Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 361]

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358

BOARD OF TRUSTEES

[May 21

CONTRACT FOR SMALL HOMES COUNCIL HOUSING RESEARCH PROJECT

The Secretary reported for record an action of the Executive Committee on May ij, 1949, awarding the contract for general work on the Small Homes Council Housing Research Project at Florida Avenue and Race Street to the Kuhne-Simmons Company, the lowest bidder, on the basis of the acceptance of Alternates 1, 2, and 6 in the bid schedule, providing for deductions totaling $9,330, reducing the contract from $406,000 to $396,670. The Executive Committee also authorized further contract changes reducing construction costs by approximately $4,000. The date for completion of the general work is October 15, 1949MATTERS PRESENTED BY PRESIDENT STODDARD

The Board considered the following recommendations of the President of the University.

STEAM HEATING PLANT FOR CHICAGO PROFESSIONAL COLLEGES (1) The building program requested by the University for 1949-1951 included $26,210,000 for the Chicago Professional Colleges of which $6400,000 was for a steam generating plant and for additions to the utilities distribution system. The revised program based on the Governor's recommendation in his budget message to the 66th General Assembly totals $21,000,000 of which $15,400,000 is for the Chicago Professional Colleges, including $1,500,000 for a steam generating plant and additions to the utilities distribution system. This is not enough for a new plant which is needed to service the present buildings plus those to be constructed in 1940-1051. University officials have been carrying on negotiations with the Commonwealth Edison Company of Chicago to enlist its aid in providing this steam service. Commonwealth Edison has offered to do this and has prepared a contract the principal provisions of which are: 1. A new corporation to be called "The Medical Center Steam Company" is to be organized to provide central steam service to the University and to other institutions in the Medical Center District. 2. The contract will be between the Company and the University of Illinois; the University will make such subcontracts with other users as may be feasible and desirable. 3. The Company will construct the plant and distribution system according to plans and specifications approved by the University. All additions thereto will also be subject to University approval. The maximum investment, without further mutual consent, is to be $10,000,000. 4. The construction of the plant will be financed to the fullest extent possible by a direct outside loan. (An insurance company has tentatively offered to finance 80 per cent of the investment at 3 % per cent interest.) Commonwealth Edison Company will provide the remainder of the funds needed. 5. The operations of the Medical Center Steam Company will be conducted by the Commonwealth Edison Company on a nonprofit basis. Commonwealth Edison will be reimbursed for management services not to exceed $1,000 a month, plus indirect costs relating to such services. The University will participate in establishing operating policies. 6. Steam service rates will be based on the following costs and charges a month: a. Interest: On the outside loan an amount sufficient to cover the interest payable; on funds supplied by Commonwealth Edison, 5 per cent plus income tax estimated at 3.06 per cent. These charges are to be based on current "depreciated investment" calculated monthly. b. Depreciation charge: At 3 per cent per annum on the original cost of facilities until such facilities are completely amortized. c. A general tax charge computed by deducting from the Company's charges for all taxes, any amount included for revenue taxes, in accordance with the Com-