Resolution No. 4875 - Laserfiche WebLink

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The reimbursement fee is based on the value of available capacity in the system that will serve growth. The improvement fee is based on future facility costs associated with providin.g growth's additional capacity needs (above what is already available in the system). Together, the reimbursement and improvement fees recover costs equal to growth's capacity needs. Existing system available capacity and future improvement costs needed to expand capacity for growth are distributed to capacity parameters (average flow"peak flow, biochemical oxygen demand [BOD], and total suspended solids [TSS]), and spread over the total growth units projected for the period to determine weighted average reimbursement and itrtprovement unit costs. The SDCs for individual developments are then determined by applying the unit costs (by fee element and capacity parameter) to the individual development estimated capacity requirements, and sununing the results. The total SDC for each development is then reduced by any applicable credits for past and future capital payments. Table 2 provides an example calculation fora single capacity parameter. The numbers included in the table are intended. to illustrate the methodology only (when applied to the single capacity parameter of average flow); the numbers do not represent MWMC planning criteria or cost data. Furthermore, the total SDC would include similar calculations for other capacity parameters, (i.e., peak flow, BOD, and TSS). In the example provided, total system capacity needs at the end of the planning period are 60 million gallons per day (mgd). Existing users are estimated to require 45 mgd (90 percent) of existing capacity, leaving 5 mgd. (10 percent) available for growth. However, growth's total needs are 15 mgd, meaning that additional, investment will be required to expand system capacity by 10 mgd. TABLE 2 Example Calculation forSingle (Average Flow) Capacity Parameter'" Determine Capacity Needs System wide CapaCity (mgd) Existing Users (mgd) Growth (mgd) 60 45 15 Existing Future System Expansion 50 10 45 0 5 10 10% 100% $50,000,000 $12,000,000 $5,000,000 $12,000,000 $333,333 $800,000 0.00035 0.00035 $116.67 $280.00 Element T atal Determine Cost Basis Needs System wide Cost Growth Cost $17,000,000 Determine SDC Schedule Weighted Average Unit Cost ($/mgd) User Capacity Requirement (mgd) Total SDC $1,133,333 0.00035 $396.67 *Example only; not MWMC specific