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C. Recurring General Fund Service Expenses <br />Given the non-residential nature of the Medical Center, it is anticipated to generate a relatively <br />small need for City services. As shown below and on Table 2, upon stabilization of the Center's <br />initial phase, it is estimated to annually generate a need for $559,000 of General Fund services. <br />Exhibit B provides a graphic percentage breakdown of the service cost needs to be generated <br />by the Medical Center. <br />Recurring General Fund Expenses — Phase 1 <br />Recurring General <br />Percent <br />Fund Expenses <br />of Total <br />Police <br />$242,000 <br />43% <br />Fire Service Contract <br />163,000 <br />29% <br />Public Works <br />122,000 <br />22% <br />General Government <br />12,000 <br />2% <br />Organizational Services <br />10,000 <br />2% <br />Community Development <br />5,000 <br />1% <br />Engineering and Transportation <br />5,000 <br />1% <br />Total Recurring Expenses <br />$559,000 <br />100% <br />Major Recurring General Fund Expenses <br />Police protection is anticipated to be the single largest single annual General Fund expense. <br />Based on the service call history at the Hayward Kaiser Hospital, it is estimated that the Medical <br />Center will generate approximately 676 calls per year. It costs the San Leandro police <br />department approximately $357 to respond to a call, on average. Based on this data, it is <br />estimated that police protection costs will total approximately $242,000 per year. This <br />represents 43% of total municipal service costs to be generated by the Medical Center. <br />Fire protection in San Leandro is provided through a contract with the Alameda County Fire <br />Department. The City's General Fund currently expends approximately $17.7 million for the <br />department to respond to 8,148 service calls, which approximates $2,170 per call. For purposes <br />of this analysis it has been assumed that the proposed Center's service call rate will be the <br />same as the call rate generated by the San Leandro hospital. Based on this assumption, it is <br />estimated that Phase 1 of the Center will generate approximately 55 calls, resulting in a cost of <br />$119,000 to the General Fund. The Medical Center will also require the purchase of a new <br />ladder truck in order to accommodate the height of the buildings. The truck will serve both the <br />Kaiser Medical Center and Sutter Hospital. While the initial cost of the truck is not included in <br />this analysis of on-going revenue and service cost impacts, a portion of the annual cost to <br />service debt on replacing the truck has been included and calculated based on an estimate of <br />Kaiser's pro rata share of demand. As detailed in Table 6-D, it is estimated that Kaiser's share <br />of annual debt service is approximately $44,000. The combination of service call costs and <br />Keyser Marston Associates, Inc. Page 9 <br />\\Sf-fs1\wp\19\19096\19096.036\003-001.doc; March 2009 <br />