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San Leandro that would relocate to the new retail center. The sales of this tenant are not included as net new sales to the City. (Appendix Table C-3). Utility Users Taxes — Utility Users Tax revenues are based on the City's existing tax rate of 6% for electric, gas, water, satellite TV, and telephone, with an assumed 50% large use discount. Utility usage estimates have been provided by Kaiser. (Tables 5-C). Business Taxes — Pursuant to an opinion by the City's legal counsel, it is our understanding that the physician group that will serve the Medical Center (The Permanente Medical Group) will be subject to the City's business license fees. It is assumed that they would pay rates applicable under the "services" fee category. (Table 5-B). Sales Tax Generated by Construction — Estimated sales and use taxes from construction assume that contractors and subcontractors obtain a sub -permit designating the job site as the point of sale for 50% of construction materials so that 50% of generated sales taxes accrue to the City. Taxable material sales are estimated at half of the hard cost of construction. Kaiser has estimated total construction costs of $500 to $550 million. Construction City sales taxes are calculated based on 1% of estimated gross taxable sales/use charges (Table 7) Fines, Forfeitures, Misc. Charges, and Franchise Fees — These revenue sources have been estimated by applying current City revenues per resident equivalent to the Medical Center's projected 767 resident equivalents. (Table 4). ■ Police Protection Service Costs — Estimated police service costs have been calculated based on the call history of the Kaiser Hayward Hospital and the cost to respond to a call in San Leandro. It is estimated that the Medical Center will generate, on average, 2.56 calls per bed or 676 calls per year. Based on the City's police department budget, it is estimated that it costs the City approximately $357 to respond, on average, to each call for police protection. Based on these factors, it is estimated that it will cost San Leandro approximately $242,000 per year to provide police protection services to the Medical Center. (Table 6-C). ■ Fire Protection/EMS Service Costs — Fire protection in San Leandro is provided through a contract with the Alameda County Fire Department. In accordance with the terms of this contract, the City's General Fund is currently charged approximately $17.7 million annually for fire protection services, which translates into $2,170 per service call. Based on the service call history at the existing San Leandro hospital, it is estimated that the Medical Center will generate approximately 55 calls per year, costing $119,000. Additionally, a new $992,000 ladder truck will need to be purchased. While the initial cost of the truck is not included in this analysis of on-going revenue and service cost impacts, a portion of the annual cost to service debt on replacing the truck has been Keyser Marston Associates, Inc. Page 17 \\Sf-fs1\wp\19\19096\19096.036\003-001.doc; March 2009