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Improvement Fee <br />Calculation of the improvement fee begins with a review of the utility's wastewater <br />master plan to determine which, or what portion of, improvements are needed to <br />provide capacity for new development. System capacity may be expanded <br />through the upgrade of existing facilities or the construction of new facilities. The <br />costs of the capacity-increasing improvements are projected based on standard <br />cost-estimating techniques. The planned capacity-increasing improvements are <br />projected to total $8.6 million (in 1998 dollars). These improvement costs are also <br />net of assessments. <br />Combined, the reimbursement fee cost basis and the improvement fee cost basis <br />represent the value ofgrowth-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 can <br />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 Unifi 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 2. <br />The unit cost is stated in terms of dollars per mgd. The total growth-related costs <br />are $53.9 and the growth-related capacity is 27.5 mgd. Therefore, the unit cost of <br />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, pay <br />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 differential <br />fees based on the attribute of square feet of living space of the development. <br />Non-residential customers are assessed based on plumbing fixture units and land <br />use type. <br />City of Eugene SDC Methodology Wastewater, Page C- 2 <br />