Item A-MWMC Facilities Plan - Laserfiche WebLink

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MWMC FACILITIES PLAN 1. Monthly sewer user rates, which are the primary source of revenue for the RWP, are to be equitably allocated to all customers based on a cost of service assessment. 2. New customers to the RWP shall pay an SDC. The Commission shall maintain the SDC methodology within the constraints of state law. 3. Existing and new sewer customers shall equitably contribute to the cost of the RWP. To implement this policy, user rate and SDC methodologies will consider wastewater quantity, quality, and strength, consistent with state law. 4. MWMC rate structures shall be sufficient to fully fund reserves, comply with bond covenants, and cover the costs of constructing, operating, rehabilitating, maintaining, and improving the MW-MC assets. 5. The Commission will attempt to adopt user rates that provide multi-year stability. 6. Costs of existing and future capacity for new customers shall be recovered by SDCs that are based on the cost of existing and required new capacity. 7. Costs of services (direct and indirect) provided to any public or private organizations by the RWP shall be recovered through appropriate fees or charges. Asset Management - Asset management policies are intended to guide the Commission in protecting and safeguarding the investment in regional facilities and equipment. Capital assets shall be kept in sound working condition. Replacement, maintenance, and rehabilitation shall be provided for so that total system costs are minimized while reliable, high-quality service and high water quality standards are maintained. 1. MWMC assets shall be insured for replacement value so that, in the event of a loss, plant and equipment could be restored to working condition. 2. The Commission shall maintain a fully-funded Equipment Replacement Reserve so equipment can be replaced or rehabilitated when needed without creating volatility in the operating budget. 3. Equipment provided for by the Equipment Replacement Reserve shall include all rolling stock, all computer equipment, and all other equipment with a historical cost between $10,000 and $200,000, a projected replacement cost between $10,000 and $200,000, and with a useful life expectancy of between 1 and up to 20 years. 4. Major rehabilitation work shall be funded from the Capital Reserve and appropriated annually into a budget line item called Major Rehab. 5. The Major Rehab work shall be capitalized if it extends the useful life of the asset beyond the original estimate. If the Major Rehab work does not extend the life of the asset, but enables the asset to reach its originally estimated useful life, then it will be considered major maintenance work and not capitalized. 8-4 MWMC_8.0_REV5 DOC