Repository: UIHistories Project: Board of Trustees Minutes - 1970 [PAGE 660]

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660

BOARD OF TRUSTEES

[October 15

T h e net result of this change order will be to effect a total savings over the five-year period of $305,828.43 and at the end of said period title to the equipment will be vested in the University. Funds are available in the regular operating budget generated from charges to those departments using the computer. T h e President of the University, with the concurrence of appropriate administrative officers, recommends that the Board authorize the Comptroller and the Secretary of the Board of Trustees to accept the proposal of International Business Machines Corporation as outlined above and to execute such contracts, change orders, or other appropriate documents as may be necessary to acquire title to the Central Processing Unit in accordance with the plan here described. O n m o t i o n of M r . G r i m e s , t h e s e r e c o m m e n d a t i o n s w e r e a p p r o v e d by the following vote: Aye, M r . Clement, M r . Grimes, M r . H a h n , Mr. H u g h e s , M r . Pogue, Mr. S w a i n ; no, n o n e ; absent, M r . Jones, Governor Ogilvie, M r . Page, M r . Steger, M r . Stone. LEASE AND ACQUISITION OF AIRPLANES (23) In an effort to upgrade the University's fleet of airplanes, the Purchasing Division, at the request of the Institute of Aviation, has sought and received bids for the purchase of six two-engine airplanes. The bid proposal requested a net price after deduction of trade-in allowances for thirteen used aircraft presently owned by the University. Bidding was advertised in accordance with the requirements of the Illinois Purchasing Act and bids were opened on September 30, 1969. T h e low bid was Bi-State Aviation, Inc., with a bid of $344,263.57 after trade-in allowances. It is recommended that this acquisition be financed through an agreement with the University of Illinois Foundation to the following effect: 1. That the University transfer title to the thirteen used aircraft to Bi-State Aviation, Inc. 2. That the University assign the low bid of Bi-State Aviation, Inc., to the University of Illinois Foundation with the understandng that the Foundation will purchase the six new two-engine airplanes described in the bid documents at the total price of $344,263.57 and lease said six new two-engine airplanes to the University. 3. That to finance this transaction the Foundation will borrow $240,000.00 from the First National Bank of Chicago, Illinois, at an interest rate of five per cent per annum with said loan to be repaid over a five-year period. 4. That the Foundation will lease said new planes to the University for a fiveyear period upon payment by the University to the Foundation of an initial sum of $104,263.57 and quarterly rental payments sufficient to amortize the Foundation's borrowing in connection with this transaction. 5. Rental payments to be made by the University shall be subject to availability of funds generated by the operation of the staff air transportation service and from further additions to the Aircraft Replacement Reserve. 6. Upon payment by the University of the rentals due under this arrangement, the Foundation shall transfer title to the six new planes to the University. Funds for the payment of the initial payment of $104,263.57 are available in the Institute of Aviation Aircraft Replacement Reserve. T h e President of the University, with the concurrence of appropriate administrative officers, recommends that the Comptroller and the Secretary of the Board of Trustees be authorized to execute on behalf of the University an agreement with the University of Illinois Foundation for the financing of the purchase of these planes in accordance with the plan outlined above and to execute such other legal documents as may be necessary to implement this plan.

On motion of Mr. Swain, this recommendation was approved by the following vote: Aye, Mr. Clement, Mr. Grimes, Mr. Hahn, Mr.