ML20040D849

Forwards Cost schedules,1980-81 Cost Statement & Summary Incidental Costs Off Operations & Financial History,In Response to NRC 811002 Ltr

ML20040D849
Person / Time
Site:	05000142
Issue date:	01/25/1982
From:	Rebok D CALIFORNIA, UNIV. OF, LOS ANGELES, CA
To:	John Miller Office of Nuclear Reactor Regulation
References
NUDOCS 8202020314
Download: ML20040D849 (7)

Text

1 UNIVERSITY OF CALIFORNIA, LOS ANGELES l di'-

0 _ _ _ _

BEREELEY

• DAVIS

• IRVINE

• IDS ANCELES

• RIVER $1DE

• SAN DIECO

• SAN FRANCISCO .

SANTA BARBARA

• SANTA CRUZ 1/

FINANCE OFFICE IDS ANGELES, CALIFORNIA 90024 IN REPLY REFER To January 25, 1982 ocRFr % < . _.

7*,

m Mr. James R. Milltr, Chief Standardization and Special 9 g Projects Branch RECEIVED Division of Licensing United States Nuclear Regulatory  ;

c FEB1 1982 > 2 Commission - n reu n2rm evnet*

Washington, D.C. 20555

{ N7"

Dear Mr. Miller:

g p ut In your letter of October 2, 1981, addressed to Dr. Walter Weg , )irector of the UCLA Office of Environmental Health and Safety, you requested a cost accounting of UCLA research reactor operations. Although the Univer-sity does not account for the costs of Nuclear Energy Laboratory (NEL) operations on the basis of the various categories of NEL users, as suggested in your letter, the cost schedules attached hereto and explained below should assist your staff in determining the appropriate class of license for the UCLA facility.

With reference to the stipulation contained in 10 CFR 50.22 which was cited in your letter, the University can state that it devotes the-costs associated with UCLA research reactor operations to support the educational and research programs of the School of Engineering and Applied Science (SEAS),

other campus departments, and other educational and research' institutions.

Academic users-~from departments outside the SEAS and from other academic institutions are charged a fee for the services provided which covers the-costs to the SEAS of operating the reactor for these users. The UCIA class use of the reactor is depicted in Attachment A, which was prepared by the NEL; the research uses have been various and have not been systematically recorded.

Reactor services are also made available to non-academic (or " commercial")

users on a fee basis to the extent such use does not interfere with the academic uses of the facility. The incidental costs of operation associated with the non-academic uses of the reactor are small. The remaining more or less fixed costs of operations represent the costs of staf fing and maintaining the NEL to support the various education and research programs.

These costs would be incurred whether or not the faci ity provided services g I' /

/ I 8202020314 820125 PDR ADOCK 05000009 1 PDR

Mr. Miller January 25, 1982 page 2 to non-acad mic users. The non-academic incidental costs represent the only ' costs which could be , avoided if the provision of reactor ' services to non-academic users were discontinued. The total:of the incidental

, costs associated with non-academic use of the reactor, estimated . con-servatively, has been less than 2 percent of total facility direct costs for each year of reactor operation. Regardless of whether the incidental costs associated with the non-academic use cf the reactor are properly assumed to be costs " devoted to . . . the sale of services, other than

research and development or education or training," these costs are much less than "50 percent of the costs of owning and operating" the reactor facility.

1980-81 Financial Cost Statement The Financial Cost Statement (Attachment B) shows total reactor operating costs for fiscal year 1980-81 as . derived from NEL operating costs. NEL costs unrelated to reactor operations are excluded. Salary costs for the health physicist assigned to NEL to monitor reactor activities and overhead costs figured at the applicable federal indirect cost rate are added.

4 Incidental Costs of Operations The Incidental Costs of Operations (Attachment C), which was prepared by the NEL based on reactor operating experience during the 1980-81 fiscal year, provides an estimate of the total incidental costs of operation per reactor operating hour for non-academic users of the facility. As noted by the NEL, the hourly cost of operations is based on actual reactor operating hours and not on " port-hours" of use, which is the unit employed

-to report usage of the reactor by the various user categories.

The incidental costs related to non-academic use of the reactor consist of the following: utility charges (water and electricity used in operating the reactor); part-time student reactor operator salary charges (additional hours of salary are charged for the additional hours student operators run the reactor for non-academic users); and charges for the small amount of supplies consumed by non-academic users. Utility charges appear as part of the overhead or indirect costs of operations. The part-time student salary charges, a portion of the general assistance category of expense, and supplies expense appear as direct costs of operations.

The incidental costs of operations associated with the non-academic uses of the reactor, consisting of the component costs of utilities, part-time

, salaries and supplies, represent all the citegories of expense which could be avoided if non-academic uses of the reactor had not occurred.

The remaining items of expense identified in the Financial Cost Statement represent the costs of maintaining the facility and supporting the educa-tional and research programs of the SEAS, other UCLA departments, and other institutions.

o Mr. Miller January 25, 1982' page 3' NEL Ten-Year Financial History The NEL Ten-Year Financial History (Attachment D) shows that the incidental costs of non-academic use are relatively small and fluctuate independently of the basic costs of maintaining the NEL in support of the academic programs.

Throughout this ten-year period, for example, the NEL was staffed at the same level of.six career employees and, except-for the expected yearly-increases in salary of varying amounts, the major salary and employee benefits costs have reamined relatively constant. That is, ' the yearly adjustments that did occur in salaries and benefits bear no relation to the changes that occurred in the level of non-academic use of the reactor.

The Ten-Year Financial History includes'an estimate by year of the total incidental costs associated with non-academic use of the reactor. The cost estimate is based on NEL estimates of the per opercting_ hour rate and the number of actual operating hours that corresponds to the reported

" port-hours" of usage. The_non-academic, costs, which are less than 2 percent of the total direct cost for each year, represent the costs associated with the non-academic uses of the reactor. These non-academic costs are the only costs which would be " saved" if non-academic use of the reactor was discontinued. The other costs of NEL operations would not be affected by the discontinuation of non-academic uses since these costs are incurred in any case in maintaining the facility in support of the academic programs.

We hope that this information is satisfactory and will provide the necessary data for your analysis. Please do not hesitate to contact us'if we can be of further assistance.

Sincerely, D. C. Rebok L

Assistant Vice Chancellor - Finance Attachments cc: Director Walter F. Wegst i

Attachment "A" UCLA NUCLEAR ENERGY LABORATORY Table of Class Use of UCLA Reactor 1981 - 1982 Academic Year USE --* "a "

a = z a "U a .3 m E Em UE mum EUm wEm a um EE

• I f .0 58 255 3*G EEG ,G $5 2# 53 UE Sm NO3 EN) D) DD S) Us S5 Cl.A55 Es  : WWE 551 5"i E" Ci 8%  ?

E R 29 40 2 8 9 2 320 1 320 SL 8 9 30 END 28 200 2 5 0 12 40 1 200 135 F (100N A

4 25 1 12 7 20 500 3 1m g g 4 16 1 7 2 10 160 d 160 E S5 288 g

4 6 1 32 15 48 288 1 A

~

g g7 4 10 3 0 27 30 300 1 300 TOTAL: ANNUAL $TUDEN1 HOUR 5 OF REACTOR DEPENDINT INSTRUCT!ON 3328 1CLA55ES LISTED ARE THOSE WHICH USE THE REACTOR FOR THE INSTRUCTION OF UCLA STUDENTS IN TT SCHOOL OF ENGINEERING, AND THE DEPARTMENTS OP CHEMISTRY, EARTH AND SPACE SCIENCE, AND PHYSICS IN REACTOR CHARACTERISTICS, SOTH FUNDAMENTAL AND OPERATIONAL, ACTIVATION ANALYS15, AND REACTOR OPERATIONS. THE TABLE DOES NOT INCLUDE CLASSES FROH OTHER COLLEGES AND UNIVERSITIES wHICH USE THE REACTOR. STUDENT ENROLLMENT IN THESE COURSES AND THE SPECIFIC COURSE CONTENT VARIES FROM ACADEMIC QUARTER TO ACADEMIC QUARTER.

THE T AOUL ATED ENTRIES REPRESENT THE CURRENT TYPICAL USAGE A5 ESTIMATED BY THE COURSE INSTRUCTOR 5.

2 RJACTOR ACADEMIC HOUR $ - INCLUDES OPERATING HOURS "AT-POWER" AS REPORTED ANNUALLY TO THE NRC A5 WELL A5 "NON power" HOURS SUCH AS THE " APPROACH-TO-CRITICAL" EXPERIMENT IN ENGR 135 AL AND THE PRE-START CHECK-OFF IN THE OPERATOR TRAIN!NG COURSE ENGR 135 F.

I LABORATORY ANALYSIS HOURS - RECOGNIZE 5 THE USE OF THE REACTOR IN THE PRODUCTION OF VARIOUS RADIDACTIVE MATERIALS OR SUBSTANCES WHICH SUBSEQUENTLY ARE SUBJECTED TO LASCRATORY ANALYS15 SY STUDENTS, FOR EXANPLE, TO PRODUCE MATERIALS USED IN GAMMA RAY SPECTROSCOPY.

kABOaATORY LECTURE AND PREPARATION HOURS - RECOGNIZE 5 THE STUDENT INSTRUCTION THAT OCCUR $ IN CONNECTION WITH THE OPERATION OF THE REACTOR IN REACTOR PHYSICS AND OPERATIONS, REACTOR INSTRUMENTATION, EXPERIMENTAL PROCEDURES AND TECHNIQUES, MEASUREMENT TECHN! QUES, AND HETHOD5 OF DATA REDUCTION.

S INCLUDES APPROXIMATELY 100 ADDITIONAL TRAINING HOURS REQUIRED FOR OPERATOR LICENSING, THE TRAINING TAKlHG PLACE CONCURRENTLY WITH OTHER REACTOR OPERATIONS.

6 GENERALLY Two COURSE 5 wlTH DIFFERENT COURSE CONTENT BUT WITH THE SAME COURSE NUMBER ARE OFFERED ANNUALLY, ONLY ONE OF WHICH REQUIRES THE USE OF THE REACTOR.

Prepared by UCLA NUCLEAR ENERGY LABORATORY

Attachment "B" UCLA NUCLEAR ENERGY LABORATORY 1980-81 Financial Cost Statement Total Non-Reactor Net NEL Costs (2) Reactor Budget (1) Costs Salaries - Permanent Staf f of 6 FTE $163,531 $49,805 $113,726 Salaries - General Assistance (3) 38,265 38,265 Employee Benefits 34,288 10,459 23,829 Supplies: $43,406; Equipment: $3,641; Travel: $712 47,759 47,759 Total Direct Costs $283,843 (6) $60,264 $223,579 Additional expense not reflected in above totals:

llealth Physicist - Salary (4) 28,000 28,000 llealth Physicist - Employee Bene' ts 7,266 7,266 Total Expense $319,109 $60,264 $258,845 Indirect Costs @ 31% MTDC (5) 97,795 18,682 79,113 Total NEL Costs $416.904 $78.946 Total Reactor Operating Costs $337,958 Notes:

1. Does not include extraordinary items such as relicensing costs, which are as yet unascertained.

2. Pecharges for staff time representing technical assistance provided by the NEL staf f to various contract and grant projects unrelated to recctor operations.

3. Includes a secretary at 50 percent time and charges for part-time student reactor operators.

4. The llealth Physicist is assigned to NEL but budgeted from the Office of Research and Occupational Safety.

5. The standard indirect cost rate negotiated by the University with the federal government for on-campus research as a percent of modified total direct costs (MTDC), which are direct costs less equipment costs.

6. Corresponds to fiscal year 80 Total Direct Costs (Attachment "D").

i l

prepared by UCLA Finance Office

• Attachment "C" UCLA Nuclear Energy Laboratory Incidental Costs of Operations 1980-81 Fiscal Year - Approximated The calculations below are based on the following approximations of 1980-81 fiscal year operating-experience:

1. Each reactor operating run or session lasts 2.7 hours8.101852e-5 days <br />0.00194 hours <br />1.157407e-5 weeks <br />2.6635e-6 months <br />,

2. 136-runs or sessions occur during the year, and

3. 370 operating hours are accumulated during the year.*

WATER COSTS: Water flows through the reactor at the rate of 180 cubic feet per hour for the duration of the operating run plus an estimated 1.5 hours after the run terminates. The applicable water rate is $0.87/100 cubic feet. Accordingly, 180 CF (2.7 + 1.5) runn

" '*'ing hr. $0.87 X X = approx. $2.50 per oper.h.

Water 2.7 operating hour 100 CF Running hr.

ELECTRICAL COSTS: The shield tank pumn console and florescent lights operate essentially all the time and these costs are allocated to actual operating hours. The reactor room lights and primary pump are assumed to operate only when the reactor is running.

The applicable electrical rate is $0.65/KW-hour. Accordingly, Power Ilrs/Run Rune /Yr Hrs /Yr KW-hrs /yr-Reactor Room Lights 7.5 5.0 136 680 5,100 Primary Pump 1.0 4.2 136 .571.2 571 Shield Tank Pump 0.5 --- ---

8,760 4,380

. Console 0.5 --- --- 8,760 4,380 Florescent Lights 0.5 --- ---

2,920 1,460 KW-hrs / year 15,891

$0.065 15,891 KW-brs -l year = approx. $3.00 per oper.h.

X X KW-hrs year 370 operating hrs

~

STUDENT OPERATOR SALARY COSTS: One student operator operates the console controls for the 2.7 hours8.101852e-5 days <br />0.00194 hours <br />1.157407e-5 weeks <br />2.6635e-6 months <br /> run time plus 0.5 hours5.787037e-5 days <br />0.00139 hours <br />8.267196e-6 weeks <br />1.9025e-6 months <br /> at start-up and shutdown. The average wage for student reactor operators is $5.50 per hour. Accordingly, (2.7 + 0.5) console hours y $5.50/hr. = approx. $6.50 per oper.h.

2. 7 operating hours console hour SUPPLIES COSTS: Supplies expense is estimated at less than $200 for the 200 actual operating hours (approximated) of non-academic use. Accordingly,

$200 Total Supplies h.

= approx. $1.00 per oper.

200 operating hrs Total =

approx. (13.00 per oper. h.

Note:

• One reactor operatirghour can represent one, two or three " port-hours" of use depending on the number of sample ports that are being used at the time.

prepared by UCLA Nuclear Energy Laboratory _

. Attachment "b" .

UCLA NUCLEAR ENERGY LABORATORY Ten Year Financial History Fiscal Full-Time Staff Part-Time Staff Supplies, Total Non-Academic Year Staff Salaries Salaries Benefits Equipment, Direct' Cost Travel Costs 71-72 [6] $ 64,386 $ $ $ 7,749 $ 72,135 $ 72-73 [6]- 73,127 7,806 5,762 86,695 73-74 [6] 78,564 1,153 7,841 87,558 74-75 [6] 86,347 9,763 4,526 100,636 75-76 6 76,311 7,839 11,495 6,304 101,949 '

76-77 6 104,448 6,889 18,561 21,310 151,208 77-78 6 115,299 29,483 23,654 40,635 209,071 1,2-35 78-79 6 121,244 7,577 24,342 34,040 187,203 3.432 79-80 6 193,129 31,382 30,257 49,605 254,373 4,680 Pa-81 6 163,531 38,265 34,288 47,759 283,843* 2,743

. Columns:

1. UCLA operates on a fiscal year, July through June,

2. According to information provided by NEL, NEL has operated with 6 career staf f throughout t h-period of the summary; however, documents confirming the staffing for years prior to 1975 have not been retained.

3. Staff Salaries relate to salaries supporting the regelar full time NEL Facility staff.

4. Part-time salaries show student operator, secretarial, and other miscellaneous part-time assistance.

5. Staff Benefits include retirement and insurance for staff employees.

6, Supplies, Equipment and Travel show other costs not related to salaries.

7. Total Diract Costs represent the operation's costs: salaries, benefits, supplies, etc.

8. Estimated cost of non-academic use of the reactor based on " port-hours" of usage as reported by the NEL for calendar years unadjusted for fiscal years and the rate of $13 per actual operating hour as approximated by the NEL. Use of " port-hours" instead of operating hours overstates the costs of non-academic use. Reported " port-hours" for non-academic users are as follows:

Calendar 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 Ye r Port firs. 2 1 0 1 1 5 95 264 360 211 i

Notes:

• Corr.csponds to NEL 1980-81 Total Direct Costs (Attachment "B").

** Total Costs less than $100 per year are reported as no cost.

prepared by UCLA Finance Office