Repository: UIHistories Project: Board of Trustees Minutes - 1962 [PAGE 1514]

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1962]

UNIVERSITY OF I L L I N O I S

1511

Johnston, Mr. Pogue, Mr. Swain, Mrs. Watkins, Mr. Wilkins, Mr. Williamson; no, none; absent, Mr. Billiard, Mr. Kerner.

CONTRACTS FOR FUEL OIL FOR MEDICAL CENTER STEAM PLANT AND FOR CHICAGO UNDERGRADUATE DIVISION Fuel Oil for Medical Center Steam Plant (20) The Director of the Physical Plant, the Business Manager for the University of Illinois at the Medical Center, and the Vice-President and Comptroller recommend the purchase of a minimum of 8,000 gallons of No. 5 fuel oil, with the option of purchasing as much more as may be required but not to exceed 450,000 gallons, for the 1962-63 heating season, from the Apex Motor Fuel Company, 1401 West North Avenue, Chicago, Illinois, the lowest bidder. The net price per gallon will fluctuate with the current posted prices listed in the Oil Daily (a recognized publication of daily petroleum market quotations) less a discount of $.0089, with the stipulation that the net price will not exceed $.0861. The current net price per gallon is $.0861 after a discount of $.0089 from the current posted price of $.095. Based on current market prices the total cost of the minimum quantity (8,000 gallons) will not exceed $688.80 and the total cost of the maximum quantity (450,000 gallons) will not exceed $38,745. The Medical Center Steam Company plant is equipped to burn either coal, gas, or oil. Winter operation has been with coal, and summer with gas. The fuel oil is for stand-by service. If used for emergency operation instead of gas or coal, there will be a corresponding reduction in expenditures for these two fuels. Fuel Oil for Undergraduate Division The aforesaid officers also recommend the purchase of No. 5 fuel oil, as required, not to exceed 280,500 gallons, for the 1962-63 heating season at Navy Pier from the Apex Motor Fuel Company, 1401 West North Avenue, Chicago, Illinois, the lowest bidder. The net price per gallon will fluctuate with the current posted prices listed in the Oil Daily less a discount of $.0089 with the stipulation that the net price will not exceed $.0861. The current net price per gallon is $.0861 after a discount of $.0089 from the current posted price of $.095. Based on current market prices the total cost for 280,500 gallons will not exceed $24,151.05. The Undergraduate Division power plant at Navy Pier is equipped to burn either gas or oil. I concur and recommend that the Comptroller and the Secretary of the Board be authorized to execute the contracts.

On motion of Mr. Swain, these purchases were authorized, by the following vote: Aye, Mr. Clement, Mr. Harewood, Mr. Hughes, Mr.

Johnston, Mr. Pogue, Mr. Swain, Mrs. Watkins, Mr. Wilkins, Mr.

Williamson; no, none; absent, Mr. Dilliard, Mr. Kerner.

INCREASE IN LEASE WITH THE UNIVERSITY OF ILLINOIS FOUNDATION FOR THE PROPERTY AT 1 2 9 NORTH RACE STREET. URBANA (21) The University is sub-leasing from the University of Illinois Foundation, at a rental rate of $650 per month, the property at 129 North Race Street, Urbana, for use by the Department of Psychology. The basement and first floor were remodeled by the owner to meet the requirements of the Department of Psychology and the second floor (unremodeled) is used for storage space. Additional space is now required for office and laboratory purposes by the Department of Psychology which can be obtained by improving the present second floor storage area. The owner of the building has submitted a proposal to remodel the area and to amortize the cost of the remodeling by increasing the rent. It would be to the University's advantage in terms of rental rate to spread the amortization cost over a nine-year period. However, this will require the University of Illinois Foundation which leased the building for five years and has sub-leased to the University to exercise the lease option for an additional five-year lease.