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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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Table 6 summarizes the growth allocation percentages by project type. The documentation <br />for these figures is provided in Appendix C. <br />TABLE 6 <br />Growth Allocation Percentages by Project Type <br />Project Type Average Flow Peak Flow BOD TSS <br />Capacity (growth’s share of capacity 100% 29.4% 100% 100% <br />expansion) <br />Performance (growths share of total 26.1% 10.8% 25.9% 26.1% <br />future system capacity) <br />Rehabilitation 0% 0% 0% 0% <br />Source: 2004 Facilities Plan <br />Step Four - Adjustments <br />The methodology includes the following adjustments to the reimbursement and <br />improvement fee cost bases: <br />? <br />. Existing (and if <br />Gifts or grants from federal or state government or private persons <br /> <br />applicable in the future, planned) asset costs are reduced by the percent of the asset that <br />is funded by grants. <br />? <br />. Projected <br />Ratemaking principles employed to finance the capital improvements <br /> <br />capital financing costs are added to the project costs if the project is funded through debt <br />proceeds. Future years’ interest expense is discounted to present value using a 5% <br />discount rate. <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 />Page 17 OF 39 <br /> <br /> <br /> <br />
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