xt7hhm52g89z https://exploreuk.uky.edu/dips/xt7hhm52g89z/data/mets.xml Lexington, Kentucky University of Kentucky 20020817 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, 2002-08-sep17. text Minutes of the University of Kentucky Board of Trustees, 2002-08-sep17. 2002 2011 true xt7hhm52g89z section xt7hhm52g89z 


                             Meeting of the Board of Trustees
                                  University of Kentucky
                                        1:00 P.M.
                                   September 17, 2002
                             18th Floor Patterson Office Tower


Accompanying Materials:

President's Report and Action Items

PR 2    Personnel Actions
PR 3    Proposed Amendment to the Governing Regulations

Finance Committee Report

FCR 1   Acceptance of Consolidated Financial Statements for the University of Kentucky for 2001-02
FCR 2   Notice of Federal Interest Requirement
FCR 3   Authorization to Sell 5.09 Acres, Leesburg Road, Scott County, Kentucky
FCR 4   Philip Morris, Inc., Gift
FCR 5   Gift of Property from C. M. and Leigh Gatton
FCR 6   Delta Dental Plan of Kentucky Pledge
FCR 7   Gloria W. Singletary Professorship/Chair Gifts and Pledges
FCR 8   Establishment of Arts and Sciences Quasi-Endowment


      Minutes of the Meeting of the Board of Trustees of the University of Kentucky,
Tuesday, September 17, 2002.

      The Board of Trustees of the University of Kentucky met at 1:00 p.m. (Lexington
time) on Tuesday, September 17, 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 1:10 p.m., and Dr.
Elissa Plattner 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, Professor Michael Kennedy, Ms.
Pamela R. May, Dr. Robert P. Meriwether, Mr. Billy Joe Miles (Chairman), Dr. Elissa
Plattner, Dr. Claire Pomeroy, Mr. Steven S. Reed, Mr. Tim Robinson, Mr. C. Frank
Shoop, Ms. Marian Moore Sims, Ms. Alice Stevens Sparks, Dr. W. Grady Stumbo, Ms.
Myra Leigh Tobin, Ms. JoEtta Y. Wickliffe, Mr. Billy B. Wilcoxson, Mr. Russ Williams,
Ms. Elaine A. Wilson, and Ms. Barbara S. Young. The University administration was
represented by President Lee T. Todd, Jr., Acting Provost Michael Nietzel, Acting Senior
Vice President Jack C. Blanton, Senior Vice President and Chancellor of the Medical
Center James W. Holsinger, Jr., Acting Vice President for Research James Boling, and
Acting General Counsel, Mr. Paul 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 1:13 p.m.

      C.    Billy Joe Miles Comments

      Mr. Miles noted that this was his last action with the gavel, and said that he would
like to make his campaign speech. He thanked the Board members for being friends and
for working as a team and Board. He said that as he leaves some good things, he would
be off of Davy Jones' e-mail list.

      Mr. Miles said that the University has moved beyond the next great university.
There has been a ruling by the highest court in the land that this is without a doubt the
greatest university in America. That court ruling is the highest court there is, the court of
public opinion in the State of Kentucky. Anywhere you go in the State, everyone is
extremely proud of where the University is and where it is going. He said, in his opinion,
this is just the beginning.

      He said that he did see one bad problem that he thinks needs to be corrected. If
the University is going to be what the President wants it to be in a higher purpose


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university, there must be a greater sense of urgency in making administrative
appointments and not take forever to have searches to fill the positions. The University is
in competition with other universities. In his opinion, the University is going to have to
be more of a business than a university and make these decisions quicker. Other than
that, he said he really enjoyed the last two years. This Board has accomplished a lot. He
said that he has friends that he did not know personally before he became Chairman of
the Board, and he has tremendous respect for them. Mr. Miles received a round of
applause and a standing ovation.

      Mr. Miles called on Mr. Shoop, Chairman of the Nominating Committee, for the
Nominating Committee report.

      Mr. Shoop addressed Chairman Miles and said that he said that title with pride
and respect for the outstanding job that Mr. Miles has done as Chairman of the University
of Kentucky Board of Trustees.

      He reported that the Nominating Committee met that morning to consider the
nomination for officers of the Board and the members of the Executive Committee. The
Nominating Committee submitted the following nominations for officers:

             Chair               Steve Reed
             Vice Chair          JoEtta Wickliffe
             Secretary           Russ Williams
             Assistant Secretary  Paul Van Booven

      Mr. Miles asked for any nominations from the floor. There were no nominations
from the floor. He called for a motion to accept the Nominating Committee's report. Mr.
Wilcoxson so moved. Mr. Miles noted there were four seconds, and the motion carried
without a negative vote. Mr. Reed received a round of applause.

      President Todd acknowledged that Mr. Reed's wife, Nickie, was present with a
video camera. He also recognized Mr. Reed's brother in the audience, and said that this
is a proud moment for the Reed family and a proud moment for the University of

      Mr. Reed said that he would like to make a couple of comments before continuing
the agenda. First and foremost, he would like to thank a dear friend of his, someone that
he had learned a tremendous amount from and someone who has sometimes seemed to
possess Solomon-like wisdom. That person is Billy Joe Miles. He said that it had been
an honor to work with Mr. Miles as Vice Chairman of the Board for the past three years,
not two, and that Mr. Miles is a true star for the University of Kentucky (UK). He
reiterated that he had learned a lot.

      Mr. Reed thanked his fellow Board members for their support and their trust. He
also asked God's blessing as the Board locks hand-in-hand with President Todd to


3 -

undertake this almost sacred undertaking, and that is the development of the University of
Kentucky, the Commonwealth of Kentucky, and its people, particularly their minds.

      He said that as the flagship university, UK is in a unique position to be entrusted
with the well-being of the Commonwealth. The Board takes that very seriously. We
aspire for greatness at UK, nothing less and nothing else. There are no short cuts, no easy
roads, even rest is forbidden. Indeed great things are already happening. We aspire for
more, much more for UK, more for our precious students, our faculty and our staff.
Through our research, our teaching and our service, and through our hearts, we will move
this Commonwealth to even greater heights. We are going to move it to even much more
greatness as we touch the lives of millions of people each and every day and millions of
more lives yet to come. Mr. Reed said that he is honored to be a part, to be a fly on the
wall, if you will, of something that he believes passionately in, and that is education. An
entity that he believes passionately in, in delivering that education, is the University of

      Mr. Reed received a round of applause. He then called on Mr. Shoop to continue
with the Nominating Committee report without dissent.

      Mr. Shoop said that it is with the same respect and honor that in his official
capacity as Chairman of the Nominating Committee that he is the first to get to address
Mr. Reed as the Chairman. On a personal note, it is his pleasure of knowing Mr. Reed
and his family for many years. This is, indeed, a monumental occasion for the University
in Mr. Reed's election of Chairman of the UK Board of Trustees. He commended Mr.
Reed for that and congratulated him.

      Mr. Shoop said that the Nominating Committee submits the following
nominations for members of the Executive Committee:

             Mr. Steve Reed, Chair
             Mr. Paul Chellgren
             Ms. Marianne Smith Edge
             Dr. Robert Meriwether
             Dr. Claire Pomeroy

      Mr. Reed called for a motion. Ms. Sims so moved. Her motion, seconded by Dr.
Stumbo, carried without dissent.

      D.    Consent Agenda

      Mr. Reed noted the following items on the consent agenda and asked if anyone
wished to have a consent item removed for a particular consideration. He then asked for
a motion of approval:

             Approval of Minutes - August 13, 2002
             PR 2 Personnel Actions


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      Ms. Smith Edge moved approval. Her motion, seconded by Mr. Williams, passed
without dissent. (See PR 2 at the end of the Minutes.)

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

      President Todd called attention to PR 1 and recommended that the Board read
every item in the report because there is really "good stuff' that happens at the institution
on a monthly basis. He then called particular attention to the following items:

       1.    There is a record number of freshmen at UK. President Todd mentioned a
             presentation given by Dr. Phil Kramer, Don Witt and his team that
             provided a complete breakdown of all UK's admissions showing the
             distribution of all the students and giving comparisons between the
             students this year versus the students last year. He noted that the total
             enrollment is also a record 34,182 students which includes 8,291 students
             from Lexington Community College (LCC).

      2.    UK's supercomputer now ranks eighth among American universities.
             President Todd said that UK will continue to do even more research with
             the supercomputer, and that will help as UK moves toward its goals.

      3.    The Ralph Anderson building was dedicated earlier in the month.
             President Todd encouraged the Board members to visit the new facility if
             they had not already done so. It is a tremendous, very impressive,

      4.    UK's research, as it rises, is contributing $432 million to Kentucky's
             economy according to an economic study that is done each year.
             President Todd said the study is impressive, and it shows the impact UK
             has not only in the Lexington area but the State of Kentucky.

      5.    UK and U of L researchers collaborate on new Alzheimer's disease study.
             This is another example of the cooperation between UK and U of L. This
             shows the kind of things that happen when two large, great institutions
             work together.

      6.    Newtown Pike is going to be extended starting at Newtown Pike, coming
             past Main Street, and then coming out at Scott Street close to UK's main
             entrance. It is going to affect the University's long-range planning
             because there will be a lot of good road space to add facilities that will
             give UK a new look. President Todd said that it will help people find UK
             much more readily and what is more important is that it is a cooperative
             effort. He mentioned a press conference that included Mayor Pam Miller
             and himself and noted that there were federal and state officials also
             present. He reported that he and Mayor Miller had participated in the


             neighborhood organization meetings. They are going to take care of the
             neighborhood, and it should be a model. The federal highway
             administration is very supportive of this project because they think it is an
             ideal model for how you can actually reconstruct the neighborhood as well
             as build the road. He noted that all the funding was not tied down.

      7.    Two co-chairs have been appointed to assist the provost search committee.
             They are Douglas Boyd and Loys Mather. President Todd noted the
             membership list in the report. He reported that the Committee is actively
             at work.

      F.    Update on Strategic Planning Process

      President Todd reported that the administration is beginning to kick off the
strategic planning process. The Board will have more discussion about the plan and the
process at the Board retreat. He said that he hopes to have the plan in place by July 1,
2003. The Top 20 Report and the Future's Task Force report will be used as a foundation
for the plan. Some of UK's most outstanding people on campus have been involved in
those two reports. He said that the plan will be shorter than previously done for the
University. His goal is to have it no more than 10 pages because he wants it to be
succinct and something that everybody will read. Someone will be able to give an
"elevator speech" on what this university is challenged to accomplish. The plan will
have measurable goals.

      There will be three subcommittees to work on the plan, an academic
subcommittee, a health and medical affairs subcommittee, and a business practices
subcommittee. Rather than having a committee of about 50 people, it is best to give three
smaller committees a chance to focus on their areas of expertise. There will also be an
executive committee that will oversee the process, and that committee will be named
shortly. President Todd noted that he had talked to the Senate Council about the plan the
previous day.

      President Todd mentioned two books. One book is entitled Good to Great by Jim
Collins about how great companies become great. The other book is entitled Contrarian
and Leadership by Steve Samples, the President of the University of Southern California
(USC). USC was the Time Magazine University of the Year a few years ago. He told
the Board that Dr. Samples became the president of USC ten years ago and was told by
his Board members that the only way USC would be great is to get out of Los Angeles
(LA) because LA was a problem area and was holding USC back. He took the position
to change LA. A lot of the reason USC was selected by Time Magazine as the number
one university was they made big differences using a lot of public service, getting their
students involved, and getting their faculty involved.

      President Todd said that when he was flying down to be interviewed, he was
thinking about his higher purpose and vision. He said Kentucky should be a laboratory
for our best minds. The University should change the State of Kentucky. He then saw


6 -

that particular Times Magazine on the stands. Dr. Samples has now written this book,
and he has a copy of the book. Those are two books that he is going to have for the
strategic planning people to review. The books have some good principles in them, and
he thinks it is something to have fun with and move forward.

      G.    Proposed Amendment to the Governing Regulations (PR 3)

      President Todd said that PR 3 is a proposal to amend the Governing Regulations.
The recommendation is that the amendment will make the chair of the Board of Trustees
one of the five members on the Executive Committee. He noted this was discussed at the
last meeting and asked for approval to amend the Governing Regulations. Dr. Stumbo
moved approval. His motion, seconded by Ms. Smith Edge, carried without dissent.
(See PR 3 at the end of the Minutes.)

      H.    Acceptance of Audit Report for the University of Kentucky for 2001-02
(FCR 1)

      Mr. Reed called upon Mr. Chellgren, Chairman of the Finance Committee, for the
Finance Committee report.

      Mr. Chellgren said he was pleased and honored to address Mr. Reed as "Mr.
Chairman." He reported that the Audit Subcommittee met prior to the Finance
Committee. He noted that almost every Board member attended the Finance Committee
and thanked them for attending.

      Mr. Chellgren reported that there was one particularly important item on the
agenda, and that was the acceptance of the Consolidated Financial Statements for the year
that ended June 30, 2002. It was pretty complex and quite different. This was the first
time the University's financial statements were presented under the application of what is
called GASB 35, Government Accounting Standards Board Number 35. This requires
organizations like the University to begin to report accumulated depreciation on fixed

      Last year, the University's financial statements were prepared on a Fund
Accounting basis. There were total fund balances of about $2.153 billion dollars. There
were lots of pluses and minuses, but the biggest minus was almost a $700 million charge
for accumulated depreciation.

      Mr. Chellgren reported that the last fiscal year began with net assets of some
$1.45 billion; therefore, the Board needs to think about that as the net worth of the
University after the adoption of GASB 35. Basically, under the new accounting
standards there are three summary financial statements. They are essentially 1)
Statement of Net Assets (Balance Sheet), 2) Statement of Revenues, Expenses, and
Changes in Net Assets (Operating Statement), and 3) Statement of Cash Flow (sources
and uses of cash). The Consolidated Financial Statements include some 10 reporting



entities of the University. He noted that during the year there was an increase in total net
assets of some $92 million.

       He referred to page 5 in the financial statements and called attention to the
operating loss of the University of some $333,000,000, a third of a billion dollars. He
said that this is not a reflection of President Todd's leadership. Under most normal
definitions, the University did not have an operating loss of that nature. He pointed out
that further down the page you can see that particular caption excludes one very dramatic
item which is state appropriations, some $303,000,000 plus a number of other very large
items such as, capital grants and gifts, gifts and grants, endowment income, investment
income and the like which total a non-operating revenue of over $400,000,000. This
reconciles back to the change in net assets for the whole University of some $92,000,000
that he previously made reference to. He said essentially all universities and institutions
similar to the University of Kentucky will be showing a deficit at that particular line item.

       Mr. Chellgren reported that the University received the opinion of its independent
auditors, Deloitte and Touche. Jim Carpenter, the engagement partner from Deloitte and
Touche, had an extensive discussion at the Audit Committee meeting and also answered a
number of questions at the Finance Committee meeting. Importantly for the Board's
point of view is that this is what is called a clean, unqualified opinion with no
qualifications. That is a critical element.

       He noted that the opinion was longer this year. It consists of six paragraphs
versus four paragraphs last year. The most important paragraph in the opinion is
paragraph 3 that states that the Consolidated Financial Statements present fairly in all
material respects, the financial position of the University. Paragraph 5 talks about the
application of the new GASB regulations and paragraph 6 also talks about another new
statement that is called Management's Discussion and Analysis.

       In conclusion, there are two letter reports by Deloitte and Touche. The first one
the auditor's letter report on internal control and compliance. Although it is not a formal
opinion by Deloitte and Touche, it indicates they saw no areas where they felt UK was
not in compliance with laws, regulation, contracts, grants and the like. They also
indicated they did not see any areas in any subjects in the area of internal control that
need to be brought to the Audit Committee, the Finance Committee or the Board's

       The third handout distribution from the auditors, which describes the conduct of
the audit, is called a SAS 61 report. This report talks about significant accounting
policies, significant management adjustments, judgments, accounting estimates, were
there any disagreements with management, were there various difficulties encountered in
performing the audit, etc. Again, these two items are clean and without any items that
need to be brought to the Board's attention. He mentioned for the record that the Audit
Committee met privately with the engagement partner and nothing needs to be brought to
the Board's attention. He moved the acceptance of the Consolidated Financial
Statements of the University for the fiscal year just ended June 30, 2002 and the adoption


8 -

of FCR 1. Dr. Stumbo seconded the motion, and it carried without dissent. (See FCR 1
at the end of the Minutes.)

      I.    Notice of Federal Interest Requirement (FCR 2)

      Mr. Chellgren said that FCR 2 is a new requirement whereby the Board
recommends that the Senior Vice President for Administration be authorized and directed
to execute and record with the local county Clerk's Office the attached notice of federal
interest to comply with federal grant conditions and requirements. He moved the
adoption of FCR 2. Mr. Shoop seconded the motion, and it carried without dissent. (See
FCR 2 at the end of the Minutes.)

      J.    Authorization to Sell 5.09 Acres, Leesburg Road, Scott County, Kentucky
(FCR 3)

      Mr. Chellgren said that FCR 3 involves a very small land sell, a little over 5 acres,
in Scott County, Kentucky. The net proceeds for the University will be approximately
$39,000. He moved the approval of the authorization to sell land. The motion, seconded
by Mr. Williams, carried without dissent. (See FCR 3 at the end of the Minutes.)

      K.    Gifts and Reclassification of a Gift (FCR 4 through 8)

      Mr. Chellgren said FCR 4 through 8 inclusively are some gifts and a
reclassification of a gift.

      FCR 4 - acceptance of a gift of $291,000 from Philip Morris, Inc. to the College
      of Agriculture to support undergraduate scholarships, graduate scholarships, a
      leadership development program and tobacco research. Mr. Chellgren noted that
      this is another example of the generous nature of the support of Philip Morris to
      this university.

      FCR 5 - acceptance of a gift from one of the university's greatest long-time
      supporters, Bill Gatton. Mr. Gatton and his wife, Leigh, are gifting a very
      valuable piece of property, almost 3 acres, in downtown Lexington. It is the
      former site of the L. R. Cooke Chevrolet Company with an estimated value of
      $2,050,000. It is anticipated that this property will be the site of a new Business
      and Economics building that will include an executive MBA program. Mr.
      Chellgren said that there was a discussion in the Finance Committee about the
      perspective development of this program, and it sounds very exciting.

      FCR 6 - acceptance of a very generous pledge of some $750,000 by the Delta
      Dental Plan of Kentucky to endow the Delta Dental Plan of Kentucky Clinical
      Research Center Endowment in the College of Dentistry. Mr. Chellgren
      reminded the Board that it was indicated at the last meeting that essentially the
      Research Challenge Trust Fund (RCTF) has now been exhausted with funds that


9 -

      have been earmarked. This pledge was one of those that had been earmarked
      earlier. The pledge will be paid in full before the November 1St of this year.

      FCR 7 - acceptance of a wonderful series of gifts and pledges totaling almost
      $160,000 for the Gloria Singletary Professorship/Chair in Women's Health at the
      Chandler Medical Center. This will bring the total gifts and pledges to
      approximately $500,000. It then will be eligible for match from the RCTF and
      endow a chair for the million dollars.

      FCR 8 - approval of a reclassification of some money that has been in a quasi-
      endowment to provide undergraduate scholarships and general support of the
      programs of the College of Arts and Sciences. This reclassifies it to a permanent

      Mr. Chellgren moved the acceptance of FCR 4 through 8, inclusively. Ms. Sims
seconded the motion, and it passed without dissent. (See FCR 4, 5, 6, 7, and 8 at the end
of the Minutes.)

      President Todd said that he would like to read a couple of statements because of
some of the significance of two particular gifts. He read the following statement about C.
M. "Bill" Gatton and asked that it be put in the Minutes of the meeting:

      Carol Martin "Bill" Gatton as we know him is a 1954 graduate of Gatton College
      of Business and Economics and one of our largest contributors, having pledged
      $14 million to the College back in 1995. In 1996, the Gatton College of Business
      and Economics was named in his honor. He and his wife, Leigh, live in Bristol,
      Tennessee. He, as you know, is an entrepreneur who has been successful in
      automobile dealerships, banking and real estate. He was born and raised on a
      farm near Bremen, Kentucky in Muhlenberg County. You all know where that is.
      It's not far from my hometown. Elissa knows where that is. He attended
      Sacramento High School and graduated in 1950, valedictorian of his class.

      This gift adds to Mr. Gatton's already outstanding support of UK. The current
      plans call for the property to be used as the location for a 30,000-square-foot, two-
      story building that will house the Professional Development Center, which will
      offer Gatton College's Executive MBA program which we do not presently offer.
      Architects are scheduled to visit campus next week to present preliminary

      President Todd said that the generosity of Bill and Leigh Gatton helps the Gatton
College move forward with its plan to have a new business campus. This is really the fist
step, and the second thing that gives UK another footprint toward downtown. He
mentioned that UK is occupying the KU building. There will be a business building
between campus and mid-way down town where people come in, take business courses
and do their executive MBA program. President Todd said that he certainly appreciated
the Gatton's for having made this gift to the University.


10 -

      President Todd read the following statement about the Gloria Singletary
Professorship/Chair in Women's Health and asked that it be put in the Minutes of the

      These generous gifts and pledges establish this first endowment for the University
      of Kentucky Women's Health Center. This endowment is appropriately named
      for Gloria Singletary, formerly a First Lady of UK and a champion of women's
      health issues.

      Otis and Gloria Singletary were key in moving the vision of the University
      forward and will always be a vital part of the campus and this community. Mrs.
      Singletary's devotion to her community reflects her unrelenting concern and
      passion for the health care and the needs of Kentucky's women.

      In fact, Mrs. Singletary made the cornerstone donation that began the fund-raising
      efforts for the UK Women's Health Center in 2000. What began with that
      donation, has, in a way, come full circle today. This endowment ensures that
      there will always be a women's health research presence in the State of Kentucky
      and for that we are grateful to Gloria and Otis.

      L.    Investment Committee Report

      Mr. Reed called upon Mr. Wilcoxson, Chairperson of the Investment Committee,
for the Investment Committee report.

      Mr. Wilcoxson reported that the Investment Committee met at 9:00 a.m. that
morning. He said that the endowment investment assets had a market value on June 30,
2002 of 417.2M compared to June 30, 2001 of 439.8M which is a decrease of 22.6M in a
year. As of June 30, 2002 the portfolio was invested 54% in common stocks of U.S.
companies, 33% in U.S. fixed income securities, and 13% in international companies.

      Fiscal year 2002 was not a good year for endowment investments. Overall, the
endowment posted a negative total return of minus 6.2% for the year ending June 30,
2002 compared to a minus 6.6% for a blended market index of allocated assets which is
an out performance of 40 basis points over the capital market indexes. Preliminary data
from Ennis Knupp UK's Endowment Investment consultants, indicates that the UK
endowment exceeded the endowment median return of minus 6.8% by 60 basis points.
Even though our endowment posted a negative return for the year, it did quite well when
compared to the market indexes and the endowment median.

      Mr. Wilcoxson said that with the blessing and guidance of Clay Owen and his
staff and the consultants, the Investment Committee continues to make prudent decisions.
They review and change the asset allocations when needed. They rebalance accounts
when market changes cause asset allocations to be out of target range. He noted that
during this last year they increased the allocation to equity securities from 62.5% to 70%,


11 -

reducing the allocation to fixed income securities from 37 12 % to 30%. This change in
target asset allocation was made to generate an annual average total return of 6% over the
long-term to support the 50% spending pattern and the I% management fee. The spending
rule of 5% is in concert with the asset allocation and is intended to protect the value of
the endowment over time. Managers are reviewed on a quarterly basis and replaced
when deemed necessary. This has been done on occasions.

       Mr. Reed asked if there were any questions for Chairman Wilcoxson about the
Investment Committee report. There were no questions.

       M.    Robinson Forest Resolution

       Dr. Stumbo said on behalf of the east Kentucky leadership, he had been asked to
bring a resolution to the Board. UK owns the Robinson Forest, and this is extremely
important to those in the east. He said he would like to offer the following resolution that
he has discussed with President Todd, and he believes President Todd is in agreement
with the resolution:

       Whereas, the University of Kentucky has owned and operated the Robinson
       Forest as an outdoor classroom and research forest since 1923, and

       Whereas, the University of Kentucky Board of Trustees has not recently
       examined the use of the Robinson Forest for purposes of teaching, research and
       service, and

       Whereas, the main block of the Robinson Forest has been designated by the
       Kentucky Department of Natural Resources and Environmental Protection as
       Unsuitable for Mining, and

       Whereas, the Board of Trustees should establish a policy on how the Forest
       should be used in the future,

       Now, therefore, be it resolved, that the Board of Trustees direct the President of
       the University to conduct a thorough review of the Robinson Forest, including an
       assessment of the resources of the Forest, and prepare a comprehensive report for
       presentation to the Board.

       Be it further resolved, that the President shall have the authority to engage the
       services of engineers, geologists, and other professional consultants as are
       necessary to gather the information to prepare the report for the Board.

       President Todd suggested that the Board have a retreat at Robinson Forest
sometime because it is an interesting place and a nice place to stay. He told the Board
about the trip that he and Mr. Miles took to the Forest last fall. He mentioned the forestry
experiments and teaching opportunities that are ongoing and said he welcomed the
opportunity to bring information back to the Board.


- 12 -

      Mr. Shoop seconded the motion.

      Mr. Reed asked for any questions.

      Ms. May said the resolution talks