xt77pv6b3429 https://exploreuk.uky.edu/dips/xt77pv6b3429/data/mets.xml Lexington, Kentucky University of Kentucky 19941013 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, 1994-10-dec13. text Minutes of the University of Kentucky Board of Trustees, 1994-10-dec13. 1994 2011 true xt77pv6b3429 section xt77pv6b3429 Minutes of the Meeting of the Board of Trustees of the University of Kentucky, Tuesday, December 13, 1994. The Board of Trustees of the University of Kentucky met at 4:00 p.m. (Lexington time) on Tuesday, December 13, 1994 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. Ted Bates. B. Oath of Office Administered Governor Breathitt called upon Paul Van Booven, Associate General Counsel, to administer the oath of office to Mr. Scott A. Crosbie, newly elected student trustee who is replacing Mr. Thomas Arthur Jones. Mr. Crosbie will serve for the remainder of the 1994-95 academic year. C. 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. Paul W. Chellgren, Mr. Robert N. Clay, Mr. Scott A. Crosbie, Professor Loys L. Mather, Dr. Robert P. Meriwether, Professor Deborah Powell, Mr. Steven Reed, Mr. Frank Shoop, Mrs. Marian Sims, Professor John Sistarenik, Mr. Daniel C. Ulmer, Jr., Mrs. Lois C. Weinberg, Mr. Martin Welenken, and Mr. Billy B. Wilcoxson. Absent from the meeting were Mr. James F. Hardymon, Mrs. Elissa Plattner, and Mr. William B. Sturgill. The University administration was represented by President Charles T. Wethington, Jr.,; Chancellors Ben W. Carr, Robert E. Hemenway, and James W. Holsinger; Vice Presidents Joseph T. Burch, Edward A. Carter, Delwood Collins, 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; 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 4:04 p.m. D. Approval of Minuter Governor Breathitt said that the Minutes of the Board meeting on October 25, 1994 had been distributed and asked for a motion of approval. On motion made by Mr. Welenken, seconded by Mrs. Sims and carried, the Minutes were approved. E. President's Report and Actioi Items President Wethington commented on the following items in PR 1: 1. The UK Hospital has been named one of the "Top 100 Hospitals in the U.S." by Health Care Investment Analysts, Inc., and Mercer Management Consultants for the second consecutive year. - 2 - 2. The Donovan Scholars Program, one of the first of its kind in the U.S., is celebrating its 30th year of providing educational opportunities for older students. 3. Prestonsburg Community College has received a $355,420 grant from the Appalachian Regional Commission for a campus health service. 4. The UK College of Agriculture and the University of Arkansas and North Carolina State University have been chosen to share a $737,000 grant from the W. K. Kellogg Foundation. The colleges will develop educational programs to bridge the gap between those who would develop and those who would preserve natural resources. 5. The libraries of UK and the University of Tennessee at Knoxville have formed an alliance to share research collections, doubling the materials available to the faculty and students of both institutions. 6. A proposed partnership between Kentucky Tech and Paducah Community College may become the model for all of Kentucky's community colleges in the future. The proposal approved last month by the Council on Higher Education calls for Paducah Community College to recognize and give students credit for classes taken at Kentucky Tech's West Campus. 7. Approximately 1,000 architecture students held their national conference titled Bluegrass Forum 1994 in Lexington November 22-26. The conference was hosted by the UK chapter of the American Institute of Architecture Students. 8. A computerized version of some sections of the original manuscripts of the Old English heroic poem Beowulf is featured in the December issue of National Geographic magazine. The Electronic Beowulf program, which is accessible to scholars around the world through Internet, is edited by UK English Professor Kevin Kiernan. President Wethington invited the members to peruse the other items at their leisure. 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. Mr. Shoop moved approval. The motion, seconded by Mr. Wilcoxson, passed. (See PR 2 at the end of the Minutes.) G. Naming of University Building - William T. Young Library (PR 3A) President Wethington said that PR 3A recommends that the Board approve the name "William T. Young Library" for the central and life sciences library on the campus of the University of Kentucky in Lexington. He reminded the members of the groundbreaking ceremony held on campus December 6 for this facility. He said that the University of Kentucky 3 Alumni Association and the Athletic Association have undertaken to finance and construct this building. The building will be given to the University upon completion of construction. He reported that the Committee on Naming Buildings has recommended positively on this name for this new facility. He noted that Mr. Young attended the groundbreaking ceremony and was recognized at this event. President Wethington reviewed briefly Mr. Young's credentials. He said that Mr. Young was awarded the B.S. Degree with high distinction from the College of Mechanical Engineering at the University of Kentucky in 1939 and holds an Honorary Doctor of Laws degree from the University of Kentucky. Mr. Young was an award winning leader of the ROTC program and excelled in all aspects of campus life. He has been a part of the academic and business life of the state for more than 50 years. President Wethington expressed pleasure in recommending that the new building be named the William T. Young Library. Mr. Wilcoxson moved approval. Mr. Crosbie seconded the motion and it carried unanimously. (See PR 3A at the end of the Minutes.) H. Candidates for Degrees - Qpmmunitv College System (PR 4A) President Wethington recommended that the degrees specified in PR 4A be awarded to the persons named, upon certification thst the requirements for those degrees have been satisfactorily completed. He asked to editorially add the name of Mary A. Hanks to the list at Jefferson Community College because her name was inadvertently left off the list. Mr. Chellgren moved approval. His motion was seconded by Professor Sistarenik and passed. (See PR 4A at the end of the Minutes.) I. Candidates for Degrees - University System (PR 5A) President Wethington said that PR 5A is a companion recommendation to PR 4A. The recommendation is that the President be authorized to confer upon each individual whose name appears on the attached list the degree to which he or she is entitled upon certification by the University Registrar that the individual has satisfactorily completed all requirements for the degree for which application has been made and as approved by the University Senate. On motion made by Mrs. Bell, seconded by Mrs. Sims and carried, PR 5A was approved. (See PR 5A at the end of the Minutes.) J. Change in Degree Title (PR 5B) President Wethington recommended that a change of degree title from Master of Music Performance to Master of Music Performance or Composition be approved. He stated that the change is being proposed because an emphasis in composition has been strengthened and redesigned to conform to accreditation guidelines and because an emphasis in conducting has been added. He noted that the change has been approved by the Senate Council and the University Senate. Mrs. Weinberg moved approval. Her motion, seconded by Mrs. Bell, carried. (See PR 5B at the end of the Minutes.) - 4 - K. Change in Degree Title (PR 5C) President Wethington recommended that a change of degree title from Master of Arts History and Appreciation to Master of Arts Musicology or Theory be approved. He said that the present title does not accurately reflect what is being offered in the program. The proposed name change will also reflect that this program is parallel with the doctoral degree in this area. Mr. Reed moved approval. Mrs. Sims seconded the motion and it passed. (See PR 5C at the end of the Minutes.) L. Bachelor of Science in Agricultural Biotechnology (PR 5D) President Wethington said that PR 5D and 5E are degree programs from the Lexington Campus that involve the College of Agriculture. He asked Chancellor Hemenway to comment on the proposed degree programs. Chancellor Hemenway said that these two new degree programs are illustrative of the process that occurs within the institution. The administration is very cautious about proposing new degree programs. He explained that there must be a clear determination of student and work force need and a full review from the faculty committees and the faculty senate. There is also a determination of administrative feasibility, meaning that it fits within the plans of the institution and also that there are resources to support the degree program. The program is submitted to the Board for approval and then to the Council on Higher Education for consideration. He said that these two programs illustrate a natural process whereby new disciplines emerge and noted that there is considerable demand for these programs. President Wethington recommended that the Board authorize the approval of the new degree program Bachelor of Science in Agricultural Biotechnology for submission to the Council on Higher Education. On motion made by Professor Mather, seconded by Mr. Shoop and carried, PR 5D was approved. (See PR 5D at the end of the Minutes.) M. Bachelor of Science in Natural Resource Conservatignand Management (PR 5E) President Wethington recommended that the Board authorize the approval of the new degree program Bachelor of Science in Natural Resource Conservation and Management for submission to the Council on Higher Education. Professor Mather moved approval. His motion, seconded by Mrs. Weinberg, passed. (See PR 5E at the end of the Minutes.) N. Appointments to University of Kentucky Business Partnership Foundation (PR 5FI President Wethington recommended that approval be given to the appointment of Jack C. Smith, Jr. and Martin Welenken as members of the Board of Directors of the University of Kentucky Business Partnership Foundation for four-year terms beginning immediately and extending through the Fall 1998 Board meeting. He said that the Board of Directors of the Business Partnership Foundation had met and recommended these appointees. Mr. Wilcoxson moved approval. His motion, seconded by Mr. Chellgren, carried. (See PR 5F at the end of the Minutes.) - 5 - O. Reappointments to Universitv of Kentucky Equine Research Foundation (PR 5G) President Wethington recommended that approval be given to the reappointments of Mr. John A. Bell, II, Mrs. Alice Chandler, Mr. Rick Nichols, Mr. Nick Nicholson, Dr. David O'Neal, Mr. Robert L. Warren, and Dr. Thomas P. Pirone as members of the Board of Directors of the University of Kentucky Equine Research Foundation for four-year terms beginning December 15, 1994. He said that these appointees represent the horse industry and the University faculty. He noted that Mr. Shoop and Mr. Clay serve as Board of Trustee representatives on this Equine Board of Directors. On motion made by Professor Mather, seconded by Mr. Shoop and carried, PR 5G was approved. (See PR 5G at the end of the Minutes.) P. Professor Powell's Comments Professor Powell reminded the Board of the University Senate's annual holiday reception at the King Alumni House immediately following the Board meeting. She and Professor Mather extended an invitation to the Board to attend the reception. President Wethington encouraged the members of the Board to attend and visit with the Senate members and others from campus. Q. Comments about Library F~acilitv Governor Breathitt recognized the outstanding job that President Wethington and his team have done in arranging the method for financing of the Library. He said that the arrangement for a AAA rating and a very low interest rate on the thirty-year bonds are outstanding. He congratulated President Wethington and his team for realizing this long sought goal and doing it in such an expert way. President Wethington and his team were given a round of applause. President Wethington thanked the Board for its enthusiastic support of the project. He said that it made it easier for everyone to work their way through the process knowing that there was the exceptionally strong support of the Board. Professor Mather said that as a member of the faculty it seemed like a fairly painless explanation and the faculty feels they probably dodged a bullet. He said that President Wethington obviously respected the departmental budgets and the faculty does appreciate it. He said that he hopes the Board understands that the money was not necessarily sitting there idle. While the plan proposed looks rather painless, it is not. It has clearly cut down on the discretionary power of the University for funding special projects which have meant a great deal to the institution. The library is important but he hopes the Board understands that it has not come at no cost to the University. He expressed hope that there might be some added funding from the outside that might make up for what the University has had to do internally to make up for this reallocation of funds. He emphasized that it is a reallocation from other things that the University has been doing and the President has not found new money. - 6 - Governor Breathitt stressed the importance of everyone working together with the citizens of the Commonwealth in seeing that higher education has a higher priority in the next budget. He urged the Board to talk to the candidates for Governor and the candidates for the legislature about recognizing the need for higher education to meet its commitment to the young people of the state. President Wethington said that the library project has been made a priority for the University. It was previously submitted in the budget request, and it continues to be made a priority in the plans for the University. He said that this is a decision to fund something that, in the administration's opinion, is critical for the future of the institution. He explained that in making those kind of decisions you also make a decision that something else does not get funded. The library project is important. The Governor and General Assembly will be asked to help with the support for this project because it is good and important to the Commonwealth. The plan is to move ahead, and the library construction will be underway in the very near future. R. Acceptance of Interim Financial Report for the University of Kentucky for the Four Months Ended October 31. 1994 (FCR 1) Governor Breathitt said that Mr. Hardymon, Chairperson of the Finance Committee, was present for the Finance Committee but had to leave. lie asked Mr. Chellgren to give the report for the Finance Committee. Mr. Chellgren reported that the Finance Committee met and discussed seven items requiring Board action and three information items. He said that FCR 1 recommends that the Board accept the University of Kentucky consolidated financial report for the four months ended October 31, 1994. lie reviewed the realized income, the expenditures and commitments and moved approval. Mr. Ulmer seconded the motion and it carried. (See FCR I at the end of the Minutes.) S. Report of Lease (FCR 2) Mr. Chellgren moved that the Board accept the President's Report of the lease agreement between the University of Kentucky and the Lexington-Fayette Urban County Government Public Facilities Corporation. He noted that FCR 2 is a recurring report of leases that are less than $30,000 and this particular lease has been in existence for the last three years with the Pathology Department. Mr. Crosbie seconded the motion and it passed. (See FCR 2 at the end of the Minutes.) T. 1994-95 Budget Revisions (FCR 3) Mr. Chellgren reviewed the budget revisions in FCR 3. He mentioned the income items were spelled out and noted some pluses and minuses netting to a slight decrease in the general fund. He said that there were no unusual items and moved approval. Mrs. Bell seconded the motion and it carried. (See FCR 3 at the end of the Minutes.) - 7 - U. Patent Assignment (FOR 4) Mr. Chellgren said that FCR 4 relates to an invention by a relatively new Assistant Professor, Todd Smith. This invention relates to the medical field, and more particularly to an apparatus and method for the reliable, time-released delivery of a selected medical preparation. This is considered to have potential commercial applications. He moved that the Board authorize the President to execute an assignment on behalf of the Board to the University of Kentucky Research Foundation the following Letters Patent of the United States and the invention represented thereby: Todd T. Smith, Serial No. (to be assigned), filed October 28, 1994. His motion, seconded by Mr. Shoop, carried. (See FCR 4 at the end of the Minutes.) V. Sewer Easement to City of Owensboro to Benefit Daviess County Board of Education (FOR 5) Mr. Chellgren said that FCR 5 recommends that the President or his designee be authorized to execute a permanent easement across the Owensboro Community College campus for sewer facilities to be constructed and maintained by the City of Owensboro, Kentucky. He explained that the sewer easement is to accommodate lines running to a new middle school currently under construction by the Daviess County Board of Education on New Hartford Road across from the Community College's main entrance. He noted that this will also improve the sanitary sewer service to the Owensboro Community College. On motion made by Mr. Chellgren, seconded by Mrs. Weinberg and passed, FCR 5 was approved. (See FCR 5 at the end of the Minutes.) W. A Resolution Authorizing the jniversitv's Participation in the Formation of an Integrated Delivery System and its Associated Corporate Bodiesz Including a Provider Network and a Service Corporation which will Ownand Control a Managed Care Organization, such as an HMO and Other Related Businesses (FOR 6) Mr. Chellgren said that this item is complex. It requires a commitment by the University of up to $6,000,000. He asked Chancellor Holsinger to discuss the implications of FCR 6. Chancellor Holsinger said that FCR 6 is a resolution that authorizes the University's participation in the formation of an integrated health care delivery system and its associate corporate bodies. This includes a provider network and a service corporation which will own and control a managed care organization such as a health maintenance organization and other related businesses. In April of this year House Bill 250 passed the legislature of the Commonwealth and the state entered into an era of health care reform. The result of that has been for the Medical Center to look to the future to see how we might most effectively enter into the provision of health care services to the citizens of the Commonwealth particularly in eastern and central Kentucky. Utilizing Commonwealth Health Care Alliance, which has been in place for several years now, is a way to do that. He explained that a number of hospitals and physicians across eastern and central Kentucky have come together to develop a provider network that will be in place and able to bid on a variety of contract possibilities either with the state or with businesses, corporations, or other groups of individuals who - 8 - might seek to obtain their professional services for the care of clinical needs by these individuals. As a result of that, two vice chancellors, Frank Butler and Dean Emery Wilson of the College of Medicine and their staff put together the corporate structure that will allow us to go forward into the future in a way that will help to maintain the sound fiscal viability of our clinical enterprise. He said that it is important to remember that everything we do in the way of our clinical enterprise is done in an effort to have the appropriate education for the students in the next generation of health care clinicians and to have a place where they can undergo the appropriate high quality education that is required for them to go into their particular type of practice in the future. This venture will provide that opportunity. It requires us to be authorized by the Board to enter into the corporation and to be a part of the funding of that corporation. The University would be allowed to invest up to $6 million of University Hospital funds which will be used along with funds from other qualified hospitals, physicians and health care providers to provide capitalization for this enterprise. President Wethington recognized Mr. Frank Butler, Director of the University Hospital, and praised him for his outstanding performance. Mr. Butler was given a round of applause. Mr. Chellgren moved approval of FCR 6. His motion, seconded by Mr. Wilcoxson, carried. (See FCR 6 at the end of the Minutes.) X. Amendment to Agreement Between University and Kentucky Medical ServiQes Foundation FCR 7) Mr. Chellgren said the purpose of FCR 7 is to authorize the President of the University to execute an amendment to the agreement between the University and the Kentucky Medical. Services Foundation. He asked Mr. Lawson comment on FCR 7. Mr. Lawson said that FCR 7 is to make two minor changes in the agreement between the University of Kentucky and the Kentucky Medical Services Foundation. (The Kentucky Medical Services Foundation administers the income that is generated from professional services under our medical. services plan.) The first minor change would allow KMSF to obtain property for use as additional practice sites for teaching, research, and patient care. a need that grows out of the health care reform described by Chancellor Holsinger in the discussion of FCR 6. The second change would provide that the payment of costs for obtaining these additional sites would be charged to clinical income. He added that ownership of any real property acquired pursuant to these new provisions of the agreement would be owned by and held in the name of the Foundation. He noted, however, that the KMSF Articles of Incorporation provide that if the Foundation ever dissolves, all of its assets would revert to the University; thus, property obtained as practice sites under these changes to the agreement would pass to the University should the Foundation ever cease to exist. On motion made by Mr. Cheligren, seconded by Mr. Crosbie and carried, FCR 7 was approved. - 9 - Y. Report on Utilization of the General Fund Surplus Expenditure Plan Funds - Information Item Mr. Chellgren said that the President also briefed the Finance Committee on three information items. The first was a report on the utilization of the General Fund Surplus Expenditure Plan funds. He reminded the Board that the Kentucky General Assembly added an additional 1% to the budget. This specifies and lays out where the President and his staff have decided to allocate those funds for expenditures during the 1994 budget. This allocation was discussed in some detail in the Finance Committee meeting. Z. Report on Athletic Association Funds - Information Item Mr. Chellgren said that the second information item relates to the library financing. It is a report on the Athletic Association funds that have been reallocated to support the bonds that were issued to initiate the construction of the library. The debt service on the bonds is approximately $3.2M. This subject was also discussed extensively in the Finance Committee. AA. Report on the Bond Sale Mr. Chellgren said that the last item relates to the financing of the library. The Committee was given a brief report on the bond sale. Seven bids were received on December 8 at 11 a.m. The total spread on the bids was about 1/10 of a percent interest rate which shows what an excellent bid process took place. Lehman Brothers, one of the largest and most prestigious Wall Street investor banking houses with PaineWebber being the co-manager, submitted the lowest bid at a net interest cost of 6.75%. The next lowest bid was submitted by Goldman Sachs & Co. at a net interest cost of 6.78% The difference being less than 300th of 1% which indicates that it is a very competitive process. It is a $41 million bond issue with a 20 year average maturity and a 30 year maximum maturity. The Kentucky Medical Services Foundation approved a guarantee to back the bonds and help ensure their excellent ratings. He said this was an excellent process and a very successful one that the institution will be proud of for decades to come. BB. Meeting Adjourned There being no further business to come before the Board, the Chairperson adjourned the meeting at 4:45 p.m. Respectfully submitted, Lois C. Weinberg Secretary Board of Trustees (PR 2, 3A, 4A, 5A, 5B, 5C, 5D, 5E, 5F, and 5G; FCR 1, 2, 3, 4, 5, 6, and 7; and the Information Items which follow are official parts of the Minutes of the meeting.) Office of the President December 13, 1994 PA' Members, Board of Trustees: PERSONNEL ACTIONS Rer~mijd~ation: that approval be given to the attached 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. Background: The attached recommended appointments and/or other staff changes require approval by the Board of Trustees in accordance with Part VIII-B of the Governing Regulations of the University. These recommendations are transmitted to the Board by the appropriate chancellor through the President and have the President's concurrence. Under the Governing Regulations, the authority to make certain appointments and/or other .taff changes is delegated to the President or other administrators who are required to report their actions to the Board. These items of report follow the recommendations requiring Board approval. 0197 o2n Action taken: Approved V Disapproved Other _ Date: December 13e 1994 -1- CENTRAL ADMINISTRATION I. BOARD ACTION A. RETIREMENTS Employee Benefits Brown, Lorene, Disabled Staff, Employee Benefits, after 20.33 years of service, under AR II-1.6-1 Section III.B, effective 11/30/94. Hopper, Mary S., Disabled Staff, Employee Benefits, after 33.0 years of service, under AR 11-1.6-1 Section III.B, effective 12/31/94. Information Systems Perkins, Martha D., Account Clerk V, Publishing Services, after 28.5 years of service, under AR II-1.6-1 Section III.A.1, effective 12/31/94. B. EARLY RETIREMENTS Kentucky Water Resources Research Institute Brown, Ancel, Administrative Assistant I, Kentucky Water Resources Research Institute, after 20 consecutive years of service, under AR II-1.6-1 Section III.A.2, effective 11/22/94. Huffsey, Ralph R., Operations Coordinator, Kentucky Water Resources Research Institute, after 21 consecutive years of service, under AR II-1.6-1 Section III.A.2, effective 1/3/95. II. ADMINISTRATIVE ACTION A. ADMINISTRATIVE APPOINTMENT Information Systems Herrin, Eric H., Senior Systems Computing Scientist, Math Science Computing Facility, effective 11/01/94. 7287 -2- COMMUNITY COLLEGE SYSTEM I. BOARD ACTION A. EARLY RETIREMENTS Office of the Chancellor Tudor, Daniel G., CC Coordinator of Student Affairs (under AR II-1.6-1 Section III.A.2), following 29.6 consecutive years of service, 12/31/94. Elizabethtown Community College Lee, Harry G., Professor in the Community College System (with tenure), (under AR II-1.6-1 Section III.A.2), following 28.33 consecutive years of service, 1/19/95. II. ADMINISTRATIVE ACTION A. ACADEMIC APPOINTMENTS Henderson Community College Knecht, Michael W., Librarian IV in the Community College System, 1/1/95 through 6/30/95. Jefferson Community College Ockerman, Jo Carol, Instructor in the Community College System (voluntary), 11/2/94 through 11/9/95. Lexington Community College Adams, Dan, Instructor in the Community College System (voluntary), 1/11/95 through 6/30/97. Arru, Sister Therese, Instructor in the Community College System (voluntary), 1/11/95 through 6/30/97. Caskey, Paula P., Instructor in the Community College System (voluntary), 10/10/94 through 6/30/97. Collins, Estelle, Instructor in the Community College System (voluntary), 1/11/95 through 6/30/97. Combs, Gary W., Instructor in the Community College System (voluntary), 11/3/94 through 6/30/97. Halcomb, Winston C., Instructor in the Community College System (voluntary), 10/10/94 through 6/30/97. Hamann, Tommie A., Instructor in the Community College System (voluntary), 1/11/95 through 6/30/97. Howard, Maggie, Instructor in the Community College System (voluntary), 1/11/95 through 6/30/97. Miller, Walter B., Instructor in the Community College System (voluntary), 1/11/95 through 6/30/97. Narramore, David A., Instructor in the Comm