Repository: UIHistories Project: Board of Trustees Minutes - 1982 [PAGE 222]

EXTRACTED TEXT FROM PAGE:

1981]

UNIVERSITY OF ILLINOIS

211

T h e University Patent Committee has reviewed the proposed exception contained in the patent clause of the agreement and recommends approval. I concur.

On motion of Dr. Donoghue, this recommendation was approved. Report of Finance Committee on Treasurer's Bond

(20) T h e Finance Committee reports that it has received from Bernard T . Wall, treasurer of the University of Illinois, a bond in the amount of $6,000,000 with the Continental Casualty Company as surety. The bond has been approved by the appropriate University officers. T h e Finance Committee has accepted the bond and reports its receipt for record.

This report was received for record. Revision of Dollar Limits on Purchases, Leases, and Contracts Requiring Specific Board of Trustees Authorization

(21) From time to time the board has been asked to consider revisions of the dollar limits for specific transactions which require prior authorization by the trustees. T h e most recent change in dollar limit to $15,000 and over for purchases, leases, and contracts was approved by the board in December of 1978. The task of preparing the necessary documents to be ready for board meeting dates is substantial. T h e administrative cost is not insignificant. A revision to the dollar limits for transactions requiring prior Board of Trustees approval would provide for a greater flexibility at the operating level and increased efficiency. Therefore, in accordance with Article I I , Section 4, Paragraph (e) of The General Rules Concerning University Organization and Procedure, I recommend the following: 1. Specific prior authorization of the board is required for purchases, new leases, and contracts of $25,000 and over (the present amount is $15,000). 2. Purchases, new leases, and contracts involving payments in the range of $20,000$24,999 be reported to the board (the present amount is $12,500-$14,999). (During Fiscal Year 1980, 484 purchase transactions valued at over $33 million were submitted to the board for approval. Nearly 40 percent of these transactions were below $25,000 with a cumulative value of less than $4 million.)

On motion of Dr. Donoghue, this revision was approved. Underground Coal Lease, Hunter Farm No. 2, Sangamon County

(22) Hunter Farm No. 2 in Sangamon County near Williamsville, Illinois, containing 210.02 acres, is now used to provide income for agricultural scholarships. T h e University has received an offer from the Mobil Coal Resources, Inc., a subsidiary of Mobil Oil Corporation, to enter into an underground coal lease on that property. T h e company has offered an advance royalty of $294 per acre or a total of $61,745.88. T h e earned royalty for the first fifteen years would be 3.5 percent of the average price per ton of coal mined. After the first fifteen years, the earned royalty would be 4.5 percent of the average price per ton of coal mined. T h e University would be credited according to the amount of coal mined when mining starts. T h e advance royalty is deductible from earned royalty amounts due. The coal will be mined underground. A special clause would be included in the lease to protect the University against surface damage and subsidence and to require the lessee to comply with state and federal mining laws and regulations. T h e dean of the College of Agriculture has recommended that the University enter into this agreement for an initial term of thirty years and for so long thereafter as mining operations are being conducted by or for the lessee there. T h e chan-