Call to Order
The meeting was called to order
at 12:06 p.m.
Roll Call by Secretary to the
Board
Present: Canady, Heywood,
Holden, Jeffries, Rasmusson
Absent: Patterson, Pelleran
Limited Public Comment
Regarding Agenda Items
There were no comments from the
public.
Sale of Bonds Resolution
President Cunningham presented a
resolution that was prepared for the Board's approval by the
College's attorney, Miller Canfield. She stated that the College
was able to lock in an interest rate of 4.6%, which represents a $1.5
million reduction in principal and a total of $2.6 million in savings.
The College decided to insure the bond with an additional $100,000,
which actually raised the College's rating from a AA to a AAA.
Additional costs involved were the following: printing of the
document of $150,000 to UBS PaineWebber, which was previously approved
by the Board; and $40,000 to Stauder and Barch.
IT WAS MOVED by Trustee Canady
and supported by Trustee Holden to approve the issuance of the bonds in
the amount of $41,705,000.
Mr. Bill Danhof, from Miller,
Canfield, Paddock and Stone, was present. He stated the resolution
authorizes the sale of the bonds in the amount of $41,705,000. He
distributed a copy of the official statement and purchase contract,
which will be executed as soon as the resolution is approved.
(Copies of the documents are on file with the official Board materials.)
Mr. Rich Allen, with UBS
PaineWebber, was present to answer any questions.
Mr. Paul Stauder, from Stauder
and Barch, stated that the bond size reduced due to a large premium that
is being paid by the purchasers of the bonds to the College. The
premium goes right into the construction fund. A summary was
presented which displayed a before and after picture of what the
construction fund deposit will be (the summary is on file with the
official Board materials). He said that despite the fact that
there is a lower bond amount that the Board will actually be issuing,
the same amount would be deposited in the construction fund. There
was concern of the very low interest rates for reinvestment, therefore,
the estimates of the earnings that would be made on the funds were
reduced to ensure the project is properly funded and the deposit to the
construction fund was adequate to offset the reduced earnings that are
expected. He said that they were successful in reducing the
duration of the transaction from 17 years to 15 years.
Roll call vote:
Ayes: Heywood, Holden,
Jeffries, Rasmusson, Canady
Nays: None
Absent: Patterson, Pelleran
Motion carried.
Finance
Approval
of Bids
President Cunningham provided an
explanation the bids that were before the Board for their approval.
The first proposal is for laptop computers and Comark Government and
Education Sales was the successful bidder. Purchasing the laptop
computers is the College's continuing effort to assist faculty and
staff to conduct business both on and off campus. The second
proposal is for IBM servers and these help to support the laptop
computers. Comark Government and Education Sales was the
successful bidder for the IBM servers. The third proposal is for a
sole-source project for fiber network services and Waypoint Fiber
Network was granted the project. The fourth proposal is for a
sole-source project for infrastructure software and Oracle Corporation
was granted the project. President Cunningham stated that the bids
amount to a total of $5.6 million. She said that this decreases
the College's technology fund, which totals $4.5 million; however, as
was said during the millage campaign, that fund will be replenished.
IT WAS MOVED by Trustee Canady
and supported by Trustee Holden to approve the bids.
Trustee Holden asked if the fund
would be replenished up to the $4.5 million.
President Cunningham stated that
the first two years would be less than that because so much will be done
up front. However, after the first two years it would increase.
Trustee Heywood asked what is the
timeline of the establishment of the network.
President Cunningham responded
that some of it would be phased in.
Mr. Chris Bennett stated that the
fiber network would start with the airport facility.
Roll call vote:
Ayes: Heywood, Holden,
Jeffries, Rasmusson, Canady
Nays: None
Absent: Patterson, Pelleran
Motion carried.
President Cunningham stated that
there was a request from Trustee Rasmusson to review the future
implications of nanotechnology on the curriculum of the College.
She said that she met with Provost Luanna Simon of Michigan State
University and nanotechnology was discussed. President Cunningham
stated that Michigan State University is excited about possibly
partnering with Lansing Community College in having a program; however,
they had already extended a partnership with a German company and should
receive a response within six weeks. President Cunningham said
that she would follow up with Provost Simon in six weeks to follow up on
a possible partnership with Michigan State University.
Chairperson Jeffries distributed
to the Board a tentative schedule for the Board, which described future
agenda items for the Board's consideration. He stated that at
the July 2001 Board organizational meeting two-year appointments were
made, so there would not be an organizational meeting in July 2002.
Trustee Holden asked if program
review was currently under way for the Board's consideration in the
near future.
President Cunningham responded
that program review would be a part of the budget process.
Public Comment
There
were no comments from the public.
Adjournment
The meeting was adjourned at
12:24 p.m.
