Resolution No. 4740 - Laserfiche WebLink

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existing system is available to meet the demands of new customers. Therefore, the value of available (or growth-related) capacity in the existing system is $45.3 million (net of grants). Improvement Fee Calculation of the improvement fee begins with a review of the utility's wastewater master plan to determine which, or what portion of, improvements are needed to provide capacity for new development. System capacity may be expanded through the upgrade of existing facilities or the construction of new facilities. The costs of the capacity-increasing improvements are projected based on standard cost-estimating techniques. The planned capacity-increasing improvements are projected to total $8.6 million (in 1998 dollars). These improvement costs are also net of assessments. Combined, the reimbursement fee cost basis and the improvement fee cost basis represent the value of growth-related capacity, which is $53.9 million. 1.1.2 Step 2 - Define System Capacity As mentioned previously, the total growth-related capacity includes available capacity in the existing system, and future capacity added by planned system improvements. Wastewater system capacity is measured in terms of the amount of flow that can be collected. Flow is measured in millions of gallons per day (mgd). The City's Wastewater Master Plan identifies build-out capacity as 48.9 mgd. In order to reach that capacity, the City must construct an additional $8.6 million of improvements. Assuming that the unit cost of existing and future capacity is the same (in terms of replacement value), then the existing capacity of the system can be estimated as 44.5 mgd (in proportion to the system value that has been constructed.) The available capacity of 23.1 mgd (52%)) is simply the difference between the estimated existing capacity and existing flows. The additional capacity added by the improvements is estimated to be 4.4 mgd (the difference between build-out capacity and existing capacity.) Therefore, the total growth-related capacity is 27.5 mgd. 1.1.3 Step 3 - Calculate Unit Cost of Growth-Related Capacity (in 1998 dollars -- see current values in Table 6) The unit cost of growth-related capacity is determined by dividing the growth- related costs identified in Step 1, by the growth-related capacity defined in Step 2. The unit cost is stated in terms of dollars per mgd. The total growth-related costs are $53.9 and the growth-related capacity is 27.5 mgd. Therefore, the unit cost of growth-related capacity is approximately $2 million per mgd. 1.1.4 Step 4 - Develop SDC Rate Schedule The SDC rate schedule uses scaling measures that are designed with the intent that customers who are larger, or use infrastructure systems more intensively, pay City of Eugene SDC Methodology Wastewater, Page C- 2