xt7crj48q14p https://exploreuk.uky.edu/dips/xt7crj48q14p/data/mets.xml Lexington, Kentucky University of Kentucky 20030816 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, 2003-08-sep16. text Minutes of the University of Kentucky Board of Trustees, 2003-08-sep16. 2003 2011 true xt7crj48q14p section xt7crj48q14p MINUTES Meeting of the Board of Trustees University of Kentucky 1:00 P.M. September 16, 2003 18th Floor Patterson Office Tower Minutes Accompanying materials: President's Report and Action Items PR 1 President' s Report to the Trustees Robinson Forest Report PR 2 Personnel Actions PR 3 Appointment of Dean of the College of Dentistry PR 4 Appointment of Executive Vice President for Health Affairs PR 5 Establishment of Engineering Alumni Association Professorship PR 6 Naming of University Building PR 7 Renaming of Administrative Office Academic Affairs Committee Report AACR 1 Candidates for Degrees - University System (Consent) AACR 2 Candidates for Degrees - Community College System (Consent) AACR 3 Bachelor of Arts in Russian Studies and Bachelor of Science in Russian Studies Finance Committee Report FCR 1 Acceptance of Audit Report and the Report on Compliance and on Internal Control for the University of Kentucky for 2002-03 FCR 2 Capital Construction Report FCR 3 Report of Leases FCR 4 Patent Assignment Report FCR 5 Gifts to UK Center for Research on Violence Against Women FCR 6 Kentucky Medical Services Foundation, Inc., Pledge FCR 7 CompEd, Inc. Gift and Pledge FCR 8 James C. Albisetti Gift and Pledge FCR 9 Buck-Kentucky Lung Cancer Research Chair FCR 10 Altria/Philip Morris Inc., Gift FCR 11 Don and Mira Ball Gift and Pledge FCR 12 Emil W. Johnson Gift FCR 13 Anonymous Gift and Pledge FCR 14 Changing Names of Two Gill Endowments FCR 15 Delegation of General Provisions of House Bill 269 FCR 16 University of Kentucky Capital Request 2004-2006 FCR 17 Proposed 2004-05 and 2004-06 Tuition Rates and Mandatory Fees Increases FCR 18 2003-04 Budget Revisions FCR 19 A Resolution of the Board of Trustees of the University of Kentucky Authorizing the Issuance of Approximately $17,645,000 of University of Kentucky Consolidated Educational Buildings Revenue Bonds, Series T, to be Dated the First Day of the Month in which the Bonds are Sold FCR 20 A Resolution of the Board of Trustees of the University of Kentucky Authorizing the Issuance of approximately $14,190,000 of University of Kentucky Consolidated Educational Buildings Refunding Revenue Bonds, Series 0 (Second Series), to be Dated the First Day of the Month in which the Bonds are Sold FCR 21 A Resolution of the Board of Trustees of the University of Kentucky Authorizing the Issuance of Said Board' s Housing and Dining System Refunding Revenue Bonds, Series M and 0 (Second Series), to be Dated the First Day of the Month in which Sold; Authorizing Proper Proceedings Relative to the Public Sale of the Bonds and the Disposition of the Proceeds thereof, Authorizing Execution of a Twelfth Supplemental Trust Indenture Between the Board and Farmers Bank & Capital Trust Company, Frankfort, Kentucky, as Trustee, in Compliance with the Provisions of the Trust Indenture Dated June 1, 1965 FCR 22 A Resolution of the Board of Trustees of the University of Kentucky Approving the Action of the Board of Regents of the Kentucky Community and Technical College System (KCTCS) Directing the University of Kentucky to Call University of Kentucky Community College Educational Buildings Revenue Bonds Series I, J and Certain Bonds of Series A, C, F, and H (Second) and Further Authorizing the Treasurer of the University to Execute a Call of Said Bonds Minutes of the Meeting of the Board of Trustees of the University of Kentucky, Tuesday, September 16, 2003. The Board of Trustees of the University of Kentucky met at 1:00 pm (Lexington time) on Tuesday, September 16, 2003 in the Board Room on the 18th Floor of Patterson Office Tower. A. Meeting Opened Mr. Steven S. Reed, Chairperson, called the meeting to order at 1:03 p.m., and Ms. Marian Sims gave the invocation. B. Oath of Office Paul Van Booven, General Counsel, administered the Oath of Office to the following new members: James F. Hardymon, appointed by Governor Paul E. Patton to replace Paul W. Chellgren, for a term ending June 30, 2009. Phillip R. Patton, appointed by Governor Paul E. Patton to replace Warren Grady Stumbo, for a term ending June 30, 2009. Rachel Watts, who will serve as student trustee for the 2003-2004 academic year. JoEtta Y. Wickliffe, reappointed by Governor Paul E. Patton, for a term ending June 30, 2009. C. Roll Call The following members of the Board of Trustees answered the call of the roll: James F. Hardymon, Davy Jones, Michael Kennedy, Pamela May, Robert P. Meriwether, Phillip Patton, Elissa Plattner, Steven S. Reed (Chairperson), Frank Shoop, Marian Moore Sims, Alice Stevens Sparks, Myra Leigh Tobin, Rachel Watts, JoEtta Y. Wickliffe, Billy B. Wilcoxson, Russ Williams, Elaine A. Wilson, and Barbara S. Young. Absent from the meeting were Marianne Smith Edge and Billy Joe Miles. The University administration was represented by President Lee T. Todd, Jr., Provost Michael Nietzel, Executive Vice President for Finance and Administration Dick Siemer, Executive Vice President for Research Wendy Baldwin and General Counsel Paul C. Van Booven. 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 1:07 p.m. D. Nominating Committee Report Mr. Reed called upon Mr. Shoop, Chair of the Nominating Committee, for the Nominating Committee report. 2 - Mr. Shoop asked that Mr. Reed appoint another member of the Board to serve as Chair to receive the Nominating Committee report. Mr. Reed appointed Dr. Meriwether to assume the duties of Chair and receive the report. Mr. Shoop reported that the Nominating Committee met on Wednesday, September 10th to consider the nomination of officers of the Board of Trustees and the members of the Executive Committee. The Nominating Committee submits the following names for officers: Steve Reed, Chair JoEtta Wickliffe, Vice Chair Russ Williams, Secretary Paul Van Booven, Assistant Secretary Dr. Meriwether stated that there was a motion, and Ms. Sparks seconded the motion. Dr. Meriwether called for any other nominations from the floor, and there were no nominations. He called for a motion to accept the Nominating Committee report, and the motion carried unanimously. Mr. Shoop said that the Nominating Committee submits the following names for members of the Executive Committee: Steve Reed, Chair Marianne Smith Edge James F. Hardymon Robert P. Meriwether JoEtta Wickliffe Russ Williams, ex officio Dr. Meriwether stated that there was a motion, and he called for a second to the motion. Ms. Sims seconded the motion. Dr. Meriwether called for any other nominations, and there were no nominations. He called for a motion to accept the Nominating Committee report, and the motion carried unanimously. President Todd congratulated Mr. Reed, and Mr. Reed received a round of applause. E. Consent Agenda Mr. Reed asked for a motion of approval for the Minutes and other items on the consent agenda. Ms. Wilson so moved, and Ms. Wickliffe seconded the motion. The motion carried without dissent, and the following items on the consent agenda were approved: Minutes - June 24, 2003 Minutes - Retreat - August 26, 2003 PR 2 - Personnel Actions AACR 1 - Candidates for Degrees - University System AACR 2 - Candidates for Degrees - Community College System 3 - F. Schedule for Meetings for Board of Trustees - 2004 Mr. Reed called attention to the Schedule for Meetings for the Board of Trustees for 2004 and asked for questions. He noted that the dates that are put in the record for 2004 are January 27, March 2, April 6, May 4, June 22, September 21, October 26 and December 14. Mr. Reed announced that there had been another meeting scheduled for 2003, and that meeting would be held October 29th. He asked that the Board make note of that date and pointed out that the meeting will be held on a Wednesday instead of a Tuesday. Just for clarification, he repeated that the meeting was not previously scheduled, and an October meeting was added because there was going to be a gap between the September and the December meetings. Ms. Sparks asked if there was a meeting in December. Mr. Williams replied that there is a statutory meeting in December. Mr. Reed then called upon President Todd for his report and action items. G. President's Report to the Board of Trustees (PR 1) Before beginning with PR 1, President Todd mentioned the articles that appeared in the Herald-Leader and the Kernel regarding the record quality of the freshman class that enrolled for the fall semester. He said that he was pleased to be able to say that last year was the best record in the University's history; however, this year, it is even better, and that is the way to continue. He commented about the staff in the Provost area and congratulated Don Witt's area on that success. He reported that the University had a 30% increase in African-American students this freshman year. The Legacy Program now has about 290 legacy scholars. That is up about 80% in the freshman year which indicates that word is getting out about that program. There are 318 students in the Governor's Scholars Program and the Governor's School for the Arts. That is up about 20% over last year. There are 145 valedictorians and 45 National Merit Finalists. He emphasized that this is a tremendous freshman class. President Todd reported that the preview nights for next year are already beginning, and stated that Mr. Witt's organization does not get much rest. Attendance has been up 30% as a minimum and 60% as a maximum in the three preview nights that have already been held for next year. It is anticipated that 1,000 students will attend the Preview Night in Louisville. These students bring their parents, and it is really refreshing. He noted that the total enrollment crossed over 35,000, and this is up 2%. He stated that it is a record year in many respects. President Todd announced that a job description for the Coldstream directorship would be posted. That position will report to Dr. Baldwin. He said that the Board would be getting copies of that, and said he would appreciate any suggestions. 4 - President Todd thanked Bill Markesbery, Bob Lawson, Billy Wilcoxson and Bob Meriwether for their service on the Athletic Association Board of Directors for several years. He reported that new by-laws were put in place this past year that rotate memberships. He said that he was pleased to announce that he has added Alice Sparks and James Hardymon as trustee representatives to the Athletic Board. Faculty representatives on the Board will be Ray Mullins, a professor in Dentistry, and Linda McDaniel, a professor in accounting. Elizabeth McCaslin from volleyball and Antoine Huffman from football will be the student representatives. Dr. John Piecoro is the faculty representative, an area that he has served for sometime. At Mitch Barnhart's suggestion, there will be a Student Affairs Committee. Vice President Pat Terrell is chair of that Committee. Liz and Antoine will be members, along with Alice Sparks and Ray Mullins. President Todd announced that the next Athletic Board meeting will be October 17th, and the Board of Trustees will be invited to it. President Todd reported that there would now be a Finance Committee of the Athletic Board. The Ad Hoc Ticket Committee had been established sometime ago. All of the processes and procedures with tickets will now go to the Finance Committee. The Finance Committee will look at the financial reports as well as the tickets and ticket audit. Dick Siemer is the Chair of the Finance Committee. Claudia Heath, Luther Deaton and James Hardymon are the members of that Committee. A Long-range Planning Committee of the Athletic Board will also be established. This is another suggestion of Mitch Barnhart, and they will be working on that Committee's membership. President Todd thanked everyone who has served diligently on the Athletic Board and expressed appreciation to those who are now coming on the Board. President Todd called attention to certain items in PR 1 and encouraged the Board to read all of the items. 1. UK started a new tradition this year, UK FUSION (For Unity and Service in Our Neighborhoods). This is a program that First Lady Patsy Todd had become particularly interested in with at Boston University when their daughter was up there. For an entire week, they invite the new freshman to have a public service experience. UK tried it for one day. There were approximately 650 students who did about four hours of public service to 40 organizations throughout the city, and it was tremendous. According to a survey done by Vice President Pat Terrell, 98% of the students who participated said that they would do it again and would recommend it. That is a huge success, and it will become a tradition at UK. 2. The economic impact of UK's research enterprise increased to $433.3 million. This has a leverage impact on the economy, both in jobs and in dollars spent in the community. 3. The Educational Psychology Program has been ranked 1 9th among peer programs. As mentioned before, the way to get to "top 20" is to have different departments move up, and others move up later. It is great to be in that category. 4. As a part of the effort to diversify campus, the Commission on Diversity recommended that a President's Award for Diversity be established, and the President will present the award each year. Those nominations are now being sought across campus. 5. The Arts and Sciences Assistant Dean, Richard Greissman, developed a UK graduation contract. This was previously passed through the University Senate and has the Senate's support. The way the contract will work is there will be certain things that the students will have to abide by. If the students abide by those things and cannot graduate on time because of a University problem, then the University will pay that tuition. 6. Dr. James K. Patterson's statue has moved to a new location in front of the Patterson Office Tower. There are four ways that Dr. Patterson could face, and the architects made recommendations. Dr. Patterson is now facing the "Main Building" that he put money into, as well as 40 years of his life. In the beginning, that was the University's only building, and as you look at the back of the "Main Building", the large opening will be the Welcome Center. The concept is that Dr. Patterson will be there to welcome all the new students and faculty as they come to campus. 7. Dr. Thomas D. Clark, historian, celebrated his 100th birthday. There was a great turnout for one of his celebrations at the W. T. Young Library. H. Robinson Forest Report President Todd said that the Board had received a Robinson Forest report in their Board packets and hopefully had a chance to review the report prior to the meeting. The report has some very good information. He thanked Dr. Grady Stumbo for his resolution in asking for the report to come forward. He also thanked Jack Blanton, Scott Smith, Paul Van Booven, and Jim Cobb of the Kentucky Geological Survey, for their work. Each of them was assigned different components of the report. He asked Dr. Jack Blanton to give a very brief summary of the report and said that Dean Smith would talk about the work that he had done on the report. Following their reports, he would take questions regarding the report. Dr. Blanton thanked President Todd and said that he is living testimony to the fact that old vice presidents never die they just fade away, and this is his valedictory, he hoped. He said that his appearance before the Board is to conclude the one major item that was left unfinished from his watch as vice president. 6- About a year ago, Dr. Grady Stumbo introduced a resolution that directed the administration to prepare a report updating the Trustees on programs carried out in the Robinson Forest and also to provide an assessment of the resources of the Forest. To refresh the Board's memory, this resolution is shown on page one of the report. Dr. Blanton said that, following Dr. Stumbo's resolution, President Todd immediately named the four administrators that he identified earlier to prepare this report, and they immediately began to work on it. Please note that the Robinson Forest is comprised/composed of several tracts that total approximately 14,000 acres in east Kentucky, but this report focuses on the 10,000 acres that are all together. That is some 10,000 acres in Perry, Knott, and Breathitt counties. This is shown on the inside cover of the report. The four administrators met last October and prepared an outline for the report. Responsibility was assigned for each part of it. All of this was cleared with President Todd, and he approved the outline. Dr. Blanton reported that he wrote the first chapter that summarizes how the University came to acquire the Forest and the constraints that are imposed upon it. It really is fascinating history to go back into the old documents and read the old letters between the University administrators and Mr. Robinson, who was the donor of the Forest to the University. It was virtually clear-cut, and Mr. Robinson then decided to give the tracts to the University. Three heroes came out of this, Dean Cooper, President McVey, and Mr. Robinson. The University still owes a great debt of gratitude to Dean Cooper for the acquisition of the Forest. President McVey supported the Dean, and Mr. Robinson gave the Forest to the University. The essence of the first chapter, though the salient points, is that UK today owns the mineral rights in the Forest. That is the coal rights. UK does not own the oil and gas rights in the Forest, and there are strict limitations on what UK is allowed to do with any proceeds that come from the Forest. That is in effect the essence of the first chapter. Dean Scott Smith, with the help of the UK Forestry Department and others in the College of Agriculture, prepared Chapter 2 of the report. It details the teaching, research and service role the Forest has served over time and continues to serve to this very day. Dean Smith will elaborate on this part of the report. Dr. Blanton called attention to page 12 of the Report. He said that he and the foresters have estimated that the timber value is approximately $11 M. With the assistance of a highly professional staff, Dr. Cobb offered Chapter 3 which estimates the tonnage of the coal seams that lie above the drainage line in the Forest and could be extracted if it were mined by surface mining technique. The estimated tonnage ranges from 101 M to 1 1 7M for an average of 1 08M tons lying above the drainage line. Dr. Blanton said that they did not put into this report an estimate of the value of this coal because of the wide number of variables that would establish value. First among those is the actual tonnage, and this is an estimate. It was gathered by looking at data points from mining operations contiguous to the Forest, and in the market, price of coal always determines value, but those are the two leading indicators. But, if 108M tons of coal were mined from the Forest at a selling price of between $25 and $40, which they estimate is today's price of that type of coal as shown on page 15 of the report, the value would be between $2.7 and $4.3 billion dollars. Please 7 remember that only a small percentage of these sums would come to the University in the form of royalties. He said that they did not attempt to estimate the value of any coal seams that might lie below the drainage line, since that would involve extensive and expensive test borings within the Forest. He noted that because they were able to call upon the expertise of the Geological Survey, they did not have to engage the services of external consultants in the preparation of the report. He said that Dr. Steve Greb, who was in attendance, would be pleased to answer any questions about the methodology or any aspect of the coal evaluation and respond to any inquiries about that third chapter. Dr. Blanton reported that Mr. Van Booven, who is UK's in-house resident expert on the Forest and whose love of the Forest extends beyond his professional duties, prepared the fourth and final chapter of the report. Mr. Van Booven recounts the legal battles over title, and anyone who has dealt in east Kentucky knows that titles there are very uncertain. The University has had to defend its title to lands that are in the Robinson Forest over time, and Mr. Van Booven recounts some of that in the report. He called attention to page 23 of the report where Mr. Van Booven notes that an effort to overturn the lands unsuitable declaration would put the Board in the awkward position arguing against all of the points it presented a decade ago in gaining the declaration. In addition, the cost of this legal battle would be in the neighborhood of about $1M, according to Mr. Van Booven's estimate not to mention the controversy that would ensue. Dr. Blanton commented about the people marching around the Patterson Office Tower earlier that morning saying "save the Robinson Forest." That march gives the Board some idea of the controversy that would ensue if the institution decided to go into mining there. Dr. Blanton added that almost from the adoption of Dr. Stumbo's resolution last September, the report is being characterized as pitting mining the Forest against saving the Robinson Scholars Program. That is not the case. It was never the case, and it is not a part of the report. In fact, Vice President Terry Mobley will speak to the Board about a campaign underway to raise funds for the Robinson Scholars Program and indeed save that very valuable program. The report fulfills the administration's obligations completely. It is now in the Board's hands. The President will want to conclude this discussion with some comments of his own as the report is turned over to the Board. Dr. Blanton asked Dean Scott Smith to come forward and expound on his part of the value of the Forest outside of the mineral resources that are there. Dean Smith said that in addition to some elaboration on the research and education values of the Forest, he had also been asked to comment briefly on current and future management of Robinson Forest in the College of Agriculture and the Department of Forestry. He pointed out that Robinson Forest is scientifically significant, meaning of considerable value for research and education for multiple reasons, including but not limited to the following: 8 - 1. It is a relatively rare, large and contiguous block of a certain forestland type that is highly representative of the Cumberland plateau. 2. It has several elements of the fluorine bottom. It has plants and animals that are richly diverse and really interesting in terms of ecology. 3. It has unique value for forest hydrology and perhaps this may be the most distinguishing research value of the Forest, and it is an ideal site for water quality research because of multiple watersheds suitable for monitoring comparison analysis somewhat related to that in point number 4. A very large body of baseline data on water quality by diversity and many other aspects of the Forest has been accumulated over a period of decades. 4. Management and disturbance of the Forest has been known, defined and controlled for many decades as well. Dean Smith said that the defining objectives in the College of Agriculture in the management of Robinson Forest are optimizing research and education value of the Forest while exercising conscientious stewardship and conservation of that resource. He noted that a proposed new management plan for Robinson Forest has been drafted in cooperation with some faculty in the Department of Forestry. He reported that it is currently under review and gave a very brief synopsis of the plan. The plan divides the forestland into four categories. 1. Zero or low impact management: This is the type of management that would allow for true conservation of old growth forest and continuing development of that type. 2. Education-intensive: These are the entrance areas, the camps, the nature trails, and areas where there are already a lot of visitors, and this could realize a tremendous potential for environmental education. 3. Hydrology research: In this area, management would be determined by necessary research manipulations for these studies. There would be some timber harvest in these areas as required for experimental treatments. 4. Sustainable forestry: These areas would be managed to achieve independently certifiable, sustainable timber harvest on a long-term rotational basis. Such "green" certification actually increases the value of the lumber produced. A sustainable rotation of hardwoods should be about 70 years, and this would mean that roughly 1/70 of that block of designated land for this category would be harvested every year under this proposal. While this rotational harvest occurred, these areas would retain their value for research and education. 9 - Since someone is likely to ask about the income from such logging operations, he said that he would go ahead and tell the Board what he thinks it would be. Speculatively, full implementation of this new plan could eventually, after a certain infrastructure and practices are put in place, generate as much as $200,000 to $300,000 per year in gross revenues from this sustainable timber harvest. The direct costs of operating Robinson Forest are in the range of $100,000 to $200,000 per year. He said that it is his interpretation of the terms of the trust that ''net revenues" from such operations in the Forest may be used for "experimental work and teaching", for "demonstration of reforestation" or for the "betterment of the people of the mountain regions...", for example, to support Robinson Scholars. President Todd thanked Dr. Blanton and Dean Smith for the work they put forward. He said that this report is extremely helpful, and the Board now has an up-to-date history and assessment of this very unique and special resource that the University has managed for some time. This report will not only help guide this body but also the College of Agriculture and those that follow in the stewardship of the Forest. President Todd said that he wanted to take care of a couple of issues. First, he wanted to begin by stating that he has no interest in pursuing mining of coal reserves in the main block of Robinson Forest, and he is not bringing any such proposal to the Board at this time. In his opinion, the University's focus should be on the environmental watershed and forestry research within the Forest. He said that he believes that this should include continued timber harvest as a part of the forestry research and renewable resources, especially since that relates directly to the language in the Robinson Trust. In addition to the research, the timber can help offset some of the operational costs that Dean Smith mentioned. He said that he is comfortable that the College of Agriculture has a well-defined plan for these efforts. Obviously, the University's biggest challenge is the maintenance of the Robinson Scholars Program. The plan is to aggressively solicit donations from individuals, from corporations, and from foundations to help offset the dwindling trust that would go away. If nothing were done, in 2008 the program would be finished. That is not the intent. He asked Terry Mobley, Vice President for Development, to speak about some plans that have already begun to try to enhance the funding of the Robinson Scholars Program. Mr. Mobley reminded the Board of the recent presentation on the Robinson Scholar Programs and the dwindling of the funds of the Trust. He said that the Board heard the personal testimony of two of the Robinson Scholars, and if the Board members have a heart at all, they will want to continue that program. It was absolutely wonderful to hear the stories of those young people from the 29 county areas. He talked about the costs of the Robinson Scholars Program and the way it was originally established. He said there are 116 students in the program, and if you take today's tuition, room and board, and cost you are talking about a need of $950,000 annually. It is no small challenge that the University faces but with everyone believing in the Robinson Scholars Program, every effort will be made to make those funds available by 2007-2008. Mr. Mobley reported that Keith Madison, former baseball coach who retired this year, has been hired to work with the Robinson Scholars Program. He thanked Mitch Barnhart and the 10 - Athletics Department for providing the funds to pay Mr. Madison's salary. Mr. Madison is a wonderful person who has contacts across the state. The Robinson Scholars Program, as far as raising funds for it, will be just another part of raising funds for all undergraduate scholarships that are needed as a result of many of the successful recruiting programs that the President has mentioned. The approach will be to raise money county-by-county. The University has never raised money by county. There have already been meetings at Harlan, and a volunteer group has been formed there. The next county will be Laurel. The next one is Bell, and meetings will be scheduled at all 29 counties. There are a lot of people who may not have a common interest in the University of Kentucky, but they have interest in providing scholarships for students from their local areas and have already indicated thusly. Commercial establishments are located in all 29 of those counties that are already supporting it to some extent. There have been a lot of initial interests in the local communities, not only keeping the Robinson Scholars Program alive but in supporting it to the tune of paying for the students' cost from their respective counties. Mr. Mobley said that it has been wonderfully accepted, and he thanked the volunteers from the various counties who have shown tremendous interest in supporting the Robinson Scholars Program. He said that he would be happy to answer any questions. President Todd thanked Mr. Mobley for his comments and said that he would like to reiterate the thank you to Mitch Barnhart. When Mr. Barnhart called him to indicate that he felt he could raise the ticket prices to the point where the Athletics De