UC Santa Barbara                                      Policy 1215
   Policies                                              
   Issuing Unit:  Academic Affairs                       Date: November 1, 1972
   
   
   
   
            ESTABLISHING CHARGES FOR LEARNING RESOURCES
                  AUDIO VISUAL EQUIPMENT USE AND
                              RENTAL
   
   I.   PURPOSE AND SCOPE:
   
        This procedure outlines the steps necessary to establish charges for
        Learning Resources Audio Visual equipment use and rental.
   
   II.  REFERENCES:
   
        None.
   
   III. PROCEDURE:
   
        The following formula will be used in determining rates for all such
        Learning Resources equipment. All rates will be reviewed and
        adjusted annually for salary and pricing changes.
   
        A.   Direct Costs:
   
             1.   From the current year's cost to the University, cost of
                  the same unit in 5 years is projected. Based on an average
                  cost increase per year of 5 to 7 percent, the total cost
                  of replacement is shown.
             
             2.   Average yearly maintenance costs of labor for 5 years.
             
             3.   Average yearly repair/parts costs for 5 years based on
                  past repair records.
             
             4.   Total of above costs.
             
             5.   Above total is divided by 5 to show cost per year.
             
             6.   Cost per year is divided by 180 days (i.e., the time
                  available to check out equipment -- three academic
                  quarters and one summer session).
             7.   Cost-per-day is doubled. Maintenance records show that
                  equipment wear increases by a factor of 3.5 to 4 when
                  checked out and operated by non-Learning Resources
                  employees. This increase in wear is averaged in with use
                  by student employees who are requested to operate the
                  equipment for oncampus seminars, convocations,
                  conferences, etc. (For purposes of uniformity, a day's use
                  shall consist of borrowing equipment and returning it at
                  any time during single day, or borrowing equipment on the
                  afternoon of one day and returning it during the morning
                  of the following day. Saturday and Sunday shall normally
                  be considered as a single day, such that equipment
                  borrowed on Friday afternoon and returned Monday morning
                  shall be charged as a two-day rental.)
             
             8.   Included in the rental charge is the cost of replacement
                  bulbs in equipment where such bulbs are used.
   
        B .  Indirect Costs:
   
             1.   A charge for administrative overhead will be assessed to
                  equipment users. This charge will be computed based on the
                  cost of office paperwork, office machine use, and the time
                  to complete entries and billings by office staff.
             
             2.   The user will be charged the average cost of time required
                  to train the user in the operation of the rental item.
                  Such cost is arrived at by determining the average of
                  employee wage-scales and the average number of minutes
                  required, based on past records.
   
        C.   Adjusted Costs:
             
             1.   Above costs are totaled as a cost-per-day rental of
                  equipment items.
             
             2.   Cost-per-day is projected to a cost-per-week by a factor
                  of five and adding indirect costs of one day.
             
             3.   Cost-per-month rates are determined in the same manner as
                  cost-per-week rates, except a factor of 20 is used as a
                  daily/month base.
             
             4.   In some cases where equipment is of a minimum cost ($50 to
                  $75 or less) a minimum charge of 50 cents per day will be
                  assessed.
             
             5.   Operator rates are computed on average salaries of all
                  Audio Visual Equipment and Scheduling staff personnel.
   



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Last Modified By: EBH, 7/09/98