Repository: UIHistories Project: Board of Trustees Minutes - 1994 [PAGE 643]

EXTRACTED TEXT FROM PAGE:

1996]

UNIVERSITY OF ILLINOIS

631

The vice president for business and finance recommends that purchases or contracts for fuel oil supplies and services be .added to the items exempt from the requirement of specific board approval, subject to the same procedures applicable for previously exempted items; and that the vice president for business and finance be authorized to award contracts for fuel oil supplies and services on behalf of and in the name of the board. I concur.

On motion of Dr. Gindorf, this recommendation was approved by the following vote: Aye, Dr. Bacon, Mrs. Calder, Mr. Engelbrecht, Dr. Gindorf, Mrs. Gravenhorst, Mr. Lamont, Ms. Lopez, Mrs. O'Malley, Ms. Reese; no, none; absent, Governor Edgar. (The student advisory vote was: Aye, Mr. Malone, Mr. Mathew, Mr. Rose; no, none.)

Health Care Facilities System Revenue Bonds

(19) The Board of Trustees, the Illinois Board of Higher Education, and the Illinois Health Facilities Planning Board have approved the construction of an Ambulatory Care Facility for the University of Illinois Hospitals and Clinics at a total project cost of $85 million (includes planning, construction, connections to adjacent facilities and equipment). In addition, the Board of Trustees has approved the acquisition of a doctor's office building at Rockford for physicians under the Medical Service Plan at a cost of approximately $3.0 million when it is completed later this year. In order to fund a major portion of the construction of the Chicago Ambulatory Care Facility and the acquisition of the Rockford facilities, the University intends to issue both fixed and variable rate revenue bonds later in 1996 in a total amount that could approximate $70.0 million. This issue (or issues) and the facilities so financed, would be the first under a new system that is tentatively called the University of Illinois Health Care Facilities System (the "system"). This new system would be analogous to the existing Auxiliary Facilities System, but would have a new and distinct set of discrete revenues pledged as primary security for bonds issued and would be subject to a new set of bond covenants contained in a new bond resolution. It is anticipated that the operating units comprising the system would include the University of Illinois Hospital, the clinics, and the Chicago, Rockford, and Peoria Medical Service Plans. In order to proceed toward the creation of the system and the issuance of the bonds, the vice president for business and finance and the university counsel recommend that the board approve: 1. Employment of Chapman and Cutler as Bond Counsel. 2. Employment of John Nuveen Co., Inc., as Financial Advisor. 3. Employment of Bear Stearns 8c Co., Inc., as Senior Managing Underwriter and Lehman Brothers, Inc., as Co-Senior Manager for a joint management fee of $45,000 plus reimbursement of actual out-of-pocket expenses, and take-downs, ranging from $2.50 per thousand dollars of bonds to $6.25 per thousand dollars of bonds on the fixed rate portion of the anticipated financing, depending upon type of bond and maturity. Additional comanagers may be added to assist in the marketing and sale of the bonds. 4. Employment of Bear Stearns 8c Co., as Placement Agent and Lehman Brothers, Inc., as Co-Placement Agent for the variable rate portion of the financing, if any, for a total placement fee of $2.50 per thousand dollars of bonds placed, plus actual out-of-pocket expenses incurred. In addition, the employment of Bear Stearns 8c Co., as Remarketing Agent of the variable rate portion for an annual remarketing fee of $0.70 per thousand dollars of bonds subject to remarketing.