Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 13]

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BOARD OF TRUSTEES

[July 21

ESTABLISHMENT OF BASIC RATES FOR JANITOR SERVICE AT URBANA-CHAMPAIGN (12) After various discussions in which Director Dickason took part and in which the President joined on one occasion, the following agreement between the University and the Union is desirable: The present $1.35 rate shall be maintained and accepted by the University and the Union for two years beginning July 1, 1948, and ending June 30, 195°. with the understanding that if during that period the composite rate for janitors' wages reaches or goes above $1-35, the University rate will at that time be tied to the composite janitor rate and shall rise and fall thereafter as it rises and falls. If by June 30, 1950, the composite janitor rate has not yet reached $1.35, the University and the Union will reopen negotiations for the purpose of establishing a mutually satisfactory basis for fixing the University wage rate thereafter. This plan will mean that we will not reduce the janitors' pay prior to June 30, 1950, but will reserve the right to negotiate at that time for establishing a new base related to the composite rate for janitors. In accordance with the action of the Board already taken, it divorces the janitors' rates from the rates for Class B Common Labor. I recommend that such an agreement be approved.

Director Dickason commented on this matter. On motion of Mr. Nickell, this agreement was approved.

INSURANCE ON HOSPITAL AND MEDICAL SERVICE PLAN (13) On April 29, 1943, the Board of Trustees established a uniform hospital and medical service fee to be assessed against all students in the Urbana-Champaign departments. At later dates this requirement was extended to the Chicago and Galesburg Undergraduate Divisions. The Board also approved the recommendation "that at least for the first two or three years, the Board of Trustees authorize the carrying of insurance to cover its obligations under this plan. Later, if it is clear that the proposed fee is adequate, insurance protection can be eliminated." Each year since that time an insurance policy has been purchased to underwrite the obligation of the Board for the services offered to students under this fee. In the intervening years a considerable surplus has accrued to the University from the operations of the fund (the amount now exceeds $100,000). Each insurance company carrying the insurance also has had an ample margin over and above costs. Handling these services through a commercial insurance company involves a material amount of added labor. It also involves added cost of insurance company administration as well as profit retained by them. Experience with the plan is now adequate and the accumulated reserves sufficient to justify the University in assuming this risk and obligation itself. The Legal Counsel has reported to the Department of Insurance this contemplated change in policy. It is proposed that the buying of insurance to cover this plan be eliminated.

On motion of Mr. Nickell, this matter was referred to the Finance Committee for consideration and report.

HANDLING OF PETTY CASH AND WORKING FUNDS AND SECURITIES (14) The State Statute governing the organization of the University (approved February 28, 1867, as amended) provides that at each biennial meeting "it shall be the duty of the Board to appoint a Treasurer who shall not be a member of the Board and who shall give bonds with such security as the Board of Trustees shall deem amply sufficient to guard the University from danger of loss or diminution of the funds entrusted to his care." Article VI, Section 4 of the By-Laws of the Board of Trustees (adopted 1008) provides as follows: "The Treasurer shall be the custodian of all the funds and securities belonging to the University." On February 10, 1932 (Minutes, page 537), the Board of Trustees approved a contract with the First Union Trust and Savings Bank (later merged with