My WebLink
|
Help
|
About
|
Sign Out
Home
Browse
Search
Item 4 - PH on MWMC Reg. SDCs
COE
>
City of Eugene
>
Council Agendas 2004
>
CCAgenda-06/14/04Mtg
>
Item 4 - PH on MWMC Reg. SDCs
Metadata
Thumbnails
Annotations
Entry Properties
Last modified
6/9/2010 1:10:03 PM
Creation date
6/10/2004 3:21:26 PM
Metadata
Fields
Template:
City Council
City_Council_Document_Type
Agenda Item Summary
CMO_Meeting_Date
6/14/2004
There are no annotations on this page.
Document management portal powered by Laserfiche WebLink 9 © 1998-2015
Laserfiche.
All rights reserved.
/
119
PDF
Print
Pages to print
Enter page numbers and/or page ranges separated by commas. For example, 1,3,5-12.
After downloading, print the document using a PDF reader (e.g. Adobe Reader).
View images
View plain text
SYSTEM DEVELOPMENT CHARGE METHODOLOGY <br /> <br />· Project Cost Allocation (Improvement Fee)--The method for allocating future projects <br /> to growth. <br /> <br />· Adjustments- Deductions or additions to the cost basis to recognize past or future <br /> capital funding methods. <br /> <br />Each issue is discussed below. <br /> <br />Step One - System Valuation <br />Calculation of the reimbursement fee begins with a review of MWMC's fixed asset records <br />to determine the value of the existing system. The system is valued based on the inflation <br />adjusted original cost approach. Under this approach, the original cost of existing system <br />assets is adjusted by the Engineering News-Record national 20-city average Construction Cost <br />Index from the time of construction to estimate current values. The inflation adjusted cost <br />approach recognizes appreciation in the system since assets were constructed and assumes <br />that the wastewater system is maintained in perpetuity. <br /> <br />Step Two. Existing System Allocation <br />The existing system allocation methodology, for use in determining the reimbursement fee <br />cost basis, is a three-step allocation process1 comprised of the following steps, as illustrated <br />in Figure 2: <br /> <br />R-1. Allocate existing facility costs to facility process components (e.g., primary treatment, <br /> secondary treatment). <br /> <br />R-2. Allocate costs by component to system capacity parameters (e.g., average flow, peak <br /> flow). <br /> <br />R-3. Allocate costs to growth based on estimated available capacity by service parameter. <br /> <br />The allocation of existing facility costs to facility process components is fairly straight- <br />forward, as most projects relate directly to an individual component (e.g., secondary <br />clarifiers are a part of secondary treatment); or support the entire treatment system (e.g., <br />control systems). Existing facility costs (valued in terms of inflation-adjusted costs) by <br />process component are then allocated to capacity parameters based on the allocation <br />fractions in Table 3. <br /> <br />The final step in the allocation process is to multiply the costs by capacity parameter by the <br />percent of capacity available by parameter. To determine the available capacity for a <br />parameter, the amount of capacity that is currently being used (or required for existing <br />users) is subtracted from the current rated capacity. If the current capacity requirement is <br />equal to or greater than the existing capacity, then there is no available capacity, and none of <br />the costs related to that parameter is included in the reimbursement fee cost basis. Table 4 <br />shows existing system available capacity by parameter based on system planning criteria. <br />The documentation for these figures is provided in Appendix C. <br /> <br />1 The numbering of the steps for the existing system allocation process is preceded by an "R" to identify these steps as relating <br />to the Reimbursement Fee calculation. Later processes relating to the Improvement Fee calculation are indicated by an "1" in <br />the number sequence. <br /> <br />SEA31003271388(DG). DOC/041040034 <br /> <br /> <br />
The URL can be used to link to this page
Your browser does not support the video tag.