Repository: UIHistories Project: Board of Trustees Minutes - 1972 [PAGE 36]

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26

BOARD OF TRUSTEES

[July 22

recommended that the term of the policies be for the longest period available, subject to the University's right to terminate as previously stated. The longest term for public liability and automobile insurance is three years, and the airport and aviation insurance is five years. Funds are available in the FY1970 appropriations by the General Assembly for the automobile portion of the premium; and in the Airport Operations, University of Illinois Hospital, McKinley Hospital, Veterinary Clinic, Workmen's Compensation and Contract Research Reserves for the balance of the premium. I concur. O n motion of M r . Grimes, these recommendations w e r e approved by the following vote: Aye, Mr. Clement, M r . Grimes, M r . H a h n , M r . H u g h e s , Mr. Stone, Mr. Swain, D r . W a l k e r ; no, none; absent, Mr. Jones, Governor Ogilvie, M r . Page, M r . Steger. SUPPLEMENTAL COAL PURCHASES, URBAN A (41) The Board of Trustees on May 20, 1970, approved a recommendation for the purchase of 122,500 tons of coal screenings, plus or minus twenty per cent, to be purchased and delivered as needed to the Abbott Power Plant for the period July 1, 1970, through June 30, 1971. It has been anticipated that the 122,500 tons, plus the twenty per cent option purchases, along with existing coal reserves at the University, would satisfy the requirements for the period indicated. However, certain conditions, including an abnormal use of University coal reserves associated with the utility demand for electrical power for its own needs and under the pool agreement with the Illinois Power Company, has resulted in the need for an additional 22,000 tons of coal between the period of August 1 of this year and June 30 next. After public bid notices and direct bid solicitations to all known competitive sources in the general geographical area, only one bid was received, from the Ayrshire Coal Company, of Indianapolis, Indiana. There has been an unanticipated closure of Illinois mines and a reduced coal production by two mines which previously have competitively supplied coal to the University. Currently coal is being bid in a seller's market due to the inability of mines to produce sufficient quantities to meet the unprecedented demands for low sulphur content coal as a method of reducing air pollution. The coal available from two of the three mines from which the Ayrshire Coal Company proposed to furnish coal complies with the University specifications as to sulphur content, but the mines do not have sufficient capacity to meet the University's anticipated needs. Therefore, it may be necessary to accept coal from a third mine having a slightly higher sulphur content than the University prefers in order to meet its coal requirements. The Vice President and Comptroller recommends, in order to assure having sufficient coal available to meet the power production demands, that the Board authorize the Comptroller and the Secretary of the Board of Trustees to execute such contracts and appropriate documents with the Ayrshire Coal Company for 22,000 tons of coal screenings according to the University specifications, for delivery between August 1, 1970, and June 30, 1971, at a price of $6.25 per ton, f.o.b., mines located at Delta, Illinois, Latta, Indiana, and Brazil, Indiana, for an estimated total of $220,880, including freight, as coal is available from these mines. Funds for this purchase are available in the current operating budget of the Department of Plant and Services, Urbana. I concur.

On motion of Mr. Grimes, this recommendation was approved.

PURCHASES

(42) The President submitted, with his concurrence, a list of purchases recommended by the Directors of Purchases and the Vice President and Comptroller; also purchases authorized by the President. The list of purchases was presented in two categories: purchases from appropriated funds (i.e., for 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, contracts