Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 526]

EXTRACTED TEXT FROM PAGE:

1949]

UNIVERSITY OF ILLINOIS

517

SECTION 2.03. The Company shall have the right, if necessitated by operating emergency, to make replacements of and additions to its facilities after consultation with the University but without prior approval of the plans and specifications therefor by the University, provided that the Company shall not expend under the provisions of this Section 2.03 more than $50,000 in any calendar year. SECTION 2.04. If, at any time, the Company is of the opinion that an addition to or replacement of any of its facilities is necessary to the safe operation of such facilities, and if the University fails within a period of 60 days to approve plans and specifications for such work, the Company shall have the right to refer the matter to arbitration as hereinafter provided. SECTION 2.05. The University shall at all times have designated a qualified person to act for it, with full power to sign requests, approvals, consents, designations and other authorizations hereunder, and to receive notices, requests, demands or other communications hereunder.

ARTICLE I I I . STEAM SERVICE

SECTION 3.01. The Company shall furnish steam service and the University shall take and pay for such service upon the terms and conditions hereof. SECTION 3.02. The University shall have the right to furnish steam contracted for herein by the University and not required by it for its own use, to any governmental agency, charitable institution or other institution located in the Medical Center District upon such terms and conditions as may be agreed upon by contract between the University and such governmental agency, charitable institution or other institution. SECTION 3.03. The Company shall furnish the University, and any governmental agency, charitable institution or other institution located in the Medical Center District having a contract with the University pursuant to Section 3.02, such amount of steam service as the University shall request from time to time subject only to the limitation that, if at any time the service requested to be furnished from any facility exceeds the capacity of such facility, the service from such facility shall be limited as directed by the University.

ARTICLE IV. T H E COMPANY'S INVESTMENT

SECTION 4.01. The Company's "investment" in facilities, other than facilities comprising working capital, for any month shall mean the cost of such facilities, including carrying charges during construction as hereinafter provided. The Company's "investment" in working capital for any month shall mean ( a ) the cost of the Company's inventory of operating and maintenance materials and supplies and fuel, plus (b) an allowance for cash working funds in the amount of 2% of the Company's investment in all facilities other than working capital. SECTION 4.02. The Company's "amortization reserve" for facilities shall mean the amortization charged with respect to such facilities after deducting retirements and adding net salvage. SECTION 4.03. The Company's "unamortized investment" in facilities shall mean the Company's investment in such facilities after deducting the Company's "amortization reserve" with respect thereto. Any contributions received by the Company in aid of construction shall also be deducted in determining the Company's unamortized investment in facilities. The University shall have the right to make such contributions at any time before, during or after construction.

ARTICLE V. T H E COMPANY'S CHARGES

SECTION 5.01. For each month the Company shall be entitled to an investment charge comprising the sum of the amounts calculated as follows: ( a ) From the total of the Company's unamortized investment as of the beginning of such month in all facilities there shall be deducted the weighted average principal amount of the Company's indebtedness to others than Commonwealth Edison Company, and the remainder shall be multiplied by one-twelfth of 5 % ; provided, however, that for months prior to the month of July, 1951 such remainder shall be deemed to be the weighted average principal amount of the Company's indebtedness to Commonwealth Edison Company;