Repository: UIHistories Project: Board of Trustees Minutes - 1950 [PAGE 892]

EXTRACTED TEXT FROM PAGE:

1949]

UNIVERSITY OF ILLINOIS

ARTICLE IV. RATES

883

(a) The Government agrees to pay the Contractor $1.32 for each 1,000 lbs. of steam based on an annual consumption of 74,000,000 lbs. furnished and will be increased or decreased as provided in this Article. In the event the consumption by the Government is less than 74,000,000 lbs. of steam, the Government will pay to the University of Illinois $0,205 per 1,000 lbs. for the difference between the actual consumption and the 74,000,000 lbs. In the event the annual consumption is greater than 74,000,000 lbs., the cost of steam will be reduced by $0,205 per 1,000 lbs. for all steam in excess of 74,000,000 lbs. (b) It is understood and agreed that the fixed charge of $0,205 represents Government's reimbursement to the Contractor for the construction of the necessary facilities for furnishing steam to the Government amortized over a period of 30 years, at the end of which time the fixed charge of $0,205 o r such amount in effect at that time will be discontinued and the rate for each i,000 pounds of steam shall be decreased accordingly. In the event the Contractor furnishes services to others and the outlay incurred by reason of furnishing facilities to supply steam to the Government is reduced below $455,000, or if savings in the amortization rate reduces said outlay below $455,000, or if any combination of the above factors produces such result, then the fixed charge of $0,205 will be decreased in proportion to the reduction below such amount. (c) If this contract is terminated by the Government prior to the end of the 30 year period the amount of the termination charge to be paid to the Contractor in lieu of the fixed charge shall be an amount mutually agreed upon by the Government and the Contractor at that time. (d) Said unit price of $1.32 for each 1,000 lbs. of steam furnished shall be increased or decreased by an amount equal to the net increase or decrease of the Contractor's cost for furnishing such steam resulting from the following: 1. Any increases or decreases in labor costs for the furnishing of such steam from the present labor cost. Present labor costs are those set forth in Schedule A annexed hereto. Labor costs shall include all allowances and benefits to the employees. 2. Any increases or decreases in cost of fuel for producing such steam from the present cost of such fuel. The present cost of such fuel so delivered is stated in Schedule A annexed hereto. Cost of fuel as used herein means its cost delivered at the steam plant of the Contractor. 3. An increase in the cost of furnishing such steam resulting from any applicable taxes hereafter imposed upon the contractor by Federal, State, or local governments. 4. An increase in the ccst to the Contractor for furnishing such steam caused by compliance by the Contractor with any and all future statutes, rules, or regulations of the Federal, State, or local governments which are applicable. (e) All such increases or decreases in cost shall be determined by ordinary accounting principles. Contractor agrees to maintain in accordance with usual accounting practice records of all such increases or decreases in such costs.

ARTICLE V. ADJUSTMENT OF RATE

On or before the first day of September in each year during the period of the contract, the Contractor shall furnish the Government with a statement of the adjustment of said cost of $1.32 per each 1,000 lbs. of steam by the formula contained in Article IV hereof, and at the same time will make available to the Government, at the place where such records are kept, for its review and audit the cost records of the Contractor in support of such statement of adjustment. The Government reserves the right to submit a claim for adjustment of such statement. The adjustment as shown by the statement, or in the event of the filing of any claim in the manner aforesaid, then any readjusted statement shall be settled as soon as possible by the Government. Any amount due the Government as a result of the adjustment will be deducted from subsequent voucher or vouchers submitted by the Contractor. Any amount due the Contractor as a result of the adjustment as shown by the statement will be paid by the Government, upon receipt of a properly prepared invoice from the Contractor.