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Caption: Board of Trustees Minutes - 1994 This is a reduced-resolution page image for fast online browsing.
![](https://uihistories.library.illinois.edu/REPOSITORYCACHE/143/7394cYM6289NUMt19b5vaRT65prp85HPYsL0Fl5J7m0ok2xc752Wwb8AsbBB02wy9SRqOInZy6T01VV2Whn4IQv87ex60zUUn72PZWACC8C_6088-181.jpg)
EXTRACTED TEXT FROM PAGE:
170 BOARD OF TRUSTEES [February 9 McKeever, Jr., treasurer; and Dr. Michele M. Thompson, secretary. In addition, the following persons were also in attendance: Mr. Donald K. Coe, director, University Office of Public Affairs; Mr. Kirk Hard, executive assistant to the president of the University; and Mr. R. C. Wicklund, associate secretary emeritus. EXECUTIVE SESSION DEFERRED Mr. Lamont announced that owing to the fact that the time available to the board for consideration of many issues was short, he would suggest deferring the executive session until later in the day. There was concurrence among the trustees for this change in schedule. MEETING OF THE COMMITTEE ON FINANCE AND AUDIT Mr. Lamont asked Mrs. Calder to convene the Committee on Finance and Audit. Mrs. Calder announced that this committee meeting was scheduled for the purpose of receiving a report from Vice President Bazzani on a proposal to purchase natural gas on a long-term basis to supply the University with a more economical arrangement for obtaining an assured supply of this important energy source for the University's needs. Dr. Bazzani emphasized that the assurance of a steady supply was the major concern and the basis for presenting this proposal. He told the board that it was not simply designed to save money. However, he explained that there is an expectation that the University will save $4 million over 10 years in the purchase of natural gas by implementing this long-term plan. He recommended that the University issue Certificates of Participation to provide the revenue needed. Dr. Bazzani reviewed the elements of this proposal and indicated that this would come to the board for a vote in March, at that board meeting. (Materials describing the proposed purchase plan for natural gas were distributed and are on file with the secretary.) In response to Mr. Engelbrecht's question about what might go wrong with this arrangement, particularly with regard to price, since the contract is to continue for 10 years, the board members were assured that precautions had been taken to ensure a very favorable price for the University in the contract, including mediation on costs. Further, it was explained that there is also a mechanism for ceasing this arrangement earlier than the end of the contract if necessary to protect the University by changing the physical mechanism that delivers natural gas or changing the financial arrangements. Board members were pleased with the arrangements presented for supply of this energy source and with the financial approach. It was explained that there was just one insurance organization willing to participate in this. This is the AMBAC organization.
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