xt712j683k5n https://nyx.uky.edu/dips/xt712j683k5n/data/mets.xml Lexington, Kentucky University of Kentucky 20050410 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, 2005-04-may10. text Minutes of the University of Kentucky Board of Trustees, 2005-04-may10. 2005 2011 true xt712j683k5n section xt712j683k5n 







                               MINUTES

                    Meeting of the Board of Trustees
                         University of Kentucky
                             May 10, 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      Waiver of Part X of the Governing Regulations Pertaining to the
           Employment of Relatives in the Case of Brian P. Butler

Special Committee for Governing Regulations

SCGR 1 Proposed Amendment to the Governing Regulations
         Proposed GRs, with mark-up
         GR I, GR 11, GR Ill GR IV, GR\aGR V(b). GR VI, GR VII, GR Vill,
         GR IX, GRX, GRXI, GRXII, GRXIII

Academic Affairs Committee Report

AACR 1    Establishment of the Institute for Educational Assessment
AACR 2    Change of Organizational Structure of the Council on Aging
AACR 3    Establishment of the Partnership Institute for Mathematics and
           Science Reform
AACR 4    Change in Degree

Finance Committee Report

FCR 1     William A. Bauman Gift and Pledge
FCR 2     Ithaca Materials Research Laboratory Gift-in-Kind
FCR 3     Anonymous Gift to the Adair County Scholarship Fund
FCR 4     Gifts and Pledges to the E. Preston Hicks Chair for Orthodontics and
           Oral Health Research
FCR 5     Anonymous Gift to the Pediatric Exercise Physiology Laboratory
FCR 6     Liz Claiborne Foundation Gift and Pledge
FCR 7     Paul Miller Ford Foundation Gift
FCR 8     Marie A. and William H. Cull Pledge
FCR 9     Kentucky Medical Services Foundation Gift




 







FCR 10    Gifts and Pledges to the William Baxter Jennings Fellowship
FCR 11    Gifts to UK Center for Research on Violence Against Women
FCR 12    Gifts and Pledges to the Endowment for Support of Neuro-Uroloqgic
           Research
FCR 13    Casner Family Fund Gift
FCR 14    KPMG LLP Gift and Pledge
FCR 15    Jacqueline K. Resinger Gift and Pledge
FCR 16    James L. and Suzanne H. Elliott Gift and Pledge
FCR 17    Dr. Michael Karpf Gift and Pledge
FCR 18    Michael C. Carozza Gift and Pledge
FCR 19    Commonwealth of Kentucky Allocation
FCR 20    Report of Leases
FCR 21    Approval of Leases
FCR 22    Real Estate Exchange
FCR 23    Approval of Construction of a New University Health Service Facility
           and Its Plan of Finance
FCR 24    Emergency Services Expansion
FCR 25    Resolution Approving the Initiation of the Construction of the
           Basketball Practice Facility Project, its Plan of Finance, and
           Execution of a Financing Agreement
FCR 26    Acceptance of Interim Financial Report for the University of
           Kentucky for the Nine Months Ended March 31, 2005
FCR 27    2004-05 Budget Revisions
FCR 28    Report on the 2006-2012 Capital Plan
FCR 29    Report on 2004-2006 Capital Projects Authorized by the 2005
           Kentucky General Assembly
FCR 30    Patent Assignment Report
FCR 31    Capital Construction Report
FCR 32    Establishment of University Hospital Standing Committee




 








      Minutes of the Meeting of the Board of Trustees of the University of Kentucky,
Tuesday, May 10, 2005.

      The Board of Trustees of the University of Kentucky met at 1:00 p.m. (Lexington
time) on Tuesday, May 10, 2005, in the Board Room on the 1 8th 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, Pamela May, Billy Joe Miles, Roy Moore, Phillip Patton,
Steven Reed, Frank Shoop, Alice Sparks, Myra Leigh 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, 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.

      C.    Consent Items

      Mr. Hardymon said the Minutes, PR 2, and FCR 1 through 20, which were
covered in the Finance Committee, were consent items on the agenda. He asked if there
were any questions or comments about the consent items. Ms. Smith Edge moved
approval. Her motion, seconded by Mr. Reed, carried without dissent. The consent items
follow:

      Minutes - March 29, 2005
      PR 2   Personnel Actions
      FCR 1 William A. Bauman Gift and Pledge
      FCR 2 Ithaca Materials Research Laboratory Gift-in-Kind
      FCR 3 Anonymous Gift to the Adair County Scholarship Fund
      FCR 4 Gifts and Pledges to the E. Preston Hicks Chair for Orthodontics and
                Oral Health Research
      FCR 5 Anonymous Gift to the Pediatric Exercise Physiology Laboratory
      FCR 6 Liz Claiborne Foundation Gift and Pledge




 




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      FCR 7 Paul Miller Ford Foundation Gift
      FCR 8 Marie A. and William H. Cull Pledge
      FCR 9 Kentucky Medical Services Foundation Gift
      FCR 10 Gifts and Pledges to the William Baxter Jennings Fellowship
      FCR 11 Gifts to UK Center for Research on Violence Against Women
      FCR 12 Gifts and Pledges to the Endowment for Support of Neuro-Urologic
                Research
      FCR 13 Casner Family Fund Gift
      FCR 14 KPMG LLP Gift and Pledge
      FCR 15 Jacqueline K. Resinger Gift and Pledge
      FCR 16 James L. and Suzanne H. Elliott Gift and Pledge
      FCR 17 Dr. Michael Karpf Gift and Pledge
      FCR 18 Michael C. Carozza Gift and Pledge
      FCR 19 Commonwealth of Kentucky Allocation
      FCR 20 Report of Leases
      (See these items at the end of the Minutes.)

      D.    President's Report

      Due to the length of the agenda, President Todd said that he would not review as
many items as he typically does in PR 1. He called attention to the following items in his
report:

      Many Board members and other dignitaries attended the ribbon-cutting ceremony
      for the new Biomedical/Biological Sciences Research Building, which is the
      largest research building the university has built on campus.

      The state of Kentucky moved up from 33rd to 30th in rankings for federal research
      obligations. For top research universities, UK moved up from 60th to 57th.
      Among the public universities, UK moved up from 3 ls to 28th.

      Research awards at the end of March were up 14 percent for UK. It is anticipated
      that the last two months of this fiscal year will be an upside on research.

      UK has created the nation's first Fine Arts Cooperative Extension Program, which
      has brought uniqueness to UK's program.. It is based in Pikeville, Kentucky.

      The Gatton College of Business and Economics has launched a bold and
      innovative Master of Business Administration (MBA) program. The program
      will now be an eleven-month MBA program. It has been an 18-month program in
      the past. He encouraged people to partake of that degree opportunity.

      Ryan Quarles is UK's 12h Truman Scholar. He is a Kentucky student with a
      strong UK heritage in his family.



The third annual President's Awards for Diversity were presented in April.




 




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      UK's Men's Golf Team won the university's first Southeastern Conference
      championship. The UK Women's Tennis Team also won the Southeastern
      Conference championship for the first time in UK's history. These are two
      commendable accomplishments, along with Coach Tubby Smith winning the SEC
      regular season championship. He praised Mitch Barnhart for his focus on all
      sports at the institution.

      Professor Michael Kennedy and the Geography Department are preparing a new,
      state-of-the-art teaching and research facility. This is being supported by the
      budgets of the Dean of Arts and Sciences and Wendy Baldwin budget. Professor
      Kennedy announced that there would be a tour of the facility following the June
      14 Board meeting. He extended an invitation to the Board.

      President Todd reported that the NCAA certification visit had been completed,
and, according to the visiting team, it was one of the cleanest visits the representatives
have ever attended. He praised Dr. Connie Ray and her committee for their efforts. He
noted that Barbara Young, as well as some others in the room, were on the committee.
They did a Herculean effort over a 12-month period, looking in detail at the
accomplishments of and plans for the Athletics Department. President Todd expressed
appreciation to Dr. Ray and her team for the work they did and applauded Mr. Barnhart
for the changes that he has made.

      President Todd called attention to a handout on the Dream Tour which starts May
23. He said that he had enjoyed working with the Public Relations group on this vision
for getting UK's message across the state. He encouraged everyone to participate in the
Dream Tour in all ways possible.

      President Todd mentioned another handout regarding a progress report on the
Strategic Plan. The report provides recent information on 12 of the 26 key indicators in
the plan.

      During this reporting period, the university achieved its goals on two key
indicators: Endowment Market Value and Postdoctoral Scholars. He reported that the
Endowment Market Value is above $500 million, and the Postdoctoral Scholars
achievement is a result of the Bucks for Brains investment.

      Progress above the baseline is evident on four key indicators: ACT Composite,
Residence Halls, Graduation Rate, and Federal Research Expenditures. The university is
on target to meet those.

      Progress is mixed or reversed on six indicators: Fall Enrollment, Retention Rate,
Faculty Salaries, Doctoral Enrollment, Diversity, and Industry Research Expenditures.
Some controls are in effect for the fall enrollment because of the budget situation. The
retention rate is a challenge for all universities in Kentucky. There have been many
discussions about faculty salaries during the budget and tuition discussions. Doctoral




 




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enrollment is down; however, doctoral degrees awarded at commencement helped the
university exceed its goal of 250. There are some limits on how the university progresses
with respect to diversity. Industry research is on the rise but not where it should be.
President Todd mentioned that these results are on the university's web site, and the
report is also available.

      Mr. Hardymon said that he was glad he attended commencement because it was
such a good feeling. He noted that Ms. Watts reached new heights, and she received a
round of applause from the Board members.

      E.    Waiver of Part X of the Governing Regulations Pertaining to the
Employment of Relatives in the Case of Brian P. Butler (PR 3)

      President Todd said that PR 3 is a part of the university's regulations dealing with
nepotism. The recommendation is that the Board authorize the continued employment of
Brian Butler, son of Frank Butler, Executive Vice President for Finance and
Administration, for two years pursuant to the provision contained in Governing
Regulation X authorizing a waiver of the rules prohibiting employment of a relative of
the Provost, Vice President, or Associate Vice President in that officer's administrative
area.

      Brian Butler has worked for the university since 1988 and was not under Frank
Butler's supervision until just recently. As a result of this action, the associate vice
president for campus services will assume all such supervisory responsibilities for Brian
Butler. Frank Butler will not be involved in any promotion or other employment
decisions regarding his son. If it is necessary for an issue to go to a higher level, it will
go straight to the president. President Todd recommended approval of PR 3.

      On motion made by Alice Sparks, seconded by Mr. Williams and carried, PR 3
was approved without dissent. (See PR 3 at the end of the Minutes.)

      Mr. Hardymon stated that all the deans will be making a college report. Due to
the length of some presentations on the agenda, the college report was eliminated for this
meeting; however, the reports will continue with future meetings.

      Mr. Hardymon reminded the Board of his appointment of a special committee for
the Governing Regulations. He said that he thought the administration was surprised and
pleased at how well that committee had prepared themselves for the assignment. He
asked Ms. Ball, chair of the special committee, to make her report.

      F.    Proposed Revisions to the Governing Regulations (SCGR 1)

      Ms. Ball said that the members of the special committee were Frank Shoop,
Barbara Young, Russ Williams, and Roy Moore. The committee spent an afternoon
reviewing the Governing Regulations. She noted that a committee, chaired by Phyllis




 







Nash, was appointed almost two years ago and brought these revised regulations to the
Board after they had been approved by the President.

      Ms. Ball said that the members of the Board had received a notebook containing
the proposed revisions to the Governing Regulations. She explained that anything taken
out of the document is in red, and anything added to the document is in blue. She
reported that the committee had reviewed the regulations and made some changes
regarding the Community College System, which is no longer a part of the university,
and the university's provost model. Those are the main changes made by the committee.
She asked for any questions from the Board and then moved that the proposed revisions
be given preliminary consideration for approval and be considered for adoption at the
June Board meeting. Ms. Smith Edge seconded her motion, and it carried without
dissent. (See SCGR 1 at the end of the Minutes.)

      G.    Establishment of the Institute for Educational Assessment (AACR 1)

      Ms. Sparks, Chair of the Academic Affairs Committee, reported that the
committee had four items to bring before the Board. AACR 1 is the establishment of the
Institute for Educational Assessment. She noted that Kentucky spends approximately
$13 million on testing. The new institute will extend the university's commitment to a
critical facet of P-16 education reform, student assessment. This is quite a compliment to
the College of Education. This has been recommended by the chairs and dean of the
College of Education. The Provost supports this recommendation as does the Academic
Affairs Committee. She moved that AACR 1 be approved. Her motion, seconded by
Ms. Haney, carried without dissent. (See AACR 1 at the end of the Minutes.)

      H.    Change of Organizational Structure of the Council on Aging (AACR 2)

      Ms. Sparks said that AACR 2 is the change of organizational structure of the
Council on Aging. The Board is asked to approve the transfer of administrative oversight
for the Council on Aging from the Executive Vice President for Research to the Dean,
College of Public Health. The Executive Vice President for Research recommends this
proposal, and it is endorsed by the appropriate faculty and administrators. She moved
approval of AACR 2. Mr. Reed seconded her motion, and it carried without dissent.
(See AACR 2 at the end of the Minutes.)

      I.    Establishment of the Partnership Institute for Mathematics and Science
Reform (AACR 3)

      Ms. Sparks said that AACR 3 recommends that the Board approve the
establishment of the Partnership Institute for Mathematics and Science Reform. This is a
result of the $22 million grant that the university received. This proposal has been
recommended by the deans of the College of Arts and Sciences and the College of
Education. The Provost supports this recommendation as does the Academic Affairs
Committee. She moved approval of AACR 3. Dr. Moore seconded her motion, and it
carried without dissent. (See AACR 3 at the end of the Minutes.)




 




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      J.    Change in Degree (AACR 4)

      Ms. Sparks said that AACR 4 recommends that the Board approve the change in
the name of the Master of Science in Vocational Education to Master of Science in
Career, Technical, and Leadership Education and approve the creation of a non-teaching
option. This would be effective in the fall 2005 semester. This proposal has the approval
of the Graduate Council, Senate Council, and University Senate. The Provost also
supports this recommendation. On behalf of the Academic Affairs Committee, she
moved approval of AACR 4. Professor Kennedy seconded her motion, and it carried
without dissent. (See AACR 4 at the end of the Minutes.)

      Mr. Hardymon changed the order of the agenda and said the Finance Committee
report would be later. He called on Ms. Smith Edge for the Student Affairs Committee
Report.

      K.    Student Affairs Committee Report

      Ms. Smith Edge, Chair of the Student Affairs Committee, reported that Dr.
Patricia Terrell and her staff gave an update on the Code of Student Conduct at their
meeting that morning. The code had previous changes and additions, but there has never
been a comprehensive review and update. The proposed revisions were posted on the
web for over two weeks. There was Kernel coverage and also meetings were held with
several student groups, including the Student Senate and the President's Roundtable. The
comments and suggested changes have been incorporated along with University Counsel
suggestions.

      The proposed revised code will be submitted to the President and Provost for final
review before coming to the Board. The goal is to make the code very user and student
friendly and easy to navigate without legal counseling. Once the proposed draft goes to
the President and Provost, the committee will get it. It is requested that the committee
consider the revised code at the June Board meeting so it can be incorporated into the
new information for the upcoming year.

      Ms. Smith Edge reported that the Student Affairs Committee will have a special
meeting on June 8. This meeting will be open to all Board members to allow full
discussion of all of the proposed changes and to receive any input from them prior to the
June 14 Board meeting. A draft of the proposed revisions will be mailed to the Board
prior to the meeting so the Board will have the opportunity to have input.

      Ms. Smith Edge reported that approximately 25 percent of the student population
goes uninsured every year. They basically have no insurance. Student Health Services
plays a key role, and the administration will continue to look at some insurance issues in
the future.




 




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      L.    Investment Committee Report

      Mr. Wilcoxson, Chair of the Investment Committee, reported that the Investment
Committee met in a special session on May 9 to interview perspective private equity fund
managers. As a result of the meeting, the committee approved a 5 percent commitment
to private equity through a fund-of-fund approach with a 2 12 percent commitment this
year and a second 2 12 percent commitment in two years. The committee selected the
Commonfund for the initial 2 12 percent commitment, and the objectives for the
investment in private equity are to increase the long-term total return of the endowment
and to provide the university's endowment with further diversification.

      The committee will meet again in a regular quarterly session in June and will have
the performance results at that time for the period ending March 31. He noted that it had
not been a very good quarter.

      Mr. Wilcoxson added that private equity includes three things: U.S. venture
capital, U.S. buyouts, and international venture capital and buyouts. The committee will
be dealing with those three different areas with the Commonfund. He said that he or Mr.
Henry Clay Owen would be pleased to answer any questions.

      Mr. Owen said that the Investment Committee has reviewed asset allocation over
the past 18 months and the allocation to private equity is the final step in establishing a
revised target asset allocation. The revised target allocation is expected to add
diversification and increase total return for the endowment in the future.

      Mr. Hardymon agreed with Mr. Wilcoxson that the equities returns this quarter
are not going to be great, at least for the month of April. He asked if there were any
questions or comments on the Investment Committee report.

      M.    Athletic Association Board of Directors Report

      Ms. Sparks reported that the Board of Directors received a report on the NCAA
peer review team visit at their last meeting, and the Board was pleased with the good
preliminary review. She mentioned that the following items had been discussed at the
last meeting:

      Mr. Barnhart gave a detailed report on the accomplishments of the various teams.
      The CATSBY event was a great night.
      The Big Blue Caravan has begun. The Triple Crown is May 23.
      Dr. Raynor Mullins gave a report on the long-range plan.
      Mr. Rob Mullens gave a detailed report on the budget.

      Ms. Sparks said that she was very pleased to report that the internal audit review
of basketball ticket accountability was a very clean audit. It showed that approximately
$7.5 million worth of basketball ticket sales was done appropriately, and she is eternally




 




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grateful for that report. She asked Mr. Barnhart to provide some statistics about the good
things happening in athletics.

      Mr. Barnhart noted the following accomplishments:

      There were four team championships this year: men's soccer, men's basketball,
          men's golf and women's tennis.
      There were four coach of the year awards: Tubby Smith, Mark Guilbeau,
          Brian Craig, and Mike Lyden.
      Jesse Witten, men's tennis, was named men's player of the year and became the
          first five-time All American at the University of Kentucky. He also became
          one of only ten players in the history of college tennis to ever become a four-
          time All American.
      John Holmes, men's golf, was named player of the year in the conference and
          academic All American. This is the first time this has happened.
      Abika Kalsarieva, was named women's player of the year.
      Mark Blakefield, men's golf, was named All SEC second team performer.
      It is the first time in the history of the Southeastern Conference that the player of
          the year awards have both been from the same institution. Both players of the
          year in men's and women's tennis were from Kentucky.
      Jeff Chakouian, track and field, is the number one shot putter. He has the
          longest throw in the country this year.

      Mr. Barnhart announced that the CATSBY awards would be televised on May 14
and 15 on WKYT and UPN. He said it would be a one- hour condensed version and
encouraged everyone to check it out. This is the first time the event has been on
television.

      Mr. Wilcoxson said that Coach Tubby Smith was the Board's Coach of the Year,
and Coach Smith received a round of applause.

      N.    Business Partnership Foundation Report

      Ms. Wilson reported that the Business Partnership Foundation Board meets twice
a year. It met last fall in November and in April this spring. The Gatton College of
Business and Economics has formed many partnerships with people in the community.
They also work with other people within the university.

      She commented on the following items that were discussed at the November and
April meetings:

      Associate Dean Mike Tearney was recognized because he had planned to retire in
          December.
      Tom Lester talked about the interaction between the College of Business
          and the College of Engineering.
      Dean Harvey introduced the Natural Bridge State Park Team that gave a brief




 




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          presentation on their new and innovative work.
      The Board talked about the new strategic initiatives concerning the MBA
          Program and the Slone Center. The importance of the Slone Center to the
          college and to the state was also discussed.
      Kentucky is the fifth largest producer of aluminum in the world, and UK has a
          working relationship with this center.
      Ken Robertson, Chairman of the Foundation Board, presented some possible
          changes about how often the Board should meet and whether to have
          committees or not. It was determined that the Board would continue to have
          two meetings a year, once in the fall and once in the spring.
      The Board added a couple of committees: a Development Committee, chaired by
          Tim Haymaker of the Haymaker Company, and an Image Committee, chaired
          by Rodney McMullen of the Kroger Company.
      There was a presentation by two students concerning their entrepreneurial
          business called Vision Resumes, a career management network. They expect
          to be making $6 million in about six years.
      Two new proposals were presented for the School of Management: a certificate
          in mortgage banking presented on the Internet and a qualitative financial
          analysis minor in the Gatton College.
      Associate Dean Paul Jarley announced a new internship program called Execute,
          where some corporate executives will be working with some of the students
          on some projects that were important for the company.
      Humana made a presentation about consumerism.

      Ms. Wilson concluded her report by stating that the Board of Trustees can be
proud of the partnerships that the college has formed with people in the community and
with other colleges at the university.

      President Todd commented about Vision Resume. He said the business is headed
by John Williams, who was past president of the E Club. It is a company they founded,
and the present president of the E Club is co-founder. Humana has invited these two
young men to give a presentation on Vision Resume for possible use at Humana.

      0.    University Hospital Board

      Ms. Young, Chair of the University Hospital Board, reported that the Board
reviewed the conservative budget for the hospital for 2006. She said there is a lot
happening in the hospital, and she is comfortable with the work that Dr. Karpf and his
staff are doing to meet the goals. Things are going extremely well at the hospital. The
numbers continue to go up and will support the construction projects that are scheduled to
begin. A resolution was passed to establish the University Hospital Committee which
will be a standing committee of the Board of Trustees.

      Mr. Hardymon mentioned that there had been a reference about budgets in a
couple of the reports. He said that the budget will be on the June agenda. The hospital
and athletics budgets will be parts of that material.




 




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      P.    Audit Subcommittee Report

      Ms. Wickliffe, Chair of the Audit Subcommittee, reported that they met that
morning. Deloitte and Touche, who are the university's CPAs, and Jim Carpenter, the
partner assigned to the job, were there to discuss the audit with the subcommittee. The
audit scope was discussed, and the engagement letter was reviewed and voted on. They
also discussed the staffing requirements, changes in the accounting rules, and recent
pronouncements that have been made. The non-audit services performed by D & NT for
the university were reviewed, and there was discussion and recommendations for the
areas of focus.

      Ms. Wickliffe reported that the subcommittee met with Joseph Reed, who is the
senior director of internal audit for the university's Internal Audit Department. She
thanked Mr. Reed and his staff for their tremendous job.

      The subcommittee also reviewed and approved the internal audit charter, the
report on the progress of the internal audit plan for fiscal year 2004-05, and the internal
audit plan for fiscal year 2005-06.

      Q.    Finance Committee Report

      Ms. Wickliffe, Chair of the Finance Committee, reported that FCRs 1 through 20
were on the consent agenda. She did, however, call attention to FCR 17, the Dr. Michael
Karpf Gift and Pledge, and thanked Dr. Karpf for his generosity.

      R.    Approval of Lease (FCR 21)

      Ms. Wickliffe said that FCR 21 is the approval of leases. It includes leases with
the Center on Aging, Drug and Alcohol/Dentistry, and the College of Medicine, CATS
Project. The leases exceed $30,000; therefore, they need to be approved by the Board.
On behalf of the Finance Committee, she moved the adoption of FCR 21. Mr. Branscum
seconded her motion, and it passed without dissent. (See FCR 21 at the end of the
Minutes.)

      S.    Real Estate Exchange (FCR 22)

      Ms. Wickliffe said that FCR 22 is a real estate exchange. This is an exchange of
.8 acres of land that involves the UK Center for Rural Health building in Hazard. On
behalf of the Finance Committee, she moved the adoption of FCR 22.

      Mr. Hardymon asked Mr. Butler for any comments on the exchange of land.

      Mr. Butler reported that the property is adjacent to the Center for Rural Health in
Hazard, and the university has a request from Appalachian Regional Healthcare (ARH) to
exchange the property. ARH intends to build a radiation treatment facility on this




 




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property and has offered to exchange 0.8 acres, consisting of a parking lot. It is an
appropriate accommodation for ARH, and it is not property on which the university
would have built an addition to the Center for Rural Health. The exchange is appropriate
for both parties.

       Mr. Shoop seconded Ms. Wickliffe's motion to approve FCR 22. The motion
carried without dissent. Ms. May asked that the minutes reflect that she abstained on the
subject. (See FCR 22 at the end of the Minutes.)

       T.    Approval of Construction of a New University Health Service Facility and
Its Plan of Finance (FCR 23)

       Ms. Wickliffe said that FCR 23 recommends the Board approve the construction
of a new 65,000 square foot, three-story University Health Service facility and its plan of
finance. The University Health Service has less space per student than any of UK's 19
benchmark universities, a fact which threatens patients' privacy. The $24 million facility
will be paid for through increases in the student health fee over the next two years. The
student health fee will increase from $97 to $130 each semester in 2005-2006 and $160
each semester in 2006-07. On behalf of the Finance Committee, Ms. Wickliffe moved
approval of FCR 23.

       Mr. Hardymon asked Dr. Greg Moore, Director of University Health Service
(UHS), to make a presentation.

       Dr. Moore gave a PowerPoint presentation illustrating the pressing student health
needs. One is the lack of patient privacy due to very cramped quarters. Another is a
threat to continued accreditation. The University of Kentucky is the only accredited
student health service in the Commonwealth. The only issue that the university has not
addressed from the last accreditation review is size of facility. The University Health
Service is to be reaccredited this fall.

       Dr. Moore reported that many areas of the current facility are not handicap
accessible. Most bathrooms cannot accommodate a wheelchair. Stretchers cannot go
around many of the corners, which poses an ever increasing problem in patient care. The
exam rooms are very limited. There is only one exam room per clinician as opposed to
the two or three which are normally found in primary care facilities. This