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l Improvement Fee <br /> Calculation of the improvement fee begins with a review of the utility's <br /> wastewater master plan to determine which, or what portion of, improvements <br /> are needed to provide capacity for new development. System capacity may be <br /> .expanded through the upgrade of existing facilities or the construction of new <br /> facilities. The costs of the capacity-increasing improvements are projected <br /> based on standard cost-estimating techniques. The planned capacity-increasing <br /> ~ ~ ~ improvements are projected to total $8.6 million (in 1998 dollars). These <br /> improvement costs are also net of assessments. <br /> Combined, the reimbursement fee cost basis and the improvement fee cost <br /> ~ basis represent the value of growth-related capacity, which is $53.9 million. <br /> 1.1.2 Step 2 -Define System Capacity <br /> As mentioned previously, the total growth-related capacity includes available <br /> capacity in the existing system, and future capacity added by planned system <br /> improvements. Wastewater system capacity is measured in terms of the amount <br /> of flow that can be collected. Flow is measured in millions of gallons per day <br /> (m9d)• <br /> The City's Wastewater Master Plan identifies build-out capacity as 48.9 mgd. In <br /> order to reach that capacity, the City must construct an additional $8.6 million of <br /> improvements. Assuming that the unit cost of existing and future capacity is the <br /> same (in terms of replacement value), then the existing capacity of the system <br /> <br /> fir„ can be estimated as 44.5 mgd (in proportion to the system value that has been <br /> constructed.) The available capacity of 23.1 mgd (52%) is simply the difference <br /> between the estimated existing capacity and existing flows. <br /> The additional capacity added by the improvements is estimated to be 4.4 mgd <br /> ~ (the difference between build-out capacity and existing capacity.) Therefore, the <br /> ~ total growth-related capacity is 27.5 mgd. <br /> 1.1.3 Step 3 -Calculate Unit Cost of Growth-Related Capacity : <br /> I <br /> i ~ The unit cost of growth-related capacity is determined by dividing the growth- <br /> related costs identified in Step 1, by the growth-related capacity defined in Step <br /> 2. The unit cost is stated in terms of dollars per mgd. The total growth-related <br /> costs are $53.9 and the growth-related capacity is 27.5 mgd. Therefore, the unit <br /> cost ofgrowth-related capacity is approximately $2 million per mgd. <br /> 1.1.4 Step 4 -Develop SDC Rate Schedule <br /> The SDC rate schedule uses scaling measures that are designed with the intent <br /> that customers who are larger, or use infrastructure systems more intensively, <br /> pay the associated costs of capacity required to serve them. Fees for residential <br /> customers are computed by multiplying the unit costs of capacity by the capacity <br /> requirements of a typical user. Residential customers are then charged <br /> differential fees based on the attribute of square feet of living space of the <br /> development. Non-residential customers are assessed based on plumbing <br /> fixture units and land use type. <br /> I' City of Eugene SDC Methodology Wastewater, Page C-2 <br /> <br />