Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 362]

EXTRACTED TEXT FROM PAGE:

1949]

UNIVERSITY OF ILLINOIS

359

pany's method of determining general tax accrual. Adjustments will be made for any variations from the estimates. d. Operating expenses: A direct charge for all operating and maintenance expenses other than for fuel and ash removal, plus a steam charge calculated by adding to the cost for fuel burned the net cost of ash disposal. e. Revenue tax charge: Any revenue taxes payable if such be assessed by the State or local governments. 7. The contract shall continue in force until such time as the Company's depreciation reserve for all facilities, other than facilities comprising working capital, becomes equal to the Company's investment in such facilities. Upon such termination the Company shall convey to the University all facilities and all inventories of operating and maintenance supplies provided the University pays the Company ( a ) all outstanding charges for steam service furnished including cost of discontinuing business with the Company, (b) the cost of the Company's inventories, (c) an amount equal to any redemption premium plus accrued interest the Company is required to pay on its indebtedness to others than Commonwealth Edison. The University, however, shall have the right to terminate the agreement at any time prior to its regular termination, on six months' written notice to the Company and on the purchase of the Company's equity in addition to the payment of costs previously specified. All obligations of the University shall be subject to constitutional and statutory limitations with respect to its expenditures. The draft of the contract which is being submitted herewith is in substantially complete form but is subject to minor changes. There is also submitted a draft of the contract for use in subcontracting with other institutions desiring to purchase steam service. I recommend approval of this program and the adoption of the attached resolution prepared by the Legal Counsel to authenticate this contract.

On motion of Mr. McLaughlin, this program was approved as recommended and the following resolution was adopted.

RESOLUTION"

Resolved, that the Board of Trustees of the University of Illinois hereby approve, in the form submitted to this meeting, the proposed agreement between Medical Center Steam Company, a corporation to be organized under the laws of Illinois, and this Board, providing for the construction by the Steam Company of a central steam plant and distribution system and the furnishing of steam service to the University, and through the University to other institutions located within the Medical Center District as defined in such agreement, all upon the terms and subject to the conditions set forth in such agreement; that upon the completion of the organization of the Steam Company the Comptroller and the Secretary of this Board be and they hereby are authorized, empowered, and directed, in the name and on behalf of this Board, to execute and deliver such agreement in the form submitted to this meeting or with such changes in such form, not of substance, as may be approved by such officers, their approval of any such changes to be conclusively evidenced by their execution and delivery of such agreement ; that upon the execution of such agreement by this Board and the Steam Company the proper officers or agents of this Board be and they hereby are authorized, empowered, and directed to do all such things as may be necessary to carry out and perform all of the obligations of this Board under such agreement; and that the Secretary of this Board be and he hereby is directed to file with the records of this meeting, properly identified, a copy of such agreement in the form submitted to this meeting, and also, if any changes shall be made in such agreement prior to the execution thereof, a copy of such agreement as executed and delivered by the parties thereto. PURCHASE OF PROPERTY AT ILLINOIS STREET AND MATHEWS AVENUE IN URBANA (2) The Committee on Special Appropriations and Nonrecurring Expenditures and the University Building Program Committee jointly recommend the purchase of the vacant lot at the southeast corner of the intersection of Illinois Street and Mathews Avenue in Urbana for the sum of $25,000. I concur in this recommendation. An appropriation of $25,000 will be necessary.