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The estimated annual operating cost of the ALS Engine only option is approximately $1.3 million per year as shown in Table 1 above. Please see Attachment 1 for additional detail. This would result in a millage increase of 5.3% based upon the current tax roll. It should be noted that the $1.3 million estimate does not include startup costs such as the purchase of apparatus, modular relocation, etc. These costs will be discussed in greater detail herein. For the Full Complement option (Engine and Ambulance), costs rise to about $2.0 million as shown in Table 1 (see Attachment 2 for additional detail). Once again, this amount does not include startup costs. This would require a millage rate increase of nearly 8.0%. Taxable Value Increase The taxable value within the Emergency Services District increased by 7.4% for the current fiscal year (countywide, the increase was 7.1 %). Staff anticipates another tax roll increase for next fiscal year. It is appropriate to evaluate whether the taxroll increase could fund the costs associated with the proposed additional station. The 7.4% taxroll increase this year provided an additional $1.6 million in revenue at the same millage rate. While property values appear to continue climbing, staff does not recommend planning for such substantial increases going forward. A more reasonable assumption would be a 5.0% taxroll increase, which would provide an additional $1,260,000 at the current millage rate. For the current year, raises increased costs by about $900,000. The County and the IAFF are just beginning negotiations for next year's contract, so the cost of raises for fiscal year 2016/17 is unknown at this time. Additionally, the District will see an increase of about $200,000 to continue on the planned five-year capital catch-up program previously approved by the Board. Further, the County will need to make significant adjustments to the health insurance plan to reduce the losses currently being experience. This will likely have a large impact on the Emergency Services District. The additional costs listed above would leave little room to fund costs for the new station without the need for a millage rate increase. Startup & Location/Relocation Costs The cost to relocate the existing modular could be substantial. Staff has obtained a quote from the original vendor to relocate the unit, which includes the cost to replace/rebuild the skirting, stairs, and ADA compliant ramps, landings and handrails at a cost of $24,781. In addition to these costs, the County will have to pay for any necessary site work including storm water retention, parking, and utility connections. Staff estimates that these costs could reach $300,000 depending upon requirements of the site to be used. These expenditures will be funded from the Emergency Services District. Staff has considered the use of Optional Sales Tax and Impact Fees for these costs; however, in both cases capital improvements must have a• five-year life expectancy. Therefore, staff does not recommend the use of Optional Sales Tax or Impact Fees for these costs. The Board provided general direction to staff to consider locating the modular at the North County Park property that the County currently leases from the State. County staff has reached out to the State to determine if the County could locate a fire station on the leased property on a temporary and/or permanent basis. We have not received a determination from the State whether this use would be allowable under our current lease agreement. In the event that this property is unavailable or not feasible, the County would need to acquire property in the general area. The cost of such property could be substantial. Furthermore, the need to acquire property could create a timing problem with relocation of the modular unit. 265