Caption: Board of Trustees Minutes - 1992
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UNIVERSITY OF ILLINOIS
Amendment to Agreement for Assembly Hall Scoreboards, Urbana
(24) On July 13, 1989, the board authorized an agreement with Whiteway Sign & Maintenance Company (Whiteway) of Chicago to provide two modern scoreboards/ message centers and an outdoor marquee/message center for the Assembly Hall. The agreement stipulated that Whiteway would provide and maintain the equipment at no cost to the University in consideration for Whiteway's right to sell and display advertising on eight panels of the indoor scoreboards for ten years. In addition, the University was to receive a payment of $25,000 per year and a portion of the advertising revenue received by Whiteway in excess of its cost of the equipment. For four years, Whiteway has had limited success in securing advertisers for the display panels. As a result, Whiteway has not amortized much of its investment in this equipment, and they are three years in arrears to the University for the annual payment of $25,000. Also, the University has not benefited from the additional anticipated advertising revenue. Whiteway claims certain actions by the University have contributed to its inability to sell advertising, particularly direct competition from the Division of Intercollegiate Athletics (DIA) which also markets to corporations for contributions and other considerations in support of the athletic programs. Although the University disagrees with Whiteway's contentions, negotiations have occurred over the last six months for the purpose of finding a mutually acceptable solution. The University was not prepared to relinquish its outright ownership of the equipment or its financial incentives in the original agreement. Representatives of Student Affairs, DIA, and the Office of Business Affairs have negotiated a solution with Whiteway that will fulfill the original objectives of the agreement for both parties and place the University in a stronger position financially. The amended agreement calls for Whiteway to assign its rights to sell advertising to the University. The DIA will assume responsibility for this activity within its larger sponsorship program, which aims to significantly increase financial support from corporate sponsors in exchange for different forms of recognition, including sponsorship acknowledgement at athletic venues. The revenue collected will be shared by the University and Whiteway on a tiered formula that gives priority to: (1) the amounts due the University for the annual payment of $25,000, including the amount in arrears plus interest; (2) the recovery of the marketing costs of the program to the DIA; and (3) a greater portion of the total revenue to be retained by the University. The payments to Whiteway will not exceed $395,000, the amount necessary to recover its unamortized cost. The payments are subject to the receipt of sponsorship revenue from the scoreboard panels. If Whiteway has outstanding unamortized costs at the end of the remaining six-year term, the term of the agreement will be extended by one year to October 31, 2000. The vice president for business and finance, after consultation with the appropriate administrative officers, recommends the approval of the amended agreement as described. I concur with the recommendation.
On motion of Ms. Reese, this recommendation was approved by the following vote: Aye, Dr. Bacon, Mrs. Calder, Dr. Gindorf, Mr. Grabowski, Mrs. Gravenhorst, Mr. Lamont, Ms. Lopez, Ms. Reese; no, none; absent, Mr. Boyle, Governor Edgar. (The student advisory vote was: Aye, Ms. Huff, Mr. Riley; no, none.)
Contract for Roofing Work, Chicago
(25) The president of the University, with the concurrence of the appropriate administrative officers, recommends the award of the following cost-plus contract for roofing work at the Chicago campus for the fiscal year ending June 30, 1994, the award being made to the lowest responsible bidder.