Repository: UIHistories Project: Board of Trustees Minutes - 1942 [PAGE 162]

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1941]

UNIVERSITY OF ILLINOIS

159

REFUND OF SERVICE CHARGES ( i l ) W h e n a student withdraws from the University during the first ten days of instruction his fees, with the exception of the matriculation fee, are refunded in full. After ten days partial refunds of fees (with the exception of the matriculation fee) are made. T h e question arises whether, when the Mini Union Building at Urbana and the Union Building in Chicago are placed in operation, the service charges collected from students for the use of these buildings shall be refunded in accordance with the above provisions to students withdrawing from the University before the last date when any part of the fees are refundable. Under the Mini Union Building trust agreement the University is obligated to assess and collect a service charge. T h e agreement provides, however, a stipulation that "the power of the University to refund service charges, when a student withdraws shortly after registration, shall not be deemed in breach of this agreement or of the lease." This would imply that any provision to refund substantial portions of the service charge in cases of withdrawals might be considered a breach of the trust agreement and of the lease except when a student withdraws a few days after registration when it may be regarded as if he had not registered at all. T h e University Counsel advises that this question should be considered from the financial rather than the legal standpoint. T h e lendor, the Connecticut Mutual Life Insurance Company, and the lessor, the University of Illinois Foundation, would have an interest in the extent to which the service charge is refunded only in so far as such refunds would lessen the margin of safety in the operating income of the building, which should be maintained to insure payment of the rental regularly. T h e Registrar reports that the number of withdrawals during the first semester of the current year would have involved refunds of the Mini Union Building service charge amounting to less than $400 had the building been in operation and the full charge assessed at the beginning of the semester. It would appear that under present conditions the total amount of the service charge refundable in accordance with the present schedule of refunding fees would not exceed $1,000 a year. I recommend that the Board authorize the refund of the service charges for the use of the Mini Union Building at U r b a n a and the Union Building in Chicago to students withdrawing from the University in accordance with the schedule of refunds applicable to other fees, provided that if at any time the total amount of refunds reduces the income below what is needed to meet all obligations the Board of Trustees will make up the difference by an assignment from the General Reserve Fund of the University.

On motion of Mr. Cleary, these refunds were authorized as recommended.

EXTENSION OF TIME ON C O N S T R U C T I O N OF ILLINI U N I O N BUILDING (12) T h e following resolution is offered. Whereas, the Mini Union Building ( P . W . A . Project 111. 1745-F) was not completed by November 30, 1940, the last official completion date set by the Federal W o r k s Agency, for the following reasons: 1. Inability of the subcontractor in Detroit, Michigan, for cabinet work to hold plant workers against the increased wages offered by the war industries for pattern makers. This has also resulted in the delay of other contractors. 2. Inability of the subcontractor on Formica in Cleveland, Ohio, to obtain cabinet workers. This has also resulted in the delay of other contractors. 3. Inability to get sufficient carpenters locally to install either cabinet work or Formica to meet required progress schedule, due to the demand for such workmen on the construction under way in the United States Army Air Corp? Technical School at Chanute Field, Rantoul, Illinois, which is approximately fifteen miles from Champaign-Urbana. 4. E r r o r s in construction on built-in lighting fixtures, the correction of which has delayed the work of other contractors. 5. Failure to secure the delivery of finished h a r d w a r e not only delayed this phase of the project but also the work of other contractors. And ivhereas, on the basis of the best information available, it appears that an additional two months should be allowed for the completion of this building;