Repository: UIHistories Project: Board of Trustees Minutes - 1990 [PAGE 435]

EXTRACTED TEXT FROM PAGE:

1991]

UNIVERSITY OF ILLINOIS

423

Mrs. Gravenhorst, Mr. Lamont, Ms. Reese, Mrs. Shepherd; no, none; absent, Governor Edgar, Mr. WolfF. (The student advisory vote was: Aye, Ms. Caporusso, Mr. Mitchell; no, none.)

Purchases

(27) T h e president submitted, with his concurrence, a list of purchases recommended by the directors of purchases and the vice president for business and finance. T h e purchases were presented in two categories: purchases from appropriated funds (i.e., from State appropriations to the University); and purchases from institutional funds. T h e latter term designates funds received by the University under contracts with the United States government, private corporations, and other organizations; grants from foundations, corporations, and other donors; and University revolving funds authorized by law. T h e total amounts of these purchases were: From Appropriated Funds Recommended From Institutional Funds Recommended Grand Total $ 250 471

5 564 971 $5 815 442

A complete list of the purchases, with supporting information (including the quotations received), was sent to each member of the board in advance of the meeting. A copy is being filed with the secretary of the board for record.

On motion of Mr. Boyle, the purchases recommended were authorized by the following vote: Aye, Dr. Bacon, Mr. Boyle, Mrs. Calder, Mr. Grabowski, Mrs. Gravenhorst, Mr. Lamont, Ms. Reese, Mrs. Shepherd; no, none; absent, Governor Edgar, Mr. Wolff. (The student advisory vote was: Aye, Ms. Caporusso, Mr. Mitchell; no, none.)

Refinancing of Installment Purchases or Leases

(28) T h e University has in force several installment purchase contracts or leases for data processing and other equipment with remaining principal balances totaling approximately $13 million, and an additional $16.6 million of net principal on its telecommunication system financed in Fiscal Year 1986. It has been determined that significant savings could be achieved by refinancing these contracts over the same maturity at lower interest rates that are available at this time. A cost efficient mechanism to provide for the refinancing is through the issuance of Certificates of Participation. T h e certificates would be structured to parallel the principal payments and debt retirement timetable of the individual contract agreements being prepaid from the proceeds. A new installment purchase contract or lease between the board and the issuer of the certificates (the "lessor" or "vendor") would replace the prior contracts. T h e vice president for business and finance recommends that: 1. 2. 3. 4. T h e firm of John Nuveen and Company, Inc., be employed as financial advisor. University counsel be authorized to seek and employ special counsel. T h e University be authorized to seek bond rating(s), if necessary. First National Bank of Chicago be used as lessor or vendor and appointed as trustee. 5. T h e purchase of bond insurance be authorized if it is shown to be economically advantageous.