xt7h1834266h https://exploreuk.uky.edu/dips/xt7h1834266h/data/mets.xml Lexington, Kentucky University of Kentucky 2003046 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, 2003-04-may6. text Minutes of the University of Kentucky Board of Trustees, 2003-04-may6. 2003 2011 true xt7h1834266h section xt7h1834266h 


                               Meeting of the Board of Trustees
                                    University of Kentucky
                                          1:00 P.M.
                                          May 6, 2003
                               18th Floor Patterson Office Tower


Accompanying materials:

President's Report and Action Items

PR 1    President' s Report to the Trustees
PR 2    Personnel Actions
PR 3    Appointment of Dean of the College of Arts and Sciences
PR 4    Naming of University Building
PR 5    Associate Vice President for Equal Opportunity Emerita Title be Conferred upon Nancy Ray
PR 6    Revision of Administrative Regulation on Retirement

Academic Affairs Committee Report

AACR 1 Candidates for Degrees - University System

Finance Committee Report

FCR 1     Acceptance of Interim Financial Report for the University of Kentucky for Nine Months Ended
March 31, 2003
FCR 2     Capital Construction Report
FCR 3     Report of Leases
FCR 4     Approval of Leases
FCR 5     Patent Assignment Report
FCR 6     Establishing Two Behavioral Science Quasi-Endowments
FCR 7     Establishment of the Partners in Agriculture Quasi-Endowment Fund
FCR 8     Gift of Property from Winchester-Clark County Industrial Authority
FCR 9     Toyota Motor Corporation Gift and Gift-in-kind
FCR 10    Georgie R. Murphree Estate Gift
FCR 11    George Strawbridge, Jr. Gift and Pledge
FCR 12    Pledge of Funds from Johnston-Wright Memorial Trust Fund
FCR 13    Kevin Heidrich/Team 7 Fighting ALS Gift and Pledge
FCR 14    2002-03 Budget Revisions
FCR 15    Approval of New Construction for Housing
FCR 16    A Resolution of the Board of Trustees of the University of Kentucky Declaring Official Intent
with Respect to Reimbursement of Temporary Advances Made for Capital Expenditures to be Made from
Subsequent Borrowings; and Taking Other Actions in Connection Therewith
FCR 17    A Resolution of the Board of Trustees of the University of Kentucky Authorizing the Issuance
of Approximately $3,910,000 of University of Kentucky Hospital Refunding Revenue Bonds, Series A
(Third Series), to be Dated the First Day of the Month in Which the Bonds are Sold

University Relations Committee Report

URCR 1 Resolution of the University of Kentucky Alumni Association Amending the Alumni Trustees
Election Resolution


      Minutes of the Meeting of the Board of Trustees of the University of Kentucky, Tuesday,
May 6, 2003.

      The Board of Trustees of the University of Kentucky met at 1:00 p.m. (Lexington time)
on Tuesday, May 6, 2003 in the Board Room on the 18th Floor of Patterson Office Tower.

      A.    Meeting Opened

      Mr. Steven Reed, Chairperson, called the meeting to order at 1:05 p.m., and Ms. Marian
Sims gave the invocation.

      B.    Roll Call

      The following members of the Board of Trustees answered the call of the roll: Mr. Paul
W. Chellgren, Ms. Marianne Smith Edge, Dr. Davy Jones, Professor Michael Kennedy, Ms.
Pamela R. May, Dr. Robert P. Meriwether, Dr. Elissa Plattner, Mr. Steven S. Reed
(Chairperson), Mr. Joseph Matthew Ruschell, Mr. C. Frank Shoop, Ms. Marian Moore Sims, Ms.
Alice Stevens Sparks, Ms. Myra Leigh Tobin, Ms. JoEtta Y. Wickliffe, Mr. Billy B. Wilcoxson,
Mr. Russ Williams, Ms. Elaine A. Wilson, and Ms. Barbara S. Young. Absent from the meeting
were Mr. Billy Joe Miles and Dr. W. Grady Stumbo. The University administration was
represented by President Lee T. Todd, Jr., Provost Michael Nietzel, Acting Senior Vice President
Jack C. Blanton, Senior Vice President and Chancellor of the Medical Center James W.
Holsinger, Jr., Vice President for Research Wendy Baldwin, and General Counsel Paul C. Van

      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. Reed asked if anyone wanted any of the items on the consent agenda removed. He
entertained a motion for approval of the following items on the consent agenda:
             April 1, 2003 Minutes
             PR 2 - Personnel Actions
             AACR 1 - Candidates for Degrees

(See PR 2 and AACR 1 at the end of the Minutes)

      Ms. Wilson moved approval of the consent agenda. Mr. Chellgren seconded the motion,
and it carried without dissent.

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

President Todd called attention to the following items in PR 1:


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       1.    UK's 136th Commencement features dual-degree Beckman Scholars. There will
             be a record number of graduates. Dr. Mary Sue Coleman, president of the
             University of Michigan, will be the commencement speaker and will also receive
             an honorary doctorate.

      2.    UK ranked 36th among top public research universities by NSF. R&D for federal
             projects was up 16.8% and industry-sponsored research was up 15.3%. One of
             the initiatives under way is to increase the number of proposals written so that UK
             goes forward.

      3.    Over 100 students were recognized for their hard work and achievements in the
             classroom, research laboratory, and life during he 2003 University of Kentucky
             Honors and Recognition Awards Program held recently.

      4.    Her Royal Highness The Princess Royal, Princess Anne recently visited the
             Maxwell H. Gluck Equine Research Center.

      5.    Four UK tenured faculty members and three teaching assistants recently received
             the 2003 Provost Awards for Outstanding Teaching.

      6.    Six UK students have won National Science Foundations Graduate Fellowships,
             one of the most prestigious and lucrative graduate fellowships in the world.

      7.    Jack Challis, a junior majoring in physics and mathematics at UK, received a
             2003 Barry M. Goldwater Scholarship.

      8.    UK takes Ovarian Cancer Screening to Outreach Clinics. That is an opportunity
             for the University to show that it serves the entire State of Kentucky.

      9.    The UK Department of Molecular and Cellular Biochemistry is recruiting talented
             undergraduate students from colleges and universities across Kentucky for a
             hands-on, intensive summer research program. The program offers a $3,000
             stipend during the 10-week program.

       10.   The program for the 22 African-American students to work with the "Bucks for
             Brains" professors is up to 31. President Todd noted that he and Dr. Wendy
             Baldwin, Vice President for Research, were splitting the cost of the increase.
             Programs such as this change a student's perspective on what the University is

       11.   LCC's nuclear medicine students exceed the national average and continue to
             show their strength.

      President Todd asked the Board to read the other items in the report because the faculty
and student awards are things that honor the University.


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       E.    Report on the Center for Research on Violence Against Women

       Dr. Baldwin and Carol Jordan, Acting Director of the Center, provided the Board with a
briefing on the Center's development and current activities.

       Dr. Baldwin provided a brief introduction on the development of the Center and the
breadth of the problem of violence against women. She explained that the Center was an
excellent opportunity for UK, as it will foster an aggressive research agenda (particularly in the
risk-related sciences); and it was an opportunity to be innovative in an area critical to women's
health and well-being. She indicated that, when fully implemented, the Center will be unique in
the nation. The Center is located under the Vice President for Research to emphasize its research
focus and its interdisciplinary nature.

       Ms. Jordan described the importance of the Center's development, specifically including
a significant need to address improved scholarship and graduate education on issues related to
violence against women. She shared findings from a 1996 National Research Council study
revealing weaknesses in research nationally in this area. The Center is positioned to aggressively
address both problems. The Center operates with an Advisory Committee comprised of UK
faculty, national researchers and Kentucky professionals; and effective July Ist will have a
compliment of three staff. The budget of the Center includes $305,469 in sponsored research
projects in the current year; and effective July Ist, a recurring budget of general fund support.
Additionally, the Center is building a strong endowment to support its research activities.

       Ms. Jordan updated the Board on the Center's current activities. They include:

       Creation of a Petit Research Grant program
       Submission of U.S. Department of Justice Safety on Campus Project
       Domestic Violence Offender Treatment Project
       Domestic Violence Protective Order Project (Supreme Court)
       Rape Prevalence Report (CDC Project)
       National Research Conference (October 1-2, 2003)
       Rape Crisis Center Leadership Project

       President Todd thanked Dr. Baldwin and Ms. Jordan for their presentation about the
Center and asked for questions from the Board. He also thanked his wife, Patsy, and Dr. Nietzel
for the time they have given to the project. He said that this is an area where UK can stand out.

       F.    Update on Robinson Forest Scholarship Program

       President Todd said the administration is beginning to put an emphasis on undergraduate
scholarships. He reported that the University has already exceeded last year's scholarship
acceptances by 31. This is a credit to a lot of people in the enrollment, management and
scholarship areas. He said there would be a presentation on the Robinson Forest Scholarship,
and there will be presentations on other scholarship programs at other meetings. He asked Dr.
Nietzel to begin the presentation.



       Dr. Nietzel said that he had talked with President Todd about the opportunity to present
to the Board information about the various scholarship programs at the University of Kentucky.
This presentation is the first in what he would envision to be a series that would summarize for
the Board the various scholarship programs at UK, the specific activities and students that are
targeted by them, the accomplishments and qualities of those students, and then also the needs
that these scholarship programs have because, as the Board is very well aware, private support is
critical for the University scholarship programs to be successful. That is both merit and need
based scholarship programs.

       Dr. Nietzel said the Robinson Scholars Program is unique to the University of Kentucky.
It is a program that the University can be very proud of because of its unique conceptualization,
the kinds of students that it brings to the University, and then the achievements of those students
once they are at UK or within other institutions in which they matriculate. He said that he had
asked two people to make presentations about two aspects of the Robinson Scholars Program:
Brad Goan, who is the Director of the Robinson Scholars Program, and Susan Krauss, who is the
Director of Investments and Endowment Services in the Office of the Controller and Treasurer at
the University. He said that two Robinson Scholars had also been invited to meet the Board, and
he appreciated the students taking time, particularly during finals week, to be attend the Board
meeting. They will share a word with the Board about what this scholarship has meant to them.

       Dr. Nietzel said that the intent of this presentation is to have the Board understand the
focus of the program, the academic intent of it, what the future needs for the program will be,
and why this program, along with a variety of other scholarship programs, will become a
development priority for the University. He said that it is clear that more attention needs to be
given to scholarship programs, and it needs to be a target for development for gifts and donations
to the University. Mr. Goan and Ms. Krauss gave the following report on the program:

       The Robinson Scholars Program serves first generation college-bound and college
students who have demonstrated the potential to succeed but who might encounter economic,
cultural, or institutional impediments to their completion of four-year college degrees. The
Program's mission is to provide these students with support services and scholarship resources
that empower them to complete a baccalaureate degree at the University of Kentucky. In
recognition of the potential obstacles facing these students, the program identifies Scholars in the
eighth grade. This approach recognizes the importance of academic support, social mentoring,
and college preparation throughout high school. Robinson Scholars, who successfully complete
all of the Program's eligibility requirements, including graduation from high school and
matriculation at the University of Kentucky, Lexington Community College, or any KCTCS
community college, receive scholarships and support services at the college level. The Robinson
Scholars Program is completing selection of its seventh class this spring. At the close of that
process, 452 students will have been named Robinson Scholars.

The Program's success is evident in the progress of the Scholars. 98 percent of the students have
graduated from high school (compared to 94 percent of the students in the 29-county area the
program serves), and 90 percent have matriculated at a post-secondary institution immediately
following high school graduation (compared to 49 percent in the service area). Students who
enroll in college are performing well and persisting. The overall college program retention rate


is 92 percent and the students' mean and median college grade point averages are higher than
those of non-Robinson Scholars in the same cohorts.

The Robinson Scholars Program is funded by the Robinson Trust Quasi-Endowment, which was
established by the University's Board of Trustees in April 1992. The Quasi-Endowment has
received revenues from Robinson Forest totaling $21.1 million through March 31, 2003 and has
been invested in the University's pooled endowment fund. The Quasi-Endowment has funded
several programs at the University, all supporting the purpose of agricultural experimentation
and reforestation, plus programs for the benefit of the people of the mountain region, as required
by the provisions of the Robinson Trust under which the University received the Robinson

The Robinson Scholars Program is the only program currently supported by the Robinson Trust
Quasi-Endowment, which had a current value of $9.7 million at March 31, 2003. The Quasi-
Endowment is expected to be completely exhausted in fiscal year 2008 based on projected
investment earnings and program expenditures. In order to continue the Robinson Scholars
Program, which currently has commitments to students through fiscal year 201 1, the University
should activate a development effort for the private funding of scholarship programs at the

      Justin Holbrook, a graduate from Whitesburg High School and a freshman at UK, and
Carly Rice, a graduate of West Carter High School and a sophomore at UK, were asked to share
with the Board some of their experiences in the program. Both students are biology majors.

      Ms. Rice thanked everyone for the opportunity and the time to tell them about the impact
the Robinson Scholars program has had directly on her and Justin. She told about growing up in
a family that had a constant power struggle with education. Her father dropped out his eighth
grade year. Her brother withdrew his senior year. Her mother had bigger dreams of becoming a
registered nurse, and following a long struggle, she became a LPN.

      Ms. Rice said that she had far too much of a hunger for education. Her dreams require
her to go on and get her Ph.D. She said that she wanted to concentrate on marine biology later
and become a professor so that she cannot only pass on knowledge to her students but also to her
children in the future. Getting this scholarship in the eighth grade gave her the peace of mind to
know that her dreams are attainable. She pointed out that the most important thing that the
Robinson Scholars program has done for her has been aiding in her transition. She said that she
was not necessarily prepared education-wise for UK. The coordinators of the Robinson Scholars
program have assisted her in many ways, including finding free tutoring programs, the Student
Support Services Program, and aid from a transition of rural community to a fast-paced college
life. She said she would not be at UK fulfilling her dreams had it not been for the Robinson
Scholars program.

      Mr. Holbrook said his parents did not graduate from high school. Because of the
Robinson Scholars program, he has an opportunity to get a college education, an opportunity that
his parents did not have. The Robinson Scholars Program does provide a lot of support services,
but the most beneficial thing that he has gotten is a desire to succeed. Out of 105 students in his


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graduating class, about 25 went to college. There is obviously a problem, but most people from
his high school had no desire to further their education and to be better person.

      He said that he received the scholarship when he was in the eighth grade. He probably
would not have been able to attend UK without the scholarship. Every day since receiving the
scholarship, he has thought about that, especially during finals week when he goes to the library
and stays all night studying chemistry. Lots of people are supporting him and want him to
graduate. Since receiving the scholarship in the eight grade, he has had a driving force behind
him that is always pushing him to succeed and be a better student. He thanked everyone for the
opportunity to speak and thanked them for having the program.

      There were several questions following the presentation regarding a development effort
to seek private funding for scholarship programs at the University.

      President Todd pointed out that a great matching opportunity for graduate fellowships
and for research funding happened with the "Bucks for Brains" program. Now, there is a need to
emphasize undergraduate scholarships. Mr. Mobley has worked with Dr. Nietzel and him
defining some of those programs.

      Ms. Sims said she would like for the Robinson Scholars on campus to know that the
Board is committed to them, wants them to stay in school, and wants them to reach their dreams.
That is one of the Kentucky "uglies" that President Todd has talked about, and the Board loves
the students for bettering themselves. She praised Mr. Goan for his good work and for fathering
the Robinson Scholars group.

      G.    Appointment of Dean of the College of Arts and Sciences (PR 3)

      President Todd asked Dr. Nietzel to come forward and introduce the new Dean of the
College of Arts and Sciences.

      Dr. Nietzel said it was his pleasure to introduce the next Dean of the College of Arts and
Sciences at the University of Kentucky, Dr. Steven Hoch. He reported that Arts and Sciences is
one of the largest colleges at UK. In terms of faculty, it is the second largest college with
approximately 375 faculty members in 20 departments. Those departments represent leading
units in the Humanities, in the Social Sciences and the Physical and Life Sciences. Over half of
all the student credit hours at the University of Kentucky are generated in the College of Arts and
Sciences. Every undergraduate educated at UK has an intense experience in the College. For the
past five years, Howard Grotch has provided excellent leadership in the College, and the
University should be very appreciative for all that he did for the College.

      Dr. Nietzel reported that the University was able to attract an extremely strong national
pool of candidates. There were about fifty candidates that the Search Committee evaluated, and
four very strong candidates were brought to campus. He said he was quite pleased to
recommend the appointment of Dr. Steven Hoch as Dean of the College of Arts and Sciences.
Dr. Hoch is a faculty member at the University of Iowa in the Department of History. His
particular area of scholarship is Russian History. He serves as the Associate Provost for



Academic Programs and is Dean of International Programs. His undergraduate degree was from
Trinity College, and he received both of his graduate degrees at Princeton. His appointment will
be effective July 1, 2003. His wife, Eva, will be joining UK in University Libraries. He asked
Dr. Hoch for any comments he wished to make to the Board.

      Dr. Hoch said he was very excited about coming to the University of Kentucky. He said
he had been extraordinarily impressed with the leadership of President Todd and Dr. Nietzel.
They are certainly one of the two main reasons he decided to move to the University of
Kentucky. He said he had been very pleased and excited about the faculty and the students that
he had the opportunity to meet. He noted that the University of Iowa Board of Regents is far
fewer than the University of Kentucky Trustees, and said he looked forward to working with the

      President Todd recommended that the Board approve the appointment of Steven L. Hoch
as Dean of the College of Arts and Sciences, effective July 1, 2003. Mr. Shoop moved approval.
Ms. Sims seconded the motion, and it carried without dissent. (See PR 3 at the end of the

      H.    Naming of University Building (PR 4)

      President Todd recommended that the Board of Trustees approve the renaming of the
Health Science Learning Center building to the College of Nursing Building. At the time the
University constructed the Health Science Learning Center in 1979, a variety of Medical Center
educational activities were located in the building. As years have gone on, the building has
become predominantly the home of the College of Nursing. Today this College is the only
Medical Center College without its own named building.

      The Committee on Naming University Buildings has reviewed the request of the Dean of
the College of Nursing and found it to be in compliance with University policies and
unanimously recommended approval of this name change. The Senior Vice President and
Chancellor for the Medical Center supports this recommendation. President Todd recommended
approval of PR 4. Ms. Smith Edge moved approval. Mr. Chellgren seconded the motion, and it
passed without dissent. (See PR 4 at the end of the Minutes.)

      I.    Associate Vice President for Equal Opportunity Emeritus be Conferred upon
Nancy Ray (PR 5)

      President Todd said it was a pleasure to bring PR 5 to the Board. He recommended that
Ms. Nancy Ray be named the Associate Vice President for Equal Opportunity Emeritus in
recognition of her long service and dedication to the University of Kentucky for more than 36

      In 1966, Ms. Ray began her career in the Dean of Women's Office. She was named
Assistant Dean of Students in 1967 and served as Assistant Dean of Students until 1972, when
she was named the first full-time Affirmative Action Officer for the University of Kentucky. In
1979, Ms. Ray received her Juris Doctorate from the University of Kentucky Law School and in


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1980 she was named Assistant Vice President and Coordinator of Affirmative Action. In 1990,
she was named Associate Vice President for Administration. She served in that capacity until
the year 2000 when she was named Associate Vice President for Equal Opportunity. Ms. Ray
spent her career as an advocate for students, faculty and staff. She was dedicated to giving all
people at the University a fair and equal opportunity to succeed as students and as employees.
Further, she was active in educating University of Kentucky faculty, staff and students about the
issues of sexual harassment. In addition, she served the community as Chair of the University of
Kentucky Forum on Learning Disability on Campus, presented sexual harassment workshops for
the Fayette County Bar Association, advised the Kentucky Association of HVAC Engineers on
Indoor Air Quality and ADA Issues, published a document on "ADEA and Retirement" for the
Lexington Benefits Council, and presented numerous seminars. He presented Ms. Ray with a
symbol of appreciation for the many years of service that she provided to the University.

      Dr. Plattner said that she worked with Nancy Ray on projects of equal opportunity in the
State of Kentucky. Ms. Ray fought a lot of difficult fights, not only at the University but across
the State of Kentucky and nationally, also. She said, "While she is being honored, let us
remember the legacy she leaves. She walked in some mighty tall boots, even at 5 feet 4."

      J.    Revision of Administration Regulation on Retirement (PR 6)

      President Todd said that PR 6 is a recommendation that the Board of Trustees approve
the revision of Administrative Regulations AR 11-1.6-1 effective March 1, 2003 to reflect the
current executive staff of the University. This revision updates that statute and permits
individuals in the positions included in Section 1I-F of the Administrative Regulations to
participate on the effective date of their eligibility to the plan. Basically, the proposal amends
the regulations and eliminates the references to Chancellor, a position that does not exist under
the Provost Model, and adds Provost, General Counsel, and Chief of Staff to the President which
is a recently approved position. University employees contribute 5% for retirement, and the
University contributes 10%. For people in the executive staff category, the University
contributes 15%. On motion made by Ms. Sparks, seconded by Dr. Jones and carried, PR 6 was
approved without dissent. (See PR 6 at the end of the Minutes.)

      K.    Academic Affairs Committee Report

      Mr. Reed stated that AACR 1 was on the consent agenda. He asked Ms. Sparks if she
had any comments for the Board. Ms. Sparks said she did not have any other information to
report to the Board.

      L.    Audit Sub-committee Report

      Mr. Chellgren, Chairperson of the Audit Sub-committee, reported that the Sub-committee
met that morning. Jim Carpenter from Deloitte and Touche was also present. Mr. Carpenter
gave a brief update on the status of the external audit which is about to be initiated in full force.
The audit this year is anticipated to require about 3500 hours of professional staff time in current
expense of just under $220,000. It will cover a number of important areas in the revenue side
(student billing, contributions, grants and contracts, payroll and personnel) and the expense side


9 -

(substantive testing and accounts receivable, investments, capital assets, self-insurance liabilities,
and updates on new auditing standards which will include audits of nine affiliated corporations).
It will also include other traditional reports and letters. There will be other audits of the Credit
Union, the Hospital, UK Health Enterprises, Kentucky Technology, Inc. and other affiliated
enterprises of the University. He reported that the team assigned to this job is quite experienced.
Mr. Carpenter has been in the audit profession for approximately 30 years and has been the
partner in charge of UK's audit for seven years. The members of the Sub-committee are quite
comfortable with the staffing of the project and are looking forward to it being initiated. Mr.
Chellgren said he, the staff and the external audit partner would be pleased to answer any
questions regarding the conduct of the audit for the 2002-2003 fiscal year. There were no
questions from the Board.

      M.    Acceptance of Interim Financial Report for the University of Kentucky for Nine
Months Ended March 31, 2003 (FCR 1)

      Mr. Chellgren, Chairperson of the Finance Committee, reported that the Committee had
extensive discussions of the action items at the meeting. Many of the Trustees were in
attendance, as was much of the financial and the non-financial staff of the University. He said he
would move through the 17 action items quickly and began with FCR 1.

      FCR 1 is the report of year-to-date financials as of March 31, 2003 which is the 75%
point in the fiscal year. At that point the University had received realized income of
$1,080,260,000 representing 80% of the anticipated estimate. The University had expended
$977,706,000 or 72% of the approved budget. The report was discussed in detail, and there are
no items that need to be brought before the Board's attention. He moved the adoption of FRC 1.
His motion, seconded by Ms. Sparks, carried without dissent. (See FCR 1 at the end of the

      N.     Capital Construction Report (FCR 2)

      Mr. Chellgren said that FCR 2 is the quarterly Capital Construction Report for the period
ending March 31, 2003. He reported that there were three new construction contracts as
described in the Report, four contracts completed, two amendments to the existing contracts, and
eleven change orders. The items in the report seem to be in the normal course of events, and
there are no items that need to be brought to the Board's attention. He moved the acceptance of
FCR 2. Ms. Smith Edge seconded the motion, and it carried. (See FCR 2 at the end of the

      0.    Report of Leases (FCR 3)

      Mr. Chellgren said that FCR 3 is the traditional report of lease renewals. These are with
lease expenditures of less than $30,000 annually. There are nine lease renewals, and they are all
in the normal course. He moved the acceptance of FCR 3. Mr. Shoop seconded the motion, and
it passed without dissent. (See FCR 3 at the end of the Minutes.)


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      P.    Approval of Leases (FCR 4)

      Mr. Chellgren said that FCR 4 is for leases greater than $30,000 annually. There are four
renewals, and all of them are in the normal course of business of the University. He moved the
acceptance of FCR 4. Ms. Wickliffe seconded the motion, and it carried without dissent. (See
FCR 4 at the end of the Minutes.)

      Q.    Patent Assignment Report (FCR 5)

      Mr. Chellgren said that FCR 5 is the quarterly report of the Patent Assignments from the
Office of Intellectual Property. There are four patents as described in the attachment to FCR 5.
He reported that the Committee received a brief update on a number of patent applications
through April 30th. There were twenty-one applications, and nineteen patents were issued. The
University's patent income year-to-date is $760,000. The Committee also had a brief discussion
of the University's patent portfolio. The patent income this current year is down because of the
expiration of some of the higher return patents. He moved acceptance of the four patents under
FCR 5. Dr. Meriwether seconded his motion, and it passed without dissent. (See FCR 5 at the
end of the Minutes.)

      R.    Establishing Two Behavioral Science Quasi-Endowments (FCR 6)

      Mr. Chellgren reported that FCR 6 and 7 are in a reclassification of formally contributed
funds that were in the short-term money market funds and are being reclassified into quasi-
endowment. He noted that this is not new money. FCR 6 is to establish new quasi-endowments
which will permit the funds to be invested with the long-term time horizon under the auspices of
the Investment Committee.

      He reported that FCR 6 is the establishment of the Marion Pearsall Quasi-Endowment
Professorship and the Behavioral Science Research and Education Quasi-Endowment in the
Department of Behavioral Science in the College of Medicine. The professorship will be funded
at $100,000 and the education endowm