KU The University Daily Kansan Weather Today: Partly Cloudy with a high of 39 and a low of 22 Tomorrow: Partly Cloudy with a high of 38 and a low of 20 THE STUDENT NEWSPAPER OF THE UNIVERSITY OF KANSAS Thursday, November 16,2000 Sports: Jayhawks lack a deep bench as they prepare for the season home opener. SEE PAGE 8A Inside: Lawrence ranks fourth in "most single people" in a Money magazine ranking. For comments, contact Nathan Willis or Chris Borniger at 864-4810 or e-mail editor@kansan.com SEE PAGE 3A (USPS 650-640) • VOL.111 NO.7 14 WWW.KANSAN.COM Court confirms fund belongs to Watkins Hall Bv Jason Krall By Jason Krall writer@kansan.com Kansan staff writer The Kansas Court of Appeals has denied an appeal by the University of Kansas and Bank of America on a ruling declaring the women of Watkins Scholarship Hall beneficiaries of a trust fund for hall improvements. That clears the way for an order that the women gain access to the fund's accounting records. the women filed suit in February demanding the bank disclose information about how the fund has been invested that could reveal why the fund's annual interest return has declined steadily from about $200,000 in 1984 to $84,000 last year. Meanwhile, the fund's principal has grown from $1.8 million 15 years ago to $3.5 million in 1999. The trust is designated for improvements at Watkins and Miller scholarship halls, said David Brown, attorney for the women. "For us, this is a victory, and I'm hoping that this will mean that the court will finally get to hear the evidence in this case," Brown said. "The bank and the University have done nothing but try to prevent the court from hearing the real evidence in this matter." Though the case still is pending in Douglas County District Court, the bank and the University were able to file a special appeal on Judge Jack Murphy's decision to declare the women beneficiaries. The bank and the University now have 30 days to appeal the appellate decision to the Kansas Supreme Court. If they don't, or if that appeal fails, hearings will take place to determine exactly which records must be disclosed. Brown said. Lynn Bretz, interim director of University Relations, said that University general counsel had not received the ruling yesterday and that she was unable to comment on how the University might proceed. "We've been confident all along that the trust has been managed appropriately," Bretz said. "We're working to get this resolved." Though the women sued only Bank of America, the University, acting as beneficially of the trust, moved to be included in the suit to defend the accounting records. Brown said the two halls needed a number of improvements, including the addition of central airconditioning systems. — Edited by Shawn Hutchinson What happened? The Kansas Court of Appeals denied a motion by the University and Bank of America on a ruling that declared the women of Waikimis Scholarship Hall beneficiates of a trust fund for hall improvements. What it means: The women will proceed with their court battle to obtain access to the fund's accounting records. What's next? The University and the bank have 30 days to appeal the decision to the Kansas Supreme Court. Housing rates to jump in fall By Jason Kraill writer@kansan.com Kansan staff writer Residence hall rates could see its largest one-year increase next fall as student housing rates increase across the board. The Board of Regents is considering a proposal to raise the price of a double occupancy room with a 19-meal plan from $4,114 to $4,348—a $234 increase. Jayhawker Towers rates would increase by $118. One-bedroom apartments at Stouffer Place would cost $239 a month, $5 more than this year. The addition of cable television and central air conditioning in K.K. Amini and Margaret Amini scholarship halls is expected to drive its rates up to $3,034—a $240 rate hike. Miller and Watkins scholarship halls will see a $38 increase, while the six other scholarship hall rates will have up $184 to $2,978. Ken Stoner, director of student housing, said rising costs of electricity and natural gas caused the increase. Improvements to computer networks in residence halls, the Towers and scholarship halls, and the addition of caller ID also are covered by the increase. The cost of a double-occupancy room with 19 meals per week increased $173 this fall, $109 in the fall of 1989 and by $96 in each of the two previous years. Since Fall 2005, the cost increased $474 and could lump $234 more next year. The Board of Regents is reviewing the proposal at its meeting this week in Goodland. The plan will go for final approval in December. The KU Student Housing Advisory Board (SHAB) recommended the increase unanimously in October. stoner said the College Board, based in New York, released a study showing that KU students in double- occupancy residence hall rooms pay $846 less than the average cost at public universities nationwide and $2.095 less than at private schools. Michael Hevel, president of the Association of University Residence Halls and Waverly senior, is a member of SHAB. "I think everyone felt fine with the new rates, mainly because we were 12th in the Big 12 last year in housing rates, and we'll be 12th or 11th again this year." Hevel said. Lisa Zeeski, Leavenworth sophomore, lives in the Towers and plans to live there next year "It's a lot cheaper than what students off campus pay," she said. Edited by Warisa Chulindra Hard to swallow The University guzzles about $800,000 a year through its contract with Coke — but that money directly benefits only a few students By Jason Krall Kansan staff writer Erica Rahn drops four quarters into a rumbling Coke machine in the basement of Wescoe Hall. It's a daily ritual for Rahn. She usually buys a Dasani, The Coca-Cola Company's brand of bottled water. If those are sold out, the Topeka junior gets a regular Coke instead. The University reimburses the stu Of each dollar fed into Coke machines daily by Rahn and 26,000 KU students, the University of Kansas gets 55 cents and Coke 45 cents. The University's revenue from the deal — this year, $760,000 — is partially used to reimburse campus entities that formerly handled their own vending services for lost profits. They include the Kansas University Memorial Corp., which operates the Kansas and Burge unions, as well as the University of Kansas Athletics Corp., the Department of Student Housing and the Edwards Campus. For each dollar funneled back to students from the contract, 50 cents go toward scholarships for about 350 National Merit Scholars and 38 cents go toward scholarships for about 170 children of KU faculty and staff. That leaves only 12 cents from each dollar for student clubs, organizations, programs and events benefiting all 26,000 students. Since University officials signed an exclusive contract for soft drink vending on campus with Coke three years ago, some students and faculty have criticized the deal. They say the University's cut of sales benefits too few students and students deserve a stronger voice in how the money is used. Others complain that the contract creates a soda monopoly. Some faculty say a long-term relationship with an influential corporation limits intellectual freedom. Students resent paying for football and basketball tickets for Coke executives with their quarters. Others would simply rather have a Pepsi. But unquestionably, the deal provides additional cash for the University and represents a growing trend toward commercialization at universities nationwide. The University's cut dent unions $137,000 per year The Athletic Corporation gets $241,000 annually from the deal, said Theresa Klinkenberg, the director of administration who supervises the Coke deal The remainder of the money — almost $400,000 — is split between scholarships for National Merit Scholars and children of faculty and staff, with a smaller portion left for student programming. Students who are dependents of KU employees receive $1,000 renewable Coke scholarships in their freshman year with funds from the deal — an annual total of about $150,000. "Employee dependent scholarships are something we've always wanted to do but never had a funding source for." Klinkenberg said. KU's National Merit Scholars receive about $200,000 each year in Coke cash — about 10 percent of KU's scholarship money for National Merit Scholars, she said. The remaining $50,000 is divided among student organizations, programs and events such as guest speakers. "We didn't want to permanently fund anything," Klinkenberg said. "We wanted this money to be as flexible as possible." Chancellor Robert Hemenway said using the money to support merit scholars raised academic standards and the prestige of the University, which benefited every student. "I think more of it should go to benefit more students, not just National Coke customers such as Rahn expressed surprise that so much Coke money went toward scholarships for so few students. Rahn said the money should be used to buy new computers or replace aging KU on Wheels buses. Consumption of Coke Products On the University of Kansas campus from Aug. 1, 1999 to July 31, 2000 Ounces per year in bottles 13,679,040 Ounces per year in cans 2,481,408 Total ounces per year 16,160,448 Total bottles per year 683,952 Total cans per year 206,784 Total containers per year 890,736 Bottles per week* 16,800 Cans per week* 4,800 Ounces per week in bottles* 336,000 Ounces per week in cans* 57,600 Total ounces per week* 393,600 Total gallons per week* 3,075 Total gallons per year 126,253.5 * while classes are in session "To say that this money doesn't benefit you because you didn't get a scholarship I think is a very short-sighted view." Hemenway said. "Recruiting National Merit Scholars is something that good universities do because they know that academically talented students will be a stimulus for the reputation of the University. I don't know how you build an academically challenging university if you don't recruit those students." Source: Theresa Klinkenburg, director of administration Merit Scholars and professors' kids," she said. Michael Coggins is one of the staff members' children whose scholarship was financed by quarters dropped into campus Coke machines. Coggins, Lawrence freshman and son of George Coggins, professor of law, is a Coke Merit Scholarship recipient. Michael Coggins said that although he supported the use of the money for scholarships for children of faculty and staff, he would like to see it used for more general scholarships as well. "If more money came in — unless there's a faction of the student body that's not being represented in the scholarship pool — I think it should go more towards student programs, or toward Watkins Health Center and their expansion," Coggins said. Melissa Carr/KANSAN Dividing the funds The KU/Coca-Cola University Program Support Subcommittee, which works under the Coke Partnership Council that oversees the deal, allocates about $50,000 a year in vending sales for student programs and organizations. The subcommittee includes Ann Eversole, interim dean of students; Danny Kaiser, director of the Student Organization and Leadership Development Center; Kathryn Tuttle, director of the Freshman-Sophomore Advising Center; and one student representative, Marlon Marshall, student body vice president. The partnership council caused See COKE on page 5A The view on Coke "It sends the message that the University is for sale. It would be one thing to accept contributions from Coke, but it's quite another to craft it as a business deal." Tim Miller chairman of religious studies "To say that this money doesn't benefit you because you didn't get a scholarship I think is a very short-sighted view." Robert Hemenway chancellor "There are 26,000 students here. We need something to make sure that this money will benefit all students. We need to look at it and say, Who is this really benefiting?" Marlon Marshall student body vice president Melissa Carr/KANSAN Photo by Brad Dreir/KANSAN Student injured in one-car accident A KU student was listed in serious condition yesterday after she lost control of her car on Kansas Highway 10 near Eudora. Douglas County Sheriff's Lt. Don Crowse said Emily Schute, Olathe senior, was taken by helicopter to the University of Kansas Medical Center after her 1998 Pontiac Sunfire rolled several times in the 11:30 a.m. accident. Crowe said a gust of wind likely caught Schutte's car as she came off the Wakarusa bridge. "She lost control and overcorrected," Crowe said. "The car flipped about four times." John Stratton, witness to the accident and director of KU's Edwards Campus library, said he and the semitrailer driver behind him both stopped at the scene. The truck driver called 911, and the two ran to Schutte's car. Stratton said Schutte was conscious; "She was very frightened, as were we," Stratton said. She was very tight-knit, as were the students. The first person to arrive on the scene was an emergency medical technician from Eudora, Stratton said. The EMT questioned Schultz to see if she knew her name, address, what day of the week it was and where she was. Stratton said she answered the questions. "It happened so quickly; it was mindboggling." Stratton said. — Lauren Brandonburg