MINUTES of THE MEETING
OF THE
BOARD OF TRUSTEES
December 12, 1968
Mr. Broucek and Mr. Earl Cress of the Ann Arbor Trust Company
appeared before the Board and presented the following recommendation
for the financing for the proposed addition to the proposed
addition to the Oakland Center at Oakland University.
SUMMARY OF $2,600,000 MICHIGAN STATE UNIVERSITY-
OAKLAND UNIVERSITY, OAKLAND CENTER ADDITION BONDS.
I. Purpose
| |
Oakland Center Addition |
$2,400,000 |
| |
Debt Service Reserve |
200,000 |
| |
Total |
2,600,000 |
II. Description
Dated January 1, 1969, interest only first five years.
$610,000 Serial Bonds maturing from 1975 through 1984.
$450,000 Term Bonds, Series A, maturing 1989
$590,000 Term Bonds, Series B, maturing 1994
$950,000 Term Bonds, Series C, maturing 1999
Public sale, $5,000.00 denominations, non-callable for
ten years, call premiums beginning at 103 in eleventh
year.
Average maturity - 21 years.
Net Interest Cost 5.75%
III. Security
| |
Pledge of: |
First Five Years |
6 - 30th Year |
| |
|
|
|
| |
A. University Fees |
$135,000 |
$184,000 |
| |
|
|
|
| |
B. Investment Income - Debt Service Reserve |
11,000 |
11,000 |
| |
|
|
|
| |
Total |
$146,000 |
$195,000 |
IV. Other Covenants
The Board agrees to maintain and collect University Fees
in an amount sufficient to provide annual sums equal to
at least 200% of the maximum annual debt service requirements
on all outstanding fee bonds and loans.
V. Underwriting Group
These bonds will be sold to an underwriting group of
Michigan firms headed by First of Michigan Corporation.
VI. Rating
"AA" - Standard and Poor's Corporation.
RESOLUTION OF THE BOARD OF TRUSTEES OF MICHIGAN STATE UNIVERSITY
APPROVING OFFICIAL STATEMENT, ACCEPTING UNDERWRITERS COMMITMENT
AND AUTHORIZING PREPARATION OF LEGAL DOCUMENTS NECESSARY
TO ISSUANCE OF BONDS SECURED BY STUDENT FEES TO PAY COSTS
OF CONSTRUCTION OF ADDITION TO OAKLAND CENTER BUILDING
ON THE CAMPUS OF OAKLAND UNIVERSITY.
WHEREAS, in order to properly serve the needs of students
attending Oakland University (being under the control and
management of the Board of Trustees of Michigan State University),
it is necessary and advisable that an addition to the Oakland
Center building be constructed and equipped on the campus
of Oakland University at Rochester, Michigan, said addition
to be approximately 40,000 square feet in size which will
allow for expansion and increase of size in the facilities
in the present buildings; and
WHEREAS, the said Project will be.for the benefit and
use of all students attending Oakland University; and
WHEREAS, it is the determination of this Board of Trustees
that the costs of said Project should be provided by the
issuance of bonds secured by a pledge of student fees collected
from students attending Oakland University; and
WHEREAS, the Ann Arbor Trust Company, fiscal agent of the
Board of Trustees, has prepared and submitted to this Board
a document entitled "Official Statement" which
outlines the details of the proposed bond issue, $2,600,000
Oakland University, Oakland Center Addition Bonds, to be
dated as of January 1, 1969, together with the security
therefore and the covenants in relation thereto; and (p.344)
WHEREAS, First of Michigan Corporation, of Detroit, Michigan,
and associates, have tendered an offer, based upon said
Official Statement, to purchase the $2,600,000 Oakland University,
Oakland Center Addition Bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES
OF MICHIGAN
STATE UNIVERSITY, as follows:
1. THAT the Official Statement outlining terms and conditions
of issuance of $2,600,000 Oakland University, Oakland Center
Addition Bonds, to be dated as of January 1, 1969, to be
secured by a pledge of student fees collected from students
attending Oakland University, the proceeds of which Bonds
are to be used to provide costs of constructing and equipping
an addition to the Oakland Center Building on the campus
of Oakland University at Rochester, Michigan, a copy of
which Official Statement is attached to this resolution
and made a part thereof by reference, is hereby in all respects
approved.
2. THAT the offer of First of Michigan Corporation, of
Detroit Michigan and associates, to purchase the $2,600,000
Oakland University, Oakland Center Addition Bonds at a price
resulting in an average net interest cost of 5.75%, is hereby
approved and accepted.
3. THAT legal counsel to the Board, in cooperation with
the Ann Arbor Trust Company, fiscal agent to the Board,
and the financial officers of the University, are hereby
authorized and directed to prepare the necessary resolutions
and trust agreement to accomplish the financing referred
to in the preamble hereto, all in substantial compliance
with the terms of the Official Statement herein approved.
4., THAT said necessary resolution or resolutions and
trust agreement together with such other documents in relation
thereto as are deemed necessary, be submitted to this Board
for its action thereon at the next regular meeting in January
1969.
(The Official Statement is filed with materials pertinent
to this meeting).
On motion by Mr. Thompson, seconded by Mr. Stevens, it
was voted to approve these recommendations, with the understanding
that contracts for construction will not be authorized until
after Mr. Cress has contacted the underwriters and is assured
of their commitment. When this is accomplished, the Trustees
will give consideration at the regular Trustees' meeting to
the bids already submitted for beginning the construction
of this project.
Change in Assignment
Donald A. Mann from Asst. Dir. AP-V, Computer & Data
Processing Center at $12,000 to
Asst. Comp. Systems, Computer & Data Processing Center
at $12,800, effective 1/1/69
Promotion of George A. Kozlowski, Jr. from Instr.
in Mathematics at $10,200 to Asst. Prof.
in Mathematics at $10,700, effective 12/1/68.
Recommendations from the Director of Personnel
Reclassify a Shift Supervisor VIII to a Programmer AP-I in
Comp. & Data Proc. Center
Establish a Clerk-Typist III position in Student Affairs
Reclassify a Department Secy V to a Senior Dept, Secy VII
in Modern Languages.
Gifts & Grants
Grant of $5 from Mrs. Dorothy K. Roosevelt of Birmingham
to be credited in the Meadow Brook Summer School of Music
Scholarship Fund.
Grant of $38,994 from the National Institutes of Health to
be used under the direction of C. V. Harding in Biology for
research on the control of cell division in the ocular lens.
Grant of $33,294 from the National Institutes of Health to
be used under the direction of Gottfried Brieger in Chemistry
for research entitled "Lipid Metabolism and Hormones
in Insects."
Grant of $22,750 from the National Foundation on the Arts
and Humanities of Washington to be used under the direction
of David Doherty in Continuing Education in support of an
audience program for theater and music.
Grant of $3,500 from General Motors Technical Center of Warren
to be used under the direction of K. A. Meade in Continuing
Education to support a conference on technical management.
Acceptance of a gift of $150,000 from the Matilda R. Wilson
Fund as the first installment in the establishment of a professorship
in the Engineering School at Oakland University to be known
as the John F. Dodge Engineering Chair.
Gifts of 33 shares of American Cyanamid stock from R. J,
and Betty Jay Williams valued at $1,080. Authorization for
the sale of this stock is requested.
On motion by Mr. Nisbet, seconded by Mr. Stevens, it was
voted to approve the above Oakland University recommendations.
(p.345)
On November 13, 1968 bid proposals were received and opened
at Oakland University for the remodeling and expansion to
the Oakland Center. A tabulation of the bids submitted is
as follows:
| |
Architectural |
|
|
| |
E. E. Powell General Construction Co. |
|
$1,024,000 |
| |
Utley-James, Inc |
|
1,081,500 |
| |
|
|
|
| |
Mechanical |
|
|
| |
Griffin Brothers, Inc |
|
585,821 |
| |
Laya Plumbing and Heating |
|
647,000 |
| |
Eames and Brown, Inc. |
|
659,600 |
| |
|
|
|
| |
Electrical |
|
|
| |
Fred W. Moote Electric, Inc. |
|
228,000 |
| |
Schultz Electrical, Inc. |
|
246,920 |
| |
Spaulding Electric Co. |
|
253,530 |
| |
|
|
|
| |
Kitchen Equipment |
|
|
| |
Great Lakes Hotel Supply Co. |
|
47,253 |
| |
Canton China and Equipment Co. |
|
49,383 |
The bid proposals have been examined by the architect and
staff, and it was recommended
that the low bidders be accepted.
It was recommended that the following project budget be approved:
| |
Construction |
$1,975,000 |
| |
Architect/Engineering/Supervision |
107,000 |
| |
Legal/Administrative |
22,000 |
| |
Interest During Construction |
60,000 |
| |
Furnishings |
193,000 |
| |
Contingency |
43,000 |
| |
|
|
| |
Total |
$2,400,000 |
The President advised the Trustees that Mr. Cress had reported
the completion of the appropriate contractual relationships
with the underwriting firms to cover the financing of this
project, and it was recommended that contracts be awarded
to the low bidders.
On motion by Mr. Nisbet, seconded by Mr. Stevens, it was
voted to approve the budget and award the contracts to
the low bidders for this addition to the Oakland Center as
recommended.
Miscellaneous
Alterations and improvement items charged to account 17203
and additional payments to salaried employees per lists on
file with materials for this meeting.
The meeting adjourned to meet on the evening of Wednesday,
January 15, 1969, and on Thursday January 16, 1969. (p.346)