xt7c862b8z04 https://exploreuk.uky.edu/dips/xt7c862b8z04/data/mets.xml Lexington, Kentucky University of Kentucky 2002032 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, 2002-03-apr2. text Minutes of the University of Kentucky Board of Trustees, 2002-03-apr2. 2002 2011 true xt7c862b8z04 section xt7c862b8z04 







                                 MINUTES

                       Meeting of the Board of Trustees
                           University of Kentucky
                                 1:00 P.M.
                                 April 2, 2002
                      18th Floor Patterson Office Tower

Minutes

Accompanying Materials:

President's Report and Action Items

PR 2  Personnel Actions
PR 3  University Research Professorships

Finance Committee Report

FCR 1 Approval of Lease
FCR 2 Patent Assignment Report
FCR 3 Merging Jacqueline A. Noonan Professorships
FCR 4  Endowment Name Change in the College of Medicine
FCR 5 John C. Harris Gift
FCR 6  Creed F. Smith, Jr. Gift and Pledge
FCR 7  William T. Young Pledge
FCR 8 Arthur E. Walker, Jr. Graduate Fellowship in Civil Engineering Gift and Pledge
FCR 9  Transfer of Blue-White Fund Quaisi-Endowment to the Wildcat Foundation




 











      Minutes of the Meeting of the Board of Trustees of the University of Kentucky,
Tuesday, April 2, 2002.

      The Board of Trustees of the University of Kentucky met at 1:00 p.m. (Lexington
time) on Tuesday, April 2, 2002 in the Board Room on the 18th Floor of Patterson Office
Tower.

      A.    Meeting Opened

      Mr. Billy Joe Miles, Chairperson, called the meeting to order at 1:05 p.m., and
Ms. Elaine Wilson gave the invocation.

      B.    Roll Call

      The following members of the Board of Trustees answered the call of the roll:
Ms. Marianne Smith Edge, Mr. John "Jack" Guthrie, Dr. Loys Mather, Ms. Pamela May,
Dr. Robert P. Meriwether, Mr. Billy Joe Miles (Chairman), Dr. Elissa Plattner, Dr. Claire
Pomeroy, Mr. Tim Robinson, Mr. Frank Shoop, Ms. Alice Sparks, Dr. Grady Stumbo,
Ms. JoEtta Wickliffe, Mr. Russ Williams, Ms. Elaine Wilson, and Ms. Barbara Young.
Absent from the meeting were Mr. Paul W. Chellgren, Mr. Steven S. Reed, Ms. Marian
Sims, and Mr. Billy Wilcoxson. The University administration was represented by
President Lee T. Todd, Jr.; Acting Senior Vice President Jack C. Blanton; Senior Vice
President and Chancellor of the Medical Center James W. Holsinger; Jr., Acting Provost
Michael Nietzel; Acting Vice President for Research James Boling, 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 1:08 p.m.

      C.    Consent Agenda

      Mr. Miles entertained a motion to approve the following items on the Consent
Agenda:
             Approval of Minutes
             PR 2 Personnel Actions

      On motion made by Ms. Edge and seconded by Ms. Wilson, the Consent Agenda
was approved. (See PR 2 at the end of the Minutes.)




 




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


      President Todd called attention to the following items in PR 1 and asked that the
Board read the entire document to get the full essence:

      A team of University of Kentucky (UK) College of Medicine researchers has
      begun a clinical trial of a new investigational treatment for Parkinson' s disease
      that may directly influence the degenerative disease process by regenerating
      damaged brain cells. Greg Gerhardt is one of UK' s "Bucks for Brains" professors
      and one of the basic scientists who developed these techniques. This research is
      funded by a $5 million grant from the National Institute of Neurological Disorders
      and Stroke, a division of the National Institutes of Health.

      UK has two additional Truman scholars this year. Conley D. Chaney and Julie
      Murray have been awarded prestigious Truman Scholarships. President Todd and
      Acting Provost Nietzel recently walked in their classroom and surprised them
      with the news.

      Acting Provost Nietzel , the associate provosts and deans agreed to forego
      1 percent of their one time merit increase to support a new scholarship fund
      targeting Kentucky' s top high school students. The administrators' contribution,
      totaling $20,000, will go toward scholarships for Governor' s Scholars and
      students in the Governor' s School for the Arts. President Todd expressed
      appreciation to them and said it shows some great leadership. He reported that
      there were 220 applicants from the Governor' s Scholars Program last year, and
      there are 550 this year.

      There was a 98% show rate at the first merit weekend and a 99% show rate the
      second merit weekend. Merit Weekends are for the very top students to come to
      campus and see if they want to attend UK. These rates show that they are taking
      UK very seriously. The volume is up 43% over last year. President Todd
      believes the staff can get the enrollment up and filled with high quality students.

      Three UK College of Medicine departments are ranked among the top 10 public
      medical school programs receiving funding from the National Institutes of Health
      in 2001. President Todd said this is the way an institution gets to "Top 20" status:
      step by step and by having this program get in the top ten. He said he is very
      proud of these people.

      Country music star and Eastern Kentucky native Loretta Lynn was presented with
      an honorary Doctor of Arts degree in absentia in early March. President Todd
      noted that Ms. Lynn made it to the parking lot but was too ill to participate in the
      ceremony. He thanked Dr. Holsinger for representing him and the Board
      members who attended the event.




 




- 3 -



      The UK Cheerleading Squad, which won its eighth consecutive national
      championship in January, met President Bush at the White House on March 12th
      during a Champions Day ceremony. Governor Paul Patton had them in Frankfort
      recently, and President and Mrs. Todd have them scheduled for dinner at Maxwell
      Place.

      The faculty at the UK College of Engineering' s Program in Paducah has been
      actively engaged in support of retaining the uranium enrichment plant in Western
      Kentucky. Three of them are MIT graduates, one woman who came out of
      International Paper Research Labs, and an extremely high caliber group of
      teachers and researchers. They are exploring some of the uses of depleted
      uranium as battery materials. President Todd reported that there are a billion
      pounds of that material in the Paducah site. The faculty is working closely with
      the EPA and others to determine if research can be done to neutralize the depleted
      uranium. He said the Paducah faculty has done an outstanding job.

      A UK Chandler Medical Center gynecologic oncologist, John R. van Nagell, has
      been ranked among the best in the nation in the latest edition of "America' s Top
      Doctors." President Todd said that Dr. van Nagell does a tremendous job,
      particularly in the Ovarian Cancer Screening Program. Dr. Todd said that he
      receives letters from women around the state who are thankful for that Screening
      Program.

      President Todd reported that UK is up 18% over last year in grants received and
      could break $200 million this year in grants received, which would be a real
      hallmark for the institution. This is an indication of the good work going on at the
      University.

      President Todd asked the Board to read the other items in the report.

      President Todd reported that the Future' s Committee final report is on his desk. If
it were not for a few issues on stem cell research and within the Athletics Department, he
would have read it thoroughly by now. He said he had read the early draft, and there
were some changes in the final draft. The Committee had many meetings and did take
seriously the input and concerns. He said that action has not been taken, but he has
received quite a few letters about it. He asked the Board members to suggest any
comments. Recommendations will be considered, and the Committee will be dealing
with implementation or modification of some of the recommendations. He thanked the
Committee for their hard work and the many people who commented on the report. He
noted that there were a lot of comments.

      The Top 20 Committee' s report is now in its draft form. The Committee has had
their hearings and meetings around the campus. Their report will be in final form in the
near future.




 




- 4 -



      President Todd reported that the Vice President for Research search is moving
along. He met with Professor Kim Anderson, Chair of the Search Committee, recently
and learned that there are quite a few candidates. The Search Committee is still working
hard to make sure there is a very diverse candidate pool, and this may take a little longer.

      As the search and interview process begins, there may not be enough time to fill
the position by the beginning of the next academic year. He said that he has requested
that Dr. Boling remain in the position a little longer if necessary, and Dr. Boling has
agreed to do this.

      President Todd reported that Professor Anderson is pleased with the list of
candidates that she has received. The Committee is working hard to outreach more and
to try to bring in some candidates who may not have applied, who do not just apply to
advertisements, and who are people who may not be looking for ajob but ones that the
University would be interested in having apply.

      E.    Update on the Visit of the Southern Association of Colleges and Schools

      President Todd said that he had asked John Piecoro, who has headed the
University' s Southern Association of Colleges and Schools (SACS) review, along with
the able assistance of Board member Alice Sparks, to give an update on the upcoming
visit of SACS. He said there is a role for the Board to play in this visit. He thanked Dr.
Piecoro for all the work he has done and asked him to give his report.

      Dr. Piecoro informed the Board that a copy of the addendum to the Self-Study
Report had been placed in front of each members seat. The addendum provides an
update on what has been happening at the University since President Todd took office
and also how the University has dealt with an number of recommendations in doing the
Self-Study.

      Twenty-six peer reviewers will visit the University April 15th to 1 8th. These
reviewers will largely be from the southern United States. Dr. Roger Sayers is the chair
of the committee.

      The peer review team will be arriving on April 15th. There will be a reception and
dinner in their honor that evening. The Board has received an invitation, and many have
already indicated they will be able to make that event.

      The opening session will be held on Tuesday, April 16th at 8:30 a.m. in the
Boardroom on the 18th floor of Patterson Office Tower. President Todd will give an
update on the University as well as his vision for the University. The Deans and the
Steering Committee for the Self-Study will be there. Board members are invited, and the
review team may have questions for them.

      The peer review team will be conducting interviews April 16th and 17th, and many
members of the Board may be involved in an interview.




 




- 5 -



      The exit report will be April 18th at 9:00 a.m. The chair of the Visiting
Committee will give the preliminary report. This is an oral report, and there is no
discussion. Dr. Piecoro said it would be very good if the Board could be there.

      Ms. Sparks pointed out the hard work that went into the Self-Study by the
Committee. She said that setting up the interviews is even harder and encouraged the
Board to try to accommodate them. She also asked the Board to make every effort to
attend the dinner. Their attendance not only confirms faith in what the Committee did
but also supports President Todd.

      Mr. Guthrie asked that the presentation on April 18th be audio taped and copies be
sent to the Board members who cannot attend. He said he would like to hear the report,
even though he might not be able to be here, and he thought the tapes would be very
helpful.

      President Todd said that could be arranged.

      Mr. Guthrie then suggested that President Todd' s presentation on Tuesday, April
16th, be incorporated in some way with the April 30th Board meeting, depending on how
many Board members may or may not be able to attend the SACS meetings.

      President Todd noted that the addendum to the Self-Study report was additional
work for the Committee. Because of the change in administration, they wanted to
summarize those changes so it is a nice historical document.

      He thanked Dr. Holsinger and his "Fix-It" Committee. He mentioned that there
are several issues in the report that have been fixed since the report was submitted to
SACS. Hopefully, the peer review team will realize that this shows some initiative that
has been taken. He said, in his opinion, it is the smart thing to do. If you have a problem,
you go ahead and fix it. Do not wait six months for an outsider to read it and tell you that
there is a problem. He said he appreciated the work of the Committee as well as their
work summarized in the addendum.

      F.    Athletics Update

      President Todd reported that he is on the Southeastern Conference (SEC) search
committee for a new Commissioner for the SEC. He was not able to attend the first two
meetings, but the firm the SEC is using is coming to his office next week to give him an
update on the process. That firm has submitted their proposal and recommended
themselves as a search firm to assist with the University of Kentucky search for an
Athletics Director, along with 10 or 15 others that have been received. He noted that he
gets a lot of mail on this issue.




 




                                        - 6 -


       He reported that he has not made any decision on a search firm. He will begin the
process by putting out a RFP so that it can be advertised. Any search firm that wants to
apply will know about it. If they have not already sent information, they can do that.

       He said that he talked to four presidents last week at Virginia, Old Miss,
Vanderbilt and Louisville just to get their input on how they went about their search
process. Three presidents used search firms, and one did not. He said he would be
calling a few others just to get their opinions.

       He said that he would name a small committee just to advise him. It will not be a
search committee, just a group of individuals that he wants to sit with him. He wants to
bring in two or three search firms and let them present their credentials. He said he
would like to have a few other people present to hear the presentations.

       He wants to meet with athletic personnel and coaches and have them come in and
speak to the group about what they would like to see that would make their jobs better
and make their success rate higher in athletics. When the candidates are brought in, he
would like to have a few more people listening to them.

       President Todd reported that he had planned to have this done before the Board
meeting; however, the legislative session has been consuming a fair amount of his time
lately. Naming the group to assist him will be the highest item on his agenda now.

       There has been a lot of speculation about the new Athletics Director, and he has
received a lot of applications and nominations. He said that he appreciates all of them
and to keep the cards and letters coming. It is high on his agenda to get this process
completed.

       He said he appreciated the job Mr. Mobley is doing as Acting Athletics Director.
He recognized Kathy DeBoer in the audience and commented that it is a challenging
time, but everyone is working together to reach a resolution.

       President Todd said he is in the process of benchmarking other institutions about
their Athletic Boards. The Ad Hoc Committee has input, and he will be receiving their
thoughts about the Athletic Board, too. He said that he would be calling a meeting of the
Athletic Board within the next few weeks.

       He announced that he had appointed a committee to look at athletic tickets. That
group will actually be helping him come up with an idea on how to structure a Ticket
Committee. He said he is committed to having a Ticket Committee and a Budget
Committee on the Athletic Board. The committee has begun looking at the ticket
inventory, looking at the tickets for cars program, looking at the distribution process, and
reviewing policies and procedures.

       President Todd reported that Mr. Mobley and Marc Mathews, who works for
Henry Clay Owen, are continuing to work with the athletic staff to better understand their




 




7 -



business operations. They are looking at budget practices and expenditures. They will
have some recommendations for structuring a Budget Committee on the Athletic Board
that will have that responsibility. He reiterated that athletics would have a high priority
with him as soon as he can turn his attention to it, and he intends to do that very soon.

      G.    University Research Professorships (PR 3)

      President Todd said that it was a pleasure to address PR 3. It is a
recommendation that the Board approve the naming of Professors Gary Ferland,
Department of Physics and Astronomy, Andrew Klapper, Department of Computer
Science, Thomas Leinbach, Department of Geography, and Timothy McClintock,
Department of Physiology, as University Research Professors for 2002-2003.

      The purpose of the University Research Professorships is to enhance and
encourage scholarly research productivity, provide an opportunity for concentrated
research effort for selected faculty members, recognize outstanding research achievement
by members of the faculty, emphasize the research function, and publicize research
accomplishments in order that the research function of the University is appropriately
recognized and understood.

      Professors Ferland, Klapper and McClintock were in attendance. They were
asked to stand and be recognized, following which they received a round of applause.
Professor Leinbach is in Asia and could not attend the meeting.

      On motion made by Mr. Williams, seconded by Mr. Shoop and carried, PR 3 was
approved. (See PR 3 at the end of the Minutes.)

      H.    Tim Robinson Congratulated

      President Todd congratulated Mr. Robinson on his re-election of President of the
Student Government Association. Mr. Robinson received a round of applause.

      Mr. Robinson said he has enjoyed working with everyone this past year. He looks
forward to working with everyone next year and being a part of all the great changes that
are happening on campus.

      I.    Approval of Lease (FCR 1)

      Dr. Stumbo, Vice Chair of the Finance Committee, said that he was filling in for
Mr. Chellgren, Chair of the Committee, who had to be out of town and could not attend
the meeting.

      He said that FCR 1 is a part of the town-gown relationship initiative of President
Todd. It involves the old Kentucky Utilities headquarters building. Basically, this
property leases for approximately $15-18 dollars a square foot. The University is getting




 




- 8 -



a deal at $5.00 a square foot, but even doing that, it may go above the threshold of
$200,000.

      Dr. Stumbo explained that for the University to enter into this lease, it has to have
legislative approval at this price. There has been some language inserted into the budget
bill; however, the budget may or may not get passed. President Todd cannot enter into
this lease until the Governor signs the budget document. It is a good deal for the
University in terms of the space; therefore, the Board is acting on this pending action in
Frankfort on the budget document. The budget document applies to the next two years
for the state, but in that budget document is language for this fiscal year for the
University to implement this. He said the Finance Committee recommends approval of
this lease, pending approval of the budget in Frankfort. He moved approval of FCR 1.
Ms. Wilson seconded the motion, and it passed. (See FCR 1 at the end of the Minutes.)

      Mr. Miles said that he and Mr. Reed had visited with the mayor and a lot of
people in downtown Lexington, and this is one of their priorities.

      President Todd said that everyone needed to thank LGE and KU for providing
this very reasonable space. He said that the mayor has also provided a good deal on
parking spaces in the Transportation Center across the street. It is a great move for the
University to get downtown.

      J.    Patent Assignment Report (FCR 2)

      Dr. Stumbo said that FCR 2 is a patent assignment report for 8 patent
assignments. He reported that the Finance Committee received a little more detailed
information from Dr. Boling, and Dr. Boling would be glad to answer any questions from
the Board. In addition to this report, the Board will begin receiving a biannual or
quarterly update of the number of patents applied, the number sought, the number
approved, and the income that the University is receiving from them. He recommended
approval of FCR 2. Dr. Pomeroy seconded the motion, and it carried. (See FCR 2 at the
end of the Minutes.)

      K.    Gift and Pledges (FCR 3-8)

      Dr. Stumbo said that FCR 3 through 8 are items quite familiar to the Board. He
called upon Mr. Mobley to address these items.

             FCR 3 - approve merging two Jacqueline A. Noonan Professorships in the
             College of Medicine's Department of Pediatrics. There were two funds
             established to honor Dr. Noonan, who was the University' s longtime chair
             of the Department of Pediatrics. Board action is required to combine these
             two funds into one professorship.

             FCR 4 - approve changing the name of the Sterling Drug Visiting
             Professorship to the Molecular and Biomedical Pharmacology Seminar




 




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             Fund. Sterling Drug Company gave the University money in 1983 to
             establish a professorship in Molecular and Biomedical Pharmacology.
             The Company was sold and has gone out of business; therefore, the name
             is being changed.

             FCR 5 - accept a gift of $50,000 from John C. Harris of Highland Park,
             Illinois, to create and endow the Center for Financial Services Research in
             the School of Management in the Carol Martin Gatton College of Business
             and Economics. Mr. Harris is a 1969 graduate of the College. This gift is
             eligible for matching funds from the state' s Research Challenge Trust
             Fund.

             FCR 6 - accept a gift of $5,000 and a pledge of $7,500 from Creed F.
             Smith, Jr. of Kingwood, Texas. Mr. Smith's gift and pledge will be
             matched by a gift of $37,000 from ExxonMobil Education Foundation.
             The gift and pledge are eligible for matching funds of $50,000 from the
             state' s Research Challenge Trust Fund. This is being given to honor Mr.
             Smith' s father, Creed Fulton Smith, by creating and endowing a
             fellowship fund in the Carol Martin Gatton College of Business and
             Economics.

             FCR 7 - accept a pledge of $500,000 from William T. Young of
             Lexington, Kentucky, to create and endow the William T. Young Library
             Endowed Chair to be held by the Director of University Libraries in the
             director' s academic discipline. This, again, is evidence of Mr. Young' s
             longstanding commitment to the University' s wonderful library.

             FCR 8 - accept a gift of $60,000 and a pledge of $240,000 from Arthur E.
             Walker, Jr., of Mount Sterling, Kentucky, to establish and endow the
             Arthur E. Walker, Jr. Graduate Fellowship in Civil Engineering in the
             College of Engineering. This is eligible for matching funds from the
             state' s Research Challenge Trust Fund. Mr. Walker is a longtime
             supporter of the University.

      On motion made by Dr. Stumbo, seconded by Ms. Edge and passed, FCR 3
through 8 were approved. (See FCR 3, 4, 5, 6, 7, and 8 at the end of the Minutes.)

      L.    Transfer of Blue-White Fund Quasi-Endowment to the Wildcat
             Foundation (FCR 9)

      Dr. Stumbo called upon President Todd to comment on FCR 9.

      President Todd said FCR 9 concerns a situation with the new Cliff Hagan
Baseball Stadium. Before presenting the proposal, he shared some background on the
Wildcat Foundation for those who are not aware of its history. He recognized Steve
Graves, President of the Wildcat Foundation, and reported that Mr. Graves had been




 




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meeting with University officials the past few weeks. He told the Board that it is
important for everyone to understand the background of the Foundation and some of the
other projects the Foundation has been involved in before addressing the baseball
stadium.

       The Wildcat Foundation was originally established in the late 1970' s to raise
money and build the Wildcat Lodge. The Foundation has consisted of a group of
individuals and hundreds of donors whose mission is to support special athletic projects
and the success of the UK athletic program. The Foundation, through its own
fundraising, has provided a number of improvements to the UK facilities.

       After the Lodge project was completed and paid for, the Foundation was idle for
several years. Their next project came in the late 1980' s with the construction of
basketball and athletic department offices in the north end of Memorial Coliseum and
other training facilities. Other projects through the 1990' s included projects in track,
golf, basketball and football. Another project came around 1999-2000 with the
renovation of the basketball and athletic department offices, the basketball weight and
training room and other improvements to the Coliseum. The most recent project is the
major renovation of UK' s baseball facilities at Hagan Stadium.

       President Todd noted that as they have reviewed the operations of the Athletics
Department, they have also looked at projects involving the Wildcat Foundation. He, Dr.
Blanton, and others have met with representatives of the Foundation, and they have been
completely cooperative and open in assisting with the review of their transactions with
the University. Based on that review, President Todd said that he feels that the
Foundation has been fully compliant with past procedures of the University and also with
any National Collegiate Athletic Association (NCAA) requirements.

       After providing background information on the Foundation and reviewing its
support over the years, President Todd said that the real issue that he wants to present is a
proposal regarding the baseball stadium.

       In August of 2001, UK signed an agreement with the Wildcat Foundation for
them to build a new baseball stadium and then give it as a gift to the University. This
project was estimated to cost $2.5 million dollars. This project was needed by the
University to help the baseball program compete in the Southeastern Conference.

       The stadium has been substantially completed and, although there are outstanding
pledges to the Foundation, the current fundraising opportunities do not appear likely to
produce sufficient funds for a timely payment of the construction costs of the project. In
addition, due to some unexpected infrastructure costs and design changes, the actual
construction costs for the project could increase by as much as $1 million to go up to $3.5
million. He explained that the contractors ran into some electrical and steam lines that
had to be relocated and were not estimated in the original $2.5 million dollar proposal.




 




11 -



      President Todd said he believes the best solution to this situation is for the Board
to authorize a grant of an amount not to exceed $3.5 million from the Blue-White Quasi-
Endowment of the University for the purpose of funding the balance of the construction
at the Cliff Hagan Baseball Stadium and authorize the Senior Vice President for
Administration to enter into an agreement with the Wildcat Foundation whereby the
funds withdrawn from the Blue-White fund would be transferred to the Foundation for
the express purpose of satisfying the balance of the reasonable and actual construction
costs of the new stadium. This grant will solve a timing issue related to the fundraising
of the construction costs for the stadium project that was caused by a number of issues.

      This agreement was signed in August of last year. The September 11th tragedy
followed, and not long after that, were the problems in the stock market. With the recent
publicity surrounding the Athletics Department that is now getting clarified, it has been
difficult to close on some of the donations that are outstanding with the Wildcat
Foundation in a timely fashion. That has created a timing issue. Pulling money out of
the Blue-White fund to pay for this construction at this point and time is not a practice
that either UK or the Wildcat Foundation prefers. There is a precedent for doing this,
where funds have been transferred from the Blue-White Quasi Endowment to complete
athletic projects and then replenish the fund. An example of this is the facilities
improvement project at Commonwealth Stadium. The fact is the University now has an
up-to-date, competitive baseball stadium in which to play and benefit its players and for
its competitiveness in the SEC. Construction is very near the end of its completion, and
the project just needs to be closed out.

      President Todd said that he believes the use of Blue-White funds is completely
appropriate because that endowment consists of funds that were donated for the express
intent of helping the Athletic Department be competitive, and they are from private
funds. There will be a focused effort by the Athletic Association, along with Mr. Graves
and the supporters of the Wildcat Foundation, to secure the outstanding pledges and to
reimburse the Blue-White fund. Mr. Graves and the Wildcat Foundation have agreed to
work with Kathy DeBoer and Mr. Mobley in seeking the reimbursement of those funds
from their contributors. Along with Steve Graves at the Wildcat Foundation, Brent Rice,
Steve Lockmueller and Nelson Radwan are the other members, and they have had
hundreds of donors over the three decades that the Foundation has been in existence.
They have been loyal supporters of the University and have worked to improve UK' s
athletic program. President Todd said that he appreciated Mr. Graves coming to the
Board meeting. He said he would be glad to answer any questions.

      Mr. Shoop moved approval of FCR 9.

      Dr. Stumbo said the Finance Committee discussed this item, received assurances
about it, and thinks that it is legitimate. He moved the adoption of FCR 9.

      Ms. May said that she appreciated Mr. Graves being there, and she did not want
anyone to take what she was going to say the wrong way. One of the things that
concerned her as a trustee is that this university signed a contract for the Foundation to




 




12 -



build something without the money being there. She asked if this is something that
President Todd is going to address and put policies in place to make sure this does not
happen again?

      President Todd explained that when he said that the Wildcat Foundation has
followed the practices of the University, he did not say that he agreed with the
University' s practices that were being followed at that time. He does not think the
Foundation did either. There was actually a contract signed on the Wildcat Lodge, but
contracts were not signed for other projects that took place between that project and this
project. When we put this contract in place, we did not ask if the money was in the bank.
Going forward,