xt76m901zr2d https://exploreuk.uky.edu/dips/xt76m901zr2d/data/mets.xml Lexington, Kentucky University of Kentucky 1998098 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 1998-09-dec8. text Minutes of the University of Kentucky Board of Trustees, 1998-09-dec8. 1998 2011 true xt76m901zr2d section xt76m901zr2d 








                                     AGENDA

                          Meeting of the Board of Trustees
                              University of Kentucky
                                      1:00 P.M.
                                  December 8, 1998

Invocation

Roll Call

Approval of Minutes

President's Report and Action Items

PR 1    President's Report to the Trustees
        A. Y2000 Report

PR 2    Personnel Actions

PR 3    Central Administration
        A. Proposed Amendments to the Governing Regulations

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

PR 5    Lexington Campus
        A. Candidates for Degrees - University System

PR 6    Medical Center
        A. Appointment to University Hospital of the Albert B. Chandler Medical
                 Center, Inc. Board of Directors

Finance Committee

1.    Acceptance of Interim Financial Report for the University of Kentucky for the Four
            Months Ended October 31, 1998
 2.    Report of Leases
 3.     Capital Construction Report
 4.     1998-99 Budget Revisions
 5.    Ephraim McDowell Cancer Research Foundation Endowed Chair Gift
 6.     Ephraim McDowell Cancer Research Foundation Gift of $288,000
 7.     Robert L. Bergen, M.D. Gift
 S.    Owsley Brown Frazier Family Foundation Pledge
 9.    Estate of Helen Frances Farmer
 10.    Endowed Professorship in Real Estate
 11.    Dialysis Clinics, Inc. Pledge of $500,000




 








12.     Monroe and Judy Hall Gift of Real Property
13.     Lucille Caudill Little Fine Arts Library
14.     Children's Miracle Network Pledge
15.     Nancy Blazer Gift and Pledge
16.     R. C. Durr Foundation Gift and Pledge and Establishment of the
             R. C. Durr Chair in Alzheimer's Disease Research
17.     Katherine M. Young, Arthritis Research Professorship
18.     United States Surgical Corporation Gift and Pledge
19.     Establishment of the Floyd H. Wright Endowment Fund
20.     Estate of William T. Bryan
21.     Drs. Barbara and James Holsinger Gift and Pledge and Establishment of the
             Holsinger Professor in Anatomy




 










       Minutes of the Meeting of the Board of Trustees of the University of Kentucky,
Tuesday, December 8, 1998.

       The Board of Trustees of the University of Kentucky met at 1:00 p.m. (Lexington
time) on Tuesday, December 8, 1998 in the Board Room on the 18th floor of Patterson
Office Tower.

      A.    Meeting Opened

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

      B.    Roll Call

      The following members of the Board of Trustees answered the call of the roll:
Mr. Ted Bates, Governor Edward T. Breathitt (Chairperson), Mr. Nathan Brown,
Mr. Paul W. Chellgren, Mr. Merwin Grayson, Mr. John "Jack" Guthrie, Professor Loys
L. Mather, Dr. Robert P. Meriwether, Mr. Billy Joe Miles, Dr. Elissa Plattner, Mr. Steven
S. Reed, Professor Daniel R. Reedy, Mr. C. Frank Shoop, Mrs. Marian Sims, Dr. W.
Grady Stumbo, Mr. Martin Welenken, Ms. JoEtta Y. Wickliffe, Mr. Billy B. Wilcoxson,
and Mr. Russell Williams. Absent from the meeting was Mr. James F. Hardymon. The
University administration was represented by President Charles T. Wethington, Jr.;
Chancellor Elisabeth Zinser; Vice Presidents Fitzgerald Bramwell, Joseph T. Burch,
Edward A. Carter, and Eugene Williams; Dr. Juanita Fleming, Special Assistant for
Academic Affairs; and Mr. Richard E. Plymale, General Counsel.

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

      C.    Dr. Stumbo's Comment

      Dr. Stumbo asked Governor Breathitt if anyone on the University of Kentucky
staff knew that the University of Louisville was planning to make an announcement
about a School of Public Health when the Board voted on it at the October meeting.

      Governor Breathitt asked President Wethington to address Dr. Stumbo's question.

      President Wethington said he could not speak for everyone inside the institution;
however, he certainly was not aware that there were any plans by the University of
Louisville to make such an announcement. He further explained that an effort is
underway involving the Council on Postsecondary Education staff, staff from the
University of Kentucky Chandler Medical Center and staff from the University of
Louisville looking at ways to coordinate efforts in regard to public health.




 





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       D.    Approval of Minutes

       Governor Breathitt said that the Minutes of the Board meeting on October 20,
1998 had been distributed and asked for any additions or corrections. Mr. Wilcoxson
moved that the Minutes be approved as distributed. Mrs. Sims seconded the motion, and
it carried.

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

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

       1. The National Science Foundation has selected the University of Kentucky
          (UK) as one of 12 sites for a research center to study advanced carbon
          materials. The Materials Research Science and Engineering Center will be
          funded by NSF and UK at $8 million over five years and will be located at the
          Center for Applied Energy Research.

       2. The UK Fellows Society recognized 175 new fellows, individuals who have
          given $10,000 or more to the University, at its annual black-tie dinner.
          During the society's 32-year history, 4,575 fellows have donated or pledged
          more than $357 million to the University.

       3. Retiring Senator Wendell Ford has donated his Senate papers to the
          University of Kentucky Libraries' Special Collections. The papers include
          documents and materials from his 24-year Senate career.

      4. The College of Allied Health Professions ranked 13' out of more than 100
          allied health programs across the United States in receiving National Institutes
          of Health grants.

       5. UK researchers received a $3.2 million grant from the National Institute on
          Drug Abuse for a four-year study of the national anti-drug advertising
          campaign by the Office of National Drug Control Policy.

      6. Chandler Medical Center researchers have developed a new way to detect the
          plaques in blood vessels that are most likely to rupture and cause heart attacks
          and strokes.

      7. The University's publicity of the William T. Young Library opening won the
          Council for Advancement and Support of Education Kentucky Award of
          Merit. Publicity for the opening included an eight-page tabloid which ran as
          an insert in newspapers across the state.

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




 





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       F.    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.
Chellgren moved approval. The motion, seconded by Mr. Brown, carried. (See PR 2 at
the end of the Minutes.)

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

       President Wethington said that PR 3A is an item that outlines proposed
amendments to the Governing Regulations. The proposed amendments are received at
this time for preliminary consideration. They will be included on the agenda for action at
the next regular meeting of the Board.

       He reviewed the proposed amendments which change the composition of the
University Senate. The membership will be changed from 113 to 114, and the number of
students represented on the University Senate will be changed from 18 to 19. This
change is to have the President of the Student Government Association be a regular
member of the Senate each year and not an ex officio member as that person has been in
the past. Also, the Chancellor and Vice Chancellor for Academic Affairs for the
Community College System have been omitted from the University Senate. Those
individuals will be replaced by the President of Lexington Community College and the
Director of the Teaching and Learning Center at the University of Kentucky.

       President Wethington noted that the proposed changes are recommended by the
University Senate. On motion made by Mr. Brown, seconded by Mr. Williams and
carried, PR 3A was approved. (See PR 3A at the end of the Minutes.

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

       President Wethington stated that the Board of Trustees still approves candidates
for degrees in the Community College System. The recommendation is that the degree
specified on the list attached to PR 4A be awarded to the persons named upon
certification that the requirements for those degrees have been satisfactorily completed.
He said he was pleased to recommend PR 4A. Mrs. Sims moved approval. Her motion,
seconded by Mr. Guthrie, passed. (See PR 4A at the end of the Minutes.)

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

       President Wethington said that PR 5A is a companion document to PR 4A. The
recommendation is that the President be authorized to confer on each individual whose
names appears on the attached list 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 University Senate. He stated that it is important that the Board consider this action at
this time since the degrees need to be conferred upon the individuals completing their
requirements in December. He said he was pleased to recommend PR 5A. Mr. Miles




 





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moved approval. Mr. Williams seconded the motion, and it carried. (See PR 5A at the
end of the Minutes.)

       J.    Appointment to University Hospital of the Albert B. Chandler Medical
Center, Inc. Board of Directors (PR 6A)

       President Wethington said PR 6A is an appointment to the University Hospital of
the Albert B. Chandler Medical Center Inc. Board of Directors. The recommendation is
that Marian Moore Sims be appointed a member of the Board of Directors of the
University Hospital of the Albert B. Chandler Medical Center Inc. effective December 8,
1998. The Bylaws require that its Board of Directors consist of five members appointed
by the Board of Trustees from among their number. Kay Bell's term on the Board of
Directors ended when she was no longer a member of the UK Board of Trustees. After
consultation with Dr. Robert Meriwether, chairperson of the Hospital Board, Dr. James
Holsinger, Chancellor of the Medical Center, and Frank Butler, Director of the University
Hospital, he said he was pleased to recommend to the Board that Marian Moore Sims be
appointed to replace Kay Bell. On motion made by Dr. Meriwether, seconded by Mr.
Grayson and carried, PR 6A was approved. (See PR 6A at the end of the Minutes.)

       K.    Y2000 Report

       President Wethington reminded the Board that he agreed to bring to the Board a
report from the university administration about the university's efforts to deal with the
Y2000 problem. He asked Gene Williams to present the Y2000 Report.

      Mr. Williams gave a complete update of the strategy for year 2000 compliance
along with the status of the implementation of that strategy. A package of material was
distributed describing the timelines for testing of the core resources and the
supercomputer research systems. He stated that the testing will be completed for these
systems in June 1999. Further, during most of 1999, tracing of the supply chain and
testing of their input and output will continue. Other project work includes helping
departments with their business continuity plans. He noted that the Medical Center
healthcare systems are scheduled to complete testing in August 1999. These systems
include the patient care, patient management, and patient accounting. Following his
presentation, he entertained questions from the Board.

      L     Acceptance of Interim Financial Report for the University of Kentucky for
the Four Months Ended October 31, 1998 (FCR 1)

      In the absence of Mr. Hardymon, Chairperson of the Finance Committee, Mr.
Chellgren gave the Finance Committee report. He reported that the Finance Committee
met and reviewed four routine items and 17 gifts. He said that the first item was the
Acceptance of the Interim Financial Report for the University for the first four months of
the year. He reported that the expenditures are 33%, and revenues are 40%. There were
no major changes or items to highlight for the Board. He moved adoption of the Interim
Financial Report. Mr. Shoop seconded the motion, and it passed. (See FCR 1 at the end
of the Minutes.)




 





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       M.    Report of Leases (FCR 2)

       Mr. Chellgren said that FCR 2 is a recurring report on lease agreements in
accordance with the Board policy. The leases are less than $30,000 in value. They do
not require Board approval; however, they must be reported to the Board. He moved
acceptance of FCR 2. His motion, seconded by Mr. Williams, carried. (See FCR 2 at the
end of the Minutes.)

       N.    Capital Construction Report (FCR 3)

       Mr. Chellgren said that FCR 3 is a quarterly Capital Construction Report that is
quite extensive. The report details all the major construction activities within the purview
of the university. There are a number of major projects underway, including the
engineering building, the allied health building, the heart institute building, the football
stadium expansion, and various other projects. He stated that the Finance Committee
reviewed the report and noted that there are no material cost or schedule problems for any
specific projects. He moved the adoption of FCR 3. Mr. Welenken seconded his motion,
and it passed. (See FCR 3 at the end of the Minutes.)

       0.     1998-99 Budget Revisions (FCR 4)

       Mr. Chellgren said FCR 4 is a recurring item to revise the current fiscal year
budget as the year advances. The revisions represent changes in both revenues and
expenditures. He reported that a number of revenue items changed since the last Board
meeting. The enrollment at Lexington Community College was up significantly for the
fall semester which increased student fees by approximately $500,000. Also, there was
some additional county appropriation for the agricultural extension services, and the
single largest item was almost $2.2 million additional revenue which is coming from the
endowment fund. This item is offset with almost $2.1 million additional expenditures for
the university's Development and Public Relations offices to fund the expansion of fund
raising efforts in preparation and as part of the multi-year endowment drive that the
university is undertaking. That is the single largest item of change in both revenue and
expenditure in the budget. He said that the remainder of the revisions are straightforward
with a number of relatively small items. He moved adoption of FCR 4. His motion,
seconded by Mr. Guthrie, carried. (See FCR 4 at the end of the Minutes.)

      P.    Ephraim McDowell Cancer Research Foundation Endowed Chair Gift
(FCR 5)

       Mr. Chellgren said that there were 17 gifts to the University which he believes is
the most that has ever been presented to the Board at a single meeting since he has been
on the Board. This is certainly a tribute to the development efforts as well as a tribute to
year-end tax planning in certain instances. The first gift is an acceptance of an additional
$2 million from the Ephraim McDowell Cancer Research Foundation to create two
endowed chairs to benefit the Markey Cancer Center. He moved the adoption of FCR 5.
Mr. Shoop seconded the motion, and it passed. (See FCR 5 at the end of the Minutes.)




 





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       Mr. Chellgren mentioned that FCR 5 and a number of the other gifts, particularly
those linked to research, are subject to the Research Challenge Trust Fund which is a one-
for-one match from the state. Consequently, this represents a double impact from grants
like this which is an exciting prospect.

       Q. Ephraim McDowell Cancer Research Foundation Gift of $288,000 (FCR


       Mr. Chellgren stated that FCR 6 recommends that the Board accept a gift of
$288,000 from the Ephraim McDowell Cancer Research Foundation for research
initiatives in the Markey Cancer Center. He moved the acceptance of FCR 6. His
motion, seconded by Mr. Grayson, carried. (See FCR 6 at the end of the Minutes.)

       R.    Robert L. Bergen, M.D. Gift (FCR 7)

       Mr. Chellgren said that FCR 7 is a gift of $200,000 to the Chandler Medical
Center from Dr. Robert L. Bergen, an ophthalmologist in New Jersey. Dr. Bergen is a
1968 graduate of the UK College of Medicine and wants to endow the Robert L. Bergen
Professorship in Ophthalmology. It is anticipated that this gift will also be matched by
the state. He moved the adoption of FCR 7. Dr. Meriwether seconded the motion, and it
passed. (See FCR 7 at the end of the Minutes.)

       S.    Owsley Brown Frazier Family Foundation Pledge (FCR 8)

       Mr. Chellgren said that FCR 8 is a pledge from one of the most generous and
traditional supporters of good works in the State of Kentucky, the Brown family from
Louisville. It is a pledge of $100,000 from the Owsley Brown Frazier Family Foundation
to assist in funding a lecture series in the College of Human Environmental Sciences'
Department of Interior Design, Merchandising and Textiles. Mr. Chellgren moved the
adoption of FCR 8. Mr. Reed seconded the motion, and it carried. (See FCR 8 at the end
of the Minutes.)

      T.    Estate of Helen Frances Farmer (FCR 9)

      Mr. Chellgren said that FCR 9 is a partial distribution of $100,000 from the estate
of Helen Frances Farmer to establish and endow the Jimmie E. and Frank L. Farmer
Scholarship Fund and the Helen Frances Farmer Scholarship Fund in Music. It is
anticipated that the total distribution from this estate will be approximately $300,000.
The Jimmie E. and Frank L. Farmer Scholarship Fund will provide scholarships for
students graduating from Kentucky high schools. He moved the adoption of FCR 9. His
motion, seconded by Mr. Guthrie, passed. (See FCR 9 at the end of the Minutes.)

      U.    Endowed Professorship in Real Estate (FCR 10)

      Mr. Chellgren said that FCR 10 is a recommendation from the University of
Kentucky Business Partnership Foundation to establish and endow an Endowed
Professorship in Real Estate in the Carol Martin Gatton College of Business and




 





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Economics. He moved the acceptance of FCR 10. Ms. Wickliffe seconded the motion,
and it carried. (See FCR 10 at the end of the Minutes.)

       V.    Dialysis Clinics, Inc. Pledge of $500,000 (FCR 11)

       Mr. Chellgren said that FCR 11 recommends the acceptance of a pledge of
$500,000 from the Dialysis Clinics, Inc. of Nashville, Tennessee, to establish and endow
the Robert G. Luke, M.D. Research Chair in Nephrology in the College of Medicine's
Division of Nephrology. He noted that this pledge should also be subject to matching
funds from the state's Research Challenge Trust Fund. He moved the adoption of FCR
11. Mr. Wilcoxson seconded the motion, and it passed. (See FCR 11 at the end of the
Minutes.)

       W.    Monroe and Judy Hall Gift of Real Property (FCR 12)

       Mr. Chellgren said that FCR 12 is a gift of approximately 105 acres of land in
Logan County, Kentucky, valued in excess of $100,000 from Monroe and Judy Hall of
Paris, Illinois. Mr. and Mrs. Hall want to preserve the farm for resource study and
wildlife habitat; therefore, the land will be returned to its original grasslands prairie
environment. The University has no obligation to maintain this land in perpetuity and
does have the right to do other things with it as time evolves. He moved that the Board
accept the gift of land. The motion, seconded by Mrs. Plattner, carried. (See FCR 12 at
the end of the Minutes.)

      X.    Lucille Caudill Little Fine Arts Library (FCR 13)

      Mr. Chellgren said that FCR 13 recommends that the Board accept a gift of
$1,000,000 million from Lucille Little of Lexington, Kentucky and authorize the
establishment of the Lucille Caudill Little Fine Arts Library which is attached to the
Margaret I. King Library. Mrs. Little has been a long-time supporter of the arts and is a
great benefactor of the University. He moved the acceptance of FCR 14. Mrs. Sims
seconded the motion, and it passed. (See FCR 13 at the end of the Minutes.)

      Y.    Children's Miracle Network Pledge (FCR 14)

      Mr. Chellgren said that FCR 14 is another research pledge that should be matched
by the state's Research Challenge Trust Fund. It recommends that the Board accept the
pledge of $1,000,000 million from the Children's Miracle Network Council to establish
and endow two Children's Miracle Network Research Chairs in Pediatrics in the College
of Medicine's Department of Pediatrics. The pledge will be paid in five annual
installments of $200,000 beginning in 1999. He moved the acceptance of FCR 14. His
motion, seconded by Mr. Brown, carried. (See FCR 14 at the end of the Minutes.)

      Z.    Nancy Blazer Gift and Pledge (FCR 15)

      Mr. Chellgren said that FCR 15 recommends the acceptance of a gift of $50,230
and a pledge of $199,770 to establish and endow the Paul G. Blazer, Jr. Professorship in
Stroke Research in the Sanders-Brown Center on Aging. This gift and pledge is from




 





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Nancy Blazer, the widow of Paul G. Blazer. Mr. Chellgren said, " In a personal sense,
this has a special poignancy. Paul G. Blazer, Jr. was the son of Ashland, Inc. company
founder Paul Blazer. He had a serious stroke and ultimately died from complications
from the stroke a few years ago. The Blazer Family has been a great benefactor of the
University for many years." He moved the acceptance of FCR 15. Mrs. Sims seconded
the motion, and it passed. (See FCR 15 at the end of the Minutes.)

       Governor Breathitt stated that the first female member of the Board of Trustees at
the University of Kentucky was Georgia Blazer, who was the wife of the founder of
Ashland, Inc., Paul Blazer. Mrs. Lucille Blazer, wife of Rexford Blazer, also served on
the Board. Both were outstanding members of the Board and made a major contribution.

      AA.   R. C. Durr Foundation Gift and Pledge and Establishment of the
R. C. Durr Chair in Alzheimer's Disease Research (FCR 16)

      Mr. Chellgren said that FCR 16 recommends the acceptance of a gift of $250,000
and a pledge of an additional $250,000 from the R. C. Durr Foundation from Boone
County, Kentucky, to the Sanders-Brown Center on Aging to establish the R. C. Durr
Chair in Alzheimer's Disease Research. Again, this gift and pledge should qualify for
matching funds from the state. He moved the adoption of FCR 16. Mrs. Wickliffe
seconded the motion, and it passed. (See FCR 16 at the end of the Minutes.)

      BB.   Katherine M. Young Arthritis Research Professorship (FCR 17)

      Mr. Chellgren said that FCR 17 recommends the establishment of an endowment
to be named the Katherine M. Young Arthritis Research Professorship in the College of
Medicine's Division of Rheumatology. The current amount in this fund account is
$160,000 and with the anticipated matching dollars should be enough to create a
professorship in arthritis research. He moved the adoption of FCR 17. His motion,
seconded by Mrs. Wickliffe, carried. (See FCR 17 at the end of the Minutes.)

      CC.   United States Surgical Corporation Gift and Pledge (FCR 18)

      Mr. Chellgren said that FCR 18 recommends the acceptance of a gift of $140,000
and a pledge of $2,260,008 from United States Surgical Corporation of Norwalk,
Connecticut, to establish a Center of Excellence for Minimally Invasive Surgery in the
College of Medicine's Department of Surgery and to establish two professorships in
Minimally Invasive Surgery. The United States Surgical Corporation is a major
manufacturer of surgical instruments and supplies and is making the gift to enhance
research and education in the College of Medicine. He moved the acceptance of FCR 18.
Mr. Welenken seconded the motion, and it passed. (See FCR 18 at the end of the
Minutes.)

      DD. Establishment of the Floyd H. Wright Endowment Fund (FCR 19)

      Mr. Chellgren said that FCR 19 recommends that the Board authorize the creation
of an endowment. This action will establish an endowment to be funded with $500,000
of income to be received from earnings from investments from the Dr. Marius E.




 





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Johnston and Margaret Johnston Wright Memorial Trust. Again, it is anticipated that this
$500,000 will be matched with money from the Research Challenge Trust Fund. He
moved the adoption of FCR 19. The motion, seconded by Mr. Wilcoxson, carried. (See
FCR 19 at the end of the Minutes.)

       EE.   Estate of William T. Bryan (FCR 20)

       Mr. Chellgren stated that FCR 20 is a large and very generous distribution in
excess of $3,000,000 from the estate of William T. Bryan to create and endow
chairs/professorships and/or research initiatives to benefit the University of Kentucky.
Mr. Bryan was a resident of Sanibel, Florida and a 1936 graduate of the College of
Engineering. The total distribution from the estate could be more than $4,000,000. This
is the first distribution and the University has the flexibility to allocate this money. This,
too, should be matched by state money. He moved the adoption of FCR 20. Professor
Reedy seconded the motion, and it passed. (See FCR 20 at the end of the Minutes.(

      FF.   Drs. Barbara and James Holsinger Gift and Pledge and Establishment of
the Holsinger Professor in Anatomy (FCR 21)

      Mr. Chellgren said that FCR 21 is a gift from Drs. Barbara and James Holsinger,
Chancellor of the Chandler Medical Center. The recommendation is that the Board
accept a gift of $10,000 and a pledge of another $40,000 which should be matched by an
additional $50,000 from the Research Challenge Trust Fund to create the $100,000
necessary to fund a professorship in anatomy at the University of Kentucky Medical
Center in the Holsinger name. He noted that Dr. Holsinger was not present at the
meeting but expressed appreciation for his generous gift. He moved that the Board
accept the gift. Mr. Welenken seconded the motion, and it passed. (See FCR 21 at the
end of the Minutes.)

      Governor Breathitt thanked Mr. Chellgren for the excellent report. He then called
on Mr. Wilcoxson, Chairperson of the Investment Committee, for a report from the
Investment Committee.

      GG.   Investment Committee Report

      Mr. Wilcoxson reported that the quarter ending September 30, 1998 was not a
very good quarter with the endowment market value decreasing approximately $15
million. However, in the two months following, the endowment gained approximately
$17.5 million, and as of November 30, 1998 had a total market value of approximately
$245 million, which represents an all time high.




 





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       He reminded the Board that changes were made in the investment policies in July
1992. Some of the Board members have asked what effect these changes have had on the
endowment market value. He said he was pleased to say the endowment value had
increased by $62,192,000 due to those changes. On behalf of the Investment Committee,
he thanked Mr. Henry Clay Owen and his staff for their good work. The Committee has
the utmost respect for Mr. Owen, not only for his knowledge and his expertise but for his
dedication to his position and for providing the committee with the information and input
that is needed to make decisions.

      HH.   Governor Breathitt's Comments

      Governor Breathitt expressed appreciation to Athletic Director C. M. Newton for
his fine leadership. He said that Mr. Newton came to the University at a time when the
University needed a person of his integrity. The university's outstanding record in its
basketball program and in the football program the last two years is evidence that a
program can be run in full compliance with NCAA rules. He praised Mr. Newton and his
staff for their leadership and stated that this outstanding program could not have been
accomplished without the total support of the President of the University and the Athletic
Board.

      II.   Resolution in Memoriam

      Mr. Reed presented the following resolution in memoriam drafted by Dr. Plattner
and himself pertaining to Dr. Roy Peterson:

      WHEREAS, Dr. Roy Peterson's life exemplified courage and fortitude in his
tireless efforts to enhance learning through higher education;

      WHEREAS, Dr. Peterson's service toward those efforts were the hallmark of his
profession, his life, and his very being, both at the Council on Higher Education and as
Secretary of Education, Arts and Humanities, Commonwealth of Kentucky; and

      WHEREAS, Dr. Roy Peterson's commitment to his family, community, and the
Commonwealth have left an imposing legacy that will enrich the call for excellence in
higher education that we all hold so dear.

      He moved that the resolution be considered by the Board. Dr. Plattner seconded
the motion, and it passed. Governor Breathitt said the friends and family of Dr. Roy
Peterson would be deeply appreciative of this tribute.

      Mr. Reed added that Dr. Peterson was a wonderful person and his family are
wonderful people. He will be missed.




 








      JJ.   Meeting Adjourned

      There being no further business to come before the Board, the Chairperson
adjourned the meeting at 2:10 p.m.

                                                Respectfully submitted,



                                                Merwin Grayson, Jr.
                                                Secretary
                                                Board of Trustees

(PR 2, 3A, 4A, 5A, and 6A; FCR 1,2,3,4,5, 6,7, 8,9, 10, 11, 12, 13, 14, 15, 16, 17, 18,
19, 20, and 21 which follow are official parts of the Minutes of the meeting.)




 








                                                                PRI1


Office of the President
December 8. 1998


1.    Advanced Carbon Materials Center Established

      The National Science Foundation has selected UK as one of 12 sites for a
research center to study advanced carbon materials. The Materials Research
Science and Engineering Center will be funded by NSF and UK at $8 million over
five years and will be located at the Center for Applied Energy Research. The
center will foster research in four areas: carbon fullerenes and nanotubes, polymer
and pitch composites, electronic devices, and activated carbons.

2.    UK Fellows Society Honors Top Donors

      The UK Fellows Society recognized 175 new fellows, individuals who
have given $10,000 or more to the University, at its annual black-tie dinner at
Rupp Arena. The dinner capped a full day for UK fund-raising volunteers, who
also participated in the Development Council meeting. During the society's 32-
year history, 4,575 fellows have donated or pledged more than $357 million to the
University.

3.    Senator Ford Donates Papers to University

      Retiring Senator Wendell Ford has donated his Senate papers to the
University of Kentucky Libraries' Special Collections. The papers include 1,500
cubic feet of documents and materials from his 24-year Senate career. The
collection will take several years to organize and catalog.

4.    Allied Health Ranks on NIH Top Funding List

      The College of Allied Health Professions ranked 13th out of more than 100
allied health programs across the United States in receiving National Institutes of
Health grants. The college received a total of $172,082