Repository: UIHistories Project: Board of Trustees Minutes - 1936 [PAGE 531]

EXTRACTED TEXT FROM PAGE:

1936]

UNIVERSITY OF ILLINOIS

529

rnents introduced in the present special session of the Fifty-ninth General Assembly and to take such steps as may be necessary to secure its passage. On motion of D r . Meyer, this authority was granted as recommended. Professor Morey presented the following statement:

FINANCING OF PAYMENTS DUE CONTRACTORS ON MEDICAL A N D DENTAL BUILDING

On February 12, payments will be due certain contractors on contracts for the second unit of the Medical and Dental College Laboratories Building. Funds to cover these contracts are to be entirely provided by the Federal Government in accordance with the offer presented to, and accepted by, the Board of Trustees at the January meeting. It has not been possible, however, to conclude the formalities necessary to meet Government requirements which are a part of the offer, and, although an application has been filed for an advance grant of funds, this application has not yet been acted on. For that reason, the University will not have the Federal funds needed to make payment of the February certificates of contractors when they are due. The Comptroller has presented this situation to the State Director's Office, and has been advised that the University may make payment for such certificates, provided they have been approved by the Government inspector on the job, from any funds which it has, and on receipt of Government funds reimbursement may be made to other funds for such payments. Nothing in the regulations submitted by the Government in connection with its offer appears to prevent such a procedure, as will be observed by reference to paragraph 2 (b) of the offer above referred to. The payments due on February 12 on which contractors have asked prompt settlement are as follows: J. W. Snyder Co.—General contract $17 917 98 Granger & Bollenbacher—Professional services.... 8 031 96 Total $25 949 94 The University has cash in its working cash fund in its own treasury out of which these payments may be made. By this procedure the contractors would be spared any expense incident to securing a loan and for which they might call on the University for reimbursement. If the work is stopped until funds can be secured, a considerable sum in the form of extras would probably be claimed by the contractors. I recommend that the Comptroller be authorized to pay the above described obligations from the working cash fund, with the understanding that reimbursement shall be made to this fund from the first money received from the Government on account of this project. On motion of Dr. Meyer, the Comptroller was authorized to pay the General Contractor $17,917.98 and the Architects $8031.96 from the University Working Cash fund in case he is assured that the University will be reimbursed from the funds received from the Federal Government for the construction of this building; and otherwise to assist in making arrangements for a loan to the General Contractor and to the Architects by the First National Bank of Chicago, with the provision that the University be not obligated financially beyond the amount of expense which may be involved in carrying out such arrangements. The Executive Committee adjourned.

H. E. CUNNINGHAM EDWARD E. BARRETT

Clerk

Chairman pro tempore

KARL A. MEYER