xt7wh707xd26 https://exploreuk.uky.edu/dips/xt7wh707xd26/data/mets.xml Lexington, Kentucky University of Kentucky 1958099 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, 1958-09-dec9. text Minutes of the University of Kentucky Board of Trustees, 1958-09-dec9. 1958 2011 true xt7wh707xd26 section xt7wh707xd26 Minutes of the Meeting of the Board of Trustees of the University of Kentucky December 9, 1958. The Board of Trustees of the University of Kentucky met in the President' s Office at 9:15 a.m. CST, Tuesday, December 9, 1958, with the following members present: Robert P. Hobson, Vice Chairman; Harper Gatton, Dr. Paul Hall, Ben Butler, Robert C. Stilz, W. F. Foster, Robert R. Martin, Wood Hannah, Sr., Clifford Smith and Dr. Ralph J. Angelucci. Absent: Governor Albert B. Chandler, Louis Cox, Mrs. Paul G. Blazer and J. Stephen Watkins. President Frank G. Dickey and Secretary Frank D. Peterson met with the Board. A. Approval of Minutes. Upon motion duly made, seconded and carried, the meeting of the Board of Trustees of September 16, 1958, and the meeting of the Execu- tive Committee of November 8, 1958, were approved as published. B. Financial Report of the Treasurer. Mr. Peterson reported to members of the Board the printed financial report for 1957-58 and called attention to pages 5, 6, 7, 8, 9, 10 and 11, giving the summary of the scope of the report, current income and expenditures, and the break-down of various funds. He also reported on the bonded indebtedness of the University as shown on pages 38 and 39 of the printed report. He urged the members of the Board to study the report for a better understanding of the operations of the University. Mr. Peterson stated that the 1957-58 fund dollar came from the following sources: 42% from State Appropriation 18% frorrn Federal Appropriations 2% from Gifts and Endowment Income 14% from Sales and Services 9% from Student Fees 4% from Residence Halls Operations, and 11% from Other Self-Supporting Enterprises. The Vice President, Business Administration, then submitted to each member of the Board a copy of the current financial report for the period July 1 to and including November 30, 1958. The report summarized income and expenditures for the period. A balance sheet for current loan and endowment funds was submitted as follows: UNIVERSITY ' OF KENTUCKY LEXINGTON December 8, 1958 Dr. Frank University Lexington, G. Dickey, President of Kentucky Kentucky Dear Doctor Dickey: I am submitting herewith the Financial Report of the University of Kentucky for the five-months period ended November 30. 1958. This report contains a balance sheet and related financial statements for all funds of the Univer- sity. The Current General Fund budgetary operations for the period reflect income realized for educational and general purposes in the amount of $7, 108, 251. 17, or 53.9% of the budget estimate of $ 13, 179, 630. 13. The expenditures, including encumbrances outstanding, amounted to $5, 303, 018. 65. This represents 410 3% of the total Current General Fund Ap- propriations of $12,842,461.95. Respectfully submitted, Frank D. Peterson Vice President Business Administration a University of Kentucky Balance Sheet November 30, 1958 ASSE TS I. Current Funds A. General- Cash in Bank Available Balance, State Appropriations Cash on Deposit, State Treasurer Inventories Deferred Charges Unrealized Income Total General B. Restricted- Cash in Bank Petty Cash Advances Investments Total Restricted Total Current Funds II. Loan Funds: Cash in Bank Notes Receivable Inve stments Total Loan Funds III. Endowment Funds: Cash in Bank Inve stments $ 604,319.57 1,278,056.25 866,503.69 280,308.61 52,666.20 6,353,786.31 $ 9,435,640.63 $ 538,892.52 14,035.26 1,696,866.62 2,249,794. 40 $11,685,435. 03 $ 114,937. 25 $ 10, 204-58 50,232.67 54. 500. 00 $ 7, 559.34 226,305.62 Total Endowment Funds $ 233,864.96 b University of Kentucky Balance Sheet November 30, 1958 LIABILITIES I. Current Funds A. General- Reserve for Dept. Requisitions Reserve for Inventories Reserve for Auxiliary Enterprises O the r Liabilitie s A ppropriation Balance U nappropriated Surplus - Division of Colleges $230, 898. 29 Medical Center 4, 39 0. 09 Agricultural Exp. Sta. 179,875.84 Total General B. Restricted- Outstanding Check Liability Restricted Funds Balances $ 821,679.91 280, 308.6 1 43,993.24 52, 666.20 7,821,828.45 415, 164. 22 $ 9,435,640.63 $ 6,415.94 2, 243, 378.46 Total Restricted 2, 249, 794. 40 $11, 685, 435. 03 Total Current Funds II. Loan Funds: Principal Balances Expendable Balances Total Loan Funds IlI. Endowment Funds: Principal Balances Expendable Balances $ 73,424. 81 41,512.44 $ 114,937. 25 $ 228,242.41 5, 622. 55 Total Endowment Funds $ 233,864.96 C University of Kentucky Balance Sheet November 30, 1958 ASSE rs IV. Plant Funds: A. Unexpended Plant Funds Available Balance, State Appro' s. Cash on Deposit, State Treasurer Total Unexpended Plant Funds B. Retirement of Indebt. Funds- Cash in Bank Cash on Deposit,State Treas. Cash on Deposit, Trustee Due from Other Funds (Gen. Fund) Investments Unrealized Income Total Retirement of Indebted- ness Funds C. Invested in Plant- Land Buildings Equipment Construction in Progress Total Invested in Plant Total Plant Funds V. Agency Funds: Cash in Bank Investments $8,590, 013.58 445,493.00 $ 9,035,506.58 $ 13,506.86 319,119.82 285, 896.90 3,100.51 98,394.38 105,096.43 825, 114.90 $ 3,070,630.43 35,144,243.25 10, 737, 148.03 9,269,386.25 58,221,407.96 $68,082, 029,44 $ 110,826.32 16,396.37 Total Agency Funds $ 127, 222. 69 d University of Hentucky Balance Sheet November 30, 1958 LIABILITIES IV. Plant Funds: A. Unexpended Plant Funds- Reserve for Plant Requisi. Plant Appropriation Balance Total Unexp. Plant Funds B. Retirement of Indebt. Funds - Funds Balances Total Retirement of In- debtednIess Funds C. Invested in Plant- Bonds Payable Due to Other Gov. Units Net Investment in Plant Total Invested in Plant $ 6,976,001.72 2, 059, 504. 86 $ 9, 035, 506.58 $ 825, 114.90 825, 114.90 $11,418, 000.00 150, 000. 00 46, 653, 407. 96 58, 221,407.96 Total Plant Funds $68, 082, 029. 44 V. Agency Funds: Agency Funds Balances $ 127, 222.69 Total Agency Funds $- 127,22Z.69 e University of Kenttucky Statement of Unrealized Income For the Current Fiscal Period Which Began July 1, 1958 and Ended November 30, 1958 GEN I. Educational and General: A. Student Fees. Incidental Fees and Tuition Training School Fees Adult and Extension Educa. Fees Total Student Fees B. State Appropriations- Division of Colleges Medical Center Geological Projects Agricultural Experiment Station Agricultural Extension Service Total State Appropriations C. Federal Grants- Division of Colleges Agricultural Experiment Station Agricultural Extension Service Total Federal Grants D. Endowment Income E. Sales & Services of Educa. Depts.. Division of Colleges Agricultural Experiment Station Total Sales and Services of Educational Depts. F. Returned Checks Total Educa, and General Ll. Service Enterprises: Post Office III Auxiliary Enterprises: Men, s Residence Halls Women' s Residence Halls Total Auxiliary Enterpr. Total Gen.Fund Income ERAL FUND Estimated $ 1, 405,000. 00 31, 000.00 102, 000. 00 I N C O M E Reai1 $ 716,499.99 107650.00 56, 638 .4 0 o Unrealized $ 688, 500.01 20, 3 50. 00 45, 361 . 60 $ 1,538,000. 00 $ 783, 788, 39 $ 754,211.61 $ 5, 639 ,000. 00 $3. 059. 000, 00 $2, 580, 00000 438.400.00 235 000. 00 203,400.00 183 300. 00 165 ZOF 2 00 18 F1 00.00 804,000, 00 492,000, 00 312,000.00 931,000. 00 47100o 00 460,000.00 $ 7,995. 700, 00 $4,422,200, 00 $3, 573, 5 00O00 $ 142, 177,60 $ 97,423,20 $ 44`754.40 867F822.00 502,458.00 365,364.00 1,955,811. 03 1,001,014, 39 954,796O64 $ 2,965,810.63 $i1,600,895,59 $1,364,915.04 $ 10,119.50 $ 8,700.00 $ 1,419.50 $ 20,000.00 $ 12,232.54 $ 7,767 46 650,000,00 281,650.79 368.,349,21 $ 670,000.00 $ 293,883.33 $ 376,116,67 $ $ (1,216. 14) $ 1,216.14 $13, 179,630.13 $7,108,251. 17 $6,071 ,378.96 $ 4,000. 00 $ 6,025.98 $ (2,025t98) $ 202,074.00 $ 120`683.22 $ 81,390,78 402,861. 00 199,818,45 203,042,55 $ 604,935. 00 $ 320,501.67 $ 284,433.33 $13, 788,565. 13 $7,434,778.82 $6,353,786.31 (negative figure) f University of K-entucky Statement of Departmental Appropriations For the Current Fiscal Period Which Began July 1, 1958 and Ended November 30, 1958 I. Educational and General: A. General Admin. Offices B. General Expenses- Student Services Staff Welfare Gen. Institutional Serv. Total Gen. Expenses Departmental Expendi- Enc urn - Appropriation tures brances Balance $ 185,512.12 $ 56,426,07 $ 1,627,91 $ 127,458.14 $ 304,315.76 $ 116,056.91 $ 10,264.48 $ 177,994237 98,000.00 28,781.40 69,218.60 160,905.66 56,090.09 22,723.63 82,091.94 $ 563,221.42 $ 200,928.40 $ 32,988.11 $ 3292304.91 C. Instruction and Depart- mental Research College of Agr. and Home Economics College of Arts and Sciences College of Commerce College of Education College of Engineering College of Law College of Medicine College of Pharmacy Graduate School Univ. Extended Program Total Instruction and Departmental Res, D. Activities Relating to Educa. Departments E. Organized Research - University Research Agr. Exp. Station Total Org. Research F. Extension and Pub. Serv. - Univ, Extension & Public Services Agr. Extension Serv. Total Extension & Public Service $ lS 399,605.05 2,088,549.44 260, 292.46 473,341.39 574,674.70 125,690,00 279,961.00 93,612.52 20,825.00 361,503.49 $ 153,532. 09 $ 8.320. 13 $ 237,752.83 793,455.23 101,631. 27 175,2.26.33 214,656.50 46,762.3 1 52,602, 04 28,860.9 3 8,430. 98 135,205. 19 41,904 31 2, 487.67 12, 607.49 1,879.30 3, 302. 30 2,937.03 4,863.65 464, 03 12, 859. 52 1,253, 189.90 156, 173,52 285,507*57 358, 138.90 75.625,39 224,421.93 59, 887.94 11,929,99 213,438,78 $4,678,055. 05 $1, 710,362. 87 $ 9 1,625,43 $2,876, 066. 75 $ 51,218.00 $ 16,821.74 $ 2,851.17 $ 31,545,09 $ 174,636.00 $ 44,867.65 $ 42, 144.93 $ 87, 623. 42 2,281,708,27 884,644.87 90,921.54 1,306, 141,86 $2,456,344.27 $ 929,512,52 $133,066.47 $1,393,765.28 $ 370,041.40 $ 14,199.66 $213,871.16 $ 141,970.58 2, 886 , 811. 03 1,13 8 ,394. 9 8 7,108,28 1,741,307.77 $ 3,256, 852 43 $1,152,594.64 $220,979.44 $1,883,278.35 (continued on followving page) g University of Kentucky Statement of Departmental Appropriations For the Current Fiscal Period Which Began July 1, 1958 and Ended November 30, 1958 G. Libraries H. Oper. & Maintenance of Physical Plant Total Educa. and General II. Service Enterprises: Post Office III. Auxiliary Enterprises: Men' s Res. Halls Women, s Res. Halls Total Auxiliary Enterprises IV. Student Aid V. Working Capital VI. Clearing Accounts VII. Debt Service-Bonds Re- tired VIII. Debt Service-Reserve Funds Total Departmental Appropriations Departmental Expendi - Enc urn - Appropriation tures brances Balance $ 456,768.66 $ 193,165.55 $ 8,469.52 $ 255,133,59 $ 1, 194,490.00 $ 417,557.05 $134.041.76 $ 642,891,19 $12,842,461.95 $4,677,368.84 $625,649.81 $7,539,443.30 $ 26,080.00 $ 10,457.00 $ 157. 30 $ 15,465.70 $ 200,138.32 $ 148,745.07 $ 9,574.69 $ 41,818.56 396,181.13 193,376.38 28.292,75 174,512,00 $ 596,319,45 $ 342,121.45 $ 37,867.44 $ 216,330.56 $ 3,600.00 $ 600.00 $ $ 3,000.00 $ 75,000.00 $ (50,915.82)$ 91,762.82 $ 34,153.00 $ 11,953.51 $ (1,532.38) $ 50 00 $ 13,435,89 $ 43,060,00 $ 43,060,00 $ $ $ 6,256,50 $ 6,256.50 $ $ $13, 604,731. 41 $5,027,415 59 $7555487 37 $7,821,828.45 (negative figure) h University of Kentucky Statement of Plant Fund Appropriations For the Current Fiscal Period WhVhich Began July 1, 1958 and Ended November 30, 1958 Plant Appro- p ria tion s Expendi - tures Enc urn-- brances Balance I. Unexpended Plant Funds: Men, s New Dormitory Holmes Hall-Univ.Appro. Holmes Hall-Bond Proceeds Phi Delta Theta House Shawneetown Apartments College of Pharmacy Bldg. Swine Barn Medical School Med. School Fed. Grant Med. School Library Acquis. and Supplies Medical Science Bldg. Alpha Tau Omega House Northern Extension Center Western Extension Center Agr. Exp.Station-Projects Med. Center Heating and Cool ing Plant Med. Sci. Bldg. , Equip- Admin. Total Unexp. Plant Funds $ (200. 51) 52,544.5 1 10.55 77,369.01 11,393 .98 11, 163,37 171 703.96 75,000.00 100, 000.00 545,573,66 150,000.00 35,300.00 25,000.00 46; 122 7Q 3,279,561.00 $ (44,982.00) 52, 544.51 1(0. 55 11, 028.59 65,647. 12 61,26 1.30 8, 03 0. 40 291, 16 38,480.60 $ 2,434.36 $ (2,434. 36) 44, 781.49 77, 369.01 11,393.98 134.78 35 ,089.86 70,966,98 75,000.00 248.20 38,490.50 35,879.60 501,663.66 135,000.00 14,708.84 8,355.97 26,944.03 25,000,00 14,790.96 (7,148.86) 19,426,74 2,085,802. 30 1, 174,331.96 40, 000. 00 3 1, 697. 15 8,302. 85 $4,620, 542 23 $211,738.97 $2,349,298.40 $2,059, 504.86 II. Retirement of Indebt. Funds: A. Debt Service Fund- 1st P. W.A. Bond Issue 2nd P.W.A,Bond Issue Dorm, Rev, Bond Issue Aud. -Field House Issue Libr. -Service Bldg.Issue Stad. Add. Revenue Issue Dorm.Rev. Bond Issue (456 Rose St. ,Journ. Bldg. Issue Dorm. Rev. Issue (476 Rose) Dorm.Rev. Bonds of 1953- Stu. Dorms--U of K. Stu. Dorms, -Kappa Sigma Stu. Dorms. -Lambda Chi Alpha Stu. Dorms. -Phi Sigma Kappa Stu. Dorms -Pi Kappa Alpha Dorm. Rev. Bonds- 1952 Dorm, Rev. Bonds . 1954 Dorm. Rev, Bonds- 1955 1 Dorm. Rev, Bonds - 1956 Six Sororities $ $ 37,554.00 18,414. 16 24,980. 25 63, 720. 78 75,677.75 20,225.53 5,875,45 28, 235.75 5, 051.43 45,498.48 4,302.90 5,244. 79 3, 737.88 4,863.41 62,636 ,24 33,068.77 76,943 50 57; 828. 00 9,217.51 2,962.50 51, 853.50 4,445.00 2, 568. 75 3,325.30 2,922.50 $ 37, 554.00 9, 196. 65 22, 017,75 11,867. 28 71,232.75 17, 656. 78 2,550.15 28 ? 235 . 75 21 128,93 3,693.74 1, 846. 87 1, 846. 88 1,846.88 1, 846. 88 17, 683.75 10,400.64 45,276. 25 20,672,50 41,804. 74 2, 456.03 3,39 7, 91 1, 891. 00 3,016.53 44,952.49 22,668. 13 131, 667. 25 37,155,50 Balances Carried Forw&ard$ 673,859.07 (negative figure) $ 182,409,45 $ 491,449.62 $ i University of Kentucky Statement of' Plant Fund Appropriations For the Current Fiscal Period Which Began July 1, 1958 and Ended November 30, 1958 Plant Appro- priations Balances Brought Forward Dormitory Revenue Bonds- 1956-Reserve Dormitory Revenue Bonds- 1956-(338 Clifton Avenue) Dormitory Revenue Bonds 1956-(Holmes Hall) Dormitory Revenue Bonds- 1956 -(Shawneetown) Dormitory Revenue Bonds- 1957 (468 Rose St. ) Total Debt Service Fund Expendi- ture s Enc urn - brances Balance $ 673,859.07 $182,409.45 $ $ 49 1,449. 62 6, 250.00 6, 250.00 8, 386. 00 3, 175.00 5, 211. 00 48, 197.50 15, 551 25 32, 646. 25 59,438. 00 29, 645. 00 29, 793. 00 8, 33 1. 00 6, 200, 00 2, 13 1. 00 $ 804,461. 57 $236,980.70 $ $ 567,480.87 B.Sinking Fund Reserves with Dormitory Revenue Bonds- 1952-Re serve Dormitory Revenue Bonds- 1954-Reserve Dormitory Revenue Bonds- 1956-Reserve (Holmes Hall) Dormitory Revenue Bonds- 1956-Reserve (Shawneetow: Total Sinking Fund Re- serves with Trustee Total Retirement of In- debtedness Funds Total Plant Fund Appro- priations rus tee: TI 81 , 808. 00 $ $ $ 8 1, 808. 00 43 , 45 7. 00 43,457 00 59 , 243.72 59, 243. 72 n) 73,125.31 73, 125. 31 $ 257,634.03 $ $ $ 257,634.03 $ 1,062,095.60 $236,980.70 $ $ 825, 114 90 $ 5,682,637.83 $448,719.67 $2, 349, 29 8. 40 $2, 884, 619. 76 j University of Kentucky Statement of Other Fund Transactions For the Current Fiscal Period Which Began July 1, 1958 and Ended November 30, 1958 Restricted Funds: Funds Balances Loan Funds: Principal Expendable Subtotal Endowment Funds: Principal Expendable Subtotal Agency Funds: Balances Combined Totals Balances Disburse - Balances July 1, 1958 Receipts ments Nov. 30, 1958 $2,483, 804.90 $2,846,477.97 $3,086,904.41 $2,243,378.46 $ 73,4-24. 81 $ $ $ 73,4Z4.81 40,609.19 912.42 9.17 41,512.44 $ 114,034,00 $ 912 42 $ 9.17 $ 114,937,25 $ 226,642,41 $ 1, 600.00 $ $ 228,242.41 5,542. 78 79.77 5,622,55 $ 232,185. 19 $ 1,679.77 $ $ 233,864.96 $ 102,267.53 $ 536, 714.9 2 $ 511, 759.76 $ 127, 222 69 $2,932,291.62 $3,385,785.08 $3,?59 8, 673.34 $ 2,719,403. 36 13 Members of the Board, being duly advised, upon motion made and seconded, ordered the report received and made of record. C. Suit Authorized to Collect Student Loan. Mr. Peterson reported that Dean C. C. Carpenter, Chairman of the Student Loan Committee, approved a loan of $742. 00 several years ago to Mr. Carl Morgan, Hazard, Ky. Dean Carpenter has written Mr. Morgan five letters. He has also written Mr. Morgan' s mother one letter. None of these letters were returned or acknowledged. Mr. Morgan is a practising attorney in Hazard, Ky. Mr. Peterson further reported that Mr Charles Palmer, an attorney of Lexington, had written Mr. Morgan advising that the account had been turned over to him for collection. The letter was not re- turned or acknowledged. Mr. Peterson recommended that the Board au- thorize a suit to be filed against Mr. Carl Morgan and his surety for recovery of the loan. Upon motion duly made, seconded and carried, Mr. Pdtexzson was authorized to introduce suit against Carl M. Morgan for the purpose of col- lecting the loan. D. William Andrew Patterson School of Diplomacy and International Commerce Budget Approved. Mr. Pete rseon submitted the 1958-59 budget for the William Andrew Patterson School of Diplomacy and International Commerce. He explained that information was not available for budgetary purposes at the time the Board of Trustees considered other budgets of the University. The abbrevi- ated budget submitted will provide for a total expenditure of $4, 138. 52 for the current year. Mr. Peterson explained that the 1959 budget would be expanded. He recommended that the budget be approved. Upon motion duly made, seconded and carried, the budget was ap- proved as submitted and a copy was authorized filed in the records of this Board. E. Purchase of 233, 266 and 241 College View Property and House and Lot at 447 Clifton Avenue. Mr. Perso_ reported that he had been contacted by Mr. J. T. Jackson, 453 West Third Street, Attorney in Fact for Mrs. Sue Walby and Lucy Walby. Mr. Jackson was also acting for Mary Walby and Christ Church Episcopal which is to be the beneficiary of the estate of Mary Walby. He reported that the lot 35' x 90' with five-room bungalow house thereon at 233 and lot 35' x 90' weith five-room bungalow house thereon at 266 College View Avenue could be purchased for the sum of $6, 500 each. These properties belong to Mrs. Sue Walby. He also reported that Mr. Jackson had offered to sell, for $6, 000, subject to confirmation by Christ Church Episcopal, house at 241 College View Avenue, situated on a lot 35' x 90'. 14 Mr. Petersoq reported that the Attorney in Fact for Mary Walby had offered for sale house and lot at 447 Clifton Avenue for the sum of $7, 650. The house is located on a lot 40' x 140, and consists of five rooms in a fair state of repair. Mr. Peterson recommended that these houses be purchased for the amounts state~abcve, accepting a deed immediately to 241 College View, making a payment of $6, 000 to Christ Church Episcopal for and on behalf of Lucy Walby as directed by J. T. Jackson, Attorney in Fact. He recom- mended that the property at 233 and 266 College View and the property at 447 Clifton Avenue be purchased. He stated that the Attorney in Fact for Mrs. Sue Walby and Lucy Walby desired that the purchase price be paid as follows. $650 at the time the deed is given and $135 per month during the lives of Mrs. Sue Walby and Lucy Walby. The amount so shown and the monthly payments made would be deducted from the purchase price at the deaths of both Sue and Lucy Walby, Sue Walby being 92 years of age and Lucy 'Walby being 87. It wvas stipulated that interest at 4%10 per annurn would be paid on the unpaid balance of $20, 000, less monthly payments. Members of the Board, being advised, upon motion duly made, seconded and carried, accepted the recommendation and authorized purchase of 233 and 266 College View Avenue and 241 College View Avenue and the property at 447 Clifton Avenue for the sum of $26, 650. 00. F. Purchase of House and Lot at 708 South Limestone Street. Mr. Peterson reported that Mr, George Stanley Milligan, admin- istrator of the Milligan Estate, owning 708 South Limestone Street, had offered for sale a two-story frame residence with two baths, situated on a lot 78' x 313' for the sum of $23, 500, 00. Mr. Peterson stated that this property contained more than 24,400 square feet of space and that, according to the price of property in this area adjacent to the University. it is worth the asking price. He reported that he had discussed the matter with Pres- ident Dickey and Dean Welch and that he was making a. joint recommendation that the property be purchased, with the understanding that same would be paid for immediately from the Haggin Fund which would be reimbursed from Experiment Station funds at a later date. Members of the Board discussed the location of the property and its proximity to the University, and upon motion duly made, seconded and carried, authorized the Vice President, Business Administration, to consum- mate the purchase. G. Annuity for Mrs. Jean T. Payne for Property at 312 Vine Street, Mr. Peterson read the following letter: 15 December 4, 1958 President Frank G. Dickey University of Kentucky Dear President Dickey: I attach hereto Agreement between the University of Kentucky and Mrs. Jean T. Payne, Lexington, Kentucky (Mrs. A. Pruitt Payne). Mrs. Payne owns a business building at 312 Vine Street, formerly used for the Payne-Whitenack Wholesale Grocery. This property consists of a three-story concrete building above ground with a basement. The building is in a good state of repair. The building contains a freight elevator and a walk-in vault 10' x 61 . It has two two-piece lavatories. The all concrete building covers the entire lot, which is about 80' x 45' in size. We are having a survey made. The basement floor and the three floors above ground contain about 13, 750 square feet of floor space. This building is worth somewhere around $65, 000, but on today, s market could not be built for less than $100, 000. It is of fire-proof construction and deterioration is rninor. Mrs. Payne has offered to deed the property to the University for an annuity of $625 per month for the remainder of her life. She is 85 years of age and has a life expectancy of less than four years. The University would be given a deed of general warranty, fee simple title, free and clear of all encumbrances. Three-fourths of the first floor is now rented to a floor covering com- pany named Colt Floor Covering Service, operated by Mr. R. C. Kleinschmidt. He pays $150 per month rent. The other one-fourth of the first floor is not rented. Neither is the second or third floor rented. The basement space is rented to Lowenthal for fur storage area. Lowenthal pays somewhere between $50 and $75 a month. There was a time when this property rented for $600 a month. However, Vine Street, like so many other streets in the City of Lexington, lacks parking area. At the suggested monthly annuity, if Mrs. Payne should live her expectancy, the University would pay her $30, 000. If the building could be rented for one-half the monthly annuity, the University would be out $15 ,000. If Mrs. Payne should live twice her expectancy, the University would pay her $60, 000 or a net of $30, 000. I realize that this type of annuity is new as far as the University is concerned, but Mrs. Payne has refused to deal with Transylvania, Midway or Berea until she is convinced that she cannot deal with the University. I believe she has a sincere desire to deal with the University. I see no way that the University can lose on the transac- tion. The University will be free to dispose of the property when and as it sees fit. I, therefore, recommend that the annuity be 16 approved to be paid from the Haggin Fund w-ith the understanding that the University makes no commitment as to whether it will keep the property or dispose of it after the transaction is consum- ma te d. Very truly yours, (Signed) Frank D. Peterson Vice President Business Administration Members of the Board discussed at some length the proposition, Lex- ington members on the Board being familiar with the property, and upon the recommendation of President DickBy and Vice President Peterson, upon motion duly made, seconded and carried, authorized annuity contract executed to Mrs. Jean T. Payne when all documents incident to the annuity are consum- mated. H. Cancelled Bonds and Coupons Authorized Destroyed. Mr. Peterson reported a list of bonds by issues cancelled and a list of interest coupons on bonds by issues paid and asked that record be made in the minutes of this Board and authorization be given to destroy cancelled bonds and coupons. Board members, being advised, upon motion duly made, seconded and carried, authorized the information placed of record in these minutes, and ordered that the bonds and coupons paid be destroyed by burning in the presence of the Director of Accounts and Budgetary Control and the Associate Business Manager and certificate of same made of record. I. 342 Clifton Avenue Revenue Bond Issue. Mr. Peterson, stated that we are now ready to take bids for the construc- tion of small dormitory at 342 Clifton Avenue, to be leased to the A. T. 0. fra- gernity. Thereupon a mnotion was made by Dr. Ralph J. Apgelucci and seconded by Harper Gatton-that the following Resolution be adopted: BE IT RESOLVED that the action of the Board of Trustees at its meeting held on May 16, 1958, in adopting a resolution authorizing $150, 000 of University of Kentucky Dormitory Rev- enue Bonds (342 Clifton Avenue) be and is hereby authorized, ratified and re-affirmed, Be it further resolved that since the 17 plans for the project to be financed by the issuance of such bonds have been revised so that same may be financed from the proceeds of such bonds, the President and Secretary of the University are hereby authorized and directed to cause a notice to be published in compliance with law soliciting sealed competitive bids for the purchase of such bonds, the same to be received in the office of the Vice President (Business Administration) of the University, until the time of some meeting of the Board of Trustees or its Executive Committee, at which time such bids will be opened and acted upon. The riaht to reiect bids shall be reserved. No bid offering less than 100% of the par or face value of the bonds shall be given favorable consideration. There having been submitted to the Board a copy of a "Notice of Sale of Bonds" and said instru- ment having been examined, the same is hereby approved and a notice substantially in such form may be used in soliciting bids for the purchasing of such bonds. No further authorization by the Board of Trustees or its Executive Committee shall be necessary before such notice may be published. Upon a vote being taken upon the motion to adopt such resolution, the result was as follows: Aye. Robert P. Hobson, Harper Gatton, Dr. Paul Hall, Ben Butler, Robert C. Stilz, W. F. Foster, Robert R. Martin, Wood Hannah, Sr. , Clifford Smith and Dr. Ralph J. Angelucci. Nay: None. Whereupon, the Vice Chairman of the Board of Trustees declared the said motion duly carried and said resolution duly adopted. J. Authorization for Right-of-Way on Euclid Avenue Given. Mr. Petn stated that City authorities of Lexington had met with administrative officials of the University and presented a proposal to widen Euclid Avenue. This project would affect the University between Rose Street and Limestone Street. The project was thoroughly explored as to purpose and effect upon the University and its properties. The request was submitted to the Executive Committee at its meeting on November 8, 1958. The members of the Executive Committee were asked to give t