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The general approach used to calculate the development charge for various systems is based on <br />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 />• 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 />a 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 <br />the stormwater system, etc.). <br />(2) Determine System Value, including associated costs such as design, construction, right of <br />way acquisition and project administration. <br />~ Use replacement cost (current construction costs). <br />D Determine capacity-oriented cost of system, net of assessments and grants. <br />D Determine ratio of Improvement and Reimbursement portions of charge, if any. <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, commercial, industrial etc.). <br />Final calculations will be rounded to the nearest dollar. <br />2.3.1 Administrative Costs <br />Administrative costs are estimated annually and include the periodic and on-going direct and <br />indirect costs associated with complying with the requirements of state law and the cost of <br />administering the SDCs. An administrative charge shall be incurred when one of the following <br />occurs: <br />(1) When a redevelopment occurs that changes the use of a building in its entirety and it is <br />determined that usage of any capital improvement is increased or there is need of additional capital <br />improvements. <br />~ -The administrative fee will be calculated either as a percentage rate of the net <br />charge after credits are applied or at a flat rate, whichever is higher, as listed in the SDC <br />fee schedule on page F-7 of Appendix F. <br />(2) When a redevelopment occurs that changes the use of a building in its entirety <br />and it is determined that there will be no increased usage of any capital improvement and no <br />additional capital improvements will be needed. <br />~ The administrative fee will be applied at a flat rate as listed in the SDC fee <br />schedule on pate F-7 of Appendix F. <br />City of Eugene SDC Methodology Page 5 <br />