xt71c53dz699 https://nyx.uky.edu/dips/xt71c53dz699/data/mets.xml Lexington, Kentucky University of Kentucky 19690722 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, 1969-07-may22-ec. text Minutes of the University of Kentucky Board of Trustees, 1969-07-may22-ec. 1969 2011 true xt71c53dz699 section xt71c53dz699 






        Special Called Meeting of the Executive Committee of the Board of
 Trustees of the University of Kentucky, held on Thursday, May 22, 1969


        The Executive Committee of the Board of Trustees of the University of
 Kentucky met in special calied session on Thursday, May 22, 1969, at 11:00 a. in.
 E. D. S. T., in the Board Room of the Administration Building, oil the Campus.
 Notice of such time and place and the purposes of the meeting had been given to
 each member of the Executive Committee in ample time for each member to
 attend. Members of the Executive Committee present were as follows: Mr. Albert
 G. Clay, Chairman, Mr. Richard E. Cooper, Dr. Harry Denham, and Mr. Robert
 Hillenmeyer. Thereupon, the Chairman, in the absence of Mrs. Lucile T. Blazer,
 the Secretary, appointed Mr. Robert Hillenmeyer as acting Secretary of the Board
 of Trustees of the University of Kentucky and of the Executive Committee of such
 Board of Trustees for the purpose of writing, signing and certifying the Minutes of
 the meeting. There were also present the following: Acting President A. D.
 Kirwan, Dr. Lewis Cochran, Vice President-Research, Mr. Robert F. Kerley,
 VIce President-Business Affairs and Treasurer, Messrs. Thomas Dupree and
 John Farra, Fiscal Agents, and Mr. Franklin Hays, Bond Counsel. Members of
 the news media were in attendance.


        A. Meeting Opened

        Mr. Albert G. Clay called the meeting to order and, following roll call a
 quorum reporting present, declared the meeting officially open at 11:00 a. m.



        B. Mr. Kerley's Resignation Accepted

        Before considering the proposals for the purchase of the Revenue Bond
 Anticipation Notes, Mr. Clay asked Dr. Kirwan to read the following letter which
 he had received from Mr. Kerley:

                        UNIVERSITY OF KENTUCKY

                           LEXINGTON, KENTUCKY 40506

  OFFICE OF VICE PRESIDENT
BUSINESS AFFAIRS AND TREASURER                    May 22, 1969




    Dr. A. D. Kirwan
    Interim President
    University of Kentucky
    Lexington, Kentucky

    Dear Ab:

         The purpose of this letter is to inform you officially of my
    decision to resign from my duties at the University of Kentucky




 





                                                                             2


       effective June 30, 1969 to accept a position as Vice President
       for Administration and Treasurer of The Johns Hopkins Uni-
       versity in Baltimore, Maryland.

             To provide for an orderly assumption of my duties here at
       the University of Kentucky, I will be pleased to render part-time
       service to the University of Kentucky during the period July 1, 1969
       and December 31, 1969, upon request. The part-time arrangement
       proposed is understood and approved by The Johns Hopkins University.

             Leaving the University of Kentucky is not an easy thing to do
       even when a new and wonderful personal opportunity presents itself.
       This is so because the people here in this University and state are
       the finest I've ever known. It has been a great and unique experience
       to work with this Board, my colleagues in the Administration, my
       friends in the faculty, the many students I've come to know and
       respect and particularly the hundreds of co-workers on the staff
       who make this University function. I owe the University much for
       the opportunity to serve here and hope that I can continue to serve
       this place, in the future, even if only unofficially and from some
       little distance.

                                        Sincerely,




                                        Robert F. Kerley
                                        Vice President - B iiness Affairs
                                        and Treasurer


       Dr. Kirw.an said it is with deep and sincere regret that I submit to you
the resignation of Mr. Robert F. Kerley as Vice President-Business Affairs,
effective June 30, 1969, to accept the position of Vice President for Adminis-
tration and Treasurer of Johns Hopkins University in Baltimore.

       Mr. Kerley came to the University in 1964. During the five years he
has been here the University of Kentucky has undergone a tremendous physical
expansion and the financing of this program has been his sole responsibility.
His knowledge of financial techniques plus his reputation in financial circles
as one of the top university financial officers in the nation has made it possible
for the University to establish and maintain a very favorable position in the
bond market, The list of his many accomplishments would be too long to
enumerate today; suffice it to say that the University of Kentucky is operating
on as sound a financial basis as it has ever enjoyed and the policies and pro-
cedures which Mr. Kerley inaugurated will stand us in good stead in the years
to come,




 





3



       Mr. Kerley, as you leave us to assume your new responsibilities, you
have our heartfelt thanks for a job well done and our best wishes for your con-
tinuing success and happiness.

       Mr. Clay, I recommend that the Executive Committee of the Board of
Trustees accept Mr. Kerley's resignation with regret.

       Mr. Clay concurred in all that Dr. Kirwan had said relative to Mr. Kerley
and expressed appi-eciation for his willingness to continue on a consultative basis
until December 31. Dr. Denham said that as Chairman of the Finance Committee
he had worked with Mr. Kerley very closely and he had the greatest respect for
him as a man and as a financial officer. He added that the University owed him a
great debt for getting the institution on a sound financial footing. Dr. Cochran
added that Mr. Kerley's contributions to the University and higher education in
general went beyond the financial aspects for he is knowledgeable about all aspects
of academic matters as well.

       The Executive Committee having heard Dr. Kirwan's recommendation,
Mr. Clay called for a motion to accept it. The motion was made by Dr. Denham,
seconded by Mr. Cooper, and passed without dissent.


       C. Mr. G. J. Ruschell Named Acting Vice President-Business Affairs

       Dr. Kirwan. said he wished to recommend to the Board of Trustees that Mr.
G. J. Ruscnell, Business Manager, be named Acting Vice President-Business
Affairs, effective July 1, 1969. He indicated that this recommendation had Mr.
Kerley's concurrence. Dr. Denham so moved. His motion was seconded by Mr.
Hillenmeyer, and passed unanimously.


       D. Dr. Robert B. Griffith Named Director of Tobacco and Health
Research Institute

       At the request of Dr. Kixwan, Dr. Cochran was asked to make the next
recommendation. He said that Dr. G. W. Stokes who has headed the Tobacco and
Health Research program for the past two years had earlier requested that he be
relieved of this assignment to devote full time to research and his responsibilities
as Associate Director of the Agricultural Experiment Station. To replace Dr.
Stokes, it is recommended that Dr. Robert B. Griffith he approved for appointment
as Professor of Agronomy, with tenure, and Director of the Tobacco and Health
Research Institute, effective May 16, 1969. The University is fortunate to secure
the services of Dr. Griffith, who was employed by the Department of Agronomy at
the University of Kentucky for several years prior to joining the Brown and
Williamson Tobacco Corporation. Dr. Griffith has an international reputation in
tobacco research and is considered one of the most knowledgeable men in the
general area of tobacco and health.




 





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       On motion by Mr. Hillenmeyer, seconded by Dr. Denham, and passed,
Dr. Robert B. Griffith was appointed Professor of Agronomy, with tenure, and
Director of the Tobacco and Health Research Institute, effective May 16, 1969.


       E. Name Change for Tobacco and Health Research Program

       Dr. Cochran said that from the beginning of the tobacco and health re-
search program this effort has been operated as an institute of the University in
accordance with policy established in 1965 by the Board of Trustees. However,
it has been learned that the present name is not understood outside of the
University of Kentucky as indicating an institute organization and it would be
helpful in interpreting the program to have it clearly designated as one of our
several institutes. He recommended that the name of the tobacco and health
research program be changed from the Center for Tobacco and Health Research
to the Tobacco and Health Research Institute.

       On motion duly made, seconded, and carried, the name of the Tobacco
and Health Research program was changed to Tobacco and Health Research
Institute, effective immediately.


       F. Proposals for Purchase of Revenue Bond Anticipation
Notes Accepted

       The hour of 11:00 a. mn. having arrived, it was explained that it was in
order for the Executive Committee to consider and take action upon the proposals
which had been received for the purchase of Revenue Bond Anticipation Notes.
Upon consideration of the proposals it was apparent that acceptable proposals had
been received for such Notes in the aggregate amount of $16, 300, 000 and that
Notes to that amount should be sold.

      Thereupon, Mr. Hillenmeyer introduced, caused to be read and moved
the immediate adoption ot a resoLution as follows:

      A RESOLUTION ACCEPTING THE BEST BID OF BIDS FOR THE
      PURCHASE OF $16, 300, 000 PRINCIPAL AMOUNT OF REVENUE
      BOND ANTICIPATION NOTES OF THE BOARD OF TRUSTEES OF
      UNIVERSITY OF KENTUCKY, ESTABLISHING INTEREST RATES,
      DESIGNATING THE PAYING AGENT AND SPECIFYING THE
      DENOMINATIONS IN WHICH SUCH NOTES SHALL BE ISSUED,

      THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES OF THE
UNIVERSITY OF KENTUCKY RESOLVES AS FOLLOWS:

      Section 1. The actions of the Commissioner of Finance of Kentucky, the
Vice President for Business Affairs and the Fiscal Agents on behalf of the Board




 





5



of Trustees of the University of Kentucky and on behalf of the State Property and
Buildings Commission, in soliciting the submission of proposals by more than
three responsible tenders for the purchase of Revenue Bond Anticipation Notes of
the Board of Trustees of the University, are hereby approved, adopted, ratified
and confirmed as constituting compliance with the requirements of Section 56. 513
of the Kentucky Revised Statutes.

       Section 2. Upon receipt and consideration of purchase proposals for the
$16, 300, 000 principal amount of Revenue Bond Anticipation Notes authorized on
May 6, 1969, by the Board of Trustees, it is hereby determined that acceptable
proposals have been received and should be accepted at this time in the aggregate
principal amount of $16, 300, 000.

       Section 3. The Revenue Bond Anticipation Notes in the aggregate principal
amount of $16, 300, 000 are hereby awarded and sold to the respective bidders, at
the respective prices and bearing interest at the respective rates and in the re-
spective denominations named by the bidder, it having been provided in the
Invitation to Submit Proposal that if the denominations are not named in the bid
they will be furnished within such time as the Commissioner of Finance may allow,
as follows:
                                                                 Interest
Name and Address of               Face                           Rate or
Successful bidder               Amount              Price        Rates

Chemical Bank, New York,        $6, 100, 000      $ 6, 100, 000    6%
  New York

Northern Trust Company,          1, 000, 000        1, 000, 000    5. 34%
  Chicago, Illinois             1, 000, 000         1, 000, 000   5. 44%

First National Bank of           1, 000, 000        1, 000, 060    5 1/4%
  Chicago, Chicago, Ill.        1, 000, 000         1, 000, 060   5. 30%
                                 1, 000, 000        1, 000, 060    5. 35%
                                 1, 000, 000        1, 000,060     5. 40%
                                 1, 000, 000        1, 000, 060    5. 45%
                                 1, 000, 000        1, 000, 060    5. 50%

Second National Bank,
  Lexington, Kentucky             200, 000            200, 000    5 1/4%

F. L. Dupree & Co., Inc.,        1, 000, 000           997, 500    5 1/8%
  Lexington, Kentucky

First Security National Bank    1, 000, 000       1, 000, 000   5 1/4 1
  & Trust Company
  Lexington, Kentucky




 




6



       Section 4. The largest dollar amount of such Notes having been awarded
the Chemical Bank, New York, New York, it is hereby determined that in ac-
cordance with the nomination of such purchaser the place of payment of the
principal of and interest on all of the aforesaid Notes shall be the principal office
of Chemical Bank, in the City of New York, New York, and the printer may be
instructed to prepare the Notes accordingly.

       Section 5. The Notes shall be executed on behalf of the Board of Trustees
and on behalf of the State Property and Buildings Commission in the manner set
forth in the resolution authorizing such Notes. They shall be tendered to the
purchasers thereof at a financial institution to be designated by the Commissioner
of Finance of Kentucky, on June 17, 1969, provided, however, if, despite efforts
to deliver on the date of the Notes, there should be unavoidable delay, such Notes
shall be delivered as soon as possible thereafter, and the purchasers will be re-
quired to pay accrued interest to delivery. The Commissioner of Finance of
Kentucky is authorized to give an official receipt to each purchaser and to make
deposit of the proceeds of such Notes in the manner set forth in the aforesaid
authorizing resolution.

       Section 6. This resolution shall be in full force and effect from and after
its adoption, and an authenticated copy may be delivered to each purchaser as
evidence of the award made.


       Such motion was seconded by Dr. Denham. Upon a vote being taken upon
such motion and upon call of the roll the vote was recorded as follows:

Voting AYE: Mr. Albert G. Clay, Mr. Richard E. Cooper, Dr. Harry Denham,
and Mr. Robert Hillenmeyer.

Voting NAY: None.

       Thereupon, it was announced that the resolution had been duly adopted and
was in full force and effect.


       G. Meeting Adjourned

       There being no further business to be considered at this time, on motion
and vote the meeting was duly adjourned.

                                Respectfully submitted,



                                Robert Hillenmeyer
                                Acting Secretary of the Board of Trustees
                                of the University of Kentucky and of the
                                Executive Committee of the Board of Trustees