1. South Bay-North Olympia Merger Preparing for our Future Objectives: 1)Brief Status Report 2)Incident Readiness & Response Staffing Assumptions for Budgeting; 3)Budgeting Estimates for 2015 & 2016, and 4)Four Scenarios for FD7 and FD8. 1

2. South Bay-North Olympia Merger Preparing for our Future 2 FD7 Board Petition Request Merger Reasons Terms and Conditions FEBRUARY 2014 FD8 Board Approve Amend Reject MAY 2014 FD7 Voters Approve Reject NOVEMBER 2014 FD7 and FD8 Boards Concurrent Resolutions Environmental Impact Statement and Boundary Review Board Approval Merger Process: Chapter 52.06 RCW Definitions: Merging District merges into the Merger District If approved -

3. South Bay-North Olympia Merger Preparing for our Future 3 Terms and Conditions: 5 member board Emergency Service Integration Plan Vision and decision making Community connections Incident readiness & response Personnel development and volunteerism Facilities and equipment Financial management and administration Labor agreements Performance evaluation

4. South Bay-North Olympia Merger Preparing for our Future 4 Incident Readiness & Response Strategy: “Three-Point Delivery System”

5. South Bay-North Olympia Merger Preparing for our Future IR&R Staffing Planning:  Daytime Coverage: Stations 7-1 and 8-1  3 FD8 Assistant Chiefs (Career)  3 FD7 Lieutenants (Career)  3 Daytime Firefighters (Career)  Volunteers in Dayshift Stipend Program  Night & Weekend Coverage: Stations 7-1, 8-1 & 8-2  Nine shift teams of 10 Volunteers (FF-EMT)  Non-shift based Volunteers  Shift-based Volunteer Battalion Chiefs 5

6. South Bay-North Olympia Merger Preparing for our Future Revenue & Expense Budgeting 2015-2016: Revenue: Using existing levy/levy rates (RCW 82.55.092) in 2015 Propose $1.50 levy restoration (with 6-year 106% cap) in 2016 for 2017 (Scenario 3) Generally use existing levels of miscellaneous revenue streams Expense: Comparative evaluation of FD7-FD8 programs Labors costs: Board members (2 meetings per month) Labor costs: Career & Volunteer staffing; shift & non-shift based Training & safety, equipment: optimizing programs for staffing levels Operating transfers: estimate (will need to re-evaluate in 2015) 6

7. South Bay-North Olympia Merger Preparing for our Future Scenario 1: FD7 Stand-alone: Revenue: Limited revenues (no levy restoration): Need for levy restoration to ($1.500) Does not include new construction Expense: Limited funding for administrative staff, IR&R staff 7 201520162017201820192020 Levy$724k$732k$739k$746k$754k$761k Rate$1.297$1.260$1.223$1.188$1.154$1.120

8. South Bay-North Olympia Merger Preparing for our Future Scenario 1: FD8 Stand-alone: Revenue: “Banked Capacity” from 2008 (AV drop): Does not include new construction Expense: Program funding for staffing, operations and capital repairs & replacement programs 8 201520162017201820192020 Levy$1.445k$1.503k$1.563k$1.626k$1.691k$1.759k Rate$1.500

9. South Bay-North Olympia Merger Preparing for our Future Scenario 2: FD7 Merges Into FD8: Revenue: No adjustment to levy rates (normalized by RCW): Does not include new construction Expense: Modest funding for staffing, operations and capital repairs & replacement programs Recommend eventual levy rate restoration to $1.500 9 201520162017201820192020 Levy$2.170k$2.192k$2.213k$2.236k$2.258k$2.281k Rate$1.425$1.384$1.344$1.306$1.268$1.231

10. South Bay-North Olympia Merger Preparing for our Future Scenario 3: FD7 Merges Into FD8: Revenue: Restoration of levy rate ($1.500) in 2016 for 2017: Includes 6-year 106% levy cap Does not include new construction Expense: Funding for staffing, operations and capital repairs & replacement programs for 2015-2016 10 201520162017201820192020 Levy$2.170k$2.192k$2.470k$2.568k$2.671k$2.778k Rate$1.425$1.384$1.500

11. South Bay-North Olympia Merger Preparing for our Future Scenario 4: FD7 Merges Into FD8: Revenue: FD7 increase levy rate ($1.500) in 2014 for 2015: Does not include new construction Expense: Funding for staffing, operations and capital repairs & replacement programs for 2015-2016; need to adjust for less funding 2017-on than Scenario 3 11 201520162017201820192020 Levy$2.283k$2.306k$2.329k$2.352k$2.376k$2.400k Rate$1.500

12. South Bay-North Olympia Merger Preparing for our Future Comparison of Revenue Scenarios: 12