xt7zkh0dvz73 https://exploreuk.uky.edu/dips/xt7zkh0dvz73/data/mets.xml Lexington, Kentucky University of Kentucky 19780520 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, 1978-05-jun20. text Minutes of the University of Kentucky Board of Trustees, 1978-05-jun20. 1978 2011 true xt7zkh0dvz73 section xt7zkh0dvz73 









      Minutes of the Special Called Meeting of the Board of Trustees,
University of Kentucky, Tuesday, June 20, 1978.


      The Board of Trustees of the University of Kentucky convened in
the Board Room on the eighteenth floor of the Patterson Office Tower on the
Lexington campus at 2:00 p. m. (EDT), on Tuesday, June 20, 1978, pursuant
to a Notice which was sent by first class mail, postage prepaid, to all
members of the Board by the Secretary on June 6, 1978, with distribution of
copies to all parties required to be given notice pursuant to KRS 61. 825.
The following members answered the call of the roll: Mr. William B.
Sturgill, Chairman, Mr. William R. Black, Mrs. Betty Carol Clark,
Mr. Albert G. Clay, former Governor Albert B. Chandler, Mr. George
W. Griffin, Mr. Homer W. Ramsey, Mrs. Sally Hermansdorfer, Mr.
L. D. Gorman, Mr. Thomas B. Kessinger, Dr. David A. Hull, Mr.
Frank Ramsey, Professor Michael Adelstein, Professor Paul G. Sears,
and Mr. Eugene Tichenor. Absent were Mr. Richard E. Cooper (who is
officially a member of the Board until his replacement is sworn in), Mr.
John R. Gaines, Mr. Zirl A. Palmer, and Dr. John R. Woodyard. The
University Administration was represented by President Otis A. Singletary;
Vice Presidents Lewis W. Cochran, Peter P. Bosomworth, Raymond
R. Hornback, Jack C. Blanton, John T. Smith, and Donald B. Clapp; Dr.
David Stockham representing Vice President Robert Zumwinkle; Dr. Wimberly
C. Royster, Dean of the Graduate School and Coordinator of Research;
and Mr. John C. Darsie, Legal Counsel.


      A. Meeting Opened

      The Chairman called the meeting to order at 2:00 p.m., and
the Invocation was pronounced by Mrs. Betty Carol Clark. Following call
of the roll, to which 15 answered with only 4 being absent, the Chairman
announced that a quorum was present for the conduct of business, and
called the meeting to order at 2:03 o'clock.


       B. Oath of Office Administered

       Mr. Sturgill welcomed the newest member of the Board, Mr. Eugene
Tichenor, student member. At the Chairman's request, the oath of office
was administered to Mr. Tichenor by Mr. John Darsie, Legal Counsel.


       C. Comments by President Singletary

       President Singletary made several clarifying comments relative to
the controversial athletic dormitory situation which recently had received an
unusually high level of coverage in the news media. He reviewed that
Governor Carroll's offer of assistance was declined in a joint statement




 






-2-



issued last Friday by Dr. J. David Grissom, Chairman of the Council on
Higher Education, and himself. President Singletary then requested and
received authorization from the Board to express to Governor Carroll the
University's thanks and appreciation for the intended helpfulness and fairness
of treatment inherent in the Governor's offer to assist the University of
Kentucky and its athletic program. Mr. Sturgill, as Chairman of the Board,
indicated that he also would convey a similar expression to Governor Carroll
on behalf of the Board.



      D. Authorization of $6, 325, 000 "University of Kentucky Housing
and Dining System Revenue Bonds, Series J, " and the Requisite Series J
Supplemental Trust Indenture; Delegation to the Executive Committee of
Full Power to Act in the Sale Thereof; Authorization of 'University of
Kentucky Housing and Dining System Revenue Bonds, Series K, " in an
Amount Estimated to Be $284, 000 and Delegation of Power to the Executive
Committee To Make Final Determinations With Regard to the Details Thereof
and Proceed in the Public Sale Thereof; Requesting that the State Property and
Buildings Commission Approve and Authorize the Issuance of Said Series J
and Series K Revenue Bond Issues.

      Board Member Albert Clay introduced, caused to be read and moved
immediate adoption of a proposed Resolution, copies of which had been sent
out to all Board Members with the Notice of the meeting, as follows:

      A RESOLUTION OF THE BOARD OF TRUSTEES OF THE
      UNIVERSITY OF KENTUCKY (A) DETERMINING THAT THERE
      IS A PRESENT NEED FOR THE IMMEDIATE AUTHORIZATION,
      PUBLIC SALE AND ISSUANCE OF ''UNIVERSITY OF KENTUCKY
      HOUSING AND DINING SYSTEM REVENUE BONDS, SERIES J, "
      IN THE PRINCIPAL AMOUNT OF $6, 325, 000; (B) DETERMINING
      THAT COMPLIANCE HAS BEEN SHOWN WITH PARITY BOND
      CONDITIONS SET FORTH IN THE CONTROLLING TRUST INDENTURE;
      (C) AUTHORIZING SUCH SERIES J BONDS; (D) APPROVING THE FORM
      OF SERIES J SUPPLEMENTAL TRUST INDENTURE PREPARED
      AND TENDERED BY THE FISCAL AGENT AND BOND COUNSEL;
      (E) DETERMINING THAT THERE WILL SHORTLY BE A NEED FOR
      THE AUTHORIZATION AND ISSUANCE OF "UNIVERSITY OF KENTUCKY
      HOUSING AND DINING SYSTEM REVENUE BONDS, SERIES K, " IN
      AN AMOUNT PRESENTLY ESTIMATED TO BE $284, 000, AND THAT
      THE POWER TO AUTHORIZE THE SAME, DETERMINE THE
      DETAILS THEREOF AND PROCEED IN THE PUBLIC SALE THEREOF
      IS DELEGATED TO THE BOARD' S EXECUTIVE COMMITTEE,
      TOGETHER WITH THE POWER TO RECEIVE, CONSIDER AND
      ACT UPON BIDS RECEIVED AT PUBLIC SALE FOR THE SERIES J
      BONDS IN ORDER THAT TH-1EY MAY BE ISSUED WITHOUT DELAY;




 






-3-



     (F) REQUESTING THAT THE STATE PROPERTY AND BUILDINGS
     COMMISSION APPROVE AND AUTHORIZE THE ISSUANCE OF THE
     SERIES J AND SERIES K BOND ISSUES: AND (G) REQUESTING
     THAT THE STATE PROPERTY AND BUILDINGS COMMISSION
     TAKE SPECIFIC ACTION, AS IN THE PAST, AUTHORIZING THE
     INCLUSION IN EACH OF SAID BOND ISSUES OF A COVENANT OF
     THE COMMONWEALTH TO PAY THE INCREASED COST OF
     OPERATING AND MAINTAINING THE UNIVERSITY'S HOUSING
     AND DINING SYSTEM, AS SO ENLARGED, TO THE EXTENT THAT
     REVENUES OF THE SYSTEM MAY BE INSUFFICIENT FOR THAT
     PURPOSE AFTER PROVISION IS MADE FROM TIME TO TIME
     FOR THE PAYMENT OF ALL PRINCIPAL AND INTEREST REQUIRE-
     MENTS AND THE ACCUMULATION OF PRESCRIBED RESERVES.

and a true copy of which is attached to these minutes. The motion for the
adoption of said Resolution was seconded by Board Member George Griffin.
After full discussion the Chairman put the question and upon call of the roll
the vote thereon was recorded as follows: Voting "Aye": Chairman William
B. Sturgill, Vice Chairman Albert G. Clay, Mr. William R. Black, Governor
Albert Benjamin Chandler, Mrs. Betty Carol Clark, Mr. L. D. Gorman, Mr.
George W. Griffin, Jr., Mrs. Sally Hermansdorfer, Dr. David A. Hull, Mr.
Thomas B. Kessinger, Mt. Frank Ramsey, Jr., Mr. Homer W. Ramsey,
Mr. Eugene Tichenor, Professor Paul Sears and Professor Michael Adelstein.
Voting "Nay": None.


      The Chairman thereupon announced that said Resolution had been
duly adopted and that the same was in full force and effect. (See FCR 1
at the end of the Minutes. )


      E. Board of Trustees Resolution Regarding Medical Practice Plan (MCCRI)

      Mr. Black, Chairman of the Board's Medical Center Committee,
expressed the thanks of the committee to President Singletary and his staff;
Vice President Bosomworth and his staff; and Dean Clawson and his staff for
their assistance in the preparation of this document. Mr. Black then called
on the President to make some introductory overview comments about the
new geographic full-time medical service plan for the University of Kentucky
College of Medicine (hereinafter referred to as the "new plan"). The President
in turn called on Vice President Bosomworth, Dean Clawson, and Vice President
Clapp for consecutive presentations relative to the new plan.

      Vice President Bosomworth's discussion related to the contents of,
and difference between, the existing Physicians' Service Plan and the new plan.




 







-4-



       Dean Clawson discussed, both qualitatively and quantitatively, the
responses of the faculties in the departments of the College of Medicine to the
new plan. He also expressed his appreciation to the Medical Center Committee,
the concerned University administrators and their staff, and the faculty of the
College of Medicine for their combined efforts in the development of this new
plan.

       Vice President Clapp next discussed the concerns and remaining
essential steps to be taken during the transition period associated with the
implementation of the new plan.

       Mr. Black moved that the policy statement contained in MCCR I
be approved. His motion was seconded by Governor Chandler and passed
without dissent. (See MCCR I at the end of the Minutes.)


       F. Meeting Adjourned

       Since there were no other matters to come before the meeting, on
motion duly made, seconded, and carried the chairman declared the
meeting officially adjourned at 3:05 o'clock.

                                    Respectfully submitted,




                                    Paul G. Sears, Secretary
                                    Board of Trustees






















(FCR 1 and MCCR 1 which follow areofficial parts of the Minutes of the
Meeting. )




 









                                   Office of the President
                                   June 20, 1978

                                       FG R I

Members, Board of Trustees:


           RESOLUTION AUTHORIZING ISSUANCE
           OF HOUSING & DINING SYSTEM
                   REVENUE BONDS


Recommendation: That the Board of Trustees approve
the following: A Resolution Authorizing the Issuance
of University Housing and Dining System Revenue Bonds,
Series J, in the principal amount of $6,325,000, and
Series K, in an amount presently estimated to be
$284,000, a copy of which is attached and made a part
of this resolution. Further, that the Board authorize
the publication of a Notice of Sale of Bonds and the
dissemination of an Official Statement and Official
Bid Form, copies of which are attached and made a part
of this resolution.

Background: Series J, University of Kentucky Housing
and Dining System Revenue Bonds, will be issued to
provide funds for construction of 200 apartment type
units of housing for 650 students on a 23 acre tract
on the University's south campus, and to provide funds
for the acquisition of three existing apartment buildings
located adjacent to the campus and containing 34 apart-
ments, the purchase of which having been previously
authorized by the Board.

Series K, University of Kentucky Housing and Dining
System Revenue Bonds, will be issued to provide funds
to replace windows and install thermostat control valves
in Boyd, Patterson and Jewell Resident Halls, which
would save approximately 35% of the heating energy
presently required. Housing and Urban Development (HUD)
has reserved funds to make a loan at 3% interest for
this project.



J u me  20 , 1978.



Action:  Approved X Disapproved      Other



Date:




 








       A RESOLUTION OF THE BOARD OF TRUSTEES OF THE
       UNIVERSITY OF KENTUCKY (A) DETERMINING THAT THERE
       IS A PRESENT NEED FOR THE IMTEDIATE AUTHORIZATION,
       PUBLIC SALE AND ISSUANCE OF "UNIVERSITY OF KENTUCKY
       HOUSING AND DINING SYSTEM REVENUE BONDS, SERIES J,"
       IN THE PRINCIPAL AMOUNT OF $6,325,000; (B) DETERMINING
       THAT COMPLIANCE HAS BEEN SHOWN WITH PARITY BOND CONDITIONS
       SET FORTH IN THE CONTROLLING TRUST INDENTURE; (C) AUTHOR-
       IZING SUCH SERIES J BONDS; (D) APPROVING THE FORM OF
       SERIES J SUPPLEMENTAL TRUST INDENTURE PREPARED AND
       TENDERED BY THE FISCAL AGENT AND BOND COUNSEL; (E) DETER-
       MINING THAT THERE WILL SHORTLY BE A NEED FOR THE AUTHORI-
       ZAT1ON AND ISSUANCE OF "UNIVERSITY OF KENTUCKY HOUSING
       AND DINING SYSTEM REVENUE BONDS, SERIES K," IN AN AMOUNT
       PRESENTLY ESTIMATED TO BE $284,000, AND THAT THE POWfER
       TO AUTHORIZE THE SAME, DETERIMINE THE DETAILS THEREOF AND
       PROCEED IN THE PUBLIC SALE THEREOF IS DELEGATED TO THE
       BOARD'S EXECUTIVE COMMITTEE, TOGETHER WITH THE POWER TO
       RECEIVE, CONSIDER AND ACT UPON BIDS RECEIVED AT PUBLIC
       SALE FOR THE SERIES J BONDS IN ORDER THAT THEY MAY BE
       ISSUED WITHOUT DELAY; (F) REQUESTING THAT THE STATE
       PROPERTY AND BUILDINGS COMMISSION APPROVE AND AUTHORIZE
       THE ISSUANCE OF THE SERIES J AND SERIES K BOND ISSUES;
       AND (G) REQUESTING THAT THE STATE PROPERTY AND BUILDINGS
       COMMISSION TAKE SPECIFIC ACTION, AS IN THE PAST,
       AUTHORIZING THE INCLUSION IN EACH OF SAID BOND ISSUES
       OF A COVENANT OF THE COMMONWEALTI- TO PAY THE INCREASED
       COST OF OPERATING AND MAINTAINING THE UNIVERSITY'S HOUSING
       AND DINING SYSTEM, AS SO ENLARGED, TO THE EXTENT THAT
       REVENUES OF THE SYSTEM MAY BE INSUFFICIENT FOR THAT PURPOSE
       AFTER PROVISION IS MADE FROM TINE TO TIME FOR THIE PAYMlENT
       OF ALL PRINCIPAL AND INTEREST REQUIREMENTS AND THE
       ACCUMULATION OF PRESCRIBED RESERVES.



         THE BOARD OF TRUSTEES OF THE UNIVERSITY OF KENTUCKY DOES

IIEREBY RESOLVE * AS FOLLOWS:

          Section 1. History, Background and Recommendations.

          Certain past actions of this Board and of other public

bodies and public officers, together with recent developments and

recomnmendations concerning them, are necessary to an understanding



- I




 








of the purposes intended to be accomplished by this Resolution

and they are herein recited:

          (A)  In 1966 this Board issued its $35,075,000 "University

of Kentucky Housing and Dining System Revenue Bonds," Series A to

Series I, Inclusive, pursuant to a Trust Indenture dated as of

June 1, 1965, made by this Board with Farmers Bank & Capital Trust

Company, Frankfort, Kentucky, as Trustee (hereinafter the "1965

Trust Indenture" or "Indenture"). Since that time this Board has not

authorized or issued any additional Series of such Bonds.

          (B) In 1977 increased student enrollment gave rise to an

urgent need and demand for additional student housing facilities at

the Main Campus of the University. With authority from the State

Property and Buildings Commission, and on an emergency basis, this

Board advanced $381,000 from its reserves in the purchase and

acquisition of 34 apartment units in Lexington, Kentucky, generally

known as the "Linden Walk-Rose Lane Apartments," consisting of

three buildings: (i) at 404 Linden Walk, comprising 16 efficiency

units, (ii) at 411 Linden Walk, comprising 8 1-bedroom units, and

(iii) at 468 Rose Lane, comprising 10 efficiency units; and made a

determination that the issuance of another Series of its Housing and

Dining System Revenue Bonds pursuant to the 1965 Trust Indenture

would be necessary, and that this advance would be reimbursed to

this Board from the proceeds of the newm Series of such Bonds when the

same are issued.  It was ascertained upon advice of legal counsel



- 2 -




 








that this Board's statutory authority to finance educational build-

ings extends to the purchase and acquisition of existing buildings

as well as to the erection of new buildings, according to the

decision of the Highest Court of the Commonwealth in Morgan v.

Fayette County Board of Education (1943), 172 SW 2d 64, construing

statutes which are incorporated by reference into this Board's

statutory powers as sec forth in KRS 162.350.

          (C) The increased demand for additional student housing

facilities was not satisfied by the acquisition of the Linden Walk-

Rose Lane Apartments. With authority from the Council on Public

Higher Education in Kentucky and with the approval of the State

Property and Buildings Commission and of the Secretary of the

Executive Department for Finance and Administration (hereinafter,

the "Secretary"), this Board authorized the undertaking of a projects

for the construction of a building on the Main Campus of the Univer-

sity at Lexington to contain 200 apartment-type units of housing

designed to accommodate students or married student families. The

Commonwealth's Division of Purchases publicly solicited the submission

of proposals for the design and construction thereof, including

mechanical systems and site improvement, but excluding movable

furnishings and fixtures, through a Design-Build Concept commonly

referred to as "Turnkey Contracting" under authority of KRS 45.360(1l),

whereby the Division of Purchases is directed to attempt in every

practicable way to insure the supplyint of the real needs of the



- 3 -




 







Commonwealth at the lowest possible cost. Responsive to such solici-

tation the Division of Purchases has received a joint proposal of

C. E. Pennington, individually, and C. E. Pennington Company, Inc., a

responsible contracting corporation of Lexington, Kentucky, to design

and construct such housing building and requisite appurtenant facili-

ties (excluding equipment and furnishings) for the fixed sum of

$4,850,000 and it has been estimated by the Division of Purchases that

the cost of equipment and furnishings will be $575,000. It is urgently

required that this Board go forward immediately with the financing of

this housing project in order that it may be completed and ready

for occupancy at the beginning of the 1979/80 Academic Year in

September 1979. Execution of said contract is authorized.

          (D) Consistent with a new federal program for the con-

servation of energy, the University has applied to the United States

Department of Housing and Urban Development ("HUD") for a 3% loan

to finance the cost of substantial reconstruction of three build-

ings which constitute parts of the University's Housing and Dining

System, in that all windows will be taken out and new thermal

windows, together with thermostat control valves, installed at

a cost, including administrative expense and the expense of

issuing bonds, estimated to be $284,000. The University has

been notified that funds for this project have been reserved by

HUD and has submitted a formal application for the issuance of a

HUD Loan Agreement.   This financing could have been included in



- 4 -




 








the proposed Series J Housing and Dining System Revenue Bond issue

except for the fact that it will probably require upwards of sixty

days for the Application to be processed so that the detailed HUD

Loan Agreement will be available, and the issuance of the Series J

Bonds cannot be delayed. It is the recommendation of the Vice

President for Business Affairs, in. which the President concurs,

that this financing be deferred and represented by a small subsequent

Series K Housing and Dining System Revenue Bond issue. It is

recommended that authority be delegated to the Board's Executive

Committee to proceed in the adoption of a resolution authorizing

this Series K issue, including determination of the principal amount

and all details thereof, conforming to the details of the HUD Loan

Agreement, when it is received, and in the authorization of a

Series K Supplemental Trust Indenture and the public sale of the

Series K Bonds if it is found to be appropriate and desirable that

these actions be taken by the Executive Committee rather than by

the full Board.

           (E) It has been determined by the University's Vice

President for Business Affairs, in conjunction with the Secretary

and the Fiscal Agent designated by the Secretary, that in order to

finance the construction, equipping and furnishing of such new

student apartment housing project, to reimburse this Board for the

cost of acquiring the Linden Walk-Rose Lane Apartments, to make

reasonable and proper provision for unforeseen contingencies, to



- 5 -




 








allow for a discount not to exceed 1-1/2% in the sale of bonds and

to cover the cost of issuance of bonds and administrative costs, it

is necessary that this Board authorize at this time the issuance of

"University of Kentucky Housing and Dining System Revenue Bonds,

Series J," to be dated as of June 1, 1978, in the principal amount

of $6,325,000, details of the amount of the bond issue and the

sources of funds being shown, as follows:

        Construction/Development Contract for the new
        building containing 200 residental units ....  .... $ 4,850,000

        Equipment and furnishings thereof ....    ...........  575,000

        Reimbursement to the University for the cost of
        acquiring the 34 apartment units ....    .............  381,000

        Interest during construction (1 year) at an
        estimated interest rate of 6-1/2% ....    ...........  411,125

        Bond Discount (1-1/2% Maximum) ......     .............  94,875

        Costs of Issuance of Bonds .....     ..................  35,975

        Administrative Costs .............................     20,000

        Allowance for Contingencies .....     ................  123,375

             Total Project Costs ........................ $ 6,491,350

        Sources of Funds:

        Housing and Dining System Revenue Bonds, Series J $ 6,325,000

        Earnings on Investment of Construction Fund and
        Capitalized Interest ($5,545,000) for 6 months
        at 6 .............................................        166.350

             Total Available Funds ......     ................ $ 6,491,350



- 6 -




 








         Section 2. Determination of Financing Needs.

         This Board hereby determines that the financing needs of

this Board and of the University of Kentucky require:

          (A) Authorization at this time of the issuance by

   .this Board of its "Housing and Dining System Revenue Bonds,

   Series J" (hereinafter the "Series J Bonds!'), in the principal

   amount of $6,325,000, according to the maturity schedule,

   redemption provisions and other details set forth in Section 4

   of this Resolution; and the advertising of the Series J Bonds

   at public sale;

          (B) Securing the Series J Bonds by the execution of a

    "Series J Supplemental Trust Indenture" (hereinafter the

    "Series J Indenture"), supplemental to the 1965 Trust Indenture,

    according to the text prepared by Bond.Counsel and submitted by

    the Fiscal Agent, which text is incorporated in full in

    Section 5 of this Resolution;

          (C) Delegating to this Board's statutory Executive

    Committee full power and authority to receive, consider and

    act in the matter of accepting the best bid which may be

    received for the Series J Bonds, or in rejecting all bids and

    re-advertising; and if a bid is accepted, to award the Series J

    Bonds and make determination of the interest coupon rates in

    conformity therewith, and to proceed in the delivery of the



- 7 -




 








Series J Bonds to the purchasers thereof; all as set forth

in Section 6 of this Resolution;

      (D) Authorization at this time of the issuance by this

Board of its "Housing and Dining System Revenue Bonds, Series K"

(hereinafter the "Series K Bonds"), to conform as to principal

amount, maturity schedule, redemption provisions, form, and

conditions with the HUD Loan Agreement, when received; acceptance

of the HUD Loan Agreement, when received; and securing the

Series K Bonds by the execution of a "Series K Supplemental

Trust Indenture" (hereinafter the "Series K Indenture"), supple-

mental to the 1965 Trust Indenture, in such form as may be

required when the details of the HUD Loan Agreement are kno=-m;

and delegation by this Board to its statutory Executive Con..ittee

of full power to act in the matters of (i) accepting the HUD-

Loan Agreement, if it is found to be consistent with the 1965

Trust Indenture, (ii) determining the principal amount, maturity

schedule, form, conditions of sale and all other details of

the Series K Bonds, (iii) advertising a public sale of the

Series K Bonds, (iv) receiving, considering and acting upon

such bids as may be received for the Series K Bonds; accepting

the best bid, and awarding the Series K Bonds to the best bidder,

and (v) proceeding with delivery of the Series K Bonds to the

purchaser or purchasers thereof; all as set forth in Section 7

of this Resolution;



- 8 -




 









      (E) Requesting adoption of a Resolution of the State

Property and Buildings Commission approving and authorizing

all of the actions herein found to be necessary, and herein-

after authorized; and, specifically, consistent with a certain

Resolution which was adopted by the State Property and Buildings

Commission on the 21st day of August, 1964., ratifying, approving

and consenting to this Board's inclusion in the Series J Inden-

ture, incorporated in full in Section 5 of this Resolution, and

in the Series K Indenture, when the form and execution thereof

are authorized at a later date by this Board's statutory

Executive Conmittee, and also in the text of the Series J Bonds

and of the Series K Bonds, of a binding and continuing covenant

of the Commonwealth that it will pay the cost of operating and

maintaining the University's Housing and Dining System, as .to

be enlarged through the application of the Series J and

Series K Bonds, to the extent, if necessary, to supply any

deficiency if the Revenues of said System shall at any time

prove inadequate to pay the costs of operation and maintenance

after the Revenues have first been applied to the transfers

and deposits required by the 1965 Trust Indenture to be made from

the Revenue Fund into the "University of Kentucky Housing and

Dining System Revenue Bond and Interest Sinking Fund Account"

(hereinafter the "Sinking Fund"), including transfers and

deposits to accumulate and maintain the Debt Service Reserve



- 9 -




 








   therein, and transfers and deposits required by the provisions

   of the 1965 Trust Indenture to be made from the Revenue Fund

   into the "University of Kentucky Housing and Dining System Repair

   and Maintenance Reserve" (hereinafter the "Repair and Maintenance

   Reserve"); and to ratify, approve and consent to evidencing of

   such binding and continuing contract of the Commonwealth by

   causing a facsimile signature of the Secretary to appear upon

   the face of each Bond; provided, however, it is understood, as

   set forth in the aforesaid August 21, 1964 Resolution of the

   State Property and Buildings Commission, that the ratification,

   approval and consent of the State Property. and Buildings Commis-

   sion to such covenant shall not be construed to be a representa-

   tion that the State Property and Buildings Commission has any

   power or authority to enter into a contractual covenant or.commit-

   ment for the Commonwealth that any part of the principal of or

   interest on any revenue bond (as distinguished from the costs

   and expenses of operation and maintenance of public properties)

   will be paid except from the revenues provided and pledged therefor

   or from such revenues as may feasibly be increased or adjusted

   from time to time without impairing the ability of the University

   to perform its educational functions in the public interest.

          Section 3. Determination That Compliance Has Been Shown

With Conditions Precedent to the Issuance of the Series J and

Series K Bonds.



- 10 -




 








          This Board hereby finds and determines:

          (A) The Linden Walk-Rose Lane Apartments and the new

200-unit apartment-type student housing building, both of which

are to be financed from the proceeds of the Series J Bonds, are

hereby made parts of the University's Housing and Dining System,

and the revenues to be derived therefrom shall constitute Revenues

of the System for deposit and disposition as in the case of existing

Revenues. The housing buildings to be substantially reconstructed

through application of the proceeds of the Series K Bonds are recog-

nized to be parts of the existing Housing and Dining System and the

Revenues thereof are already pledged as provided in the 1965 Trust

Indenture. This Board is not in default under the 1965 Trust Indenture.

          (B) That the Housing Director of the University, being

the officer or employee of the Board who is at this time principally

charged with responsibility for the maintenance and repair of the

housing and dining buildings and appurtenant facilities comprising

the present facilities of the University's Housing and Dining System,

has tendered his Certificate that a physical inspection of the said

housing and dining buildings and appurtenant facilities of the System

has been made and that the same are found and are represented to be

in a good and current state of tenantability and repair, subject to

no exceptions other than for current routine matters which are

scheduled for attention in the ordinary course of business and for

which budget provision has been made; that said Certificate of the



- 11 -




 








Housing Director has been approved by the President of the University

as evidenced by his signature appearing thereon; and that said

Certificate is hereby approved by this Board as constituting compliance

with the requirements of Section 1101(c) of the 1965 Trust Indenture

as one of the conditions incident to the issuance of the Series J and

Series K Bonds. Said Certificate bearing the endorsement of the

President of the University, together with a certified copy of this

Resolution, shall be delivered to the Trustee under the 1965 Trust

Indenture, and the Trustee is requested to accept the same as consti-

tuting compliance with the identified condition of the 1965 Trust

Indenture with respect to the issuance of both the Series J Bonds,

hereinafter authorized, and the Series K Bonds when the same are

hereafter authorized in detail and offered at public sale by this

Board's statutory Executive Committee; and

          (C) That the Treasurer of the University and of this Board

has tendered a statement, approved by the Secretary of the Executive

Department for Finance and Administration, showing that the average

of the audited annual Revenues of the Housing and Dining System For

the two fiscal years immediately preceding the issuance of the

Series J Bonds and the Series K Bonds, with such adjustments as are

permitted by the provisions of the 1965 Trust Indenture, is equal

to not less than one and thirty hundredths (1.30) times the ma::-imua

amount which will be required in any future fiscal year for payment

of the principal of and interest on the Housing and Dining System



- 12 -




 









Revenue Bonds previously issued and now outstanding, together .-:ith

the Series J and Series K Bonds; it being noted that the Treasurer

has attached to such statement the schedules of Revenues and estimated

Revenues upon which his conclusion was reached, including a showing

that the Treasurer has not taken into account occupancy rates exceeding

those which are permitted by the provisions of the 1965 Trust Inden-

ture.  This Board hereby approves said statement of the Treasurer,

as so approved by the Secretary, and a copy thereof, together with

a certified copy of this Resolution, shall be tendered to the Trustee

with a request that it be accepted as constituting compliance with

the provisions of Section 1101(d) of the 1965 Trust Indenture as an

incident to the issuance of both the Series J Bonds and the Series K

Bonds. In this connection it is recognized that the maturity

schedule of the Series K Bonds has not nor can be fixed until the

HUD Loan Agreement is received; but this is deemed to be immaterial

inasmuch as the statement of the Treasurer shows a "coverage" in

excess of five (5) times future maximum principal and interest

requirements of the outstanding Bonds of Series A to Series I, inclu-

sive, and Series J, -- with the result that no schedule for the

principal maturities of the small Series K Bond issue could possibly

reduce the indicated coverage to any figure approaching the ntinimumn

requirement of 1.30 times.

           Section 4. Authorization of the Series J Bonds.

           In order to accomplish the purposes set forth in paragraph



- 13 -




 








(E) of Section 1 of this Resolution and to implement the determina-

tion o