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Caption: Board of Trustees Minutes - 1980
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318 BOARD OF TRUSTEES [June 20 Three other firms were invited to submit sealed bids in accordance with "Regulations Governing Procurement and Bidding at State Systems Universities in Illinois" but did not do so. Funds are available in the institutional funds operating budget of the Operation and Maintenance Division, Urbana. 2. Execute an agreement with Illinois Power Company for the purchase of natural gas at approved rates filed with the Illinois Commerce Commission, subject to the availability of funds. The vice president for administration concurs. I recommend approval. Establishment of Escrow Account at the Bank of St. Paul, St. Paul, Minnesota (47) O n May 16, 1979, the Board of Trustees approved the purchase of a spectrometer system from the Physical Electronics Industries Division of Perkin-Elmer Corporation (Eden Prairie, Minnesota) at a price of $429,250. This firm made the low bid of two proposals received. Each proposal required a prepayment at the time of the order of at least $200,000. The condition that a prepayment be made was not included in the purchase request as presented to the board. The prepayment was required by the bidder for two reasons: 1. Because of the custom-built nature of the equipment, of which only an operating prototype existed, and 2. Because of the length of time required for construction and delivery, quoted as one year. The Physical Electronics Industries Division has been notified by the University that the Board of Trustees is not empowered to provide prepayment on a purchase but that the board may approve the establishment of an escrow account to which prepayment could be made and funds therein released upon delivery of the equipment. T h e firm has indicated that such an arrangement would be acceptable. Because the bids were due to expire before the June 20 board meeting and because the company has indicated that a subsequent bid would be approximately $85,000 higher, the University has issued a purchase order contingent upon Board of Trustees' approval of the escrow arrangement. T h a t arrangement provides that principal and interest earned on the account would be released to Physical Electronics upon delivery of the equipment within the stipulated period, or that such principal and interest earned would be returned to the University, in the event the purchase is not completed. The chancellor at the Urbana-Champaign campus has requested that the comptroller and the secretary be authorized to enter into an escrow agreement with the Bank of St. Paul, Minnesota, as described above. Institutional funds will be used for this transaction. The vice president for administration concurs. I recommend approval. Purchases (48) The president submitted, with his concurrence, a list of purchases recommended by the directors of purchases and the vice president for administration. T h e list of purchases was presented in two categories: purchases from appropriated funds (i.e., from state appropriations to the University) and purchases from institutional funds. The latter term designates funds received by the University under contracts with the United States government, private corporations, and
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