xt7bg7371690 https://exploreuk.uky.edu/dips/xt7bg7371690/data/mets.xml Lexington, Kentucky University of Kentucky 19940112 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, 1994-01-jan12-ec. text Minutes of the University of Kentucky Board of Trustees, 1994-01-jan12-ec. 1994 2011 true xt7bg7371690 section xt7bg7371690

Minutes of the Meeting of the Executive Committee of the Board of
Trustees of the University of Kentucky, Wednesday, January 12, 1994.

The Executive Committee of the Board of Trustees of the University
of Kentucky met at 12:00 Noon (Lexington Time) on Wednesday, January 12,
1994 in the Board Room on the 18th floor of the Patterson Office Tower on
the Lexington Campus.

A. Meeting Opened and Roll Called

Governor Edward T. Breathitt, Chairperson, called the meeting to
order at 12:06 p.m., and the invocation was pronounced by Mr. Sturgill.

The following members of the Executive Committee of the Board of
Trustees answered the call of the roll: Governor Edward T. Breathitt
(Chairperson), Mr. James F. Hardymon, Mr. William B. Sturgill and Lois C.
Weinberg. Absent from the meeting were Dr. Robert P. Meriwether and
Billy B. Wilcoxson. The University administration was represented by
President Charles T. Wethington, Jr.; Chancellor Ben Carr; Vice
Presidents Joseph T. Burch and Donald B. Clapp; and Mr. Paul VanBooven,
Associate General Counsel.

Members of the general public and the news media were also in
attendance. A quorum being present, Governor Breathitt declared the
meeting officially open for the conduct of business at 12:08 p.m.

B. Resolution of the Executive CQmmittee of the Board of
Trustees of the University of Kentucky Accepting the Successifuli Qdfor
the Purczhase of University of Kentucky Cmm unity Colleges Eduational
Buildings Refunding Revenue Bonds. Series A. C. F and H (Second Series).
Dated January 1. 1994 (PR 1)

Mr. Hardymon, Chairperson of the Finance Committee, stated that
this sale is a continuation of the efforts in refinancing the revenue
bonds. He moved that the Board of Trustees approve a Resolution
accepting the successful bid of Dillon Reed & Co., Inc. with reference to
the sale of the $55,415,000 (plus or minus up to $4,540,000) of
University of Kentucky Community Colleges Educational Buildings Refunding
Revenue Bonds, Series A, C, F and H (Second Series), dated January 1,
1994, at a net interest cost of 4.7442%; and that the Executive Committee
of the Board of Trustees approve the form of Official Statement as
prepared by J.J.B. Hilliard, W.L. Lyons, Inc. the Financial Advisors to
the Board of Trustees.

Mr. Hardymon reported that the bids were received at 10:00 a.m.
and Dillon Reed & Co., Inc. submitted the low bid of 4.7442%. He noted
that the bids were very tightly grouped, and the second lowest bid was
submitted by Lehman Brothers at a net interest of 4.7540%. This

-2-

represents a spread of less than one/lOOth of one percent. He then
provided the following information:

Principal amount of bond sale
Final maturity
Cumulative savings on this sale
Present value of savings
4.61 of the refunded bonds

$55,540,000
Year of 2011
$3,219,062
$2,285,299

Mr. Hardymon also informed the members of the Committee of the total
savings to-date from bond refinancing:

Average annual savings of debt service
Up-to-date cumulative savings
Present value
Annual savings

$178, 837.00
Over $9.7 million
Over $7.1 million
$695,017

Mr. Hardymon's motion was seconded by Mr. Sturgill and passed.
(See PR 1 at the end of the Minutes.)

C. Meeting-Adjourned

There being no further business to come before the Executive
Committee, the meeting adjourned at 12:13 p.m.

Respectfully submitted?

Lois C. Weinberg
Secretary
Board of Trustees

(PR 1 which follows is an official part of the Minutes of the meeting.)

/8701

Office of the President
January 12, 1994

PR'1
Members, Board of Trustees Executive Committee:

RESOLUTION OF THE EXECUTIVE COMMITTEE OF THE BOARD OF
TRUSTEES OF THE UNIVERSITY OF KENTUCKY ACCEPTING THE
SUCCESSFUL BID FOR THE PURCHASE OF UNIVERSITY OF KENTUCKY
COMMUNITY COLLEGES EDUCATIONAL BUILDINGS REFUNDING
REVENUE BONDS, SERIES A, C, F AND H (SECOND SERIES), DATED
JANUARY 1, 1994.

Recommendation: (i) that the Board of Trustees approve a Resolution accepting the
successful bid of Dillon Reed & Co., Inc. with reference to the sale of the $55,415,000
(plus or minus up to $5,540,000) of University of Kentucky Community Colleges
Educational Buildings Refunding Revenue Bonds, Series A, C, F and H (Second
Series), dated January 1, 1994, at a net interest cost of 4.7442%; (ii) that the
Executive Committee of the Board of Trustees approve the form of Official Statement
as prepared by J.J.B. Hilliard, W.L. Lyons, Inc., the Financial Advisors to the Board of
Trustees.

Background: On December 14, 1993, the Board of Trustees approved Resolutions
authorizing the issuance of $55,415,000 (plus or minus up to $5,540,000) of University
of Kentucky Community Colleges Educational Buildings Refunding Revenue Bonds,
Series A, C, F and H (Second Series) dated January 1, 1994. Said Resolutions also
authorized the public advertising for sealed, competitive bids to be received for said
Bonds. Bids were received by the Controller and Treasurer and tabulated by J.J.B.
Hilliard, W.L. Lyons, Inc., the Financial Advisors for the bonds. The recommended bid
is the lowest net interest cost to the University.

Six bids were received and tabulated as follows:

Dillon Reed & Co., Inc. 4.7442%
Lehman Brothers 4.7540%
Kemper Securities, Inc. 4.7569%
Chemical Securities, Inc. 4.7592%
Morgan Stanley & Co., Inc. 4.7752%
Merrill Lynch 4.8570%

Dated: January 12, 1994

Action: Approved V - Disapproved Other

RESOLUTION

RESOLUTION OF THE EXECUTIVE COMMITTEE OF THE
BOARD OF TRUSTEES OF THE UNIVERSITY OF KENTUCKY
ACCEPTING THE SUCCESSFUL BID FOR THE PURCHASE
OF UNIVERSITY OF KENTUCKY COMMUNITY COLLEGES
EDUCATIONAL BUILDINGS REFUNDING REVENUE BONDS,
SERIES A, C, F AND H (SECOND SERIES) DATED
JANUARY 1, 1994.

WHEREAS, pursuant to a resolution of the Board of
Trustees (the "Board") adopted on December 14, 1993, the Board
authorized the advertisement for bids for the sale of the
$55,415,000 (plus or minus up to $5,540,000) of University of
Kentucky Community Colleges Educational Buildings Refunding Revenue
Bonds, Series A, C, F and H (Second Series), dated January 1, 1994
(the "Series A, C, F and H [Second Series] Bonds"); and

WHEREAS, the sale of the Series A, C, F and H (Second
Series) Bonds has been advertised in accordance with law for the
receipt of bids for the Series A, C, F and H (Second Series) Bonds
at 10:00 A.M., E.S.T., on January 12, 1994, and the Executive
Committee of the Board will accept the lowest and best bid received
upon the advice of J.J.B. Hilliard, W.L. Lyons, Inc., the Financial
Advisor to the Board; and

WHEREAS, all bids received for the purchase of. said
Series A, C, F and H (Second Series) Bonds from the Board of
Trustees have been duly considered and are as follows:

AMOUNTS BID FOR SAID
$55,415,000 PRINCIPAL
AMOUNT OF BONDS, PLUS
INTEREST ACCRUED INTEREST FROM INTEREST
BIDDERS RATES JANUARY 1, 1994 COST

Dillon Reed & Co., Inc.4.7442% $54,306,775.70 $28,190,974.30
Lehman Brothers 4.7540% 54,306,700.00 28,249,233.33
Kemper Securities, Inc.4.7569% 54,306,979.25 28,266,079.60
Chemical Securities, Inc. 4.7592% 54,306,700.00 28,279,787.50
Morgan Stanley & Co., Inc. 4.7752% 54,324,995.70 28,375,120.97
Merrill Lynch 4.8570% 54,306,757.45 28,861,559.22

WHEREAS, the matter of which bid is the most advantageous
and with the most favorable net interest cost to the Board has been
sufficiently considered.

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

Section 1. That the bid of Dillon Reed & Co., Inc.
for the purchase of $55,415,000 principal amount of University of
Kentucky Community Colleges Educational Buildings Refunding Revenue
Bonds, Series A, C, F and H (Second Series), dated January 1, 1994,
at a price of $ 54,306,775.70 , said bid having been adjusted
to $ 55.540,000.00 of Bonds at an adjusted sale price of
$ 54,429.275.87 , plus accrued interest from January 1, 1994,
to the date of delivery of the Bonds, be accepted and confirmed,
such principal and interest to be payable semiannually as follows:

Maturity Principal Maturity Principal
May 1, Amount Rate May 1, Amount Rate

1994 $ 455,000 4.40 % 2003 $ 4,995,000 4.50 %
1995 1,030,000 4.40 % 2004 5.240.000 4.50 %
1996 1,080,000 4.40 % 2005 5.135.000 4.50 %
1997 1,130,000 4.50 % 2006 2 3900 00 4.60 %
1998 1, 185,000 4.50 % 2007 5. 670.00 4.60 %
1999 2,595,000 4.50 % 2008 3,430Q0 0 4.60 %
2000 2,725,000 4.50 % 20.09 .3.595. 000 4.60 %
2001 2,860,000 4.50 % 2010 2.935.000 4.60 %
2002 3,010,000 4.50 % 2011 3,090.000 4.60 %

and being a bid at a net interest cost to the Board of 4.7442 %
per annum; and said bid is hereby determined to be the best bid
with the most favorable net interest cost to the Board for said
Bonds; and the interest rates on said Bonds are hereby fixed at the
rates set out in said successful bid.

Section 2. That all other bids are hereby rejected, and
the successful purchaser will deposit the good faith deposit in
immediately available funds in National City Bank, Lexington, prior
to the close of business on January 13, 1994, in accordance with
the published Notice of Bond Sale and the Official Terms and
Conditions of Sale of Bonds.

Section 3. That said Bonds shall be delivered by the
Chairman of the Board of Trustees and/or other proper officers of
the Board to said purchaser as soon as the Series A, C, F and H
(Second Series) Bonds are printed and ready for delivery in accor-
dance with the Resolution authorizing said Series A, C, F and H
(Second Series) Bonds, and all of the proceeds of the Series A, C,
F and H (Second Series) Bonds shall be used only as. provided in
said Resolution.

Section 4. That said bid is accepted subject to the
condition that such acceptance subjects the Board to no obligation
to deliver the Bonds if for any reason the Board is unable to
obtain the final approving legal opinion of the firm of Rubin Hays
& Foley, Municipal Bond Attorneys, Louisville, Kentucky, as to said
Series A, C, F and H (Second Series) Bonds, or if said Series A, C,
F and H (Second Series) Bonds shall be subject to ad valorem
taxation by the Commonwealth of Kentucky, or if the receipt of
interest on said Series A, C, F and H (Second Series) Bonds shall
be subject to income taxation by the federal government or by the
Commonwealth of Kentucky, prior to or on the delivery date of said
Series A, C, F and H (Second Series) Bonds, and the purchaser shall
not be required to take delivery of said Series A, C, F and H
(Second Series) Bonds without the final approving opinion of said
attorneys accompanying said Bonds, or if said Bonds or the interest
thereon shall become subject to such ad valorem or income taxation
prior to such delivery date.

Adopted on January 12, 1994. X

Chirm- an

CERTIFICATE

I, Lois C. Weinberg, hereby certify that I am the duly
qualified and acting Secretary of the Board of Trustees of
University of Kentucky, Lexington, Kentucky, that the foregoing is
a full, true and correct copy of a Resolution adopted by the
Executive Committee of the Board of Trustees of said University of
Kentucky at a meeting duly held on January 12, 1994, and that said
Resolution has been duly recorded in the Minute Book of said Board.

Secretary, Board o Trustees
ot