Repository: UIHistories Project: Board of Trustees Minutes - 1976 [PAGE 468]

EXTRACTED TEXT FROM PAGE:

1975]

UNIVERSITY OF ILLINOIS

457

T h e student advisory vote was: Aye, Mr. Conlon, Mr. Szegho; no, n o n e ; absent, M r . Summers. O n motion of M r . Livingston, these contracts were awarded by the following vote: Aye, M r . Forsyth, M r . H a h n , M r . Howard, Mr. Lenz, M r . Livingston, M r . Neal, Mrs. Rader, Mrs. Shepherd, M r . Velasquez; no, n o n e ; absent, Governor Walker. Acquisition of Research and Instruction Computer, Chicago Circle (13) T h e Chicago Circle research and instruction computer (IBM 370/158) currently is being leased from the IBM Corporation. Through the present IBM lease agreement, the University has accumulated purchase credits which, if applied against the purchase of the existing equipment, could reduce annual costs substantially. It is recommended, therefore, that the University of Illinois Foundation be requested to purchase the equipment, using the applicable credits from IBM Corporation, and lease the equipment back to the University. The provisions of this plan would be as follows: To finance this transaction the Foundation would borrow $1,313,462 (acquisition price December 1, 1975) from the First National Bank of Chicago, at an annual interest rate not to exceed seven percent, with the loan to be repaid over a five-year period. The Foundation would lease the equipment to the University for the period December 5, 1975, through June 30, 1976, with annual options for renewal by the University for a five-year period with monthly payments of $26,008.12 excluding maintenance. (Present monthly rentals are approximately $32,500 excluding maintenance.) The lease payments are sufficient to amortize the Foundation's borrowing in connection with this transaction. The lease payments to be made by the University for the remainder of the present fiscal year are available in the operating budget of the Chicago Circle campus, and future lease payments are subject to the availability of funds. The University will terminate the present lease agreement for this equipment, effective with the date of acquisition of the equipment by the Foundation; and the University will arrange for the necessary equipment maintenance agreement with IBM. 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 leasing of the equipment in accordance with the provisions stated above and to execute such other legal documents as may be necessary to implement this plan. T h e student advisory vote was: Aye, Mr. Conlon, Mr. Szegho; no, n o n e ; absent, M r . Summers. O n motion of M r . H a h n , authority was given as recommended by the following vote: Aye, M r . Forsyth, M r . H a h n , Mr. Howard, Mr. Lenz, M r . Livingston, M r . Neal, Mrs. Rader, Mrs. Shepherd, M r . Velasquez; no, n o n e ; absent, Governor Walker. Purchases (14) T h e President submitted, with his concurrence, a list of purchases recommended by the Directors of Purchases and the Vice President for Administration. The list of purchases was presented in two categories: purchases from appropriated funds (i.e., from State appropriations to the University) and purchases