Item 4 - PH on MWMC Reg. SDCs - Laserfiche WebLink

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The improvement unit costs (as adjusted for anticipated financing costs and shown in bold in Table 3) are used on line 4 of Table 1. Financing costs are estimated based on the 20-year project list, adjusted for inflation. Projected growth-related capital project costs in excess of available revenues (i.e., improvement fees, interest earnings and existing fund balances) are assumed to be financed with interest accruing at a rate of 5 percent. When financing costs are included, the improvement fee unit costs increase about 10.7 percent, as shown in Table 3. The unit costs shown in Table 2 and 3 are the result of a comprehensive analysis that determines: 1) growth's capacity needs, and 2) existing and future facility costs needed to meet those needs (i.e., development of the SDC 'Cost Basis'). An example of this analysis is illustrated in the proposed SDC Methodology within Table 2 included in Exhibit A to Attachment A of the AIS for the City Council work session of May 19, 2004 (Agenda page 73). The specific analysis related to these methodological elements used in deriving the proposed SDC rates is summarized below. Determine Growth Capacity Needs In order to determine growth-related capacity needs, and how these will be met, Table 4 of this memorandum presents a summary of existing and future improvements capacity. The table shows the capacity requirements of existing users and users associated with new development (growth), along with the percentage of the existing system capacity available to future users and the percentage of the future-improvements capacity that will be associated with growth. The derivation of these numbers is described in detail in the SDC Methodology Appendix C (and summarized in Table C-l). The numbers in bold in Table 4 are used in Tables 2 and 3 to determine the unit costs of capacity. The italicized numbers in Table 4 form the basis for allocation of existing and future facility costs to growth to develop the cost basis (described below). Table 4 Summary of Growth Capacity Needs by Parameter Element (a) (b) (c) Total Future Existing System Future Improvements Avera~le Flow Systemwide Capacity (mgd) 59.3 49.0 10.3 Existing Users (mgd) 43.8 43.8 0.0 Growth (m~ld) 15.5 5.2 10.3 Growth's Capacity Share 26% 10.5% 100% Peak Flow Systemwide Capacity (mgd) 277 175 102 Existing Users (mgd) 264 175 89 Growth (m~ld) 30 0 30 Growth's Capacity Share 11% 0.0% 29% BCD Systemwide Capacity (mgd) 74,000 66,000 8,000 Existing Users (mgd) 54,800 54,800 Growth (mod) 19,200 11,200 8,000 Growth's Capacity Share 26% 17. 0% 100% TSS Systemwide Capacity (mgd) 87,600 71,600 16,000 Existing Users (mgd) 64,700 64,700 Growth (m~ld) 22,900 6,900 16,000 Growth's Capacity Share 26% 9.6% 100%