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Adopted Minutes
February 15, 2002
Special Meeting

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.

LCC Board of Trustees
Administration Bldg
Phone: (517) 483-5252
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