO FIX THE
       DATE AND HOUR OF THE SALE OF UNIVERSITY OF KENTUCKY CONSOLIDATED
       EDUCATIONAL BUILDINGS REFUNDING REVENUE BONDS, SERIES G (SECOND
       SERIES), SERIES H (SECOND SERIES), AND SERIES I (SECOND SERIES),
       DATED AUGUST 1, 1986, TO ARRANGE FOR PUBLICATION OF THE NOTICE OF
       SALE OF THE BONDS WITH RESPECT THERETO, AND TO TAKE CERTAIN OTHER
       ACTION IN CONNECTION THEREWITH, ALL SUBJECT TO THE RATIFICATION AND
       CONFIRMATION OF THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES OR
       OF THE FULL BOARD OF TRUSTEES,

be adopted. Upon such Resolution and documents having been read and fully
considered. a vote was taken on the motion to adopt such Resolution, which
resulted as follows:

       Yeas for the Motion                 Nays Against the Motion

       Robert T. McCowan                           None
       William R. Black
       John S. Cain
       Timothy A. Cantrell
       Albert G. Clay
       George W. Griffin
       Edythe Jones Hayes
       Brereton C. Jones
       R. Larry Jones
       James D. Kemp
       T. A. Lassetter
       W. Bruce Lunsford
       Frank Ramsey
       James L. Rose
       Bobby Watson
       Constance P. Wilson




 





- 12 -



       Thereupon, the Chairman declared that said motion had been adopted
and the President was authorized to proceed accordingly. (See FCR 14 at
the end of the Minutes.)

       II.  Consideration for Adoption of a Master Resolution Approvin
the Creation and Establishment of an Issue of University of Kentucky
Hospital Revenue Bonds  (FCR 17)

      Mr. Clay reported that the Master Resolution regarding a proposed
issue of University of Kentucky Hospital Revenue Bonds to be issued from
time to time to finance the acquisition, construction, and equipping of
additions, renovations and improvements to the University of Kentucky
Hospital had been prepared by Rubin & Hays as Bond Counsel to the Board and
had been reviewed and approved by the Finance Committee.

      Thereupon, a motion was made by Trustee Clay, and seconded by
Trustee Lassetter that a Resolution entitled:

      A RESOLUTION CREATING AND ESTABLISHING A HOSPITAL PROJECT OF THE
      UNIVERSITY OF KENTUCKY; CREATING AND ESTABLISHING AN ISSUE OF
      UNIVERSITY OF KENTUCKY HOSPITAL REVENUE BONDS OF THE BOARD OF
      TRUSTEES OF THE UNIVERSITY OF KENTUCKY; PROVIDING FOR THE ISSUANCE
      FROM TIME TO TIME OF SAID BONDS; PROVIDING FOR THE PAYMENT OF THE
      PRINCIPAL OF AND INTEREST ON SAID BONDS AND REPEALING ALL
      RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT WITH THIS RESOLUTION

be adopted. Upon such Resolution having been read and fully considered, a
vote was taken on the motion to adopt such Resolutioni, which resulted as
follows:

      Yeas for the Motion                 Nays Against the Motion

      Robert T. McCowan                            None
      William R. Black
      John S. Cain
      Timothy A. Cantrell
      Albert G. Clay
      George W. Griffin
      Edythe Jones Hayes
      Brereton C. Jones
      R. Larry Jones
      James D. Kemp
      T. A. Lassetter
      W. Bruce Lunsford
      Frank Ramsey
      James L. Rose
      Bobby Watson
      Constance P. Wilson

      Thereupon, the Chairman declared that said Resolution had been
adopted. (See FCR 17 at the end of the Minutes.)




 





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      JJ.   Consideration for Adoption of a Series Resolution Approving
the issuance and Sale of University of KentuckyHRevenue Bonds,
Series A. (FCR 17)

      Mr. Clay reported that the Series A Resolution authorizing the
issuance of University of Kentucky Hospital Revenue Bonds, Series A, had
been prepared by Bond Counsel and had been reviewed and approved by the
Finance Committee.

       Thereupon, a motion was made by Trustee Clay, and seconded by
Trustee Lassetter that a Resolution entitled:

      A RESOLUTION AUTHORIZING THE ISSUANCE OF $25,000,000 (OR LESS) OF
      UNIVERSITY OF KENTUCKY HOSPITAL REVENUE BONDS, SERIES A, OF THE
      BOARD OF TRUSTEES OF THE UNIVERSITY OF KENTUCKY

be adopted.