HomeMy WebLinkAboutAllocation of $265,519 from Equipment Replacement Reserve toCouncil/Agency Meeting Held:_// -Z2
Deferred/Continued to:
l Approved ❑ Conditionally Approved ❑ Denied
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Council Meeting Date: November 19, 2012
Department ID Number: PD-12-020
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Kenneth W. Small, Chief of Police
SUBJECT: Approve and authorize the City Manager to allocate $265,519 from the
Equipment Replacement Reserve fund to pay for FAA required repairs
for the police helicopters.
Statement of Issue: The Police Department maintains three helicopters in its Air Support
Unit. For safety reasons, the FAA requires replacement of certain pieces of equipment
and/or the overhaul of engines based on the number of flight hours logged on the equipment.
Due to a reduction in flight hours over the past two years, the replacement/repairs have not
been needed. It is anticipated these repairs will be needed in FY12/13, and there has been
no funding source established to pay for these expenditures.
Financial Impact: Authorization is requested to increase-$265,519 of appropriations in
the Non -Departmental General Fund Equipment Replacement Budget for the additional Air
Support Program repairs and maintenance costs. Funding for this appropriation adjustment
will be provided from the existing Equipment Replacement Reserve of $6.9 million.
Recommended Action: Motion to:
Approve and authorize the City Manager to allocate $265,519 from the Equipment
Replacement Reserve Fund to pay for FAA required equipment for the police helicopters.
Alternative Action(s): Do not approve and direct staff accordingly.
HB -567 Item 16. - I
REQUEST FOR COUNCIL ACTION
MEETING DATE: 11/19/2012 1 DEPARTMENT ID NUMBER: PD 12-020
Analysis: The police department's Air Support Unit has been in existence for over forty
years and maintains three helicopters. Maintaining three helicopters helps to efficiently
manage the replacement and repair costs. The FAA has a strict set of guidelines that
mandate such things as the overhaul of engines or replacement of critical components of the
helicopter. These repair schedules are based on the number of hours the equipment has
been in flight. Maintaining three helicopters helps spread the flight hours out over a longer
period of time which reduces the overall repair/replacement costs. It also allows for
scheduling of long term and short term service needs of the helicopters which are scheduled
to serve our community and the contract cities multiple shifts per day, 365 days a year.
The department has maintained three helicopters to provide continual service to the
community and minimize the maintenance costs. Two helicopters typically are used to fly the
required daily hours. Having three helicopters allows the department to provide
uninterrupted service to the communities we serve by enabling us to take one helicopter out
of service for repairs, and have two remaining operational.
On many occasions, air support is needed to assist police units outside of the normal patrol
duties. For instance, air support is required for surveillances during felony investigations,.
including homicides; sexual assaults; narcotics trafficking; and child molestation cases. The
availability of three helicopters allows us to support these critical services and also provide
daily air service. If three helicopters were not available, services to the contract cities and
Huntington Beach would be minimized due to equipment repairs. Historically, maintaining
three helicopters has proven to be financially responsible and allowed the police department
to provide quality airborne law enforcement services over the past forty years.
In the past, state funding was available to fund a portion of equipment repairs and helicopter
purchasing costs fort the Air Support Unit. This funding source ended last fiscal year and the
police department has been unable to locate an alternate funding source outside of the
general fund. Considering the constraints of the state budget, there is no reasonable
expectation for this to change in the foreseeable future.
The agreements with the cities of Costa Mesa and Newport Beach for air support services
generate approximately $900,000 in annual revenue which is paid into the City General
Fund. The Newport Beach agreement is in effect until June 30, 2014, and the Costa Mesa
agreement is in effect through June 30, 2015. It is anticipated the agreements will be
extended prior to the expiration dates. All parties have the option to end the agreement with
sixty (60) days notice.
The Air Support Unit maintains an annual budget of approximately $300,000 for repairs and
maintenance. It is projected that the FAA required repairs that need to be completed within
FY 12/13 will result in the police department needing an additional $265,519 to meet these
maintenance requirements. Listed below is an overview of some of the major repairs and
estimated costs anticipated in the current budget year:
N521 HB
• Main rotor overhaul and mast replacement $ 75,000
® Drive shaft replacement $ 50,000
Item 16. - 2 xB -568
REQUEST FOR COUNCIL ACTION
MEETING DATE: 11/19/2012 DEPARTMENT ID NUMBER: PD 12-020
N522HB
• Engine overhaul $200,000
• Fan blade replacement $ 32,000
N523HB
• Main rotor overhaul $ 60,000
• Fuel control overhaul $ 10,000
• Fan support beam replacement $ 15,000
Beyond this decision for FY 12/13, it is important that the city council is aware that there will
be a significant increase in helicopter maintenance costs in FY 13/14. One of our helicopters
(N521 HB) will become 15 years old in the FY 13/14 budget cycle. The department's past
business plan was to purchase a new helicopter to replace the older model when the
helicopter became 15 years old. This proved cost effective because the new helicopter
included updated technology and safety equipment. It also reduced future maintenance
costs because the components were brand new and started with zero logged flight hours.
Some of the costs for the purchase were offset by the sale of the old helicopter. However,
the estimated cost is over $2,000,000 to purchase a new helicopter.
Rather than replacing the 15 year old helicopter in FY 13/14, the police department plans to
maintain the helicopter in full compliance with the FAA and our safety standards. This will
include a safety check of the outer structure and replacement of all engine and auxiliary
components as needed. The costs for this project may be as high as $800,000, but it will be
significantly less than replacing the helicopter. Funding for this project will be requested in
the FY 13/14 budget request from the police department.
Environmental Status: Not applicable
Strategic Plan Goal: Maintain public safety
Attachment(s): None
HB -569- Item 16. - 3