Repository: UIHistories Project: Board of Trustees Minutes - 1972 [PAGE 464]

EXTRACTED TEXT FROM PAGE:

454

BOAED OF TRUSTEES

[November 19

4. T h a t allotments be made for nonacademic employees so as to provide funds sufficient to permit increases averaging five per cent for eligible staff members in each of the following categories: prevailing-wage groups, negotiated-wage groups, open-range groups. T h e University Budget Committee has proposed further that the President be authorized to approve recommendations for salary increases submitted by the chancellors and other administrative officers, under the general conditions outlined herein — effective December 1, 1971, or as soon thereafter as possible. It is believed that the necessary payroll changes can be made in time to be reflected in salary payments for the month beginning December 1, 1971 (including the increases to meet prior commitments, which would become effective as of November IS, 1971). If the payroll procedures cannot accommodate the regular payment date for the month beginning December 1, the increases applicable to that month shall be incorporated into the payments made on the next regular date. I concur, subject to the applicable regulations issued under Phase II of the federal wage-control program.

On motion of Mr. Swain, this recommendation was approved by the following vote: Aye, Mr. Forsyth, Mr. Hahn, Mr. Howard, Mr. Hughes, Mr. Neal, Mr. Pogue, Mr. Swain; no, none; absent, Dr. Bakalis, Mr. Grimes, Governor Ogilvie, Mr. Steger. In acting upon this matter the Trustees directed the Secretary to convey the deep appreciation of the Trustees to the legislative leaders of both parties whose efforts to develop a workable compromise made the general salary increases feasible.

CHANGE ORDER. COMPUTING SERVICES DATA PROCESSING EQUIPMENT, URBANA (24) T h e President, with the concurrence of appropriate administrative officers, recommends a change order in the existing I B M lease agreement to permit the lease-purchase of certain computer equipment at the Urbana-Champaign campus. T h e Computing Services Office is presently leasing a 360/7S computing system from the I B M Corporation which was installed on December S, 1967, to replace then-existing data processing equipment and to meet the computer requirements of the campus. Since that time, a network of computing facilities has been deployed on the campus which is supported by this IBM 360/75 computer. Because of the rapid changes in computer technology and to maintain the most suitable equipment for the Computing Services Office, commensurate with the needs and funds available, it has been to this date advantageous to lease such equipment. A current review of the cost of leasing as compared to that of a lease-purchase arrangement has been made, and it has been determined to be to the University's advantage to lease-purchase selected components of the 360/7S "main frame." The main frame consists of the central processing unit ( C P U ) and certain devices for the storage and transfer of information within the computer. Lease-purchase procurement of selected components of the main frame will result in substantial savings to the University over the period of the proposed five-year lease-purchase plan as delineated below. The anticipated useful life of the components to be acquired is expected to exceed the payout period. It is to the advantage of the University to continue to lease most of the peripheral equipment for processing information into and out of the computer, such as printers, readers, etc., because of the rapidly changing technology, capacity requirements, and short operational life characteristics. Negotiations with the IBM Corporation have resulted in a proposal for a change order in our existing lease agreements whereby selected components of the existing main frame would be operated on a lease-purchase basis — w i t h allowances for past rental payments and educational discounts. Therefore, it is recommended that a change order be authorized effective November 22, 1971, to (1) cancel the present lease payments for the selected components of the 360/75 main frame, (2) make a payment of $74,323 on November 22, 1971, and the first payment of $181,345.90 on December 1, 1971, and (3)