Repository: UIHistories Project: Board of Trustees Minutes - 1978 [PAGE 303]

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292

BOARD OF TRUSTEES

[Majy l a

Datt, 4/2.0. 4/21 4/22 4/25 4/25

Face Value Cost or or Number • Yield of Shares Security (Percent) Amount | 305 955 McLean County Bank 554 percent certificate of deposit due 7/20/77 5.75% * 305 954 79 355 000 U.S. Treasury bills due 10/20/77 4.82 346 551100 10 000 U.S. Treasury 3)4 percent bonds due 6/15/83 6.08 8 465 00 3 000 000 First National Bank of Chicago 5 percent open-end time d e p o s i t . . . : . . . 3.00 3 000 000 00 15 000 U.S. Treasury bills due 3/7/78 5.09 14 358 33

On motion of Mr. Livingston, this report was approved as presented.

Release from Liability in Use of Propane Gas, Fire Service Institute

(33) The University's Fire Service Institute provides instruction on the strategy,* technique, and use of equipment in suppression of fires fed by various fuels. One such exercise requires the use of propane gas. The firms which supply propane gas normally do so for consumer uses and not for instructional demonstrations such as those of the institute. As a result, these firms request release from certain liabilities due "td the' unusual circumstances surrounding such uses. Therefore, the director of the Fire Service Institute has recommended that the Board of Trustees authorize the Comptroller arid the Secretary of the Board to execute a release with Petrolane Chief Gas, a copy of which is filed with the Secretary of the Board. The Vice President for Academic Affairs concurs. I recommend approval.

On motion'Of Mr. Hahn, authority was given as recommended.

Contractual Obligations Related to Self-Insurance Program

(34) On July 21, 1976, the Board established a risk financing and management program. The program included self-insurance funding in specified amounts for public and professional liability exposures and claims asserted against the Trustees, officers, employees, and certain students for actions taken by them within the scope of their University duties, relationships, or employment. The July action extended the same coverages previously provided under the insurance contract which expired August 1, 1976, except that coverages were further limited by the amount of the unobligated balances from time to time in the Public Liability Reserve Fund and the Professional Liability Fund created by the July action. Previously, as a part of regular University contracting activity, especially in connection with hospital and other affiliation agreements under which University personnel perform duties at other than University locations, the University added the other contracting party as an additional insured under the University's contract with its insurance carrier. Under the current self-insurance program, it is no longer possible to provide the other contracting party with these protections. Accordingly, the Vice President for Administration has recommended the authorization of the addition of clauses to University contracts, where appropriate, which would provide for the adjustment and settlement of claims against the contracting party when caused, in whole or in part, by the negligence of, University personnel while acting within the scope of their University duties or pursuant to the direction or supervision of the University. The contractual arrangement would provide for payment or contribution by the University in an amount equal to the percentage of the claim which is proportionately and reasonably related to the negligence of the University personnel. Advisory arbitration in determining such percentages could be utilized if the parties