Repository: UIHistories Project: Board of Trustees Minutes - 1956 [PAGE 849]

EXTRACTED TEXT FROM PAGE:

846

BOARD OF TRUSTEES

[October 18

I concur and recommend that the Comptroller and the Secretary of the Board be authorized to execute this contract.

On motion of Mr. Swain, this contract was awarded, and the Comptroller and Secretary of the Board were authorized to execute the same.

AGREEMENT BETWEEN T H E MEDICAL CENTER STEAM COMPANY A N D T H E CHICAGO LIGHTHOUSE FOR T H E BLIND FOR STEAM SERVICE (9) T h e Vice-President in charge of the Chicago Professional Colleges, the Comptroller, and the Director of the Physical Plant recommend authorization of an agreement between the University and the Chicago Lighthouse for the Blind hereinafter referred to as the Lighthouse, for steam service to be supplied by the Medical Center Steam Company to a building being constructed by the Lighthouse in the Medical Center District. The agreement will include the following provisions: { a ) T h e University will furnish steam to the Lighthouse with a maximum demand not exceeding four thousand pounds per hour at any hour. ( b ) The Lighthouse will pay the University $19,180, the calculated cost of the portion of capital facilities needed to produce steam to be furnished. This amount will be immediately paid by the University to the Medical Center Steam Company as a special amortization payment, thus reducing the outstanding indebtedness on the steam plant and interest costs. ( c ) T h e Lighthouse will be billed for steam furnished at a rate which will cover all wages and other expenses of the Steam Company applicable to the production of steam for the Lighthouse, plus a ten per cent charge of such costs to cover the University's overhead expenses. The Lighthouse will accept billings at the end of each month and pay them in full within twenty days. ( d ) The Lighthouse will purchase and install in its building steam flow and condensate meters of the type and size approved by the University. Title to the meters will be conveyed by the Lighthouse to the Medical Center Steam Company. ( e ) The Lighthouse will construct and pay for the steam distribution and condensate return system necessary to carry steam to its building in accordance with plans and specifications approved by the University. The system will connect with the facilities of the Medical Center Steam Company and shall be considered as extending to and including the first valve on the steam and condensate lines inside the Lighthouse building. The Lighthouse will convey without charge to the Medical Center Steam Company, through the University, title to the steam distribution and condensate return system not later than thirty days after completion of installation and testing of the system, and will provide an easement to the Company and the University granting access to the area under which the system is installed. ( f ) The University will be released from liability for any loss, damage, or injury caused by leakage escape or presence of steam vapor or water on the premises of the Lighthouse. Cg) T h e agreement will terminate on June 30 following its effective date, and will be renewable on a year-to-year basis at the end of each period unless written notice of intended termination is given by either party prior to January 1 of any annual period, ( h ) The agreement may not be assigned by the Lighthouse without written consent of the University. It is estimated that the Lighthouse will use approximately five million pounds of steam per year. The present cost of production of steam at the Medical Center Steam Company is $1.03 per thousand pounds, so that the estimated annual billings to the Lighthouse will be approximately $6,000 a year. At the present time, the steam plant has the capacity to furnish this amount of steam without additions to its facilities, and the sale of steam to the Lighthouse will probably result in a lowering of operating costs and a subsequent saving to all users of the plant. The estimated saving to the University as a result of this increased production of steam is approximately $1,500 a year.