xt7vdn3zt07x https://exploreuk.uky.edu/dips/xt7vdn3zt07x/data/mets.xml Lexington, Kentucky University of Kentucky 1996022 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, 1996-02-april2. text Minutes of the University of Kentucky Board of Trustees, 1996-02-april2. 1996 2011 true xt7vdn3zt07x section xt7vdn3zt07x
AGENDA
Meeting of the Board of Trustees
University of Kentucky
5:00 P.M.
April 2, 1996
Invocation
Roll Call
Approval of Minutes
President's Report and Action Items
PR 1 President's Report to the Trustees
PR 2 Personnel Actions
PR 3 Central Administration
A. University Research Professorships
B. Honorary Degree Recipients
PR 4 Community College System
A. Associate Degree Program in the Community College
System Lexington Community College
B. Change in Division Structure Hopkinsville Community College
PR 5 Lexington Campus
A. New Academic Program
B. Reappointments/Appointments to University of
Kentucky Equine Research Foundation
C. Changes in the Articles of Incorporation of University of Kentucky
Humanities Foundation, Inc.
PR 6 Medical Center (No items to report)
Finance Committee
1. Interim Financial Report
2. Disposal of Surplus Property
3. Report of Leases
4. Approval of Lease
5. Disposition of Property
6. Patent Assignment - Research and Graduate Studies
7. Patent Assignment - Research and Graduate Studies
8. Patent Assignment - Research and Graduate Studies
9. Patent Assignment - Research and Graduate Studies
10. Patent Assignment - Research and Graduate Studies
11. Patent Assignment - Research and Graduate Studies
12. Patent Assignment - Research and Graduate Studies
13. Patent Assignment - Research and Graduate Studies
14. Ashland Inc. Challenge Grant
15. James C. and Ann J. Bowling Charitable Remainder Unitrust
16. Estate of Catharine Whitley Dulaney
17. Gheens Foundation, Inc. Gift and Pledge
18. James F. Hardymon Gift and Pledge
19. William A. Marquard, Jr. Gift
20. Telford Foundation, Inc. Gift
21. Wyatt, Tarrant & Combs Pledge
22. Estate of Ruth S. Brewer
23. Eaton Corporation Pledge
24. Soccer/Softball Complex Funding
25. A Resolution of the Board of Trustees of University of Kentucky
Authorizing the Issuance of Said Board's Housing and Dining
System Revenue Bonds, Series P, to be Dated the First Day
of the Month in Which Sold; Authorizing Proper Proceedings
Relative to the Public Sale of the Bonds and the Disposition of
the Proceeds Thereof, Authorizing Execution of an Eighth
Supplemental Trust Indenture Between the Board and Farmers
Bank & Capital Trust Company, Frankfort, Kentucky, as
Trustee, in Compliance with the Provisions of the Trust Indenture
Dated June 1, 1965
26. Appointment of External Auditor
Investment Committee
Investment Committee Report
Minutes of the Meeting of the Board of Trustees of the University of
Kentucky, Tuesday, April 2,1996.
The Board of Trustees of the University of Kentucky met at 5:00 p.m.
(Lexington time) on Tuesday, April 2, 1996 in the Board Room on the 18th
floor of Patterson Office Tower.
A. Meeting Qpened
Governor Edward T. Breathitt, Chairperson, called the meeting to order
at 5:00 p.m., and the invocation was pronounced by Mr. Ted Bates.
B. Roll Call
The following members of the Board of Trustees answered the call of
the roll: Governor Edward T. Breathitt (Chairperson), Mr. Ted Bates,
Mrs. Kay Shropshire Bell, Mr. Shea Chaney, Mr. Paul W. Chellgren, Mr.
Robert N. Clay, Mr. James F. Hardymon, Dr. Robert P. Meriwether, Mr. Billy
Joe Miles, Professor Jim Miller, Dr. Elissa Plattner, Professor Deborah Powell,
Mr. Steven S. Reed, Mr. C. Frank Shoop, Mrs. Marian Moore Sims, Mrs. Lois
C. Weinberg, Mr. Martin Welenken, and Mr. Billy B. Wilcoxson. Absent
from the meeting were Mr. Merwin Grayson and Professor Loys Mather. The
University administration was represented by President Charles T.
Wethington, Jr.; Vice Presidents Joseph T. Burch, Edward A. Carter, and
Eugene Williams; Robert Lawson, Assistant to the President for
Administrative Affairs; George DeBin, Assistant to the President for Fiscal
Affairs; 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 5:03 p.m.
C. Approval of Minutes
Governor Breathitt said that the Minutes of the Board meeting on
January 23, 1996 had been distributed and asked for any additions or
corrections. The Minutes were approved as distributed.
D. President's Report to the Board of Trustees (PR 1)
President Wethington announced that there would be a celebration in
Rupp Arena at 7:00 p.m. in honor of the basketball team, its coaching staff and
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others. He said that a Resolution had been prepared in honor and support of
the basketball team and asked Governor Breathitt to read the Resolution.
Governor Breathitt read the following Resolution:
WHEREAS, the 1995-96 University of Kentucky Wildcat basketball
team has brought tremendous glory to the University by winning the NCAA
national men's basketball championship for a sixth time, and
WHEREAS, each member of the UK Wildcat basketball team has
proved to be a fine representative of this University, both on and off -the
basketball court, during the entire 1995-96 basketball season, and
WHEREAS, under the capable leadership of Coach Rick Pitino and his
assistants the team has been successful in capturing the hearts of Kentuckians
all across the state, and UK fans everywhere, and
WHEREAS, the UK Wildcats were the first in more than 40 years to go
undefeated throughout Southeastern Conference regular season play and
won more conference games than any other team in the history of thee
conference, and
WHEREAS, the Wildcats continued their spectacular play by capturing
the Midwest Regional of the NCAA before advancing to the Final Four, and
WHEREAS, the Wildcats, through their unquestioned talent,
exceptional teamwork and unselfish play, have brought a fantastic amount of
pride and national attention to their University,
NOW THEREFORE BE IT RESOLVED, that the University of Kentucky
Board of Trustees officially gives its highest commendation and registers its
greatest appreciation to Coach Rick Pitino and the University of Kentucky
Wildcats for bringing the NCAA national championship back where it
belongs, the University of Kentucky. This Board, and the citizens of the
Commonwealth of Kentucky, shall be forever grateful to the 1995-96 team for
its championship achievements and accomplishments.
Professor Miller moved that the Resolution be adopted. Mrs. Sims
seconded the motion, and it carried unanimously. Governor Breathitt
expressed appreciation to President Wethington, C. M. Newton, the Board
and those in the Athletics Department responsible for this great turnaround
in the program and the great credit brought to the University.
President Wethington said he was delighted with the Resolution. He
thanked Mr. Newton for the leadership he had provided and congratulated
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the coaches and excellent group of young student athletes who represented
the University exceedingly well.
Professor Mather asked that a copy of the Resolution be sent to the
coaching staff and each member of the team, and it was so ordered.
President Wethington continued with his report and called attention
to the following items in PR 1:
1. UK is ranked among the top 10 public universities in the nation in
the number of freshman National Merit Scholars enrolled in the
fall 1995 semester.
2. The UK College of Medicine is among the top 10 primary care
medical schools in the United States for the sixth consecutive year,
according to U.S. News and World Report.
3. The Community College Partners in Progress Campaign tops $29.3
million in its successful effort to generate private funds in support
of our community colleges.
4. The first woman graduate of the Commerce College (now the
Gatton College of Business and Economics) was inducted into the
Hall of Fame along with Ronald G. Geary and Donald McWhorter.
5. The names of 78 College of Medicine faculty members were listed
among "Best doctors in the Midwest."
6. Professor Lee A. Edgerton has agreed to serve a second year as the
academic ombud for the 1996-97 academic year.
7. Six inductees will be added to the Kentucky Journalism Hall of
Fame on April 10 during ceremonies at the Singletary Center for the
Arts. The new members are: Betty J. Berryman, the late Mary
Caperton Bingham, Max Heath, the late Keen Johnson, the late
Daniel Rudd and William E. Summers III, a leader in the broadcast
industry and the first African American in the country to manage a
radio station.
8. The community colleges have teamed up with the College of
Engineering for training in Toyota lean manufacturing in other
places of the state.
9. The College of Communications has received favorable attention
for its high ranking in the number of doctoral degrees granted and
the number of telecommunications articles published.
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President Wethington invited the members to read the other items in
the report about the University at their leisure.
E. 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. Welenken moved approval.
His motion, seconded by Mr. Hardymon, carried. (See PR 2 at the end of the
Minutes.)
F. University Research Professorships (PR 3A)
President Wethington expressed pleasure in recommending that the
Board approve the naming of Professors Ronald Bruzina, Department of
Philosophy, Thomas Pirone, Department of Plant Pathology, and Andrew
Sih, School of Biological Sciences, as University Research Professors for 1996-
97. He noted that the purpose of the Research Professorships is to enhance
and encourage scholarly research productivity, provide an opportunity for
concentrated research effort for selected faculty members, recognize
outstanding research achievement by members of its faculty, emphasize its
research function, and to publicize its research accomplishments in order that
the research function of the University be appropriately recognized and
understood. The University of Kentucky Research Foundation supports
these grants to the department in the amount of $30,000 per researcher.
Professor Powell moved approval of PR 3A. Mr. Chellgren seconded the
motion, and it passed. (See PR 3A at the end of the Minutes.)
Professors Bruzina, Pirone and Sih were in attendance. They were
asked to stand and be recognized, following which they received a round of
applause.
G. Honorary Degree Recipients (PR 3B)
President Wethington recommended that approval be granted to
awarding the honorary degree of Doctor of Arts to John Henry, Doctor of
Humanities to Jean Weiss Calvert, and Doctor of Science to John R. Hall. He
noted that the candidates have been recommended by the Graduate Faculty
and the University Senate. He briefly reviewed the biographical sketches of
the candidates and expressed pleasure in recommending approval. Mr. Miles
moved approval. His motion, seconded by Professor Mather, carried. (See PR
3B at the end of the Minutes.)
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President Wethington reported that Mr. John Hall had been asked to
deliver the graduation speech and has consented to do so.
H. Associate Degree Program in the Community College System -
Lexington Community College (PR 4A)
President Wethington recommended that the Board authorize for
submission to the Council on Higher Education a new degree program,
Associate Degree in Applied Science, Environmental Science Technology, for
the Lexington Community College. He reminded the Board that the Council
on Higher Education has to approve all degree programs, and approval by the
Board of Trustees is required prior to submission to the Council for
consideration. The motion, made by Mrs. Weinberg and seconded by Mrs.
Sims, passed. (See PR 4A at the end of the Minutes.)
I. Change in Division Structure - Hopkinsville Community
College (PR 4B)
President Wethington recommended that the Division of Math
Science and Related Technologies at Hopkinsville Community College be
reorganized into two divisions: Math, Physical Sciences and Related
Technologies, and Biological Sciences, Health and Related Technologies. He
said that the recommendation has been reviewed and recommended by the
faculty and Advisory Board at Hopkinsville Community College. Professor
Miller moved approval. His motion, seconded by Mr. Shoop, carried. (See
PR 4B at the end of the Minutes.)
J. New Academic Program (PR 5A)
President Wethington recommended that the Board authorize the
approval of a new degree program, Master's in Engineering. He said that the
program will be offered through off-campus modes of delivery and is an
individualized program of study. These programs will cluster in five areas of
concentration: environmental, manufacturing, mining, electronics and
process controls, and advanced processing systems. He said that the program
will be managed by a director of graduate studies, and there will be about 35
students pursuing the degree at the end of five years. Mrs. Sims moved
approval. Mrs. Weinberg seconded the motion, and it passed. (See PR 5A at
the end of the Minutes.)
K. Reappointments/Appointments to University of Kentucky
Equine Research Foundation (PR 5B)
President Wethington recommended that approval be given to the
reappointment of the following persons to the Board of Directors of the
University of Kentucky Equine Research Foundation for four-year terms
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ending December 14, 1999: Mr. Duncan Alexander, Miss Helen Alexander,
Mrs. Margaret Glass, Mr. James Hill, IV, Sheikh Maktoum Bin Rashid Al
Maktoum, Ms. Virginia Payson and Mr. John Williams. The new
appointments are Mrs. Francois Boutin and Dr. Merl Hackbart. He expressed
pleasure in recommending the appointments and reappointments to the
Board of Directors of the Equine Research Foundation. Mr. Clay moved
approval. His motion, seconded by Mr. Shoop, carried. (See PR 5B at the end
of the Minutes.)
L. Changes in the Articles of Incorporation of University of
Kentucky Humanities Foundation, Inc. (PR 5C)
President Wethington recommended that approval be given to the
changes in the Articles of Incorporation of the University of Kentucky
Humanities Foundation, Inc. These changes reflect the current
administrative structure at the University of Kentucky. They replace the
Director of the Honors program with the Director of the Gaines Center. In
addition, an alumnus member and a student member have been added to the
Board, changing the number of members from 15 to no fewer than 15. The
motion, made by Mr. Shoop and seconded by Mr. Chellgren, passed. (See PR
5C at the end of the Minutes.)
M. Acceptance of Interim Financial Report for the University of
Kentucky for the Eight Months Ended February 29, 1996 (FCR 1)
Mr. Hardymon, Chairperson of the Finance Committee, reported that
the Finance Committee met and reviewed 26 items on the agenda. He said
that FCR 1 is the monthly financial report for the eight months that ended
February 29. He noted that the state appropriations and student fees are
running 75% and 95% respectively of the budget. As of February 29, 75% of
the income is in and the University has an expenditure of 66% of the
approved budget. He said that this is consistent with prior years, and there is
good cash flow to support the operations. He moved approval of FCR 1. Mr.
Chellgren seconded the motion, and it carried. (See FCR 1 at the end of the
Minutes.)
N. Disposal of Surplus Property (FCR 2)
Mr. Hardymon reviewed the items in Attachment I and moved that
the Board approve the disposal of surplus property as described in the
attachment to FCR 2. His motion, seconded by Mrs. Bell, passed. (See FCR 2
at the end of the Minutes.)
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0. Report of Leases (FCR 3)
Mr. Hardymon reviewed the lease agreements in FCR 3 and moved
that the Board accept the President's Report of the lease agreements not
exceeding $30,000 in value. Mr. Chellgren seconded the motion, and it
carried. (See FCR 3 at the end of the Minutes.)
P. Approval of Lease (FCR 4)
Mr. Hardymon said that FCR 4 is an addendum of a lease that is in
excess of $30,000 between the University of Kentucky (Managed Care) and
CHM Property Partners. This addendum will add 3,619 square feet of office
space at an annual rental rate of $37,095. It brings the total amount of the
lease to $97,962 which is $10.25 a square foot. He moved approval of FCR 4.
His motion, seconded by Mr. Welenken, carried. (See FCR 4 at the end of the
Minutes.)
Q. Disposition of Property (FCR 5)
Mr. Hardymon moved that the Assistant to the President for Fiscal
Affairs be authorized to sell road frontage of property located at 118, 122, 156-
164 and 220 Virginia Avenue, 701 South Limestone, and 744-780 and 793-795
Press Avenue, Lexington, Kentucky, to the Lexington-Fayette Urban County
Government. The land needed for the widening of Virginia Avenue has
been fairly appraised by the University and Urban County Government, and
the agreed upon value is $475,325. Professor Miller seconded the motion, and
it passed. (See FCR 5 at the end of the Minutes.)
R. Patent Assignments (FCR 6 through 13)
Mr. Hardymon said that there were eight patent assignments. He
requested that he be allowed to review all eight assignments and have the
Board vote one time. His request was approved. He then reviewed the
patent assignments.
Mr. Hardymon said that FCR 6 is an invention that involves a method
for extending the survival time of lung tissue. This method comprises
flushing the lung tissue with a preservative solution which extends the life,
and under certain conditions, the lung is preserved.
Mr. Hardymon said that FCR 7 is an invention that provides a method
for scanning DNA sequence data banks to identify genetic regions or genes
coding for certain biologically proteins.
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Mr. Hardymon reported that FCR 8 involves a method of testing field
programmable gate arrays (FPGAs) including the step of configuring
programmable logic blocks of the FPGAs for completing a built-in self-test.
Mr. Hardymon said that FCR 9 involves an invention that provides a
method for assessing tool-wear and predicting tool-life for a selected cutting
tool performing a machining operation. The method includes the calculation
of a tool-life for the coated, grooved cutting tool.
Mr. Hardymon said that FCR 10 involves an invention for certain
improvements in Method of Absorbing Acidic Gases. This invention
provides a method for removing undesirable acidic gases from a
multicomponent gas stream utilizing flue gas desulfurization waste.
Mr. Hardymon reported that FCR 11 involves certain improvements
in Transgenic Mice Which Overexpress Nerve Growth Factor. The nerve
growth factor expressed by these transgenic mice are useful in the study of
neurodegenerative disorders in the brain such as Parkinson's syndrome and
Alzheimer's disease.
Mr. Hardymon said that FCR 12 involves certain improvements in
Chromatographic Separation Apparatus. This invention provides an
apparatus for the monitoring of a column chromatograph separation process.
The apparatus includes a segmented column with a seal positioned to the
joint defined by the segments of the column. A connector is provided for
connecting the segments of the column together. The apparatus further
includes a sensor for monitoring an analyte in an eluant within a separation
zone of the column. The sensor includes a mesh grid made of optical fibers
or metal wires which is placed so as to extend through the separation zone of
the column. It will allow you to move the segments around and alter them
during the time of testing to try to get the right solution.
Mr. Hardymon reported that FCR 13 is an invention that provides a
pharmaceutical composition of canavanine, and a method for treatment of
cancer, particularly pancreatic cancer with L-canavanine.
Mr. Hardymon moved approval of FCR 6 through FCR 13. His
motion, seconded by Dr. Meriwether, carried. (See FCR 6, 7, 8, 9, 10, 11, 12, and
13 at the end of the Minutes.)
S. Ashland Inc. Challenge Grant (FCR 14)
Mr. Hardymon stated that FCR 14 is a recommendation that the Board
accept a challenge grant of $200,000 by Ashland Inc. of Ashland, Kentucky, to
the College of Law to establish and endow an Ashland Inc. Chair of Excellence
in Law and an Ashland Inc. Scholars Fund. The challenge requires the
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college to raise $400,000 in matching funds. He reported that the $200,000
which will be paid over four years beginning this year will be added to an
existing College of Law fund of approximately $575,000 that resulted from a
1988 challenge grant by Ashland Inc. He said that accrued earnings and other
gifts will put this fund over $1 million in 1999 at which time the college will
recruit the first chairholder of the Ashland Inc. Chair of Excellence in Law.
He moved that the Board accept the challenge grant. Dr. Meriwether
seconded the motion and it passed. (See FCR 14 at the end of the Minutes.)
T. James C. and Ann 1. Bowling Charitable Remainder Unitrust
(FCR 15)
Mr. Hardymon moved that the Board accept the James C. and Ann J.
Bowling Charitable Remainder Unitrust valued at $1,014,875. Mr. Bowling is
a native Kentuckian and a retired senior vice president and member of the
Board of Directors of Philip Morris, Inc. The unitrust designates $100,000 of
the corpus to the Sanders-Brown Center on Aging and the balance for the
president of the University to establish an endowed chair of his choice. His
motion, seconded by Mr. Wilcoxson, carried. (See FCR 15 at the end of the
Minutes.)
U. Estate of Catharine Whitley Dulaney (FCR 16)
Mr. Hardymon recommended that the Board accept from the Estate of
Catharine Whitley Dulaney an initial distribution for $200,000, which with
additional anticipated distributions of $1,331,000 will benefit the W. T. Young
Library construction fund. Miss Dulaney was born in Cincinnati, Ohio, on
May 5, 1908 and graduated from the University of Kentucky in 1931. He
moved approval of this fine gift. Mr. Chellgren seconded the motion, and it
passed. (See FCR 16 at the end of the Minutes.)
V. Gheens Foundation. Inc. Gift and Pledge (FCR 17)
Mr. Hardymon recommended that the Board accept a gift of $150,000
and a pledge of $200,000 from the Gheens Foundation, Inc. of Louisville,
Kentucky, to the College of Law to establish the Laramie L. Leatherman
Distinguished Professorship in Tax Law. The late Laramie L. Leatherman, a
1953 College of Law graduate, was a prominent Louisville attorney and vice
president of the Gheens Foundation, Inc. at his death in 1994. Mr.
Leatherman had given $150,000 to the College for a professorship. This
contribution of $350,000 in memory of Mr. Leatherman will enhance that
professorship, and it will be renamed the Laramie L. Leatherman
Distinguished Professorship in Tax Law. The pledge will be paid in equal
installments in December of 1996 and 1997. He moved approval of FCR 17.
His motion, seconded by Mr. Reed, carried. (See FCR 17 at the end of the
Minutes.)
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W. James F. Hardymon Gift and Pledge (FCR 18)
Since FCR 18 involved Mr. Hardymon, Governor Breathitt took the
floor.
Governor Breathitt recommended that the Board accept a gift of $33,486
toward a pledge of $100,000 from James F. Hardymon of Providence, Rhode
Island, in support of capital projects at the University of Kentucky. Mr.
Hardymon is the Chairperson of the Finance Committee and the Chairman
and Chief Executive Officer of Textron Corporation. He is a member of the
UK Board of Trustees and holds both a bachelor's and master's degree in civil
engineering from the University. He is a native of Maysville, Kentucky. His
gift of $33,486 represents the first payment of a three-year pledge of $100,000
for capital projects to be identified by the Office of the President. He moved
that the gift be accepted with gratitude. Mrs. Weinberg seconded the motion,
and it carried unanimously. (See FCR 18 at the end of the Minutes.)
X. William A. Marquard. Jr. Gift (FCR 19)
Mr. Hardymon recommended that the Board accept from William A.
Marquard, Jr. of Carlisle, Kentucky, a gift of $104,781.25 to benefit the W. T.
Young Library. Mr. Marquard was president and board chairman of
American Standard, Inc., an air conditioning, building and transportation
products manufacturer headquartered in New York City. He owned
Eaglestone Farm in Nicholas County. Mr. Hardymon moved approval of
FCR 19. His motion, seconded by Mrs. Sims, passed. (See FCR 19 at the end of
the Minutes.)
Y. Telford Foundation, Inc. Gift (FCR 20)
Mr. Hardymon recommended that the Board accept a gift of $107,500
from Telford Foundation, Inc. of Naples, Florida, to the College of Medicine
for ovarian cancer research. The Telford Foundation, established by the late
Robert L. and Marie K. Telford, makes an annual contribution to the College
of Medicine for ovarian cancer research. Mr. Telford was the Chairman of the
Board of Mason and Hanger-Silas Mason Company, Inc. of Lexington. Mr.
Hardymon moved approval of FCR 20. Dr. Powell seconded the motion, and
it carried. (See FCR 20 at the end of the Minutes.)
Z. Wyatt. Tarrant & Combs Pledge (FCR 21)
Mr. Hardymon recommended that the Board accept a pledge of $100,000
from Wyatt, Tarrant & Combs of Louisville and Lexington, Kentucky, for a
professorship in the College of Law. Wyatt, Tarrant & Combs established a
professorship in its name in the College of Law in 1989. This pledge is
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continuation funding of that program. The pledge will be paid in five $20,000
installments beginning this year. He moved approval of FCR 21. His motion,
seconded by Mr. Sims, passed. (See FCR 21 at the end of the Minutes.)
AA. Estate of Ruth S. Brewer (FCR 22)
Mr. Hardymon recommended that the Board accept from the Estate of
Ruth S. Brewer a distribution of $184,839 to establish an endowed scholarship
fund at Elizabethtown Community College. Mrs. Brewer was a civic leader
and the widow of L. F. Brewer, who owned an automobile dealership in
Hardin County for many years. Distributions from the estate for the Ruth S.
Brewer Endowed Scholarship Fund now total $227,853. He moved approval
of FCR 22. Mr. Welenken seconded the motion, and it carried. (See FCR 22 at
the end of the Minutes.)
BB. Eaton Corporation Pledge (FCR 23)
Mr. Hardymon recommended that the Board accept a pledge of $100,000
from Eaton Corporation of Henderson, Kentucky to the Henderson
Community College's Partners in Progress Campaign for the Tri-County
Technology Center. Eaton Corporation is a worldwide manufacturer of
advanced technology products for automotive, electronics, and capital goods
markets. The Henderson plant manufactures axles and brakes. The first
$25,000 payment will be made when ground is broken for the technology
center. The company will then make three annual payments of $25,000. Mr.
Hardymon moved approval of FCR 23. His motion, seconded by Mr.
Chellgren, passed. (See FCR 23 at the end of the Minutes.)
CC. Soccer/Softball Complex Funding (FCR 24)
Mr. Hardymon recommended that the Board approve an allocation of
$990,000 from the Intercollegiate Athletics Quasi-Endowment for the purpose
of providing partial funding for the Soccer/Softball Complex project. The
project has a total estimated project cost of $1,500,000. The Athletic
Association has a total of $510,000 toward the estimated project cost of
$1,500,000. They are projecting that all of this will be funded by private
donations. The $990,000 needs to be moved to get the construction started on
the Soccer/Softball Complex. He moved approval of FCR 24. Mr. Clay
seconded the motion, and it carried. (See FCR 24 at the end of the Minutes.)
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DD. A Resolution of the Board of Trustees of University of Kentucky
Authorizing the Issuance of Said Board's Housing and Dining System
Revenue Bonds, Series P. to be Dated the First Day of the Month in Which
Sold; Authorizing Proper Proceedings Relative to the Public Sale of the Bonds
and the Disposition of the Proceeds Thereof; Authorizing Execution of an
Eighth Supplemental Trust Indenture Between the Board and Farmers Bank
& Capital Trust Company. Frankfort. Kentucky as Trustee. in Compliance
with the Provisions of the Trust Indenture Dated June 1. 1965 (FCR 25)
Mr. Hardymon said that FCR 25 is the authorization to explore a bond
issue. If there is satisfactory progress on this, the final bids will be brought to
the Board on April 30, 1996 for the Board's approval. This is for funds for the
renovation of Donovan Hall, Haggin Hall, and Greg Page Stadium View
Apartments. It represents $2,140,000. With the present interest rate and the
desire of people to loan money, this should be an attractive item. He moved
approval of FCR 25. Mr. Reed seconded the motion, and it passed. (See FCR
25 at the end of the Minutes.)
EE. Appointment of External Auditor (FCR 26)
Mr. Hardymon said that every four years the University asks for
proposals to work with the University as external auditor. FCR 26 involves
the years 1996-1999. He reported that three bids were received. The lowest bid
was extremely attractive because it is a lesser amount ($89,000) than the
University has been paying on an annual basis. It involves no escalation
from year to year and includes expenses. He announced that Deloitte &
Touche were the low bidders. The firm has other higher education
experience both in the consulting side and the auditing side. Their bid was
very competitive. He said that the scope of the audit has been reviewed with
them, and they are in agreement with the scope of the audit. He moved
approval of FCR 26. His motion, seconded by Mr. Welenken, carried. (See
FCR 26 at the end of the Minutes.)
FF. Investment Committee Report
Governor Breathitt reminded the Board that at the last meeting the
Chairperson of the Investment Committee was asked to give a report at this
meeting. He said that the Committee has been doing a lot of work, and it is
important that the Board knows what the Committee is doing. He called on
Mr. Wilcoxson, Chairperson of the Investment Committee, to give the report.
Mr. Wilcoxson explained that the Investment Committee is
responsible for the oversight of endowment investments of the University of
Kentucky and its affiliated corporations. The endowment investments had a
market value of $156 million on December 31, 1995.
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He reported that the endowment experienced tremendous growth
during the last 15 years, increasing in market value from $5.3 million in 1980
to its current value of $156 million. This growth and the increased
importance of the endowment to University programs caused the Investment
Committee to undertake a com