xt7ftt4fnk7d https://exploreuk.uky.edu/dips/xt7ftt4fnk7d/data/mets.xml Lexington, Kentucky University of Kentucky 19651416 minutes English University of Kentucky Contact the Special Collections Research Center for information regarding rights and use of this collection. Minutes of the University of Kentucky Board of Trustees Minutes of the University of Kentucky Board of Trustees, 1965-14-dec16-ec. text Minutes of the University of Kentucky Board of Trustees, 1965-14-dec16-ec. 1965 2011 true xt7ftt4fnk7d section xt7ftt4fnk7d 







        Minutes of an Adjourned Special Meeting of the Executive Committee
of the Board of Trustees of the University of Kentucky, held on December 16,
1965

        The Executive Committee of the Board of Trustees of the University
of Kentucky met in the Board of Trustees' Room of the University, in the Admin-
istration Building on the campus in Lexington, Kentucky, on December 16,
1965, at 11:00 aom., Eastern Standard Time, pursuant to adjournment from
the special meeting held on November 29, 1965, as noted in the minutes.

        Dr. Ralph J. Angelucci, Vice-Chairman of the Board of Trustees and
Chairman of the Executive Committee, was in the Chair presiding.  Upon call
of the roll, it was determined that the following members of the Executive
Committee were present:   Mr. Robert Hillenmeyer, Dr. H. B. Murray and
Judge J. A. Sutherland. Absent: Mr. Smith Broadbent, Jr.

        Also present for the meeting were Dr. John W. Oswald, President of
the University, Robert F. Kerley, Vice President for Business Affairs and
Treasurer, Glenwood L, Creech, Vice President - University Relations, Robert
L. Johnson, Vice President - Student Affairs, John C. Darsie, Jr., University
Counsel, and a representative of the Financial Advisors employed on behalf of
the Board by the Commissioner of Finance of the Commonwealth in connection
with the issuance of the Board's "University of Kentucky Housing and Dining
System Revenue Bonds," dated June 1, 1965.


        A. Meeting Opened

        Tt having been determined that a quorum was present for the transaction
of business, the Chairman called the meeting to order.

        At the request of the Chairman, the Secretary read to the Executive
Committee the closing passage of the minutes of the meeting which was held
on November 29, 1965, wherein it was shown that such meeting was adjourned
to convene again on this day and at this hour for the purpose of receiving, con-
sidering and taking action upon such purchase bids as may at this time be
available for consideration by the Executive Committee with reference to its
public offering of its "Housing and Dining System Revenue Bonds, Series H and
Series I," according to authorizations adopted and approved upon the occasion
of the Board meetings of September 21 and November 21, 1965, and the
Executive Committee meeting of November 29, 1965.

        In view thereof the Chairman stated that unless objections were heard
from members of the Executive Committee, the matter of opening and taking
action upon' bids for the purchase of the Bonds would be taken up as the first
order of business, No objections were heard, and it was so ordered.




 







2



        B. Bids Received

        The President of the University then presented to the Executive Com-
mittee all purchase bids which had been received in his office at or prior to
11:00 ame , Eastern Standard Time, on the day of the meeting.  The Secretary
suggested that prior to the opening of bids it was considered proper to tender
to the Executive Committee proof of proper advertising of the sale of the Bonds
according to the requirements of Chapter 424 of the Kentucky Revised Statutes,
and in that connection presented an Affidavit from an employee of The Courier-
Journal, Louisville, Kentucky, and an Affidavit from an employee of The
Daily Bond Buyer, New York, N. Y. , each showing publication of the "Notice
of Sale of Bonds" on December 2, 1965.  In this connection there was also
tendered a copy of the "Official Statement" prepared by the Financial Advisors
and disseminated widely on an unsolicited basis, as well as to all interested
parties requesting copies thereof.  On motion duly made, seconded and unani-
mously carried, it was ordered that these documents be preserved by the
Secretary as permanent records of the Executive Committee of the Board of
Trustees relating to the public offering of the "Housing and Dining System
Revenue Bonds, Series H and Series I, " but that the same not be copied in full,
as constituting a part of the minutes of the meeting.

        The Chairman then announced that the day and hour set forth in the
"Notice of Sale of Bonds" having arrived, the receipt of bids was closed. He
then proceeded in open session to open and publicly read each purchase bid
as tendered by the President. It was ordered that the same be listed in the
minutes by name of bidder (or name of the manager or managers of each bidding
account), price offered for each Series, and interest coupon rate or rates
stipulated, which is done as follows:

        BIDS RECEIVED FOR "BIDDING BLOCK A, "' BEING A TOTAL
        OF $18, 900, 000 OF BONDS COMPRISING ALL OF THE
        $6, 900, 000 SERIES H BONDS AND ALL OF THE $12, 000,000
        OF SERIES I BONDS MATURING IN THE YEARS 1969 to 1999,
        INCLUSIVE
                                                    INTEREST RATE OR
NAME OF BIDDER              PRICE OFFERED           RATES STIPULATED

Lehman Brothers,                                  4. 90% 1966 to
Phelps, Fenn & Co,                                        1974, incl,
Bear, Stearns & Co.,         $18, 902,457, 00     4, 70% 1975
  and Associates                                  3,90% 1976-1993,
                                                          incl.
                                                  4%  1994-1999,
                                                          incl,




 









Smith, Barney & Co.,
Incorporated
Halsey, Stuart & Co., Inc.,
B. J. Van Ingen & Co, Inc.,
and Associates







Blyth & Co., Inc.,
The First Boston
Corporation,
  and Associates



$18,903,534.30











$18,900,000.00



4. 75% 1966 to
       1977, incl.
3. 75% 1978 to
       1982, incl.
3. 80% 1983 to
       1984, incl.
3.90% 1985 to
       1989, incl.
4.00% 1990 to
       1999, incli

5% 1966 to 1972,
    - incl.
4. 10% 1973 to 1974,
       incl.
4% 1975 to 1999,
       incl,



       BIDS RECEIVED FOR "BIDDING BLOCK B, " BEING THE
       $8, 000, 000 "HOUSING AND DINING SYSTEM REVENUE BONDS,
       SERIES I, " MATURING IN THE YEARS 2000-2005


            (The only purchase bid received for any of the Bonds of
   "Bidding Block B" was a bid of the United States Government (sub-
   mitted in accordance with the Loan Agreement made by the Board
   of Trustees with the Government under date of December 1, 1965),
   being an offer to purchase the entire $8, 000, 000 of Series I Bonds
   maturing in the years 2000 to 2005, inclusive, at par and accrued
   interest and at a single uniform interest rate of three per cent (3%o)
   per annum.)




        Each bid was examined on behalf of the Executive Committee by the
representative of the Financial Advisors for matters relating to conformity
with the terms and conditions of the public offering, including attachment
of the required good faith deposit in the case of each bid for "Bidding Block A."



3




 





4



The Financial Advisors reported that in these respects all of the bids were in
order.

         On motion of Executive Committee Member Sutherland. seconded
by Executive Committee Member Murray, and unanimously carried, the bids
were referred to the Financial Advisors and the Vice President for Business
Affairs for tabulation and comparison, and the Executive Committee then
recessed briefly in order to permit the necessary mathematical calculations
to be made,


         C. President's Biennial Report Presented

         During the recess period, President Oswald took the opportunity to
distribute copies of his Report for the 1963-"5 biennium, tothemembers, He called
attention to severaL-ections of the reportbut emphasized that the copies thus far
available were not in final format. Dr. Oswald commented on the fine work
Vice President Creech's staff, especially Mr. Norman Snider, did in preparing
this report. Copies of the report when finished will be mailed to the Board of
Trustees, to the members of the Legislature and to other institutions of higher
education throughout the country.

          The members of the Board expressed their gratification at the splendid
report which covered the achievements of the past two years and commended
Dr. Oswald for the excellent manner in which the report was presented.


          D. Resolution Adopted Awarding Bid

          Upon announcement to the Chairman that the Financial Advisors and
the Vice President for Business Affairs were prepared to report the results
of their comparison and analysis of the purchase bids, the meeting was reconvened
at the order of the Chairman, and it was noted that all members of the Executive
Committee present prior to the brief recess were again present.

          The Chairman then invited the Financial Advisors to present their
findings and recommendations,

          In connection with the $18, 900, 000 "Housing and Dining System Revenue
Bonds, Series H and Series I., " constituting "Bidding Block A, " as publicly
offered, the Financial Advisors reported that upon analysis of the bids and com-
parison thereof, the best bid received in accordance with the terms of the public
offering was that of Lehman Bros. Phelps, Fenn & Co.; Bear, Stearns & Co.
and Associates offering to purchase the entire amount thereof at a price
of $18, 902,4570 00  and at interest coupon rates as follows:




 





5



     YEAR OF MATURITY        SERIES H       SERIES I      INTEREST RATE
            1966             $150,000                        4.9C    So
            1967              300,000                        4-90    %
            1968              300,000                        4. Tg   %
            1.969             300,000      $ 50,000          4. 90   %
            1970              300,000         50, 000        4. 90.  %
            1971              300,000         50,000         4.90    %
            1972              280,000         70,000         4. 90   %
            1973              280,000         70,000         4. 90   %
            1974              280,000        120,000         4. 90   %
            1975              290,000        110,000         4. 70   %
            1976              290,000        110,000         3. 90    %
            1977              290,000        110,000         3. 90    %
            1978              290,000        160, 000        3, 90    %
            1979              300,000        150,000         3. 90    To
            1980              300,000        200,000         3. 90   %
            i98i              300,000        200,000         30 90   %
            1982               300,000       200,000         3. 90   %
            1983              260,000        240, 000        3.90    %
            1984              260,000        240,000         3. 90   %
            1985              240, 000       260,000         3. 90   %
            1986               250,000       250,000         3.90    %
            1987              250,000        250,000         3. 90    %o
            1988               260,000       290,000         3. 90    go
            1989               260,000       290,000         3. 90    %0
            1990               270,000       330,000         3.90     %o
            1991                             700,0000        3.90    %
            1992                             700, 000        3. 90   %
            1993                             750, 000        3. 90   %
            1994                             750,000         4       %
            1995                             850,000         4       %
            1996                           1,000,000         4       %
            1997                           1,050,000         4       %
            1998                           1,200,000         4       %
            1999                           1,200,000         4       %


        The Chairman asked whether there was any dispute among the bidders
regarding the findings reported by the Financial Advisors, and no complaints
were heard.

        With reference to the sale of the $8 .000, 000 "Housing and Dining System
Revenue Bonds, Series I," maturing in the years 2000 to 2005, inclusive, and
comprising "Bidding Block B, " the Financial Advisors reported that there were
no bids received from any private investor.

        On this basis the Financial Advisors recommended that the Bonds com-
prising Bidding Block B be awarded to the United States Government at a single
uniform rate of 3% per annum as provided in the Loan Agreement and in the bid
received from the United States Government,




 





6



        Thereupon Executive Committee Member Murray introduced, caused
to be read and moved immediate adoption of the following resolution:

       THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES OF THE
UNIVERSITY OF KENTUCKY, LEXINGTON, KENTUCKY, DOES HEREBY RESOLVE,
AS FOLLOWS:

       Section 1. That the entire $18, 900, 000 of Bonds comprising "Bidding
Block A," comprising all of the $6. 900, 000 Series H Bonds, and all of the Series
I Bonds maturing in the years 1969 to 1999, inclusive, as authorized and provided
for in the Trust Indenture made by the Board with Farmers Bank & Capital Trust
Company, Frankfort, Kentucky, be and the same are hereby awarded to Lehman
Bros.; Phelps, Fenn & Co.; Bear, Stearns & Co. & Associates upon its purchase offer
of $18, 902, 457. 00 (with accrued interest to delivery) at the respective interest
coupon rates as follows:

     YEAR OF MATURITY         SERIES H      SERIES I      INTEREST RATE

        1966                   $150,000                      4e 90   %
        1967                    300, 000                     4. 90   %
        1968                    300, 000                     4, 90   %
        1969                    300, 000     $ 50,000        4. 90   %
        1970                    300, 000       50, 000       4  90   %
        1971                    300, 000       50, 000       4. 90  %
        1972                    280, 000       70, 000       4. 90  %
        1973                    280, 000       70, 000       4, 90  %
        1974                    280, 000      120,000        4. 90   %
        1975                    290, 000      110, 000       4. 70  %
        1976                    290, 000      110, 000        3. 90   %
        1977                    290, 000      110, 000        3. 90   %
        1978                    290, 000      160,000         3. 90   %
        1979                    300, 000      150,000         3J 90   %
        1980                    300,000  .00, 000             3  90   %
        1981                    300, 000      200, 000        3. 90   %
        1982                    300, 000      200, 000        3. 90  %
        1983                    260, 000      240, 000        3. 90   %
        1984                    260, 000      240, 000        3.90    %
        1985                     Z40, 000     260,000         3. 90   %
        1.986                   250, 000     250, 000        3. 90   %
        1987                    250, 000      250, 000        3. 90   %
        1988                    260, 000      290, 000        3. 90 _%
        1989                    260, 000      290, 000        3. 90   %T
        1990                    270, 000      330,000         3,90   To
        1991                                  700, 000        3 90  -o
        1992                                  700,000         3, 90   %T
        1993                                  750, 000        3. 90   %
        1994                                  750, 000        4     _%
        1995                                  850, 000        4 ___T




 







7



YEAR OF MATURITY          SERIES H        SERIES I      INTEREST RATE

        1996                              1, 000, 000           4     %
        1997                              1, 050, 000           4      %
        1998                              1, 200, 000           4      %
        1999                              1,200,000             4      '


        Section 2. That all of the $8, 000, 000 of Bonds comprising "Bidding
Block B," being all of the "Housing and Dining System Revenue Bonds, Series
I, " which will mature in the years 2000 to 2005, inclusive, as authorized and
provided for in the aforesaid Trust Indenture, be and the same are hereby
awarded to the United States of America, Department of Housing and Urban De-
velopment, upon its bid of face amount and accrued interest to delivery, at a
single uniform interest rate of three per cent (3%) per annum.

        Section 3. The good faith check submitted by private investors with the
bid hereinabove accepted shall be retained uncashed by the Treasurer until the
Bonds are delivered and paid for, at which time disposition thereof shall be
made as provided in the "Notice of Sale of Bonds. "  The Secretary shall im-
mediately return the good faith checks submitted with all other bids received
from private investors.

        Section 5. The Financial Advisors and Bond Counsel are hereby au-
thorized to instruct the selected bond printing firm to proceed with all proper
dispatch in the preparation of the Bonds in accordance with the interest rates
hereinabove established; it being noted that in the case of Bonds of Series I
purchased by the United States Government, the same shall be issued in the
"Form of Fully Registered Bond" appearing in the Trust Indenture, whereas in
the case of Bonds of Series H and Series I awarded to private investors the
same shall be prepared as negotiable coupon bonds in the denomination of
$5, 000.00 each, registrable as to(principal)only, substantially in accordance with
the "Form of Coupon Bond" appearing in said Trust Indenture.

        Section 6. This Resolution shall be in full force and effect from and after
its adoption.

                               (End of Resolution)

        Said Resolution was seconded by Executive Committee Member Hillen-
meyer, After full discussion the Chairman put the question and upon call of
the roll the vote thereon was recorded as follows: Voting "Aye": Dr. Ralph J.
Angelucci, Mr. Robert Hillenmeyer, Dr. H. B. Murray and Judge J. A. Suther-
land.  Voting "Nay": None.

         The Chairman then announced that said Resolution had been duly adopted
and was in full force and effect.




 





8



        E. Date Set for Acceptance of Delivery and Payment

        The Financial Advisors then reported to the Chairman that arrange-
ments have been made for the United States Government to accept all Bonds
awarded to it, in the Atlanta, Georgia, office of the Department of Housing and
Urban Development, on January 27, 1966, at 10:00 A. M., Eastern Standard
Time, -and   asked permission of the Chairman to notify the successful bidders
for the Bonds of "Bidding Block A"l that they must be prepared to accept
delivery and make payment at the same day and hour, in the premises of a bank
or trust company to be designated upon reasonable notice as provided in the
"Notice of Sale of Bonds." By unanimous agreement it was ordered that the
Financial Advisors be given such authority and instructed to proceed in such
manner.


        F. Meeting Adjourned

        There being no further business, on motion and vote the meeting was
adjourned.




                                         Secretary, Executive Committee,
                                             Board of Trustees
                                          University of Kentucky