Repository: UIHistories Project: Board of Trustees Minutes - 1994 [PAGE 108]

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96

BOARD OF TRUSTEES

[October 20

Contracts for Collection Agency Services, Student Loans, and University Accounts Receivable

(9) The vice president for business and finance recommends the renewal of agreements with Enterprise Recovery System, Oak Brook, and Van Ru Credit Corporation, Skokie, for the collection of unpaid student loans and University accounts receivable. Authority is requested to renew the agreements for the period of October 1, 1994, through September 30, 1995, with the delegation of authority to the comptroller to renew the agreements for two additional one-year periods. The University bills receivable accounts and student loans monthly and pursues the collection of delinquent accounts through an internal collection office. Delinquent accounts of former students and others are assigned to collection agencies when billing and internal follow-up procedures are unsuccessful. These agencies specialize in and have the required expertise in the terms, conditions, and due diligence requirements of the Federal student loan programs. Both agencies are fully automated and offer on-line access to accounts. The University continually monitors the activities of the agencies to assure continuing satisfactory performance. Accounts are placed with individual agencies based on current performance. It is anticipated that $1.5 to $2.0 million of delinquent accounts will be placed with each agency for this twelve-month period. Payments to the collection agencies are based on a percentage of collections with payments during the first year of the agreement estimated to be $100,000 to each collection agency. Actual payment amounts will be made from the collection proceeds and will vary based upon actual collections. I recommend approval.

On motion of Mr. Lamont, 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, Mr. Didato-Castillo, Mr. Rose; no, none.)

Delegation of Authority to Award Contracts, Bielfeldt Athletic Administration Building, Urbana

(10) The proposed $6.7 million Bielfeldt Athletic Administration Building project at the Urbana campus is on a very compact schedule which has a substantial completion date of September 15, 1995. In order for the project to be completed on schedule, it is essential that the contracts for Bid Group 2 (foundation, structural steel, and site utilities) be awarded prior to the November 1994 meeting of the board (bids are to be received November 2, 1994). Accordingly, the president of the University, with the concurrence of the appropriate administrative officers, recommends that the comptroller be delegated the authority to award contracts to the lowest responsible bidders provided the total of the bids received for Bid Group 2 does not exceed $890,000. The 37,250 gsf facility will house the Division of Intercollegiate Athletics' administrative offices and offices for the majority of the men's and women's athletic programs, as well as a Hall of Fame. A report of the contracts awarded for Bid Group 2 will be presented to the board at its November 18, 1994, meeting. Private gift funds for this work are available with the possibility of reimbursement from a subsequent revenue bond sale for the project.

On motion of Mr. Lamont, this recommendation was approved by