xt7m3775v12z https://nyx.uky.edu/dips/xt7m3775v12z/data/mets.xml Lexington, Kentucky University of Kentucky 2011 minutes  English University of Kentucky This digital resource may be freely searched and displayed.  Permission must be received for subsequent distribution in print or electronically.  Physical rights are retained by the owning repository.  Copyright is retained in accordance with U. S. copyright laws.  For information about permissions to reproduce or publish, contact the Special Collections Research Center. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 2011-10-25 text Minutes of the University of Kentucky Board of Trustees, 2011-10-25 2011 2012 true xt7m3775v12z section xt7m3775v12z Minutes of the Meeting ofthe Board of Trustees of the University of Kentucky, Tuesday,
October 25, 2011.
The Board of Trustees ofthe University of Kentucky met at 1:00 p.m. (Lexington time)
on Tuesday, October 25, 2011 in the Board Room on the 18m 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. and asked Ms. Sandy Bugie Patterson, secretary ofthe 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., William C. Britton, E. Britt Brockman (chair), Sheila Brothers, William S. Farish, Jr.
Micah Fielden, Oliver Keith Gannon, Carol Martin "Bill” Gatton, Billy Joe Miles, Terry Mobley,
Sandy Bugie Patterson, Joe Peek, Erwin Roberts, Charles R. Sachatello, C. Frank Shoop, James
W. Stuckert, Irina Voro, and Barbara Young. Jo Hem Curris and Pamela T. May were absent
from the meeting. Ms. Patterson announced that a quorum was present.
Ms. Patterson said that Ms. Curris asked that the following statement be read and
recorded in the Minutes: "Jo Curris reported that she is attending the 50m Anniversary and
Annual Conference of Presidents ofthe American Association of State Colleges and Universities
in Boston and will be unable to attend the University of Kentucky Board meeting on October 25,
201 1.”
The university administration was represented by President Eli Capilouto, Provost
Kumble Subbaswamy, Executive Vice President for Finance and Administration Frank Butler,
Executive Vice President for Health Affairs Michael Karpf; and General Counsel Barbara W.
Jones.
The university faculty was represented by Chair of the University Senate Council Hollie
Swanson, and the university staff was represented by Chair ofthe Staff Senate Mike Adams.
Members ofthe various news media were also in attendance.
C. Consent Items
Dr. Brockman called attention to the four consent items on the agenda: Minutes from
September 13, 2011 and Minutes from the Board retreat on October 1 and 2, 2011, PR 2 which
deals with Personnel Actions, and FCR 1 which is a gift and pledge from Larry H. Spears. Mr.
Stuckert moved approval ofthe consent items, and his motion was seconded by Ms. Brothers.

 The motion carried without dissent. (See consent items listed below on the Board of
Trustees website, www.uky.edu/ Trustees, under agenda.)
Minutes September 13, 20ll
Minutes Board Retreat, October l and 2, 20ll
PR 2 Personnel Actions
FCR l Larry H. Spears Gift and Pledge
D. Chair’s Report
Dr. Brockman began his report by leading off with petitions to the Board. He reported
that there were two petitions to address the Board, and they were received under the procedures
in Goveming Regulations Part II.
The first petition was found to be relevant. The petitioner was heard at the Finance
Committee meeting. The subject matter ofthe petition was a proposal to the Board of Trustees
to consider a clean energy feasibility study on campus and possible renovations to replace and
retire the coal fire power plants on campus.
The other petition was not found to be relevant. The petition contained a series of
questions conceming UK priorities, athletics vs. education, and the condition ofthe classroom
buildings. The petitioner was referred to the administration at the University.
Dr. Brockman then commented about The Investiture of President Eli Capilouto. He
thanked John Herbst, who was in charge of The Investiture, for the nice ceremony. He
recognized Mr. Herbst in the audience and asked him to stand and be recognized. Mr. Herbst
received a round of applause from the Board.
E. Special Committee for Athletics Report
Dr. Brockman thanked Mr. Mobley, who chaired the Special Committee for Athletics,
and members of the Committee for their efforts and work collecting infonnation. He asked Mr.
Mobley to give the Committee’s report.
Before beginning the report, Mr. Mobley made it perfectly clear that the charge to the
Committee had absolutely nothing to do with past management or current management of the
Athletics Department. Mr. Bamhart and his staff have done a wonderful job over the years, and
the Committee’s charge was a best practice going forward. Following the report, he thinks the
Board will believe that the Committee was successful in carrying out its charge. He then gave
his report.
Mr. Mobley reported that the Committee consists of five members ofthe Board of
Trustees, two fonner chairs ofthe Board, a dean, a faculty member that served on the Athletic
Board, and the NCAA faculty representative.
-2-

 There were two different issues that the Committee wanted to address. Deputy Director
of Athletics Mark Coyle was nice enough to do some research for the Committee in regard to
other Southeastem Conference (SEC) schools, Atlantic Coast Conference (ACC), and UK’s
benchmarks involving how they were organized as far as the athletic relationship to the
university and to their boards. The result ofthe research showed that organizations are what they
are because of the history ofthe particular institution. Organizations have always been that way,
and they are a little hesitant to change after many years as was the case in UK’s situation.
There was a lot of good infonnation showing some institutions went from having outside
foundations to different types of groups, therefore, the Committee got a sense that the
infonnation was good. The Committee was interested in going forward and deciding what
would serve the University, the Board of Trustees, and the Athletics Department best as far as a
practice and organizational structure for the future. With that in mind, the Committee was 100
percent in agreement that the current organizational and committee structure ofthe Board of
Trustees and the University has functioned well with the structure of the committees: Academic
Affairs, Student Affairs, Investment, Finance, and University Health Care. As visible as athletics
is at the University, it was obvious that there was not an Athletics Committee. Athletics is
viewed by some Board members and many constituents as the front porch to the University. For
a lot of different reasons, the University would be best served by having an Athletics Committee
as a part ofthe Board of Trustees structure going forward. The Committee used the University
Health Care Committee as a parallel measure because it also reaches out and has community
members as a part of the committee under the Board of Trustees.
There would be five members ofthe Board of Trustees on the Board committee and three
community members. The only difference in the University Health Care Committee and the
Athletics Committee will be that the President will appoint the Board of Trustees members to the
Athletics Committee. That is because of a NCAA regulation as it relates to institutional control
which the University must adhere to and be in compliance. This will be the recommendation in
the Goveming Regulation that will be presented to the Board later in the meeting.
The recommendation brought up the question of what to do with the current Athletic
Association Board of Directors that is an affiliated corporation ofthe University. When you take
the responsibility that it has had and move it to a committee under the Board, there is very little
from a responsibility point of view that the Board would be doing. Basically, the Committee is
recommending that the Athletic Association Board of Directors be dissolved. This is a legal
process that will take some time to do. The Committee recognized that there is power in having
faculty, students, and community individuals involved, therefore, the Athletic Association Board
of Directors could be an Athletic Advisory Committee just to continue getting input from the
different constituencies that make up the fanbase of UK athletics.
Either President Capilouto or someone has talked to members ofthe Athletic Board, and
they understand what is going on with the efforts ofthe Committee. The Committee tried to not
have any secrets and to be as transparent as possible. The Committee feels very comfortable
with the recommendation and is supportive of it. It looks right. It feels right. And, it is the right
thing for the Board of Trustees to do as the University moves into the future.
-3-

 On behalf ofthe Special Committee on Athletics, Mr. Mobley recommended the
acceptance of his report to the Board.
Dr. Brockman asked for any discussion relative to the motion. He called for a vote to
accept the report, and it passed without dissent.
F. Proposed Revision to Goveming Regulation: University Athletics Committee
Dr. Brockman said that CR l is a proposed revision to the Goveming Regulation (GR),
Part II, regarding the creation of the University Athletics Committee. The recommendation is
that the Board of Trustees receive the attached revision of Goveming Regulation II relating to
Board committees for preliminary consideration. This will be the first reading. The second and
final reading will occur at the next Board meeting in December.
The proposed revision of GR, Part II, establishes a University Athletics Committee
within the committee structure ofthe Board of Trustees and defines the Committee’s
responsibilities. The revision also includes housekeeping and fonnatting changes.
As background, in March 20l l, the Chair of the Board of Trustees appointed a Special
Committee of the Board to review UK Athletics with benchmark institutions and current best
practices. The Committee met on October 20, 20ll and recommended that the Board of
Trustees create a new Athletics Committee within the committee structure of the Board and
include community advisory members. The Committee further recommended that in order to
remain compliant with NCAA rules on institutional control over intercollegiate athletics, the
committee membership and its chair should be appointed by the President in consultation with
the Chair ofthe Board of Trustees. All committee members, including community advisory
members, will be appointed by the President of the University.
The Committee’s responsibilities will include: providing counsel to the President
conceming matters or activities ofthe Athletics Department, reviewing the Athletics
Department’s annual budget and audit reports, mzq or expenditures and acquisitions, and
construction of facilities if the cost is expected to exceed $400,000, and, providing needed
infonnation to the Board of Trustees. The Committee will be composed of five Board of
Trustees members and up to three non-voting community members.
Dr. Peek asked for clarification on the ruling regarding tenns. It was clarified that the
initial tenns would be staggered and then all tenns would be for three years.
Mr. Shoop moved approval of CR l for the first reading. Dr. Akins seconded the motion,
and it passed without dissent. (See CR l on the Board of Trustees website,
www.uky.edu/Trustees, under agenda.)
-4-

 G. President’s Report
President Capilouto added his thanks to John Herbst and the really good team of people
that made The Investiture a delightful event for him and he hoped for the University as well.
Before beginning his PR 1 report, he said he wanted to take a moment to highlight an
important item noted in PR 2. Dr. Lois Chan, a professor of Library and Infonnation Science, is
retiring after more than 40 years of service. She has dedicated her career to making infonnation
more accessible and easier to find. Some may know her in a different role as she has served as
the University Marshal since 1989 and as a member of the President’s Commission on Diversity
since its inception in 2001.
Dr. Chan started working at the University of Kentucky Libraries in 1966 as a serials
cataloger. In 1970, she joined the faculty of what was then the College of Library Science. She
has been a full professor in the School of Library and lnfonnation Science since 1980. She also
has a doctorate in comparative literature from UK.
She has authored several books on classification, including authoritative references on the
Dewey Decimal and Library of Congress systems, as well as dozens of articles and reports in
peer-reviewed academic joumals and professional publications. She also has given talks and
lectures literally all over the world.
In addition to her own research, she has contributed to collaborative ventures in the field
of library science, most notably the Online Computer Library Catalog‘s FAST project, which she
has served as a consultant since 1999.
Dr. Chan has been a recipient of numerous awards throughout her academic career. In
2006, she received the American Library Association‘s Beta Phi Mu Award for Distinguished
Service to Education in Librarianship. In 2001, she received the Excellence in Teaching Award
from the UK College of Communications and lnfonnation Studies.
President Capilouto said he wanted to acknowledge this tremendous faculty member who
has served with distinction in so many important roles at the University. He noted that Dr. Chan
could not attend the Board meeting but asked the Board to join him in recognizing her wonderful
service to the University. The Board applauded Dr. Chan for her many accomplishments.
President Capilouto reminded the Board that he highlighted some tremendous scholarly
and academic achievements made by faculty and students at the last Board meeting. He said that
he wanted to continue the process of spotlighting individuals at the University.
In the coming months and years, he plans to spend a great deal of time discussing the
bricks and mortar of our campus and the renewal in our infrastructure that must occur if we are
going to reach our promise. He does not want to ever lose sight of why we are here, and that is
the faculty, students, and staff whose achievements in the classroom, the research labs, and in
communities make this promise so real.
-5-

 President Capilouto announced that a clinician from the medical campus and a student
would be spotlighted at this Board meeting. Both are working across the Commonwealth to
make Kentucky a better place.
Dr. Michael R. Dobbs is an associate professor and vice chair of neurology. He also
directs the University of Kentucky’s comprehensive stroke program. He is a native son, bom in
Somerset, Kentucky. He graduated from UK with a degree in microbiology in 1994. He also
graduated from the UK College of Medicine in 1998. He is currently working on a master’s
degree from the Harvard School of Public Health in his spare time.
Dr. Dobbs’ research and scholarly interests include process improvement of health care
systems, stroke epidemiology and health care disparities, and clinical neurotoxicology. His
textbook Clinical Neur0t0xic0l0gy is becoming the standard for the field.
After completing his residency training in 2002 at UK, he spent a few years in the Air
Force and has been in the College of Medicine since 2006.
He considers his most important project at UK to be the fonnation and direction of a
statewide stroke care network. His wife, Betsy, graduated from UK in 2002 with her degree in
economics and will soon complete her master’s degree in library sciences.
President Capilouto then showed a video highlighting Dr. Dobbs’ work. Following the
video, he asked Dr. Dobbs to share some remarks about his work with the Board.
Dr. Dobbs said he was deeply honored that President Capilouto would find the simple
work that he does worthy of being featured at a Board of Trustees meeting. The stroke network
is really an important focus of what is being done in stroke care at UK. He said he was happy to
announce that a couple of UK’s stellar third-year medical students had approached him wanting
research projects. These students will be working with faculty to develop their scholarly skills
with network projects that will take them out into the state and increase their awareness of
disease around Kentucky, which is what he thinks the College of Medicine should be doing. He
told the Board that he would be happy to talk with them about his work. The Board gave Dr.
Dobbs a round of applause.
President Capilouto introduced Mary Burchett, who is currently a fourth-year medical
student in the UK College of Medicine. A native of Winchester, she graduated Phi Beta Kappa
from Centre College with a Bachelor of Science in Biochemistry and Molecular Biology.
As a medical student, she has been selected twice to participate in the Professional
Student Mentored Research Fellowship, and she also completed the Academic Health Careers
Fellowship. In addition, she was elected to the Alpha Omega Alpha honorary society during her
third year of medical school.
Mary has served on the LCME Steering Committee to prepare the College of Medicine
for re-accreditation, and she is an active member ofthe Implementation Committee, working to
-6-

 restructure the first and second year medical curriculum into an integrated, system-based
approach.
The future Dr. Burchett is currently a lecturer in two courses in the College of Medicine,
in which she teaches the methods and results from her research opportunities at UK.
Mary‘s research is more than a passing interest to her. When she was five, she was
diagnosed with Marfan‘s syndrome by doctors at Johns Hopkins Hospital. She was 6 feet tall at
age ll.
Because of her competitive nature, she was playing softball at Lexington Catholic High
School in seventh grade. However, her doctors warned her that this could seriously impact her
health in the future. So instead of sports, Mary put her energies into awareness about her
disorder. She spoke to over 120 medical professionals in Kentucky during her junior year of
high school for a Girl Scout project.
At the UK College of Medicine, she has worked on a Marfan‘s syndrome-based research
proj ect that was recently accepted for publication with Dr. Steven Estus, identifying altemative
splicing in fibrillin, which is the connective protein created by the FBNl gene that causes her
disorder. In fibrillin splicing, she was looking at how isofonns were expressed in different
organs and at different ages, which had never been done before.
Through her work she made a connection to the College of Medicine‘s Senior Associate
Dean for Research and Gill Foundation Chair in Preventive Cardiology Alan Daugherty. Dr.
Daugherty invited Mary to attend the Intemational Marfan‘s syndrome conference in Warrenton,
Virginia last year, and this was a dream come true for this enthusiastic student and researcher.
Most recently, as a research fellow in the lab, she received a McKusick Fellowship, the
largest research grant available from the National Marfan Foundation.
All ofthe positive developments in UK funding and faculty support have only served to
bolster her commitment to serve her fellow Kentuckians. Mary made the following statement:
"I would love to practice medicine in Kentucky. My goal is to provide patient care, to continue
my research, and to increase awareness through the experiences of my childhood. And, I
wouldn‘t have been able to unite all of those interests without the University of Kentucky."
President Capilouto invited Ms. Burchett to tell the Board more about her research.
Ms. Burchett thanked President Capilouto, Chair Brockrnan, and members of the Board
for inviting her to be with them. She said most ofthe accolades were things that she was driven
to do because she was looking for answers when she was a young child. She was trying to find a
doctor who would take care of her. She felt like she was very fortunate because at the age of five
she had a chest defonnity that needed operative repair. When her father knew that the repair of
the surgery required knowledge of whether she had Marfan’s syndrome or not, he continued to
press. He asked questions. He took her to multiple specialists. And finally at John Hopkins, she
received the diagnosis.
-7-

 She realized that she was fortunate because her father was a family physician. He was
willing to make extra effort that led to open heart surgery for her at the age of 20. She had her
aorta replaced so she did not have a life-threatening illness, which is what happens to many
people with Marfan’s syndrome.
When she came to UK, she did not know exactly what she wanted to do, but she knew
that she wanted to do something for the people in Kentucky who had Marfan’s syndrome. She
said that she had been given an abundance of opportunities at the University of Kentucky. With
the two years of professional mentored research, as well as an academic health career
scholarship, she has leamed all about academic medicine. She even had a mentor, Dr. Steven
Estus, who sat down with her and asked what she wanted to do. She infonned him that she had
studied biochemistry and molecular biology and Marfan’s syndrome at NIH and the clinical
aspects. She wanted to combine the two, and Dr. Estus suggested that they look at splicing. Dr.
Estus found the funding and the avenue of training for her so that she could do this and have an
article published.
Not only did Dr. Estus send her to conferences, he invited her cardiologist Dr. Harry
"Hal” Dietz from Johns Hopkins to give a lecture to the College of Medicine at UK. Dr. Dietz
gave a lecture to her professors, fellow classmates, and members of the Central Kentucky Marfan
Network Group, which is a local network group that she founded while she was in undergraduate
school.
Dr. Dietz stayed late to talk to the Kentuckians and the Marfan Network Group. One
family had driven from Pikeville, Kentucky. Their ll year old son had been diagnosed with
Marfan syndrome. He had lost his father to Marfan’s syndrome within the last year. Dr. Dietz
infonned the family that their son’s medicine should probably be doubled to prevent further
complications. This made her so grateful to the University of Kentucky because Dr. Daugherty
had expanded his research to try to find a cure for her disease and is trying to help Kentuckians
who already have the disease.
Ms. Burchett concluded her remarks by saying that she has received a world-class
education at UK, and she is very excited to continue this work as a physician in the future. The
Board gave Mary a round of applause.
President Capilouto thanked Dr. Dobbs and Ms. Burchett. He reiterated his remarks in
his investiture speech: "This place is truly remarkable.”
H. Naming of University Building (PR 3)
President Capilouto said that PR 3 is a recommendation that the Board of Trustees
approve renaming the North Hall residence building the "David P. Roselle Hall” in honor ofthe
University of Kentucky’s ninth president.
-3-

 The Advisory Committee on Naming University Property has reviewed the request and
found it to be in compliance with university policy AR 9:5. There were two letters of
recommendation for this action. He recommended approval ofthe name designation.
Dr. Roselle is the only past president, except for the immediate past president, who does
not have a building named in his honor. He served as the university’s ninth president from 1987
to December 1989. His announced goal was to achieve national recognition for the University
with respect to the quality of its graduates, its scholarship, and research. He left to become
president ofthe University of Delaware. He is now retired.
Mr. Mobley moved that PR 3 be approved. Mr. Stuckert seconded the motion, and it
carried without dissent. (See PR 3 on the Board of Trustees website, www.uky.edu/Trustees,
under agenda.)
1. Academic Affairs Committee Report
Dr. Gannon, chair of the Academic Affairs Committee, reported that the Academic
Affairs Committee met that moming. The meeting was in two phases: business and related
infonnational update.
Dr. Gannon reported that the Committee plans to have infonnational updates on four or
five topics this year. He has worked with Dr. Hollie Swanson, chair ofthe Senate Council, to put
together a list of appropriate topics for the Committee.
He said that Distance Learning and Technology in the Classroom is the first
infonnational topic. The Committee had a presentation by Dr. Jeannine Blackwell, Dean of the
Graduate School, Mr. Vince Kellen, Chief Infonnation Officer, and Dr. Mark Kombluh, Dean of
the College of Arts and Sciences. The presentation was very infonnative, and the Committee
had a very good discussion with a lot of interaction about this topic. The Committee leamed that
distance leaming is strongest in the Graduate School with about 13 percent of all courses being
taught by distance leaming while about 1 percent of undergraduate courses are utilized through
distance leaming.
J. Academic Degree Recommendation (AACR 1)
Dr. Gannon said that AACR 1 is the recommendation that the Board of Trustees approve
the establishment of a Master of Music with a major in Music Therapy degree in the College of
Fine Arts, effective in the spring 2012 semester. On behalf of Academic Affairs Committee, he
recommended the adoption of AACR 1. AACR 1 passed without dissent. (See AACR 1 on the
Board of Trustees website, www.uky.edu/ Trustees, under agenda.)
K. Finance Committee Report
Mr. Stuckert, chair ofthe Finance Committee, said that Mr. Patrick Johnson spoke on
behalf ofthe student group regarding consideration of a clean energy feasibility study on
-9-

 campus. This was a result of his petition to address the Board that Dr. Brockman mentioned at
the beginning ofthe meeting.
He said that ECR 1 was a consent item, which was approved at the beginning ofthe
meeting. In ECR 1, Mr. Lany Spears made a commitment of $1 million for an Endowed Chair
in Pharmacogenetics in the College of Pharmacy. The fact that there are a lot of individuals that
wish to donate to the University of Kentucky is beyond admirable. He thanked Vice President
for Development Mike Richey for his leadership and also expressed appreciation to Mr. Mobley
for his leadership in the past.
L. Request to Merge the Child Psychiatg Professorship with the Dr. Laurie L.
Humphries Endowed Chair in Child Psychiatg (ECR 2)
Mr. Stuckert said that ECR 2 is the request to merge the Child Psychiatry Professorship
with the Dr. Laurie L. Humphries Endowed Chair in Child Psychiatry. This is the merger of two
chairs, and the combined endowment would have a current market value of $1,614,423.80. On
behalf ofthe Finance Committee, he moved that ECR 2 be approved. Having no opposition,
ECR 2 passed without dissent. (See ECR 2 on the Board of Trustees website,
www.uky.edu/Trustees, under agenda.)
M. Renaming of Professorship in Otolagngology to the Richard C. Haydon III MD
Chair in Otolagngology ECR 3
Mr. Stuckert said that ECR 3 is a request to rename the Professorship in Otolaryngology
to the Richard C. Haydon III, MD Chair in Otolaryngology in the College of Medicine. Dr.
Haydon passed away in November 2010. He was an associate professor in the Division of
Otolaryngology from 1990 until his death. This recognizes his many years of service to the
department. On behalf of the Committee, Mr. Stuckert moved that ECR 3 be approved. ECR 3
passed without dissent. (See ECR 3 on the Board of Trustees website, www.uky.edu/Trustees,
under agenda.)
N. Renaming ofthe Spinal Cord and Brain Injury Chair No. 4 to the William R.
Markesbery MD Chair in Neurotrauma Research (ECR 4)
Mr. Stuckert said that ECR 4 is a recommendation that the Board approve a request to
rename the Spinal Cord and Brain Injury Chair No. 4 to the William R. Markesbery, MD Chair
in Neurotrauma Research. The board members of the Kentucky Spinal Cord and Head Injury
Research Trust wish to memorialize Dr. William R. Markesbery and celebrate his many
contributions to the advancement of research in spinal cord and brain injury through his longtime
service as a board member of the Kentucky Spinal Cord and Head Injury Research Trust. The
original gift for the chair was accepted by the Board of Trustees on March 2, 1999 and approved
for a Research Challenge Trust Eund match. On behalf of the Einance Committee, he
recommended that ECR 4 be adopted. ECR 4 was adopted without dissent. (See ECR 4 on the
Board of Trustees website, www.uky.edu/ Trustees, under agenda.)
-j0-

 O. Acceptance of Audit Report and the Report on Intemal Control for the University of
Kentucg for 2010-11 {FCR 5)
Mr. Stuckert said that FCR 5 is the acceptance ofthe Audit Report and the Report on
Intemal Control for the University of Kentucky for 2010-11. The Audit Subcommittee met that
moming and went through all the basics. On behalf ofthe Finance Committee, he moved
approval of FCR 5.
Ms. Brothers asked how many years had UK received a clean audit report, and Vice
President for Financial Operations Angie Martin replied that she was not aware of UK receiving
an unqualified opinion at any time. Mr. Stuckert concurred with Ms. Martin’s reply.
Hearing no opposition, FCR 5 passed without dissent. (See FCR 5 on the Board of
Trustees website, www.uky.edu/ Trustees, under agenda.)
P. Renovate Parking Structure #3 - Hospital
Mr. Stuckert said that FCR 6 involves the renovation of parking structure #3 at the
hospital. It will cost an expected $1.24 million, well within the $3.5 million authorized for the
"Renovate Parking Structure #3 — Hospital” that was authorized by the 2010 Legislature, and
will be funded by the UK HealthCare Enterprise. On behalf ofthe Finance Committee, he
recommended the adoption of FCR 6, and it passed without dissent. (See FCR 6 on the Board of
Trustees website, www.uky.edu/ Trustees, under agenda.)
Q. 2011-12 Budget Revisions {FCR 7)
Mr. Stuckert said that FCR 7 involves the 2011-12 budget revisions. The dollar amount
of that budget revision is $2.8 million, which is 1/ 10 of 1 percent of the approximate $2.7 billion.
Fundamentally, it was a shift of funds found in the College of Fine Arts and moved over to
another entity and another department. On behalf ofthe Finance Committee, he moved adoption
of FCR 7. FCR 7 passed without dissent. (See FCR 7 on the Board of Trustees website,
www.uky.edu/Trustees, under agenda.)
R. Approval of Leases )FCR 8)
Mr. Stuckert said that FCR 8 involves the approval of leases. The recommendation is
that the Executive Vice President for Finance and Administration be authorized to negotiate and
execute a lease renewal between the University of Kentucky (College of Arts and Sciences) and
FCPII of Fort Worth, Texas for some space located at 1020 Export Street in Lexington. The
lease is effective December 1, 2011 until June 30, 2015 for the use of approximately 25,009
square feet at $4.90 a square foot per annum. The annual cost ofthis is $122,544. It will
probably be a maximum of a two-year lease, and like all UK leases, it will have a 30-day exit
capability. On behalf ofthe Finance Committee, he moved the adoption of FCR 8. FCR 8
passed without dissent. (See FCR 8 on the Board of Trustees website, www.uky.edu/Trustees,
under agenda.)
-1]-

 S. Investment Committee Report
Mr. Gatton, chair of the Investment Committee, reported that the Committee met that
moming to review perfonnance results and conduct other business. The Endowment had an
estimated net market value of $796.2 million as of September 30, 2011. For the three months
ended September 30m, the Endowment pool lost an estimated 9.1 percent, underperfonning the
policy benchmark retum of -8.1 percent. The policy benchmark is a weighted average of various
market index retums that are representative of the University’s target asset allocation. The three-
month underperfonnance against the policy benchmark is due mainly to underperfonnance by
the fixed income managers.
The Investment Committee went into closed session to hear a presentation from the
finalist in the absolute retum manager search. Subsequently, the Committee authorized the
Executive Vice President for Finance and Administration, or his designee, to enter into contract
negotiations with the new manager. A new mana