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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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<br />TABLE 5 <br />Summary of Project Type Allocation Criteria <br />Project Type Potential Criteria <br />Capacity Adds new facilities/expands existing facilities <br />Provides new liquids treatment or biosolids capacity beyond existing <br />system design standard or beyond the current permitted capacity <br />Performance Improvements Adds new facilities/improves existing facilities <br />Provides capacity/enhanced capability sized for total future capacity <br />needs <br />Driven by new regulatory requirement <br />Driven by increase in community performance standard <br />Technological efficiencies <br />Rehabilitation Replaces existing facility or portion of facility <br />Does not serve growth either through existing available or new <br />capacity <br />Preserves existing facility performance/capacity <br /> <br />Once project costs have been allocated to system component and project type categories, <br />and the costs have been distributed to the system capacity parameters, the final step in the <br />project cost allocation process is to assign costs to user types. For the purposes of the SDC <br />methodology, there are two user types: 1) existing customers, and 2) new customers or <br />growth. Costs that are allocated to growth are incorporated into the SDC improvement fee <br />calculation. Costs allocated to existing customers must be paid through some other funding <br />sources (e.g., existing reserves or future user rates). <br />As indicated in Figure 3, the allocation of project costs to growth is a function of the type of <br />project and a detailed capacity analysis that identifies growth’s share of: 1) planned capacity <br />expansion, and 2) total future load. <br />Costs by capacity parameter are allocated to growth as follows: <br />Capacity Projects: Growth’s share of capacity expansion (%) X project cost ($) <br />Performance Upgrades: Growth’s share of total future system capacity (%) X project cost ($) <br />Rehabilitation Projects: Allocation to growth = 0% <br />Where: <br />1.Growth’s share of capacity expansion = Projected growth capacity requirement (not met <br /> <br />by existing available capacity) divided by additional capacity to be added to the system <br />by planned improvements. <br />2.Growth’s share of total future system capacity = Projected growth capacity requirement <br /> <br />(total) divided by total future system capacity requirement. <br />Page 16 OF 39 <br /> <br /> <br /> <br />
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