Repository: UIHistories Project: Board of Trustees Minutes - 1976 [PAGE 455]

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444

BOARD OF TRUSTEES

[October 15

New Contract for the Operation of Levis Faculty Center, Urbana

(26) In September 1972 the Board of Trustees approved an agreement providing for the operation of the Levis Faculty Center by the Levis Faculty Center Sponsors, Inc. The key provisions of the agreement were that the Sponsors were to conduct operations and programs in the Center and were to have the sole right to engage in revenue-producing activities. The Sponsors could establish user charges and registration fees, subject to the Chancellor's approval, and could adopt rules and regulations applicable to all users, subject to the Chancellor's approval. The eligibility of persons to use the Center was determined by the Chancellor, and any eligible person paying the established user charges and registration fees had the option to become a member of the Sponsors and to participate in its governance without additional payment. Maintenance and repair, along with the provision of utilities and certain other staff and service assistance, were the responsibility of the University. The University Club was given certain reservation privileges with respect to designated space. Although both parties have made good faith efforts to fulfill the stated purposes of the agreement, the reduced level of financial support which the University can make available to the Center this year, and for the foreseeable future, and the scale of operations at the Faculty Center (which is inadequate to support a separate, free-standing management and service staff) dictate that the operational arrangement provided for in that agreement be modified. I t has been concluded that the Center's operations can be provided more economically if management and operating services are provided by an already established, larger campus operation which caters similar services. Technical competence in areas of business management, building engineering and housekeeping functions, food service and promotions, which cannot be provided economically in the Center as an isolated operation, can be provided from outside the Center through the broader University management framework at manageable cost levels. Accordingly a new agreement has been formulated by the Levis Faculty Center Sponsors, Inc., and the Chancellor which would replace the former agreement. Under the new agreement the University would continue to provide the same services and assistance as in the past and, in addition, would assume responsibility for the scheduling of events at the Center; for planning and executing all food service operations; and for managing and pricing the Sponsors' alcoholic beverage service — the net receipts from which would be applied to the payment of the Sponsors' outstanding indebtedness. T h e Sponsors' participation in the revenueproducing activities at the Center would be limited to alcoholic beverage service. Management policies for food and all beverage services would be established by the University. Net revenues from food service operations, after providing for all appropriate direct and indirect costs of the University, would accrue to the benefit of the University. The Sponsors would be responsible for the general planning and review of social, cultural, and entertainment activities held at the Center, but only members of the Sponsors would be permitted to reserve and use the Center facilities for personal or private parties. With the concurrence of the University, the Sponsors would be permitted to charge membership dues and program fees, which the University would collect and remit to the Sponsors, but all eligible users of the facilities would be entitled to use the Center and participate in its programs without becoming members of the Sponsors and without payment of a general registration or user fee. T h e Sponsors would apply all dues and fees to support programs and activities designed to maximize patronage of the Center. Eligible users would continue to be designated by the Chancellor. The University would continue to honor its commitments to the University Club with regard to the Club's use of facilities within the Center. T h e Chancellor of the Urbana-Champaign campus has recommended that the