xt7sj38kdw1p https://exploreuk.uky.edu/dips/xt7sj38kdw1p/data/mets.xml Lexington, Kentucky University of Kentucky 2005029 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, 2005-02-mar9. text Minutes of the University of Kentucky Board of Trustees, 2005-02-mar9. 2005 2011 true xt7sj38kdw1p section xt7sj38kdw1p 







MINUTES



                          Meeting of the Board of Trustees
                               University of Kentucky
                                   March 9, 2005
                                     1:00 P.M.
                          18th Floor Patterson Office Tower

Minutes

Accompanying Materials:

President's Report and Action Items

PR 1         President's Report to the Trustees
PR 2         Personnel Actions
PR 3        Appointment/Reappointment of Board of Directors, University of Kentucky Gluck
             Equine Research Foundation, Inc.
PR 4         Director of Hazardous Materials Management Emeritus Be Conferred upon John
             Q. Lowry
PR 5         University Research Professorships
PR 6         Honorary Degree Recipient

Academic Affairs Committee Report

AACR 1       Change in Name of an Educational Unit
AACR 2       Establishment of a Cardiovascular Research Center
AACR 3       Bachelor of Science in Computer Engineering

Finance Committee Report

FCR 1        Gifts and Pledges to the University of Kentucky Oral History Endowment Fund
FCR 2        Gifts and Pledges to the Paul C. Van Booven Fellowship Endowment Fund
FCR 3        Gifts and Pledges to the Kaye Matthews Stone Memorial Endowment Fund for
             Pancreatic Cancer
FCR 4        Barnstable-Brown Party Diamond Derby, Inc. Gift
FCR 5        Donation of the John C. Wyatt/Lexington Herald-Leader Collection (1939-1990) to
             the University of Kentucky Libraries' Audio-Visual Archives
FCR 6        Report of Leases
FCR 7       Approval of Leases
FCR 8        Establishment of the Editors' Fund Quasi-Endowment
FCR 9        Sale of Coleman Farm
FCR 10       Room and Board Rates 2005-06 Academic Year
FCR 11      Acceptance of Interim Financial Report for the University of Kentucky for the Six
             Months Ended December 31, 2004
FCR 12       Capital Construction Report
FCR 13       Patent Assignment Report




 








      Minutes of the Meeting of the Board of Trustees of the University of Kentucky,
Wednesday, March 9, 2005.

      The Board of Trustees of the University of Kentucky met at 1:00 p.m. (Lexington
time) on Wednesday, March 9, 2005, in the Board Room on the 18t1h Floor of Patterson
Office Tower.

      A.    Meeting Opened

      Mr. James Hardymon, Chair, called the meeting to order at 1:00 p.m. and asked
the secretary of the Board, Ms. Elaine Wilson, to call the roll.

      B.    Roll Call

      The following members of the Board of Trustees answered the call of the roll:
Mira Ball, Steve Branscum, Marianne Smith Edge, Ann Haney, James Hardymon
(Chair), Michael Kennedy, Pam May, Billy Joes Miles, Roy Moore, Phillip Patton,
Steven Reed, Frank Shoop, Alice Sparks, Myra Tobin, Rachel Watts, JoEtta Wickliffe,
Billy Wilcoxson, Russ Williams, Elaine Wilson, and Barbara Young. The University
administration was represented by President Lee T. Todd, Jr., Provost Michael Nietzel,
Acting Executive Vice President for Finance and Administration Frank Butler, Executive
Vice President for Health Affairs Michael Karpf, Executive Vice President for Research
Wendy Baldwin, and General Counsel Barbara W. Jones.

        Members of the various news media were also in attendance. A quorum being
present, the Chair declared the meeting officially open for the conduct of business at 1:03
p.m.

      Mr. Hardymon noted the perfect attendance and thanked everyone for attending
the meeting. He also thanked the members who attended the committee meetings earlier
that morning. He referred to the following consent items on the agenda:

      Minutes - January 11, 2005
      PR 2     Personnel Actions
      AACR 1 Change in Name of an Educational Unit
      AACR 2 Establishment of a Cardiovascular Research Center
      AACR 3 Bachelor of Science in Computer Engineering
      FCR 1    Gifts and Pledges to the University of Kentucky Oral History
                   Endowment Fund
      FCR 2    Gifts and Pledges to the Paul C. Van Booven Fellowship Endowment
                   Fund
      FCR 3    Gifts and Pledges to the Kaye Matthews Stone Memorial Endowment
                   Fund for Pancreatic Cancer
      FCR 4    Barnstable-Brown Party Diamond Derby, Inc. Gift
      FCR 5    Donation of the John C. Wyatt/Lexington Herald-Leader Collection




 




2 -



                    (1939-1990) to the University of Kentucky Libraries' Audio-
                    Archives Visual
      FCR 6    Report of Leases

      He asked if there were any comments and then called for a motion for approval of
the consent items. On motion made by Ms. Sparks and seconded by Mr. Reed, the items
on the consent agenda were approved without dissent.

      C.    President's Report

      President Todd said that he would mention some items in PR 1 but encouraged
the Board to review all of the items in PR 1.

      President Todd talked about a series of white papers that he is sending out to the
      Board, all university presidents, legislators, and others. The first one was on
      health care, and the second one was on cost cutting and efficiency moves. The
      third one, on athletics and academics, will be mailed within the next couple of
      weeks.

      U.S. Senator Mitch McConnell visited campus recently. He has been a major
      factor in improving the federal appropriations earmarked for UK from about $5
      million dollars to $27 million. He helped bring $20 million dollars to the
      university this year. During his recent visit, he announced a $3 million funded
      project for planning and design of a new forage and animal laboratory for
      research that will become part of a USDA federal laboratory. UK needs an
      additional $27 million to $30 million to build that facility.

      Another appropriation for the College of Agriculture is $150,000 for the Health
      Education through Extension Leadership (HEEL) program. This is the third or
      fourth year that Senator McConnell has been able to get UK around $1 million to
      keep that program going. That is a program that continues to take on new
      meaning. UK's delegation is very strong in Washington.

      The National Cancer Institute has selected Markey Cancer Center for an
      information service contract. UK was selected as one of 15 organizations for a
      contract to operate its Mid-South Cancer Information Center. The five-year
      contract totals about $6 million.

      Research grants at the close of January were up 19 percent over last year. Federal
      grants were up 11 percent. This is a testament to the ability of the faculty and
      staff to bring money to UK.

      Six UK professors were honored for their outstanding work in the classroom with
      Great Teacher Awards by the Alumni Association.




 




3 -



Governor Ernie Fletcher's energy plan boosts UK's incentive to seek federal
research funds. He has put a group together, and there is a state energy effort now
that recommends a $2 million dollar fund which will help UK leverage federal
contracts. This is a step in the right direction for the state and for UK's
researchers as well.

UK admissions publications has won national awards for the third straight year.
President Todd congratulated Don Witt and his team for their good publications.
He said their energy level is good, and their imagination is even better. The first
Merit Weekend will be held this weekend for the next academic year, and another
record crowd is expected.

There were 48 UK student-athletes named to the 2004-05 Southeastern
Conference fall academic honor roll.

The UK Kernel student newspaper won an overall excellence award. The Kernel
staffers won 28 of 44 writing awards, 9 of 15 photo awards, and 8 of 20 design
awards.

The Lexington Herald-Leader has donated a large photo collection to UK. The
"John C. Wyatt/Lexington Herald-Leader Collection" has been given to UK's
Audio-Visual Archives Department. It is valued at more than $4 million. This
brings new things to UK, especially the William T. Young Library that serves the
state of Kentucky very well.

There was an article in the paper recently about Calvert McCann. Mr. McCann
rode around on a bicycle with a camera and many pictures of life in Lexington
during the racially troubled times of the 1950s and 1960s. Mr. McCann has
numerous remarkable photos which he stored in his house, including photos of
Martin Luther King and the marches that took place. UK is going to make sure
that these photos are exposed to students and everybody in Lexington.

A diversity task force has been created to develop a statewide plan. One of the
university's strategic goals is diversity. The task force had a one-day outing
recently and virtually every dean was there. This was under the leadership of Dr.
Deneese Jones, who will be leaving UK to become the dean of the College of
Education at Longwood University, Farmville, Virginia. She had a one-year
fellowship with the American Council on Education. She returned to UK for a
year and took back the leadership of the Diversity Task Force for the
Commission. President Todd said he was very proud of Dr. Jones and her
achievements.

UK's debate team tied for third among 130 teams at a national invitational debate
tournament. Constantine "Deno" Curris, who started on UK's debate team, will
be the Commencement speaker this year. UK's debate team has been a career




 




4 -



      boost to many people such as Paul Chellgren, Deno Curris, and a few others. The
      debate team is to be congratulated on their continued excellence.

      UK's cheerleaders won an unprecedented 14th national championship. Mr. T.
      Lynn Williamson and that group are remarkable. This is 10 out of the last 11
      years that they have won the competition. They are to be congratulated.

      D.    Announcement of BBSRB Dedication Ceremony

      President Todd announced that the dedication ceremony for the Biomedical
Biological Sciences Research Building (BBSRB) will be at 10:00 a.m. on Monday, April
11. This building is a spectacular addition to the university's research capabilities.
Governor Ernie Fletcher is expected to join the administration to celebrate this occasion.
It is the largest building that the university has built ($67.2 million) and will generate
about $25 million a year in research. He encouraged the Board members to attend the
ceremony.

      E.    Budget Summary

      President Todd said that he would give a brief summary of the budget that had
passed. He noted that the Board would not be discussing tuition at this meeting.

      President Todd said that the University would get more state funds in 2005-06,
and this is the first increase since he took office as president. It provides a total of
$18,661,100 million in new operating funds, a 6.3 percent increase in recurring state
appropriations. That amount includes $5,413,000 million earmarked for various things.

      County Extension Agents salaries - $1 million
      Kentucky Health Care Infrastructure faculty position - $175,000
      Collaborative Center for Literacy Development operations increase
           in each year - $600,000
      Maintenance and operation of the West Liberty Technical Center - $750,000
      Maintenance and operations of new facilities, including Biomedical/
           Biological Sciences Research Building (BBSRB), the Center
           for Rural Health (Hazard), the Women's Cancer Facility, and the
           Gill Heart Institute - about $2.89 million

      The remaining $13,248,100 is available for current operations (a 4.5 percent
increase). $5,533,400 million was designated as restoration of last year's cuts. Now that
there are final numbers, we will be going through the tuition calculations and trying to
make decisions on how we will use those funds.

      One cent of the tobacco tax has been dedicated to a cancer research fund. That
tax is estimated to generate $5 million per year ($2.5 million to UK and $2.5 million to U
of L). The university must match that money, and given the success of the "Bucks for




 







Brains" program, it should be possible. That will give the university $5 million of
additional money for cancer research.

       $500,000 has been allotted to establish the Louie B. Nunn Oral History program
in the current fiscal year. These funds are eligible for the "Bucks for Brains" match. The
oral history program is quite an asset to the university.

       The university was provided $40 million of state bonds to begin the
Biological/Pharmaceutical Complex. It is basically a $120 million project.

       President Todd recognized Dr. Deneese Jones in the audience and apologized for
not seeing her earlier. He asked the Board to give Dr. Jones a round of applause for her
promotion.

       He then continued with his summary of the budget, noting that the administration
pushed hard to get the full $40 million in state-supported bonds because the Council on
Postsecondary Education (CPE) had a policy that requires the university to pay 40
percent of the cost of research building. There is no participation requirement with the
other state institutions except for the University of Louisville. At a time when UK is
trying to catch up with others in the research capacity, he said that he does not agree with
the council's policy. He pointed out that this $40 million will not generate any income.
It will either be a shell or a platform. It will help get the infrastructure. The other $80
million will have to be considered in the 2006-08 budget.

       President Todd mentioned that the university has 938 applications for the College
of Pharmacy while it has only 100 positions to fill. Kentucky students represent 90
percent of those applications. The state is short 400 pharmacists at the present time. The
university needs the Pharmaceutical Complex building.

       The university received $8.5 million of state bonds for the Animal Diagnostic
Center. He pointed out that the university is not accredited in this area, but this will help
the university get accredited. This is the first part of the $25 million total replacement
project. The Gluck Equine Research Board of Directors and the thoroughbred industry as
well as the equine industry in general are very pleased with this outcome.

       The university received a total project scope of $200 million for the patient care
facility, including $100 million worth of authority to issue bonds. The hospital will
spend $ 100 million of its own money. Every one from the Governor to the head of
appropriations in both the House and the Senate are very committed to this project and
should authorize the rest of the needed money to the university in 2006-08. This gets the
university going on a very major project, the biggest project in the university's history.

       The university received $24 million worth of bonding authority for the Student
Health Facility, and that is very important as part of the process of trying to change the
whole medical complex.




 




6 -



      The university received $7 million worth of bonding authority for the Basketball
Practice Facility. The budget also authorizes the university to complete the full scope of
the project with institutional funds.

      The university received $270, 000 in state funds to design an Eastern Kentucky
University/UK Dairy Research and Education Center. This will be a joint dairy merger at
Eastern's Meadowbrook Farm. It will allow us to remove dairy operations from the
Coldstream space and put it in a place that will be more appropriate.

      President Todd said that he is very pleased the budget passed. There will be a
final vote on the budget within two weeks.

      F.    Appointment/Reappointment of Board of Directors, University of
Kentucky Gluck Equine Research Foundation, Inc. (PR 3)

      President Todd recommended that the Board approve the appointments of Alan
Balch, Jamie MacLeod, HH Maktoum al Maktoum, Nick Nicholson, and Garret
O'Rourke and the reappointment of Nadia Sanan, Bill Bernard, and Walter Zent to the
Board of Directors of the Gluck Equine Research Foundation for four-year terms. He
also recommended that Alice Chandler, who served recently as chair of this board, be
appointed an honorary member of the board. On motion made by Mr. Shoop, seconded
by Mr. Branscum and carried without dissent, PR 3 was approved. (See PR 3 at the end
of the Minutes.)

      G.    Director of Hazardous Materials Management Emeritus Be Conferred
upon John Q. Lowry (PR 4)

      President Todd said that he was pleased to recommend that Mr. John Lowry be
named Staff Emeritus in recognition of his long service and dedication to the University
of Kentucky for more than 39 years. He asked Mr. Lowry to stand and he read the
following background information about Mr. Lowry:

      In 1966, Mr. Lowry began his career in the Medical Center, Department of
Medicine, as a Senior Research Technician. He was named Biosafety Officer/Hazardous
Waste Manager in 1980. From 1981 to 1990, he served as the Assistant Director of
Human Safety and Environmental Health. In 1991, he was named Director of Hazardous
Materials Management within the Environmental Health and Safety Division. He served
in this capacity until 2003 when he was named the Responsible Official for the
university's Select Agent Program. Mr. Lowry spend his career promoting
environmental health and safety at the University of Kentucky to ensure safe and healthy
conditions for work and study, protection of the environment, and compliance with
applicable laws and regulations.

      President Todd thanked Mr. Lowry for his years of service to the university. Mr.
Lowry received a round of applause. (See PR 4 at the end of the Minutes.)




 




7



      H.    University Research Professorships (PR 5)

      President Todd said that these professors are selected so they can focus on their
research. He recommended that the Board of Trustees approve the naming of Professor
Sylvia Daunert, Department of Chemistry; Professor Linda Dwoskin, Department of
Pharmaceutical Sciences; Stephen Scheff, Department of Anatomy and Neurobiology;
and Isaac Shlosman, Department of Physics and Astronomy, as University Professors for
2005-06. He asked Professors Daunert and Dwoskin to stand and be recognized,
following which they received a round of applause. President Todd said that he is proud
of their work and the recognition they bring to the university. Ms. Haney moved
approval of PR 5. Her motion was seconded by Ms. Smith Edge and carried without
dissent. (See PR 5 at the end of the Minutes.)

      I.    Honorary Degree Recipient (PR 6)

      President Todd said it was his pleasure to recommend that the Board approve
awarding the honorary degree of Doctor of Science to Stanley Platek, the vice president
of research and development of Commonwealth Aluminum Corporation. Dean Thomas
Lester and Dr. Subodh Das indicated in their nomination that Dr. Platek has profoundly
changed aluminum production in partnership with the University of Kentucky.
Aluminum is an extremely important industry for the state. The consortium of aluminum
companies is working with CAT and SECAT, and they were recently recognized as a
Sloan Center for Manufacturing Excellence.

      Dr. Platek has come up with a procedure to reduce energy consumption and
produce less expensive, higher quality metal for consumers and has integrated the
resources of business and federal labs in universities to try to save the entire aluminum
industry in Kentucky's funding. Dr. Platek will be recognized at Commencement.

      On motion made by Mr. Wilcoxson and seconded by Ms. Ball, PR 6 was
approved without dissent. (See PR 6 at the end of the Minutes.)

      President Todd talked about and showed the FAB 5 poster that was distributed at
a recent basketball game. This poster recognizes outstanding faculty and students: Dr.
David Moliterno, Dr. Subodh Das, Stephanie Logsdon, Dr. John Connolly, and Conley
Chaney. He said that he is very pleased with the campaign, and another poster will be
coming out in a few weeks. With these five academic players and others like them, the
university's efforts in the classroom and research lab are drawing national acclaim as
well.

      He said that he hoped to send the posters to all high schools in Kentucky to show
the students the kind of people that the university has playing in the research field with
the top universities that UK is trying to emulate.




 




- 8 -



       J.    College of Fine Arts Report

       Provost Nietzel said that the College of Fine Arts is one of the most visible and
certainly the most audible unit at the university. It is the home of performing, creative,
and dramatic arts at UK. It is particularly important for a university to have a strong Fine
Arts program because of its obligation to cultivate the aesthetic taste of students in
particular, but it is especially essential at a land-grant institution to have a strong College
of Fine Arts. It affords the university a terrific opportunity for outreach to the community
and for improving the overall quality of life of the local community and the entire
Commonwealth. He said it was his privilege to introduce Dean Robert Shay who will
give an overview of the College of Fine Arts at UK.

       Provost Nietzel said that Dean Shay has been the Dean of Fine Arts for the past
seven years. It has been his pleasure to work closely with Dean Shay as a colleague dean
and as provost through those seven years. He paid tribute to Dean Shay for the
development of a number of wonderful programs in the College of Fine Arts to advance
the outreach mission through the extension service here.

       Dean Shay expressed appreciation for the opportunity to speak to the Board. He
introduced the college, focusing on its relationship to the academic core of the university
from the perspective of the individual components of Dream, Challenge, Succeed. Using
a Power Point presentation, Dean Shay began with a description of the College's three-
year pilot project collaboration with the College of Agriculture and the UK Medical
Center in instituting in Pike County the nation's first cooperative extension agent with a
fine arts focus. He noted that the creative resources of the College would be at the
disposal of the agent, Stephanie Richards, a Pike County native and graduate of UK's
Theatre Department, in the College's quest to "elevate the quality of life for all
Kentuckians."

       The creative research of the faculty and students was a focus of Dean Shay's
presentation. The faculty members of the College, like their counterparts throughout the
university "discover, share, and apply new knowledge" with the creation of new
knowledge that speaks to a different side of the human spirit. He noted this creativity
embraced other disciplines and illustrated this relationship with medicine by showing a
powerful example of art from a faculty member whose photographic images documented
her cancer treatment. Dean Shay explained that the practice of art and medicine both
required a vast store of knowledge enhanced with an intuitive awareness of the human
spirit.

       Noting that the College of Fine Arts has more than its fair share of scholars, Dean
Shay listed the many accomplishments of its distinguished faculty and outstanding
students. From highly visible activities such as producing the acclaimed "The Lion
King" for Walt Disney Productions and creating art that is displayed in an international
airport to having three faculty members who were presidents of their respective
international professional organizations in the same year, the College of Fine Arts is




 




9 -



significantly increasing its number of majors yearly and receiving national and
international recognition all with no increase in faculty head count, with budget
reductions and facilities which were designed 50 years ago for a student and faculty
population of less than half of what it is now. Dean Shay specifically mentioned the
decaying Reynolds Building, housing the art studio classrooms, and located in the most
rapidly changing neighborhood on campus as well as the proposed new School of Music
building which would be located in one of the most prominent sites on campus.

      Finally, Dean Shay argued that the arts could be an economic incubator within
communities and, in many instances it can generate more revenue for cities than sports.
He cited two seemingly contradictory examples of this, saying that most graduates from
the Arts Administration program are finding employment in their field while the
Singletary Center loses money in its mission of providing fine arts to the academic and
statewide community. He asked the board to continue to provide both public and private
support to the College and challenged the board to contemplate what life would be like in
their own communities without the power of the arts.

      Mr. Hardymon and President Todd thanked Dean Shay for his fine performance
in presenting his college.

      Ms. Sparks praised the band for the remarkable energy that everyone receives
from the musicians at the football and basketball games.

      Mr. Hardymon asked the board to refer back to PR 4 to take a vote. Mr. Shoop
moved approval of PR 4. Ms. Tobin seconded the motion, and it carried without dissent.
(See PR 4 at the end of the Minutes.)

      K.    Academic Affairs Committee Report

      Ms. Sparks, chair of the Academic Affairs Committee, reported that the
committee met that morning, and the items on the agenda were on the consent agenda
which had been approved.

      L.    Finance Committee Report

      Ms. Wickliffe, chair of the Finance Committee, reported that the committee met
that morning along with most of the Trustees. She reviewed the items on the committee's
agenda.

      M.    Gifts and Pledges (FCR 1 through FCR 6

      Ms. Wickliffe said that FCR 1 through 6 were gifts and pledges on the consent
agenda. These gifts and pledges total $614,979. They are available to be matched with
the state Research Challenge Trust Fund. With these gifts and pledges, the university
will have matched $12.1 million of the available $66.7 million of state funds.




 




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      N.    Approval of Leases (FCR 7)

      Ms. Wickliffe said that FCR 7 is approval of two leases. The first lease is
between the University of Kentucky and Coldstream Ventures One. The second lease is
between the University of Kentucky Family Practice and The Lowry Group. Anything
exceeding $30,000 must be approved by the Board of Trustees. On behalf of the Finance
Committee, she moved the adoption of FCR 7. Ms. Sparks seconded her motion, and it
carried without dissent. (See FCR 7 at the end of the Minutes.)

      0.    Establishment of the Editors' Fund Quasi-Endowment (FCR 8)

      Ms. Wickliffe said that FCR 8 is the establishment of The Editor's Fund Quasi-
Endowment. At the December meeting the Board authorized the treasurer to negotiate
and execute the sale of journal Growth and Change. A Journal of Urban and Regional
Policy. The sale took place on January 1. Proceeds in the amount of $199,980 have been
received. On behalf of the Finance Committee, Ms. Wickliffe moved the acceptance of
FCR 8. Ms. Smith Edge seconded her motion, and it carried. (See FCR 8 at the end of
the Minutes.)

      P.    Sale of Coleman Farm (FCR 9)

      Ms. Wickliffe said that FCR 9 is the sale of the Coleman Farm. The farm is 217
acres and is located in Nelson County, Kentucky. The University of Kentucky is the
beneficiary of one-half interest in this farm. The other half goes to the Christian Church
Children's Campus of Danville, Kentucky. This farm was appraised in 1999. The
university will update the appraisal. Both parties have agreed to sell the farm provided
that it will not to be sold for any less than the current appraised value. On behalf of the
Finance Committee, Ms. Wickliffe moved the adoption of FCR 9. Mr. Miles seconded
the motion, and it carried without dissent. (See FCR 9 at the end of the Minutes.)

      Q.    Room and Board Rates 2005-06 Academic Year (FCR 10)

      Ms. Wickliffe said that FCR 10 is the room and board rates for the Fall 2005 and
Spring 2006 semesters. She noted that most of the trustees attended the committee
meeting but asked if everyone received the dining sheet that was distributed. She
reviewed the sheet and called attention to the revenue side under housing. The
undergraduate rental income consists of 4,652 beds in Blazer Hall and 591 beds in the
Greg Page Apartments. The housing and rental rates are detailed in FCR 10, and this
reflects an increase of 9 percent or $278 annually. She presented the following outline
for housing:

      The graduate and family revenues include Cooperstown, Shawneetown,
      Commonwealth Village, and some apartments in Greg Page. These rents will
      increase by 2 percent in 2005-06.




 




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       The new student housing revenues consist of 684 beds and those rental fees are
       $4,250 per academic year.

       Most of the increases in expense lines are a result of the four new residence halls.
       Salaries and benefits are budgeted to increase by 3 percent for existing
       employees. To this, there is the addition of four staff members, two custodians,
       and two maintenance workers for the four new residence halls being constructed.

       The utilities are budgeted to increase by 10 percent for the existing buildings.
       The additional utility amounts will be mainly for the new residence halls, and they
       are budgeted at $825,000.

       The renewals and replacements were increased in 2004-05, as they were much
       needed. The need is not expected to be as great in 2005-06.

       The debt service item is expected to increase due to the debt payments of $46
       million of the Housing and Dining bonds. They were sold to finance the
       construction of these four new residence halls. They are 20-year bonds. Housing
       and Dining has about $75 million of outstanding bonds.

       Telephone expenses reflect an estimated 5 percent increase to the phone and data
       lines in the existing residence halls and the addition of the telephone and data
       lines in the four new residence halls.

       The operating expenses are predominately for the operation of the four new
       residence halls.

       The student life and the RA expenses are increased mainly due to the operation of
       the four new residence halls. We are expecting to hire four hall directors, 36-40
       new RAs, and four front desk staff.

       Ms. Wickliffe said that concluded her general outline of housing. She recognized
the staff for their excellent job of presenting this information to the Finance Committee.
She noted the visual aids were still available for anyone who did not attend the Finance
Committee meeting.

       Ms. Wickliffe said that the dining service is requesting a 7 percent increase in
price of the minimum required dining program. It will go from $825 per semester to
$883, an increase of $58 per semester. She then reviewed the following information for
dinning:

       Compared to UK benchmarks, UK has about the third lowest cost dining plan.
       Compared to Kentucky's public universities, UK has the fourth lowest cost dining
       plan out of eight public institutions. Kentucky State University, Northern
       Kentucky University, Eastern Kentucky University, and the University of
       Louisville all charge more than UK.




 




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      Dining services will also be changing from a cash-declining balance plan to a
      dining program next year. UK will be offering seven different dining programs
      instead of just one. The new programs range anywhere from three meals a day to
      one meal per day, and they allow students the opportunity to choose a meal that
      fits their needs best.

      The minimum plan will offer 123 unlimited choice meals each semester, or about
      eight meals on average per week for $883.