Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 145]

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1986]

UNIVERSITY OF ILLINOIS

135

year for three yean. Of this total ($1.5 million), $1.25 million will be used to pay for a share of the expanded interferometer and for guaranteed access to it; the remaining $250,000 will be used to implement the facility at Urbana-Champaign. After the three-year expansion phase, the majority of the operational costs will be sought from the National Science Foundation. Operational expenses not derived from such grants will be sought from the two universities, the University of California, 60 percent; and the University of Illinois, 40 percent. The agreement is for a period of 10 years, to begin effective with approval by the National Science Foundation and provides for termination upon the unavailability of funds. Funds are available in the Fiscal Year 1987 institutional funds budget of the Urbana campus for the initial $500,000 payment. In subsequent fiscal years, the annual payments will be included in the operating budget authorization request from institutional funds. The chancellor at Urbana has recommended approval of the agreement as described. The vice president for business and finance concurs. I recommend approval. O n m o t i o n of M r . M a d d e n , this r e c o m m e n d a t i o n w a s approved by t h e following v o t e : Aye, Mrs. D a y , M r . Forsyth, Mrs. Gravenhorst, M r . H a h n , M r . H o w a r d , M r . L o g a n , Mr. M a d d e n , Mrs. Shepherd, Miss S m i t h ; n o , n o n e ; absent. Governor T h o m p s o n . ( T h e student advisory v o t e w a s : Aye, M r . Filip, M r . Starkeson; n o , none.)

Contracts for the Operation of Auxiliary Food Services, Chicago

(18) The chancellor at Chicago has recommended the award of contracts to Burger King, Inc. (hereinafter the Pillsbury Group) and to Custom Management Corporation for the operation of auxiliary food services at the Chicago campus, beginning on or before January 1, 1987. The contractors will operate all campus food service facilities except those at the University Hospital, at the Faculty Club, and at the Pavilion. These will continue to be operated by the campus. The Pillsbury Group will administer fast food facilities and Custom Management Corporation will administer the housing board program, catering, and cafeterias and dining rooms located at the Chicago Circle Center, Chicago Mini Union, and at other locations on the campus. The recommendation is made following extensive efforts in recent years to reduce costs in these programs and to alleviate recurrent deficits. Indeed, costcutting itself has resulted in service reductions. It is anticipated that the new contract operations will produce a substantial improvement in dining service finances and in improved service over recent levels. Overall, the total service should operate on a break-even basis. Under the contracts, the campus will pay all utilities and a portion of maintenance costs of the food service operation; will retain title and responsibility for repairs, maintenance, and replacement of food service equipment; and will retain ownership and responsibility for the maintenance of controlled supplies (i.e., china, glassware, silverware, and trays). In addition, the campus will employ an administrative staff to oversee the contractors' performance in accord with the terms of the agreement and to support the broad contract program. The contractor will pay all other costs, including those of personnel, food, and related expenses. It is anticipated that eventually sixty-five jobs will be eliminated and those employees placed on lay-off. All are Civil Service employees. Of these, fifteen "open range" employees, not subject to a collective bargaining agreement, will be given the option of employment with the contractors for a minimum sixty-day trial period, at their current salary grade, and with fringe benefits consistent with the contractors' current benefit program.