Resolution No. 4900 - Laserfiche WebLink

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TABLE 2 Example Calculation for Single (Average Flow) Capacity Parameter* Element Total Existing System Future Expansion *Example only; not MWMC specific The example reimb~sement 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 mgdtotal. At this point the SDC schedule can be developed. First, the weighted average unit costs are developed. This is accomplished by dividing the reimburs~ment fee and improvement fee cost bases by the total growth capacity units (15 mgd in this case). By dividing the individual 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 per mgd ($12 million/15mgd), 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 totcl1 of $396.67. The same fee would result from using the total cC?st per unit ($1.13 per gallon per day) multiplied by the 350-galIon-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 to 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 cost of capacity. Each element of the methodology is discussed in more detail below. Methodology Element One: Determine Growth Capacity Needs The Oregon SDC 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.