university of illinois - UIHistories Project

322 BOARD OF TRUSTEES [March 12
At a meeting of the Committee on Buildings and Grounds held on February 28,
1957, the Director of the Physical Plant Department, with the concurrence of the
President of the University, presented a recommendation that Berger-Kelley and
Associates, Champaign, Illinois, be employed as architects for the second group of
four men's residence halls to house 1,500 undergraduate men, this_ being stage three
of the proposed new facilities for undergraduate men in the University's program
for housing students previously approved by the Board of Trustees.
The Board of Trustees on February 14, 1957, awarded contracts for the construction
of a group of residence halls, this being stage two of the facilities for undergraduate
men in the University's long-range housing program. The plans and
specifications for this group of buildings may be used, with certain modifications,
taking into account soil conditions, grade of land, orientation with other buildings,
heating and cooling loads. No standard fee has been established by the architectural
profession for an assignment of this kind. Accordingly, the Committee recommends
that Berger-Kelley and Associates, architects for the first group of residence halls in
stage two, be employed as architects for the next group of men's residence halls and
paid for such services on the basis of actual costs of drafting work, superintendence
and the time of principals in the firm, plus 100 per cent for overhead and commission;
provided that the total fee does not exceed 3.49 per cent of the cost of construction
contracts.
On motion of Mr. Johnston, the Committee's recommendation was
approved and the employment of Berger-Kelley and Associates was
authorized on the terms specified.
SALE OF MEN'S RESIDENCE HALLS REVENUE BONDS OF 1957
Mr. Livingston, for the Executive Committee, presented the following
report.
Bids were received on March 5, 1957, for the sale of $6,750,000 Men's Residence
Halls Revenue Bonds of 1957 to finance the construction of residence halls
in Urbana-Champaign.
No bids were received from private companies for the Series B bonds in the
amount of $3,000,000 for which the University has received assurances from the
Housing and Home Finance Agency that the United States Government will purchase
such bonds at an interest cost of 2.875 P& cent.
Three bids were received for the Series A bonds, totalling $3,750,000 as follows:
Effective Total
Interest Interest
Company Price Interest Rates Rate Cost
John Nuveen & Co. $3 700 012 50 5%; 4.5%; +.25%; 4.345% $4 297 39750
and Associates 4-4%; 3-5%
F. S. Smithers & Co. 370256250 6%; 4.2%; 4.25%; 4.374% 432564000
and Associates 4-3%
Blyth & Co., Inc., 3 700 000 00 4.5%; 4.25%; 4482%, 4 432 927 50
White, Weld 4-375%; 4-4%
and Co., and
Associates
The effective interest rate, based on the bid of John Nuveen & Co. and Associates
for the Series A bonds and of the Housing and Home Finance Agency for Series B
bonds, will be 3.71 per cent.
Since the bid submitted by John Nuveen & Co. and Associates and the bid
submitted by F. S. Smithers & Co. and Associates were at a discount and some of
the coupons would be 5 per cent or more, the question was raised whether this exceeds
the statutory maximum interest. Chapman and Cutler advised the Executive Committee
that the best bid received, the one from John Nuveen & Co. and Associates,
could legally be accepted and that Chapman and Cutler would approve the issue 0
bonds if thus awarded, provided that John Nuveen & Co. gives to the Board of
Trustees a schedule of prices for various maturities which would show that no
maturity would have an interest cost to maturity greater than 5 per cent. This has
been done, and a copy of the schedule follows.