xt7b5m625j6w https://exploreuk.uky.edu/dips/xt7b5m625j6w/data/mets.xml Lexington, Kentucky University of Kentucky 1982044 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, 1982-04-may4. text Minutes of the University of Kentucky Board of Trustees, 1982-04-may4. 1982 2011 true xt7b5m625j6w section xt7b5m625j6w 










    Minutes of the Meeting of the Board of Trustees of the University of
Kentucky, Tuescav, May 4, 1982.



    The University of Kentucky Board of Trustees met in regular statutory
session on Tuesday, May 4, 1982 at 2 p.m. (Eastern Daylight Time) in the
Board Room on the 18tn floor of the Patterson Office Tower on the Lexington
campus.

    A.   Meeting ODened and Roll Called

    Mr. William B. Sturgill, Chairman, called the meeting to order at 2:40
p.m. and pronounced the invocation.

    The following members of the Board of Trustees answered the call of tne
roil:  Mr. William B. Sturgill, Chairman, Mr. William R. Black, Governor
Edward T. Breathitt, Mr. Britt Brockman, Mrs. Betty Pace Clark, Mr. Albert
G. Clay, Professor Opal Skaggs Conley, Mr. Tracy Farmer, Mr. Ronald G.
Geary, Mrs. Edythe Jones Hayes, Mrs. Sally Hermansdorfer, Mr. Breretorn C.
Jones, Mr. R. Larry Jones, Mr. Thomas B. Kessinger, Mr. W. Terry McBrayer,
Mr. Robert T. McCowan, Mr. A. Stevens Miles, Professor William F. Wagner,
and Professor Constance P. Wilson.  Absent from the meeting were Governor
Albert Benjamin Chandler and Mr. Frank Ramsey. The University
aaministration was represented by President Otis A. Singletary; Vice
Presidents Jack C. Blanton, Peter P'. Bosomworth, Donald B. Clapp, Art
Gallaher, Raymond R. Hornback, John T. Smith, Charles T. Wethington, and
Robert G. Zumw'inkLe; Dr. Wimberly C. Royster, Dean of the Graduate School
and Coordinator of Research; and Mr. John C. Darsie, General Counsel.
Members of the various news media were in attendance. The Secretary, Mrs.
Clark, reported a quorum present and the Chairman declared the meeting
officially open for the conduct of business at 2:42 p.m.

    B.   Minutes Approved

    The Minutes of the April 6, 1982 meeting of the Board of Trustees were
approved without objection.

    C.   Apointments to the Trustee Committee for the Future of Robinson
Forest

    Mr. Sturgill noted there were two vacancies on the Trustee Committee
for the Future of Robinson Forest due to Governor Breathitt's resignation
from the Committee and the expiration of Mr. Homer Ramsey's term of office
as a member of the Board of Trustees.   He appointed Mr. Brereton Jones and
Mrs. Betty Pace Clark to serve on this Committee along with Mr. Albert G.
Clay, Professor Constance P. Wilson and Chairman A. Stevens Miles.

    D.   Meeting Dates Established

    Mr. Sturgill called attention to the schedule of meetings of the Board
of Trustees and the Executive Committee as established for fiscal year
1982-83  (see copy at the end of the Minutes) and requested the members to
mark their calendars accordingly.




 








-2-



   E.   President's Report to the Trustees (PR 1)

   President Singletary reviewed several items in his monthly report to
the Trustees, calling particular attention to the four recipients of the
1982 University of Kentucky Research Foundation Faculty Research Awards.
He noted that three of the four professors were present and indicated his
pleasure in introducing Professor Lee P. Sigelman, Department of Political
Science; Professor Kevin S. Kiernan, Department of English; and Professor
Kenneth V. Yeargan, Department of Entomology. The introduction was
followed by a round of applause. One of the recipients, Professor Norman
L. Taylor, Department of Agronomy, was unable to be present.

   F.   Recommendations of the President (PR 2)

   Although most of the items in PR 2 were routine in nature, President
Singletary did call attention to the appointment of Richard C. Domek as
Dean of the College of Fine Arts who was present and introduced; the
appointment of Joseph W. Leonard as Chairman of the Department of Mining
Engineering; and the appointment of William J. Hennessey as Director of the
University Art Museum. President Singletary commented on the superb job,
by former Director Priscilla Colt, in organizing the Museum and added that
the "exhibit of the Armand Hammer Collection is a hard act for anyone to
follow. "

    With President Singletary so recommending, on motion by Mr. McBrayez,
seconded by Professor Conley and passed, PR 2 was approved. (See PR 2 at
the end of the Minutes.)

    G.   An    tm:   o  Acdmi Ou         an

    President Singletary indicated his pleasure in announcing the
appointment of William B. Lacy, Associate Professor in the Department of
Sociology, College of Arts and Sciences, as the Academic Ombudsman for
1982-83.  Professor Lacy, who was present, was asked to stand and be
recognized.

    H.   Guests Recognized

    President Singletary recognized the presence of two former faculty
members of the Board of Trustees, Professors Paul Oberst and Paul Sears,
and hle also introduced Professor James Kemp, Chairman of the University
Senate Council.

    I.   Supplemental Recommendations of the President (PR 3A)

    President Singletary said he was pleased to recommend the following
administrative appointments as listed in PR 3A: James Wells, Chairman of
the Department of Computer Science; Robert G. Lawson as Dean of the College
of Law; and Edgar Sagan as Acting Dean of the College of Education.
Professors Lawson and Sagan were present and introduced. On motion by
Governor Breathitt, seconded by Mr. Miles and passed unanimously, the
supplemental recommendations in PR 3A were approved. (See PR 3A at the end
of the Minutes.)




 












    J.   Proposed Amendments to the Governing Regulations (PR 3B)

    With President Singletary so recommending, Mr. Brockman moved that the
proposed amendment to the Governing Regulations which would change the name
of the Student Association to Student Government Association be received
for consideration and placed on the agenda for action at the next full
meeting of the Board of Trustees. His motion was seconded by Mrs.
Hermansdorfer and passed without dissent. (See PR 3B at the end of the
Minutes.)

    K.   1981-82 Budget Revisions (PR 4)

    The proposed changes in the 1981-82 budget being of a routine nature,
President Singletary recommended approval. On motion by Mr. Black,
seconded by Mr. Farmer and passed, the budget revisions in PR 4 were
approved. (See PR 4 at the end of the Minutes.)

    L.   Candidates for Degrees--University System (PR 5) and Candidates
for Degrees--Community College System (PR 6)

    President Singletary recommended that PR's 5 and 6, regarding
candidates for degrees, be considered together. On motion by Mr. Brockman,
seconded by Mr. Larry Jones and passed, the recommendations for degree
candidates in the University System and the Community College System as
presented in PR 5 and PR 6 were approved unanimously. (See PR's 5 and 6 at
the end of the Minutes.)

    M.   Proposed Amendments to the Governing Regulations (PR 7)

    President Singletary recommended that the proposed amendments to the
Governing Regulations which were received and tabled at the April 6, 1982
meeting of the Board of Trustees be removed from the table and approved.
He added that the Governing Regulations of the University of Kentucky
currently authorize academic assignments on academic year (nine-month),
ten-month, and twelve-month bases. An additional option of academic
assignments on an eleven-month basis is needed urgently in at least one
college to accommodate academic programs more effectively and to provide a
means to deal with critical fiscal problems.

    Professor Wagner moved, and Professor Wilson seconded, that PR 7 be
tabled for consideration at some future meeting of the Board of Trustees.
Professor Wagner, speaking on behalf of Professor Wilson, stated their
disagreement with the rationale presented and urged postponement of any
action approving the proposed amendments to the Governing Regulations. A
vote was called for. Professors Wagner and Wilson voted that PR 7 not be
removed from the table; Professor Wagner's motion did not carry.

    In recommending approval of the proposed amendments to the Governing
Regulations, President Singletary stressed that the eleven-month basis
would be voluntary for faculty on current appointment and added that a
statement by these faculty members that they choose not to participate
would be sufficient. On motion by Mrs. Clark, seconded by Mr. Kessinger
and passed, with two dissenting votes being cast by Professor Wagner and
Professor Wilson, PR 7 was approved. (See PR 7 at the end of the Minutes.)




 







- 4-



   N.   Report on Gifts and/or Grants  (PR 8)

   President Singletary reported that gifts and grants for the first
quarter of 1982 totalled $2,560,792.07, a significant increase over the
$919,516.69 received for the same period the previous year. He then
recommended that the report on gifts and/or grants covering the period from
January 1, 1982 to March 31, 1982 be accepted and made a matter of record.
Without objection, it was so ordered (See PR 8 at the end of the Minutes.)

    0.   Student Services Program (PR 9)

    At President Singletary's suggestion, Vice President Clapp commented
briefly on the establishment and purpose, administration, and criteria for
qualifying entity in connection with the establishment of a "Student
Services Program." Mr. Brockman voiced his strong endorsement of the
program and added that while it would provide jobs it would at the same
time serve as a practical business education for students. Mr. McCowan
commended Mr. Brockman and the other participating students for their
efforts in initiating a "Student Services Program."

    On motion by Mr. Brockman, seconded by Mr. McCowan and passed without
dissent, the Board approved the policy statement establishing a "Student
Services Program." (See PR 9 at the end of the Minutes.).

    P.   Reorganization of the Departments in the College of Business and
Economics from Three to Five (PR 10)

    President Singletary recommended that the departments in the College of
Business and Economics be reorganized from three (Accounting, Economics,
and Business Administration) to five (Accounting, Economics, Marketing,
Finance, and Management). He explained that the reorganization will
conform more with organizational structures in major Colleges of Business
and Economics. He added that this change has been recommended by the
accreditation team from the American Assembly of Collegiate Schools of
Business and the University Senate Council.

    On motion by Mr. Geary, seconded by Mr. Miles and passed unanimously,
the Board approved the reorganization of the departments in the College of
Business and Economics from three to five. (See PR 10 at the end of the
Minutes.)

    Q.   Interim Financial Report (FCR 1)

    Mr. Clay, Chairman of the Finance Committee, reported that the
Committee had met on the morning of May 4 and considered five items to be
presented for action, the first of which was the Interim Financial Report
for the period ending March 31, 1982. The Committee found the University
to be "on target" and Mr. Clay moved acceptance of the report. His motion,
seconded by Mr. Black, passed and the report was accepted. (See FCR 1 at
the end of the Minutes.)




 







-5-



   R.  Room and Board Rates 1982-83 School Year (FCR 2)

   Mr. Clay called on Vice President Blanton who explained through a
series of charts the current and proposed room and board rates and the
amount of increase for each plan. He told the Trustees that the present
rates are not sufficient to meet the higher operating costs and financial
demands of the Housing and Dining System, and added that the proposed
adjustments result primarily from increased labor, food and utility costs.
These rates cover debt service, all operating costs and funds for
replacement of furniture and equipment. Vice President Blanton expressed
regret of the necessity to present a recommendation to increase the room
and board rates; however, he pointed out that the Housing and Dining System
receives no state funds and that it is entirely self-supporting.

    Mr. Brockman, speaking on behalf of the Student Association, said he
concurs with the proposed adjustment in room and board rates which he feels
is a fair and equitable proposal.

    Mr. Clay said the Finance Committee, along with the Board of Trustees,
wished to compliment Vice President Blanton and his staff for the efficient
manner in which they operate the Housing and Dining System at the
University of Kentucky. He then moved that the adjusted room and board
rates as recommended in FCR 2 be approved. Mr. Clay's motion was seconded
by Mr. Brockman and passed without dissent. (See FCR 2 at the end of the
Minutes.)

    S.   Grant of Sewer Easement to Lexington-Fayette County Government
(FCR 3)

    On motion by Mr. Clay, seconded by Mr. Kessinger and carried, the Vice
President for Business Affairs and Treasurer was authorized and directed to
execute and deliver, on behalf of the Board, a sanitary sewer easement to
the Lexington-Fayette Urban County Government across property of the
University of Kentucky situated east of Nicholasville Road to service the
site of the Lexington Senior Citizens Center on Nicholasville Road. (See
FCR 3 at the end of the Minutes.)

    T.   Resolution Approving the Report of the Director, Auxiliary
Services, University of Kentucky, Relating to the Physical Inspection of
the Housing and Dining Buildings and Appurtenant Facilities of the
   UiesitX's Housing and Dining System (FCR '4)

   The members of the Board were reminded that on April 6, 1982, the Board
of Trustees authorized the issuance of $4,200,000 University of Kentucky
Housing and Dining System Revenue Bond Anticipation Notes, Series L, dated
June 1, 1982 for the purpose of repayment of the principal in the amount of
$4,200,000 of similar notes issued under date of March 10, 1981 and
becoming due on June 1, 1982. The Series L 1981 notes were issued for the
purpose of paying the cost of an addition to the University's Student
Center.



    The Board will in this meeting award the Series L 1982 notes to the
bidder submitting the bid with the lowest interest cost.




 








                                    -6-



    One of the conditions set forth in the Board's June 1, 1965 Trust
Indenture with Farmers Bank and Capital Trust Company, Frankfort, Kentucky
as trustee creating and establishing the issue of "Housing and Dining
System Revenue Bonds" is that each Series of bonds may rank on a basis of
parity as to security and source of payment with all previously issued
bonds only if there is a written report made by a proper member of the
University's staff approved by the President and submitted to and approved
by the Board showing that there has been a physical inspection of all of
the facilities of the 3ystem and that they are found to be in a good and
tenantable state of repair, ordinary wear and tear excepted. Such a
certificate was made and approved by the Board prior to each of the
previous bond and note issues and it is now appropriate and necessary that
the same step be updated for the Series L 1982 notes.

    Mr. Albert Clay tendered to the Board such a certificate made under
date of May 4, 1982, signed by the Director, Auxiliary Services, and
bearing the written endorsement of approval of the President. He requested
that the same be approved by the Board.

    Mr. Clay moved that the tendered certificate of the Director. Auxiliary
Services, be approved and his motion was seconded by Professor Opal Conley.
After discussion, the Chairman put the question and upon call of the roll,
the motion was approved by unanimous vote of all members present. (See FCR
4 at the end of the Minutes.)

    U.   Adoption of Resolution Approving the Sale and Issuance of Series L
Housing and Dining System Revenue Bond Anticipation Notes (FCR 5)

    Thereupon a motion was made by Mr. Clay and seconded by Professor
Conley that the following Resolution, which was read in full to the Board
of Trustees be passed and adopted; said Resolution was entitled as follows:

     A RESOLUTION OF THE BOARD OF TRUSTEES OF THE UNIVERSITY OF
     KENTUCKY ACCEPTING THE SUCCESSFUL BID FOR THE PURCHASE OF
     $4,200,000 OF UNIVERSITY OF KENTUCKY HOUSING AND DINING SYSTEM
     REVENUE BOND ANTICIPATION NOTES, SERIES L.

               WHEREAS, the Board of Trustees of the University of
     Kentucky (the "Board") by Resolution passed and adopted on April
     6, 1982, authorized First Kentucky Securities Corporation, Fiscal
     Agent for the Board, to solicit proposals for the purchase of the
     Board's $4,200,000 principal amount of "University of Kentucky
     Housing and Dining System Revenue Bond Anticipation Notes, Series
     L", dated June 1, 1982 (the "Notes"), and

               WHEREAS, in accordance with the terms of said
     Resolution the Fiscal Agent has prepared an "Official Statement"
     containing a form of "Invitation to Submit Proposals for
     Purchase" in regard to said Notes and has distributed same to
     prospective purchasers of said Notes in accordance with law, and




 








-7-



          WHEREAS, under the terms of the "Invitation to Submit
Proposals for Purchase"? it is provided that proposals would be
considered by the Board if submitted to the University's Vice
President for Business Affairs on or before 11:00 A.M., on May 4,
1982, and

          WHEREAS, the hour of 2:00 P.M. has arrived and
proposals for the purchase of the Notes having been received by
the Vice President for Business Affairs as follows:



Amount
Bid



Bidder



Coupoin
  Rate



  Net
Interest
   Cost



Hilliard - Lyons, Inc.
Johnston, Brown, Burnett & Knight
First Kentucky Securities Corp.


Seasongood & Assoc.
Cincinnati, Ohio

Citibank
New York, New York

Merrill Lynch
Cincinnati, Ohio



Union Planters National
Bank of Memphis

Bache, Halsey Stuart, Shields
Louisville

First National Bank of Chicago
Chicago, Illinois



$14, 158,672



14, 163, 460


4,160, 100


44,158,000



4,163,1460


4,158,1420


4,158,000



              WHEREAS, the Board has considered the matter of
which bid is the most advantageous to the Board;

               NOW, THEREFORE THE BOARD OF TRUSTEES OF THE
UNIVERSITY OF KENTUCKY DOES RESOLVE AS FOLLOWS:

          1.   That the following bid for the sale of $4,200,000
               of University of Kentucky Housing and Dining System
               Revenue Bond Anticipation Notes, Series L, dated
               June 1, 1982, be accepted and confirmed:



9.10%



9.50


9.50


9.35



10.00


9.75


9.70



9.3146%



9.7175


9.7375


9.60



10.2175


9.9975


9.95




 







-8-



                                                           NET
                        PURCHASE         COUPON          INTEREST
PURCHASER                 PRICE            RATE              RATE

Hilliard-Lyons, Inc.
Johnston, Brown, Burnett
  & Knight                  $4,158,672          9.10%       9.346%
First Kentucky Securities
  Corp.

         2.  That said bid identified in Section 1 hereof has
              been determined to be the highest and best to the
              Board and the University for said Notes, the
              interest rate on said Notes is hereby fixed at the
              rate set out in said successful bid.

         3.  That said Notes as identified in the Resolution
              passed and adopted by the Board on April 6, 1982,
              shall be delivered by the officers of the Board in
              accordance with the terms of said Resolution and
              the 1982 Series L Supplemental Trust Indenture as
              soon as ready.

         4.  That the confirmation of this bid subjects the
              Board to no liability if it is unable to obtain the
              final approving Legal Opinion of Henry M. Reed III,
              Bond Counsel, Louisville, Kentucky, or if said
              Notes or the interest thereon should be subject to
              ad valorem or income taxation by the Federal
              Government or Kentucky prior to the delivery of
              said Notes, but the purchasers shall not be
              required to take up said Notes without the final
              approving Legal Opinion of Bond Counsel
              accompanying said Notes or if said Notes or the
              interest thereon should become so subject to
              taxation.

         5.   That this Resolution shall be in full force and
              effect from and after its adoption.

    Upon a vote being taken on the motion, the result was as follows:

         Yeas: Mr. William R. Black, Governor Edward T.
              Breathitt, Mr. Britt Brockman, Mrs. Betty Pace
              Clark, Mr. Albert G. Clay, Professor Opal Skaggs
              Conley, Mr. Tracy Farmer, Mr. Ronald G. Geary, Mrs.
              Edythe Jones Hayes, Mrs. Sally Hermansdorfer, Mr.
              Brereton C. Jones, Mr. R. Larry Jones, Mr. Thomas
              B. Kessinger, Mr. W. Terry McBrayer, Mr. Robert T.
              McCowan, Mr. A. Stevens Miles, Mr. William B.
              Sturgill, Professor William F. Wagner, and
              Professor Constance P. Wilson.




 







-9-



         Nays: None

    Thereupon the Chairman declared that the motion had carried
and that the Resolution had been passed and adopted and directed
that the same be recorded in the Minutes of the Board. (See FCR
5 at the end of the Minutes.)

    V.   Admissions Policy Update

    President Singletary indicated that at the next meeting of
the Board he expects to present an admissions policy statement
for adoption and submission to the Council on Higher Education.
At the same time, the policy statement will be referred to the
appropriate internal constituencies of the University for action
on specific admissions criteria.

    At the request of President Singletary, Art Gallaher, Vice
President for Academic Affairs, briefed the Trustees on the
status of the admissions policy statement. He reviewed
background information including the request by the Council that
the University prepare a policy, the charge by the Board of
Trustees to prepare such a plan, and the appointment of a
committee by President Singletary to prepare a policy statement
for submission to the Board. Dr. Gallaher pointed out that the
committee has been examining the major issues involved in
shifting the main campus enrollment away from what has been
traditionally an open admissions policy while at the same time
preserving the University's statewide mission as the principal
institution for comprehensive research and service programs. He
stated that one premise which has governed these discussions has
been that the colleges in the Community College System would
continue as open admissions institutions. Dr. Gallaher also
stated some of the concerns of the committee and added that the
committee would make recommendations to President Singletary on
each of these. In addition, the committee will also recommend on
matters such as timing for implementation and on development of
an information program to accompany any new policy. Dr. Gallaher
emphasized that modifications in the current admissions policy
will require Board approval prior to submission to the Council on
Higher Education, and he also indicated that the matter of
specific admissions criteria and their weighting will require
action by the University Senate.

    The Chairman thanked Vice President Gallaher for his report.

    W.   Status Report on Medical Practice Plan

    President Singletary explained that the present medical
practice plan (Geographic Full-Time Medical Service Plan) which
the Board of Trustees approved at its meeting in June, 1978 is
being challenged. He said that the legal validity of the plan is
being questioned and added that there is a request for an opinion
before the Attorney General as to whether of not Kentucky Medical
Services Foundation, Inc. is a public corporation or is a




 






- 1 0 -



creation of the University cf Kentucky. He stressed the
importance of the Trustees' understanding of the plan now in
operation and pointed out that they need to know its strengths
and weaknesses. He indicated they may wish to alter the plan,
but emphasized that tiey must realize the consequences should
they decide to do so.

    President Singletary then introduced Mr. John Kasonic who was
present to explain the plan. Mr.Kasonic's firm, Executive
Consulting Group, Inc. of Bellevue, Washington, was employed in a
consulting capacity during the plan's development. Mr. Kasonic
explained the meaning of "Geographic Full-Time Medical Service
Plan" and the need for such a plan. He pointed to the growth of
medical education as the most significant factor influencing the
emergence of the medical service plan. In 1965, there were 87
medical schools; in 1981, 126. Enrollments nearly doubled during
that period, and full-time clinical faculty increased from 11,000
to 37,000. In 1965, 20 percent of the medical schools had some
type of medical practice plan; in 1981, 90 percent.

    Mr. Kasonic pointed out another important factor supporting a
medical practice plan: the shifting of the financial burden in
university medical centers. He explained that because of the
loss of federal capitation, the dollar reduction in grants and
contracts, and the decrease in fellowships and training grants
for graduate-level trainees, an attempt has been made to shift
costs financed by these revenues to other sources, specifically
to tuition and professional fees in medical schools. However, he
pointed out that tuition rates in public universities have not
increased at the rate that costs have been shifted so the
professional fees have ended up carrying the burden. Mr. Kasonic
then noted the desire to balance teaching, research, and patient
service, a mechanism to manage the time of the clinicians who are
involved in these three activities simultaneously, as the third
important need for a practice plan. President Singletary
interrupted Mr. Kasonic at this point to emphasize the importance
of the institution's ability to exercise some control over the
various activities of the clinical faculty.

     In his report, Mr. Kasonic noted some of the difficulties
affecting the medical service plan. He explained three basic
medical service plan options and compared the advantages and
disadvantages of each. He presented some facts obtained through
a recent study by the Association of American Medical Colleges
which indicate that in 1969 medical service plans made up $90
million, or about 6 percent, of all medical school budgets in the
United States and in 1980 that amount had increased to $880
million, about 15 percent of the operating budgets. In 1980,
$10.7 million (24 percent) of the budget for the University of
Kentucky Medical School came from professional fees, and in 1981,
$14.5 million. He reviewed the modest state support for the
University of Kentucky Medical School and stressed the school's
strong dependence on professional fees.




 






- 1 1-



    Mr. Kasonic commented briefly on the 1976 Physicians'
Services Plan and Dointed out some of the problems:   faculty
discontent, unfilled vacancies, faculty retention difficulties,
and tenure liability. He explained the approach to the revision
of the Physicians' Services Plan which resulted in the Geographic
Full-Time Medical Service Plan which ultimately was approved by
the Board of Trustees.

    Mr. Kasonic explained that the Kentucky Medical Services
Foundation, Inc., is a private, tax exempt entity formed by
physicians in order to bill and collect professional fees. He
said they operate under an excellent agreement with the
University, and added that similar agreements are used by nearly
half of the public medical schools in the country.

    Mr. Kasonic concluded his remarks by stating that a
preliminary evaluation of the Geographic Full-Time Medical
Service Plan reflects its competitive nature and that the initial
objectives have been accomplished.

    President Singletary asked if there were any questions. He
repeated that the background information has been provided in
order to help prepare the Trustees for any future consideration
of the plan. He added that Mr. Kasonic has been very helpful and
will remain available as a consultant.

    The Chairman thanked Mr. Kasonic for his presentation.

    X.   Report on Tobacco and Health Research Institute

    President Singletary reviewed briefly the basic posture taken
by the University administration last fall concerning the Tobacco
and Health Research Institute, and emphasized the decision to
continue rather than abandon and to restructure rather than
abolish the Institute. Now that the Legislative session has
ended and the immediate future of the Institute is known, he said
the University is prepared to implement certain portions of that
plan.

    President Singletary told the Board that he has approved a
series of recommendations by Dr. Wimberly Royster, the
administrator who is responsible for overseeing the Institute's
work. Dr. Royster's recommendations include the appointment of a
Scientific Advisory Committee whose responsibilities will be to
provide an on-going review of the Tobacco and Health program; the
appointment of a search committee for the Director of the
Institute and the recruitment through University channels for the
Associate Director for Administration; and the appointment of an
outside research management group to review the Institute's
organization and structure.

    In addition, President Singletary announced that he plans to
appoint within the next academic year a citizens' committee to
review activities at the Institute. Tne committee shall have "no




 






-12-



vested direct interest" in the Institute and will include some
members of the Legislature, distinguished citizens, a member of
tne Board of Trustees, and possibly a member of the Tobacco
Board. He said he would ask the committee to look carefully at
what the University is proposing to do to guarantee credibility
of the program; to acquaint themselves with the internal
administration of the Institute; and to take a look at the legal
implications, a dual structure set up by law. He added that he
would hope the committee will make its recommendations prior to
the next meeting of the Legislature.

    President Singletary told the Trustees that it is possible
the citizens' committee could make any one of a number of
recommendations, including the abolition of the Institute. He
said the University does not wish, nor does not propose, to
continue the Institute unless the Institute's credibility can be
established and he stressed that the University will make every
effort to see that credibility of the Institute is achieved.

    President Singletary expressed his belief that with the steps
being taken the Tobacco and Health Research Institute will become
a center of excellence.

    Y.   Appointment of Board Committee

    President Singletary told the Trustees that for the past
several years he has felt the need to suggest a basic change in
the central administration of the University of Kentucky. This
matter has been discussed with his administrative staff and there
is general agreement that the institution has outgrown its
historic organization. With the growth in size and complexity of
the University, he feels it is becoming less and less possible
for one person to preside over all the colleges on the main
campus, the Medical Center, and the Community College System.

    Also, President Singletary noted that the Southern
Association Self-Study Visitation Committee suggested "...that
the governing board and the administration review the
administrative structure of the University of Kentucky,
particularly with reference to the duties and responsibilities of
the Chief Executive Officer (President). The growth of the
University and the increasing complexities of the administrative
process brought on by both external and internal forces point to
a need for modification of the existing structure. Special
attention should be given to the delegation of authority to the
three major operating divisions of the University of Kentucky."
This is one of approximately 90 suggestions