xt7kpr7mqz79 https://exploreuk.uky.edu/dips/xt7kpr7mqz79/data/mets.xml Lexington, Kentucky University of Kentucky 2013 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, 2013-06-11 text Minutes of the University of Kentucky Board of Trustees, 2013-06-11 2013 2014 true xt7kpr7mqz79 section xt7kpr7mqz79 Minutes of the Meeting of the Board of Trustees
University of Kentucky
Tuesday, June 11, 2013
The Board of Trustees of the University of Kentucky met at 1:00 p.m. on Tuesday, June
11, 2013 in the Board Room on the 18th floor of Patterson Office Tower.
A.

Meeting Opened

Dr. E. Britt Brockman, chair of the Board of Trustees, called the meeting to order at 1:00
p.m. Chair Brockman asked Trustee Sheila Brothers, secretary of the Board, to call the roll.
B.

Roll Call

The following members of the Board of Trustees answered the call of the roll: C.B.
Akins, Sr., Stephen Bilas, William C. Britton, E. Britt Brockman, Sheila Brothers, Mark P.
Bryant, Jo Hern Curris, Williams S. Farish, Jr., Oliver Keith Gannon, Carol Martin (Bill) Gatton,
Kelly Sullivan Holland, Pamela T. May, Billy Joe Miles, Terry Mobley, Charles Sachatello, C.
Frank Shoop, James W. Stuckert, John Wilson, and Barbara Young. Irina Voro was absent from
the meeting. Secretary Brothers announced that a quorum was present.
The University administration was represented by President Eli Capilouto, Interim
Provost Tim Tracy, Executive Vice President for Health Affairs Michael Karpf, Executive Vice
President for Finance and Administration Eric Monday, and General Counsel William Thro.
The University faculty was represented by Chair of the University Senate Council Lee
Blonder, and the University staff was represented by Chair of the Staff Senate Mike Adams.
Guests and members of the news media were also in attendance.
C.

Consent Items

Chair Brockman called attention to the three consent items on the agenda. The items
were the minutes for the Board of Trustees meeting on May 14, 2013; PR 2B, Personnel Actions;
and FCR 1, the Bill Gatton Foundation Gift and Pledge.
Trustee Stuckert moved approval of the consent items. Trustee Mobley seconded the
motion. Chair Brockman took the opportunity to thank Trustee Gatton for his generosity and
visionary support not only to the Gatton College of Business and Economics, but also to the
University of Kentucky. His lead gift toward the redesign and expansion of the Gatton College of
Business and Economics building will allow for enrollment growth of more than 50 percent.
With gifts and pledges exceeding $21 million, he remains UK’s premier benefactor and his
commitment to UK will “enable students to attain lives of meaning and purpose for generations
to come.”
Trustee Gatton received a standing ovation.

* Chair Brockman called for the vote and it passed with one abstention from Trustee
Gatton.
(See consent items listed below on the Board of Trustees website,
www.uky.edu/Trustees, under agenda.)
Minutes, May 14 2013
PR 2B Personnel Actions
FCR 1 The Bill Gatton Foundation Gift and Pledge
Chair Brockman reported that there had been one petition to address the Board of
Trustees since the last meeting. The petition was regarding food services. The petitioner has
agreed to defer his request until an action comes before the Board, most likely in the fall.
Chair Brockman congratulated Trustee Sheila Brothers, who was re-elected by the
University staff to a new three-year term as the staff representative to the Board of Trustees. He
also acknowledged Student Government President-Elect and student representative to the Board
of Trustees Roshan Palli.
Chair Brockman also recognized out-going Staff Senate Chair Mike Adams and thanked
him for his service.
D.
(ECR 1)

Proposed Revision to Governing Regulation: Executive Committee (GR II)

Chair Brockman stated that ECR 1 was the second reading of the proposed revision to
Governing Regulations II relating to the duties of the Board of Trustees Executive Committee.
The proposed addition addresses concerns regarding process, compliance, and accountability.
As background, the revision is intended to make explicit the Board's continuing interest in, and
attention to, the important issues of good governance, accountability, and ethics. The Executive
Committee will serve in an advisory capacity to the President on these issues, and the revised GR
will reads as follows:
The Executive Committee shall serve in an advisory capacity to the
President on regulations and policies, institutional compliance, and
accountability.
Chair Brockman opened the floor for discussion. Hearing none, Chair Brockman called
the question and it passed without dissent. (See ECR 1 on the Board of Trustees website,
www.uky.edu/Trustees, under agenda.)
E.

President’s Report (PR 1)

President Capilouto began by reporting that a new ranking places the Gatton College of
Business and Economics among the ten most popular business schools in the country. U.S.
News & World Report recently ranked Gatton College sixth among ten elite business schools in
the country, among the most popular. The ranking is based on the percentage of students

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* accepted to the Gatton College who ultimately enroll at the University of Kentucky, the so-called
“yield”. Gatton College’s yield rate of 74% places it among some top-tier company, such as
Harvard, Stanford, University of Wisconsin-Madison and The Ohio State University.
President Capilouto next reported on UK’s Oral History program. Dean of Libraries,
Terry Birdwhistell, assumed the director’s position in 1974 and has built the Louie B. Nunn
Center for Oral History into a national model. Deirdre Scaggs, Associate Dean for Special
Collections, and Doug Boyd, current Director of the Nunn Center and a national leader in the
field of oral history, shared with the Board some details about the initiative.
Associate Dean Scaggs discussed how UK Libraries is working innovatively with
technology to reach students in new and exciting ways. An example is the Special Collections
Learning Lab, which connects undergraduate students with primary sources through research
internships.
Another innovation is OHMS, the Oral History Metadata Synchronizer. Dr. Doug Boyd
began by explaining that UK, a leader in the collection of interviews, has over 20,000 hours of
interviews. These include not only interviews from famous politicians such as Martin Luther
King, Jr., Jacquelyn Kennedy Onassis, and Malcolm X, but also interviews from Kentucky
family farm owners, veterans from World War I & II, Vietnam, Iraq and Afghanistan, to coal
miners and coal mine owners. Recent projects include Kentucky Civil Rights Hall of Fame
inductees and a new partnership with the Bourbon industry and distilleries from around the
Commonwealth. The first version of OHMS software relied on transcripts to provide the
database for the searches. The OHMS project is an open-source software platform that created a
way to link a search hit (usually a word) to a moment in the tape. Because transcripts are costly,
a new version introduced this year creates a way to index an oral history interview without
transcribing it. What used to take months and years, now only takes a few hours. The project
has enlisted the aid of undergraduates, graduates and County Historical Society members to
create these indexes.
Dr. Boyd continued that the project was the beneficiary of a new grant to make the opensourcing free. This development has created public partnerships with the Smithsonian Institute,
Baylor University, and the University of Santa Cruz. All of these advancements makes oral
history efficient, easy to use, and fulfills the purpose of putting individual stories on historical
record. In response to a question from Trustee Curris regarding a patent or trademark, Dr. Boyd
said that the process was underway.
President Capilouto was pleased to recognize and introduce Dr. Kimberly Ward
Anderson, Gill Imminent Professor in the Department of Chemical and Materials Engineering
and Associate Dean for Administration and Academic Affairs in the College of Engineering.
The recipient of numerous honors and awards, Dr. Anderson recently received the Southeastern
Conference Achievement Award for her accomplishments as a teacher and researcher.
Dr. Anderson thanked President Capilouto for the opportunity to speak with the Board.
She shared that early in her career, it was unusual for women to be in engineering and even more
rare for a female engineer to be interested in cancer research. Twenty-six years ago, her decision

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* to come to UK was influenced by the three factors: a medical school on campus; a dynamic
climate of collaborative research; and the opportunity to interact with graduate and
undergraduate students.
Today, an example of the successful combination of these factors is the National Science
Foundation (NSF) Integrative Graduate Education Research Training (IGERT) grants and
Research Experience for Undergrad (REU) grants received by UK. Faculty and students from
Pharmacy, Chemistry, Engineering, and the Medical School are working together on research.
Dr. Anderson also praised the work of Dr. Mark Evers, Director of the Markey Cancer
Center, for promoting multidisciplinary research between the clinicians at Markey Center and in
the Colleges of Engineering, Pharmacy, and Arts and Sciences. Because of his efforts, UK was
awarded a National Institutes of Health (NIH) award from the National Cancer Institute, a
Cancer Nanotechnology Training Center. It is a Ph.D. training program where engineers are
working with clinicians at the Markey Center on medical type problems.
Dr. Anderson closed by thanking President Capilouto and the Board of Trustees for the
invitation and the opportunity to share her story.
President Capilouto ended his report by summarizing the many excellent efforts of the
past year, but also the commitments and challenges still ahead. He shared:
“Many of you know that on my late night walks on campus, I often visit the Kentucky
Wall in the Chandler Hospital. The video boards fade in and out and present a digital collage of
Kentucky. I mostly stare at the faces. Last night especially, these faces, their voices called out
to me. The faces are from all across Kentucky. They're black, white, brown, old, young, and
they're hard-worn. In their eyes I find hope and inspiration. Harry Truman said something like
this …that there were a few hundred people in the country that when they call their
representatives in Washington, they get a call back. Most likely they would get what they
needed. He said the rest, the voiceless, had to depend on the President of the United States to get
what they needed. Last night I felt the faces on the Kentucky Wall were calling to us to do more.
“You see, we still remain at the bottom of almost any category that looks at income,
education, or health outcomes. My predecessor, Lee Todd, had the courage to call them the
"Kentucky Uglies." But we're making progress in this country, not fast enough in Kentucky, but
we're making progress. I want to give you one example. Cancer death rates in this country have
been plummeting, plummeting. Fifty percent of the lives saved are attributed to prevention.
Fifty percent of the lives saved or lives extended are due to expert treatment. You learned
yesterday this can vary, depending on where you live, and you can find similar stories across any
health malady that you want to take a look at. The faces of the Kentucky Wall to me are the
faces of families that will escape the scourge of cancer. The promise of this University through
the ages is that we would work to ensure better and longer lives. Yesterday you learned we are.
“About a decade ago this Board and the administration made a commitment that
Kentuckians, no matter their walk of life, should rest assured that no matter the seriousness of
their illness or injury, they would be treated with the best of care in their own backyard. At the

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* Health Care Committee yesterday, we learned that we kept our promise to them. Our mortality
rates, adjusted for case severity, ranked at the top. That's a good thing. The people whose lives
we save at rates better than the top medical centers in the country can't go to the Mayo Clinic or
the Cleveland Clinic or to Vanderbilt. They depend on us. They have pride in what we do.
They are coming to us in increasing numbers, twice as many as just seven or eight years ago.
This Board and previous administrations self-financed the hospital. Not a dime came from the
state or the federal government. We only asked for permission to invest our money in what we
believed in, to take a risk to keep a promise.
“So today we are seeking to give Kentuckians something else to be proud of, a topranked public research university in their own backyard, where the best and brightest and those
who are willing to work to be the best and brightest can fulfill their dream. Two years ago the
Board again renewed its promise to Kentucky. We determined after months of dialogue with our
campus and those that we give voice to throughout Kentucky that we would focus on
undergraduate education and restoring our campus infrastructure. Last year together we did a
lot. We admitted the largest, most diverse, and best prepared class. We grew our Honors,
Singletary, and National Merit Awards. We launched the most ambitious public-private
partnership. We made a commitment to the lowest tuition increase in 15 years in the face of the
deepest one-year cut in our modern history, state cut. Again, we agreed to take a risk to selffinance, no money from outside this University, and to take full responsibility for that 275
million dollars for three projects: Athletics, which needs to remain vibrant to help us do all kinds
of things in building community and building a stronger academic component to our campus; the
Gatton College of Business, through the generosity of Mr. Gatton and many others, we're going
to get that project done and get it started soon; and then our Science Building. The research that
goes on in these buildings, these are investments in things yet imagined, things up till now only
the good Lord understands, the things that extend life, quality of life, create knowledge, and push
economic development. Cities and states that lead and do this, thrive. We build not for ourselves
but for our state's future. And we kept a promise to our most precious resource, our faculty and
staff, by making a commitment and delivering on a commitment for a competitive pay increase.
“So progress from here on out involves more tough choices, but we always have to
remember for whom we speak and who we stand. One of the other reasons I like to visit the
Kentucky Wall is we have words from our famous poet. It says, ‘Spring was in the wind. I
could feel it. I could taste it. I could see it, and it was beautiful to me.’”
F.

Appointment of Provost (PR 2A)

President Capilouto stated that PR 2A was the recommendation that the Board of
Trustees approve the appointment of Dr. Christine Riordan as Provost. Chair Brockman asked
for a motion for approval of PR 2A. Trustee Akins so moved and it was seconded by Trustee
Farish. Chair Brockman called the question and it passed without dissent. (See PR 2A on the
Board of Trustees website, www.uky.edu/Trustees, under agenda.)

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* G.

Proposed Revision to Governing Regulations: Employment of Relatives (Nepotism)

(PR 3)
President Capilouto stated that PR 3 was the second reading of the recommendation that
the Board of Trustees approve the revisions to the Governing Regulations I and X relating to the
employment of relatives and nepotism. The revisions were received for preliminary
consideration as PR 3 on May 14, 2013.
Chair Brockman asked for a motion for approval of PR 3. Trustee May so moved and it
was seconded by Trustee Britton. With no discussion, Chair Brockman called the question and
it passed without dissent. (See PR 3 on the Board of Trustees website, www.uky.edu/Trustees,
under agenda.)
H.
Proposed Revision to Governing Regulations: Ethical Principles and Code of
Conduct (PR 4)
President Capilouto stated that PR 4 was the second reading of the recommendation that
the Board of Trustees approve the revisions to GR I and the new GR XIV, “Ethical Principles
and Code of Conduct.” These revisions are intended to clarify and strengthen the University's
commitment to ethical behavior and were received for preliminary consideration as PR 4 on May
14, 2013.
Chair Brockman asked for a motion for approval of PR 4. Trustee Mobley so moved and
it was seconded by Trustee Holland. With no discussion, Chair Brockman called the question
and it passed without dissent. (See PR 4 on the Board of Trustees website,
www.uky.edu/Trustees, under agenda.)
I.

Proposed Revision to Governing Regulation: Staff Senate (PR 5)

President Capilouto stated PR 5 was the second reading of the recommendation that the
Board of Trustees approve the revisions of the Governing Regulation V related to the Staff
Senate. This revision would strengthen staff representation and participation and was received
for preliminary consideration as PR 5 on May 14, 2013.
Chair Brockman asked for a motion for approval of PR 5. Secretary Brothers so moved
and it was seconded by Trustee Bilas. With no discussion, Chair Brockman called the question
and the motion passed without dissent. (See PR 5 on the Board of Trustees website,
www.uky.edu/Trustees, under agenda.)
J.
Appointment to the Board of Directors: University of Kentucky Research
Foundation (PR 6)
President Capilouto stated that PR 6 was a recommendation that the Board of Trustees
approve the appointment of Karyn Esser, Department of Physiology, for a three-year term
beginning July 1, 2013 and ending June 30th, 2016, to the Board of Directors of the University
of Research Foundation (UKRF).

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* Chair Brockman asked for a motion for approval of PR 6. Trustee Miles so moved and it
was seconded by Trustee Curris. With no discussion, Chair Brockman called the question and it
passed without dissent. (See PR 6 on the Board of Trustees website, www.uky.edu/Trustees,
under agenda.)
K.

Academic Affairs Committee Report

Trustee O. Keith Gannon, chair of the Academic Affairs Committee, reported that the
Committee met that morning and had five business items. The Committee had a discussion with
Interim Provost Tim Tracy regarding the partnership with Coursera to provide pre-college
readiness courses in a Massive Open Online Course (MOOC) format. UK’s first offering would
be a chemistry course that would target motivated high school students who wish to prepare for
college chemistry as well as those preparing for advanced placement (AP) test. The target for
releasing the first module is January 2013.
L.

Candidate for Degree: May 2013 (AACR 1)

Trustee Gannon stated AACR 1 was related to a degree awarded posthumously to a
student who passed away during the spring semester. The individual had satisfactorily
completed all requirements for the degree for which the application was made and as approved
by the elected faculty of the University Senate. On behalf of the Academic Affairs Committee,
Trustee Gannon asked for approval of AACR 1 and it passed without dissent. (See AACR 1 on
the Board of Trustees website, www.uky.edu/Trustees, under agenda.)
M.

Candidates for Degrees: August 2013 (AACR 2)

Trustee Gannon stated that AACR 2 was a recommendation that the President be
authorized to confer degrees to those individuals who have satisfactorily completed requirements
for degrees by the close of the 2013 Summer Session, due to licensure and certification
verification timelines, as approved by the elected faculty of the University Senate. Trustee
Gannon, on behalf of the Academic Affairs Committee, asked approval of AACR 2 and it passed
without dissent. (See AACR 2 on the Board of Trustees website, www.uky.edu/Trustees, under
agenda.)
N.

Establishment of the Center for Research on Environmental Disease (AACR 3)

Trustee Gannon stated that AACR 3 was a recommendation that the Board approve the
establishment of the Center for Research on Environmental Disease, in the College of Medicine,
effective July 1, 2013. The Center will foster collaboration among clinical and basic scientists,
catalyze translational research, stimulate educational activities, enhance the competitiveness of
member investigators for extramural funding, and increase national recognition for the
University in the field of research on environmental disease. Trustee Gannon, on behalf of the
Academic Affairs Committee, asked approval of AACR 3 and it passed without dissent. (See
AACR 3 on the Board of Trustees website, www.uky.edu/Trustees, under agenda.)

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* O.
Change in Name and Organizational Structure of the Graduate Center for
Biomedical Engineering (AACR 4)
Trustee Gannon stated that AACR 4 was the recommendation that the Board of Trustees
approve the change in name and organizational structure from the Graduate Center for
Biomedical Engineering to the Department of Biomedical Engineering in the College of
Engineering, effective July 1, 2013. The “department” designation will eliminate a source of
confusion that the term “center” represents and will allow the unit to offer undergraduate as well
as graduate programs and degrees.
On behalf of the Academic Affairs Committee, Trustee Gannon asked approval of
AACR 4 and it passed without dissent. (See AACR 4 on the Board of Trustees website,
www.uky.edu/Trustees, under agenda.)
P.

Change in Name of an Educational Unit: College of Design (AACR 5)

Trustee Gannon stated that AACR 5 asks that the Board of Trustees approve the change
in name of the School of Interior Design to the School of Interiors: Planning / Strategy / Design
in the College of Design, effective July 1, 2013. This change will enhance the marketing
potential of the program; better communicate the focus and scope of the program; and increase
gender diversity within the program. On behalf of the Academic Affairs Committee, Trustee
Gannon asked approval of AACR 5 and it passed without dissent. (See AACR 5 on the Board of
Trustees website, www.uky.edu/Trustees, under agenda.)
Q.

University Athletics Committee

Trustee C.B. Akins, Sr., chair of the University Athletics Committee, reported that in its
meeting, the Committee considered the financial statements of the Department of Intercollegiate
Athletics. Angie Martin, Treasurer, reviewed the interim financial statements of the department
for the nine months ended March 31, 2013. The statements included the balance sheet, the
statement on revenue and expenses, and the change in net assets. The committee accepted the
quarterly financial statements as presented. The committee reviewed FCR 3, 2012-13 Budget
Revision, which had two items regarding Intercollegiate Athletics. The University Athletics
Committee voted to recommend to the Finance Committee approval of these revisions.
Melissa Gleason, Associate Athletics Director, presented a detailed FY 2013-14
operating budget for the Department of Intercollegiate Athletics. This budget is included in the
University-wide budget presented in FCR 10. The Committee accepted the FY 2013-14
Operating Budget for Intercollegiate Athletics as presented.
Athletics Director Mitch Barnhart gave a wrap-up of spring sports items. He also
announced the hiring of Rachel Newman Baker, who currently serves as the NCAA Managing
Director of Enforcement for the Development and Investigations Section, as the new Senior
Associate Athletics Director for Compliance. She will officially begin her duties on July 8th,
2013. A native of Berea, Kentucky, Ms. Newman Baker will report to Sandy Bell, Executive

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* Associate Athletics Director for Student Services, and serve as a liaison between the Athletics
Compliance Office and UK Football and Marketing Offices. She will supervise the Assistant
Athletics Director for Academics and Assistant Athletics Director for Compliance as direct
reports.
R.

Audit Subcommittee Report

Trustee Bill Britton, chair of the Audit Subcommittee, stated that the Committee had met
that morning and continued the discussion with Executive Vice President of Finance and
Administration Eric Monday regarding provisions in the Audit Subcommittee’s charter.
Additionally, the 2014 work plan was reviewed and approved.
S.

Financial Committee Report

Trustee Stuckert reviewed the consent item pledge (FCR 1, The Bill Gatton Foundation
Gift and Pledge) and on behalf of the Finance Committee, thanked Trustee Bill Gatton, for his
loyalty and steadfastness to the Gatton College and the University of Kentucky.
T.
Acceptance of Interim Financial Report for the University of Kentucky for the
Nine Months ended March 31, 2013 (FCR 2)
Trustee Stuckert stated that FCR 2 recommends that the Board of Trustees accept the
interim financial report for the University of Kentucky for the nine months ended March 31,
2013. On behalf of the Finance Committee, Trustee Stuckert moved approval of FCR 2 and it
passed without dissent. (See FCR 2 on the Board of Trustees website, www.uky.edu/Trustees,
under agenda.)
U.

2012-13 Budget Revisions (FCR 3)

Trustee Stuckert stated that FCR 3 recommends that the Board of Trustees authorize and
approved budget revisions to the FY 2012-13 budget. The budget revision will increase the
University of Kentucky’s total budget by $17.7 million or by 0.7%. Increased tuition revenue
funds will be used to acquire the Lexington Theological Seminary property, which was approved
by the Board at the May 14, 2013 meeting.
Other budget revisions involve Intercollegiate Athletics and the support of contractual
agreements and the Soccer Complex renovation.
The revisions were discussed and
recommended for approval by the University Athletics Committee.
On behalf of the Finance Committee, Trustee Stuckert moved approval of FCR 3 and it
passed without dissent. (See FCR 3 on the Board of Trustees website, www.uky.edu/Trustees,
under agenda.)
V.

Construct UK/Nicholasville Road Flood Mitigation (FCR 4)

Trustee Stuckert stated that FCR 4 requested approval for a scope increase for the

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* Construct UK/Nicholasville Road Flood Mitigation project. In December 2011, the Board
approved this project to construct improvements for storm mitigation for roadway and pedestrian
safety. The appraised value of the land (UK’s in-kind value of the land designated for the
project) was more than originally estimated, thus the Federal Emergency Management Agency
(FEMA), will contribute additional funds to this project.
On behalf of the Finance Committee, Trustee Stuckert moved approval of FCR 4 and it
passed without dissent. (See FCR 4 on the Board of Trustees website, www.uky.edu/Trustees,
under agenda.)
W.
Easement Authorization for Columbia Gas of Kentucky for a Gas Transmission
Line (C.O. Little Research Center, Woodford County, Kentucky) (FCR 5)
Trustee Stuckert stated that FCR 5 requests that the Board of Trustees authorize the
Executive Vice President for Finance and Administration or his designee, to convey an easement
for a gas transmission line to Columbia Gas of Kentucky at the C. O. Little Research Center, in
Woodford County. On behalf of the Finance Committee, Trustee Stuckert moved adoption of
FCR 5 and it passed without dissent. (See FCR 5 on the Board of Trustees website,
www.uky.edu/Trustees, under agenda.)
X.
Repair/Upgrade/Improve Building Systems University of Kentucky Healthcare
(Good Samaritan Hospital Air Handling Units) (FCR 6)
Trustee Stuckert stated that FCR 6 is to repair/upgrade/improve two air handling units at
Good Samaritan Hospital. At 42 years of age, the units are in a state of disrepair and do not
provide sufficient air flow to meet current code requirements or provide comfort and air quality
to patients and employees.
On behalf of the Finance Committee, Trustee Stuckert moved adoption of FCR 6 and it
passed without dissent. (See FCR 6 on the Board of Trustees website, www.uky.edu/Trustees,
under agenda.)
Y.

Patient Care Facility Project (Fit-Up Eighth Floor and Central Pharmacy) (FCR 7)

Trustee Stuckert stated that FCR 7 recommends the approval of the initiation of fit-up of
space in the A.B. Chandler Hospital’s new Patient Care Facility, including the eighth floor for
inpatient services and space on the third floor for pharmacy services. On behalf of the Finance
Committee, Trustee Stuckert moved the adoption of FCR 7. Chair Brockman opened the floor
for discussion. Trustee Sachatello expressed concern regarding the current state of finances and
the uncertainty of medical insurance, due to the adoption of the Affordable Care Act and its
possible impact on revenues affecting the Hospital.
With no further discussion, Chair Brockman called the questions and it passed with 18
affirmative votes and one no vote from Trustee Sachatello. (See FCR 7 on the Board of Trustees
website, www.uky.edu/Trustees, under agenda.)

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* Z.

2014-2020 Capital Plan and 2014-16 Capital Request (FCR 8)

Trustee Stuckert stated that FCR 8 recommends the acceptance of the 2014-20 Capital
Plan, approval of the 2014-16 Capital Request and authorizes the President to adjust the Capital
Plan and Capital Request as needed, throughout the legislative process.
By statute, the Capital Plan includes capital construction, renovation, and information
technology projects estimated to cost $600,000 or more; equipment estimated to cost $200,000
or more; and annual leases valued at $200,000 or more. The six-year plan includes
approximately 300 capital projects, equipment and leases at an estimated cost of $5.6
billion. For the 2014-16 biennium, the University’s Capital Plan includes approximately 150
capital projects, equipment, and leases with an estimated cost of $2.4 billion dollars, using
various recommended fund sources such as state bonds, agency bonds (which are University
bonds), agency funds, University cash, and private funds. Pursuant to AR 8:2, the Board of
Trustees must approve the initiation of any capital project with a scope of greater than $600,000
by separate action.
On behalf of the Finance Committee, Trustee Stuckert moved adoption of FCR 8 and it
passed without dissent. (See FCR 8 on the Board of Trustees website, www.uky.edu/Trustees,
under agenda.)
AA.

Patent Assignment Report (FCR 9)

Trustee Stuckert stated that FCR 9 recommends the acceptance of the patent assignment
report, for the period January 1 through March 31, 2013. On behalf of the Finance Committee,
Trustee Stuckert moved adoption of FCR 9 and it passed without dissent. (See FCR 9 on the
Board of Trustees website, www.uky.edu/Trustees, under agenda.)
BB.

Fiscal Year 2013-2014 Operating and Capital Budget (FCR 10)

Trustee Stuckert stated that FCR 10 recommends the Board of Trustees:
1.

Approve the Fiscal Year 2013-2014 Operating and Capital Budget.

2.

Approve the appropriation and allocation of all fund balances for future
operations, to include amounts necessary to cover accounts receivable and
inventories that will represent assets on the audited balance sheet of the
University of Kentucky as of June 30, 2013. These audited balances may be
different than the estimates incorporated in the proposed budget. Since the
books of account for the University of Kentucky are maintained on a full
accrual basis, this action will provide the authorization to expend
accumulated fund balances as necessary to maintain a sound financial
position during Fiscal Year 2013-2014.

3.

Order that the operating budget be recorded as an integral part of the
University’s financial system with the necessary fiscal control being

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* exercised for the collection and appropriation of income and for the
expenditure of departmental appropriations in accordance with authorized
fiscal policies and procedures.
4.

Accept the operating budget as the basis of maximum expenditures for
Fiscal Year 2013-2014, subject to item number two above and other Board
approved revisions.

Trustee Stuckert reminded the Board that pursuant to Governing Regulation II.E.2(c), the
“Finance Committee shall oversee the budgets of the University by reviewing and
recommending to the Board of Trustees on the annual operating budgets.” The University's
recommended fiscal year 2013-14 consolidated operating budget totals $2.7 billion, an increase
of $71 million compared to the current fiscal year. This operating and capital budget is provided
in detail as a separately bound document and available at www.uky.edu/opbpa.
On behal