NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT and

BIG CORKSCREW ISLAND

FIRE CONTROL AND RESCUE DISTRICT

JOINT MERGER BUSINESS PLAN

(FINAL— AUGUST 14, 2014)

NORTH NAPLES FIRE CONTROL AND RESCUE DISTRICT AND BIG CORKSCREW ISLAND FIRE CONTROL AND RESCUE DISTRICT

JOINT MERGER BUSINESS PLAN (FINAL- AUGUST 14, 2014) PRESENTED BY: Fire Chief Orly Stolts Executive Chief Rita Greenberg Board of Fire Commissioners North Naples Fire Control and Rescue District: M. James Burke, Chairman Norman E. Feder, Vice Chair Margaret Hanson, Treasurer John McGowan, Commissioner J. Christopher Lombardo, Commissioner PRESENTED TO: Board of Fire Commissioners Big Corkscrew Island Fire Control and Rescue District: R. Eliseo Chao, Chairman Christopher L. Crossan, Vice Chairman Paul M. Plamondon, Commissioner

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OUR MISSION:

To protect lives and property in an efficient, yet effective manner, while maintaining the utmost level of respect for one another and illustrating a high standard of ethics and dedication to the care of our customers.

OUR VISION STATEMENT: “Efficient, Effective and Quality Service Today and Tomorrow”

OUR COMMITMENTS: TO OUR RESIDENTS AND THE COMMUNITY: We are committed to meeting the needs and expectations of our residents today and in the future, to develop innovative solutions to the service delivery challenges we encounter, and to provide rapid response delivered by dedicated and caring professionals.

TO OUR EMPLOYEES: We are committed to providing a working environment characterized by trust and respect, supportive of open and honest communication, and fostering professional growth, community involvement, and illustrating the highest ethical, moral and personal standards to incite public trust.

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TABLE OF CONTENTS INTRODUCTION

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SECTION I Name of Each Component District .....................................................................5 SECTION II Name of Proposed Merged District .................................................................5 SECTION III Rights, Duties and Obligations of the Proposed Merged District ....................6 SECTION IV Territorial Boundaries of the Merged District ..................................................6 SECTION V Government Organization, Transitional Plan and Schedule for Elections….7 A. Objectives of the Merger…..…...………………………………………………7 B. Elected Officials ………………………………………………………………11 C. S. W. O. T. Analysis …...……………………………………………………..12 D. Departmental Overviews …………………………………………………….15 SECTION VI Fiscal Estimate of Potential Cost or Savings as Result of Merger ................32 SECTION VII Component Districts’ Assets, Liabilities, Indebtedness .................................39 SECTION VIII Terms of Assumption and Disposition of Assets, Liabilities ..........................40 SECTION IX Terms for Common Administration and Uniform Enforce of Existing Laws...41 SECTION X Times and Places for Public Hearings ..........................................................41 SECTION XI Times and Places for Referendum in Each Component District ...................42 SECTION XII Referendum Language to be Presented for Approval ..................................42 SECTION XIII Effective Date of Merger………………………………………………………43 Exhibits Index…………………………………………………………………………….44 Page 3 of 44

INTRODUCTION Special districts are governed by Chapter 189, Florida Statutes, the Uniform Special District Accountability Act of 1989, and are defined as a limited local government unit established for a special purpose. Special districts have the authority granted by the Florida Statutes, special acts, and if applicable, local government ordinances. An independent special district is a special district that does not meet any of the four criteria of a dependent district. Chapter 191, Florida Statutes, provides statutory authority to independent special fire control districts. The Big Corkscrew Island Fire Control and Rescue District (“BCIFR”) and the North Naples Fire Control and Rescue District (“NNFD”) are both independent special fire control districts created by special acts of the Florida Legislature, with BCIFR established in 1977 and NNFD established in 1961. Each shall be deemed a component independent special district as defined in section 189.07(1), Florida Statutes. In November 2010, the voters of both BCIFR and NNFD voted in favor (70% in BCIFR and 74% in NNFD) of consolidation of the fire districts “provided that consolidation will improve efficiency and promote a more cost effective use of tax dollars”. The process for merger of independent special districts is governed by sections 189.073, 189.074, and 189.075 Florida Statutes, which provides three methods of merging two or more independent special districts: legislative merger by special act, voluntary merger initiated by joint resolution of the governing bodies of each affected district, or involuntary merger. On February 6, 2014, the Board of Fire Commissioners of both BCIFR and NNFD approved an interlocal agreement setting forth the terms and conditions to consolidate administrative operations (“Interlocal Agreement”). In addition to the Interlocal Agreement, the Fire Commissioners of BCIFR and NNFD also adopted Resolution 14001 and 14-003, respectively, supporting the methodology for voluntary merging pursuant to section 189.074, Florida Statutes. In addition, the Boards of Fire Commissioners directed staff to develop a plan to determine if the merger of BCIFR and NNFD into one independent special fire control district would improve efficiency and promote a more cost effective use of tax dollars. As evidenced by this Plan, the merger of BCIFR and NNFD WILL improve efficiency and promote a cost effective use of tax dollars. In the first five years alone, the merger will yield an estimated 2.3 million dollars in hard cost savings. Each year thereafter, Page 4 of 44

annual savings will be more than 1 million dollars. The merged district will result in significant efficiencies:  1 government instead of 2  5 commissioners instead of 8  1 administration instead of 2  5 chief officers instead of 9  Greater potential for the future reduction of the millage rate for the taxpayers. The savings achieved will result in an increased level of service if the governing body of the merged district elects to invest the savings back into emergency operations  10 more firefighters  2 additional quick response vehicles staffed full-time, and providing engines with minimum staffing of 3, which will improve the availability of all responding apparatus  Merger provides the opportunity for cost sharing and joint operation of a station under consideration by NNFD bordering NNFD/BCIFR. All of this will be achieved within the first five years with NO increase in current millage rate (and the potential for a decrease in millage rate) and maintaining cash reserves at a level of 33% to 60% of budgeted expenses within each service delivery area. SECTION I Name of Each Component District (section 189.074(2)(a)1, Florida Statutes) A) Big Corkscrew Island Fire Control and Rescue District, established 1977. B) North Naples Fire Control and Rescue District, established 1961. It is proposed to merge these two independent special fire control districts into one independent special fire control district as provided by section 189.074, Florida Statutes. SECTION II Name of Merged District (section 189.074(2)(a)2, Florida Statutes) The merged district, an independent special fire control district shall be named North Collier Fire Control & Rescue District. Throughout this Plan, it shall be referred to as the “merged district.”

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SECTION III Rights, Duties and Obligations of the Proposed Merged Independent District (section 189.074(2)(a)3, Florida Statutes) The merged district shall be an independent special fire control district under chapter 191, Florida Statutes. It shall have the authority to establish, equip, operate and maintain a fire department and rescue service within the merged district, and may establish and maintain emergency medical and rescue response services (“EMS”) consistent with section 191.008(1), Florida Statutes, and the provision of Chapter 401, Florida Statutes, and any certificate of public convenience and necessity or its equivalent issued thereunder. The merged district shall also have all rights, duties and obligations granted to special districts and independent special fire control districts pursuant to Chapters 191 and 189, Florida Statutes, as well as the special acts of BCIFR and NNFD (Chapter 2000-395, Florida Statutes and Chapter 99-450, Florida Statutes, and subsequent special acts, respectively). The merged district shall have the right to annually assess and levy against the taxable property in the merged district, and all powers, functions and duties of the merged district regarding ad valorem taxation, bond issuance, other revenue-raising capabilities, budget preparation and approval, and methods for financing the district shall be as set forth in Chapters 170, 189, 191 and 197, Florida Statutes. Until such time as the Florida Legislature approves the unified charter required in section 189.074, Florida Statutes, the merged district shall be limited in its authority within the BCIFD and NNFD as required by section 189.074(5)(2)c, Florida Statutes. SECTION IV Territorial Boundaries of the Merged District (section 189.074(2)(a)4, Florida Statutes) The territorial boundaries of the merged district shall be the existing boundaries of BCIFR and NNFD as identified in each component district’s enabling legislation and any subsequent amendments, and as identified in Exhibit A Merger Plan Attachments. The existing boundaries of NNFD Component District shall be referred to as the North Naples Service Delivery Area and the existing boundaries of BCIFR Component District shall be referred to as the Big Corkscrew Island Service Delivery Area.

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SECTION V Government Organization of the Proposed Merged Independent District (section 189.074(2)(a)5, Florida Statutes) A. Objectives, Strategies and Measurements Within the first 5 years, an estimated $2,303,212 in hard savings will be realized. These savings, with Board approval, will be utilized in the manner below in that same 5 year period. 1) Improve Level of Service Strategy – Utilize realized savings to reinvest into the organization to improve the level of service. Facilities/Apparatus/Personnel A) Implementation of a Full time 2 person Quick Response Unit in BCIFR. Presently 3-4 personnel staff 4 pieces of apparatus (dependent upon call type) at each of 2 stations. By adding personnel to staff the Quick Response Unit, we will increase our fully staffed first response units from two to three. The smaller unit will handle medical calls and other small fires/emergencies, leaving the Engine ready for response with a full crew in our busiest zone. B) Implementation of a Full time 2 person Quick Response Unit in NNFD. Fills a current hole in the Vanderbilt and Airport corridor – freeing up a response ready engine in the Pelican Bay Station. C) Construction and operation of a new joint facility on/near the current existing boundary line on Immokalee Road, near Heritage Bay/Bonita Bay/Twin Eagles. Each district currently needs a facility in these areas, and NNFD plans to open a station in this area sometime between 2015-2016 and 20182019. Instead of each district building separate facilities, with separate apparatus and personnel (24 total needed), as a merged agency the facility and apparatus can be built and purchased and only 12 personnel will need to be hired to meet the staffing needs. These expenses can be distributed utilizing cost allocation. This improves response times to the areas closest to the new facility, freeing up units from traveling from farther away (the domino effect of improved response times should be realized). D) It takes Time to Initiate Mitigation Efforts - simply having more personnel available improves the service level through the concept of Time on Task. Regardless of the nature of the emergency – TIME – is of the essence. Time to recognize the emergency, Time to call for assistance, Time for police/fire/EMS to be dispatched, Time for them to react to dispatch, Time for them to drive to the location, Time for them to complete the tasks required. Page 7 of 44

TIME is critical and the more locations to respond from, units and personnel to respond with, the greater the potential reduction in loss of life and property damage. The time stamps above can be collected through the current reporting programs of the District and Collier County Sheriffs’ Office. Education A) In –House advanced training for high rise and wildland fire operations will be conducted to bring each existing agencies personnel in line with one another – basic knowledge of wildland and high rise fires is taught to all personnel, but the application of the techniques can be expanded and individual experiences and strengths can be shared with one another. B) Special Teams training – 20 more personnel can be trained in-house to support the existing special teams (hazmat, technical rescue, dive rescue, etc). These extra resources on-duty will improve service levels there will not be a delay in waiting for off-duty resources. C) Medical Training – 10 additional personnel can be trained in-house and potentially practice the ALS protocols currently in use on the Countywide level of the ALS Engine program through NNFD’s COPCN, 14 additional personnel can be trained to the advanced level, improving their knowledge base and assistance capabilities. D) By sharing the knowledge base of all of the instructors, and the vast experience of personnel, individual skills will be enhanced. Sporadic skill checks and annual evaluations will be utilized to confirm a constant/improved knowledge base, understanding and ability to implement. 2) Administrative Cost Reductions Strategy – Reduce the number of Chief Administrative Officers through attrition or through the use of early retirement incentives, identifying those positions and anticipated time for retirement, with Board elimination of the position at such time. A) Four of the 9 current Chief Officers and 1 administrative employee are scheduled to retire within the first 5 years of the merger. Those individuals are Fire Chief Orly Stolts – October 1, 2016, Assistant Chief Michael Ginson – June 30, 2017, Executive Chief Rita M Greenberg – June 30, 2019 and Deputy Chief Michael Swanson – June 30, 2019, and Public Information Officer Jerry Sanford – June 30, 2019. The management structure will be reengineered and responsibilities will be reallocated in order to eliminate the positions of Executive Fire Chief, the Assistant Chief of Support Services, the Deputy Chief of Training, the Captain (BCIFR Chief Officer position) of Training and Operations, and the Public Information Officer. While retirement is not mandatory, the merged district’s governing body will eliminate the Page 8 of 44

positions at the time retirement is expected to ensure the position will be vacated. Once the identified positions are vacated they will not be filled. B) In an effort to incentivize retirement and vacate positions which may not require filling, early retirement incentives may be approved by the Board. Creation and approval by the Board of the concept of any early retirement incentive is required, followed by offer to the eligible employees, acceptance by the employee, a Resolution adopted by the Board, and the execution of a contract by both Board and Employee providing for an effective date and option choice. i. Some options for Board consideration include: a. 1 year salary and 3 years health insurance (if eligible, employee cannot collect retirement for 1 year); b. 3 years health insurance (employee can collect retirement, if eligible, immediately); and c. the equivalent of 1 year’s salary annualized towards health insurance premiums (individual or dependent coverage selected by employee) up to age 65. If retiree reaches aged 65 before expending annual salary amount, one final contribution to a health savings account of the balance remaining. ii. Employees cannot be forced into accepting an early retirement incentive. The early retirement incentives will be offered for a specified period of time and will have a mandatory initiation and termination date. Employees electing to participate in the early retirement incentive will have a one-time option to make such an election, and will be required to execute a contract documenting the election and term of the incentive. Based on the reduction of personnel through attrition or early retirement a measurable reduction in administrative cost can be realized. 3) Improve Operational Efficiency Strategy – Utilize a cost allocation method to track expenses and do not decrease a millage rate until revenues are sufficient to fund personnel and operating expenses, cash reserves are stabilized, and any deficit in reserves has been replenished. A) The cost allocation method will equitably distribute costs of the merged district to effectively and efficiently confirm to taxpayers that funds of one service delivery area are not funding a tax reduction to another service delivery area.

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B) When the revenues and expenses are equivalent, it will be due to a combination of factors: changes in property values, efficiencies of operation and reduction of duplicative functions. These factors will positively impact the revenues to expense ratio and the correlation between cash reserves and expenditures, which will be measurable through the budgetary changes and the financial statements. C) When reserves are no longer utilized to fund operations and remain stable or improve, this too will be evidenced in the annual audited financial statements and identified in the budgetary process 4) Reduce/Eliminate Redundant or Duplicative Positions (General Employees and Operational) Strategy – Review and determine what, if any, positions may be combined, reduced and/or eliminated based on the services provided and effectuate the change. A) In reviewing general staff positions – a. There are presently 3 public outreach and education positions outside the collective bargaining unit. One of these positions will be vacated through attrition by June 30, 2019 and the position will be eliminated with Board approval. The remaining 2 positions will be retained to provide public education and outreach services to the community in addition to serving as the Public Information Officer. b. There are presently 3 mechanics, all of whom will be necessary to maintain fleet operations. The mechanics have varying certification and skill levels that will complement each other and allow for an improved preventative annual maintenance program and improved efficiency as evidenced by faster unit return to service. It is possible, through Board approval, that one or more reserve units may be put into surplus or used as a trade in. c. There are presently 7 administrative support personnel, 5 full-time and 2 part-time, who provide human resource, finance, data entry and administrative assistance to support the operation of the two districts and boards. With expanded responsibilities in the area of fire inspections, plan review, logistics, maintenance, and payroll/benefits, it will be possible to reallocate these support personnel to specific assignments and cross train them to improve efficiency in each area. d. There are presently 2 facilities maintenance personnel that provide and coordinate facility repairs and maintenance for the existing 9 stations, with station 48 becoming operational within the next year, and an

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additional joint station coming on line within the next five years. The workload will require these two positions remain staffed. B. Elected Officials – Transitional Plan and Schedule of Elections The business and affairs of the merged district shall be conducted and administered by a Board of Fire Commissioners elected pursuant to Chapter 191, Florida Statutes. From the effective date of the merger until the next general election in 2016, the governing body of the merged district shall be comprised of the governing body members of each component district pursuant to section 189.074(7), Florida Statutes; specifically, the 3 elected fire commissioners of BCIFR and the 5 elected fire commissioners of NNFD shall comprise the 8 member governing body of the merged district. The 8 commissioners shall serve until the governing body members elected at the next general election take office. Beginning with the next general election following the effective date of the merger, the governing body of the merged district shall be comprised of five members. The office of each member shall be designated by seat, distinguished from other body member seats by an assigned numeral: 1, 2, 3, 4 or 5. The governing body members that are elected in this initial election following the merger shall serve unequal terms of 2 and 4 years in order to create staggered member terms of the governing body, with member seats 1, 3 and 5 being designated for 4-year terms and member seats 2 and 4 being designated for 2-year terms. Following approval by the Florida Legislature of the merged district’s unified charter legislation that provides for the below: In the first election following the effective date of the unified charter, Seat 1 shall be elected from the BCIFR Service Delivery Area, with all candidates for such seat being required to be a qualified elector residing in the BCIFR Service Delivery Area and being elected from only those electors of the BCIFR Service Delivery Area. Seat 3 shall be elected from the NNFD Service Delivery Area, with all candidates for such seat being required to be a qualified elector residing in the NNFD Service Delivery Area and being elected from only those electors of the NNFD Service Delivery Area. Seats 2, 4 and 5 shall be elected as at-large seats for the merged district as a whole. Page 11 of 44

Beginning with the 2020 general election, Seats 1 and 3 shall be elected as atlarge seats for the merged district as a whole and the requirements to reside within and be elected from the specified service delivery area are eliminated. If the above proposed governance structure is deemed to be unconstitutional or not approved by the Florida Legislature, the merged district will seek a unified charter for approval by the Florida Legislature that provides for election of members in accordance with section 191.005(1)(b), and there will be no seats based on geographic sub-district. In the general elections thereafter, all governing body members shall serve 4-year terms. All board members shall be non-partisan and elected accordingly. C. SWOT Analysis As part of the merger planning process, a SWOT analysis has been prepared (SWOT is an acronym for Strengths, Weakness, Opportunities and Threats). This method of analysis was used to identify the general strengths and weaknesses of the proposed merger, the opportunities created by it and the potential threats posed to, by, or resulting from it. STRENGTHS The following strengths have been identified of the proposed BCIFR/NNFD merger. This list should not be considered all inclusive: 1. The merged district will result in a reduction of duplication of service and create efficiency in administrative services. Non-operational personnel costs, including 4 Chief Officer positions, will be eliminated through attrition. 2. Merger results in an increase in State Premium Tax Funds to reduce pension costs by an estimated $144,000 per year or more than $700,000 in the first five years alone. 3. Merger results in: a. Additional operational personnel available to rapidly place an adequate number of first responders on the scene of a critical incident within the necessary time parameters to safely accomplish all critical tasks. b. A potential reduction of response times within areas of the new district. c. A standard minimum safe staffing level, district wide, moving the district one step closer to attaining compliance with NFPA 1710 staffing standards, d. Timely response of Special Teams while allowing for the reasonable expansion of their capabilities as the new district experiences future growth. Page 12 of 44

4.

5. 6. 7.

e. A manageable span of control across the new district and flexibility for the expansion of the district in response to service needs. f. Sensible strategic planning of future station locations and the provision of service in an efficient and effective manner. This will undeniably result in capital savings, as facilities under consideration for construction in the two districts may now be assessed for duplication and may no longer have to be built if merger occurs. g. Training of all skills will become standardized throughout the new district, yielding better trained personnel. Merger will provide both service delivery areas with additional water tenders for use in areas currently without hydrants and will increase water resources available. The merged district will have 12,000 gallons of mobile water available. There is an adequate pool of extremely experienced and trained personnel capable of meeting the staffing requirements and current service demands. Merger will provide BCIFR with additional brush trucks available for use in wildland fires. There exists adequate facilities for service delivery and they are in good condition and well-maintained. Merger will provide an increase in options for staging areas during hurricane and storm events.

WEAKNESSES The following weaknesses of the proposed merger have been identified. This list should not be considered all inclusive: 1. This proposal does not provide standard response times throughout the new district. There remains excessive response in the remote rural areas of the new district. New stations and assets will be required to full address this disparity. 2. Current funding assumptions for the merged district rely upon ad valorem tax revenue and projections of future taxable property value, including projected growth within a 20 year period. As current events have demonstrated, this method makes the new district vulnerable to the variations of property values – this could result in future budgetary challenges. Variations in the economy could affect new construction inspection and fire code plan review revenue. 3. The long term financial projections for both service delivery areas can be impacted by many variables. 4. There exists a disparity in pay and benefits of the collective bargaining agreements between the different unions representing the organized firefighters of the two districts. Achieving parity will result in an unknown cost

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to the new district because it must be achieved through the collective bargaining process identified in Ch 447, Florida Statutes. 5. There could be a perception of loss of control locally within the service delivery areas of BCIFR and NNFD with the merger. 6. The composition of the elected board of the new district may result in one service delivery area feeling they have more decision control than the other. 7. There may be a negative impact on one or both of the districts’ ISO ratings. OPPORTUNITIES Addressing these perceived weaknesses and implementing the proposed merger will result in certain opportunities. A list of potential opportunities follows. Again this list should not be considered all inclusive: 1. As a result of changes to the statutory merger process, the opportunity now exists to merge districts with disparate millage rates. 2. Long term financial projections are based on external data provided by the Collier County Growth Management Division and the University of Florida, and are conservative in nature. Potential exists for greater growth. 3. Savings resulting from the merger may provide additional response capabilities in both areas to reduce response times. 4. Greater potential exists to reduce the millage rate for each service delivery area as a merged district. 5. The merged district provides the opportunity to create one collective bargaining agreement because the new district will be one employer, which provides the opportunity through collective bargaining, to create standardized wage, benefit and working conditions for the new district. Any cost or savings resulting from such a collective bargaining agreement can be allocated to the appropriate service delivery area. 6. Grant opportunities will be created as larger organizations often qualify for grant funding thresholds not met by smaller ones. 7. The opportunity exists to more efficiently meet the growth demands with a larger organization. NNFD has experience in meeting the service needs associated with a rapidly expanding area. The new district will be better able to study growth district-wide and anticipate service needs well before they become urgent. 8. NNFD’s past history in rapid expansion provides the opportunity to take quicker advantage of building opportunities and expedite growth. 9. Control of fire code plan review and new construction inspection provides the opportunity to facilitate the anticipated building related to the projected growth.

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10. The new district will also allow for the expansion and coordination of Citizen Emergency Response Teams (CERT) district-wide and enhance the current program with BCIFR. 11. The existing volunteer program at BCIFR provides the opportunity for development of an apprentice or reserve program in cooperation with the NNFD/Edison Fire Training Center. 12. Over time, the opportunity exists for a transition in pride and ownership from the individual service delivery area to the new district. THREATS A number of possible threats have been identified. These threats can be construed as either threats to the viability of the proposal, threats to the created organization or both. The threats identified include the following. Again this list should not be considered all inclusive: 1. There may be a lack of stakeholder acceptance of the merge. This lack of acceptance may occur within/between the taxpayers of BCIFR and NNFD. BCIFR taxpayers may feel that the anticipated future growth within their service delivery area will fund future shortfalls of NNFD. NNFD taxpayers may feel their assets will fund current shortfalls of BCIFR. 2. There may be a pre-existing misconception that a merger such as this MUST demonstrate a cost savings immediately upon implementation. Since immediate cost savings are not likely in the short term under the tenets of this merger, this may result in a negative response by the general public. 3. The estimated savings over the first 5 years ($2.3 million) may not be sufficient enough to meet public expectations of short term results and there may be an unwillingness to wait for the projected long term savings to be realized. 4. Overall resistant to change may result in inadequate momentum to propel this merger forward. 5. The perception that the merged district must operate on a blended millage rate as quickly as possible may act as a deterrent. 6. Growth risks exist if projections for either district vary in either direction. 7. Economic risks exist if projections for either district vary in either direction. 8. Legal risks exist since this will be the first merger enacted under Chapter 189 allowing for disparate millage rates in a merged district. D. Departmental Overviews Administration On February 6, 2014, the BCIFR and NNFD entered into an Interlocal Agreement to administratively consolidate the management and operational services of BCIFR and NNFD until such time that a joint merger plan is implemented after voter approval at referendum. The Fire Chief of NNFD was identified as the Fire Chief of both BCIFR and Page 15 of 44

NNFD, and the Fire Chief of BCIFR was designated as the Executive Chief of both BCIFR and NNFD. This Management Team is currently comprised of the Fire Chief, Executive Chief, 2 Assistant Chiefs, 4 Deputy Chiefs and 1 Captain. The Management Team, as created through the Interlocal Agreement, will become the Management Team of the merged district upon the effective date of the merger and will oversee the implementation of the joint merger plan and the transition of assets, liabilities, personnel and operations within. During the initial 5 year period following the merger, the Management Team will be reduced from its current 9 members to 5 members and be comprised of a Fire Chief, Assistant Chief and 3 Deputy Chiefs, as identified in attached Exhibit C. The Management Team, present and future, is supported by staff personnel providing Human Resources, Public Relations, Facilities and Fleet Maintenance, Logistics, Accounts Payable/Accounts Receivable and Communications/Information Technology services to the merged district. There are no appointed officials to consider. The employees of the BCIFR and NNFD shall be provided for below. Exhibits A – Merger Plan Attachments Exhibit B – General/Staff Organizational Charts Administrative policies and procedures shall be combined as a result of the Interlocal Agreement following the effective date of the merger. In addition to financial and basic administrative policies, the merging of administrative services has allowed for the sharing of computer programming and resources resulting in savings and cost avoidances for each of the respective districts. The administrative, human resource and financial functions of both BCIFR and NNFD are dictated by a variety of Florida Statutes, Auditor General requirements, internal and external policies, and state and federal laws. BCIFR Current Administration BCIFR currently accomplishes its administrative, human resource and financial functions through the Fire Chief, 1 Assistant Fire Chief and 1 Administrative Assistant. NNFD Current Administration NNFD currently performs its administrative, human resource and financial functions through 1 Assistant Fire Chief, 1 Human Resource Generalist, 1 Accountant, 2 Administrative Assistants and 1 part-time Data Entry Clerk. Combined Administration Benefits Currently, each independent special fire control district must individually perform their respective administrative, human resource and financial functions. The ability to Page 16 of 44

combine these functions will result in an elimination of duplicative positions and a more efficient and cost effective administration. Benefits include:  Financial and budgeting functions can be accomplished by one finance team instead of two;  Human resource functions can be accomplished by one team instead of two, and can be more comprehensive and effective, with the risk management function enhanced;  Future consolidation of two collective bargaining agreements into one (subject to statutory negotiation requirements);  “Best practice” administrative and financial policies can be adopted for use by the merged district;  Utilization of existing financial software and reporting will result in cost avoidance Transitional Plan The administrative merger is already in process pursuant to the Interlocal Agreement. The transitional process is as follows:  Full integration of finance, human resource and administrative employees will be complete by the effective date of the merger. BCIFR Administrative Assistant will provide human resource assistance to NNFD Human Resource Generalist; NNFD Accountant will provide accounts payable and receivable assistance to BCIFR; administrative support staff will provide assistance and backup at all facilities.  BCIFR and NNFD will each adopt their budgets for the fiscal year beginning October 1, 2014 and October 1, 2015 pursuant to the statutory process. The budgets will be administered and reported, and the financial reporting will continue individually as required by Ch. 189.074, even after the effective date of the merger. By utilization of the cost allocation method developed, separate budgets will be maintained and tracked, along with cash reserves, as long as there are two separate taxing service delivery areas, ensuring neither District will fund the other until revenues in BCIFR allow taxing rates to be equalized. The provision for continuation of the cost allocation utilization, maintenance of separate budgets and cash reserves will be included in the new merged districts’ unified charter legislation. Notwithstanding, the financial and budgetary functions will be accomplished by the newly integrated financial personnel.  The financial software of NNFD will be utilized to establish the financial accounts and reporting for BCIFR, with only minor associated cost for additional licensing.  The transition of financial records will be implemented upon merger.  Uniform financial and administrative policies will be adopted following merger. Page 17 of 44

 BCIFR has a Collective Bargaining Agreement with Local 4522 in effect through September 30, 2016. NNFD has a Collective Bargaining Agreement Local 2297 in effect through September 30, 2015. While any matters relative to the unification of the two local fire unions, and wage and benefit matters are subject to negotiation pursuant to Chapter 447, Florida Statutes, it has been indicated by both local fire unions that there is support for unification of the two independent special fire control districts, which may result in a unified collective bargaining agreement being achieved within five years. Wages and benefits would be equalized through a multi-year tiered process. Any harmonization costs resulting from such unification would be allocated to the appropriate service delivery area.  Pension plan unification will occur as follows: o All general employees will be members of the Florida Retirement System, as general employees of BCIFR and NNFD are currently designated. Any general employee ineligible for participation in the Florida Retirement System shall participate in the 401(a) plan currently available to NNFD general employees ineligible for participation in the Florida Retirement System. o All elected officials will be members of the Florida Retirement System, as elected officials of NNFD are currently designated. Any elected official ineligible for participation in the Florida Retirement System shall participate in the 401(a) plan currently available to NNFD elected officials ineligible for participation in the Florida Retirement System. o Current employees designated as “Special Risk” (State Certified sworn firefighters) will have a one-time election to either remain as participants in the Florida Retirement System (“FRS”) (Special Risk Category), as all special risk employees of BCIFR are currently designated and as those employed by NNFD prior to January 1, 1996 are designated, or as participants in the NNFD Chapter 175 Firefighter Pension Plan, as all sworn employees of NNFD hired after January 1, 1996 are designated. Such election shall be effective as identified in Chapter 175, Florida Statutes. Any current employee of BCIFR or NNFD opting to leave FRS and enter into the Chapter 175 Firefighter Pension Plan will freeze his or her current benefit earned in the FRS plan and enter into the Chapter 175 Firefighter Pension Plan as a new member, subject to the vesting requirements. Any retirement benefit earned in the FRS will not be assumed and transferred to the Chapter 175 Firefighter Pension Plan. All future employees of the newly merged district designated as Special Risk shall be participants in the NNFD Chapter 175 Firefighter Pension Plan. As reflected in the NNFD’s Chapter 175 Pension Plan (“the Pension Plan”) Actuarial Page 18 of 44

Valuation dated May 6, 2013, the Governmental Accounting Standards Board (“GASB”) Funded Ratio applicable for the fiscal year ending 9-30-14 is 100.2%. The Federal Accounting Standards Board (“FASB”) Funded Ratio for the fiscal year ending 9-30-14 is 143.2%. Even under the GASB funding requirements, which are far more stringent than the FASB, the Plan is fully funded and financially solvent. In fact, the contribution rate for NNFD required employer contributions to the Plan have decreased from 29.20% to 18.31% over the last 4 years, and has been identified as 13% in the Actuarial Valuation dated May 5, 2014. On the other hand, the legislatively determined contribution rate for the Florida Retirement System for special risk class employees is currently at 19.06%, and will increase July 1, 2014 to 19.82%. In September of 2012, NNFD engaged the actuarial firm of Foster & Foster to actuarially determine the impact on the Pension Plan of adding 40 firefighters over a 6 year period. Based on the results of this study, the percentage of contributions required by the employer decreases as the firefighters are added. Therefore, it has been determined that it is more cost effective for new employees of the merged district to be participants in the Pension Plan. Contractual Agreements and Benefits The following comparison summary is designed to provide the reader a general understanding of the collective bargaining process for public employees in Florida and to show comparison between both NNFD & BCIFR collective bargaining agreements. Background  1968 - The “right to work” section of the Florida Constitution was rewritten. The new section, which is still in effect, states: Right to work. The right of persons to work shall not be denied or abridged on account of membership or nonmembership in any labor union or labor organization. The right of employees, by and through a labor organization, to bargain collectively shall not be denied or abridged. Public employees shall not have the right to strike.  1969 - The Florida Supreme Court upheld the new constitutional provision guaranteeing the right of public employees to bargain collectively. All employees in Florida, including those employed by the State of Florida or local government, now have the right to bargain collectively.  1974 - The Florida Legislature passed statewide legislation regulating collective bargaining for public employees. The law can be found in Florida Statute books as Part II of Chapter 447. This law has two basic purposes: to encourage cooperation between government and its employees and to protect the

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

public from the interruption of government services resulting from strikes by government employees Special districts are the public employers of their employees.

Each Collective Bargaining Agreement been negotiated and approved by their respective commissioners (samples below). If merger is approved the administration would begin the collective bargaining process to create a unified bargaining agreement, which would coincide with the duration of current agreements. Collective Bargaining Agreement Represented by Recognition by Public Employee Relations Commission(PERC) Job Classification

Management Rights & Public Employee Rights Payroll Deductions Union Business

Personal Time Off(PTO): BCIFR Vacation & Sick: NNFD Health Insurance Retirement Hours worked Salaries

NNFD(2012-2015)

BCIFR (2013-2016)

IAFF Firefighter, Engineer, Lieutenant, Captain, Battalion Commander, Fire Inspector, Inspector II (Lt), Deputy Fire Marshal, Fire Marshal, Instructor I, Instructor II Battalion Chief & Logistic officer Chapter Florida Statue 447

IAFF Firefighter, Driver Engineer, Lieutenant and Fire Inspector

24 Pay periods Bargaining Unit may have up to 4 members granted time off to conduct negotiations. Two (2)Additional members may added if manning is maintained

26 Pay Periods Bargaining Unit May have up to 2 members granted time off to conduct negotiations

See Exhibit C

See Exhibit C

See Exhibit D Chapter 175 Plan Shift: 24/48 Non shift 40hr See Exhibit E

See Exhibit D Florida Retirement System Shift: 24/48 Non-shift 40hr See Exhibit E

Chapter Florida Statue 447

Fire Prevention BCIFR Current Fire Prevention Activities BCIFR has 1 Inspector and 1 Public Outreach Coordinator assigned to the BCIFR Fire Page 20 of 44

Prevention Bureau with an average experience level of 8 years. In addition, the Fire Chief (certified Inspector for 19 years) currently serves as its Fire Marshal. Fire Marshal. The BCIFR Fire Prevention Bureau is divided into two divisions (Prevention/Inspection and Public Education/Outreach) and is responsible for conducting annual inspections, occupational licensing inspections, new construction inspections, public education/training and fire investigation services. The current staffing levels allows BCIFR to provide 43 annual, occupational and new construction inspections and 314 varied inspections services within the BCIFR. In addition, through a variety of Public Education programs, the BCIFR Fire Prevention Bureau personnel delivered vital Fire and Life Safety messages to 13,699 members of the BCIFR community and Collier County. The District provided the following services to the residents of the BCIFR Community:  Inspections Division – Total Provided/Completed 69 Annual and Occupation licensing inspections, New Construction inspections, Notice of Compliance (new, tenant and remodel) and Fire Investigations  Additional Responsibilities – Total Provided/Attended 404 Burn Permit Inspections, Engineering Inspections (sprinklers and alarms, Notice of Violations, Flow Tests, Night Inspections, Occupant Load Calculations, Special Event Inspections, Crowd Manager Training, Juvenile Fire Setter Program, Crew Training, Pre-Incident Plans and Meetings  Public Education – Total Population outreach - 7558 o Fire and Life Safety Presentations, Extinguisher training, Stations Tours, Public School Interactions – EDITH, Read to Children and General Fire Safety Education, Drowning Prevention, Car Safety Seats and Slip and Fall Prevention NNFD Current Fire Prevention Activities NNFD currently has 1 Deputy Chief and 9 inspectors assigned to the NNFD Fire Prevention Bureau with an average experience level of 12 years. The NNFD Fire Prevention Bureau is divided into three divisions (Existing, New Construction and Public Education) that are responsible for conducting annual inspections, occupational licensing inspections, new construction inspections, fire investigations and providing public education. The current staffing levels allowed the NNFD to provide 8,554 annual, occupational and new construction inspections and 1,366 varied inspections services Page 21 of 44

within NNFD. In addition, through a variety of Public Education programs, the NNFD Fire Prevention Bureau personnel delivered vital Fire and Life Safety messages to 15,972 members of the NNFD community and Collier County. The District provided the following services to the residents of the NNFD community:  Existing Building Division – Total Provided/Completed 3496 Annual and Occupation licensing inspections, Engineering Inspections (sprinkler and alarms), Key Box placement, Existing building investigations, Notice of violations, Night Inspections, Occupant Load Calculations, Special Event inspections, Investigations, Crowd Manager Training, Juvenile Fire Setter Program and Meetings  New Construction Division – Total Provided/Completed 6424 New Construction Inspections, Notice of Compliance (new, tenant and remodel)  Public Education – Total Population outreach – 15,972 Fire and Life Safety Presentations, Extinguisher training, Stations Tours, Public School Interactions – EDITH, Read to Children and General Fire Safety Education, Drowning Prevention, Car Safety Seats and Slip and Fall Prevention Combined Fire Prevention Activities The Fire Prevention Division will be supervised by the Deputy Chief of Fire and Life Safety/Fire Marshal. The combined benefits of merger provide an efficient, effective and quality service for today and tomorrow. The realization of scale economy achievements through allocative efficiency service delivery includes the following:  One Deputy Chief/Fire Marshal position – full time dedicated to the position, with a resultant salary/benefit cost avoidance of approximately $100,000 (in addition to the “hard cost” savings identified in the plan).  Increase in daily staffing capabilities to increase annual inspections to 40% of the existing structures within the merged district as per Chapter 633, Florida Statutes (increase from 33%) and improve new inspection response times to within 24 – 36 hours (currently 24-48 hours).  Additional resources (equipment and personnel) to provide support to the public education programs and increase the total population served by 10% (insert numbers here).  Improvements in technology to improve record keeping and monitoring of services provided. Page 22 of 44

 Investigation services will be enhanced with 1 inspector being given the responsibility to oversee investigations and compile the appropriate reports.  An available team of investigators (4 total) will be established within the existing personnel.  Juvenile Fire Setter certified instructor will oversee the program and eliminate the need for additional personnel to receive the certification and with the benefit of additional inspectors/investigators reduce the amount of overtime currently realized by 25%.  The plans review will be conducted in house – which will provide a more effective service to the end-user as it relates to building construction and streamline to communications between inspectors, plans reviewers and the merged district’s customers  Plans review in-house will allow for inspectors to work directly with the reviewers and allow for a more effective field inspection process.  Increase in Fire Prevention / Fire Inspection / Fire Investigation levels of service to meet the demands of growth and special events. Transitional Plan  Combining of personnel and assignments will be completed.  Combining of information technology and record keeping systems will be instituted.  Investigation Branch will be developed and implemented.  Existing policies, procedures, service fees and ordinances will be integrated, as per Florida Statutes, and completion is expected within the first year. Fees will remain as currently set within each component district until such time as a new fee structure is adopted for the merged district. In summary, within the first year of engagement, the transition from two Fire Prevention Bureaus into one Fire and Life Safety Division will be complete. The enhancement to the Fire Prevention Activities will allow for a more cohesive approach and delivery for public. The merging of these two districts will allow the merged district that experienced growth in the past and fought to keep pace with it, to share their knowledge and experience to the new growth area as the pendulum swings eastward. As the merged district, the combined Fire and Life Safety Division will be ready for the growth and be able to maintain continuity of operations while providing an effective, efficient and quality level of service. Exhibit F – Current and Projected Fire and Life Safety Organization Charts

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Operations BCIFR currently operates with 24 uniformed shift personnel assigned to three shifts, operating from 2 stations, as follows: 1) 8 personnel on A-shift; 2) 8 personnel on Bshift; and 3) 8 personnel on C-shift. Uniformed shift personnel work 24 hours on-duty with 48 hours off - this work schedule equates to a 56.33 hour work week, 112.66 hours per pay period, and 2,704 annual work hours. This equals 64,896 annual labor hours (excludes OT hours) to handle 1,475 annual service calls for a full-time resident population of 13,724 during the 2013 calendar year. To handle the 1,475 annual service calls throughout the District’s 194 square miles, the BCIFR provides the following: 1) Fire Suppression forces, 2) Basic Life Support, 3) Advanced Life Support via Agreement with CCEMS, 4) Awareness Level Hazardous Materials Response, 5) Public Safety Rescue Swimmer, 6) Full-Time Fire Prevention Bureau with Florida State Certified Fire Investigator / Inspector, and 7) a Full-Time Public Education and Community Outreach Division. BCIFR operates a variety of apparatus with both stations operating one Engine Company, one Water Tender, a quick response Medical & Fire Attack truck, and one military style Brush Truck 2 – staff takes the appropriate apparatus based on the call – 1 unit at each station is currently fully staffed with BCIFR personnel. The level of response, as well as the apparatus deployed for various calls, varies with the call reference, for greater efficiency in the utilization of personnel and district apparatus. In addition, in the most recent ISO evaluation (2013), BCIFR was given a rating of “4” for all residence / business within 5 road miles of the fire stations. The current station and apparatus configurations allowed BCIFR during the 2013 calendar year to achieve a district-wide average response time of 7.81 minutes, for all call types, as identified in the Florida State Fire Marshals Annual NFIRS report. NNFD Current Shift Operations NNFD currently operate with 110 uniformed shift personnel split into 2 Battalions, operating on 3 shifts, from 7 stations (with an 8th under construction) allocated as follows: 1) 37 personnel on A-shift; 2) 37 personnel on B-shift; and 3) 36 personnel on C-shift. Uniformed shift personnel work 24 hours on-duty with 48 hours off - this work schedule equates to a 56.33 hour work week, 112.66 hours per pay period, and 2,704 annual work hours. This equals 297,440 annual labor hours (excludes OT hours) to handle 13,742 annual service calls with 16,508 apparatus responses for a full-time resident population of 95,000 during the 2013 calendar year. To handle the 13,742 annual service calls throughout the District’s 70 square miles, Page 24 of 44

NNFD provides a full complement of emergency service platforms that include the following: 1) Fire Suppression forces, 2) Basic and Advanced Life Support, 3) Operational Level Hazardous Materials Response, 4) Technical Level Hazardous Materials Response, 5) Technical Rescue capabilities consisting of High-Angle, Structural Collapse, and Trench Rescue, 6) Boat Rescue with fire pumping capabilities, 7) Dive Rescue, 8) Full-Time Fire Prevention Bureau with Florida State Certified Fire Investigators, and 9) a Full-Time Public Education and Community Outreach Division. In addition, in the most recent ISO evaluation NNFD was given a rating of “3” for all residence / business within 5 road miles of the fire stations. NNFD operates 9 front-line apparatus in the following manner: 1) Station 40 – One Engine Company and One Squad (minimum 5 personnel); 2) Station 42 – One Engine Company (minimum 3 personnel); 3) Station 43 – One Ladder Company (minimum three personnel); 4) Station 44 – One Engine Company and One Ladder Company (minimum 6 personnel); 5) Station 45 – One Engine Company (minimum 5 3 personnel); 6) Station 46 – One Engine Company (minimum three personnel); 7) Station 47 – One Ladder Company (minimum three personnel); and two shift Battalion Chiefs (BC 40) and (BC 41) operating from Stations 40 and 45. The current station and apparatus configurations allowed NNFD during the 2013 calendar year to achieve a district-wide average response time of 6.74 minutes, for all call types, as identified in the Florida State Fire Marshals Annual NFIRS report. Combined Operational Benefits The combined benefits of merger provide an efficient and effective service for today and tomorrow. The realization of scale economy achievements through allocative efficiency operations includes the following components:  Minimum staffing of all fire apparatus of 3  Increase in water resource capabilities for non-hydrant areas through 2 additional water tenders  Increase in daily staffing personnel to handle service calls, thus reducing overtime  Improvement in response times  Increase in number of on-duty special response team members available to handle hazardous material, dive and boat operations, and technical rescue calls – this too reduces overtime while maintaining adequate staffing levels  Increase in staging options during major disaster events (i.e. hurricanes)  Increase in brush fire apparatus & suppression capabilities  Additional Incident Management Team personnel to lead major disaster events

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 Additional Incident Management Team personnel to assist at the County’s EOC during major disaster events  Increase in fleet maintenance facilities & certified EVT mechanic  Increase in available reserve apparatus during repair and maintenance  Increase in community outreach and public education  Image Trend (report writing) / Tele-Staff (scheduling) Improved level of service can be achieved through allocation savings realized from the merger, during the first 5 years:  Additional 6 firefighters added in Year 2 to staff 2 quick response vehicles, one in

    

BCIFR and one in NNFD service delivery area, transitioning an existing unit currently in service from part-time to full-time. These two additional units will improve the availability of all responding apparatus (i.e. – in BCIFR the quick response unit being staffed full time will allow for both Attack trucks to be staffed full time reducing wear and tear on the larger more expensive engines and allowing the engine to remain available for a second call) without dropping minimum staffing of fire apparatus below 3. Presently one unit is up at Station 10 with the a BCIFR FF/EMT/Medic and a CCEMS FF/Medic, the unit at Station 12 is utilized only dependent upon the call type, and when used, there is no other unit fully staffed and available for response in that zone. Similarly the same benefit would be realized in NNFD. Additional 4 firefighters added in Year 5, providing an additional beach response unit in NNFD and increasing staff to eliminate potential overtime in BCIFR Increase in HazMat Technicians daily staffing from 7 to 10 Increase in Technical Rescue Team daily staffing from 7 to 10 Increase in Dive Team response members from 5 to 8 Increase in number of units available to respond from 11 to 14

The BCIFR volunteer program will remain as is currently in place. There is no expectation that volunteer members will be automatically converted to paid personnel upon a merger. As positions for firefighters become available within the merged district, BCIFR volunteers will be encouraged to apply and given preference points in accordance with current policy. All volunteers will be subject to the same testing and requirements as any outside candidate. Both Unions, Local 4522 (BCIFR) and 2297 (NNFD) have stated their position of maintaining the existing program as is currently administered. Transitional Plan Upon merger finalization, both independent special fire control districts will incorporate operational components to include the following:  Run card changes for closest unit response Page 26 of 44

 Addition of 1 fire station in the Heritage Bay/Twin Eagles area coupled with one Engine. This station is a planned addition for NNFD, but will now be a joint station, benefitting both service delivery areas.  Blending of tactics and strategies  Addition of 1 eastern Battalion to enhance our Incident Management System Exhibit G – Current Operations Organization Charts TRAINING BCIFR Training Division BCIFR has a training division made up of an Operations/Training Captain with support from the Lieutenants, Assistant Chief and Fire Chief (6 of which are Instructor Certified). Currently the training division deploys 1 training opportunity per day, on a three day rotation which starts on Tuesdays. In addition to the hands on trainings noted, there is component computer based training and District Familiarization training each month. All training is arranged, scheduled and tracked by the Operations/Training Captain. These trainings are designed to both meet the specific needs of the community and the standards that are set by ISO, OSHA, and NFPA. The Captain, in conjunction with the Assistant Chief coordinates the budget for the training division. NNFD Training Division & Center NNFD has a training division made up of a Deputy Chief of Safety, Training and Special Operations, Battalion Commander of Training and a Captain of Training all of which are Certified State Fire Instructors. Currently the training division deploys two training opportunities per day, on a three day rotation which starts on Tuesdays. These trainings are designed to both meet the specific needs of the community and the standards that are set by ISO, OSHA, and NFPA. NNFD is also the location of the State recognized regional training center for both EMS and Fire Training. Station 45 located at 1885 Veterans Park Drive houses three fully equipped training rooms, 1 multi-story building simulator, computer monitored burn room with roll over simulator, multiple live fire props and drafting site. The site meets all State Training Requirements and is inspected annually for both EMS and Fire by both the Department of Health and the State Fire Marshalls Office. Currently there are two fully accredited fire academy programs which are Directed and Coordinated by the Deputy Chief of Safety, Training and Special Operations. Special Operations is made up of four disciplines and is a part of training division. The disciplines can be identified as Hazardous Material Team, Technical Rescue Team,

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Boat Team, and Dive Rescue Team. All team training is arranged, tracked and budgeted by the Deputy Chief of Safety, Training and Special Operations. Combined Training and Special Operational Team Benefits As with Operations, the Training Division will have many benefits that may be immediately realized.  The increase in apparatus, personnel and training staff will allow for better coverage during all training activities.  Target Solutions Software (tracking, training and activities)  The increase in certified training officers, working a 40 hour schedule, will enable them to work more directly together and increase safety during training evolutions.  Joint training of the firefighters will increase the efficiency and effectiveness in mitigating large scale events (high-rise/wildland urban-interface fires, natural disasters, etc).  Live fire training opportunities will increase, as many structures that are permitted for demolition are within the eastern corridor of the new district and present realistic scenarios.  Increase in staffing will allow for a greater pool of Special Team Members in all four disciplines. Transitional Plan Currently, BCIFR and NNFD both operate under the same Standard Operating Procedures (“SOP”). Part of the transition will be to increase BCIFR firefighter efficiencies/awareness in high-rise operations while also increasing NNFD firefighter efficiencies/awareness in wildland urban interface firefighting, in addition to the following:  All personnel have a basic training related to high-rise and wildland urban interface fires. More advanced training can be done in house using currently certified instructors which are employed by both districts, at no additional cost.  All special operations team training and certifications are performed in-house as NNFD has nationally recognized instructors in all four disciplines.  The training of new team members for all four teams is a continual process that goes on within NNFD and therefore the training of additional personnel who choose to participate, will not have a financial impact, as this too can be done inhouse.  The blending of both districts training schedules will allow for a more effective use of training staff. Exhibit H and I – Current and Proposed Training Division Page 28 of 44

EMS BCIFR Office of the Medical Director BCIFR does not have an OMD as part of the current organization. BCIFR operates a BLS service through the use of Big Corkscrew FF/EMTs and FF/Medics under the direction of the Collier County Medical Director. In addition, BCIFR operates an ALS Engine, through Interlocal Agreement with CCEMS. The ALS engine is currently staffed by a Collier County EMS FF/Medic and BCIFR FF/EMTs or FF/Medics. The BCIFR FF/Medics are restricted in their use of paramedic skills through County Protocol, as BCIFR does not hold a COPCN, but work with the CCEMS FF/medics to provide and assist with patient care. North Naples Office of the Medical Director The North Naples Office of the Medical (NNOMD) is a physician lead effort under the EMS Division. The NNOMD is responsible for the comprehensive medical oversight of all non-transport clinical care provided by the Emergency Medical Technicians and the Paramedics within NNFD.. The providers of the NNOMD also interface with five (5) fire departments in Collier and Lee County, the Collier County EMS System, four (4) local Hospitals and the Lee County Trauma Center. The Physician leaders of the NNOMD include the following:  Dr. Jeff Panozzo, Medical Director  Dr. Paul Hobaica, District Physician/Associate Medical Director  Dr. James Augustine, Associate Medical Director  Dr. Richard Juda, Associate Medical Director  Dr. Debbie Lopez, Associate Medical Director Mission State: “To provide outstanding clinical oversight to all Out of Hospital Emergency Care Providers under the jurisdiction of the NNFD OMD, so together they can deliver the most compassionate and professional clinical patient care to all residents and visitors of Collier County. There are seven principle areas of responsibility include:  Clinical Practice of Medicine: Clinical care is the single most important and primary function of any EMS System. Strong medical leadership and the collective clinical experience of its providers is the fundamental driving force behind the clinical practice of all providers under the umbrella of the NNOMD.  Quality Improvement/Performance Measurement: Quality Improvement and Performance Measurement for the NNOMD shall include prospective,

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retrospective and concurrent review of all aspects of the system that potentially impact patient care.  Provider of Continuing Education: Continuing Education (CE) for the Emergency Medical Technicians and Paramedics within the NNOMD systems will be developed in cooperation with the local hospitals and the medical community. The NNOMD (NNFD) is a State of Florida certified center of continuing education and is responsible for the approval of all medical education for all providers encompassed within the NNOMD.  Regulatory Functions: The NNOMD and its Medical Directors are required under Florida Statue 401 and Administrative Rules 64J-1 to perform several administrative regulatory functions. These include the development of medically correct protocols, training programs, and the establishment of a quality assurance program. In addition, the NNOMD will have direct oversight over the Emergency Medical Technicians and Paramedic’s credentialing process, benchmarking, the development of performance measures, the approval of patient care equipment, administration of the patient care information system, submission of NEMSIS compliant data to the state, administration of the departments Infection control and exposure program and The Health and Safety program.  Public Education and Outreach: An important and commonly undervalued part of any emergency medical services system is informing and educating the public about issues that may pose a threat to health or safety. The NNOMD shall collaborate with individual organizations to develop community public education programs..  Research: Clinical Research conducted in the EMS System is an important part of evaluating the evidence associated with field clinical care. Research may be specific to the EMS System or in collaboration with other healthcare entities. Office of the Medical Director Benefits and Transitional Plan Currently, the NNOMD oversees over 150 individual providers, whom respond to over 7,500 medical calls and is poised as part of the transition process to include BCIFR’s additional 28 EMT’s and Paramedics.    

Transition BCIFD to ImageTrend Fire/EMS Recording software Incorporate BCIFD into the NNOMD quality assurance program Incorporate BCIFD into the NNOMD Benchmark and Performance Standards Incorporate BCIFD into the NNOMD Continuing Education program

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 Incorporate all required policy & procedure to ensure compliance with Florida State Statue 401 and FAC 64J-1, Exposure Controlled Standards and other areas of regulatory responsibilities of the NNOMD. Exhibit J – Current and Projected EMS Organization Charts Support Services BCIFR Support Services/Logistics BCIFR has a Support Services/Logistics Division made up of 1 EVT Fleet Mechanic. The District’s Administrative Assistant provides assistance with billing, tracking and ordering of supplies for the Mechanic, in addition being responsible for ordering/distributing daily uniforms, station supplies and medical supplies. The Assistant Chief is responsible for the department capital asset and depreciation inventory for auditing standards, radio communications and is the overall supervisor for the support services/logistics division. BCIFR has 31 personnel, 8 apparatus, 6 staff vehicles, 1 utility vehicle, 2 trailers and 4 facilities that the support services/logistics division supports. NNFD Support Services/Logistics NNFD has a Support Services/Logistics Division made up of 1 EVT Fleet Mechanics, 1 Master EVT Technician, 1 Facilities Coordinator , 1 Facilities Technician, 2 Operations personnel, 1 Computer Technologist and supervised by a Deputy Chief. An Administrative Assistant provides clerical support to the Support Services/Logistics division. The EVTs are responsible for the maintenance and repair of all frontline and specialty apparatus and outside contractors are used to perform routine services on the staff vehicles. The Facilities personnel perform minor repairs and maintenance of the facilities and coordinate and oversee all repairs performed by outside contractors. The operations personnel work with fire suppression equipment and supplies, uniforms, radios, capital asset and depreciation inventories for auditing controls. The computer technologist maintains the functionality of all computer systems within the organization and works directly with any required outside vendors for upgrades, service or repair. NNFD has 154 personnel, 8 facilities, 10 apparatus, 38 specialty, support and staff vehicles, 21 special response and transport trailers, 2 beach rescue units, 1 fire boat and 3 water rescue units that the support services/logistics division is accountable for. Combined Support Services/Logistics Benefits that will be realized by the Support Services/Logistics Division include but are not limited to:  3 EVT Mechanics will allow for a more efficient turn-around of downed apparatus, and allow for more preventative maintenance to occur as their focus will solely be on apparatus and vehicle maintenance and repair. Page 31 of 44

 2 Facilities Technicians will increase efficiencies by combining contracts and working with existing personnel to complete assigned tasks and maintain records of service.  1 Computer Technologist will be able to provide service to both agencies, thereby eliminating the need to hire a second provider.  Operations positions currently in the support services/logistics division can be absorbed by other members of support services/logistics through attrition, creating a leaner, more efficient division.  Only 1 Administrative Assistant would be needed to assist the support services/logistics division, which would allow the other to better perform their regular duties in a more efficient manner. Transitional Plan The combining of the Support Services/Logistics Divisions will allow for a more streamlined use of personnel, allow for greater opportunities for bulk purchase and provide an more efficient and quality division overall.  All computer software, programming and training will be updated as necessary to maintain continuity of operations  Uniforms, equipment and supplies will be systematically integrated throughout a period of years (based on life-expectancy of the items) to allow for uniformity of appearance, operation and cost.  The record keeping and inventory data will be reviewed, combined and updated.  The blending of both independent special fire control districts fleet maintenance schedules will allow for a more effective use of the mechanics – and can begin immediately upon the effective date of the merger. Exhibit K – Current and Projected Support Services Organization Charts SECTION VI Fiscal Estimate of Potential Cost or Savings as a Result of Merger 189.074(2)(a)6, Florida Statutes)

(section

A detailed analysis has been completed, first by analyzing projected five year revenue and expenditure projections for BCIFR and NNFD individually and then jointly to determine cost effectiveness of a potential merger (Exhibits N through T). In determining potential savings resulting from the merger, emphasis was placed on the General Fund (or operating account) for each independent special fire control district, Page 32 of 44

since the other funds (such as the Impact Fee Fund and the Inspection Fee Fund) are restricted in use and generally supported by their funding sources. Property tax and other revenue assumptions utilized remained constant for individual and joint analysis. BCIFR assumed an increase in taxable property value of 11.4% in Year 1 (14-15) based on preliminary taxable value provided by the Collier County Property Appraiser, and 7% per year for Years 2 through 5, which includes both appreciation in current property value and projected growth. NNFD assumed an increase in taxable property value of 5.4% in Year (14-15) based on preliminary taxable property value provided by the Collier County Property Appraiser, and a 3% increase per year in Years 2 through 5, which includes both appreciation in current property value and projected growth. For the individual district analysis, expenditures were estimated based on the 2013-14 fiscal year budgeted expenses for each independent special fire control district, and the following factors:  Operating expenses for both BCIFR and NNFD were increased annually by 2.74%, the average Consumer Price Index increase in all products over the last 10 years. Both BCIFR and NNFD assumed a 5% increase in health insurance costs, and personnel and expense increases pursuant to the existing Collective Bargaining Agreement in effect.  NNFD assumed a retirement rate of 70% of all those bargaining unit employees eligible, either by age or length of service, with those retiring replaced by new employees, and capital expenditures pursuant to the equipment, vehicle and apparatus replacement schedules. Additionally, provision is made for 12 new firefighters in Year 2 (2015-2016) or alternately Year 5 (2018-2019) to provide staffing for the anticipated Station near Heritage Bay/Twin Eagles. A cost allocation model to equitably distribute costs of the merged district has been developed and all General Fund budgeted expenditures have been identified as either direct or indirect costs. Direct costs have been allocated to the component district in which it was budgeted. Indirect costs have been allocated dependent upon the specific cost center. The methodology employed is dependent upon the unit of analysis for a given cost allocation center. Exhibit L Personnel expense allocations were calculated as follows:  Chief Officers – A matrix was developed identifying the annual salary and

benefits cost for each Chief Officer, the weighted activities for each position, the Page 33 of 44

current cost allocation of each activity, a cost allocation factor, and then an assignment of cost to BCIFR and NNFD based on the employing district.  Support Personnel – For those support employee costs not identified as direct costs, the following cost factors were identified: o Number of employees (HR/Payroll/Benefit functions) o Square footage of stations and facilities (facilities personnel) o Number of apparatus and vehicles (vehicle maintenance personnel) o Number of annual inspections (fire prevention bureau)  Operational Personnel – all current operational personnel at station level have been identified as direct costs of the employing district. The cost for future operational employees hired by the merged district will be allocated based upon call volume.

Allocation of operating expenses was calculated using the following cost factors:      

Call Volume Square footage of stations and facilities Number of employees Annual Budget Property Value Number of apparatus and vehicles

Where appropriate, multiple factors were utilized with weighted significance. The financial analysis performed identifies the hard cost savings that will be realized as a result of the merger. An estimated $2.3 million will be saved in the first 5 years. Thereafter, annual savings will be over $1 million per year. In the first 5 years alone, 5 management and administrative positions will be eliminated. A portion of the savings realized in the first 5 years can be allocated to the addition of 10 firefighters, 6 in Year 2 and 4 in Year 5, with savings retained in reserves to accommodate the future funding for these additional firefighters. Four of the 9 current Chief Officers and 1 administrative employee are scheduled to retire within the first 5 years of the merger. Those individuals are Fire Chief Orly Stolts – October 1, 2016, Assistant Chief Michael Ginson – June 30, 2017, Executive Fire Chief Rita M Greenberg – June 30, 2019 and Deputy Chief Michael Swanson – June 30, 2019 and Public Information Officer Jerry Sanford – October 1, 2018. The management structure will be reengineered and with responsibilities reallocated in order to eliminate the positions of Executive Fire Chief, the Assistant Chief of Support Services, the Deputy Chief of Training, the Captain/(BCIFR Deputy Chief) of Training and Operations, and the Public Information Officer. While retirement is not mandatory, the merged district’s governing body will eliminate the positions at the time retirements is expected to ensure the position will be vacated. Once the identified positions are vacated they will not be filled. Page 34 of 44

As evidenced by the financial analyses, the merger will result in a total hard cost savings of an estimated $2.3 million in the first five years alone in just the General Fund. This savings may be used in part to add additional units and operational personnel to improve the level of service in both districts, opportunities for a reduction in taxing rate for each service delivery area, or a combination thereof. The projected savings in the first five years for BCIFR is $974,084, and is a result of  Reduction in personnel costs related to health insurance resulting from the change in designation from a small employer with less than fifty employees (savings only available through merger, not interlocal agreement).  Reduction in retirement costs related to receipt of State Premium Tax Funds (savings only available through merger, not interlocal agreement).  Elimination of two Chief Officer positions through attrition.  The elimination of information technology contract services resulting from utilization of NNFD Information Technology Administrator. It must be noted that there are potential projected wage and benefit harmonization costs which have not been included in the financial projections attached. These harmonization costs are subject to the collective bargaining process, and could result in an annual cost of up to $389,000. However, these costs will be funded through property value increases generated above the conservative estimates of growth and appreciation reflected in the financial projections, and implemented and managed through the annual budgetary and collective bargaining processes. In the case of NNFD the projected savings in the first five years is $1,329,126, and is a result of:  Reduction in annual retirement expenses due to the receipt of State Premium Tax Funds. NNFD currently has a Chapter 175 Firefighters’ Pension Plan. Pursuant to Ch. 175, Florida Statutes, this plan is partially funded by the tax on property insurance paid by all policy holders. The State Premium Tax Funds currently collected and received from within BCIFR are retained by the State of Florida, since BCIFR does not participate in a Chapter 175 Firefighters’ Pension Plan. If merger occurs, current members of NNFD’s Chapter 175 Firefighters’ Pension Plan would continue to participate in the plan, and all newly hired firefighters would enter into the plan. The merged district would then receive the State Premium Tax Funds from the BCIFR area currently collected and received by the State of Florida, resulting in a reduction of costs to the General Fund.  Elimination of two Chief Officer positions through attrition.  Elimination of public information officer position through attrition. Page 35 of 44

 Allocation of administrative and Chief Officer personnel costs to BCIFR.  Allocation of firefighter personnel costs for Heritage Bay/Twin Eagles station to BCIFR. In addition to calculated savings in the General Fund, it is anticipated that savings for the impact fee fund for the development of future infrastructure will also be realized. Future station sites planned by both component districts may be consolidated where practical. A 5-year financial analysis has been prepared reflecting the following: 





Identified savings of merger utilized to add 6 total firefighters in Year 2: three cost allocated to BCIFR and three cost allocated to NNFD, and 4 total firefighters in Year 5: two cost allocated to BCIFR and two cost allocated to NNFD New station added in Year 5, with 10% charge to BCIFR. This station is a additional station under discussion for NNFD with or without the merger; however, if merger occurs, cost sharing can occur. Millage rate reduction to 3.45 mils for BCIFR in Years 1 through 5 and 0.95 mils for NNFD in Years 1 through 5

Long Range Forecasting Financial estimates have been prepared identifying 10 and 20 year projections, again focusing on the General Fund (or operating funds). In order to determine future additions to taxable property value within BCIFR, Collier County Permanent Population Estimates and Projections – Countywide, prepared by the Collier County Comprehensive Planning Section June 7, 2013, the March 2013 Bureau of Economic and Business Research (“BEBR”) Report prepared by the University of Florida, and the 2005 Horizon Study prepared by the Collier County Growth Management Division were utilized. Pursuant to these sources, 55% of the estimated increase in population through 2034 will occur in the Eastern geographic area. Estimates for increase in BCIFR property value were calculated as follows:  Ten year projection (FYE 9-30-24) – Countywide population increase of 69, 112; 45% of that increase, or 31,100 is projected to occur in the Eastern geographic area. Of that growth, 30.7% is attributed to BCIFR geographic boundaries, based upon the countywide TAZ level; with an average of 2.39 persons to a household, 3,995 new residences are anticipated. Using an average taxable value of $200,000 per home, an estimated increase in taxable value FYE 9-30-24 is $798,970,711. Page 36 of 44

 Twenty year projection (FYE 9-30-34) – Countywide population increase of 57,620; 55% of that increase, or 31,493 will occur in the Eastern geographic area. Of that growth, 30.7% is attributed to BCIFR geographic boundaries; with an average of 2.39 persons to a household, 4,045 new residences are anticipated. Using an average taxable value of $200.00 per home, an estimated increase in taxable value FYE 9-30-34 is $809,067,029.  According to the sources noted above, the greater growth would occur in the first ten year period. However, for purposes of this analysis, the assumption was used that the greater growth will occur in the second ten year period, so the estimates for increases in property value used the greater growth in the second ten year period.  A 3% annual increase in existing property value was factored into the property value increase estimates.  No provision was made to increase the average home value over the course of the analysis.  An estimated $100,000,000 was included for an increase in property value as a result of commercial property development.  An estimated $30,000,000 was deducted from the growth projections to provide for 200 foreclosures at a cost of $150,000 per home.  The results of the calculations based on this methodology yielded: o Estimated property value FYE - 9-30-24 (10 Year Period) of $1,916,982,890 o Estimated property value FYE 9-30-34 (20 Year Period) of $3,826,972,994 Planning Consultants Van Buskirk, Ryffel and Associates, Inc. were engaged to review the long range population growth projections reflected in the financial analysis. Their report is attached is Exhibit N and confirms the conservative nature of the population growth and accompanying property tax revenue projections. NNFD expects growth within the NNFD geographical area to reach build out within the long range forecasting tem. Therefore, NNFD utilized the conservative increase in property value for the long range forecasting of 3% per year through 9-30-34. This 3% increase is reflective of both new growth and increase in existing taxable property value. To project long range cost increases for both BCIFR and NNFD in the first 10 year period, the Consumer Price Index (CPI) average increase over the last 10 years was utilized yielding a 3.6% annual increase in personnel costs and a 2.74% annual increase in operating costs. For Years 11 through 20, a 3% annual increase in total costs was utilized.

Page 37 of 44

Additional factors included in the long range forecasting costs estimates were:  NNFD: o Retirement of long term employees and replacement by lower cost new employees. o Full staffing of Livingston Road Station by FYE 9-30-15. o Full staffing for new station currently under discussion by NNFD – Heritage Bay/Twin Eagles area in FYE 9-30-16 (12 additional firefighters) o Use of State Premium Tax Funds for Chapter 175 Pension Plan from the BCIFR service delivery area o Current collective bargaining agreement requirements o Annual capital purchase requirements o Staffing for new station in 2028-2029 (Year 15)  BCIFR: o Future employees entering into Chapter 175 Pension Plan and use of State Premium Tax Funds from BCIFR service delivery area o Full staffing for new station in 2025-2026 (Year 12) – 12 additional firefighters o Current collective bargaining agreement requirements o Annual capital purchase requirements The projections for BCIFR and NNFD with and without merger are reflected in the Summary and Analysis for 10, 15 and 20 year periods, and are attached as Exhibit N. The long range forecasting estimates identify the following results: BCIFR:    

Year 5 ending cash reserves - Merger - $1,609,298 No Merger - $1,430,073 Year 10 ending cash reserves – Merger - $2,393,150 No Merger - $2,554,010 Year 20 ending cash reserves – Merger - $3,388,459 No Merger - $3,353,106 Millage Rates – Merger – 3.45 to 2.25 mils No Merger – 3.45 to 2.35 mils

NNFD:    

Year 5 ending cash reserves - Merger - $10,346,820 No Merger - $9,619,267 Year 10 ending cash reserves – Merger - $19,503,652 No Merger - $18,175,312 Year 20 ending cash reserves – Merger - $32,748,974 No Merger - $24,735,435 Millage Rates – Merger – 0.95 to 1.00 mils No Merger – 0.95 to 1.00 mils

For comparative purposes, the same millage rate was applied to the financial projections for BCIFR in the case of merger and no merger to determine the effect on service levels and cash reserves. It must be noted that any decision regarding millage rate rests with the elected officials. Any increase or decrease identified is subject to their decision, and is dependent upon Page 38 of 44

that board’s option to reduce service or staffing levels in lieu of raising millage. It must also be noted that the 20 year projections for NNFD result in cash reserves at the end of that period totaling $32,748,970, or 81% of projected expenses, which is an unusually high ratio of expense to reserves. That level of reserves could be reduced by the governing body on an annual basis by reduction in millage rates. The maximum millage rate of 1.00 mil was used in the long term analysis after the first 5 years for determination of financial stability in long term projections subject to multiple variables. Projected impact fees generated by the growth in BCIFR will fund the capital infrastructure to provide service. Operating and staffing costs are included in the General Fund projections.

SECTION VII Component Districts’ Assets, Liabilities, Indebtedness (section 189.074(2)(a)7 and 8, Florida Statutes) The component districts’ assets, liabilities, and indebtedness are identified below and reflect the fiscal year ending 9-30-13 audited government wide financial statements, prepared by each district’s independent auditor pursuant to Government Auditing Standards issued by the Comptroller General of the United States and the Governmental Accounting Standards Board (“GASB”). BCIFR ASSETS Total current assets Total noncurrent assets TOTAL ASSETS

$ 3,593,259 $ 3,793,923 $ 7,387,181

LIABILITIES Total current liabilities Total noncurrent liabilities TOTAL LIABILITIES

$ 173,345 $ 887,646 $ 1,060,991

NET POSITION Net investment in capital assets Restricted Unrestricted TOTAL NET POSITION (Assets minus liabilities)

$ 3,218,922 $ 402,726 $ 2,704,542 $ 6,326,190

Page 39 of 44

NNFD ASSETS Total current assets Total noncurrent assets TOTAL ASSETS

$14,442,617 $23,260,292 $37,702,909

LIABILITIES Total current liabilities

$ 1,260,251

Total noncurrent liabilities TOTAL LIABILITIES

$ 2,955,876 $ 4,216,127

NET POSITION Net investment in capital assets Restricted Unrestricted TOTAL NET POSITION (Assets minus liabilities)

$ 23,116,426 $ 7,615 $ 10,362,741 $ 33,486,782

Neither independent special fire control district has any bonded debt. Complete breakdown of the above available upon request. SECTION VIII Terms of Assumption and Disposition of Existing Assets, Liabilities and Indebtedness of Each District Jointly, Separately or in Defined Proportions (section 189.074(2)(a)9, Florida Statutes) All existing assets of BCIFR and NNFD shall wholly become assets of the merged district. However, General Fund cash reserves will be identified and maintained separately utilizing the cost allocation methodology as long as there are two separate taxing service delivery areas, ensuring neither District will fund the other until revenues in BCIFR allow taxing rates to be equalized. The provision for continuation of the cost allocation utilization, maintenance of separate budgets and cash reserves will be included in the new merged districts’ enabling legislation. All valid and lawful debts and liabilities existing against BCIFR and NNFD, or which may arise against the merged district, which are valid and lawful debts or liabilities against BCIFR and NNFD, are debts against or liabilities of the merged district, and shall be assumed wholly by the merged district. All bonds, contracts and obligations of BCIFR and NNFD that exist as legal obligations Page 40 of 44

are obligations of the merged district, and all such obligation shall be issued or entered into by and in the name of the merged district. There shall be no disposition of existing assets, liabilities or indebtedness. All terms of assumption and novating of contracts and obligations shall occur on the effective date of the merger.

SECTION IX Terms for Common Administration and Uniform Enforcement of Existing Laws Within the Proposed Merged Independent District (section 189.074(2)(a)10, Florida Statutes) As provided for in Chapter 189.074(6)a, Florida Statutes, all rights, privileges, and franchises of each component independent special district and all assets, real and personal property, books, records, papers, seals and equipment, as well as other things in action, belonging to each component independent special district before the merger shall be deemed as transferred to and vested in the merged independent district without further act or deed. Administration and enforcement of any existing rules, ordinances or laws shall be as provided for in Chapters 189, 191, 447 and 633, Florida Statutes. Any fees associated with existing rules, ordinances or laws shall not be increased simply as a result of the merger. Should the merged district determine a need to amend rules, ordinances or laws, amendments shall be in accordance with the provisions of Chapters 189, 191, 447 and 633, Florida Statutes.

SECTION X Times and Places for Public Hearings on the Proposed Joint Merger Plan (section 189.074(2)(a)11, Florida Statutes) Big Corkscrew Island Fire Control and Rescue District Public Hearing Location, Date and Time: Tuesday, August 5, 2014 6pm-8pm BCIFR Administration Headquarters 13250 Immokalee Road Naples, FL 34120 North Naples Fire Control and Rescue District Public Hearing Location, Date and Time: Monday August 4, 2014 6pm-8pm Page 41 of 44

Collier County Library Headquarters 2385 Orange Blossom Drive Naples, FL 34109 In addition to the Public Hearings noted above there will be community, civic group and HOA meetings held within the component districts throughout July, August, September and October. To request a meeting for your group, please contact Chelli at 455-1204 for BCIFR area or Lori at 597-3222 for NNFD area. SECTION XI Times and Places for a Referendum in Each Component District (section 189.074(2)(a)12, Florida Statutes) As provided for in section 189.074(2)(e)6, Florida Statutes, The merger may not take effect unless a majority of the votes cast in each component independent special district are in favor of the merger. If one of the component districts does not obtain a majority vote, the referendum fails, and merger does not take effect. Absentee Voting – upon request Deadline to request an absentee ballot is as provided by the Collier County Supervisor of Elections. Early Voting – October 23 – November 1, 2014, 9am-7pm, which may be amended by the Collier County Supervisor of Elections. Available as identified by the Supervisor of Elections, throughout Collier County. Election Day Voting – November 4, 2014, 7am-7pm Available at respective/assigned precincts within the Big Corkscrew Island Fire Control and Rescue District and North Naples Fire Control and Rescue District Boundaries.

SECTION XII Referendum Language to be Presented for Approval Florida Statutes)

(section 189.074(2)(a)12,

The referendum language presented to the Supervisor of Elections by August 26, 2014. The referendum question will be presented to the voters of BCIFR and NNFD on the General Election Ballot, November 4, 2014 and shall be as follows:

Page 42 of 44

“Shall Big Corkscrew Island Fire Control and Rescue District and North Naples Fire Control and Rescue District be merged into the North Collier Fire Control & Rescue District if the voter-approved maximum millage rate within each independent special district will not increase absent a subsequent referendum?” ____ YES ____ NO

SECTION XIII Effective Date (section 189.074(2)(a)13, Florida Statutes) The effective date of the merger, upon voter approval, is January 1, 2015.

Page 43 of 44

EXHIBIT INDEX Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Exhibit G Exhibit H Exhibit I Exhibit J Exhibit K Exhibit L Exhibits M Exhibit N

Merger Plan Attachments General Staff/Admin Charts Time Off Insurance Wages Fire Prevention Charts Operations Chart Training and Special Operations Chart Combined Operations and Training Chart EMS Chart Support Services/Logistics Chart Cost Allocation Model Long Range Projections Analysis for the North Naples Fire Control and Rescue District (NNFD) of NNFD Population Forecast and Assess Values for Ad Valorem Tax Revenues of the Big Corkscrew Island Control and Rescue District (BCIFD)

Page 44 of 44

-1

TRAINING/SAFETY D.C. Swanson (NNFD)

SUPPORT SERVICES A.C. Ginson (BCIFR)

Captain Watson (BCIFR)

OPERATIONS D.C. D’Angelo (NNFD)

EMS D.C. Aguilera (NNFD)

EXECUTIVE CHIEF Greenberg (BCIFR)

FIRE CHIEF Stolts (NNFD)

BCIFR/NNFD EXECUTIVE LEVEL

04/04/14

FIRE PREVENTION D.C. Ricardo (NNFD)

ADMIN SERVICES A.C. Bronsdon (NNFD)

EXHIBIT A -2

DEPUTY CHIEF OPERATIONS

DEPUTY CHIEF EMS

FIRE CHIEF

BCIFR/NNFD EXECUTIVE LEVEL 5-Year Projection

DEPUTY CHIEF FIRE PREVENTION

ASSISTANT FIRE CHIEF

04/30/14

EXHIBIT A -3

Cash Reserves $ 2,474,269 $ 1,987,582 $ 1,615,646 $ 1,367,821 $ 1,292,313

Cash Reserves $ 12,559,120 $ 11,284,011 $ 10,425,132 $ 10,120,217 $ 10,431,082

Cash Reserves $ 12,559,120 $ 11,173,693 $ 10,394,221 $ 10,009,627 $ 10,039,447

BCIFR - No Merger Year 1 Year 2 Year 3 Year 4 Year 5

NNFD - Merger Year 1 Year 2 Year 3 Year 4 Year 5

NNFD - No Merger Year 1 Year 2 Year 3 Year 4 Year 5

Ad Valorem $ 21,783,639 $ 22,437,148 $ 23,110,263 $ 23,803,571 $ 24,517,678

Ad Valorem $ 21,783,639 $ 22,437,148 $ 23,110,263 $ 23,803,571 $ 24,517,678

Ad Valorem $ 3,398,388 $ 3,636,276 $ 3,890,815 $ 4,163,172 $ 4,454,594

Ad Valorem $ 3,398,388 $ 3,636,276 $ 3,890,815 $ 4,163,172 $ 4,454,594

Other Revenue $ 1,126,517 $ 1,126,517 $ 1,126,517 $ 1,126,517 $ 1,126,517

Other Revenue $ 1,126,517 $ 1,126,517 $ 1,126,517 $ 1,126,517 $ 1,126,517

Other Revenue $ 70,150 $ 73,150 $ 73,150 $ 75,000 $ 75,000

Other Revenue $ 70,150 $ 73,150 $ 73,150 $ 75,000 $ 75,000

Expenditures $ (24,295,583) $ (24,343,137) $ (24,621,374) $ (24,900,268) $ (26,064,375)

Expenditures $ (24,185,265) $ (24,422,544) $ (24,541,695) $ (24,619,223) $ (25,728,459)

Expenditures $ (3,955,225) $ (4,081,362) $ (4,211,790) $ (4,313,680) $ (4,391,832)

Expenditures $ (3,828,038) $ (4,153,887) $ (4,159,942) $ (4,149,714) $ (4,483,084)

491,726

Ending Cash Reserves $ 11,173,693 $ 10,394,221 $ 10,009,627 $ 10,039,447 $ 9,619,267

Ending Cash Reserves $ 11,284,011 $ 10,425,132 $ 10,120,217 $ 10,431,082 $ 10,346,818

Ending Cash Reserves $ 1,987,582 $ 1,615,646 $ 1,367,821 $ 1,292,313 $ 1,430,075

Ending Cash Reserves $ 2,114,769 $ 1,670,308 $ 1,474,331 $ 1,562,789 $ 1,609,299

Reflects use of merger savings - 6 total firefighters added in Year 2 and 4 total firefighters added in Year 5 Cumulative Savings - BCIFR AFTER addition of 100% allocation of 3 FF In Year 2 and 2 FF in Year 5 Cumulative Savings - NNFD AFTER addition of 100% allocation 3 FF in Year 2 and 2 FF in Year Total Savings AFTER applying costs for 6 FF in Year 2 and 4 FF in Year 5 $

Cash Reserves $ 2,474,269 $ 2,114,769 $ 1,670,308 $ 1,474,331 $ 1,562,789

BCIFR - Merger Year 1 Year 2 Year 3 Year 4 Year 5

Reflects Use of Savings AND Joint Station in Year 5 AND Reduction in Millage (3.45 BCIFR and .95 NNFD)

SUMMARY OF FIVE YEAR ANALYSIS

EXHIBIT A-4

$ Rate 3.50 mils $ $ $

$

$

General Fund:

Projected Property Value

Revenue

Ad Valorem Other Revenue

Total Projected Revenue

Expenditures Personnel and Operating Expenses (Cost Allocation Use for Merger)

Projected Expenditures

1,036,884,318

$

$

$

$ $

$ $ $

Projected Revenue Projected Expenditures

Total Cash Reserves

BJB/bb 6-2-14/6-4-14/6-13-14/7-10-14

Percentage - Reserve/Exp.

Use of Reserves

$

Cash Reserves - October 1

SUMMARY - GENERAL FUND $

$

64%

2,474,269 $

$

3,205,429 $ (3,879,160) $

3,148,000

3,879,160

$

$

55%

359,500

2,114,769

$

$

3,468,538 $ (3,828,038) $

2,474,269

3,828,038

$

$

1

50%

486,687

1,987,582

$

$

3,468,538 $ (3,955,225) $

2,474,269

3,955,225

$

$

53%

695,166

12,559,120

$

$

22,889,547 $ (23,584,713) $

13,254,286

23,584,713

$

695,166

22,889,547

22,889,547

22,889,547

21,763,030 1,126,517

Total General Fund Exp.

$

$

$

$

$ $

$

50,000

3,905,225

3,905,225

3,468,538

3,398,388 70,150

$

$

$

$

$

$

$

$ $

47%

1,275,108

11,284,012

$ $

46%

1,385,427

11,173,693

22,910,156 (24,295,583)

12,559,120

24,295,583

238,920

611,080

23,445,583

23,445,583

22,910,156

21,783,639 1,126,517

Rate 0.95 mils

$ 24,136,996,393

5.47% Increase Per Property Appraiser

2014-2015 NNFD WITH NO MERGER

22,910,156 $ (24,185,265) $

12,559,120

24,185,265

128,601

721,399

23,335,265

23,335,265

22,910,156

21,783,639 1,126,517

Rate 0.95 mils

$ 24,136,996,393

$ $

$

$

$

$ $

Rate 1.00 mils

$ 22,883,818,951

5.47% Increase Per Property Appraiser

$

50,000

3,778,038

3,778,038

3,468,538

3,398,388 70,150

$ 1,036,884,318 Rate 3.45 mils

Property Value Updated April 11, 2014 by Property Appraiser

From Reserves

$

$

$

$

$ $

Rate 3.45 mils

$

11.4% Increase Per Property Appraiser

11.4% Increase Per Property Appraiser

From General Fund 68,200

3,810,960

3,810,960

3,205,429

3,131,994 73,435

939,261,405

Property Value Updated April 11, 2014 by Property Appraiser

Capital Expenditures:

YEAR 1 - 2014-2015

PROJECTED REVENUE AND EXPENDITURES - SUMMARY - GENERAL FUND - BCIFR &NNFD - Year 1 2014-2015 BCIFR WITH NO 2013-2014 Budget 2014-2015 BCIFR 2013-2014 2014-2015 NNFD MERGER BCIFR WITH MERGER Budget NNFD WITH MERGER

EXHIBIT A-5

YEAR 2 - 2015-2016

$

Total Projected Revenue

$

Projected Expenditures

$

Total General Fund Exp.

444,461

Use of Reserves/ (Added to Reserves) $ BCIFR SAVINGS

40%

BJB/bb 6-2-14/6-13-14/7-10-14

SAVINGS ALLOCATED 3 FF EACH BCIFR & NNFD

Percentage - Reserve/Exp.

1,670,308

$

Total Cash Reserves

1,109,466,220

7% Increase

$

$

$

$

$

$

$ $

$

$

$ 40%

$

$

$

$

$

$

$ $

$

$

1

(72,525) $

371,936

1,615,646

24,861,106,285

3% Increase

43% (79,407)

858,878

10,425,134

24,861,106,285

3% Increase

$

$

$

$

$

$

$ $

$

$

43%

779,472

10,394,221

23,563,665 (24,343,137)

11,173,693

24,343,137

1,350,000

22,993,137

22,993,137

23,563,665

22,437,148 1,126,517

Rate 0.95 mils

$

23,563,665 $ (24,422,544) $

11,284,012

24,422,544

1,350,000

23,072,544

23,072,544

23,563,665

22,437,148 1,126,517

Rate 0.95 mils

$

3,709,426 $ (4,081,362) $

1,987,582

4,081,362

50,000

4,031,362

4,031,362

3,709,426

3,636,276 73,150

Rate 3.45 mils

$

3,709,426 $ (4,153,887) $

$ $ $

Cash Reserves - October 1

2,114,769

4,153,887

50,000

4,103,887

4,103,887

3,709,426

Projected Revenue Projected Expenditures

SUMMARY - GENERAL FUND

$

From Reserves

From General Fund

Capital Expenditures:

$

Personnel and Operating Expenses (Cost Allocation Use for Merger)

Expenditures

$ $

Ad Valorem Other Revenue

3,636,276 73,150

Rate 3.45 mils

Revenue

1,109,466,220

7% Increase $

Projected Property Value

General Fund:

PROJECTED REVENUE AND EXPENDITURES - SUMMARY - GENERAL FUND - BCIFR &NNFD - Year 2 2015-2016 BCIFR WITH 2015-2016 BCIFR 2015-2016 NNFD 2015-2016 NNFD MERGER WITH NO MERGER WITH MERGER WITH NO MERGER

EXHIBIT A-6

YEAR 3 - 2016-2017

$

Total Projected Revenue

$

Projected Expenditures

$

Total General Fund Exp.

195,978

Use of Reserves/ (Added to Reserves) $

BJB/bb 6-2-14/6-13-14/7-10-14

Percentage - Reserve/Exp.

1,474,330

$

Total Cash Reserves 35%

1,187,128,855

7% Increase

$

$

$

$

$

$

$ $

$

$ 32%

247,826

1,367,820

25,606,939,474

3% Increase

$

$

$

$

$

$

$ $

1

$

$

41%

304,915

10,120,219

25,606,939,474

3% Increase

$

$

$

$

$

$

$ $

$

$

41%

384,594

10,009,627

24,236,780 (24,621,374)

10,394,221

24,621,374

1,350,000

23,271,374

23,271,374

24,236,780

23,110,263 1,126,517

Rate 0.95 mils

$

24,236,780 $ (24,541,695) $

10,425,134

24,541,695

1,350,000

23,191,695

23,191,695

24,236,780

23,110,263 1,126,517

Rate 0.95 mils

$

3,963,965 $ (4,211,791) $

1,615,646

4,211,791

50,000

4,161,791

4,161,791

3,963,965

3,890,815 73,150

Rate 3.45 mils

$

3,963,965 $ (4,159,942) $

$ $ $

Cash Reserves - October 1

1,670,308

4,159,942

50,000

4,109,942

4,109,942

3,963,965

Projected Revenue Projected Expenditures

SUMMARY - GENERAL FUND

$

From Reserves

From General Fund

Capital Expenditures:

$

Personnel and Operating Expenses (Cost Allocation Use for Merger)

Expenditures

$ $

Ad Valorem Other Revenue

3,890,815 73,150

Rate 3.45 mils

Revenue

1,187,128,855

7% Increase $

Projected Property Value

General Fund:

PROJECTED REVENUE AND EXPENDITURES - SUMMARY - GENERAL FUND - BCIFR &NNFD - Year 3 2016-2017 BCIFR WITH 2016-2017 BCIFR 2016-2017 NNFD 2016-2017 NNFD MERGER WITH NO MERGER WITH MERGER WITH NO MERGER

EXHIBIT A-7

YEAR 4 - 2017-2018

$

Total Projected Revenue

$

Total Cash Reserves

BJB/bb 6-2-14/6-13-14/7-10-14

Percentage - Reserve/Exp.

Use of Reserves/ (Added to Reserves) $

$ $ $

Cash Reserves - October 1

Projected Revenue Projected Expenditures

SUMMARY - GENERAL FUND $

38%

$

(88,458) $

1,562,788

4,238,172 $ (4,149,714) $

1,474,330

4,149,714

$

$

Total General Fund Exp.

$

$

$

$ $

$

50,000

4,099,714

4,099,714

4,238,172

1,270,227,875

7% Increase

30%

75,509

1,292,311

26,375,147,658

3% Increase

$

$

$

$

$

$

$ $

1

$

$

$

$

$

$

$

$

$ $

$ 42%

(310,865) $

10,431,084

26,375,147,658

3% Increase

40%

(29,820)

10,039,447

24,930,088 (24,900,268)

10,009,627

24,900,268

1,350,000

23,550,268

23,550,268

24,930,088

23,803,571 1,126,517

Rate 0.95 mils

$

24,930,088 $ (24,619,223) $

10,120,219

24,619,223

1,350,000

23,269,223

23,269,223

24,930,088

23,803,571 1,126,517

Rate 0.95 mils

$

4,238,172 $ (4,313,680) $

1,367,820

4,313,680

50,000

4,263,680

4,263,680

4,238,172

4,163,172 75,000

Rate 3.45 mils

$

From Reserves

From General Fund

$

$

Projected Expenditures

Capital Expenditures:

$

Personnel and Operating Expenses (Cost Allocation Use for Merger)

Expenditures

$ $

Ad Valorem Other Revenue

4,163,172 75,000

Rate 3.45 mils

Revenue

1,270,227,875

7% Increase $

Projected Property Value

General Fund:

PROJECTED REVENUE AND EXPENDITURES - SUMMARY - GENERAL FUND - BCIFR &NNFD - Year 4 2017-2018 BCIFR WITH 2017-2018 BCIFR 2017-2018 NNFD 2017-2018 NNFD MERGER WITH NO MERGER WITH MERGER WITH NO MERGER

EXHIBIT A-8

Year 5 - 2018-2019

$

Total Projected Revenue

$

Projected Expenditures

$

Total General Fund Exp.

$

Total Cash Reserves

BJB/bb 6-2-14/6-13-14/7-10-14

Percentage - Reserve/Exp.

Use of Reserves/ (Added to Reserves) $

$ $ $

Cash Reserves - October 1

Projected Revenue Projected Expenditures

SUMMARY - GENERAL FUND

$

From Reserves

From General Fund

Capital Expenditures:

$

Personnel and Operating Expenses (Cost Allocation Use for Merger)

Expenditures

$ $

Ad Valorem Other Revenue

$

$

$

$

$

$

$ $

36%

$

(46,510) $

1,609,298

1,359,143,826

7% Increase

$

$

$

$

$

$

$ $

$

33%

1

(137,761) $

1,430,072

27,166,402,088

3% Increase

40%

84,264

10,346,820

27,166,402,088

3% Increase

$

$

$

$

$

$

$ $

$ $

37%

420,180

9,619,267

25,644,195 (26,064,375)

10,039,447

26,064,375

1,350,000

24,714,375

24,714,375

25,644,195

24,517,678 1,126,517

Rate 0.95 mils

$

25,644,195 $ (25,728,459) $

10,431,084

25,728,459

1,350,000

24,378,459

24,378,459

25,644,195

24,517,678 1,126,517

Rate 0.95 mils

$

4,529,594 $ (4,391,832) $

1,292,311

4,391,832

50,000

4,341,832

4,341,832

4,529,594

4,454,594 75,000

Rate 3.45 mils

$

4,529,594 $ (4,483,084) $

1,562,788

4,483,084

50,000

4,433,084

4,433,084

4,529,594

4,454,594 75,000

Rate 3.45 mils

Revenue

1,359,143,826

7% Increase $

Projected Property Value

General Fund:

PROJECTED REVENUE AND EXPENDITURES - SUMMARY - GENERAL FUND - BCIFR &NNFD - Year 5 2018-2019 BCIFR WITH 2018-2019 BCIFR 2018-2019 NNFD 2018-2019 NNFD MERGER WITH NO MERGER WITH MERGER WITH NO MERGER

EXHIBIT A-9

EXHIBIT B

EXHIBIT C

xxxxx

EXHIBIT D

xxxxx

EXHIBIT E

EXHIBIT F -1

EXHIBIT F -2

EXHIBIT G

EXHIBIT H

EXHIBIT I

EXHIBIT J

EXHIBIT K -1

EXHIBIT K -2

EXHIBIT L

Cost Allocation Method

In an effort to identify a cost allocation model to equitably distribute costs of the merged district, all General Fund budgeted expenditures have been identified as either direct or indirect costs. Direct costs have been allocated to the district in which it was budgeted. Indirect costs have been allocated dependent upon the specific cost center. The cost methodology employed is dependent upon the unit of analysis for a given cost allocation center. Personnel expense allocations were calculated as follows:  Chief Officers – A matrix was developed identifying the annual salary and benefits cost for each Chief Officer, the weighted activities for each position, the current cost allocation of each activity, a cost allocation factor, and then an assignment of cost to BCIFR and NNFD based on home district.  Support Personnel – For those support employee costs not identified as direct costs, the following cost factors were identified: o Number of employees (HR/Payroll/Benefit functions) o Square footage of stations and facilities (facilities personnel) o Number of apparatus and vehicles (vehicle maintenance personnel) o Number of annual inspections (fire prevention bureau)  Operational Personnel – All current operational personnel at station level have been identified as direct costs of the employing district. The cost for future operational employees hired by the merged district will be allocated based upon call volume. The following matrix was utilized to Chief Officer personnel costs, with the expense allocation percentage based on an average of weighted activity with percentage:

1 BJB/bb 5-28-14/6-20-14

EXHIBIT L

Position Title Fire Chief (NNFD Home District) Executive Chief (BCIFR Home District) Asst. Chief – Support Serv. (BCIFR Home District) Asst. Chief Administration (NNFD Home District)

Position Title Deputy Chief Training, Safety & Special Teams (NNFD Home District) Deputy Chief Operations (NNFD Home District) Deputy Chief EMS (NNFD Home District) Deputy Chief Fire Prevention (NNFD Home District) Captain –Training and Ops (BCIFR Home District)

Expense Allocation Percentage - NNFD

Expense Allocation Percentage - BCIFR

86%

14%

14%

86%

14%

86%

86%

14%

Expense Allocation Percentage - NNFD

Expense Allocation Percentage - BCIFR

90%

10%

90%

10%

84%

16%

97%

3%

16%

84%

Allocation of operating expenses were calculated using the following cost factors:     

Call volume. Square footage of stations and facilities. Number of employees. Annual budget. Property value. 2

BJB/bb 5-28-14/6-20-14

EXHIBIT L  Number of apparatus and vehicles. Where appropriate, multiple factors were utilized with weighted significance. The following matrix was utilized to allocate operational costs:

Budget Category Cost Allocation Factor

Building Maintenance

Expense Expense Allocation Allocation Percentage - NNFD Percentage BCIFR

Square Footage of 92% Stations/Facilities

8%

Call Volume

90%

10%

Number of Computers

86%

14%

Call Volume

90%

10%

Budget , Number of Employees (20/80) Budget , Number of Employees (20/80)

96% of 20% of Expense and 86% of 80% of Expense 96% of 20% of Expense and 86% of 80% of Expense

4% of 20% of Expense and 14% of 80% of Expense 4% of 20% of Expense and 14% of 80% of Expense

Call Volume Number of Shop Equipment Apparatus and and Supplies Vehicles Square Footage Warehouse and of Logistic Supplies Stations/Facilities Budget , Number Professional Fees of Employees (20/80) Budget , Number of Employees Travel & Per (20/80) Diem

90%

10%

82%

18%

92%

8%

96% of 20% of Expense and 86% of 80% of Expense 4% of 20% of Expense and 14% of 80% of Expense

4% of 20% of Expense and 14% of 80% of Expense 96% of 20% of Expense and 86% of 80% of Expense

PIO/PEO (Non-

96%

4%

Fire Equipment Repair & Maintenance Computer Maintenance Emergency Medical Supplies Office Supplies Office Equipment Fire Equipment

Budget

3 BJB/bb 5-28-14/6-20-14

EXHIBIT L Labor Expenses) Fire Prevention Materials

Budget, FP Activities (20/80)

Training Programs /Sup

Number of Employees

96% of 20% of 4% of 20% of Expense and 86% of Expense and 14% 80% of Expense of 80% of Expense 86%

4 BJB/bb 5-28-14/6-20-14

14%

EXHIBIT N-1

1

Van Buskirk, Ryffel and Associates, Inc. Planning Consultants

20120 Seagrove Street Unit 2405 Estero, Florida 33928 Phone: (239) 992 4082 . Visit our Web page and Email addresses at: www.interactivegrowthmodel.com Charter Members American Planning Association and American Institute of Certified Planners

Revised 7/26/14

Analysis for the North Naples Fire Control and Rescue District (NNFD) of NNFD Population Forecast and Assess Values for Ad Valorem Tax Revenues of the Big Corkscrew Island Control and Rescue District (BCIFD) Analysis of NNFD Forecast of Permanent Population for the BCIFD The NNFD staff applied the Bureau of Economic and Business Research (BEBR) medium permanent population forecast as its baseline for forecasting the county population (when referring to population it means the permanent population, unless otherwise stated). Then adjusting the county forecast with a proportional distribution of the population from the county level to the area east of CR 951 and then to the BCIFD level. This is an appropriate method and is similar to the methodology that the state uses in which BEBR statewide forecasts are proportion to the various counties and then the counties proportion to their respective cities. BEBR's Population Forecasts BEBR forecasts have been well researched and documented which demonstrate that BEBR has historically under estimated population forecast for growing counties in the State of Florida. For example Table No. 1 reveals that in 1983, BEBR forecasted that in the year 2000, the medium forecasted population in Collier county would be 168,700 and the high forecast of 214,900. The U.S. Census count in the year 2000 for the population for Collier County was 251,377; substantially higher than their high forecast of 214,900. Their forecast for 2020 was 308,900 versus the U. S. Census count in 2010 of 321,520.

2

Table No. 1 BEBR's 1981 Forecast of Population for Collier County 1990

2000

2010

2020

U. S. Census Count BEBR Low

152,009

251,377

321,520

N/A

111,700

134,100

N/A

149,400

BEBR Medium BEBR High

128,800

168,700

N/A

206,000

141,700

214,900

N/A

308,900

Source: U.S. Census, BEBR The Palm Beach County Planning Staff documented and analyzed BEBR's forecast from 1973 thru 2003 for counties in Florida and found that BEBR consistently under estimated population for growing counties. Figure No. 1 illustrates the case for Collier County.

Figure No. 1: Source Palm Beach County Planning Staff

3

Table No.2 demonstrates the difference between the medium BEBR forecast that the county provided to the staff and its high forecast. The difference for 2015 of 17,500 increases to 98,400 for the year 2035. Table No. 2 BEBR Current High and Medium Forecast Collier County 2011 323,785

BEBR High Forecast BEBR 323,785 Medium Forecast Difference 0

2015 364,300

2020 413,500

2025 464,700

2030 517,300

2035 571,100

346,800

383,200

417,200

447,000

472,700

17,500

30,300

47,500

70,300

98,400

NNFD Staff Forecasting Methodology The method employed by the NNFD staff to forecast population for the BCIFD is as follows: 1. In the first step, the BEBR medium population forecast provided by the County (the County is mandated by the State to use BEBR) was applied and then calculated the increase in population in the county for ten year periods from 2014 to 2024 and from 2024 to 2034. 2. The second step was to apply a constant 45% proportion of the increase in the county population to the area east of CR 951 and a constant 55% to the area west of CR 951 from 2014 to 2024. From 2024 to 2034 the proportions are reversed. 3. The third step was it apply a 30.7% proportion to the population east of CR 951 to the BCIFD. The 30.7% remained constant over time. Table No. 3 NNFD Population Forecast for the BCIFD NNFD Forecast of BCIFD

2014 19,854

2024 29,402

2034 39,070

4

Analysis of the Proportion of Population from the County Forecast to the Area East of CR 951. The Interactive Growth Model forecasted population east of CR 951 and for the BCIFD for 2011, 2015, 2020, 2025, 2030 and 2035. Historically the growth model's forecast have been more in line with BEBR's high forecast than its medium forecast and its accuracy has been documented. For example, the City of North Port in 1980 had a population of 6,350 and in its 1982 Comprehensive Plan the Growth Model forecasted that in the year 2007 the population would be 57,452. The 2010 Census count was 57,350. The City of Cape Coral in the year 2000 had a population of 102, 286. The Growth Model forecasted in 2002 that the population in 2010 would be 155,179 and the Census was 154,305. Proportioning the Forecasted County Population to the Area East of CR 951 The area west of CR 951 is mostly developed and is approaching build out, whereas the area east of CR 951 is sparsely developed and undergoing development. It is logical that in proportioning future county population growth, that the population west of CR 951 will decrease over time as it approaches build out and that the proportion of the county population to the area east of CR 951 will increase substantially as it develops. The data in Table No. 4 shows that the Growth Model forecast of the population increase for the area east of CR 951 from 2011 to 2015 by 12,702 and the BEBR forecast county wide by 40,515. Therefore, the apportionment of the population increase east of CR 951 from 2001 to 2015 is 43.69% of BEBR's forecast increase for the same period. Table No. 4, further illustrates the increase over time that proportion of future populations assigned to the area east of CR 951. The analysis supports the logic and compares the growth model's forecast east of CR 951 with the BEBR's high forecast. The results show the increase from 43.69% in 2015 to 58.43% in 2035. The NNFD staff used a constant value of 45% from 2014 to 2024 and 55% from 2024 to 2035, in line with the researchers forecast. The Growth Model's forecast may seem high since we have been over the past 5 years experiencing a low growth environment. However, according to a research study by the U. S. Conference of Mayors, it ranked the 363 metropolitan areas in the United States and forecasted their economic growth. The study ranked the Collier County Metro Area 4th out of the 363 metro areas with an annual growth

5

rate of 4.5% for the next 10 years. The research study supports the higher population forecast. The current population growth rate in the U.S. is just below an annualized rate of 1%, the medium BEBR's annual rate is in the order of 2% for Collier County, the high BEBR's annual forecast is in the order of 3% and the IGM's forecast east of CR 951 is in the order of 4%. Since the area west of CR 951 is near built out, the area east of CR 951 will logically absorb most of the future growth. Therefore if we assume BEBR's growth rate of 2% countywide, then if most of the growth goes to the eastern half and it will experience a 2% to 4% annual growth rate. Table No. 4 Calculating the Percent Forecasted Future County Population - Proportion To the Area East of CR 951

Growth Model Forecast East of CR 951 BEBR high County Forecast Diff in Growth Model Forecast from Previous Year Diff in BEBR High Forecast from Previous Year % of Population Proportion to Area East of CR 951

2011 81,893

2015 99,595

2020 2025 123,005 149,993

2030 187,906

2035 219,342

323,785 364,300 413,500 464,700

517,300

571,100

17,702

23,410

26,988

37,913

31,436

40,515

49,200

51,200

52,000

53,800

72.08%

58.43%

43.69% 47.58% 52.71%

The next step is to estimate what proportion of future population increases are apportioned to the BCIFD area from the area east of CR 951. The areas of potential population growth east of CR 951 are: Golden Gates Estates, Rural Settlement Area, RFMUD, Ave Maria, Big Cypress New Town, Immokalee and the areas along US 41 east of CR 951.

6

The potential growth areas in the BCIFD are Golden Gate Estates, Rural Settlement Area, RFMUD and the Big Cypress New Town. The IGM forecasted the population for the area east of CR 951 and for the area of the BCIFD. We can from those forecasted results compare the population growth in the BCIFD and to the population growth the area east of CR 951 over time. Table No. 5 illustrates the proportion of future population growth of the area assigned to the BCIFD from the area east of CR 951 over time. The future population growth of the BCIFD as a percent of future population in the area east of CR 951trends from 43.09% in 2015 to 35.19% in 2035. The current estimated population in the Golden Gate Estates area within the BCIFD is 12,539 and the estimated build out population is 36,880. For the Rural Settlement Area the estimate population is 3,295 with an estimated build out population of 8,974 and the RFMUD has an estimate build out population of 7,429. In the next decade the population growth for the BCIFD will be in these areas and in the second decade the population shift will be in Big Cypress New Town in the BCIFD and Ave Maria and Immokalee east of the BCIFD. These trends correspond with the trends revealed in Table No. 5 Table No. 5 Calculating the Percent Forecasted Future BCIFD Population as a Percent of the Area East of CR 951

Growth Model Forecast BCIFD Growth Model Forecast East of CR 951 Diff in Growth Model Forecast from Previous Year BCIFD Diff in Growth Model Forecast from Previous Year Area East CR 951 % of Population Proportion to the BCIFD

2011 16,476

2015 24,104

2020 34,147

2025 45,590

2030 57,217

2035 68,278

81,893

99,595

123,005

149,993

187,906

219,342

7,628

10,043

11,443

11,627

11,061

17,702

23,410

26,988

37,913

31,436

43.09%

42.90%

42.04%

30.67%

35.19%

7

Summary Analysis of high and low population forecasts can result in a large variance of population over time. The decision on which one of the forecast to select depends on the program objective. Selection of a lower forecast is a conservative approach and has some advantages. For example, a conservative forecast may forecast population values over 10 years whereas a higher forecast will forecast for the same values over 5 years. The conservative forecast provides for a slow motion snapshot of growth that allows for more specification in the fiscal analysis of the consolidation activities and its fiscal impacts. However a higher forecast may result in a more accurate forecast that is necessary to optimize the return on public investments. Under estimating growth results in the over utilization of infrastructure that needs to be replaced before its useful life. This results in a negative return of the public investment and a lower level of service. A good example is that MPOs forecast have historically under estimated population for their Traffic Analysis Zones which have resulted in congested traffic and over utilization of the road network. Over estimating can result in premature financial investments and under utilization of capital improvements. Both cases result in a negative return on public investments. Since development west of CR 951 is approaching build out, future populations will shift to the areas east of CR 951. Therefore the rate of growth east of CR 951 will be increasing over time whereas growth will be decreasing west of CR 951. These trends should be incorporated for forecasting future populations east of CR 951. In the early decade of population growth, the population in the Rural Settlement Areas, RFMUD and the Golden Gate Estates will continue to grow and the Big Cypress New Town will be starting to develop. However, in the second decade the proportion of BCIFD population growth will diminish as a proportion of the total area east of CR 951. In the second decade population growth will take place in Big Cypress New Town (BCIFD), Ave Maria, and Immokalee.

8

Scenarios for Forecasting Population for the BCIFD The District can apply its staff methodology and adopt two scenarios as follows: The first scenario is to apply the (BEBR Medium) conservative forecast. Then apply that proportion of the population forecast over time for the area east of CR 951 assigned to the BCIFD from the analysis in Table No. 5 instead of the constant 30.7%. The benefit of this scenario is that this slow motion snapshot aides to develop and test the strategy for the activities for consolidation. This application is demonstrated on Table No. 6 The second scenario is to apply the high BEBR which is historically a more accurate forecast of population for planning future staff, equipment and facilities. Then apply that proportion of the population forecast over time for the area east of CR 951 assigned to the BCIFD from the analysis in Table No. 5 instead of the constant 30.7%. The benefit of this scenario is to optimize the return on public investments so we do not over utilize and under utilize staff, equipment and facilities. The District can monitor growth over time by the number of housing units. Housing units, regardless if they are occupied or vacant , require fire protection. The District can receive from the county on a quarterly basis the certificates of occupancy for new housing and its location to monitor growth. Housing units are highly correlated with ad valorem tax revenues. The District needs to have a low growth and a high growth scenarios to meet the challenges for the future.

9

Table No. 6 Population Forecast For the First Scenario for the BCIFD

BEBR Medium Forecast Difference BEBR Medium from Previous Year Allocated to Area East of CR 951 Allocated to the BCIFD Area Revised Pop Forecast for BCIFD NMFD Forecast of BCIFD

2011 2015 2020 2025 2030 2035 323,785 346,800 383,200 417,200 447,000 472,700

23,015

36,400

34,000

29,800

25,700

10,366

18,312

18,941

18,210

17,093

4,500

7,666

7,192

6,402

5,531

20,980

28,646

35,835

42,237

47,768

19,854 (2014)

29,402 (2024)

39,070 (2034)

EXHIBIT N-2

1

Van Buskirk, Ryffel and Associates, Inc. Planning Consultants

20120 Seagrove Street Unit 2405 Estero, Florida 33928 Phone: (239) 992 4082 . Visit our Web page and Email addresses at: www.interactivegrowthmodel.com Charter Members American Planning Association and American Institute of Certified Planners

ANALYSIS of the METHODOLOGY for the FISCAL IMPACTS of the BCIFD for the CONSOLIDATION of the NNFD and the BCIFD Fiscal Impact Analysis The objective on the second part of this study is to analyze the methodology to accurately determine the Fiscal Impacts from the consolidation of the NNFD and the BCIFD over a 20 year forecasted period of revenues and costs. If the impacts are positive, it supports the benefits of consolidation. This part of the study recommends the best practice fiscal impact methodology. The following is the description of the scenarios to test to determine the advantages or disadvantages of the proposed consolidation: 1. The first testing scenario is to determine the fiscal impacts over a 20 year period for the NNFD as a stand alone district and for the BCIFD as a stand alone district. This provides a baseline to measure the effects of the fiscal impacts for the proposed consolidation of the districts vs. being independent districts. 2. The second testing scenario is to determine the fiscal impacts over 20 years for the proposed consolidated districts which incorporates the strategies for the effects of consolidation of staffing, equipment and facilities that served the new consolidated district. The fiscal impact analysis is an analysis of revenues and cost due to consolidation strategies and urban development over a time period. The values used for the analysis will be in constant 2014 dollars. Inflators are not recommended because they will tend to distort and make it difficult for the lay person to analyze. The 2013 - 2014 Budget is the baseline for projecting future cost and revenues items. We need to analyze each cost and revenue items and then project forward with forecasted development and implementation of the consolidation plan.

2

An Illustrated Example of the Fiscal Impact Methodology Revenues Projecting Property Tax Revenues Generated from Ad Valorem Taxable Assess Values All of the following values are for illustration only and have not been verified. The objective is to present the best fiscal impact methodology as an illustration only by demonstrating an example from 2014 to 2020 for the BCIFD as a stand alone district. The ad valorem assess values for tax purposes for the analysis consist of the following categories; residential, commercial, industrial and non-exempt personal property. Residential: The increase in the assess value of residential properties, for example, from the baseline year ( 2014) to a projected year ( 2020) is calculated by translating the increase in population (8,792 from 2014 to 2020)) to housing units. Dividing the increase in population by the estimated average household size, yields the total only of the number of occupied housing units. 8,792 pop divided by 2.39 average household size = 3,679 new occupied housing units between 2014 and 2020 for the BCIFD. The estimated vacancy rate for the BCIFD is 18%. Dividing the number of occupied units by 0.82 (1-.18) yields the total number of new occupied and unoccupied units for the BCIFD from 2014 to 2020. 3,679 occupied new units divided by 0.82 = 4,486 total new units from 2014 to 2020. Multiplying the total number of units by the average assess value for ad valorem tax purposes of new units in 2014 (estimated at $200,000) to yield the increase in assess value for residential properties from 2014 to 2020. 4,486,units times $ 200,000 average value of a unit = $897,200,000 increase in residential assess value for tax purposes from 2014 to 2020.

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Commercial: The supply of commercial (retail, institutional, office and services) building space in Collier County is estimated at 103.67 sq ft per capita. The supply of commercial building space east of CR 951 is estimated at 25.43 sq ft per capita. The reason for the small amount east of CR 951 is that most of the residents now travel west of CR 951 for shopping for goods and services. However as the population increases east of CR 951, it will have a larger economy of scale to support more commercial space and is forecasted to have a supply of 32.22 sq ft per capita by 2020. The estimate of commercial property assess value will increase by 26.7 % from its baseline assess value of $60,509,336 in 2014 to a value of $76,665,329 in 2020. Industrial: A similar methodology is applied for industrial property assess value for tax purposes. The assess value for industrial in the BCIFD for 2014 is $9,309,129 and is estimated to increase to $11,636,411 in 2020. Non - Exempt Personal Property (Tangible): This is the assess value for example for movable equipment, inventory, etc. It is a function of commercial and industrial development and will increase with the rate of increase of commercial and industrial development. It could increase from the 2014 value of $26,065,560 to $32,581,950 in 2020. Total taxable ad valorem assess value for tax purposes estimated for 2020 is: residential + commercial + industrial + non - exempt personal property = $1,840,079,746. The estimated taxable assess value for 2020 would be the 2014 value of $917,880,081 plus the estimated increase of $921,399,665 for a total of $1,840,079,746. If we multiply by the tax rate of 3. 5 mills times $1,840,079,746 divided by 1000 yields tax proceeds in 2020 of $6,440,279. Table No. 1 Estimated Total Ad Valorem Assess Value 2020 Category Residential Commercial Industrial Non-exempt personal Total assess value

2014 $821,996,056 60,509,336 9,309,129 26,065,560 $917,880,081

2020 $1,719,196,056 76,665,329 11,636,411 32,581,950 $1,840,079,746

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Other Revenues: Other revenues such as state revenues and charges and fees correlate with population and are calculated and generated on a per capita basis. In 2014 the revenue from state revenue was estimated at $8,000, divided by the estimated population in 2014 at 19,854 results in generated per capita of $0.4029. For example: Table No. 2 Revenues Generated Per Capita Item

2014

Per capita

2020

State revenue

$8,000

$ 0.403

$11,541

Charges and fees

24,800

1.2491

35,782

Miscellaneous

20,000

1.0074

2 8,858

Other revenues such as Rents and Royalties estimated at $17,280 may remain constant or be an average of other past years history. Impact fees revenues are estimated from the number of housing units and the sq. ft. of commercial and industrial development that occurs between 2014 and 2020 in accordance with the county's schedule of fees and are posted to the balance funds. The fiscal impact analysis would also include the balance funds, however they are not addressed in this example for brevity. Expenditures Estimating future expenditures is for the most part on a per capita multiplier basis. The rational is that if the population increases by say 7% then the cost increase by 7%. Expenditure budget items were consolidated for brevity for this presentation on this methodology for fiscal impacts. An alternate to consider may be a multiplier on a per dwelling unit basis instead of per capita, since fire fighting services may be better correlated with number of housing units. Salaries and Benefits : The budget for 2014 for BCIFD salaries and benefits is $3,309,093 and if we divide by the estimated population of 19,854 yields a per capita cost of $166.67. However if we were analyzing the cost for the

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consolidated district we would calculate the cost based on the consolidation plan for staff.

Table No. 3 Example of projecting costs to the year 2020

Item Salaries and benefits Services, fees and travel Communications, rentals, ins Repair& maintenance Printing, supplies, fuel, uniforms

2014 $3,309,093

Per Capita $166.67

2020 $4,774,428

136,672

6.88

197,084

99,735

5.02

143,287

83,500

4.21

120,600

112,225

5.65 161,849

Small equipment

19,750

0.99

28,359

Capital outlay

68,200

3.44

98,542

Table No. 4 illustrates the format for the projection of revenues and expenditures for a budget or financial statement format incorporating the previous analysis for revenues and expenditures. The results estimates future deficits or surpluses from future development. A fiscal impact analysis would include the balance and reserve funds. The accumulation of annual deficits and surpluses and the impact fees would be calculated and assigned to the appropriate fund. Once the format has been set up on a spread sheet, it would produce annual projections from the 5 year forecast and

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can serve to monitor and evaluate the consolidation plan and its implementation. Also different scenarios can be run in a matter of minutes.

Table No. 4 Fiscal Impact 2014 - 2020 Illustrative Only

Revenues Ad valorem State revenue Charges & fees Miscellaneous Fund balance Total

Expenditures Salaries &benefits Services, fees& travel Commercial, rentals, ins Repair& maintenance Printing, supplies, fuel, uniforms Dues& training Small equipment Capital outlay Deficit Surplus

2014

2020

$3,131,994 8,000

$6,440,279 11,541

24,800 20,000 692,366

35,782 28,858

$3,877,160

$6,516,460

3,309,093 136,672 99,735 83,500

4,774,428 197,084 143,287 120,600

112,225 47,985 19,750 68,200 $3,877,160

161,849 69,323 28,359 98,542 $5,593,472 $922,988