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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 />(mgd) <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 />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 />(in 1998 dollars -- see current values in Table 4, page C-4) <br />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 of growth-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 />For more. detailed information on the local wastewater rate schedule, see Attachment 2, Page <br />C-5. For formula and calculation details, see Pages F-3 and F-4. __ <br />City of Eugene SDC Methodology Wastewater, Page C-2 <br />