Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 87]

EXTRACTED TEXT FROM PAGE:

76

BOARD OF TRUSTEES

[September 15

plan would be as follows: to finance this transaction the Foundation would borrow $4,509,006 (the acquisition price on October 1, 1976) from the First National Bank of Chicago at a floating interest rate based upon a percentage of prime interest, with the loan to be repaid over a seven-year period. T h e Foundation Board has approved this plan subject to the approval of the Board of Trustees. T h e Foundation would lease the equipment to the University for the period of October 1, 1976, through June 30, 1977, with annual options for renewal by the University for a seven-year period with monthly payments of $64,913.00 — excluding $12,085.00 monthly maintenance costs. (The present monthly rentals are $99,306.10 a month including maintenance.) The lease payments are sufficient to amortize the Foundation's borrowing in connection with this transaction. The lease payments which would be made by the University for the remainder of the present fiscal year are available in the operating budget of the Office of Administrative Computing Services. This request is similar to previous recommendations for the acquisition of equipment at the Computer Center, Chicago Circle, and the Computing Services Office, Urbana-Champaign. The transactions necessary to accomplish the intended objective are as follows: 1. Modify existing leases with both the Illinois Educational Consortium and the IBM Corporation to reconfigure the central processing unit to bring it up to the six million character main memory with the model three designation. I t is necessary that these actions be completed prior to purchase so that unwanted equipment options are not part of the purchased machine. 2. Amend the current lease with the Illinois Educational Consortium to terminate leasing of those specific items of the central processing unit which the University currently leases from the consortium. 3. Amend the current master lease agreement with the IBM Corporation to cancel the lease of those items of the central processing unit which the University leases directly from the IBM Corporation. 4. Purchase via the Foundation from the IBM Corporation specific items of the central processing unit that comprise the model designation 3168-U36, i.e., a single processor 370/168 computer, with model three enhancement, and six million positions of main processor memory. T h e specific details of these transactions are included in the recommendations to the Board of Trustees as follows. Therefore, the Vice President for Administration recommends that the Comptroller and Secretary of the Board of Trustees be authorized to: 1. Bring the central processing unit up to the desired configuration prior to purchase by executing change orders to both the "Agreement for Computer Services" with the Illinois Educational Consortium and to the "Master Lease Agreement" with the IBM Corporation to effect the following actions: Purchase Price (a) Add model three upgrade $ 279 180 00 (b) Add two million bytes of core 356 490 00 (c) Add dual block multiplexer ( M P X ) channel 163 389 05 (d) Add 3066 console model I I to model I I I upgrade 1 575 00 These above items will be purchased immediately upon installation on the central processing unit. Concurrently with the above action, the following items will be deleted: (e) Delete buffer expansion on C P U (f) Delete buffer expansion on power distribution unit (g) Delete single 2880 block M P X channel 2. Amend the current lease, "Agreement for Computer Service," with the Illinois Educational Consortium to terminate the leasing of the following equipment: (a) One 3066 60052 console $ 148 556 70