xt731z41s07s https://exploreuk.uky.edu/dips/xt731z41s07s/data/mets.xml Lexington, Kentucky University of Kentucky 2010 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, 2010-12-07 text Minutes of the University of Kentucky Board of Trustees, 2010-12-07 2010 2012 true xt731z41s07s section xt731z41s07s Minutes of the Meeting ofthe Board of Trustees of the University of Kentucky, Tuesday,
December 7, 2010.
The Board of Trustees of the University of Kentucky met at 1:00 p.m. (Lexington time)
on Tuesday, December 7, 2010 in the Board Room on the 18m Floor of Patterson Office Tower.
A. Meeting Opened
Dr. E. Britt Brockman, chair ofthe Board, called the meeting to order at 1:05 p.m. He
asked Ms. Pam May, secretary ofthe Board, to call the roll.
B. Roll Call
The following members of the Board of Trustees answered the call ofthe roll: E. Britt
Brockman (chair), Sheila Brothers, Penelope Brown, Jo Hem Curris, Dennontti Dawson,
William S. Farish, Jr, Oliver Keith Gannon, Carol Martin "Bill” Gatton, Pamela T. May, Everett
McCorvey, Billy Joe Miles, Teny Mobley, Sandy Bugie Patterson, Joe Peek, Erwin Roberts,
Charles R. Sachatello, Frank Shoop, Ryan Smith, James W. Stuckert, and Barbara Young. Ms.
May announced 100 percent attendance.
The university administration was represented by President Lee T. Todd, Jr., Provost
Kumble Subbaswamy, Executive Vice President for Finance and Administration Frank Butler,
and General Counsel Barbara W. Jones.
The university faculty was represented by Chair of the University Senate Council Hollie
Swanson, and the university staff was represented by Chair ofthe Staff Senate Jann Burks.
Members ofthe various news media were also in attendance.
C. Consent Items
Dr. Brockman called attention to the three consent items. They included the minutes for
three meetings of the board — October 12, 2010, the regular meeting of the board, and two board
retreats — October 24, 2010, and November 14, 2010, PR 2, which deals with personnel actions,
and FCR 1, a gift from the estate of Gary M. Browning. Mr. Stuckert moved approval, and the
motion was seconded by Mr. Farish. The motion carried without dissent. (See consent items
listed below at the end ofthese Minutes.)
Minutes — October 12, 2010
Minutes — October 24, 2010
Minutes — November 14, 2010
PR 2 Personnel Actions
FCR 1 Gift from the Estate of Gary M. Browning

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D. Chair’s Report: Presidential Search Schedule
Dr. Brockrnan asked Mr. Stuckert for a briefing on the activities ofthe presidential search
committee. Mr. Stuckert, chair ofthe committee, reported that several meetings had taken place.
The first such meeting was on November 5, at which introductions of members were
made. Barbara Jones discussed the confidentiality and code of ethics policies. The committee’s
functions and expectations as well as a tentative timetable were discussed. A private session
reviewed several consultant RFPs, after which a majority ofthe search committee met with 14 of
the 18 university deans, a group of department chairs, and other trustees for a successful
interactive session.
A week later the search committee met, then went into closed meeting. Thereafter, they
selected a finalist for the search finn and a consultant. Greenwood/ Asher & Associates, Inc. was
the search finn selected. Dr. Jan Greenwood, from Greenwood/Asher, leads the search team.
She also worked for the search finn that assisted with the search when President Todd was hired
in 2001.
The search committee has fonnulated a position announcement incorporating interview
comments and other items from the retreats. The announcement is scheduled to appear in The
Chronicle of H igher Education on December 10. Subsequently, the committee will begin to
accept nominations.
Mr. Stuckert thanked the many people and groups who have cooperated to move the
process this far: Faculty gave important input in three town hall meetings. Director of
Purchasing Bill Harris and a team of others from his area received and reviewed RFPs
professionally with Mr. Stuckert and Mr. Mobley. Mr. Stuckert announced that the search
committee office is on the second floor of UK’s Helen G. King Alumni House. Others thanked
were Tom Harris and his team, including Jay Blanton and others at Public Relations, for their
wordsmith talents, and Peggy Way for her ef`fectiveness in assuring that all ofthe required tasks
get done and for keeping everything in order. Mr. Stuckert also invited everybody to visit the
committee’s web site at www.uky.edu/presidentialsearch.
On January 28, separate campus forums will begin for faculty, staff; and students. Mr.
Stuckert invited all trustees to attend the forums. There will be a presidential search committee
meeting on the aftemoon of the 28m as well as an evening perfonnance of Porgy and Bess that
might also interest the board members.
E. President’s Report (PR 1)
President Todd led into his comments on the following items in PR 1 by saying that an
inordinate number of good things have happened at UK recently.
UK Celebrates Opening of Confucius Institute

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One in only 400 such centers in the world, the new Confucius Institute opened with much
celebration, thanks to the efforts of; among others, Provost Subbaswamy, Mrs. Todd, the
International Office, and the David Jones family Foundation of Louisville. The UK student
orchestra perfonned with students from China’s Shanghai University. President Todd looks
forward to a fruitful relationship with new friends and colleagues from China.
Eguine Surgery Center Opens with Help from Small Business Development Center
Several new businesses were opened with UK assistance in 2010, and the latest of these is
Lexington Equine Surgery and Sports Medicine, a veterinary referral practice that focuses on
outpatient medicine and elective surgery. The new business found assistance from UK’s Small
Business Development Center, which received much praise for their excellence in fonnulating
financial projections and a business plan. As well, the three-way collaboration between the UK
Office for Commercialization, the City of Lexington, and Commerce Lexington, known
collectively as the Bluegrass Business Development Partnership, provided client services.
Several Doctoral and Research Progpams Rise Dramatically in National Rankings
President Todd noted the recently released rankings of the National Research Council (NRC)
that showed several of UK’s doctoral and research programs had risen dramatically in national
prominence. Specifically, UK houses three doctoral programs ranked in the top quarter,
compared to only one program in the top quarter in 1993, the year of the most recent NRC
survey. UK had 12 other programs in the top half in the survey results as well. In 1993, UK had
a total of only 6 programs in the top 50 percent.
UK Breaks Ground on $19.8 Million Renewable Energy Lab
In October, the Center for Applied Energy Research (CAER) broke ground on what will become
the university’s first Leadership in Energy and Environmental Design (LEED)-certified
laboratory. The $19.8 million renewable energy laboratory will allow CAER to greatly expand
its research capabilities devoted to Kentucky’s growing renewable energy industries, including
biomass and biofuels, electrochemical power sources (such as capacitors and batteries), and
distributed solar energy technologies. The facility is funded by a competitive grant (600
proposals for 12 funded grants) CAER won last year from the U.S. Department of Commerce’s
National Institute of Standards. President Todd credited CAER Director Rodney Andrews and
his staff for writing this grant that will allow a major step forward in UK’s research programs.
Department of Theatre Celebrates 100 Years with "Gorey Stories"
In October, the UK Department of Theatre celebrated 100 years of theatre on campus with
"Gorey Stories," an assortment of tales, songs, and limericks from the gothic writer-illustrator
Edward Gorey, which was adapted for the stage by UK alumnus Stephen Currens. The
production, first staged at UK, went on to appear on Broadway at the Booth Theatre in 1978.
UK‘s production of "Gorey Stories" was directed by Russell Henderson, associate professor of
acting and voice, and Ryan Shirar, musical director.
College of Medicine Celebrates 50th Anniversay through Academic Convocation
The University of Kentucky College of Medicine celebrated its 50th anniversary through an
Academic Convocation on September 23. The convocation featured speaker Lois Nora, M.D.,

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J .D., MBA, president emeritus of Northeastern Ohio Universities Colleges of Medicine and
Phannacy and fonner associate dean at the UK College of Medicine.
College of Nursing Celebrates 50th Year
During UK‘s Homecoming Weekend, the UK College of Nursing is celebrating its 50th
anniversary by honoring outstanding alumni for their countless accomplishments and
contributions within the Commonwealth and across the nation. Since the establishment of the
college in 1960, the mission ofthe UK College of Nursing has been to create innovative
educational programs and become one ofthe top nursing programs in the nation. The solid
foundation that was laid in the early years grew under the leadership provided by Deans Marcia
Dake, Marion McKenna, Carolyn Williams, and Jane Kirschling. The president commented that
although our medical schools are significantly younger than others in the nation, they have been
remarkably successful.
Record Number of Students Attend Preview Nights
President Todd called attention to the numbers achieved by Registrar Don Witt and his staff A
record number of prospective students have experienced Preview Nights, which wrapped up in
mid-October. During 2010, UK staff met with 3,971 students during Preview Nights in 12
Kentucky cities, as well as in five key out-of-state markets. These numbers are up more than
1,200 students over the previous record. UK broke attendance records in every city visited,
including 582 in Lexington and 571 in Louisville. In December, Kentucky Govemor’s Scholars
Program and Govemor’s School for the Arts participants will visit campus for a special day of
recruitment activities.
Work Begins on $129 Million Eastem State Hospital at Coldstream
The president called attention to the fact that construction on the new Eastem State Hospital is
expected to be completed by fall 2012. The new hospital will provide inpatient psychiatric
treatment, specialized services for acquired brain injuries and psychiatric disabilities requiring
nursing-facility care, and forensic mental health services. The project involves a unique
agreement among UK, the Bluegrass Community and Technical College (BCTC), the state, and
the city of Lexington that allows the organizations to trade property. After the new hospital is
completed, BCTC will renovate and move into the fonner Eastem State location, leaving at least
two ofthe BCTC buildings on Cooper Drive available for occupancy by UK. All involved are
expected to benefit by this unique arrangement and cooperation among units.
Bluegrass Business Development Partnership Wins Innovation Award
Another aspect ofthe teamwork between campus and other local players has been recognized by
the U.S. Economic Development Administration. UK, the Lexington-Fayette Urban County
Govemment, and Commerce Lexington have received a 2010 innovation award for
commercialization, the second that the consortium has received. The UK Office for
Commercialization and Economic Development, including the Von Allmen Center for
Entrepreneurship, the Lexington Innovation and Commercialization Center, and the Bluegrass
Small Business Development Center, work under the umbrella ofthe Bluegrass Business
Development Partnership as a one-stop, super provider offering a full range of business
development services.

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Allylix Releases Its First Product Developed from UK Technology
A long-lasting citrus flavor and fragrance called Nooktatone is the first product for Allylix, an
industrial biotech company founded in 2002 that has its research and development lab at
Coldstream. President Todd mentioned that F Orbes magazine recently presented an article on
the company, which received early funding from UK’s Bluegrass Angels. Allylix uses
technology developed by the UK College of Agriculture and the Salk Institute for Biological
Sciences to produce a group of natural products called terpenes in greater quantities, of higher
quality, and at significantly lower cost than traditional sources. The company has plans for
seven more products in the next two years. The Bluegrass Angels participated further in the
recent Series C venture capital round. UK is an investor in Allylix through Kentucky
Technology Inc., the university’s for-profit corporation.
UK Talent Takes Center Stage at WEG
Several UK groups were among the cast of approximately 1,500 that performed in the opening
ceremonies ofthe Alltech FEI World Equestrian Games on September 25. The UK Symphony
Orchestra under John Nardolillo provided the music for the ceremonies. Everett McCorvey,
director of UK Opera Theatre and UK board member, was the executive producer ofthe
ceremonies, which were broadcast live to a worldwide audience of around 500 million.
Perfonning with the orchestra were Kentuckian Wynonna Judd, opera stars Denyce Graves and
Ronan Tynan, UK Endowed Chair of Music Cynthia Lawrence, UK Artist in Residence and
alumnus Gregory Turay, Sara Lee Guthrie, Chenyholmes, and Jazz at Lincoln Center, among
other notables. Also representing the School of Music were the UK Chorale, UK Choristers, UK
Men‘s Chorus, UK Women‘s Choir, UK Trumpet Ensemble, UK Percussion Ensemble, and UK
Opera Theatre.
Symphony Orchestra Perfonnances with Boston Pops Hamlisch Perlman and Guthrie
Further praise for the School of Music: In celebration of Keeneland’s 75th anniversary,
tentatively set for October l5, 20ll, the UK Symphony Orchestra will perfonn alongside the
Boston Pops in a major concert to be held at Rupp Arena. The Pops has never before perfonned
on the same stage as a student orchestra. Proceeds from the historic perfonnance will support
the UK Symphony Orchestra Outreach Endowment. The UK Symphony Orchestra also
perfonned October 2, 20l0 with award-winning composer and pops conductor Marvin Hamlisch.
The orchestra perfonned November 27 for the second time with folk legend Arlo Guthrie. The
orchestra will perfonn with legendary violinist Itzhak Perlman on March 5, 20l l.
National Symphony Orchestra in Residence at UK
The National Symphony Orchestra will be in residence in Kentucky in February, perfonning
concerts and presenting master classes across the state, including at UK where they will work
with the UK Symphony Orchestra. The residency is funded largely by the Kennedy Center and
the U.S. Department of Education.
UK Patterson School Partners with U.S. Army War College
The U.S. Army War College in Carlisle, Pennsylvania has partnered with the University of
Kentucky Patterson School of Diplomacy and Intemational Commerce to conduct an annual
strategic-level negotiation exercise in Lexington. All UK Patterson School students have thus

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gained exposure to state-of-the-art leadership training developed by some of the nation’s best
"gamers” and strategists. The Patterson School joins only Princeton University’s Woodrow
Wilson School for Public and International Affairs and Georgetown University’s Institute for the
Study of Diplomacy in having such partnerships with the Anny War College’s Center for
Strategic Leadership. The first exercise took place in November and another will occur again in
fall 2011. Patterson Director Carey Cavanaugh’s efforts are largely responsible for the events.
F. Naming of University Property (PR 3)
President Todd recommended that the Board approve the naming ofthe UK College of
Agriculture Fann in Woodford County as the C. Oran Little Research Center. Dean Little
orchestrated the purchase ofthe fonner Pin Oak Fann in Woodford County about the time that
the university was establishing Coldstream as UK’s research campus. Throughout his 12-year
tenn Dean Little was fully engaged in the planning, design, and development ofthe new research
fann, and it is appropriate to designate it now with his name.
Dr. Brockman asked for a motion of approval of PR 3. Mr. Mobley moved approval. His
motion was seconded by Ms. Patterson and passed without dissent. (See PR 3 at the end of the
Minutes.)
G. Approval of an Exception to Kentucky Statute (PR 4)
President Todd explained that PR 4 requests approval by the Board of an exception to
Kentucky Revised Statutes 164.131(7), which defines conflicts of interest, to allow a purchase
from Arturo Sandoval, a prominent faculty member in the College of Fine Arts. The UK Arts in
HealthCare Program will provide local, national, and intemational art throughout the new
Chandler hospitals and clinics. The program is proposing to contract to purchase an original
piece of art from Mr. Sandoval. The university’s Ethics Committee has examined the proposed
purchase thoroughly and has declared that this purchase presents no conflict of interest.
President Todd has considered the proposal in light ofthe Ethics Committee detailed opinion,
accepts that committee’s conclusions, and recommends approval ofthe contract with the
university.
Dr. Brockman asked for a motion of approval for PR 4. Mr. Stuckert moved approval.
Mr. Roberts seconded, and the motion passed without dissent. (See PR 4 at the end ofthe
Minutes.)
President Todd wanted the Board to know about one more item of interest. Two of UK’s
outstanding professors, Professor William Endres, Department of English, and Professor Brent
Seales, College of Engineering, have collaborated to bring to the attention ofthe world two
ancient documents: the St. Chad Gospels produced in 730 A.D, and a Wycliffe New Testament.
Mr. Seales and his team have put together both a video and an article on how they went about the
work of examining these important ancient documents. Their work has received recognition
recently in The Chronicle of H igher Education, higher education’s most prominent publication.

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H. Candidates for Degrees (AACR 1 )
Dr. Brockman passed the floor to Ms. Brown, chair of the Academic Affairs Committee,
for her report. The first action item ofthe committee was AACR 1, which lists candidates for
degrees in December 2010. She asked that the president be authorized to confer upon each
individual whose name appears on the list of students the degree to which he or she is entitled,
upon certification by the university registrar that the individual has satisfactorily completed all
requirements for the degree for which application has been made and as approved by the elected
faculty ofthe University Senate and the Academic Affairs Committee of the Board of Trustees.
She further explained that since the University of Kentucky will hold its first December
commencement ceremonies immediately following completion of examinations, it is not possible
for the university registrar to certify satisfactory completion of requirements prior to the
ceremonies for those candidates who complete their requirements in December. The candidates
who completed their requirements in August 2010 were approved by the Board of Trustees at an
earlier meeting. Thus, graduates at the first December ceremony will include graduates from
both August 2010 and December 2010. Ms. Brown moved acceptance of AACR 1. Dr.
Sachatello seconded her motion, and it passed without dissent. (See AACR 1 at the end ofthe
Minutes.)
I. Candidates for Degrees — Bluegrass Community and Technical College
{AACR 2)
Ms. Brown said that the approvals asked for in AACR 2 will occur only once more
according to the 2004 agreement among the University of Kentucky, the Kentucky Community
and Technical College System, and Lexington Community College pursuant to House Joint
Resolution 214. The agreement states that LCC students who were or are officially enrolled on
or before September 2004 in associate degree programs approved by the UK Board of Trustees
and who complete the associate degree program on or before August 31, 2010 shall have their
degrees conferred by the UK Board of Trustees. AACR 2 recommends that the president be
authorized to confer upon each individual whose name appears on the attached list the degree to
which he or she is entitled, upon certification by the Kentucky Community and Technical
College System Board and the University of Kentucky Registrar that the individual has
satisfactorily completed all requirements for the degree for which application has been made and
as approved by the elected faculty ofthe University Senate and the Academic Affairs Committee
ofthe Board of Trustees. She moved approval of AACR 2. Her motion was seconded by Dr.
McCorvey and passed with no dissent. (See AACR 2 at the end ofthe Minutes.)
Ms. Brown then offered a summary ofthe moming meeting ofthe Academic Affairs
Committee, which included an infonnational update by Dr. Diane Snow, endowed professor of
Neuroscience, Spinal Cord and Brain Injury Research Center. Dr. Snow is the first faculty
director of undergraduate research, although research opportunities have been offered for
undergraduates for some time. Dr. Snow detailed her goals: to grow and expand the scope and
opportunity for undergraduates, to increase student and faculty awareness on campus, to increase
the number of faculty members involved, and to bring awareness of what research means to
different disciplines on campus. Her challenges are funding and matching appropriate students
to appropriate mentors and projects. She is also working on creating a master list of students and

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projects, consolidating all ofthe moving parts into an organized framework, and increasing all
programming. The discussion of her presentation engaged everyone on the Academic Affairs
Committee.
J. Finance Committee Report
Mr. Stuckert, chair ofthe Finance Committee, reported that the committee met that
moming and vetted FCRs l through 8. FCR l was a consent item, discussed and approved
earlier, a gift from the estate of Gary M. Browning, MD.
K. Acceptance of Interim Financial Report for the University of Kentucky for the
Three Months Ended September 30 2010 (FCR 2)
In FCR 2 UK’s current fund revenues was shown to represent 27 percent ofthe approved
budget while operating expenses to that date are 25 percent ofthe approved budget. Mr. Stuckert
moved approval of FCR 2. Mr. Miles seconded his motion, and there was no opposition to its
adoption. (See FCR 2 at the end of the Minutes.)
L. 20l0-ll Budget Revisions (FCR 3)
Mr. Stuckert said that FCR 3 represents 20l0-ll budget revisions. He summarized the
changes in the three categories of the budget: General Fund — change of $30,600,000; Auxiliary
Fund — a change of $75,000; and Restricted Funds — a net change of $536,400, including a
$505,000 gift from the estate of Peggy H. Gwillim. Mr. Stuckert moved approval of FCR 3. Ms.
Curris seconded his motion, and it carried without dissent. (See FCR 3 at the end ofthe
Minutes.)
M. Approval of Investment in Coldstream Laboratories Inc. (FCR 4)
Mr. Stuckert summarized the Finance Committee’s extensive review of FCR 4, Approval
of Investment in Coldstream Laboratories, Inc., known as CLI, during their morning meeting.
The resolution asks for authorization ofthe president to approve the transfer of up to $5.5 million
from the University of Kentucky Research Foundation to be used as investment in CLI to fund
operations and to develop new product lines, and as working capital. Officials from CLI
participated in the moming meeting, and a thorough examination of the request was conducted,
with the result that the committee approved the motion and passed it to the full board. Mr.
Stuckert moved approval of FCR 4. Mr. Shoop seconded the motion.
Dr. Peek expressed some reservations about the lack of infonnation available to the board
members who are not on the Finance Committee. He received Mr. Stuckert’s reassurance that at
the morning’s meeting there was a thorough investigation of the request as well as ofthe
operation of CLI. In the recent past, CLI has obtained new management talent and made the
addition of knowledgeable individuals to its board of directors in order to show profitability in its
operations. Mr. Stuckert thought that perhaps the issue was whether investing in corporations
such as this is an appropriate function ofthe university. He suggested that UK has leamed much
during this venture. Once such an investment is made, the supporting institution needs to affinn

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its confidence in the board which was selected to guide CLI, and if additional investment is
needed, it should be supplied if requested once the board is assured that the request is reasonable.
The details of management are up to the CLI directors.
Ms. Curris felt that the sticking point for the board on this issue may be that there was not
sufficient infonnation presented to those members not on the Finance Committee to enable them
to make an informed decision. She asked for that infonnation to be circulated in advance of
meeting day. Dr. Brockman agreed and felt that this was a consensus reached during the
moming’s meeting.
The vote was then taken. It passed without dissent. (See FCR 4 at the end ofthe
Minutes.)
N. Authorization to Lease Four Acres to the Kentucky Medical Services Foundation
on Which to Construct a Child Care Facility (FCR 5)
Mr. Stuckert continued, summarizing the discussion of the moming’s Finance Committee
meeting on this request. The University and Kentucky Medical Services Foundation (KMSF)
have agreed to a 50-year lease for the designated property for the sum of $1.00 year. KMSF will
contract with Child Development Center ofthe Bluegrass, Inc. (CDC) to construct a 22,000
gross-square-foot on-campus facility to house a Child Care Development Center to provide child
care services for children from the community, including the children of faculty and staff The
facility will include services for children with special needs. He moved for adoption of FCR 5
and was seconded by Mr. Mobley.
Ms. Brothers stated that she would not vote for the approval of FCR 5. She objects to
UK leasing land to KMSF so that KMSF and another entity (CDC) will run a child care center
that employs people that are not UK employees although the facility will have the UK name on
it. She objects to the lack of information on how the l00 slots available to children of faculty
and staf`f will be divided between health care and the main campus. She expressed the greatest
concem about the fact that the facility will charge market rates for child care, feeling that a large
portion of the UK population needing child care cannot af`ford market rates and thus that it is a
given conclusion that much ofthe UK staf`f will be left out.
Dr. Brockman called for a vote. It passed with one dissenting vote, that of Ms. Brothers.
(See FCR 5 at the end ofthe Minutes.)
O. Approval ofthe 2009-l0 Endowment Match Program Annual Report (FCR 6)
Mr. Stuckert moved the approval of FCR 6, which details the 2009-l0 Endowment Match
Program’s Annual Report. He was seconded by Mr. Smith. The vote was unanimous for the
adoption of FCR 6. (See FCR 6 at the end ofthe Minutes.)

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P. Capital Construction Report (FCR 7)
Mr. Stuckert referenced the review of the Capital Construction Report by Mr. Bob
Wiseman at the morning Finance Committee meeting. He moved approval of FCR 7 and was
seconded by Ms. Brothers. The motion passed without dissent. (See FCR 7 at the end of the
Minutes.)
Q. Patent Assignment Report (FCR 8)
Dr. James Tracy reviewed the patent assigmnent report for the period July 1 through
September 30, 2010 with the committee during the moming. Two new patents were applied for,
and seven patents were issued. Revenues were almost $260,000 for this period. Mr. Stuckert
moved approval ofthe report. Dr. Gannon seconded, and the motion carried without dissent.
(See FCR 8 at the end ofthe Minutes.)
Mr. Stuckert concluded the Finance Committee report. Mr. Gatton asked that on FCR 5
the Minutes reflect his comments in the Finance Committee meeting that moming. Mr. Gatton
stated there should be a notation included that a mechanic’s lien could not be placed on the
property and that the lessee does not have the right to sublease the property without board
approval. Dr. Brockrnan requested that the minutes include Mr. Gatton’s comments.
Dr. Brockrnan next asked for Mr. Gatton’s Investment Committee report.
R. Investment Committee Report
Mr. Gatton, chair ofthe Investment Committee, stated that the Investment Committee
met that moming to review perfonnance results and conduct other business. The endowment
had a net market value as of October 31 of $835.2 million. For the four months ended October
31, the endowment pool returned 10.9 percent, compared to the policy benchmark retum of 10.5
percent for that quarter. As a reminder, the policy benchmark is a weighted average of various
market index retums that are representative ofthe university’s target asset allocation. The fiscal
year outperfonnance against the policy benchmark is due mainly to strong perfonnance by the
fixed income managers.
The committee heard an update on the implementation ofthe new asset allocation
approved at the September Investment Committee meeting. The new allocation reflects
decreases to the U.S. equity, fixed income, and real estate asset classes, and increases to the
absolute and real retum asset classes. The implementation will be completed by the end of
December, with the exception ofthe private equity and value-added/ opportunistic real estate
allocations, which will be implemented over the next few years. The asset allocation changes are
intended to further diversify the endowment and decrease the projected volatility of future
retums. The new target asset allocation and manager structure is designed to produce an average
annual retum of 7.5 percent over the long tenn, defined as 10 years or more. If achieved, the 7.5

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percent annual return should allow the university to support the 4.5 percent annual spending and
management fee withdrawals, and maintain the inflation-adjusted value ofthe endowment.
S. Student Affairs Committee Report
Ms. Patterson, chair ofthe Student Affairs Committee, reported that two guests engaged
the committee earlier at their meeting. The first was Andrew Smith, director ofthe Alcohol and
Health Education Office, who reported on his office’s activities. Initiated in l999, his office is
focused primarily on abuse of alcohol, tobacco, drugs, and mental wellness. The group has
benefitted from a $200,000 award from Brown-Fonnan which helped start the peer program.
The program is now called Student Wellness Ambassadors and is one ofthe office’s major
successes.
Other activities include providing a focus on safety and responsibility, and their message
goes especially to new students. The Office carries the message ofthe need for accountability to
groups during K Week activities, through AlcoholEdu on line to incoming students before their
arrival on campus, through UK l0l, and to parents, as well as to intemational students. The
campus has experienced a 25 percent drop in residence-life alcohol policy violations and a 66
percent drop in alcohol policy violations.
Chief Joe Monroe ofthe UK Police Department was the second guest. He gave the group
statistics on campus crime: The categories of assault, burglary, rape, and robbery have declined
which represents positive results for our police force interventions. Chief Monroe emphasized
the importance of customer service and cooperation between units both on campus and in the
community as the basis for his department’s successes. He also described the basic and
continuing training of his force as well as two exciting initiatives. These include the installation
of cameras across campus to monitor criminal activities and a telephone app that will give a GPS
location automatically when a call is received.
Ms. Patterson asked Chief Monroe to stand, and he received a round of applause.
T. University Health Care Committee Operating Rules (UHCCR l )
Ms. Young, chair of the committee, gave the report for the Health Care Committee. She
stated that UHCCR l is a request for three additional changes to the Health Care Committee
Operating Rules. The first is to change the regularly scheduled meetings of the University
Health Care Committee to occur on the same day as the regularly schedu