xt7r7s7hrz7k https://exploreuk.uky.edu/dips/xt7r7s7hrz7k/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, 2013-05-14 text Minutes of the University of Kentucky Board of Trustees, 2013-05-14 2013 2014 true xt7r7s7hrz7k section xt7r7s7hrz7k Minutes of the Meeting of the Board of Trustees
University of Kentucky
Tuesday, May 14, 2013
The Board of Trustees of the University of Kentucky met at 1:00 p.m. (Lexington time)
on Tuesday, May 14, 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, Jo Hern
Curris, Williams S. Farish, Jr., Oliver Keith Gannon, Kelly Sullivan Holland, Billy Joe Miles,
Terry Mobley, Charles Sachatello, C. Frank Shoop, James W. Stuckert, Irina Voro, John Wilson,
and Barbara Young. Mark Bryant, Carol Martin (“Bill”) Gatton and Pamela T. May were 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, Vice President for Finance and Administration Eric Monday and Senior
Associate General Counsel T. Lynn Williamson.
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 four consent items on the agenda. The items were
the minutes for the Board of Trustees meeting on March 19, 2013; PR 2, Personnel Actions;
AACR 1, a candidate for degree for December 2012; and FCR 1, Bequests from the Estate of Dr.
E. Vernon Smith.
Trustee Stuckert moved approval of the consent items. Trustee Farish seconded the
motion and it passed without dissent. (See consent items listed below on the Board of Trustees
website, www.uky.edu/Trustees, under agenda.)
Minutes, March 19, 2013
PR 2 Personnel Actions
AACR 1 Candidate for Degree: December 2012
FCR 1 Bequests from the Estate of Dr. E. Vernon Smith.

* Chair Brockman reported that there had been no requests since the last meeting to speak
or appear before the Board.
Chair Brockman also congratulated Trustee John Wilson, who was elected by the
University faculty to a three-year term as a faculty trustee.
D.

Executive Committee Report

Chair Brockman reported that the Executive Committee met and approved the questions
for the presidential evaluation. The questions incorporated the suggestions from the University
Senate, Staff Senate, and Student Government Association.
E.
(ECR 1)

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

Chair Brockman reported that ECR 1 is the proposed revision to the Governing
Regulations relating to the duties of the Board of Trustees Executive Committee. The proposed
addition to the duties of the Executive Committee 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 II 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 with 16 affirmative votes and one abstention from Trustee Voro.
(See ECR 1 on the Board of Trustees website, www.uky.edu/Trustees, under agenda.)
F.

President’s Report (PR 1)

President Capilouto began his report by pointing out item seven in PR 1. He detailed that
over the last two years the Board and the University community have discussed at great length
the facility needs on campus. In a planned, innovative way the University has begun addressing
these challenges. An independent report shared with the Board previously concluded that the
University of Kentucky has considerable accessibility issues that must be confronted in order to
better serve UK students, employees, and the many visitors we have on campus. At the end of
March, President Capilouto joined a group of UK administrators, student leaders, faculty, staff,
and interested constituents on an accessibility walk to tour campus. It began at the front door of
the University, at the Visitor's Center, and surveyed facilities with the highest utilization across
the campus. Leading the tour was Disability Resource Center Director Jacob Karnes. His
expertise pointed out often what is unnoticed by many, the obstacles that confront the
permanently and temporarily disabled as they navigate our campus. The findings of the walk
and the research compiled will help direct infrastructure investments as UK continues to renew
its physical plant. What was discovered on the tour will be part of an action plan that will be

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* shared with the Board in terms of the progress that is made as we go forward.
President Capilouto pointed out AACR 2, the Candidates for Degree, May 2013. On
May 5, 2013, the spring semester concluded with the 146th Commencement of the University of
Kentucky. Of the 4,300 who received their degrees over the past year, 2,700 chose to participate
in the commencement ceremonies. President Capilouto thanked John Herbst, chair of the
Commencement Committee and the Board members, deans, faculty, staff, administrators and
student volunteers that made the day memorable for the graduates and their families.
President Capilouto introduced and welcomed Dr. Christine Riordan, who recently
accepted his offer to serve as Provost for the University of Kentucky. Dr. Riordan is currently
Dean of the Daniels College of Business at the University of Denver. After an extensive search
process that included a deep and rich pool of candidates, President Capilouto stated that Dr.
Riordan's candidacy stood out for a number of reasons: her compelling communication skills, her
deep understanding of higher education's future, how she has led the Daniels College to
prominence, and the sense of excitement her candidacy generated while she was on campus.
President Capilouto commented that Dr. Riordan has the experience as both a leading scholar in
her discipline and as an administrator who has excelled in creating innovative programs, not only
domestically but internationally, as well. At the same time, Dr. Riordan has a record of sustained
excellence in fundraising. Under her direction, the Daniels College now raises over $14 million
annually in private and corporate funds. Additionally, the University of Denver’s Daniels
endowment has increased over 50 percent from $70 million to over $106 million under her
leadership, and they're now completing a $100 million dollar campaign for the college.
President Capilouto continued that Dr. Riordan is a frequent commentator on leadership
development and workplace diversity and was recently elected to the board of the Association to
Advance Collegiate Schools of Business (AACSB), which is the international accrediting body
for business schools. Her articles and interviews have appeared in Forbes, CNBC, Wall Street
Journal, MarketWatch, CareerBuilder, Huffington Post, Politico, and the Harvard Business
Review. Dr. Riordan received a round of applause.
President Capilouto thanked the Provost Search Committee, co-chaired by Professors
Mike Reid and Charles Carlson. He commented that the committee labored for over ten months,
and brought forth a talented and highly qualified pool of candidates. He also thanked those
members of the Board of Trustees, deans and senior administration, the University Senate
Council, the leadership of the Staff Senate, the Student Government Association, and those who
participated in the campus forums.
President Capilouto conveyed his sincerest appreciation for College of Pharmacy Dean
Tim Tracy, who for the last year served as interim provost. He was grateful for his steady hand
and exceptional leadership that helped guide many important initiatives. His wise and trusted
counsel on many important issues confronting the campus was greatly valued. Interim Provost
Tracy received a warm round of applause.
Named one of the most creative professors in the south by a leading literary and cultural
magazine, President Capilouto stated it was his honor to introduce Kentucky's Poet Laureate,

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* Frank X Walker. Professor Walker is a graduate of the University of Kentucky and received his
Masters of Fine Arts in Writing at Spalding University. A native of Danville, Kentucky, he is
Director of the African American and Africana Studies program and an Associate Professor in
the Department of English. As the fourth professor from the University of Kentucky Department
of English to earn the accolade of Kentucky Poet Laureate, he is also the youngest and the first
African American. Professor Walker is the originator of the word "Affrilachia," which revolves
around a passion for bringing more attention to prominent African American writers in
Appalachia, both past and present. He and a group of his writing friends founded the
Affrilachian Poets, a literary movement that gives voice to previously silenced people, while
promoting excellence in teaching, writing, art, and activism. As the 2013-14 Kentucky Poet
Laureate, Professor Walker will promote the arts and lead the state in literary endeavors through
readings and public presentations at meetings, seminars, conferences, and events.
President Capilouto invited Professor Walker to say a few words. Professor Walker
thanked President Capilouto and the Board of Trustees. He shared that as a Kentuckian, he felt
he was an example of the Kentucky Promise. After several opportunities outside the state, he
was excited to return to Kentucky and the University of Kentucky and to be a part of the team of
leaders and educators with amazing vision, energy and growth.
President Capilouto recognized UK College of Medicine’s Dean Frederick de Beer,
Associate Dean for Student Affairs, Dr. Chipper Griffith, new medical school graduate Dr. Fiyin
Sokoya, and fourth-year student Jerome Mason. Dr. Sokoya, a native of Sagamu, Nigera, served
as president of the Class of 2013. Mr. Mason is currently president of the Medical School
Student Government. They thanked President Capilouto and the Board of Trustees and praised
the College of Medicine. From instructors to clinical directors, the admissions office to student
affairs, both commended the College for its pursuit of excellence and the warm and welcoming
environment.
G.

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

(PR 3)
President Capilouto stated that PR 3 was the recommendation that the Board of Trustees
receive and vote to accept for the first reading the attached revisions to the Governing
Regulations I and X relating to the employment of relatives and nepotism. The revisions are
intended to strengthen and clarify the University's policies relating to the employment of
relatives and nepotism. The regulations also provide for the appropriate disclosure and
management of situations where nepotism may occur.
Chair Brockman asked for a motion for approval of PR 3. Trustee Curris so moved and it
was seconded by Trustee Akins. Chair Brockman opened the floor for discussion. Trustee Voro
stated she would like to continue the dialogue with General Counsel Bill Thro regarding the
issue of nepotism and the faculty trustee election.
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.)

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* H.
Proposed Revision to Governing Regulations: Ethical Principles and Code of
Conduct (PR 4)
President Capilouto stated that PR 4 was the recommendation that the Board of Trustees
receive and vote to accept for the first reading the revisions to GR I and create a new GR, GR
XIV, “Ethical Principles and Code of Conduct.” These revisions are intended to clarify and
strengthen the university's commitment to ethical behavior.
The proposed revision is the result of recommendations made by a work group appointed
by President Capilouto soon after his arrival in July 2011. The work group was charged with
reviewing University policies and processes regarding legal and ethical conduct. These proposed
revisions have been reviewed and are supported by the President, University Senate, Staff
Senate, and Student Government Association.
Chair Brockman asked for a motion for approval of PR 4. Trustee Shoop so moved and it
was seconded by Trustee Stuckert. Trustee Voro stated that she was pleased to see new sections
added to ethical principles, and that the work group did a fine job. With no further 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 is a recommendation that the Board of Trustees accept
for the first reading the attached revision of the Governing Regulation V related to the Staff
Senate. This revision would strengthen staff representation and participation and is supported by
the President and Staff Senate.
Chair Brockman asked for a motion for approval of PR 5. Secretary Brothers so moved
and it was seconded by Trustee Farish. The motion passed without dissent. (See PR 5 on the
Board of Trustees website, www.uky.edu/Trustees, under agenda.)
J.

Naming of University Facility: Softball Stadium (PR 6)

President Capilouto stated that PR 6 is a recommendation that the Board of Trustees
approve the official naming of the University of Kentucky softball stadium as the “John Cropp
Stadium.” President Capilouto reported that Trustee Akins, among others, had commented at the
University Athletics Committee meeting about Mr. Cropp's many contributions to the
Department of Intercollegiate Athletics and the University over his long and distinguished
service.
Chair Brockman asked for a motion for approval of PR 6. Trustee Akins so moved and it
was seconded by Trustee Gannon. The motion passed without dissent. (See PR 6 on the Board
of Trustees website, www.uky.edu/Trustees, under agenda.)

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* K.

Naming of University Facility: Maine Chance Equine Campus (PR 7)

President Capilouto stated that PR 7 is a recommendation asking for approval of the
official naming of the mare facility at the Maine Chance Equine Campus, Barn 26, Spindletop
Way, Lexington, Kentucky, as the “Walter W. Zent Mare Reproductive Health Facility.”
The Committee on Naming University Buildings received the request from the University
of Kentucky Gluck Equine Research Board and it was endorsed by Dean M. Scott Smith,
College of Agriculture. Dr. Zent, a former chair of the Gluck Equine Research Foundation
Board, is a long-time advocate, key fundraiser, and philanthropist to the Equine Research Center.
Chair Brockman asked for a motion for approval of PR 7. Trustee Farish so moved and it
was seconded by Trustee Mobley. The motion passed without dissent. (See PR 7 on the Board
of Trustees website, www.uky.edu/Trustees, under agenda.)
L.

Academic Affairs Committee Report

Trustee O. Keith Gannon, chair of the Academic Affairs Committee, reported that the
committee met that morning and had three business items. The Committee was honored to have
incoming provost Dr. Christine Riordan as a guest.
Trustee Gannon stated that AACR 1 was part of the Consent agenda, a Candidate for
Degree, December 2012.
M.

Candidates for Degrees: May 2013 ( AACR 2)

Trustee Gannon stated AACR 2 was related to the candidates for degrees in May 2013.
There were 4,334 graduates, which includes undergraduate, graduate and professional students.
On behalf of the Academic Affairs Committee, Trustee Gannon asked for 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.

Academic Degree Recommendation: College of Arts and Sciences (AACR 3)

Trustee Gannon stated that AACR 3 is a recommendation for the establishment of a
Master of Arts degree with a major in Teaching English as a Second Language (TESL) in the
Department of Modern and Classical Languages, Literature and Cultures within the College of
Arts and Sciences effective in the fall of 2013. The TESL program is designed to support preservice and in-service teachers who would like to specialize in teaching English as a second
language. The program has been approved by the appropriate councils and University Senate
and has completed a 45-day review by the Council on Postsecondary Education (CPE.) The
Interim Provost of the Uuniversity supports this recommendation.
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. Joint Meeting of the University Relations and University Athletics Committee
Trustee Jo Hern Curris, chair of the University Relations Committee, reported that
DeWayne Peevy, Deputy Athletics Director, presented a report on the processes/procedures by
which the Department of Intercollegiate Athletics develops and plans its public relations,
marketing and media strategies. Mr. Peevy described Athletics as being the “front porch of the
university.” It is often the first impression of the University for a prospective student. The role
of Media Relations is to promote and train students, coaches, and staff in areas that range from,
but are not limited to, media presentations and protocol, crisis management and social media
oversight.
Trustee C.B. Akins, Sr., chair of the University Athletics Committee, reported that in the
University Athletics portion of meeting this morning, in addition to the department report from
Athletics Director Mitch Barnhart, the committee was delighted to recognize two superb student
athletes and their coaches. Chelsea Oswald, from the track team and coached by Edrick Floreal,
was named the SEC Female Scholar Athlete of the Year, and Megan Moire of women's golf,
coached by Golda Borst, was chosen as the SEC Female Community Service Leader of the
Year.
Trustee Akins stated that AD Barnhart reported on the spring semester GPA. Sixteen of
20 teams had a 3.0 GPA or better. Two hundred fifty-six out of 371 scholarship student athletes
had a 3.0 or better, and 47 student athletes had a perfect 4.0. The overall department GPA was
3.14. The six-year federal graduation rate increased to 59 percent. The department has seen
steady GPA growth each year, and over 57 student athletes were named to the SEC Winter
Academic Honor Roll. The graduate success rate continues to remain at a high rate of 78 percent
for all students. The exhausted eligibility rate (an internal UK Athletics measure that determines
if the department is being academically responsible to the student athletes who remain at UK
until their athletic eligibility is exhausted) is at 91.3 percent.
AD Barnhart continued with a wrap-up of winter sports, including women's basketball
which for the third time in the last four years advanced to the final eight of the NCAA. Men's
basketball finished with a 21-12 record. The gymnastics team qualified for a NCAA regional
and posted its highest regional score ever with a 195.575 mark. The men's swimming team
finished 22nd at the NCAA championship meet. The report gave a status on spring sports,
highlighting baseball, softball, men's tennis, women's tennis, men's and women's track, women's
and men's golf. The Blue/White Spring game, the spring football practice, that had an attendance
of 50,831, was the sixth largest spring practice attendance in the nation.
Chair Akins stated that in business items, the committee reviewed and endorsed PR 6,
naming of the softball stadium the “John Cropp Stadium.”
P.

Audit Subcommittee Report

Trustee Bill Britton, chair of the Audit Subcommittee, stated that the committee had met

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* that morning and received an update from Senior Auditor Joe Reed on the internal audit progress
for the year. Due to the loss of two staff auditors, four audits will be continued into the next
work plan. There was continued discussion regarding the Audit Subcommittee charter revision.
Its proposed revision(s) and reading was postponed to the June meeting.
Q.

Financial Committee Report

Trustee Stuckert reviewed the consent item pledge (FCR 1, Bequests from the Estate of
Dr. E. Vernon Smith) and offered additional thanks to individuals like Dr. Smith and his wife
Eloise, for the provision in their estate.
R.
Resolution for the Designation of an Agent for the Application of FEMA
Assistance (FCR 2)
Trustee Stuckert stated that FCR 2 recommends that the Board of Trustees approve a
resolution designating the Executive Vice President for Finance and Administration, to be the
authorized agent for the University to execute an application(s) with the appropriate Commonwealth of Kentucky office for the purpose of obtaining federal financial assistance under the
Disaster Relief Act or otherwise available from the President's Disaster Relief Fund. The
document shall be retained on file in the Office of Legal Counsel and is updated by the Board of
Trustees on an annual basis.
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.)
Authorization of Lease for Phase II-B Student Housing and to Submit an Increase
S.
in Scope for Phase II of the Capital Projects and Bond Oversight Committee (FCR 3)
Trustee Stuckert stated that FCR 3 is the resolution that recommends the Board of
Trustees authorize the President, or his designee to: 1) enter into a long-term lease with an
affiliate of the Education Realty Trust, Inc. (EDR) guaranteed by Education Realty Operating
Partnership, LP, for the purpose of development and management of Phase II-B of the student
housing project; and 2) submit an increase in scope for Phase II to the Capital Projects and Bond
Oversight Committee. Trustee Stuckert stated that FCR 3 was fully vetted at the Finance
Committee meeting earlier in the day and on behalf of the Finance Committee, moved approval
of FCR 3. Chair Brockman opened the floor for discussion. Trustee Voro asked what the rate of
return was for EdR and eventually to UK. Executive Vice President Eric Monday stated it was
7.25% and ideally a return to UK would be in a few decades.
Hearing no further discussion, Chair Brockman moved the question and it passed with 16
affirmative votes and one abstention by Trustee Voro. (See FCR 3 on the Board of Trustees
website, www.uky.edu/Trustees, under agenda.)

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* T.

Approval of Lease (FCR 4)

Trustee Stuckert stated that FCR 4 requests that the Board of Trustees authorize the
Executive Vice President for Finance and Administration to negotiate and execute a lease
between the University of Kentucky and Courtyards University of Kentucky, LLC, for space
located at 845 Red Mile Road, Lexington, Kentucky. Funded by housing auxiliary revenues, the
mix of 196 beds in two- and four-bedroom apartments will provide housing for graduate students
displaced from the demolition of Cooperstown Apartments, part of the Phase II-A and II-B
Housing Projects.
On behalf of the Finance Committee, Trustee Stuckert moved adoption of FCR 4 and it
passed without dissent. (See FCR 4 on the Board of Trustees website, www.uky.edu/Trustees,
under agenda.)
U.
Repair/Upgrade/Improve Mechanical Infrastructure (Replace Woodland Sanitary
Sewer) (FCR 5)
Trustee Stuckert stated that FCR 5 is the repair/upgrade/improve the mechanical
infrastructure, more specifically, the replacement of portions of the Woodland Avenue sanitary
sewer. With the increase of undergraduate beds detailed in the Phase II-A and II-B Housing
Projects, the sanitary sewer capacity must be increased to handle the increase in occupants.
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.)
Repair/Upgrade/Improve Civil/Site Infrastructure (Construct Cooperstown Loop
V.
Road) (FCR 6)
Trustee Stuckert stated that FCR 6 involves the relocation of Cooperstown Drive. As
part of the Phase II-A and II-B Housing Project, the relocation is necessary to provide sufficient
usable land for the proposed layout and improvement of traffic flow. On behalf of the Finance
Committee, Trustee Stuckert moved the adoption of FCR 6 and it passed with 16 affirmative
votes and one abstention from Trustee Voro. (See FCR 6 on the Board of Trustees
website, www.uky.edu/Trustees, under agenda.)
W.
Repair/Upgrade/Improve Electrical Infrastructure Central Campus (South Central
Electrical Infrastructure (FCR 7)
Trustee Stuckert stated that FCR 7 is an upgrade of the electrical infrastructure in central
campus. Current projects under construction and in various stages of planning will require
expanded electrical capacity. On behalf of the Finance Committee, Trustee Stuckert moved
adoption of FCR 7 and it passed without dissent. (See FCR 7 on the Board of Trustees
website, www.uky.edu/Trustees, under agenda.)

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* X.

Renovate Robotics Building (FCR 8)

Trustee Stuckert stated that FCR 8 asks the Board of Trustees to approve the increase in
funding for the Renovate Robotics Building capital project. The Board approved initiation of the
project on December 11, 2012 using $1.8 million of accumulated fund balances. At the
completion of the programming phase, the construction estimate exceeded the available
construction dollars by $575,000. This request is to increase the current project scope to $2.375
million using non-recurring funds.
Trustee Stuckert, on behalf of the Finance Committee, moved adoption of FCR 8.
Trustee Voro asked about the construction estimate and its higher cost. Vice President for
Facilities Bob Wiseman explained that as the University began to design to the $1.8 million
previously approved by the Board, additional funds were located that could fund the project as
originally proposed. Knowing that the scope of the project would require additional funds,
legislative authority was procured for $3.8 million.
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.)
Y.

Easement Authorization for Lexington Fayette Urban County Government (FCR 9)

Trustee Stuckert stated that FCR 9 would authorize the Executive Vice President for
Finance and Administration to convey approximately .10 acre for a bike lane easement to the
Lexington Fayette Urban County Government. The University of Kentucky and the Lexington
Fayette Urban County Government are coordinating the construction of a bike lane with an
associated eight foot wide easement by 440 feet long along the east side of Rose Street between
Euclid Avenue and Rose Lane. The easement terminates and reverts to the University should the
bike lane be removed.
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.)
Z.
Repair/Upgrade/Improve Building Shell Systems Parking Garage Maintenance
and Restoration (FCR 10)
Trustee Stuckert stated that FCR 10 requests that the Board of Trustees approve the
initiation of the Parking Garage Maintenance and Restoration capital project. This project
pertains to the preventative maintenance and repair schedule for the University’s parking
structures over the next ten years.
On behalf of the Finance Committee, Trustee Stuckert moved adoption of FCR 10 and it
passed without dissent. (See FCR 10 on the Board of Trustees website, www.uky.edu/Trustees,
under agenda.)

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* AA. Repair/Upgrade/Expand Central Plants (Replace Cooling Tower at Medical
Center Cooling Plant) (FCR 11)
Trustee Stuckert stated that FCR 11 requests that the Board of Trustees approve an
increase in scope for the Repair/Upgrade/Expand Central Plants (Replace Cooling Tower at
Medical Center Cooling Plant) capital project.
Trustee Stuckert explained that the project was submitted to the Board of Trustees on
December 11, 2012 with an estimated scope of $870,000. The project has since been designed
and competitive bids for the work were received on February 6, 2013. Accepting the lowest of
five responsive bids will put the project $440,000 over the original estimated amount. The
revised scope totals $1,310,000. The costs of operating and maintaining both of the University’s
power plants are paid for with general, hospital, and auxiliary funds based upon usage. The
project will be financed with such agency funds.
On behalf of the Finance Committee, Trustee Stuckert moved adoption of FCR 11. Chair
Brockman opened the floor for discussion. Trustee Voro voiced concerns similar to those she
raised in December 2012. Vice President for Facilities Bob Wiseman reiterated that as both
cooling plants are tied together and serve the entire campus, the costs of repairs/upgrades are
apportioned across all users. Chair Brockman called the question and it passed without dissent.
(See FCR 11 on the Board of Trustees website, www.uky.edu/Trustees, under agenda.)
BB.

Capital Construction Report (FCR 12)

Trustee Stuckert stated that FCR 12 requests that the Board of Trustees approve the
capital construction report for the three months ending March 31, 2012. On behalf of the
Finance Committee, Trustee Stuckert moved adoption of FCR 12 and it passed without dissent.
(See FCR 12 on the Board of Trustees website, www.uky.edu/Trustees, under agenda.)
CC.

Authorization to Acquire the Lexington Theological Seminary (FCR 13)

Trustee Stuckert stated that FCR 13 recommends that the Board of Trustees authorize the
Executive Vice President for Finance and Administration to enter into a purchase agreement to
acquire the Lexington Theological Seminary located at 631 South Limestone, Lexington,
Kentucky, for the price of $13,500,000. The proposed purchase price is “turnkey” and includes
all of the Seminary’s fixtures and furnishings except items of historical or religious significance
and certain administrative office equipment.
The Lexington Theological Seminary sits on approximately 7.1 acres and the campus
includes 131,589 gross square feet of building space, including four institutional buildings, fortyfour apartments, sixteen townhomes, a maintenance building and a shell building. The property
has been developed in stages beginning in 1949. Additionally, the property includes a .08 acre
parking lot.
As a graduate of the Lexington Theological Seminary, Trustee Akins moved approval of
FCR 13. As chair of the Finance Committee, Trustee Stuckert seconded the motion and it passed

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* without dissent. (See FCR 13 on the Board of Trustees website, www.uky.edu/Trustees, under
agenda.)
DD.

University Health Care Committee

Trustee Barbara Young, chair of the University Health Care Committee, reported that the
committee met on Monday, May 13. Murray Clark, Interim Chief Financial Officer, reviewed
the March financials, and in summary March was a positive month. Activity as indicated by
discharges, emergency department cases and outpatient cases continue to be ahead of the prior
year. Efficiency indicators, such as length of stay and CMI adjusted length of stay, are below
budget and prior year, and the payor mix is generally positive. As a result of these factors UK
HealthCare continues to have a positive income from operations, amounting to over $60 million
YTD or an 8.5% operating margin. One thing to note is that Emergency Department (ED) cases
are below budget in March perhaps indicating that ED visits at Chandler are being affected by
the lack of available beds in Chand