Repository: UIHistories Project: Board of Trustees Minutes - 1972 [PAGE 267]

EXTRACTED TEXT FROM PAGE:

1971]

UNIVERSITY OF ILLINOIS

257

3. Grant an option to the New Hope Foundation for the purchase within one year of approximately 14 acres directly east of the 26-acre parcel at a cost of $10,000 per acre. T h e easement across this tract, referred to in No. 2 above, will terminate if the option to purchase is exercised and the consideration of $11,680 previously paid will be applied toward the purchase price. If this option is not exercised in one year, any extension will be based upon a new appraisal. The funds from the immediate sale of this land will be used by the University of Illinois Foundation to reduce its indebtedness incurred in the acquisition of the property. O n m o t i o n of M r . G r i m e s , t h i s r e c o m m e n d a t i o n w a s a p p r o v e d b y

the following vote: Aye, Mr. Forsyth, Mr. Grimes, Mr. Hahn, Mr. Howard, Mr. Hughes, Mr. Neal, Mr. Pogue, Mr. Swain; no, none; absent, Dr. Bakalis, Governor Ogilvie, Mr. Steger.

EMPLOYMENT OF CONSULTANT FOR ENGINEERING LIBRARY. URBANA (20) T h e President of the University, with the concurrence of appropriate administrative officers, recommends employment of Building Systems Development, Inc., San Francisco, California, for professional services in connection with the development of procedures and formats for the proposed construction of the Engineering Library at the Urbana-Champaign campus at a cost of $28,550. Funds are available in state capital appropriations to the University subject to release by the Governor. O n m o t i o n of M r . G r i m e s , t h i s r e c o m m e n d a t i o n w a s a p p r o v e d b y the following vote: Aye, M r . Forsyth, M r . Grimes, M r . H o w a r d , M r . H u g h e s , M r . Neal, M r . Pogue, M r . S w a i n ; no, n o n e ; absent, D r . B a k a l i s , G o v e r n o r O g i l v i e , M r . S t e g e r . M r . H a h n a s k e d t o be r e c o r d e d a s not voting. CHANGE IN CONTRACT FOR GAS SERVICE FOR HEATING PLANT, CHICAGO CIRCLE (21) At its meeting of September 18, 1963, the Board authorized a contract with Peoples Gas Light & Coke Company, Chicago, for gas service for the Chicago Circle campus Heating Plant under "Interruptable Boiler Fuel Service Classification V-3." On January 4, 1965, the Company issued a rate change to its customers included in the Interruptable Boiler Fuel Service. As part of this change, the classification under which the University was receiving gas was redesignated V-5. Both the present and former classifications permitted each customer to select one of several rates per therm of gas. Those selecting the higher cost are subject to their service being interrupted only after those paying the lower rates have been interrupted, thus permitting those paying the higher rate to receive a greater quantity of gas. T h e University is currently paying 2.97 cents per therm. Following the recent experience with the purchase of fuel oil, an analysis was made of the cost of heating by gas as compared to oil. Based on the estimates of the amount of gas expected to be available in the future and the current cost for fuel oil, it is estimated that annual savings of $10,000 to $12,000 can be realized by purchasing gas at a higher cost (and thus receiving more gas) and reducing the consumption of fuel oil. Accordingly, the Director of Physical Plant and the Superintendent of Utilities of the Chicago Circle campus, with the concurrence of the Director of Business Affairs and the Campus Legal Counsel, have notified Peoples Gas Light & Coke Company to change the University's selection of rates from 2.97 cents per therm to 3.10 cents per therm. This change will result in an annual increase in payments of approximately $17,000, but with a corresponding decrease in the estimated annual cost of fuel oil required of $27,000 to $29,000. While it appears that the Board's action of September 18, 1963, left to the administrative officers concerned the choice of rates within the specified classifi-