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~ y <br /> <br /> t~ <br /> l <br /> The general approach used to calculate the development charge for various systems is based <br /> r ~ on requirements set forth in ORS 223.297: <br /> • Reimbursement fees "shall promote the objective that future system users contribute no <br /> more than an equitable share to the cost of reserve capacity in the existing facilities." <br /> • Improvement fees shall be established considering "the cost of projected capital <br /> improvements needed to increase the capacity of the systems to which the fee is related." <br /> I <br /> • Credits are required for "qualified public improvements." <br /> This general approach is illustrated in Figure 1 and can be outlined in the following steps: <br /> (1) Determine System Service Characteristics. <br /> ~ system consists of several components (e.g., lines, pump stations, force mains, <br /> manholes are components of the wastewater system). <br /> D establish impact measure -that feature of development that best reflects use of <br /> system capacity (e.g., trips for the transportation system, impervious surface for the <br /> stormwater system, etc.). <br /> (2) Determine System Value, inGuding associated costs such as design, construction, right of <br /> way acquisition and project administration. <br /> a Use replacement cost (current construction costs). <br /> D Determine Non-assessable cost of system. <br /> a Determine ratio of Improvement and Reimbursement portions of charge, if any. <br /> I <br /> (3) Allocate the system value to the unit of impact e.g., cost per unit of impervious area for <br /> stormwater system. <br /> (4) Determine the service impact of specific development types (e.g., SFD, manufactured <br /> home parks, etc.). <br /> f <br /> Final calculations will be rounded to the nearest dollar. <br /> 2.2.1 Administrative Costs <br /> An administrative charge shall be included in each SDC imposed. This charge is to recover <br /> 1 direct and indirect costs incurred in complying with the requirements of state law and the <br /> cost of administering the SDC. These costs include periodic and on-going annual costs. <br /> I Total annual administrative costs are estimated annually. These costs will be recovered <br /> through a charge calculated as a percentage rate as listed in the SDC fee schedule in <br /> Appendix G. The percentage is multiplied by the total of the system-specific charges for <br /> each development before applying any exemption or credit to determine the administrative <br /> charge. <br /> i <br /> May 1, 1997 City of Eugene SDC Methodology Page 4 <br /> <br />