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HomeMy WebLinkAboutPD APPROPRIATION OF FUNDS - 2001-11-05 CITY OF HUNTINGTON BEAC MEETING DATE: November 5, 2001 DEPARTMENT ID NUMBER: PD-01-015 Council/Agency Meeting Held: Deferred/Continued to: Approved ❑ Cond'tionally Approved ❑ De 'ed IMP- CI k's ignature Counci epartment ID l Meeting Date: November 5, 2001 Number: PD-01-015 CITY OF HUNTINGTON BEACH Z REQUEST FOR ACTION o --q E2--s,- SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, City Administrators N = PREPARED BY: RONALD LOWENBERG, Chief of Police n n SUBJECT: Approve the Purchase of a Police Helicopter Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: The Huntington Beach Police Department operates a seven-day a week Aeronautic program. To optimize the operation for the benefit of the community and police officers, a three helicopter operation is necessary. Currently, the Police Aeronautics Unit has three helicopters in its fleet. Two are MD 520 N-NOTAR helicopters, the third is a 1985, MD;'500E model, unit N501 HB. This helicopter has 16,000 hours of flight time logged on it and it is essential that N501 HB be replaced with new helicopter. Funding Source: The total cost for the new helicopter is $1,131,000. The funding for the new helicopter is as follows: Type of funding Funding Source Account Number Fiscal Year 2001-2002 Fund balance State Abandoned Vehicle 87570209 $550,000 Funds New revenue -not in 2001- Sale of N 501 HB 55300553 $320,000 2002 budget Fund Balance Helicopter Replacement 55570208 $41,000 Fund Balance Existing Appropriation Equipment Replacement 55340101 $220,000 Total Funding Available $1,131,000 , I , RPA Helicopter Purchase 10/24/01 11:16 AM REQUEST FOR ACTION MEETING DATE: November 5, 2001 DEPARTMENT ID NUMBER: PD-01-015 Recommended Action: 1. Authorize the Police Chief to execute the agreement and expend up to $1,131,000 for the purchase and retrofitting of one MD 520N, NOTAR replacement helicopter. 2. Appropriate $550,000 from the State Abandoned Vehicle Fund to expend for the purchase of the helicopter. 3. Appropriate $41,000 from Helicopter Replacement Fund to expend for the purchase of a helicopter. Alternative Action(s): Do not execute the agreement between the City of Huntington Beach and MD Company and do not approve the purchase of a MD 502 N-NOTAR replacement helicopter and direct staff accordingly. Analysis: The Police Department has operated an Aeronautics Units since 1968. A review of Aeronautics Law Enforcement Programs has shown that the optimum program operates with three (3) airships. This optimizes the number of available flight hours, while minimizing the maintenance costs per ship. In 1998, the DMG study reviewed the Aeronautics Program and concluded that the Huntington Beach Police Department optimizes the use of helicopters for patrol support. In 1985 the Huntington Beach Police Department purchased the last of two MD 500E helicopters. At the time of purchase this was the premiere airship for law enforcement functions. Since then the development of a no tail rotor (NOTAR) airship has revolutionized airborne law enforcement. In 1992, the Huntington Beach Police Department purchased its first NOTAR airship, which replaced the first 500E purchased by the department. The concept behind this airship was to diminish noise and provide a safer airship for the flight crews. A study of accidents related to helicopters found that most causes could be attributed to tail rotor failure. In 1999, the Police Department purchased a-second NOTAR airship, unit N521. The purchase of a new NOTAR helicopter will reduce the maintenance costs, as was experienced in 1999 when Unit N521 was purchased. With the new airship, maintenance can remain in the $300,000 range per year. Without the third ship, wear and usage will increase on the other two NOTARs, thereby increasing maintenance costs for each. The third ship allows for rotation of the helicopters. There will also be a benefit to the maintenance of the airships by standardizing to NOTARs. Service maintenance will be homogeneous, as all the airships will be identical and parts will be interchangeable. The total cost for the helicopter includes the price for a stock helicopter from MD Helicopter, Incorporated and the additional necessary equipment that will be installed in-house. The contract with MD Helicopters Incorporated is $989,345. The additional' $141,655 will be RCA Helicopter Purchase 10/23/01 10:27 AM REQUEST FOR ACTION MEETING DATE: November 5, 2001 DEPARTMENT ID NUMBER: PD-01-015 expended on radios, flight instrument and other equipment that can be purchased and installed at a significantly lower rate than if the police department were to out source it. The City Attorney's Office has reviewed the contract and does not foresee any issues with it. The standard clause, including insurance and hold harmless are not included in this contract. The City Attorney's Office indicates that since this contract is a purchase agreement, these items are generally not included. Environmental Status: Not Applicable Attachment(s)City Clerk's Page Number No._I_ Description 1. Agreement with MD Company 2. FIS RCA Author: Shawna Krone-Schmidt RCA Helicopter Purchase -3- 10/23/01 10:27 AM ATTACHMENT # 1 Jul -11-01 08: 21A MD HELICOPTERS 480 346 6339 P . OZ MD.Hetieopters, Inc. PURCHASE AGREEMENT 4555 E. McDowell Road MD 50.0/600 SERIES Building 615 Mesa, Arizona (U.S.A.) 85215-9734 APPRO TQ F0 Telephone No. (480)346-6344 GAIL HU`l"TON, City At orne7 Fax No. 480 346-6339 B _ PA Number: Customer: City of Huntington Beach DC-LN095-192-01 Salesman: Dale Christman Police Department-Aviation Unit Date: 12/12/2000 18401 Gothard Avenue Rev Date: 07/11/2001 Huntington Beach,CA 92648 Telephone: 714-536-5997 Contact Name: Sgt Tom Arnold Fax Number: Item Description Unit Price 1 Model MD 520N,SIN: LN095,NM520N $940,000 2 Options Price,Equipped as described on Optional Equipment Listing $24,414 3 Special Instructions $1493 I 4 Release of Limitation of Tort Liability(ref-paragraph 20.terms&conditions) $10,000 TOTAL HELICOPTER PRICE S989,345 Requested Delivery Date: 08/012001 LINE POSITION HOLD DEPOSIT SO Scheduled Delivcry Date: HELICOPTER DEPOSIT $0 1 1 xRort/Import Documents: Not Required CONFIRMATION DEPOSIT $0 Due on: 07/11/2001 End User Certificate: Not Required Packing/Shipping Instructions: BALANCE DUE $989,345 Ex-Works at the facility of MD Helicopters,Inc.,Mesa,AZ, (Due within two(2)days prior to Fixed USA Delivery Date of the helicopter) THIS PURCHASE AGREEMENT SHALL REMAIN VALID FOR ACCEPTANCE UNTIL: 08/10/2001 NOTE: (1)THE TERMS AND CONDITIONS,SPECIAL MD HELICOPTERS,INC. INSTRUCTIONS,OPTIONAL EQUIPMENT LISTING, Acknowledgement by STANDARD EQUIPMENT LISTING AND DEPOSIT SCHEDULE ARE EXPRESSLY MADE PART OF THUS AGREEMENT:(2) CUSTOMER ACKNOWLEDGES RECEIPT AND ACCEPTANCE OF ALL 14 PAGES OF THIS PURCHASE AGREEMENT Customer's Authorized Signature and Title Date Date City of Huntington Beach-M0520N-07!11!2001 Page 1 of 14 EMS Date: 0611812001 Jul -11-01 08: 21A MD HELICOPTERS 880 346 6339 P . U.S • SPECIAL INSTRUCTIONS: City of Huntington Beach PA Number: DC-LN095-192-01 Date: 12/12/2000 Rev. Date: 07/11/2001 Instruction # Description _ Price 1 Transition training for two pilots in MDHI aircraft at Mesa,AZ $11,50b 2 The helicopter deposit varies from the required amount because: Payment is due in $0 full within 30 days of delivery. 3 Tlie confirmation deposit varies from the required amount because: Payment is due $0 in full within 30 days of delivery. 4 Customer will furnish one color Ilnron paint to MDHI for painting of the aircraft. $0 5 Install provisions only for KT76A transponder $1,548 6 Install provisions only for KY196 VHF radio $1,883 TOTAL S14,931 N City of Huntington Beach-MD520N-07/11,2001 Page 2 of 14 EMS Date: 06/18/2001 Jul -11-01 08: 22A MD HELICOPTERS 480 346 6339 P - U4 • OPTIONAL EOUTPMENT LISTING; City of Huntington Beach PANumber: DC-LN095-192-01 Date: 12/12/2000 Rev. Date: 07/11/2001 Base Weight 1586.0 lb Catalog# Description Weight Qty Price Extended 60-001 HEATER/DEFOGGER 8.1 1 13,395 13,395 60-010 EXTENDED LANDING GEAR 9.5 1 11,019 11,019 60-040 HEADSET WIRE HARNESS W/ADAPTERS 2.0 1 s0 s0 Total for Optional Equipment 19.6 $24,414 Total Helicopter Empty Weight 1605.6 City of Huntington Beach-MD520N-07/11/2001 Page 3 of 14 EMS Date: 06/18/2001 Jul -11-01 08: 23A MD HELICOPTERS 480 346 6339 -P.01 STANDARD EQUIPMENT LISTING FOR: City of Huntington Beach Configuration Name: MD520N Date: 12/12/2000 PANumber: DC-LN095-192-01 Rev Date: 07/1I/2001 Catalog# Description 00-002 ALLISON 250-C20R ENGINE,450 SEP(336 KW) 00-004 AUTOMATIC ENGINE REIGNITION 00-004-1 ENGINE WASH KIT,MD 500/MD 600 SERIES 00-005 DUAL TACHOMETER NR AND N2 00-006 ENGINE OIL PRESSURE INDICATOR 00-007 ENGINE TORQUE METER 00-008 FACET OIL FILTER STD MD 520N 00-009 N 1 TACHOMETER 00-010 ENGINE RUNNING TIME METER 00-012 FUEL QUANTITY INDICATOR 00-014 BATTERY-HEAVY DUTY MARATHON-17 AMP 00-015 DC AMP METER 00-016 EXTERNAL POWER RECEPTACLE 00-018 DIGITAL CHRONOMETER 00-019 AIRSPEED INDICATOR 00-020 BAROMETRIC ALTI E'rER 00-021 MAGNETIC COMPASS 00-022 OUTSIDE AIR TEMP INDICATOR 00-023 ASHTRAYS AND LIGHTERS 00-024 DEEP PILE FLOOR CARPET 00-025 FIRE EXTINGUISHER 00-026 FIRST AID KIT 00-028G VINYL AND FABRIC CUSHIONS-5 SEATS 00-029 KEYED LOCKS 4 00-030 MAP CASE 06-031 SAFETY BELTS(5) 0043.2 PASSENGER SEATS-WITH CUSHIONS 00-033 SHOULDER STRAPS(5) 00-034 TINTED CANOPY 00-035 64 GALLON(242L)FUEL SYSTEM 00-036 VENTILATION SYSTEM 00-W PAINT I COLOR STANDARD 00-037 FUSELAGE HARD POINTS 00-038 CARGO TIE-DOWN FITTINGS' 00-039 GROUND HANDLING WHEELS 00-040 JACKING FITTINGS 00-042 PASSENGER STEPS 00-043 PITOT TUBE 00-044 BATTERY OVERTEMP WARNING LIGHT 00-045 ENGINE CHIP DETECTOR WARNING LIGHT City of Huntington Beach-MD52ON-07/11/2001 Page 4 Of 14 EMS Date: 06/18/2001 JU I -1 1-01 08 24A MO HELICOPTERS 480 346 6339 STANDARD EQUIPMENT LISTING CONTINUED; Catalog# Description 00-046 ENGINE OUT WARNING LIGHT 00-047 FAN TRANSMISSION CHIP DETECTOR WARN LIGHT 00-048 FUEL FILTER OBSTRUCTION WARNING LIGHT 00-049 FUEL LOW WARNING LIGHT 00-050 GENERATOR OUT WARNING LIGHT 00-051 LOW ROTOR RPM WARNING LIGHT 00-052 MAIN XMSN CHIP DETECTOR WARN LIGHT 00-053 MAIN WSN OIL PRESSURE WARN LIGHT 00-054 MAIN XMSN OIL TEMP WARN LIGHT 00-057 COCKPIT UTILITY LIGHT 00-058 CONVENIENCE LIGHT,AFT 00-059 INSTRUMENT LIGHTING 00-060 LANDING LIGHT 00-061 POSITION LIGHTS 00-062 ENGINE EXHAUST COVER 00-063 ENGINE INLET COVER 00-064 PITOT TUBE COVER 00-065 ROTORBLADE TIE-DOWN SOCKS(COVERS) 00-067 FLIGHT MANUAL 00-068 95 AMP STARTER GENERATOR 00-069 ENGINE OIL TEMP INDICATOR 00-070 ANTI-COLLISION LIGHTS N(3) 00-071 ENGINE AND AIRFRAME LOG BOOKS 00-072 ENGINE MAINTENANCE MANUAL 00-073 BATTERY MANUAL 00-074 HANDBOOK OF MAINTENANCE INSTRUCTIONS 00-075 ILLUSTRATED PARTS CATALOG 00-086 CABIN SOUNDPROOFING 00-096 DIGTTAUANALOG TURBINE OUTLET TEMP.INDICATOR 00449 CREW SEATS WTTH CUSHIONS 00.105 RAIN GUTTERS SET City of Huntington Beach-MD520N-07/11/2001 Page 5 of 14 EMS Date: 06/19/2001 JU1 -11-01 08: 24A MD HELICOPTERS 480 346 63 .II. PAINT SCHEME: City of Huntington Beach PA Number: DC-LN095-192-01 Date: 12/12/2000 Rev. Date: 07/11/2001 520N Standard 0 4 Body Area Color per DuPont Imron 6000 Body 00000-TBD Color 1 Acccntl N/A Acccntl N/A Strrpel N/A Stripe2 N/A i I StApe3 N/A City of Huntington Beach.MD52ON-07/1 t/2001 Page 6 of 14 EMS Date: 06/19/2001 ['1 Jul-11-01 08: 25A MO HELICOPTERS 480 346 6339 — P .01 DEPOSIT SCHEDULE This Annex is attached to, and incorporated in the Purchase Agreement No. DC-LN095-192-01 Schedule of Payments: 1. (a) LINE POSITION HOLD DEPOSIT $0 USD (Deposit to hold a production line position is due upon signing if Scheduled Delivery Date is more than twelve(12)montlu from date of signing) (b) HELICOPTER DEPOSIT $ USD (Due upon signing or nvclve(12)months prior to Scleduled Delivery Date whichever occurs first) (c) CONFIRMATION DEPOSIT $USD (Due upon signing or six(6)months prior to Scheduled Delivery Date whichevcr occurs latcr) (d) BALANCE DUE(2 days prior to Fixed Delivery date) $989,345 USD 2. The deposits .received, as noted in l(a), 1(b) and l(c) above, become NON- a REFUNDABLE, 150 days prior to Scheduled Delivery Date. A. If the deposits, as specified on page 1 and above, are not received, MD Helicopters, Inc., reserves the right to cancel the Purchase Agreement. B. Shipping and, or export disassembly and crating charges will be added to the price of the Purchase Agreement. C. Customer acknowledges that Customer-related and MD Helicopters, Inc. granted requests for extensions to or compression's of the Scheduled or Fixed Delivery Date will impact the cost, which Customer agrees to pay. CUSTOMERS ACKNOWLEDGMENT AND ACCEPTANCE OF THESE TERMS: � Authorized Signature: Printed Name: Title/Company: City of Huntington Beach-NID52ON-07/11/2001 page 7 of 14 EMS Date: 06/18.2001 u —11-01 08: 26A MO HELICOPTERS 480 346 6339 PURCHASE AGREEMENT TERMS AND CONDITIONS 1. SUBJECT MATTER;DEFTNITION Customer will purchase and MD Helicopters,Inc. will sell the helicopter(s)described in this Purchase Agreement as an MD 520N,U.S.Federal Aviation Administration(FAA)certification Type Certificate No. 113WE,Model 500N,under the terms and conditions set forth below. The Purchase Agreement, the Terms and Conditions, Special Instructions, Standard Equipment Listing and Deposit Schedule attached to this Purchase Agreement are a single agreement and shall be referred to below as"Agreement." 2. TITLE MD Helicopters, Inc. shall retain title to the helicopter(s) purchased under this Agreement until (i) Customer has inspected and accepted the heficopter(s)in accordance with paragraph 8,and(ii)Customer has paid the balance due in accordance with paragraph S. MD Helicopters, Inc. shall then furnish Customer with a bill of sale or such other appropriate documents of title as Customer reasonably requests in writing. 3. OTHER CHARGES MD Helicopters, Inc. is not responsible for payment of taxes related to the helicopter(s)beginning on Fixed Delivery Date as defined in paragraph 8. Customer Hill promptly pay upon demand all taxes, assessments and other public charges any taxing jurisdiction directly or indirectly levies, rates, charges upon, or measures in connection with or subsequent to Fixed Delivery Date of the helicopter(s),including,but not limited to,taxes occasioned by the sate, lease, delivery, transfer, storage, use, consumption, manufacture or production of any products purchased under this Agreement 4. NOTICE OF FORETCN LAW REQUIREMENTS Customer shall advise.MD Helicopters,Inc. fully with respect to all foreign government health, safety,environmental and other standards, specifications and other requirements imposed by foreign law, regulation, order or treaty applicable to the Products. Customer shall also advise MD Helicopters, Inc. of all instructions, warnings and labels applicable to the Products that are necessary or desirable under foreign laws,regulations or practices. MD Helicopters, Inc. shall be entitled to increase the price charged to Customer immediately by the amount of any increase in MD Helicopters,Inc.'s cost of manufacturing attributable to compliance with any safety standards,practices,specifications, labels or other requirements. 5. PAYMENT Customer shall pay MD Helicopters,Inc. the deposits set forth bt the Deposit Schedule. FULL PAYMENT OF THE BALANCE DUE; UNDER THIS AGREEMENT SHALL BE MADE TWO(2) DAYS BEFORE FIXED DELIVERY DATE by wire transfer, certified check, irrevocable confirmed letter of credit, or other form acceptable to MD Helicopters,Inc. All payments required to be made under this Agreement shall be made in Unitas States Dollars("S")or other currency acceptable to Ml)Helicopters,bic. 6. CHANGES The specification of the helicopter(s) ordered hereunder are subject to change by MD I•Ielicopters, Inc. to permit incorporation of changes and improvements resulting from the ongoing development of its products, including changes and improvements to meet govcrnntenuil requirements. MD Helicopters, Inc. may change the purchase price of any helicopters)due to a change in specification by giving Customer written notice of the new price that MD Helicopters, Inc. proposes to charge for that helicopter(s)("New Purchase Price"). Within thirty(30)days after receiving notice of the change and New Purchase Price,Customer shall deliver written notice to MD Helicopters,Inc. that Customer rejects New Purchase Price and elects to terminate this Agreement If Customer fails to so respond within thirty(30)days to such notice, Customer shall be deemed to have accepted New Purchase Price. If Agreement is terminated after Customer's express rejection of New Purchase Price,MD Helicopters,Inc. shall promptly refund (without interest)the deposits made by Customer toward the purchase of the helicopters)covered by this Agreement. 7. USED HELICOPTER WARRANTY USED HELICOPTERS ARE SOLD "AS IS" AM3 WTfHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTY OF MERCHANTAB[LITY OR OF FITNI-SS FOR A PARTICULAR City of Huntington Reach-MD520N-0711 1/2001 Page 8 of 14 EMS Date: 0611V2001 Jul -11-01 08: 26A MD HELICOPTERS 480 346 6339 P . 03 PURPOSE OR ANY MIPLIED WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING OR USAGE OF-TRADE. S._ DELIVERY, INSPECTION,ACCEPTANCE AND RISK OF LOSS The Scheduled Delivery Date set forth on page 1 is an estimate and is not binding on MD Helicopters,Inc.,except as set forth in paragraph 9. Within a reasonable time before offering the helicopter(s) for acceptance, MD Helicopters,Inc. shall give Customer written notice of the estimated date that the helicoptcr(s) will be ready for inspection ("Fixed Delivery Date"). Customer agrees to inspect and accept the helicopter(s)purchased under this Agreement at the facility of MD Helicopters, Inc. in Mesa, Arizona within ten(10) days after the Fixed Delivery Date. Customer shall be responsible for making necessary arrangements to enable its personnel or a suitable agent, to inspect and accept the helicopter(s)purchased under this Agreement. Customer's failure to inspect the helicopter(s)within the ten(10)days shall be deemed a waiver of Customer's right of inspection;and final inspection and acceptance shall be deemed to have been made at Fixed Delivery Date. Upon inspection,Customer shall provide to MD Helicopters,Inc. a written list which Customer believes in good faith, identifies items that are not in conformance with the specifications. Upon delivery of the list;MD Helicopters, Inc. may in its sole and absolute discretion: (i)reject any or all of the items that were not listed in good faith;(ii)adjust Purchase Price or(iii)within such period as is necessary,conform the helicopters)to the specification. All deliveries hereunder are Ex Eorks("ExW') at the facility of MD Helicopters, Inc. All risk of loss shall pass to Customer upon delivery. Customer shall be responsible for all costs associated with disassembling, packaging, preparing,transporting and insuring the helicopter(s)requested by Customer prior to or after acceptance. Such costs are not included in the Purchase Price of the helicopter(s)and shall be separately charged to Customer. If MD Helicopters, Inc., at Customer's request, makes arrangements for the shipment of a helicopter(s), it shall do so solely as an accommodation to Customer. Any risk of loss arising from such shipments shall be borne solely and entirely by Customer. MD Helicopters,.Inc.shall have no liability for damage.to a helicopter(s)at the time of or during slupment or as a result of late arrival at the final destination specified by Customer. If Customer does not accept the helicopter(s)within ten (10)days after Fixed Delivery Date, through no fault of MD Helicopters,Inc.,MD Helicopters,Inc.may assess Customer a late delivery charge, fees for appropriate storage or return or, at its option, cancel this Agreement and retain as liquidated damages all deposits previously made by Customer toward the purchase of the Helicopters)covered by this Agreement. 9. DELAYS A. EXCUSABLE DELAYS MD Helicopters,Inc. shall not be in default for failure to or delay in offering the helicopters)for inspection and acceptance due to causes beyond its control and which are not the result of its fault or negligence, including but not limited to: war or war operations; acts or threats of terrorism; insurrections; strikes; riots; fires;floods;explosions;earthquakes;serious accidents; governmental action;or failures to act;governmental itllocation regulations or orders affecting material,equipment or facilities; failure to obtain airworthiness and type certificates or other similar certificates from the applicable aviation administration; failure to obtain an export license; acts of God or the public enemy-, failure of transportation;epidemics; quarantine restrictions; failure of suppliers and subcontractors to perform on their contracts;or labor troubles causing cessation;slow- down or interruption of work or inability after due'and timely diligence to reasonably procure materials, accessories,equipment or parts. If availability of the helicopter(s)for inspection and acceptance is delayed for more than nine(9)months alter Fixed Delivery Date, if one has been issued, because of any of the causes given in the preceding paragraph, either party shall have the option to tenninate this Agreement with respect to any hclicopter(s)so delayed by giving written notice to the other party at any titne after the nine month period described above has expired. If either party exercised its termination rights under this paragraph,this Agreement will continue in full farce and effect as to any other helicopter(s) ordered under this Agreement which are not subject to the delays listed above. B. TERMINATION RIGHTS If either party exercises its termination rights under this paragraph, MD Helicopters, Inc. shall return to Customer (without interest) all deposits which have been made by Customer (except Special Instructions) City of Huntington Beach-MD52014-07/I 1/2001 Page 9 of 14 EMS Date: 06/19/2001 Jul -11-01 08: 27A MO HELICOPTERS 480 346 6339 P . U4 • • toward the purchase of the helicopters)being canceled Customer shall have no other rights or remedies under this Agreement or in law or equity for delay or non-delivery of that helicopters): 10. LTOUTDATED DAMAGES If Customer cancels this Agreement before Fixed Delivery Date, either entirely or with respect to a particular helicopters)or if MD Helicopters,Inc.declares Customer in default for failing to perform any of its obligations under this Agreement, including, but not limited to, its obligation to make deposit payments in accordance with this Agreement, MD Helicopters, Inc. may, at its sole and absolute discretion, retain as liquidated damages all deposits previously made by Customer toward the purchase of the helicopter(s) covered by this Agreement and to which such cancellation or default applies. 11. TRATMNG.FLIGHT FAMTLTARTZATTON AND INSURANCE Unless otherwise noted within this Purchase Agreement, MD Helicopters, inc. shall provide pilot ground and flight transition/familiarization baiting for one (1) of Customer's pilots who is proficient in helicopter flying, and MD Helicopters,Inc. shall provide maintenance famitiri7ation training for one(1)of Customer's qualified mechanics. Flight training shall take place at MD Helicopters, Inc. facilities in Mesa.Arizona and shall be performed in the helicopter(s) purchased under this Purchase Agreement after accptance of the helicopter(s) from MD Helicopters,Inc. by Customer. All travel expenses and liabilities of Customer's personnel for this training shall be borne by the Customer. If MD Helicopters,Inc. funiishes training or flight familiarization services to Customer or any of Customer's agents, whether in Customer's helicopter or any other helicopter not owned by MD Helicopters,Inc.,Customer hereby agrees to procure and maintain during the period of such training a policy of liability insurance as required below, sufficient to cover the training or flight familiarization. MD Helicopters,Inc.and MD Helicopters,Inc.'s flight crews shall be turned as additional insured(s)under Customers aircraft liability insurance policy,including coverage as passengers under that policy. Customer shall maintain the following insurance in the minimum amounts noted:_ A. Hull Insurance in the amount of the aircrafl's value at the time of use by the flight crew of MD Helicopters, Inc. The Hull Insurance shall contain a waiver of subrogation of any rights that Customer's insurance carrier may have against MD Helicopters,hic.or its(light operations personnel. B. Aircraft Liability Insurance,including coverage for passengers, in the amount of Customer's current coverage, but not less than five million United States dollars(S5,000,000). In case the flight crew consists of two (2) persons of which one(1)person is of MD Helicopters, hic.,the aforementioned amount must be increased by five million United States dollars(S5,000,000)for each person. C. Contractual coverage in the amount required in.B above,for Customer's obligations set forth in paragraph 12. Prior to any training flight(s),Customer shall provide MD Helicopters,Inc.a certificate of the required insurance or other evidence satisfactory to MD Helicopters,Inc.of die insurance coverage set forth above. 12. RELEASE AND HOLD HARMLESS By authorizing MD Helicopters,Inc. to provide training and flight familiarization services, Customer thereby releases and agrees to defend,indemnify and hold harmless MD Helicopters,Lie.,its pilots,directors,officers,employees,agents and subcontractors from and against all liabilities,claims,damages,losses,costs and expenses for all injuries to or death of any and all persons and loss of or damage to any property, including loss of the use thereof, arising directly or indirectly out of or in connection with rendering of such training or flight familiarization services,whether or not MD Helicopters,Inc. or its pilots,directors, officers, employees, agents or subcontractors are at fault,except that which is caused by the reckless or willful misconduct of MD Helicopters,Inc. or its pilots, directors,officers,employees,agents or subcontractors. 13. EXPORT AND SHIPPING MD Helicopters,Inc. shall apply for any appropriate export licenses for export from the United States for a helicopter(s) purchased under this Agreement. Before shipment, Customer shall provide MD Helicopters, Inc. with an End User Certificate for each such helicopter(s),whether for foreign or domestic sale. Customer shall be responsible for obtaining in a timely manner all documents required for the anportation of the heiicopter(s) and any other product purchased hereunder into the country of destination. City of Huntington Beach-N-ID52ON-07i 11,2001 Page 10 of 14 EMS Date: 06/19/2001 Jul -11-01 08: 28A MO HELICOPTERS 480 346 6339 11U • MD Helicopters,Inc.shall have no liability to Customer for any delays in the export or import of a helicopter(s)caused by Customer's failure to timely provide MD Helicopters, Inc. or the end-user's government with any required documentation. MD Helicopters,Inc.shall have no liability,obligations or responsibilities to Customer arising from the issuance,sufficiency,denial,revocation or expiration of any export or import licenses. . Unless otherwise specifically agreed in writing,Customer shall provide MD Helicopters,Lic. with instructions for export packnging with delivery to be made by ship to Customer at the named port of destination. Customer and MD Helicopters, Inc. agree that MD Helicopters, Inc. has the right to cancel this Agreement if Customer changes those instructions and such change exposes MD Helicopters,Inc. to liability under the laws of the United States of America ("U.S.")or the country to which the helicopters)is to be shipped. CUSTOMER AGREES TO INDEMNIFY AND HOLD HARMLESS MD HELICOPTERS, INC. FROM ANY CLAIMS, SUITS, LIABILITY, EXPENSE, PENALTIES, CHARGES OR DAMAGES, INCLUDING COURT COSTS,AND ATTORNEYS'PEES CAUSED BY CUSTOMER'S FAILURE TO COMPLY WITH ANY LAWS OR REGULATIONS GOVERNING TILE EXPORTATION OF A HELICOPTERS)OR ANY PRODUCTS FURNISHED HEREUNDER. 14. TECHNICAL DOCUMENT LANGUAGE . Any technical documentation and data which MD Helicopters, Inc. may furnish to Customer under this Agreement, unless otherwise specified herein, will be written in the English language and will use the practices, standards and conventions in general use in the U.S. 15. NOTICES Any notice to either party under this Agreement shall be in writing and shall be effective on the fast to occur of (i) delivery, if delivered in persow to the party at the address specified herein or at such other address as shall have previously been specified in writing by such party to the other party ("Address"): (ii)delivery, if sent by commercial 7 express service(such as Federal Express),to the party at the Address,(iii)five(5)working days after deposit in the mail, postage prepaid, certified or registered mail, return receipt requested, to the party at the Address; or (iv) machine confirmation of receipt if sent by telecopy or other facsimile transmission to a receiving machine located at the Address of the party. 16. LIMITED WARRANTY The MD Explorer series helicopter is covered by the following Limited Warranty: A. MD Helicopters,Inc. warrants to Customer for each new helicopter sold by MD Helicopters,Inc. pursuant to 4 this Agreement that at the time of delivery the helicopter is free from defects in material and workmanship under normal use and service. B. For a period of two(2)years after delivery of the helicopter to the end riser customer,or two thousand(2,000) hours in service("Warranty Period")whichever occurs first, MD Helicopters,Inc. agrees to repair or replace any part that is found to be defective,in accordance with paragraph 17,"Warranty Procedures". - C. This Limited Warranty shall not apply to any helicopter(s)or part which has been repaired or altered outside of the factory of MD Helicopters,Inc. in Mesa,Arizona if,in the judgment of MD Ielicopters,Inc.,such repairs or alterations have affected the stability,safety,or reliability of the helicopter(s)or the part in question,nor to any helicopter(s)or part which has been subject to misuse,corrosion or erosion,negligence,or accident. D. MD Helicopters, Inc. makes no warranty whatsoever with respect to engines, ignition, starting devices, generators, batteries,instruments,STC hits,or other trade accessories inasmuch as they arc usually warranted separately by their respective manufacturers. However,if any such manufacturer does not have local facilities or representative for the processing of warranty claims,any warranty claim in connection with such parts may be made directly to MD Helicopters,Inc. which,as an accommodation to Customer,will submit the claim on Customer's behalf to the appropriate manufacturer. E. This Limited Warranty is given to Customer wily and may not be assigned or otherwise transferred by Customer(or any successor of Customer) without the prior written conseait of MD Helicopters, Inc., which shall not be unreasonably withheld. Any assignment made writhout MD Helicopter Inc.'s consent shall be ineffective. City of Huntington Beach-MD520N-07.11112001 Page 1 I of 14 EMS Date: 06/18/2001 Jul -11-01 08: 28A MD HELICOPTERS 480 346 6339 P - 05 17. WARRANTY PROCEDURES afD50#111D6fl#WARR4NT" Warranty adjustments with respect to any helicopter warranted by MD Helicopters, Inc. will be made only upon compliance with the following procedures: A. A written notice of a warranty claim must be given promptly to MD Helicopters,Inc.and in no event later than thirty(30)days after expiration of Warranty Period. ` B. Customer shall return the helicopter or any part or parts alleged to be defective to MD Helicopters, Inc.'s facility in Mesa,Arizona,U.S.A.,transportation charges prepaid- C. MD Helicopters,Inc.will,within thirty(30)days after receipt of the helicopter(s)or the part or parts alleged to be defective determine %tether the helicopter(s) or part thereof is defective and will issue appropriate disposition instructions. Final determination on the allowability and amount of any warranty adjustments rests with MD Helicopters,Inc. D. After determining to its satisfaction that a part or parts is in fact defective, MD Ielicopters, Inc. may, in its discretion,either repair or replace all such parts. MD Helicopters,Inc. shall pay one hundred percent(100%) of the cost to repair or replace any part which is returned during the first year or two thousand(2,000)hours whichever occurs rust If this part is returned during the second year,Customer's cost of repair or replacement will be determined by multiplying the cost of repair or replacement by the number of hours in service divided by two thousand(2,000)hours ("Prorated Credit"), except that Prorated Credit does not apply to repair or replacement parts having a service life of less than two thousand(2,000)hours. Repair or replacement parts provided by MD Helicopters,Itnc.are warranted only for the remainder of Warranty Period. E. MD Helicopters,Inc. will pay the cost of labor(cost not to exceed fifty($50)United States dollars per hour) for removal and installation of only those parts origirnally installed in the helicopter(s)by 1v0 Helicopters,Inc., as described in the MD 500 and MD 606N series labor allowance chart at the hours allotted therein. is. DISCLAIMER OF ALL OTHER WARRANTIES TfIE WARRANTY SET FORTH IN PARAGRAPH 16 IS EXCLUSIVE AND IS GIVEN AND ACCEPTED EXPRESSLY IN LIEU OF ANY OTHER WARRANTIES,EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE OR ANY M4PLIED WARRANTY ARISING FROM COURSE OF DEALING OR USAGE OF TRADE. 10. LIMITATION OF CONTRACTUAL LIABILITY AND CUSTOMER'S OBLTGATiON TO NOTIFY THIRD PARTIES. CUSTOMER'S SOLE AND EXCLUSIVE REMEDY FOR ANY ALLEGED BREACH OF CONTRACT OF WARRANTY IS LIMITED TO THE REPLACEMENT AND REPAIR OF DEFECTIVE PARTS AS PROVIDED HEREIN,EXCEPT,HOWEVER,THAT CUSTOMER'S RIGHT TO SUE FOR PERSONAL INJURY SHALL NOT BE AFFECTED BY THUS AGRFEM[ENT. IN NO EVENT WILL MD HELICOPTERS, INC. BE OTHERWISE LIABLE TO CUSTOMER FOR ANY NON-CONFORMANCE OR DEFECT IN ANY HELICOPTER UNDER THIS AGREEMENT OR FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL. DAMAGES INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS OR REVENUE, LOSS OF USE OR MONETARY LOSSES RESULTING FROM THE PAYMENT OF DAMAGES TO OTHERS. Customer agrees that if it should sell any helicopter purchased under this Agreement to a third party("Third Patty"), it will obtain from Third Party a written agreement in which Third Party acknowledges that it has read and agrees to be bound by the terms of this Limitation of Liability. Customer further agrees that if it should rail to obtain such.an agreement from Third Party, Customer shall indemnify and hold MD Helicopters, Inc. harmless, from any liability incurred by MD Helicopters,Inc,as a result of such failure whether by judgment,reasonable settlement or otherwise,and including any liability for costs and attorneys' fees in defending such action together with such costs and fees incurred by MD Helicopters,Inc.in enforcing the provisions of this paragraph. City of 1luntington Beach-MD520N-07/11/2001 Page 12 of 14 EMS Date: 06/18/2001 Jul -11-01 08: 29A MO HELICOPTERS 480 346 6339 P . 07 20. LIMITATION OF TORT LTABIUTY Customer and MD Helicopters,Inc,agree that MD Helicopters,Inc. shall have no liability in tort,based on a theory of negligence or strict liability, for damage to the helicopter(s),.any component part thereof or Customer's other property (whether real or personal)and any consequential damages or economic loss resulting from such damage,including,but not limited to,loss of profits or revenue,loss of use or monetary losses resulting from the payment of damages to others, which may result from the use of any helicopter purchased hereunder,whether or not caused by the negligence of MD Helicopters,Inc.and Customer hereby expressly releases and waives any such claims. The parties hereby understand and agree that the price for the helicoptcr(s), parts,and.accessories purchased wider this 'Agreement is given to Customer partially in return for Customer's acceptance of the limitation of tort liability provisions stated in this paragraph. Customer has negotiated for these provisions in exchange for a more favorable price. CUSTOMER UNDERSTANDS AND ACKNOWLEDGES AND ACCEPTS TIIE LIMITATION OF LIABILrl'Y DESCRIBED HEREWITH UNLESS OTHERWISE SO NOTED BY SIGNATURE IIEREINAFTER . IF SIGNED AND CUSTOMER AGREES TO PAY A SET FEE THEN THIS PARAGRAPH 20 SHALL BE DELETED FROM THIS AGREEMENT. THE FEE IS IN ADDITION TO AND BECOMES A PART THEREOF OF THE PURCHASE PRICE OF THE HELICOPTER, IS INDICATED ON THE FACE OF THIS PURCHASE AGREEMENT AND WILL BE PAID IN ACCORDANCE OF THE TERMS HEREIN PROVIDED. If Customer wishes to protect itself against any liability exposure assumed by it or disclaimed by MD Helicopters, Inc. under this Agreement,Customer may obtain insurance at its own cost to protect against such risk,MD Helicopters,Inc. shall have no obligation to unsure against such risk for the benefit of Customer. 21. LTMTTATTOK OF DAMAGES IN NO EVENT WILL MD HELICOPTERS, INC. BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES,WHETHER OR NOT THEY ARE FORESEEABLE. MD HELICOPTERS;INC. DAMAGES FOR ANY BREACH OF TIES AGREEMENT BY CUSTOMER, SHALL NOT EXCEED THE AMOUNT PAID BY.THE CUSTOMER. 22. GOVERNING LAW AND DISPUTE RESOLUTTON This Agreement shall be construed in accordance with the substantive law of the State of Arizona,U.S.A.,without regard to its rules on conflict of laws. The parties specifically exclude the United Nations Convention of the International Sale of Goods. The parties may submit any dispute or controversy arising out of this Agreement to binding arbitration. Any such arbitration shalf take place in Phoenix,Arizona,U.S.A. and be conducted ni English under the Commercial Arbitration - Rules of the American Arbitration Association in effect at the time of the dispute and any award entered shall be subject to confirmation and enforcement in accordance with the laws of the State of Arizona,U.S.A. Either party may bring suit to enforce any provision of this Agreement or to obtain any remedy with respect to this Agreement in the Superior Court of the State of Arizona,Maricopa County. For this purpose both parties expressly and irrevocably consent to the jurisdiction and venue of the Superior Court of the State of Arizona,Maricopa County. If either party herein brings an action to enforce the terms and conditions hereof or declare rights hereunder, the prevailing party in any such action, on trial or appeal, shall be entitled to be paid, by the losing party, all costs and expenses incurred in such action,including payment of reasonable attorneys' fees and or fees for arbitration proceedings, including arbitrator(s)fees. 23. ASSIGNMENT The Customer agrees that it will not assign its rights under this Agreement without the prior written consent of MD Helicopters,Inc. Any assigrunent without the consent of MD Helicopters,Inc.shall be ineffective. MD Helicopters,Inc. will not unreasonably withhold consc-rn to any assignment if the assignee is a person or corporation in which MD Helicopters,Inc, has commercial confidence and can reasonably be expected to carry out the terms of this Agreement, including the applicable import/export requirements. MD Helicopters,Inc.may assign all or part of this Agreement to an affiliate or subsidiary of MD Helicopters,Inc. without Customer's consent. City of Huntington Beach-N-ID52ON-07/11,2001 Page 13 of 14 EMS Date, 06/1R/2o01 &v nr-t~IUUNTERS 24. GENERAL A. Nothing in this Agreement shall convey to Customer the right to,and Customer shall not reproduce or cause the reproduction of,the helicopter(s)or any design identical with or similar to that of the helicopter(s),or parts thereof,or give to Customer a license under any patent or right owned or controlled by MD IIclieopters,Inc. B. Failure of any party to exercise any right or option arising out of a breach of this Agreement shall not constitute a waiver of any right or option with respect to any later or different breach,or the continuance of any existing breach. C. A declaration that any provision of this Agreement is void or unenforceable by a court of the State of Arizona, shall sever such_provision from this Agreement,and all other provisions of this Agreement shrill remain in full force and effect. D. This Agreement shall have no force and effect until executed by a duly authorized representative of 1D Helicopters,Inc.and by Customer. E. Customer and MD Helicopters,Inc. mend this Agreement to be a complete mid exclusive statement of the terms and conditions of the entire agreement between them which supersedes and renders null and void any price agreements, memoranda of agreement, correspondence or other evidence of agreement coveting or purporting to cover the subject matter of this Agreement. Customer and MD Helicopters,Inc.expressly agree that this Agreement and any of its terms or conditions may not be varied, contradicted, explained or supplemented by any oral agreements or representations,by course of dealing or performance or by usage of trade. None of the terms and conditions contained in this Agreement may be added to,modified,superseded or otherwise altered except by a written instrument executed by duly authorized representatives of both parties. City of Huntington Beach-NID52ON-07.11/200I Page 14 of 14 EMS Date: 06.n gl2001 ATTACHMENT # 2 • • � CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICA TION To: Ray Silver, City Administrator From: Clay Martin, Director of Administrative Services Subject: FIS 2002-03 Approve the Purchase of a Police Helicopter Date: October 3, 2001 As required by Resolution 4832, this Fiscal Impact Statement has been prepared for "Approve the Purchase of a Police Helicopter". If the City Council approves this request (total appropriation $1,131 ,000) below are the effects of this request on the various City funds involved: • State Abandoned Vehicle Fund Balance (fund 875)— Appropriation of $550,000 reduces available funds to zero. • New Revenue from sale of previous helicopter totaling $320,000 that was not anticipated in the original adopted 2001- 2002 budget • Helicopter Replacement Fund Balance (fund 555)- Appropriation of $41,000 reduces available funds to $440,000 • Existing Appropriations — Appropriation of $220,000 Equipment Repl e n ness Unit Budget 55340101. Clay May6n, Direct r of Administrative Services RCA ROUTING SHEET INITIATING DEPARTMENT: Police Department SUBJECT: APPROVE THE PURCHASE OF A POLICE HELICOPTER COUNCIL MEETING DATE: I November, 2001 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Attached Bonds (If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report (If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff 1s a 3 Assistant City Administrator Initial City Administrator (Initial) City Clerk ( ) F EAeln EXPLANATION FOR RETURN OF ITEM: SpaceOnly) RCA Author: Shawna Krone-Schmidt r Replacement Of Helicopter N501HB • Ronald E. Lowenberg , Chief of Police Lr: r HUNTINGTON BEACH PD .fi z Traffic/ Aero Bureau Commander, _ Lt. Lloyd Edwards - N Introduction Huntington Beach ♦ 1st Helicopter Police Patrol in Orange County, ♦ 5th Helicopter Police Patrol in the Nation i I. Huntington Beach operates 3 MD 500 series helicopters ♦ 3 vs. . 2 is more cost effective The Aero Unit has been serving the City for 33 years The unit has made over 13, 500 arrests and issued over 12,600 citations Equipment Replacement N501 HB - 1985 McDonnell Douglas 500 E Model Helicopter, 16,000 hours of flight time Replacement scheduled with the new and quieter � MD NOTARY Helicopter This is budgeted replacement of equipment, utilizing funds specifically designated for this purpose and not effecting General Fund Revenues (FIS) • Use of the Helicopter Responds to all major incidents (pursuits, robbery, homicide, terrorist, etc. .) ♦ Missing children ♦ Traffic control � ♦ Surveillance ! ♦ Swat Team Insertion ♦ Prowlers and all crimes in progress ♦ Preventative patrol, patrol checks, ♦ Officer back-up ♦ Transport prisoners, K-9, etc. Canceled Units - saving patrol time on minor calls (731 � units canceled in 2000) DMG study reported the helicopter can be worth 10-13 officers on the ground Speed of Response First on Scene ♦ Helicopter responds at 140 mph ♦ End to end of the city in less than two minutes � i Crimes in progress are stopped and criminals apprehended more often Prevention ♦ Criminals are aware of the helicopter and choose other targets � Special Equipment FUR or Infra-red night vision ♦ Finds suspects ♦ Covert Surveillance • Bambi-Bucket � ♦ Fire assistance ♦ Water dropping Rescue ♦ Rescue nets ♦ Cinch Collar � ♦ Life guard and rescue assistance LoJack, ETS, 800 MHz Nite-Sun (30,000,000 candle power search light) Other CityDepartments Fire assistance with infra-red , heat detection, water drops .Environmental, infra-red can see oil, gas, toxic • spills,see underground pipe lines Planning Department, aerial photos, planning Code Enforcement violations Public Works, flooding HBTV 3, airborne video capabilities, downlink coming soon. City Administration, view disasters, etc. in progress immediately, at home Compared to Past Purchases In 1984-5 we bought 2 MD 500 E's at $600k each (N500 and N501 ) and aquired N502 thru a trade agreement In 1991 we replaced N500 with a Notar (N520 - $1 .2' � Million, financed) In 1998 we replaced N502 with a Notar (N521 -$1 .2 Million, financed) In 2001 we will replace N501 with a Notar(N522 - $1 . 1 Million, cash) This purchase is the least costly even � with increased prices and will avoid nearly $400k in finance charges by using funds we prepared for this years ago. Noise Complaints ra NOTAR® Technology is the quietest, safest helicopter on the market, and exclusively flown by Huntington • Beach Police rd Orange County Sheriff F Patrol altitudes of 700-800 AGL is the highest of LA & OC Cities We are aware of the noise, and do everything we can to mitigate it We also enforce noise regulations, low flying aircraft, etc. New Technolo NOTAR® Anti-Torque Tail Boom a Variable with Circulation Air Intake Pitch Fan Control Slots System for Superior Safety Vertical and Quiet Stabilizers • ♦ Up to 50 Percent Quieter Than Competitive Aircraft ♦ 70 Percent of all Tail Rotor Accidents Could be Avoided With NOTAR® System ♦ Smoother Ride Provides Less . Pilot Fatigue ♦ Proven Lower Insurance Rates Recommendation The Air unit is something we are committed to as a City Replacement of the equipment is necessary to maintain • safety, costs, rrvice There is no financial impact on the General Fund now or in years to come Delay of approval will increase the cost of operations, causing us to go over budget projections for the 2001 -03 • Budget cycle. We recommend approval of the replacement.