xt74xg9f517g https://exploreuk.uky.edu/dips/xt74xg9f517g/data/mets.xml Lexington, Kentucky University of Kentucky 19960123 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, 1996-01-jan23. text Minutes of the University of Kentucky Board of Trustees, 1996-01-jan23. 1996 2011 true xt74xg9f517g section xt74xg9f517g AGENDA Meeting of the Board of Trustees University of Kentucky 1:00 P.M. January 23, 1996 Invocation Roll Call Approval of Minutes President's Report and Action Items PR 1 President's Report to the Trustees A. 1990-1995 Report PR 2 Personnel Actions PR 3 Central Administration (No items to report) PR 4 Community College System (No items to report) PR 5 Lexington Campus A. New Academic Programs and Waiver B. Appointments to University of Kentucky Humanities Foundation PR 6 Medical Center (No items to report) Finance Committee 1. Interim Financial Report 2. Disposal of Personal Property 3. Report of Lease 4 Capital Construction Report 5. Patent Assignment - Research and Graduate Studies 6. Ann Scott Maher Mason Vocal Music Scholarship Fund 7. Ashland Foundation, Inc. Gift and Pledge 8. Chris T. Sullivan Pledge 9. R. C. Durr Company Gift 10. Acquisition and Sale of Real Property Minutes of the Meeting of the Board of Trustees of the University of Kentucky, Tuesday, January 23, 1996. The Board of Trustees of the University of Kentucky met at 1:00 p.m. (Lexington time) on Tuesday, January 23, 1996 in the Board Room on the 18th floor of Patterson Office Tower. A. Meeting Opened Governor Edward T. Breathitt, Chairperson, called the meeting to order at 1:00 p.m., and the invocation was pronounced by Mr. Shea Chaney. B. Roll Call The following members of the Board of Trustees answered the call of the roll: Governor Edward T. Breathitt (Chairperson), Mr. Ted Bates, Mrs. Kay Shropshire Bell, Mr. Shea Chaney, Mr. Paul W. Chellgren, Mr. Merwin Grayson, Mr. James F. Hardymon, Professor Loys L. Mather, Dr. Robert P. Meriwether, Mr. Billy Joe Miles, Professor Jim Miller, Dr. Elissa Plattner, Professor Deborah Powell, Mr. Steven S. Reed, Mr. C. Frank Shoop, Mrs. Marian Moore Sims, Mrs. Lois C. Weinberg, Mr. Martin Welenken, and Mr. Billy B. Wilcoxson. Absent from the meeting was Mr. Robert N. Clay. The University administration was represented by President Charles T. Wethington, Jr.; Chancellors Ben W. Carr, James W. Holsinger, and Elisabeth Zinser; Vice Presidents Joseph T. Burch, Fitzgerald Bramwell, Edward A. Carter, and Eugene Williams; Robert Lawson, Assistant to the President for Administrative Affairs; George DeBin, Assistant to the President for Fiscal Affairs; Dr. Juanita Fleming, Special Assistant for Academic Affairs; Mr. C. M. Newton, Director of Athletics, and Mr. Richard E. Plymale, General Counsel. Members of the various news media were also in attendance. A quorum being present, the Chairperson declared the meeting officially open for the conduct of business at 1:03 p.m. C. Approval of Minutes Governor Breathitt said that the Minutes of the Board meeting on December 12, 1995 had been distributed and asked for any additions or corrections. He entertained a motion of approval. Mr. Shoop moved that the Minutes be approved as distributed. Professor Miller seconded the motion, and it carried. -2- D. President's Report to the Board of Trustees (PR 1) President Wethington called attention to the following items in PR 1: 1. The UK Hospital has been named one of the 100 Best-Run Hospitals for the third consecutive year. UK is one of seven hospitals to appear on the list for three consecutive years and the only Kentucky hospital to be included three times in a row. 2. The Gheens Foundation of Louisville has announced a $350,000 grant to the UK College of Law in memory of the foundation's vice president, Laramie L. Leatherman. The gift brings to $500,000 the endowment for the Laramie L. Leatherman Distinguished Professorship in Tax Law. President Wethington asked the members to read the other items in the report at their leisure. E. 1990-95 President's Report President Wethington said that a copy of the 1995 President's Report had been provided to the members of the Board. He reminded them of the recent media reports on the University and its President which focused attention on the completion of his five years in office. He said that the purpose of this presentation is to focus on the past five years, including some of the accomplishments, changes and frustrations which gives a balanced picture of the entire University. The Report is designed to let the Board look at some of the key indicators and determine how the University has progressed during the years 1990-95. Through a series of slides, President Wethington provided a summary of the 1990-95 President's Report. He said that one of the things that he has been emphasizing since he came into office is the "one" University concept. That is a focus on the comprehensive nature of the institution; the Medical Center, the Community College System and the Lexington Campus as one entity. He said that he believes that the vast resources of the University can best be used for the state and its people if it is treated as one enterprise. He noted that other areas of emphasis include a focus on becoming a student- centered institution, access through the Community College System, academic quality, diversity, and research, service, economic development, and "outreach" initiatives. He elaborated on each of these areas. He reported that the University System enrollment has gone from 22,957 to 24,378. This enrollment has been kept roughly the same by design in order to improve the academic quality of the institution. He said that the -3- program decision can be changed at any time; however, in his opinion, it is a very sound one for the institution. He pointed out that the ACT composite score has gone from 23.9 to 24.8 and the number of national merit scholars has gone from 12 in 1989-90 to 77 in 1995-96, putting the University again in the top 10 in the nation in terms of number of national merit scholars enrolled. He also reviewed the enrollment charts for the Community College System, Community College transfers to the University System, and African-American students, reporting increases in each area. President Wethington said that the student retention rate is an issue for everyone, but a goal has been set to make it better. It has been a struggle to show improvement, but there has been an increase in the retention rate. He reported that the annual total degrees awarded at the University have gone from 3,933 to 4,420 in the University System and from 2,659 to 3,687 in the Community College System. President Wethington reviewed the salary charts. He pointed out that the Community College System is at 92.1% of the benchmark median, virtually the same as 1989-90. He noted that the Community College System got above the median of the benchmark institutions in 1992-93; however, there has recently been a more dramatic increase in salaries in the benchmark institutions. He said that the Community College System and the University System were relatively close in 1993-94 with the University System at 97.9%. He said that there will be a strong push to make some significant improvement in Community College faculty salaries in the 1996-98 biennium. President Wethington said that one of his goals has been to try to achieve equal treatment of faculty and staff in the University. He has consistently been moving to bring the staff in line with faculty in terms of the University's contribution to the retirement system which is the University's best fringe benefit. In 1989-90, the staff had an 8% contribution and the faculty had 10%. Ihe faculty contribution has been held constant while the staff contribution has increased to 9 1/2%. He said he hoped to achieve a 10% contribution for staff in the next two or three years with some budget assistance from the Commonwealth. President Wethington reported that the percentage of African- American faculty has gone from 1.1% to 3.6% in the University System and from 4.7% to 5.5% in the Community College System. He said that the percentage of African-American faculty in the University System is a dramatic increase, and the minimum goal has been met in terms of the percent of African-American faculty on campus. He explained that this is a -4- goal set by the University administration and recruitment will continue beyond that goal. He said that the percentage of female faculty in the University System has increased from 21.1% to 27.4%, and this represents a good increase as the goal is 28%. He noted that the Community College System is not included in the chart since more than half the full-time faculty in the System are females. President Wethington said that another quality goal focuses on the improvement of teaching. He said that in 1992 40% of the freshman and sophomore level courses were taught by full-time faculty. In 1994, the number had increased to 46.1%. He noted that the goal is 50% and expressed hopes of approaching that 50% goal when the 1995 Fall Semester data is finalized. He said that 60% or more of student credit hours are being taught by full-time faculty, and this shows how much focus is being put on improving teaching in the University. President Wethington reported on external research support awarded and research and development expenditures. He said that the University receives more awards than it expends monies. The awards have increased from $70M to $116.9M, and in terms of expenditures, there was $111.9M. He said that this is a remarkable story and reflects the good work of the faculty and staff during some rather tough economic times in the state and nation. He noted that the University's research ranking has gone up from 73rd to 67th in the nation. He reported that private giving went up to an all-time record last year of $37M, and a new record was also set in terms of number of donors. The baseline for endowment growth in 1989-90 was $76M and in 1994-95 it had increased to $141.6M. While this represents a lot of work and support from staff and friends, it also represents the fact that the Board has redone its investment policies. He expressed thanks to Mr. Wilcoxson and others who have served on the Investment Committee over the last few years. He said that this is a remarkable story to tell about the success that the institution has had in terms of investing the dollars that it has received. President Wethington said that in this five-year period a number of capital construction projects have been completed to better serve the students, faculty and staff. In the University System, the following projects totaling $73.6M have been completed: Civil Engineering Building - State funds Field House - Athletic funds ASTeCC Building - Federal funds Medical Research Building - Federal and state funds -5- The major renovations and expansions totaling $112.6M include: Hospital expansion Addition to the Business and Economics Building Renovation of Miller Hall and Scovell Hall, Addition to the Animal Diagnostic Lab In terms of major acquisitions, the University acquired a new research farm at $11.5M to move the animal science research from Coldstream to Woodford County. He said that the grand total of capital related expenditures for the University System during this five-year period is $197.7M. President Wethington said that a number of buildings were added in the Community College System in the early part of this five-year period. He noted -the locations of the new buildings totaling $60.7M and said there was one sizable project at Madisonville in the major renovations/expansions category. He reported that the University also acquired the Crisp Building and land at Paducah during this period of time. He expressed thanks to the good work of a number of people, including Dr. Meriwether. He said the grand total for the Community College System during this five-year period is $67.2M. President Wethington mentioned the following capital projects in the University System that are under construction or in planning and design: Kentucky Clinic Expansion Hazardous Materials Facility Parking Structure W. T. Young Library Tennis Stadium He reported that the Southern Kentucky Rural Economic Development Center at Somerset was near completion, and there would be a grand opening in March or April. He said that buildings were in planning and design for Hazard, Hopkinsville and Ashland Community Colleges. He explained that these three projects were authorized for planning in 1992; however, no projects in higher education were funded in the last Governor's four years. These three projects are at the top of the University's list of priorities this time, and hopefully, Governor Paul Patton will recommend them for consideration by the General Assembly in the 1996 session. President Wethington called attention to some of the actions taken by the University during the last five years. He reminded the Board of the Strategic Plan and its major revision in 1993 which had the Board's approval. He said that the University operates by the Strategic Plan with certain strategic indicators that lets everyone know how the University is doing. -6- He said that a Physical Development Plan was approved in 1991. That Plan is a plan for the campus in Lexington and charts the physical growth and direction for the University for the next 20 to 25 years. In addition to that Plan, each of the Community colleges has been involved in developing and updating a physical or campus development plan. He reviewed the series of budget cuts during this period and said those series of reductions were managed in a variety of ways. Every effort was made to protect the academic programs of the University and keep them in the forefront, to insure that the faculty and staff did not have their salaries cut and to avoid layoffs. He reported that the staff hiring in the institution had been monitored for the past several years and the structure and organization of Central Administration had significant changes. President Wethington reported that the Board has refinanced essentially all of the bond issues of the University in the last few years. That endeavor saved the University some money and saved the State a considerable amount of money because most of the savings go back to the state rather than stay in the institution. He said that a faculty workload policy statement had been developed, and the faculty worked with him in developing such a statement. It came to the Board for approval and now the University has a policy statement that indicates a framework for faculty workload. President Wethington reported that the University went through a self-study reaccreditation process during this period and has its accreditation reaffirmed for another ten years. He said that as a part of the staffing review and restructuring, there were almost 600 positions in the University funded by state funds which were eliminated. Those positions were gone at the end of the budget cutback. He mentioned some of the significant initiatives that had gotten underway during the last five years including the W. T. Young Library, the Robinson Forest, and Lees College. He said that, in his opinion, these initiatives will prove to be important for everyone in the years ahead. In conclusion, President Wethington said that the Board had been extremely responsible and helpful in setting the policies for the University and the 1990-1995 President's Report is submitted to the Board to provide more of a perspective when talking with the public and with friends and supporters of the University. He said that he would be pleased to respond to any questions. -7- Governor Breathitt said that he appreciated the Report, and he believes that reports are very important. The Board's strong support of the President and the administration in all elements of the University has helped make this very fine Report a reality. He congratulated the members of the Board and said that he has been impressed with the work of Mr. Wilcoxson and the Investment Committee. He asked Mr. Wilcoxson to be responsible for getting a report on the work of the Investment Committee at the next Board meeting. He said that the Committee has been outstanding, and Mr. Wilcoxson has been very aggressive in his management. Mr. Wilcoxson said that he would work with Mr. Henry Clay Owen, Controller and Treasurer, and have Mr. Owen give the report at the next meeting. Professor Mather thanked President Wethington for his interesting Report. He commended him and his staff for the work that went into the Report and said it was very well done. He referred to page 15, Percent of Lower Division Courses and Student Credit Hours Taught by Full-time Faculty. He provided an example of a history class stating that the idea is to get the best faculty in front of as many students as possible for lectures and then allow students to have the opportunity to participate in smaller discussion sections providing a one-on-one interchange. He said that this seems to be working quite effectively. Mr. Grayson said that as a new Board member the Report was interesting and impressive. President Wethington thanked his staff, Ed Carter, Joan McCauley and their staff who helped put the information together. He said that he hoped the Report will get everyone focused on the entire University and not on just one particular piece of it. Following a discussion about the availability of the Report to the Alumni Association, President Wethington asked Mr. Carter to work with Bob Whitaker regarding appropriate distribution of the Report. F. Personnel Actions (PR 2) President Wethington recommended that approval be given to the appointments, actions and/or other staff changes which require Board action; and that the report relative to appointments and/or changes already approved by the administration be accepted. Mrs. Sims moved approval. Her motion, seconded by Mr. Shoop, carried. (See PR 2 at the end of the Minutes.) G. New Academic Program and Waiver (PR 5A) President Wethington said that PR 5A is a proposal for a new academic program and a waiver. He asked Chancellor Zinser to comment on the new academic program portion and said that he would comment on the waiver. -8- Chancellor Zinser said that she was very pleased to have a chance to comment on the new program for the Board's consideration. It is a Master's program in Historic Preservation that has been discussed over the last four or five years. She introduced Dean David Mohney, College of Architecture, and said that the Faculty of the College had been responsible for putting the program together, having embraced other colleagues across the University. She explained that this will be a very multidisciplinary program and provided some examples. The program has to do with the preparation of professionals who are concerned with the preservation of an historic and valuable built environment. This is a growing area dealing with the preservation of buildings, the neighborhood downtown areas and the rural landscapes. It involves architecture analysis, conservation and design for historic structures and settings, including the social economic and political issues of preservation. She said that there is a growing need and demand and a very high level of interest in the program. While this would be the only program in the Commonwealth in this area, there are three programs that are at least similar at the University of Virginia, Ball State University, and Middle Tennessee State University. The program is a two-year program for most students, particularly if they are studying full-time, and it involves 48 credit hours. There will initially be about 10 students in the major, but it will grow over four years to be over 20. There will also be some part-time students studying for this degree program at the Master's level. Dr. Zinser stated that the research opportunities for the faculty will grow tremendously because there will be practice based research environments and laboratories throughout the Commonwealth to look into this area, and they will be able to provide important land-grant oriented public service through consulting with these agencies. She reiterated that there is a need for the program, and the high interest is there. The program fits in well with the land-grant mission, and it will further enrich the University's service to the Commonwealth. President Wethington asked if there were any questions about the program. Governor Breathitt asked Dean Mohney to comment on the interesting and innovative work being done downtown with the city on revitalization. Dean Mohney said it was a pleasure to talk about some of the long- range goals for the College of Architecture. He said that he would like to see the College involved very directly with the University community and the Commonwealth. He said that he hoped to work more with the local government in Lexington regarding issues that they are confronting and -9- bringing some sense of expertise to solving those goals on a long-term basis. He said, in his opinion, it is a wonderful educational opportunity for the students. He said that discussions are underway with city officials in some areas in Louisville, and one of the design studios is spending the spring semester working in the Russell neighborhood of Louisville with some faculty members from the University of Kentucky and the University of Louisville. He said that he sees this as a primary goal for the college at this point in time. Mr. Bates said that he thought they would be overwhelmed with state- wide support. President Wethington said that the second part of the recommendation seeks Board approval to adopt a resolution requesting a one-year waiver of a restriction on new degree program proposals imposed by the Council on Higher Education under its Equal Opportunity Program. As illustrated in the 1990-1995 President's Report, the University is making considerable progress in terms of meeting its equal opportunity goals. He said that he anticipates that since the University is making steady progress that the request for waiver will be acted upon positively. That waiver is a broad one which will allow other new programs to be considered during 1996. He recommended approval of PR 5A. On motion made by Mr. Bates, seconded by Mrs. Sims and carried, PR 5A was approved. (See PR 5A at the end of the Minutes.) H. Appointments to University of Kentucky Humanities Foundation (PR 5B) President Wethington recommended that approval be given to the appointment of Boynton Merrill, Jr. and Josephine D'Amato Richardson as members of the Board of Directors of the University of Kentucky Humanities Foundation for four-year terms beginning with the April 1996 meeting. Mrs. Weinberg moved approval. Mr. Chellgren seconded the motion, and it carried. (See PR 5B at the end of the Minutes.) I. Acceptance of Interim Financial Report for the University of Kentucky for the Six Months Ended December 31. 1995 (FCR 1) Mr. Hardymon, Chairperson of the Finance Committee, reported that the Finance Committee met and considered 10 items for action. FCR 1 is a recommendation that the Board accept the University of Kentucky Consolidated Financial Report for the six months ended December 31, 1995. He reported that the cash flows are excellent and said that the balance sheet is in good shape. He said the Committee thought the report was excellent and moved approval of FCR 1. His motion, seconded by Mr. Chellgren, passed. (See FCR 1 at the end of the Minutes.) -10- J. Disposal of Personal Property (FCR 2) FCR 2 is the disposal of personal property. He reviewed the items in Attachment I and II and noted that the sale will be by sealed bid. He moved that the Board approve the disposition of surplus equipment as described in Attachment I and II. Mr. Shoop seconded the motion, and it carried. (See FCR 2 at the end of the Minutes.) K. Report of Lease (FCR 3) Mr. Hardymon said the first item in the report is a new six-month lease for office space involving property at Scott Street, Covington, Kentucky. The annual rate is $5,800, and the per square footage amount is $11.60. He said that the second agreement is an addendum to a lease between the University and the Lexington-Fayette Urban County Government and does not exceed $30,000 annually. It is for the use of 850 square feet for design studio instruction. On motion made by Mr. Hardymon, seconded by Mrs. Sims and carried, approval was given to the Report of Leases. (See FCR 3 at the end of the Minutes.) L Capital Construction Report (FCR 4) Mr. Hardymon said that FCR 4 is the quarterly Capital Construction Report. The projects seem to be on schedule and within the funding, and it is a very complete, up-to-date report. He moved that the Capital Construction Report for the three months ending December 31, 1995 be accepted. Mr. Welenken seconded the motion, and it passed. (See FCR 4 at the end of the Minutes.) Mr. Welenken said that he appreciated the work that goes into preparing the summary reports, and they are certainly a lot easier to read. He asked that a line be added to future reports to indicate the progress of each project. M. Patent Assignment (FCR 5) Mr. Hardymon said that FCR 5 was a Patent Assignment that had been withdrawn. N. Ann Scott Maher Mason Vocal Music Scholarship Fund (FCR 6) Mr. Hardymon said that FCR 6 is a gift of $100,000 from Ann Scott Maher Mason to the School of Music. The gift is to benefit graduate and undergraduate students who major in vocal music performance or vocal music education. He said that Mrs. Mason is a 1944 graduate of the UK -11- School of Music and a resident of Maysville, Kentucky. He moved approval of FCR 6. Mr. Reed seconded the motion, and it passed. (See FCR 6 at the end of the Minutes.) 0. Ashland Foundation. Inc. Gift and Pledge (FCR 7) Mr. Hardymon said that FCR 7 is from a very valued supporter. He moved that the Board accept a gift of $40,000 and a pledge of $160,000 from Ashland Foundation, Inc. of Ashland, Kentucky to the Ashland Community College's Partners in Progress Campaign. This $200,000 commitment will be split equally between Ashland Community College's Scholarship and Talent Grant Endowment and the Center for Workplace Quality Endowment. The Foundation will make annual $40,000 payments which began in November, 1995. His motion, seconded by Mr. Chellgren, passed. (See FCR 7 at the end of the Minutes.) P. Chris T. Sullivan Pledge (FCR 8) Mr. Hardymon said that FCR 8 is a recommendation that the Board accept a pledge of $100,000 from Chris T. Sullivan of Tampa, Florida to the University for construction of a new Sigma Alpha Epsilon fraternity house. He said that this is the first part of a sizeable pledge to build a new house for the undergraduate chapter. The house would replace the one on Rose Lane and would be owned by the University and leased to the fraternity. A campaign is being co-chaired by Mr. W. T. Young and Edward T. Breathitt, both of Lexington, and William H. Young of Franklin, Kentucky. The campaign will be cited by UK as a model for other fraternities and sororities that are in need of new housing. He said that Mr. Sullivan is a 1972 graduate of the University of Kentucky and was a member of the fraternity. He is a native of Florida and is now CEO of Outback Steak House, Inc., a national restaurant chain. He was named to the C. M. Gatton College of Business and Economics Hall of Fame in 1994. Mr. Hardymon moved approval of FCR 8. Mr. Grayson seconded the motion, and it passed. (See FCR 8 at the end of the Minutes.) Q. R. C. Durr Company Gift (FCR 9) Mr. Hardymon moved that the Board accept a gift of $400,000 from the R. C. Durr Company of Florence, Kentucky to the Sanders-Brown Center on Aging. The gift is for construction of research laboratories which will be housed in a Center on Aging addition that is being funded by private gifts and a federal grant. Mr. Durr is from Walton, Kentucky and is the retired President of the R. C. Durr Company, a highway construction business. He is a long-time supporter of many university colleges and programs. Mr. -12- Hardymon's motion was seconded by Dr. Plattner and carried. (See FCR 9 at the end of the Minutes.) R. Acquisition and Sale of Real Property (FCR 10) Mr. Hardymon said that FCR 10 is the Acquisition and Sale of Real Property and is the result of 18 months of discussions. The real property to be acquired by the University consists of 30,250 square feet and a building with an appraised replacement value of $641,500. The University Heights Church of Christ is located at 328 Clifton Avenue and within the approved acquisition area for the University. He displayed maps showing the planned geographic growth of the University and said that this property is needed for completion of the Clifton Avenue site acquisition plan. The arrangement is to trade a similar size 30,000 square foot piece of land that the University owns. Both properties were appraised and were of a similar amount. He moved approval of FCR 10. Mr. Welenken seconded the motion, and it passed. (See FCR 10 at the end of the Minutes.) S. Meeting Adjourned There being no further business to come before the Board, the Chairperson adjourned the meeting at 2:14 p.m. Respectfully submitted, Lois C. Weinberg Secretary Board of Trustees (PR 2, 5A, and 5B; FCR 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10 which follow are official parts of the Minutes of the meeting.) PRI1 Office of the President January 23, 1996 PRESIDENT'S REPORT TO THE BOARD OF TRUSTEES 1. UK Hospital Makes '100 Best-Run Hospitals' List for Third Consecutive Year The UK Hospital has been named one of the 100 Best-Run Hospitals for the third consecutive year. The national list is produced by Health Care Investment Analysts, Inc. and Mercer Management. UK Hospital is one of seven hospitals to appear on the list for three consecutive years and the only Kentucky hospital to be included three times in a row. The "100 Top Hospitals: Benchmarks for Success" list appeared in the December 4, 1995, issue of Modem Healthcare, a weekly business magazine. 2. Gheens Foundation Announces Grant to UK College of Law The Gheens Foundation of Louisville has announced a $350,000 grant to the UK College of Law in memory of the foundation's vice president, Laramie L. Leatherman. The gift brings to $500,000 the endowment for the Laramie L. Leatherman Distinguished Professorship in Tax Law. 3. Hazard CC Radiography Program Receives Five-Year Accreditation Hazard Community College's two-year radiography program has received accreditation for five years from the Joint Review Committee on Education in Radiologic Technology. Only 25 percent of radiography schools in the United States receive such extended accreditation. Graduates of the progra