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Item 2C: Adoption of Resolution Amending MWMC Regional Wastewater SDC Methodology
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Item 2C: Adoption of Resolution Amending MWMC Regional Wastewater SDC Methodology
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6/9/2010 12:32:03 PM
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11/20/2009 10:33:55 AM
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Agenda Item Summary
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11/23/2009
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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 process 1 comprised of the following steps, as illustrated <br />in Figure 2: <br />R-1.Allocate existing facility costs to facility process components (e.g., primary treatment, <br /> <br />secondary treatment). <br />R-2.Allocate costs by component to system capacity parameters (e.g., average flow, peak <br /> <br />flow). <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 />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 /> <br />1 <br /> The numbering of the steps for the existing system allocation process is preceded by an “R” to identify these steps as relating <br /> <br />to the Reimbursement Fee calculation.Later processes relating to the Improvement Fee calculation are indicated by an “I” in <br /> <br />the number sequence. <br />Page 12 OF 39 <br /> <br /> <br /> <br />
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