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Unit <br />Methodology Element Three: Develop SDC Schedule <br />Unit costs for each capacity parameter are determined by dividing the adjusted cost basis by <br />the projected growth capacity requirements. The unit costs are then multiplied by the <br />estimated capacity requirements of different types of users, as determined from MWMC’s <br />Industrial Pretreatment Program. Figure 4 illustrates this process. <br />FIGURE 4—SDC SCHEDULE DEVELOPMENT <br /> <br />This approach uses flow and strength assumptions that are consistent with the system <br />capacity parameters described previously. For example, average flow is defined as dry <br />season maximum month flow. This capacity measure is used in estimating user capacity <br />Capacity <br />Unit Costs <br />Requirement / <br /> SDC / Unit <br />= <br />Avg. Flow Avg. Flow Avg. Flow <br />X <br />$/mgd mgd/unit $/unit <br />= <br />Peak Flow <br />X <br />Peak Flow Peak Flow <br />mgd/unit <br />$/mgd $/unit <br />BOD <br />X = <br />BOD $/lb BOD $/unit <br />lbs/unit <br />TSS <br />X = <br />TSS $/lb TSS $/unit <br />lbs/unit <br />requirements. The peak-to-average flow ratio reflects the system planning assumptions. The <br />flow assumptions for various land uses (development types) are presented in Appendix D. <br />If information for a particular development is not found in Appendix D, the SDC will be <br />formulated using average data of like or similar development as determined by the City <br />Engineer. Strength assumptions for different development types are estimated by MWMC’s <br />Industrial Pretreatment Program. <br />Methodology Element Four: Calculate Revenue Offsets and Credits <br />To comply with Oregon SDC law, the SDC methodology must ensure that future system users <br />contribute no more than an “equitable share” of the capital costs of existing facilities. Before <br />real property is developed, it may have been subject to taxes that supported capital funding of <br />some of the Regional Wastewater System. After a development connects to the system, it will <br />pay rates and, possibly taxes as well, that may also support some level of capital funding. The <br />SDC methodology therefore considers past and future payments to be made by new <br />developments, which may partially fund the same facilities for which the SDCs were paid. <br />Page 17 OF 39 <br /> <br /> <br /> <br />