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and 88% of the expenditures had been committed. These figures are consistent with last
year. He reported that there was a 17% increase in contracts and grants, and the financial
condition is strong. He moved approval of FCR 1. Mr. Grayson seconded the motion,
and it passed. (See FCR 1 at the end of the Minutes.)

       Q.    Disposal of Surplus Property (FCR 2)

       Mr. Hardymon called attention to the report, noting the broader look at surplus
property by having categories listed and more detail on the attachment. Further, anything
with a value of less than $10,000 can be handled without approval by the Board and by
the process of bids and auctions. This approval is now for the 1997-98 disposal of
surplus property. He moved approval of FCR 2. Mr. Chellgren seconded the motion,
and it passed. (See FCR 2 at the end of the Minutes.)

       R.    Designation of Depository Bank (FCR 3)

       Mr. Hardymon said FCR 3 is a recommendation that the Board approve Fifth
Third Bank, Cynthiana, Kentucky, to serve as a depository bank for the University of
Kentucky and its affiliated corporations. He reviewed the process and said that Fifth
Third Bank was selected on the basis of lowest cost to the University. He noted that
Fifth Third Bank in Cynthiana is new, and they are handling the rather small banking
business for the Maysville Community College. He moved approval of FCR 3. His
motion, seconded by Mr. Grayson carried. (See FCR 3 at the end of the Minutes.)

       S.    Report of Leases (FCR 4)

       Mr. Hardymon reviewed the lease agreements in FCR 4 and moved that the Board
accept the President's report of the lease agreements not exceeding $30,000 in value. He
noted that these lease agreements were all renewals. His motion, seconded by Mrs.
Weinberg, passed. (See FCR 4 at the end of the Minutes.)

      T.    Approval of Leases (FCR 5)

      Mr. Hardymon reviewed the lease agreements in FCR 5 and moved that the Board
authorize the Vice President for Fiscal Affairs to negotiate and execute the lease
agreements in excess of $30,000. Mr. Shoop seconded the motion, and it carried. (See
FCR 5 at the end of the Minutes.)

      U.    Purchase of Property (FCR 6)

      Mr. Hardymon moved that the Board approve FCR 6 which called for the
purchase of property at 628-632 Lawrence Street. He noted that this property is located
in the University of Kentucky acquisition area as approved by the Board in the 1996-98