Repository: UIHistories Project: Board of Trustees Minutes - 1956 [PAGE 383]

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38o

BOARD OF TRUSTEES

[June 16

Steam Company which was organized to construct and operate a central steam plant to service the University and other institutions in the Medical Center District, The University operates the plant and now supplies steam to the State Tuberculosis Hospital and the Veterans Administration Regional Hospital under agreements with the State Department of Public Health and the United States Veterans Administration, respectively, at rates fixed to cover the cost of producing the steam sold and the capital costs, amortized over a period of years, of distribution lines and facilities needed in the plant to produce and deliver additional steam required by these institutions. T h e addition of the steam load required by the new Psychiatric Hospital would require expansion of the steam plant at an estimated cost of $750,000 if the University were to stand committed to meet the presently fixed maximum steam demands of the Department of Public Health and the Veterans Administration, but an examination of their requirements has revealed that these maximum demands are in excess of potential needs. Hence it will be feasible to supply steam to the new Psychiatric Hospital and Training Center by reducing present commitments to the Department of Public Health and the Veterans Administration with respect to their maximum demands. Accordingly, the Business Manager of the Chicago Colleges, the Director of the Physical Plant, and the Comptroller recommend authorization of the following: Amendment of agreements with the State Department of Public Health and the United States Veterans Administration to provide for: Reductions in commitments by the University and the Medical Center Steam Company to furnish steam from 30,000 pounds per hour to 24,000 pounds per hour in the case of the State Tuberculosis Hospital and from 53,000 pounds per hour to 33,000 pounds in the case of the Veterans Administration Hospital. This will result in a credit of $95,904.74 to the Veterans Administration for capital charges over the remaining twenty-seven and one-half years of the amortization period. An agreement with the Department of Public Welfare whereby the University will contract to furnish steam to the Psychiatric Hospital as required up to a maximum demand of 26,000 pounds per hour and the Department will agree to pay the University for the cost of such steam plus $95,90474 for capital costs. The reductions in the commitments will offset the new load. A special amortization payment of $95,004.74 to the Medical Center Steam Company, the amount to be received by the University from the Department of Public Welfare. T h e University has the right to make such a special payment. This will result in a reduction in total interest costs and a consequent reduction in the cost of producing steam to all consumers of the plant. I concur and recommend that the Comptroller and the Secretary of the Board be authorized to execute the necessary documents.

On motion of Mr. Swain, these recommendations were approved and the Comptroller and the Secretary of the Board were authorized to execute the necessary documents.

SPECIAL APPROPRIATIONS FOR NONRECURRING EXPENDITURES (20) T h e Committee on Nonrecurring Appropriations recommends assignments of funds from the General Reserve as follows: 1. Animal Hospital, Chicago Professional Colleges, for rabies control program $ 8 000 2. Office of Admissions and Records, Chicago Undergraduate Division, to supplement appropriation for wages and expense for 1954-55 5 °°° 3. College of Agriculture: Agricultural Engineering, screens for windows and doors in research laboratory 95° Agricultural Engineering, painting of crop-drying laboratory 40° Animal Science, purchase of International truck 3 739 Food Technology, purchase of equipment 3 2^ Forestry, purchase of Willys station wagon 1 fe°