June 15, 2009 - District of Mission

65
UMC Report No. 32 -2009
Page 3 of 5
Principles (Cont'd)
• Revenues would be flowing between Abbotsford and Mission each year based on the
usage of "growth" capacity of the asset by each municipality. For example, the projected
"growth" (in terms of "Peak Day Demand" increase) for an asset is 10 MLD and 80% was
for Abbotsford (8 MLD) and 20% was for Mission (2 MLD). If the actual "growth" of
Abbotsford is 90% (10 MLD) and 10% (1 MLD) for Mission (with a total actual "growth" of
11 MLD), then Abbotsford is to pay Mission for the "over-usage" fee for using an
additional 10% of the asset in that particular year. This will be illustrated further in the
example included in Appendix A.
Framework
If there is no growth, there is no consumption of the asset. There are zero costs to be
contributed by each partner.
The strategy is developed using Microsoft Excel in a spreadsheet format. A step-by-step
example and a copy of the spreadsheets (with 6 capital projects) are included in Appendix A.
The following summarizes the key components of the spreadsheet framework:
• Input Information Sheet (Section A) - Joint Water Capital Project information such as the
growth-related budget, designed capacity, projected year when the capacity ends, and
additional capacity of each asset would be input in this sheet. This information is
automatically transferred to each "Capital Project Sheet' for calculation.
• Annual Flow Information - Input Sheet (Section B) - Peak Day Demands from each year
will be entered in this sheet. Increase in Peak Day Demand compared to the previous
year is automatically calculated in a table. Again, information on this sheet is
automatically transferred to each "Capital Project Sheet" for calculation,
• Flow Projections Sheet (Section C) - This sheet contains the projected Peak Day
Demand information in the 2008 Optimization Study, Accumulated increase in Peak Day
Demand from each municipality and its corresponding percentage split are automatically
calculated and transferred to each "Capital Project Sheet". No further information is
required to be entered in this sheet.
• Capital Project Sheet (Section D) - Each asset will have its own Capital Project Sheet.
This sheet compares the actual "growth" to the projected "growth" of the asset.
Percentage of asset use in the year is calculated by dividing the actual "growth" by the
additional capacity of the asset. A cost for the asset used is then calculated. The actual
"growth" and the projected "growth" of the asset in percentage are then translated to the
used cost of asset associated with growth. An adjustment is then calculated based on the
difference between the actual and the projected "growth" for each year.
• Summary Sheet (Section E) - Adjustments calculated for each asset in each year in the
Capital Project Sheets are summarized in this sheet.