Repository: UIHistories Project: Board of Trustees Minutes - 1958 [PAGE 29]

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BOABD OF TRUSTEES

[July 25

Clinch Coal Company, 28 East Jackson Boulevard, Chicago, the lowest bidder, for 17,000 tons of screenings coal to be delivered to the Medical Center Steam Plant, operated by the University, as required during the period August 1, 1956, to June 30, 1957, a t a per ton cost of $4.00, plus transportation of $1.30, plus $1.25 for handling, storage, and delivery, or a total estimated cost of $111,350. This price is based on the present wage scale and is subject to increase or decrease in the event that wage contracts now in effect are changed, and any such change will affect the price to the extent that the production costs are increased or decreased by the new contracts. The University has the right of approval of any such increase in price. The lowest bid is determined by the number of British Thermal Units per one cent of cost based on guaranteed analysis. A continuous check is provided at the Steam Plant to insure compliance with the specifications. T h e above named officers also recommend the purchase of a minimum of 8,000 gallons of No. 6 fuel oil, with the option of purchasing as much more as may be required for emergency use but not to exceed 450,000 gallons, from the Michael Oil Company, 2446 South Western Avenue, Chicago, the lowest bidder, at a price of $.081 per gallon subject to adjustment in accordance with the posted price variations published in the Wall Street Journal. On the basis of the quoted unit price, the total cost of 8,000 gallons would be $648 and of 450,000 gallons, ?36,450. T h e Medical Center Steam Company Plant is equipped to burn either coal, gas, or oil. Winter operation has been with coal and summer operation has been with gas. The purchase of fuel oil is recommended for standby service. If used for emergency operations instead of gas or coal, there will be a corresponding reduction in expenditures for these two fuels. I concur and recommend that the Comptroller and the Secretary of the Board be authorized to execute the contracts for these purchases subject to approval by the Governor as required by the state constitution. O n m o t i o n of M r . S w a i n , t h e s e c o n t r a c t s w e r e a w a r d e d , a n d t h e C o m p t r o l l e r a n d S e c r e t a r y of t h e B o a r d w e r e a u t h o r i z e d t o e x e c u t e the same.

CONTRACTS FOR COAL PURCHASES

(19) The Director of Purchases, the Comptroller, and the Director of the Physical Plant recommend award of the following contracts for 50,300 tons of coal screenings to be delivered to the Abbott Power Plant between the period September I, 1956, through June 30, 1957: Fo h United Electric Coal Co., Chicago - - Mine Freight Total Cost 5,000 tons at #4.10 J 20 500 $ 6 250 $ 26 750 Beli & Zoller Coal Co., Terre Haute, Indiana 10,000 tons at $4.45 44 500 11 800 56 300 Republic Coal & Coke Co., Peoria 35,300 tons at $4-35 153 555 41 654 195 *°9 Sealed bids on uniform specifications were opened on July 13, 1956. Invitations were sent to twenty-four producers and sales agencies and advertisements were published in three daily papers. It is advantageous to have contracts with three sources of supply to be assured of delivery of coal at all times. The prices quoted are based on present wage scales and are subject to increase or decrease in event that wage contracts now in effect are changed. Any such change will affect the price to the extent that production costs are increased or decreased by the new contracts. The University may cancel the purchase contract if it believes that any price adjustment is not justified. I concur and recommend that the Comptroller and the Secretary of the Board be authorized to execute contracts as recommended, subject to approval by the Governor as required by the state constitution. O n m o t i o n of M r . J o h n s t o n , t h e s e c o n t r a c t s w e r e a w a r d e d , a n d t h e C o m p t r o l l e r a n d S e c r e t a r y of t h e B o a r d w e r e a u t h o r i z e d t o e x e c u t e the same.