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FIGURE 1—OVERVIEW OF MWMC SDC METHODOLOGY <br /> Determine Capacity Needs <br />Existing DemandGrowth Demand <br />Existing FacilitiesNew facilities <br />Develop Cost Basis <br />Existing <br />. <br />Capacity ($) <br />New Capacity ($) <br />.Growth units (Avg. Flow, Peak Flow, BOD, TSS) <br />TOTAL SDCREIMB. FEEIMPROVEMENT FEE <br />Develop SDC Schedule <br />Average Flow (gal.)Peak Flow (gal.)BOD (lbs)TSS (lbs) <br />Calculate Offsets & Credits <br />Past paymentsFuture Payments <br />The reimbursement fee is based on the value of available capacity in the system that will <br />serve growth. The improvement fee is based on future facility costs associated with <br />providing growth’s additional capacity needs (above what is already available in the <br />system). Together, the reimbursement and improvement fees recover costs equal to <br />growth’s capacity needs. <br />Existing system available capacity and future improvement costs needed to expand capacity <br />for growth are distributed to capacity parameters (average flow, peak flow, biochemical <br />oxygen demand [BOD], and total suspended solids [TSS]), and spread over the total growth <br />units projected for the period to determine weighted average reimbursement and <br />improvement unit costs. The SDCs for individual developments are then determined by <br />applying the unit costs (by fee element and capacity parameter) to the individual <br />development estimated capacity requirements, and summing the results. The total SDC for <br />each development is then reduced by any applicable credits for past and future capital <br />payments. <br />Table 2 provides an example calculation for a single capacity parameter. The numbers <br />included in the table are intended to illustrate the methodology only (when applied to the <br />single capacity parameter of average flow); the numbers do not represent MWMC planning <br />criteria or cost data. Furthermore, the total SDC would include similar calculations for other <br />capacity parameters (i.e., peak flow, BOD, and TSS). In the example provided, total system <br />capacity needs at the end of the planning period are 60 million gallons per day (mgd). <br />Existing users are estimated to require 45 mgd (90 percent) of existing capacity, leaving <br />5 mgd (10 percent) available for growth. However, growth’s total needs are 15 mgd, <br />meaning that additional investment will be required to expand system capacity by 10 mgd. <br />Page 6 OF 39 <br /> <br /> <br /> <br />