Mississippi Board of Trustees of State Institutions of Higher Learning

BOARD OF TRUSTEES OF STATE INSTITUTIONS OF HIGHER LEARNINGAGENDABUDGET, FINANCE AND AUDITNovember 14, 2007Page 1 of 3521. JSU – APPROVAL OF RESOLUTION TO ISSUE AND SELL SERIES 2007REVENUE BONDS AND THE DOCUMENTS RELATING TO SAID BONDSBoard approval is requested for a Resolution authorizing the Jackson State UniversityEducational Building Corporation (the "JSU/EBC") to issue certain Revenue Bonds,Series 2007 for a total amount not to exceed $52,500,000. The proposed bonds issuedwill be issued with a put option to fix the interest rate for a period of five-to-seven yearswhich may be fixed prior to the put date should the market be favorable. As of October17, 2007, JSU was projecting an initial present value savings of $2.2 million, an averageannual savings just under $146,000. All funds to pay the related costs of issuance, sale,delivery of the Bonds and interest on and other costs relating to the Bonds should costapproximately $770,000. The following documents relating to the Bonds have beensubmitted:1. Amended and Restated Ground Lease,2. Amended and Restated Lease,3. Escrow Agreements, and4. Indenture.STAFF RECOMMENDATION: Staff recommends JSU obtain competitive bids forthe issue with at least two quotes on a variable rate program and a quote for a 27-year fixed rate issue from investment grade banks. Should the bids indicate avariable rate is more advantageous, JSU should do an interest rate swap to ensurethe variable rate debt does not exceed 30 percent of the debt portfolio after the issue.2. UMMC – APPROVAL OF CONTRACT FOR CONSULTING SERVICESThe University of Mississippi Medical Center requests approval to renew an agreementbetween Norris FSG, Inc. and the University of Mississippi Medical Center forconsulting services for professional financial and information services to the UniversityHospitals and Health System. The term of this contract is from January 1, 2008 throughDecember 31, 2008. The contract is not to exceed $720,000.STAFF RECOMMENDATION: This contract has been reviewed and approved bythe Attorney General’s Office. Board staff recommends approval of this item.11/13/2007