xt7ttd9n3q3z https://exploreuk.uky.edu/dips/xt7ttd9n3q3z/data/mets.xml Lexington, Kentucky University of Kentucky 20000824 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, 2000-08-oct24. text Minutes of the University of Kentucky Board of Trustees, 2000-08-oct24. 2000 2011 true xt7ttd9n3q3z section xt7ttd9n3q3z

AGENDA

MVeeting of the Board of Trustees
University of Kentucky
1:00 P.M.
October 24, 2000

Invocation

Roll Call

Approval of Minutes - (Consent)

President's Report and Action Items

PR 1 President's Report to the Trustees
A. Paducah Engineering Program

PR 2 Personnel Actions

PR 3 Central Administration
A. Proposed Amendment to the Governing Regulations - (Consent)

PR 4 Community College System (No items to report)

PR 5 Lexington Campus
A. Establishment of Baccalaureate Degree Programs in Engineering at
Extended Campus Site in Paducah, Kentucky - (Consent)

PR 6 Medical Center
A. Establishment of a Center for Sensor Technology
B. Establishment of a Department of Rehabilitation Sciences
C. Establishment of a Women's Health Center

Finance Committee

1. Acceptance of Interim Financial Report for the University of Kentucky for the
Three Months Ended September 30, 2000
2. Acceptance of the 2000 Annual Report and the Financial Statements of the University
of Kentucky and Affiliated Corporations and Other Related Organizations for the
Year Ended June 30, 2000
3. Disposal of Surplus Property
4. Report of Lease
5. Patent Assignment Report
6. Abercrombie Foundation Pledge
7. Anonymous Gift and Pledge
8. C. Michael Garver Pledge
9. Carl F. Pollard Gift and Pledge
10. Changing Name of Professorship in Chandler Medical Center
11. Chris T. Sullivan Pledge
12. David H. Kaufman Pledge

13. Development Dimensions International Pledge
14. Gifts to Create Carey Professorship
15. Jane I. Morris Estate Gift
16. John Edwin and Gwendolyn Gray Partington Estate Gift
17. Kathleen Strunk Gift
18. Lindemann Foundation Pledge
19. Lucille Caudill Little Pledge
20. Michael P. Thornton Pledge
21. Reese S. Terry, Jr. Pledge
22. S. J. "Sam" Whalen Pledge
23. Synapse, Ltd., Gift and Pledge
24. Toyota Motor Manufacturing North America, Inc., Pledge
25. A Resolution of the Board of Trustees of the University of Kentucky Authorizing the
Issuance of Said Board's Housing and Dining System Revenue Bonds, Series R,
to be Dated the First Day of the Month in Which Sold; Authorizing Proper Proceedings
Relative to the Public Sale of the Bonds and the Disposition of the Proceeds Thereof;
Authorizing Execution of a Tenth Supplemental Trust Indenture Between the Board and
Farmers Bank & Capital Trust Company, Frankfort, Kentucky, as Trustee, in Compliance
with the Provisions of the Trust Indenture Dated June 1, 1965
26. Resolution of the Board of Trustees of the University of Kentucky Accepting the Successful
Bid for the Purchase of $29,870,000 Principal Amount of University of Kentucky
Consolidated Educational Buildings Revenue Bonds, Series Q, Dated October 15, 2000
and Amending its Bond Resolution with Respect Thereto to Provide for the Issuance
of Book-Entry Only Bonds and Redemption Prior to Maturity at Par

Minutes of the Meeting of the Board of Trustees of the University of Kentucky, Tuesday,
October 24, 2000.

The Board of Trustees of the University of Kentucky met at 1:00 p.m. (Lexington time)
on Tuesday, October 24, 2000 in the Board Room on the 18th floor of Patterson Office Tower.

A. Meeting Opened

Billy Joe Miles, Chairperson, called the meeting to order at 1:00 p.m., and the invocation
was pronounced by Jimmy Glenn.

B. Roll Call

The following members of the Board of Trustees answered the call of the roll: Governor
Edward T. Breathitt, Mr. Paul W. Chellgren, Ms. Marianne Smith Edge, Mr. James Glenn III,
Mr. Merwin Grayson, Mr. John "Jack" Guthrie, Dr. Loys L. Mather, Dr. Robert P. Meriwether,
Mr. Billy Joe Miles (Chairman), Dr. Elissa Plattner, Mr. Steven S. Reed, Dr. Daniel R. Reedy,
Ms. Marian Sims, Ms. Alice Sparks, Dr. W. Grady Stumbo, Ms. JoEtta Y. Wickliffe, Mr. Russell
Williams and Ms. Elaine Wilson. Absent from the meeting were Mr. C. Frank Shoop and Mr.
Billy B. Wilcoxson. The University administration was represented by President Charles T.
Wethington, Jr.; Chancellors James W. Holsinger, and Elisabeth Zinser; Vice Presidents
Fitzgerald Bramwell, Joseph T. Burch, Ben W. Carr, Edward A. Carter, George DeBin and
Eugene Williams; Dr. Juanita Fleming, Special Assistant for Academic Affairs; 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 1:03 p.m.

C. Consent Agenda

Mr. Miles stated that there were three items on the consent agenda:

Approval of Minutes
Proposed Amendment to the Governing Regulations (PR 3A)
Establishment of Baccalaureate Degree Programs in Engineering at Extended
Campus Site in Paducah, Kentucky (PR 5A)

Ms. Sims moved approval of the Consent Agenda. The motion, seconded by Ms. Wilson,
carried. (See PR 3A and PR 5A at the end of the Minutes.)

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

President Wethington asked that the Board read all of PR 1 at their leisure. He called
particular attention to the following items in the report:

1. The College of Medicine researchers received a five-year, $8.2 million grant from the
National Institutes of Health to establish the Center of Biomedical Research
Excellence in Women's Health.

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2. The New York Metropolitan Opera has scheduled a district audition competition at
Memorial Hall on Saturday, October 28th. Gail Robinson, an endowed chair holder,
is credited with bringing this prestigious competition to campus for the first time.

3. The official groundbreaking ceremony for the Women's Cancer Facility was held
earlier this month. The $9.2 million facility will be a part of the McDowell Cancer
Center and will focus particularly on women's health and women's cancer.

4. The Lucille Caudill Little Fine Arts Library and Learning Center opened in early
October. There will be an official opening ceremony later in the semester when it is
fully equipped.

5. The Max Kade German House, a residential facility on campus, is officially open and
will house eight UK students each year in a completely German-speaking
environment.

6. Harold Burson, the founder and chairman of the world-renowned Burson-Marsteller
Public Relations of New York, was the speaker for the first James Bowling
Executive-in-Residence Lecture series. Tommy Preston received the first University
of Kentucky Lifetime Achievement Award for Public Relations.

7. Beginning in January 2001, UK's Survey Research Center will be the new
headquarters for the National Network of State Polls (NNSP). The NNSP houses the
world's largest collection of state-level survey data.

8. The Center on Drug and Alcohol Research received a $2.19 million grant from the
National Institute on Alcohol Abuse and Alcoholism.

9. Dean Leon Assael of the College of Dentistry has been named editor-in-chief of the
Journal of Oral and Maxillofacial Surgery beginning in 2002.

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

E. Personnel Actions (PR 2)

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

F. Establishment of a Center for Sensor Technology (PR 6A)

President Wethington stated that PR 6A is a recommendation that the Board of Trustees
approve the establishment of a Center for Sensor Technology. He noted that the goals of the
Center are (1) to develop new sensor technologies and instrumentation; (2) to train students,

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postdoctoral fellows, and faculty in sensor-based methodology; (3) to formalize relationships
with industry for development and production of new instrumentation; and (4) to serve as a
technology center for the University of Kentucky and for the scientific community at large. Dr.
Greg Gerhardt was recruited to this University and is in large measure responsible for working
with the existing faculty and staff in putting together what will be a fine addition to the Medical
Center. President Wethington stated that he was pleased to recommend PR 6A for approval.

Ms. Sparks moved approval. The motion, seconded by Dr. Reedy, passed. (See PR 6A
at the end of the Minutes.)

Mr. Miles asked if this Center would be coordinated with any other department, such as
Engineering. President Wethington call on Dr. Holsinger who stated that at this time the Center
would deal with biological and biochemical sensors that work and deal with problems in the
neuro system, the brain and the spinal cord. As it expands and grows in years to come, it is
expected to work not only in biomedical engineering but also with chemical and electrical and
the robotics center as well. President Wethington added that at this point it is a Medical Center
effort and is assigned to the Chancellor of the Medical Center. If the Center broadens its scope
and involves other units outside the Medical Center, it would be reassigned to the Vice President
for Research and Graduate Studies.

G. Establishment of a Department of Rehabilitation Sciences (PR 6B)

President Wethington stated that PR 6B is a recommendation that the Board of Trustees
approve the establishment of a Department for Rehabilitation Sciences in the College of Allied
Health Professions. This proposal will combine Communications Disorders and Physical
Therapy into one Department of Rehabilitation Services. He expressed his delight in
recommending PR 6B for the Board's approval.

Ms. Edge moved approval. The motion, seconded by Ms. Wilson, carried. (See PR 6B at
the end of the Minutes.)

H. Establishment of a Women's Health Center (PR 6C)

President Wethington stated that PR 6C is a recommendation that the Board of Trustees
approve the establishment of a Women's Health Center. He noted that this Center is to advance
the health, well-being, and self-esteem of women in Kentucky. This Center has been through the
various approval processes inside the University of Kentucky and has been recommended by the
Chancellor of the Medical Center as well as the University Senate. He stated his pleasure in
recommending this important initiative to the Board.

Dr. Stumbo moved approval. The motion, seconded by Ms. Sims, passed. (See PR 6C at
the end of the Minutes.)

I. Paducah Engineering Program (PR 1A)

President Wethington asked Chancellor Zinser to introduce Dean Tom Lester.
Chancellor Zinser commented that PR 5A, which pertains to the establishment of a B.S degree in

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Chemical Engineering and a B.S. degree in Mechanical Engineering at the extended campus in
Paducah, is primarily designed to serve the Jackson Purchase Area of Western Kentucky. She
added that the program in Paducah is a significant part of the University's mission to reach out
across the state in engineering education.

Chancellor Zinser stated that Dean Lester is very outreach-oriented, very eager and able
to form partnerships with other organizations and universities to promote engineering in the state
of Kentucky. She expressed her appreciation for his leadership in the College of Engineering.
She added that Dean Lester came to the University of Kentucky in July of 1990. His previous
academic and professional experiences include professor and chair of Mechanical Engineering at
Louisiana State University; professor of Nuclear Engineering at Kansas State University; an
experimental engineer in compressor development for Pratt & Whitney Aircraft in Florida; and
an engineer with the U.S. Environmental Protection Agency at the Research Triangle Park in
North Carolina. His bachelor, master and doctoral degrees are all from Purdue University and all
in Mechanical Engineering. He and twenty-five of his graduate students were recognized for
excellence in combustion, pulverized coal, and the incineration of hazardous waste. He has
achieved the award called the Ralph Teeter Award from the Society of Automotive Engineers.
He has the Dow Young Faculty Award from the American Society of Engineering Education,
and he has, on three different occasions, been a visiting scholar at the University of Karlsrue in
Germany.

Dean Lester received a round of applause from the Board of Trustees. Dean Lester and
Associate Dean G. T. Lineberry gave the following report.

UK's Extended Engineering Education Initiative in Paducah
by
Thomas W. Lester, Dean of Engineering and
G.T. Lineberry, Associate Dean for Extended Campus Programs

UK's College of Engineering extended campus program in Paducah has proved to be an
unqualified success. The planning for the extension of engineering education to the Far Western
portion of Kentucky began more than a decade ago in the summer of 1990. President Wethington
asked Graduate Dean Daniel Reedy, Engineering Dean Thomas Lester, Education Dean Edward
Sagan, and Vice Chancellor of Research (Lexington Campus) Len Peters to visit not only
Paducah, but also Madisonville and Owensboro, to ascertain the need for and the extent of public
support for graduate education offerings in those communities. As a result of those visits, UK
began offering extended campus graduate programs in engineering and education via
compressed video in the spring of 1991.

Over the next three years, it became apparent that the need for engineering education in
Paducah was even more critical than originally imagined. The potential closure of the Paducah
Gaseous Diffusion Plant, a facility that produces nuclear reactor fuel and that employs up to
1,800 workers in relatively high paying positions, underscored the need for UK to expand its
engineering offerings to include full-four-year undergraduate degrees in selected fields. Out of
this need developed a public/private partnership of the Paducah community, the University of
Kentucky, and the State of Kentucky that has resulted in perhaps the most unique extended
campus engineering program in the nation.

- 5 -

Beginning in the fall semester 1997, UK's College of Engineering, in cooperation with
Paducah Community College, Murray State University's Department of Engineering Physics and
College of Technology, began offering course work leading to the Bachelor of Science degrees
in chemical engineering and in mechanical engineering. From that point, the program has grown
to the point that more than one hundred students are enrolled in engineering course work. An
additional and approximately equal number of students are enrolled in pre-engineering course
work, offered primarily through Paducah Community College. Surveys indicate that the
enrollment in these programs has come from students who, in the main, would not have come to
UK to major in engineering. Tracking surveys of College of Engineering enrollment from the
largest dozen high schools in the Purchase Region indicate that the number of students attending
UK's engineering programs from those high schools in both Paducah and in Lexington has more
than doubled in four years. Four of the students have already completed all requirements for the
bachelor's degree in mechanical engineering, and it is expected that the first two students will
complete the requirements for the degree in chemical engineering in May 2001.

The two-degree programs, which are nearly identical to the programs on the Lexington
Campus, are offered by a combination of on-site instruction and through electronic means. A
contingent of eight full-time faculty, lead by Dr. William Murphy, Director of Extended Campus
Engineering Programs in Paducah, has been recruited during the past three years and includes
individuals with doctoral degrees in engineering from Purdue University, the University of Texas
at Austin, Vanderbilt University, The University of Tennessee at Knoxville, The Ohio State
University, and the University of Kentucky. These individuals have been hired in Special Title
Series positions as faculty in the Departments of Chemical and Materials Engineering and
Mechanical Engineering, and they are expected to devote themselves primarily to the
undergraduate educational mission. Since they were hired to complement the Lexington Campus
faculty, they are also providing specialized technical electives on the Lexington Campus through
electronic means, and cooperating in research initiatives with their colleagues in Lexington. Five
additional faculty members at Murray State University have been granted faculty status on UK's
engineering faculty and actively participate in providing a significant percentage of the upper
division course work in engineering on-site and electronically from Murray State University.

The programs are housed in Crounse Hall, a new state-of-art facility on the campus of
Paducah Community College that was built with over $8.5 million in private donations provided
by the citizens of the Paducah/McCracken County area. The Commonwealth of Kentucky
provides the operating budget for the facility through a line-item appropriation to the University
of Kentucky. That appropriation of approximately $1.5 million annually, not only supports the
operation and maintenance of Crounse Hall, but also the salaries of the eight full-time faculty,
the outstanding staff that support those faculty, the release time for the Murray State faculty
engaged in the effort, and the operating budget of the programs.

It is anticipated that once the programs are fully-developed, approximately 200 students
from the Purchase Region will be enrolled in engineering course work offered on-site in
Paducah. It is also anticipated that the University will be awarding 30 or more undergraduate
degrees to those students annually. Following the graduation of the first students from the
chemical engineering program, the University will seek accreditation from the Engineering
Accreditation Commission of the Accreditation Board for Engineering and Technology
(EAC/ABET).

President Wethington thanked Dean Lester for his presentation and entertained questions
from the Board.

Mr. Miles asked about programs in Eastern Kentucky.

Dean Lester responded by stating that the initiatives at this time will have to come from
their comprehensive institutions. He noted that a statewide conference on extended campus
engineering education will be held on November 6th at the Council on Postsecondary Education
office to educate people from other institutions about what the University of Kentucky is trying
to do. He added that Associate Dean Lineberry had been working very diligently with the
community colleges and the private colleges in the state to set up more access points to have
more pre-engineering programs set-up that could feed into the programs in Lexington.

Ms. Sparks asked how long would it be before the program is ready for an accreditation
team visit.

Dean Lester said that there are currently four students who have completed their degree
requirements in Mechanical Engineering, and there will be two students completing their degree
requirement in May for Chemical Engineering. He noted that the earliest they would be ready
for the accreditation visit is October of 2001. If all goes well in that visit, the earliest they could
officially have an accreditation of the program would be the summer of 2002.

President Wethington said that the engineering shortage and the need to meet engineering
needs across the Commonwealth have increased considerably since the University started the
program in Paducah. He commended Dean Lester, Associate Dean Lineberry and the faculty
and staff in the College of Engineering for the work they are doing to deliver engineering
education to the Commonwealth of Kentucky.

J. Acceptance of Interim Financial Report for the University of Kentucky for the
Three Months Ended September 30. 2000 (FCR 1) and Acceptance of the 2000
Annual Report and the Financial Statements of the University of Kentucky and
Affiliated Corporations and Other Related Organizations for the Year Ended June
30. 2000 (FCR 2)

Dr. Stumbo reported that the Finance Committee met that morning. He stated that FCR 1
is the acceptance of the Interim Financial Report for the University of Kentucky for the Three
Months Ended September 30, 2000. He noted that expenditures and income are on target for the
year, and the University's cash flow is in a good position. There were no extraordinary items that
needed to be brought before the Committee or the Board.

Dr. Stumbo continued with FCR 2, stating that Mr. Owen made the presentation to the
Finance Committee, and the auditors made their report. Dr. Stumbo stated that there were no
problems with the annual report, and the Finance Committee accepted it.

Dr. Mather moved adoption of FCR 1 and FCR 2. Ms. Wilson seconded the motion, and
it carried. (See FCR's 1 and 2 at the end of the Minutes.)

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K. Disposal of Surplus Property (FCR 3)

Dr. Stumbo stated that FCR 3 requires the Board's action to dispose of surplus property.
He moved the adoption of FCR 3. The motion, seconded by Governor Breathitt, passed. (See
FCR 3 at the end of the Minutes.)

L. Report of Leases (FCR 4)

Dr. Stumbo stated that FCR 4 is the report of leases for the University. He noted that the
only item in the report is a change in ownership of a building that the University leases. He
moved the adoption of FCR 4. Ms. Wilson seconded the motion, and it carried. (See FCR 4 at
the end of the Minutes.)

M. Patent Assignment Report (FCR 5)

Dr. Stumbo said that FCR 5 is the patent assignment report that contains twelve patents.
He reported that there were three basic areas: physical sciences, pharmaceutical sciences, and
agriculture sciences. He moved the adoption of FCR 5. The motion, seconded by Mr. Williams,
passed. (See FCR 5 at the end of the Minutes.)

N. Finance Committee Consent Agenda (FCR 6-24)

Dr. Stumbo stated that the following items would be voted upon as a consent agenda:

FCR 6 - a pledge of $225,000 from the Abercrombie Foundation for the Markey Cancer
Center's Ovarian Cancer Screening Program,
FCR 7 - an anonymous gift of $100,000 and pledge of $150,000 to establish and endow a
professorship/chair in physician leadership development in the College of
Medicine,
FCR 8 - a pledge of $1,000,000 from C. Michael Garver to fund the C. Michael Garver
Endowment Fund in the College of Engineering's Department of Civil
Engineering,
FCR 9 - a gift of $100,000 and a pledge of $400,000 from Carl F. Pollard for the William
T. Young Library Endowment to support the library collection for the benefit of
research and graduate programs of the University,
FCR 10 - changing the name of an endowment from U.S. Surgical Corporation
Professorship in Minimally Invasive Surgery to U.S. Surgical-Pfizer
Professorship/Chair in Medical Management and accept gifts totaling $150,000
to fund the professorship,
FCR 11 - a pledge of $2,000,000 from Chris T. Sullivan for the William T. Young
Library Endowment to support the library collection for the benefit of research
and graduate programs of the University,
FCR 12 - a pledge of $25,000 from David H. Kaufman with a matching gift from The
General Electric Company for a total of $50,000 to establish and endow the
David H. and Barbara Schlund Kaufman Professorship in the Carol Martin
Gatton College of Business and Economics,

FCR 13 - a pledge of $ 100,000 from Development Dimensions International to establish
and endow the Development Dimensions International Professorship in
Behavioral Sciences in the School of Public Health in the College of Medicine,
FCR 14 - gifts of $50,000 from friends and colleagues of the late William "Jack" Carey,
M.D., to create and endow the William "Jack" Carey, M.D., Professorship in
Emergency Medicine in the College of Medicine's Department of Emergency
Medicine,
FCR 15 - a gift of $387,469 from the estate of Jane I. Morris to establish and endow the
Joe and Jane I. Morris Endowment Fund to benefit the University of Kentucky
Alumni Association,
FCR 16 - a gift of $268,000 from the estate of John Edwin Partington and Gwendolyn
Gray Partington to establish and endow the John Edwin Partington and
Gwendolyn Gray Partington Scholarship Fund in the College of Education,
FCR 17 - a gift of $929,081 from Kathleen Strunk to the Thurston H. Strunk Scholarship
Fund in the College of Engineering,
FCR 18 - a pledge of $500,000 from the Lindemann Foundation, Inc. to create and
endow the Endowed Enrichment Fund for Research in Vocal Studies in the
School of Music in the College of Fine Arts,
FCR 19 - a pledge of $500,000 from Lucille Caudill Little to create and endow the
Lucille Caudill Little Endowment for Theatre in the Department of Theatre in
the College of Fine Arts,
FCR 20 - a pledge of up to $1 00,000 from Michael P. Thornton to create and endow the
Paul A. Thornton Graduate Student Fellowship in Nutritional Sciences in the
College of Allied Health Professions,
FCR 21 - a pledge of $ 100,000 from Reese S. Terry, Jr. to establish an endowed
professorship in the Department of Electrical Engineering in the College of
Engineering,
FCR 22 - a pledge of $500,000 from S. J. "Sam" Whalen to establish a graduate
fellowship endowment fund in the Department of Chemical and Materials
Engineering in the College of Engineering,
FCR 23 - a gift of $50,000 and a pledge of $ 100,000 from Synapse, Ltd., on behalf of the
company president Leon D. Wang, to establish three professorships in the
College of Medicine's Department of Physiology, and
FCR 24 - a pledge of $ 1,000,000 from Toyota Motor Manufacturing North America,
Inc., for the William T. Young Library Endowment to support the library
collection for the benefit of research and graduate programs of the University.

Dr. Stumbo reminded the Board of the $600 million Capital Campaign goal and noted
that these pledges bring the Capital Campaign to $344 million thus far. He also pointed out that
the University has matched $41 million of the projected $66 million in the Research Challenge
Trust Fund. He said that these figures represent what an asset that President Wethington has
been in terms of the financial stature of the University.

Dr. Stumbo moved the adoption of FCR items 6-24. The motion, seconded by Ms. Sims,
carried. (See FCR 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23 and 24 atthe
end of the Minutes.)

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0. A Resolution of the Board of Trustees of the University of Kentucky Authorizing
the Issuance of Said Board's Housing and Dining System Revenue Bonds. Series
R. to be Dated the First Day of the Month in Which Sold; Authorizing Proper
Proceedings Relative to the Public Sale of the Bonds and the Disposition of the
Proceeds Thereof; Authorizing Execution of a Tenth Supplemental Trust
Indenture Between the Board and Farmers Bank & Capital Trust Company.
Frankfort. Kentucky. as Trustee, in Compliance with the Provisions of the Trust
Indenture Dated June 1. 1965 (FCR 25)

Dr. Stumbo stated that FCR 25 is a resolution to give the University permission to issue
bonds. He noted that the second paragraph states what the bonds will be used for within the
Kentucky Housing and Dining System. On motion made by Dr. Stumbo, seconded by Ms.
Wilson and passed, FCR 25 was approved. (See FCR 25 at the end of the Minutes.)

P. Resolution of the Board of Trustees of the University of Kentucky Accepting the
Successful Bid for the Purchase of $29,870.000 Principal Amount of University
of Kentucky Consolidated Educational Buildings Revenue Bonds. Series 0.
Dated October 15, 2000 and Amending its Bond Resolution with Respect Thereto
to Provide for the Issuance of Book-Entry Only Bonds and Redemption Prior to
Maturity at Par (FCR 26)

Dr. Stumbo said that FCR 26 is the acceptance of a bond bid proposal for work on Seaton
Hall and Parking Structure #2. He stated that Mr. Owen reported the nine bids to the Finance
Committee and also reported that Moody's had upgraded the University's bond rating from an Al
to an AA3. He noted that in accepting this resolution the Board would be accepting the bid from
Banc One Capital Markets. Dr. Stumbo moved the adoption of FCR 26. The motion, seconded
by Mr. Grayson, carried. (See FCR 26 at the end of the Minutes.)

Q. Accreditation Committee Report

Ms. Sparks reported that the Steering Subcommittee of the Accreditation Committee
meets at least monthly and usually bi-monthly. She noted that there are nine principal
committees and twelve subcommittees. These committees are very busy interviewing staff,
students, and administrators. The committees would like to interview some of the Board
members as well, and she has assured them that the Board would be happy to cooperate.

She reported that there is an extremely long list of "must statements", but the University
is in very good shape, especially under the leadership of Dr. John Piecoro. The University goes
through the accreditation process every ten years, and there is a separate accreditation process for
Lexington Community College. Ms. Sparks reminded the Board members to keep April 15,
2002 open for dinner with the SACS group.

R. Investment Committee Report

Mr. Grayson, Chairperson of the Investment Committee, noted that the Committee is
comprised of JoEtta Wickliffe, Daniel Reedy, Billy Wilcoxson, Russ Williams, and Merwin
Grayson. He reported that the Investment Committee monitors the performance of the
University's investment managers, and has presentations at nearly every meeting from one of the

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multiple managers. Occasionally in the monitoring process and in consultation with staff and
outside consultants, the Committee determines that a manager should be changed. At the
Committee's meeting last week with 100% attendance as well as Mr. Henry Clay Owen, his staff
and President Wethington, the committee solicited proposa