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<br /> <br /> 2-1 <br />DRAFT Use of contents on this sheet is subject to the limitations specified at the end of this document. <br />Section 2 <br />Wastewater System Asset Valuation <br />and Capacity <br />Capacity charges are defined as “a charge for public facilities in existence at the time a charge is <br />imposed or charges for new public facilities to be acquired or constructed in the future that are of <br />proportional benefit to the person or property being charged.” This section describes the development of <br />valuations for existing facilities. <br />2.1 Asset Valuation <br />Wastewater system assets included in the capacity charge calculation are categorized as wastewater <br />treatment plant and lift stations; collection system pipe; and the City’s share of EBDA (East Bay <br />Dischargers Authority) facilities.3 <br />The replacement value of the system excludes assets routinely purchased with operating revenues. <br />These types of items include laboratory equipment, safety equipment, maintenance equipment, <br />electronic equipment and vehicles. <br />The replacement value of the wastewater treatment plant and lift stations and the City’s share of EBDA <br />facilities was estimated by escalating asset acquisition costs by the ratio of the value of the Engineering <br />News Record 20-City Construction Cost Index (ENR 20-City CCI) currently compared to the time of <br />acquisition of the asset. City staff provided an estimate of the replacement cost for collection system <br />pipe. <br /> <br /> <br />3 East Bay Dischargers Authority (EBDA) was formed on February 15, 1974, by a "Joint Exercise of Powers Agreement" entered <br />into by the City of Hayward, City of San Leandro, Oro Loma Sanitary District, Union Sanitary District, and Castro Valley Sanitary <br />District. EBDA operates under a Commission consisting of one representative appointed by each member agency.