xt7rn872vx4w https://exploreuk.uky.edu/dips/xt7rn872vx4w/data/mets.xml Lexington, Kentucky University of Kentucky 19980618 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, 1998-06-aug18. text Minutes of the University of Kentucky Board of Trustees, 1998-06-aug18. 1998 2011 true xt7rn872vx4w section xt7rn872vx4w 





                                        AGENDA

                             Meeting of the Board of Trustees
                                  University of Kentucky
                                         1:00 P.M.
                                      August 18, 1998
Invocation

Oath of Office

Roll Call

Approval of Minutes

Nominating Committee Report - KCTCS Nominations

President's Report and Action Items

PR 1    President's Report to the Trustees
        A.  Coldstream Research Campus Report

PR 2   Personnel Actions

PR 3    Central Administration
       A.  Proposed Amendments to the Governing Regulations
       B.  Appointment of Board of Directors University of Kentucky Research Foundation

PR 4   Community College System
       A.  Candidates for Degrees - Community College System

PR 5   Lexington Campus
       A.  Candidates for Degrees - University System
       B. Naming University Building - Lexington Campus
       C. Naming University Building - Lexington Campus

PR 6   Medical Center
       A.  Reappointment to Board of Directors of the Fund for Advancement of Education
                 and Research in the University of Kentucky Medical Center

Finance Committee

1.    Capitalization Policy Non-Expendable Moveable Equipment
2.    Report of Leases
3.    Approval of Leases
4.    Capital Construction Report
5.    Cadence Design Systems, Inc. Gift-In-Kind
6.    Carol Martin Gatton Gift
7.    James C. Bowling Lecture Series
8.    Agreement Between University of Kentucky and Kentucky Healthcare Enterprise, Inc.
9.    A Resolution Authorizing the University's Participation in the Continued Funding
            and Support of the CHA Integrated Delivery System
10.    Resolution Approving a Financing/Lease Agreement for Expansion of Commonwealth Stadium




 











      Minutes of the Meeting of the Board of Trustees of the University of Kentucky,
Tuesday, August 18, 1998.

      The Board of Trustees of the University of Kentucky met at 1:00 p.m. (Lexington
time) on Tuesday, August 18, 1998 in the Board Room on the 18th floor of Patterson
Office Tower.

      A.    Meeting Opened

      Governor Edward T. Breathitt, Chairperson, called the meeting to order at 1:00
p.m., and the invocation was pronounced by Mr. Steven Reed.

      B.    Oath of Office Administered

      Governor Breathitt asked Richard Plymale, General Counsel, to administer the
oath of office to the following members:

         Dr. Robert P. Meriwether, reappointed by Governor Paul Patton, for a term
         expiring June 30, 2004.

         Mrs. Marian Sims, appointed by Governor Paul Patton to replace Mrs. Kay
         Shropshire Bell, for a term expiring June 30, 2004.

         Mr. Russell Williams, elected staff representative for a term to expire June 30,
         2001.

         Mr. Nathan Brown, who will serve as student trustee for the 1998-99
         academic year.

      Governor Breathitt welcomed the new members and expressed pleasure in the
reappointment of Dr. Meriwether. He said he looked forward to working with them.

      C.    Roll Call

      The following members of the Board of Trustees answered the call of the roll:
Mr. Ted Bates, Governor Edward T. Breathitt (Chairperson), Mr. Nathan Brown, Mr.
Paul W. Chellgren, Mr. Merwin Grayson, Mr. John "Jack" Guthrie, Mr. James F.
Hardymon, Professor Loys L. Mather, Dr. Robert P. Meriwether, Mr. Steven S. Reed,
Professor Daniel R. Reedy, Mr. C. Frank Shoop, Mrs. Marian Sims, Dr. W. Grady
Stumbo, Mr. Martin Welenken, Ms. JoEtta Y. Wickliffe, Mr. Billy B. Wilcoxson, and
Mr. Russell Williams. Absent from the meeting were Dr. Elissa Plattner and Mr. Billy




 





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Joe Miles. The University administration was represented by President Charles T.
Wethington, Jr.; Chancellors James W. Holsinger, and Elisabeth Zinser; Vice Presidents
Fitzgerald Bramwell, Joseph T. Burch, Ben W. Carr, Edward A. Carter, George DeBin
and Eugene Williams; Dr. Juanita Fleming, Special Assistant for Academic Affairs; Mr. C.
M. Newton, Director of Athletics, and Mr. Richard E. Plymale, General Counsel.

      Members of the various news media were also in attendance. A quorum being
present, the Chairperson declared the meeting officially open for the conduct of business
at 1:05 p.m.

      D.    Approval of Minutes

      Governor Breathitt said that the Minutes of the Board meeting on June 9, 1998
had been distributed and asked for any additions or corrections. Mr. Chellgren moved
that the Minutes be approved as distributed. Mr. Shoop seconded the motion, and it
carried.

      E.    Nominations to Kentucky Community and Technical College System
(KCTCS) Board (NCR 1)

      Mr. Wilcoxson reminded the members of the Board's action at the June 9, 1998
meeting approving the submission of three names to Governor Paul Patton for his
consideration for the KCTCS Board. He called attention to the letter from the
Governor's Office requesting that the Board submit three female names for consideration.
He noted that Diana Lutz, who was included in the last Board action, had requested that
her name not be submitted for consideration.

      Mr. Wilcoxson said that NCR I recommends that the Secretary of the Board of
Trustees be authorized to certify to the Governor the names of the following three
persons to be considered for appointment to the KCTCS Board: Gladys F. Hoskins,
Harlan; Alois McIntyre Moore, Hazard; and Agnes B. Whittington, Henderson. On
motion made by Mr. Shoop and seconded by Mr. Guthrie, NCR 1 was approved.

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

      President Wethington called attention to the following items in PR 1:

      1. The University has completed the first phase of installing a new Hewlett-
          Packard high-performance computer that increases by seven times the number
          of calculations that can be performed by researchers.

      2. The UK chapter of the Society of Women Engineers was named the best
          chapter in the nation at the society's national conference.




 





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      3. Jeffrey B. Dembo, oral surgery, has been named academic ombud for the 1998-
          99 academic year.

      4. The Gatton College of Business and Economics conducted UK's first Sports
         Marketing Academy this summer for corporate and college marketing directors
         and administrators.

      5. Researchers at the Center for Biomedical Engineering have begun a four-year,
          $400,000 study of the effect of weightlessness in space on women's
          cardiovascular and respiratory systems.

      6. The College of Law inducted three new members into its Hall of Fame on June
          17. The new members are Edward H. Johnstone, Joe Lee, and Peter Perlman.

      7. New officers of the UK National Alumni Association are Robert F. Pickard,
          president; Robert E. Miller, president-elect; and Sandy Bugie Patterson,
          treasurer.

      8. The Graduate School has awarded 32 new Kentucky Research Challenge
          Fellowships and 225 Target of Opportunity Research Assistants' tuition
          scholarships for the coming academic year.

      President Wethington asked the members to read the other items in the report at
their leisure.

      G.    Personnel Actions (PR 2)

      President Wethington recommended that approval be given to the appointments,
actions and/or other staff changes which require Board action; and that the report relative
to appointments and/or changes already approved by the administration be accepted.
Mr. Guthrie moved approval. The motion, seconded by Mr. Brown, carried. (See PR 2
at the end of the Minutes.)

      President Wethington introduced the university's new deans in the audience:
Dean Howard Grotch, College of Arts and Sciences; Dean Kay Hoffman, College of Social
Work; Dean David Johnson, College of Communications and Information Studies; and
Dean Robert Shay, College of Fine Arts. He noted that the Board previously approved
the appointments of the new deans; however, all of them could not be present when
approved by the Board. He welcomed them to the University.




 





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      Governor Breathitt said he was thrilled with the new appointments, and he looked
forward to working with them. These new deans will bring new energy and vision into
each of the colleges.

      H.    Proposed Amendments to the Governing Regulations (PR 3A)

      President Wethington said PR 3A is the proposed amendments to the Governing
Regulations which was submitted to the Board at the June 9, 1998 meeting. The
proposed regulations must stay on the table for at least a month before being considered
for final action. During that time, the proposed changes are sent to the appropriate
groups on campus for review. He said he was pleased to report that the proposed
changes remained intact. He recommended approval of PR 3A. On motion made by Mr.
Reed, seconded by Mr. Chellgren and carried, PR 3A was approved. (See PR 3A at the
end of the Minutes.)

      I.    Appointment of Board of Directors - University of Kentucky Research
Foundation (PR 3B

      President Wethington said that PR 3B is the recommendation that Mr. Don M.
Gash, faculty member in Anatomy and Neurobiology, and Mr. John R. "Jack" Guthrie,
trustee, be appointed to the Board of Directors of the University of Kentucky Research
Foundation (UKRF). He said he was pleased to recommend the appointment of Mr. Don
Gash and the reappointment of Mr. Jack Guthrie to the UKRF Board for three-year
terms beginning July 1, 1998 and ending June 30, 2001. He said he was pleased to
recommend PR 3B. Mr. Reed moved approval. His motion, seconded by Mr. Shoop,
passed. (PR 3B at the end of the Minutes.)

      J.    Candidates for Degrees - Community College System (PR 4A)

      President Wethington said that the Board must still approve candidates for
degrees from the Community College System (CCS) for those degree programs that are
University of Kentucky degree programs still offered in the CCS. He said it was his
pleasure to recommend that the degrees specified on the list attached to PR 4A be
awarded to the persons named upon certification that the requirements for those degrees
have been satisfactorily completed. Mr. Chellgren moved approval. Professor Mather
seconded the motion, and it carried. (See PR 4A at the end of the Minutes.)

      K.    Candidates for Degrees - University System (PR 5A)

      President Wethington said PR 5A is a companion document. It is a
recommendation that the president be authorized to confer upon each individual whose
name appears on the list attached to PR 5A the appropriate degree to which he or she is
entitled upon certification by the Registrar and approval by the University Senate that




 





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the individual has satisfactorily completed all requirements for the degree. Professor
Reedy moved approval of PR 5A. Mrs. Wickliffe seconded the motion, and it passed.
(See PR 5A at the end of the Minutes.)

       L.    Naming University Building - Lexington, Campus (PR SB)

       President Wethington said PR 5B is a recommendation that the Civil Engineering
and Transportation Building be named the Oliver H. Raymond Building. Mr. Oliver H.
Raymond, a 1954 graduate of the University of Kentucky with a Bachelor of Science in
Civil Engineering degree, is one of the College of Engineering's most distinguished alumni.
He is also the most generous contributor to the College of Engineering with gifts and
pledges totaling over $3 million. His most recent gift and pledge of $2 million is to
establish professorships and fellowships in the College of Engineering. He said he was
pleased to recommend that the Civil Engineering and Transportation Building be named
the Oliver H. Raymond Building. Dr. Stumbo moved approval. His motion, seconded by
Mr. Welenken, carried. (See PR SB at the end of the Minutes.)

       M.    Naming University Building - Lexington Campus (PR SB)

       President Wethington said PR SC is a recommendation that the Transportation
Research Building located at 533 South Limestone Street be named the S. J. "Sam"
Whalen Building. Mr. Whalen is a 1949 graduate of the University of Kentucky. His
Bachelor of Science degree is in metallurgical engineering. He is a long-standing supporter
of the College of Engineering and has made substantial financial contributions, including a
recent charitable remainder unitrust. He said it was his pleasure to recommend to the
Board the naming of this transportation building the S. J. "Sam" Whalen Building. Mrs.
Sims moved approval. Mr. Reed seconded the motion, and it passed. (See PR SB at the
end of the Minutes.)

      N.    Reappointment to Board of Directors of the Fund for Advancement of
Education and Research in the University of Kentucky Medical Center (PR 6A)

      President Wethington recommended that approval be given to the reappointment
of Ted Hahn to the Board of Directors of the Fund for Advancement of Education and
Research. He noted that the Articles of Incorporation of the Fund require two-year term
Board of Director appointments, and the Board of Trustees is to make such
appointments. On motion made by Mr. Chellgren, seconded by Mrs. Sims and carried,
PR 6A was approved. (See PR 6A at the end of the Minutes.)

      0.    Welcome New Board Members

      President Wethington concluded his report by welcoming the new members to the
Board and congratulating Dr. Robert Meriwether, vice chairperson of the Board, on his




 





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reappointment to the Board. He noted that Elissa Plattner had been reappointed to the
Board and would be sworn in at the September meeting.

      P.    Report on Coldstream Research Campus

      President Wethington asked Mr. Ed Carter to make a presentation to the Board
about the Coldstream Research Campus. Since there were new Board members, he asked
Mr. Carter to start at the beginning of the Coldstream project and give an updated report.

      Mr. Carter provided the history, the development, the Board's involvement and
the current status of Coldstream through the following series of slides:

                                    History
  Coldstream Purchased 1957



* Supported
* 1985

* 1987


0

0




* 1988



* 1988



* 1989

* 1990



* 1990



Animal Research Program for Forty Years
The Finance Committee of Board of Trustees and University
Administration undertook and completed a Land Use and Needs Report
Board of Trustees directed the Administration to proceed to contract on
behalf of the University with the firm of MPC, Inc. of Washington, D.C.
to advise Board of Trustees on potential uses of Coldstream.
MPC was selected by the Subcommittee of the Finance Committee after a
through review of eleven firms that responded to a Request for Proposal
The directive to MPC was to maximize the economic return to the
University, and contribute to the economic development of the
Commonwealth in an optimal way while serving the mission of the
University.
Board of Trustees approved the concept of MPC's plan which included
the locating of a regional mall near Georgetown Rd. on the westernmost
part of the farm and the development of a Research Campus.
Board of Trustees authorized the negotiation of an option agreement for
the development of a regional mall together with ancillary uses on
approximately ninety-five acres of Coldstream Farm.
Regional mall project dropped from master plan because of no direct
access to 1-64/75.
Mayor recommended to the Lexington-Fayette Urban County Council that
a committee be appointed to consider proposals for the Coldstream Small
Area.
The Commonwealth of Kentucky and the University of Kentucky entered
into a ground lease with Hughes Aircraft Company for the first leased lot
in the Coldstream Research Campus.




 





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* 1991       An Agreement was signed by the Commonwealth of Kentucky and the
             University of Kentucky with the Lexington-Fayette Urban County
             Government which conveyed approximately 225 acres of Coldstream
             Farm to the Urban County Government for open space and a passive
             recreation park. In exchange for the land the Urban County Government
             agreed to provide a sewer system to serve the Coldstream development.
* 1992       The Lexington-Fayette Urban County Council passed an ordinance
             changing the Coldstream Farm zoning from Agriculture Urban to an Office
             Industry and Research Park (P-2) which would permit the development of
             the Research Campus.
* 1992       Selected and entered into a consultant contract for engineering of
             Coldstream Research Campus.
* 1996       The Board of Trustees authorized the execution of a ground lease with
             Studio Plus Hotels, Inc. for a corporate headquarters and a hotel facility.
             Studio Plus Hotels, Inc. was sold and thus no need for corporate
             headquarters in Lexington, KY--lease never executed.
* 1996       The Board of Trustees authorized the execution of a ground lease with
             Lexington Suite Hotel, LLC.--lease was executed and hotel will open in
             summer of 1999.
* 1996       The Board of Trustees re-authorized the execution of a ground lease
             between the University of Kentucky and Kentucky Technology, Inc. for
             the purpose of developing the Kentucky Technology Center, a multi-
             building, multi-tenant complex.

                              Market Information
* Approximately 150 such parks in the United States
* Ownership --- One third owned by universities
* Management --- One third managed by universities
* Use of the Parks
   - 44%--- R & D with Administration and Support
   - 15%--- General Office/Training/Education
   - 12%--- Corporate/Divisional Headquarters
   -  9%--- Scientific Oriented Production
   -  5%--- Medical Facilities
   -  4%--- Prototype Production/Pilot Plants
   -  3%--- Non-Scientific Production
   -  3%-- Support/Commercial/Retail
   -  2%--- Distribution/Warehousing/Incubator
   -  3%--- Other




 





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                                     Overview
* The vision and the plan for Coldstream is that it be developed into a Research
  Campus:
* To enhance interaction between the University of Kentucky and the private sector;
* To nurture start-up Kentucky businesses and emerging technologies;
* To foster close interaction between businesses located at Coldstream; and
* To significantly benefit economic development in Kentucky through the recruitment of
  new businesses and the fostering of existing businesses.

                      Opportunities for Prospective Tenants
* Access to faculty and staff on a consultative basis;
* Access to graduate and undergraduate students through internships and co-op
  arrangements; and
* Contractual use of University of Kentucky owned scientific, engineering and
  computing equipment.

                  Facts about the Coldstream Research Campus
* Coldstream is zoned:
* Office, Industry, and Research Park (P-2) Zone
* Mixed Use Development with High Quality Standards
* Research and Development
* Compatible Offices
* Manufacturing
* Warehouse
* Retail
* Hotels/Motels
* Based on development in similar parks
   - 50% of tenants will be university related technology - research
   - 50% will be traditional business, industry and offices
* 750 acre development
   - 525 acres for development
   - 225 acres Open Space - Passive Recreation Park
   - Master Planned for 37 Lots
* At full build out expect maximum of 7.7 million square feet of building space
* Expect build out to house 12-15,000 jobs
* Retail development cannot exceed 22 acres
* Retail limited to interior of the development
* Hotel developments cannot exceed 44 acres




 





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* Minimum lot size is 5 acres
* Coverage Ratios
   - Building footprint coverage 25% of lot
   - Total lot coverage 50%
* Setbacks
   - Newtown Pike 200 feet
   - Viley Road 100 feet
* Interior Roads 100 feet

                                 Current Status
   - Infrastructure (Sewers, Roads, Utilities) Designed for 150 Acres
   - Infrastructure Installed for 96 Acres
   - Lot 16 - 19 Acres - Leased to Lexel Corporation - 165,000 SF Building
   - Lot 37 - 18 Acres - UK Animal Diagnostic Lab
   - Lot 11 - 16 Acres - Leased to Lexington Suite Hotel, LLC - 235 room Embassy
     Suites Hotel
   - Lots 17 & 18 - 13 Acres - Leased to Kentucky Technology, Inc. - Kentucky
     Technology Center - 7 Buildings 1 10,000 SF
   - Lot I - 15 Acres - Possible Future Site for a Fayette County School
   - Lots 2, 3, 4, 5, & 6 - 60 Acres - Residential Community Designed for Retired
   - Faculty, Staff, Alumni and Friends of the University
   - Lots 19 & 20 - Combination corporate headquarters --complementary and
     alternative medical clinic based on ancient medical system known as Ayurveda
     (means science of life)

                              Implementation Plan
* $5.5 million infrastructure project complete by fall of 1999
* Infrastructure for over 300 acres and 26 lots in inventory
   - Research and Development
   - Compatible Offices
   - Manufacturing
   - Warehouse
   - Retail
   - Hotels/Motels
* $1.5 million office/lab building complete in 1998
* $1.2 million office/lab building complete in 1999
   Architectural and Landscaping Guidelines Guide the Development of the Coldstream
      Research Campus



Design Review Committee appointed by UK President




 





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       Mr. Carter entertained questions at the end of his report.

       President Wethington stated that this is an important project for the University.
It was envisioned from the beginning as a 25 to 30 year project to develop the region
economically over a period of years.

       Q.    Report from Chairperson of Ad Hoc Committee on Transition of
Community Colleges

       Governor Breathitt called on Paul Chellgren, chairperson of the Ad Hoc
Committee on Transition of Community Colleges, who has worked with the Kentucky
Community and Technical College System (KCTCS) Board and the Governor's Office on
the transition of the Community College System (CCS) to KCTCS, to make a report to
the Board.

       Mr. Chellgren provided a brief report on the transition of the Community College
System from UK to KCTCS board management effective January 14, 1998. Since then
the University has been very actively providing a series of services as those services were
promised and contracted for in the separation agreement. He said that there had been no
material difficulties or surprises in the ongoing provision of those services. He said a
great deal of work has been occurring during the last month or two with correspondence
and meetings. He reported that the presidents, chairmen and himself as well as various
members of the university staff had recently met, and things are going well from this
group's point of view.

       He reassured the Board that everything possible has been done to make this a
smooth and effective transition; however, it certainly appears that a major longer term
issue is the issue of accreditation for the ongoing programs and degrees in the Community
College System that is now under KCTCS. The reasons for that are a function of House
Bill 1 that set up the separation, the responsibilities of the UK Board and the
responsibilities of the KCTCS Board. He assured the Board that the University of
Kentucky is cooperating and helping this transition. This transition is going to take some
years to complete.

       Mr. Chellgren explained that the UK Board currently has a fiduciary
responsibility for degrees. The way it is evolving is that the students who are currently
enrolled in the CCS will receive UK degrees awarded by the UK Board while new
KCTCS students will ultimately receive degrees under the KCTCS Board.

      He reported that there is a major review session in October with the Southern
Association of Colleges and Schools accreditation authorities. UK and KCTCS
authorities are working together to develop a joint understanding of exactly how this




 





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transition on accreditation and degree programs will be organized and arranged. He said he
would continue to keep the Board informed, recognizing that the UK Board has certain
fiduciary responsibilities as well as the KCTCS Board. He then entertained questions
from the Board, and there was a discussion about the accreditation issue.

       Governor Breathitt thanked Mr. Chellgren for his report and said the Ad Hoc
Committee on the Transition of Community Colleges has been very helpful in the entire
process.

       R.    Capitalization Policy Non-Expendable Moveable Equipment (FCR 1)

       Mr. Hardymon, Chairperson of the Finance Committee, reported that the Finance
Committee met prior to the Board meeting. He stated that FCR 1 is a policy item for the
capitalization of non-expendable moveable equipment. The University Hospital has
recommended raising the capitalization level from $300 to $500 for equipment acquired
with Hospital funds effective July 1, 1998. The financial benefits for the lower amount
($300) were eliminated with the movement to Medicaid managed care and the phase-in of
a federal rate system for Medicare for capital reimbursements. This is the only change in
the capitalization policy that was approved by the Board in April 1997. He said the
Committee reviewed the capitalization policy and recommends approval of FCR 1. On
motion made by Mr. Hardymon, seconded by Mr. ChelIgrcn and carried, FCR 1 was
approved.

      S.    Report of Leases (FCR 2)

      Mr. Hardymon noted the cost increases in the renewal of leases which is a sign of
7 1/2 years of economic pick-up in the United States. When these increases occur, the
university's procedure is to advertise for competitive bidding and make an analysis on
how much it costs to move and what leasehold improvements must be written off if it is
necessary to leave one structure for another. He assured the Board that this process had
been done in all cases of an increase.

      He said FCR 2 is a report of leases with an annual value less than $30,000. He
pointed out an example of an increase from $6.54 to $7.64 for one of the renewals and
noted there were two new leases involving property in Lexington and Hazard. He moved
approval of FCR 2. Professor Mather seconded the motion, and it passed. (See FCR 2 at
the end of the Minutes.)

      T. Approval of Lease (FCR 3)

      Mr. Hardymon said that FCR 3 represents leases with an annual value greater
than $30,000. These leases are generally running $11-$12 per square foot but some are as
low as $9-$10.50. He noted there were three renewals of leases and two new leases. He




 





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called attention to the new lease between the University and the Department of Veterans
Affairs, noting it is for the use of 2,900 square feet for an Intensive Care Unit. He moved
approval of FCR 3. Mrs. Sims seconded his motion, and it carried. (See FCR 3 at the
end of the Minutes.)

      U.    Capital Construction Report (FCR 4)

      Mr. Hardymon moved that the Capital Construction Report be accepted. He said
that the report represents projects having activity for the three months ending June 30,
1998. He called attention to the change notices and amendments. He said that the
University is in a good situation, and this is a very thorough report. Dr. Meriwether
seconded the motion, and it passed. (See FCR 4 at the end of the minutes.)

      V.    Cadence Design Systems, Inc. Gift-In-Kind (FCR 5)

      Mr. Hardymon moved that the Board accept a gift-in-kind of computer software
valued at $970,472 from Cadence Design Inc. Systems of San Jose, California to the
College of Engineering's Department of Electrical Engineering. This gift-in-kind includes
software tools used in the study and research of integrated circuits. His motion, seconded
by Mr. Reed, carried. (See FCR 5 at the end of the Minutes.)

      W.    Carol Martin Gatton Gift (FCR 6)

      Mr. Hardymon moved that the Board accept a gift of $600,000 from Carol Martin
"Bill" Gatton of Bristol, Tennessee to the University of Kentucky Athletic Association
for the expansion of the Center for Academic and Tutorial Services. He noted that Mr.
Gatton has been very kind to the University of Kentucky. The College of Business and
Economics bears his name in honor of his generosity to the college. Now, he has made a
donation to the Center for Academic and Tutorial Services which is considered a model
academic center. His motion, seconded by Mr. Williams, passed. (See FCR 6 at the end
of the Minutes.)

      X.    James C. Bowling Lecture Series (FCR 7)

      Mr. Hardymon moved that the Board accept a gift of $25,000 and a pledge of
$75,000 from Joseph F. Cullman of New York City to establish and endow the James C.
Bowling Lecture Series in the College of Communications' School of Journalism and
Telecommunications. Mr. Bowling was a long-time University friend and supporter of
the University until his death in 1997. This gift was made by Mr. Cullman in honor of
Mr. Bowling. The income from the endowment will be used annually to invite a
nationally recognized public relations professional to the University to spend a day with
students followed by a public lecture in the evening. This endowment also provides
funds for scholarships to outstanding senior students who plan to enter the business




 





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world in the field of public relations. The University plans to double this endowment
through other outside gifts. Mr. Guthrie seconded the motion, and it passed. (See FCR 7
at the end of the minutes.)

       Y.    Agreement between University of Kentucky and Kentucky Healthcare
Enterprise, Inc. (FCR 8)

       Mr. Hardymon said FCR 8 is a modification of the agreement between the
University of Kentucky and Kentucky Healthcare Enterprise, Inc. which was negotiated
pursuant to the Board 's Resolution of December 12, 1995 authorizing the University's
participation in the development of a health care services corporation to manage, provide
and deliver medical services to the citizens of the Commonwealth. He reviewed the
changes in the agreement, noting the change in name from Health Associates of Kentucky,
Inc. to Kentucky Healthcare Enterprise, Inc. He said the agreement would be reviewed
again in June 2000. He moved approval of FCR 8. His motion, seconded by Mr. Reed,
carried. (See FCR 8 at the end of the Minutes.)

      Z.    A Resolution Authorizing the University's Participation in the Continued
Funding and Support of the CHA Integrated Delivery System (FCR 9)

      Mr. Hardymon said FCR 9 is a Resolution Authorizing the University's
Participation in the Continued Funding and Support of the CHA Integrated Delivery
System. This is a situation involving an integrated healthcare delivery system. The
system links together a group of providers of healthcare. It now involves 4,570
physicians, 66 hospitals, and 803 ancillary providers in Kentucky, Virginia, Tennessee
and West Virginia.

      He said that FCR 9 authorizes the expenditure of additional revenues of
University Hospital, not to exceed $17.7 million, which will be used along with funds
from other qualified investors to provide capitalization for the CHA system through its
holding company CHA Service Company and authorizes the President of the University
to execute all necessary documents and contracts to facilitate the University's continuing
investment in the CHA Service Company.

      He explained that the additional funding will be used to support the rapid growth
and development of the HMO by adding capital for new product development,
infrastructure development and reserves. He noted the system now provides health
benefits to over 195,000 people, and this rapid growth has presented start-up problems.
He said the Hospital Board and Finance Committee were working together on this item,
and thereby keeping everyone up-to-date. He moved approval of FCR 9. Dr.
Meriwether seconded the motion, and it passed. (See FCR 9 at the end of the Minutes.)




 





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