Resolution No. 4875 - Laserfiche WebLink

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The example reimbursement fee cost basis includes 10 percent ($5 million) of existing system value, associated with providing 5 mgd of capacity. The improvement fee cost basis includes the costs to expand the facilities by 10 mgd, in this case estimated to be $12 million. The total costs .allocated to growth are equal to the total capacity required by growth (5 mgd existing +10 mgd expansion) = 15 mgd total. At this point the SDC schedule can be developed. First, the weighted average unit costs are developed. This is accomplished by dividing the reimbursement fee and improvement fee cost bases by the total growth capacity units '(15 mgd in this case). By dividing the individtlal fee elements by the total growth units, the combined fee is based on a weighted, average cost per unit. This is demonstrated in Table 2 where the individual unit costs are $333,000 per mgd ($5 million/15 mgd) and $800,000 permgd ($12 million/15 mgd), respectively, for reimbursement and improvement elements; and $1.1 million per mgd ($17 million/15 mgd) overall. The SDC for a user who requires 350 gallons per day (.000350 mgd) would equal $116.67 reimbursement ($333,333 X 0.000350) + $280 improvement ($800,000 X 0.00035) for a total of $396.67. The same fee would result from using the total cost per unit ($1.13 per gall?n per day) multiplied by the 350-gallon-per-day user requirements. As the example demonstrates, the methodology meets the key: requirements of the law, as identified in Table 1: . Determines the amount of available capacity that exists and allocates costs to growth accordingly. . Allocates improvement costs ~o growth in proportion to future capacity needs. . Does not recover the costs of the same capacity through the reimbursement and improvement fees. Recovers cost associated with existing capacity through the reimbursement fee, and recovers costs associated with new capacity through the improvement fee. The charges to individual developments are based on a weighted average eost of capacity. Each element of the methodology is discussed in more detail below. Methodology Element One: Determine Growth Capacity Needs The Oregon SOC law requires explicit analysis of capacity required to serve growth - and demonstration of how those capacity needs will be met through existing and future facilities. Therefore, it is necessary to first determine the appropriate capacity parameter(s), and growth's capacity requirements. Step QlJe · Capacity Parameters The appropriate capacity measure relates to the sizing criteria of the wastewater system, and may, to improve equity, require consideration of multiple parameters to assess the impact of the utility's various types of users. As wastewater systems must be sized to meet all of their customers' demands, flows and strength loadings are important sizing criteria. MWMC provides service to a diverse customer base, so consideration of varying flow and load requirements of different customer types is one facet that ensures the equity of the SDCs. The four capacity measures or parameters used in the methodology are: