Repository: UIHistories Project: Board of Trustees Minutes - 1990 [PAGE 426]

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414

BOARD O F T R U S T E E S

[ N o v e m b e r 14

Increase in Contract, Dual Fuel Cogeneration Power Plant, Chicago (Report of President's Action)

(13) In November 1990, the Board of Trustees authorized contracts for the construction of the Dual Fuel Cogeneration Power Plant at the Chicago campus. T h e University issued separate contracts to the major engine manufacturer and the general contractor. Since shop drawings detailing the engine construction were not completed until well after the construction contracts were awarded, the architect has determined that the general contractor will need to modify the engine supports to conform to the engine manufacturer requirements. In accordance with standard procedure, the architect has provided the contractor with the requirements for modification and recommended that the contract with the general contractor be increased by approximately $92,150 in order to complete these modifications. Inasmuch as it was essential that this work be done immediately, the president authorized an increase to the contractor, John Burns Construction Company, Orland Park, in order that the work proceed immediately. In accordance with the General Rules Concerning University Organization and Procedure, the president reports his action and requests confirmation of it. Funds for this project are provided by the lessor/trustee from the proceeds of the sale of Certificates of Participation.

O n motion of Ms. Reese, this r e p o r t was received and confirmed. By consensus, the board agreed that one roll call vote would be taken and considered the vote on each agenda item nos. 14 t h r o u g h 28 inclusive. T h e recommendations were individually discussed b u t acted u p o n at one time. ( T h e record of board action appears at the end of each item.) Transfer of Hedging Account, University Farms, Urbana

(14) Commodities produced on the University's endowment farms generate funds for a variety of programs, including scholarships, fellowships, the maintenance of Allerton Park and Conference Center, student loans, and 4-H. Hedging commodities is a part of the farm management, reducing the risk associated with commodity production and sales, and is conducted through a registered commodity futures representative employed by a clearing member of the major commodity exchanges. Prior to 1990, the hedging account was with Stotler and Company. On October 11, 1990, the Board of Trustees approved the transfer of the account from Stotler and Company to Iowa Grain Company because Stotler and Company closed their offices. Due to the circumstances that necessitated the transfer in 1990, a reassessment of the hedging account situation was deemed necessary in 1991. After completing an evaluation of services offered and fees charged by comparable firms, authority now is requested to transfer the University hedging account to Bielfeldt and Company. T h e University will be required to pay Bielfeldt and Company their standard brokerage fee estimated to be $2,500 for the transactions handled. T h e fee is a regular farm expense, similar to feed, seed, or fertilizer, and will be paid from endowment farm income. Accordingly, the dean of the College of Agriculture has recommended the continuance of a hedging account to be administered by the farm manager under his responsibility of marketing crops grown on endowment farms. T h e chancellor at Urbana, with the concurrence of the vice president for business and finance, has recommended that the board adopt the following resolution authorizing the establishment of such an account with Bielfeldt and Company. I concur.