Minutes of a Regular Meeting, June 22-23, 2004 - Digital Collections

June 22-23, 2004 29174Cessna 2005, Cessna, 172R $2,400 $7,980 $155,110 $200,605 $2,117,800Christiansen 2005, Cessna, 172R $2,400 $7,980 $155,596 $201,091 $2,124,118New Piper 2005, Piper, Warrior III -0- -0- $165,928 $207,788 $2,240,784* Total = 11 standard airplanes + 2 avionics airplanes.Additionally, other non-price factors were included in the evaluation:- A preference for New Piper’s low-wing aircraft versus the high-wing aircraftprovided by Cessna. Following graduation from flight school, students will mostlikely fly low-wing aircraft;- A desire to provide students with the more advanced avionics available from NewPiper;- Expected higher resale value of the New Piper aircraft (when the planes areeventually removed from the fleet);- Minimized disruption to students in the Aviation program as our existing fleetconsists of Piper aircraft; and- Minimal training required by flight instructors and maintenance personnel sincethey are already familiar with Piper aircraft.The evaluation team determined that award to The New Piper Aircraft, Inc. companyof Vero Beach, Florida, represents best value to the University.II. AND III. MASTER LEASE-PURCHASE PROGRAMThe Oklahoma State Regents for Higher Education (OSRHE) implemented theMaster Lease-Purchase program to facilitate for Oklahoma colleges and universities acquisitionsof long-lived assets using the lease-purchase method. OSRHE submits funding requirementsperiodically through the Oklahoma Executive and Legislative Bond Oversight Commissions andthe Oklahoma Development Finance Authority, the conduit financing agency, and assists indeveloping and executing an appropriate plan of financing. Institutions service the bond debtusing current operating funds. Certain dollar limits and useful life requirements must be met foran acquisition to qualify for the program. This service provided by OSRHE greatly reduces thetime and effort that would otherwise be required for an institution to finance the acquisition of amajor asset. A Reimbursement Resolution by the Board is required in the event-because oftiming-University funds must be used for the original acquisition, and reimbursement is neededfrom the lease proceeds. This Resolution constitutes a declaration of official intent as is requiredby the reimbursement regulations set forth in Regulation Section 1.150-2 of the Internal RevenueCode.FUNDING:Funding has been identified, set aside and is available from a combination of 1) landsale proceeds ($1.5 million), 2) proceeds from the sale of the University owned planes (estimatedat $280,000) and 3) Master Lease proceeds. The resulting Master Lease debt service will befunded by the Department of Aviation at an amount comparable to their current costs for leasedaircraft.President Boren recommended the Board of Regents: