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Recommendation to authorize City Manager to execute an Agreement with American Eurocopter LLC to perform engine inspections and service repairs for the Police Department's helicopter covered by an insurance claim in the estimated amount of $240,399, and increase appropriations in the Fleet Services Fund (IS 386) in the Department of Public Works (PW) by $240,399. (Citywide)
DISCUSSION
The Department of Public Works, Fleet Services Bureau, is responsible for the proper maintenance of the City's Police Department Air Support Units. Due to the nature for which this inspection became necessary, it is imperative that the helicopter be inspected as required by the manufacturer's master servicing recommendations in accordance with the Federal Aviation Administration (FAA) regulations. It is necessary that an agreement be entered with American Eurocopter LLC to perform the insurance repairs on the aircraft.
On December 11, 2008, the fire suppression system was accidentally activated at the City's leased aircraft hangar. The hangar quickly filled with foam and the helicopter and its interior components were immersed with foam suppressant. The City's aircraft cannot be placed back into service until an extensive and complete teardown inspection of the turbine engine and all rotating components is made. It is estimated to take four to five weeks to complete the inspection in accordance with the FAA regulations.
The costs for the overhaul to replace the mandatory parts and make the required repairs are covered under an insurance claim. The responsible party's insurance company is underwriting all costs and repairs under this incident estimated to be $240,399. However, discovery of parts or repairs required to recertify the aircraft that are unrelated to the foam incident would be the responsibility of the City. The cost for this aspect of the work will be covered under the existing budget for helicopter repairs.
This matter was reviewed by Deputy City Attorney Gary Anderson on May 7 t 2009, and Budget and Performance Management Bureau Manager David Wodynski on May 13, 2009.
TIMING CONSIDERATIONS
City Council action on this matter is requested on Ju ne 2, 2009, in order that the necessary services and/or repairs are performed in accordance with FAA regulations to ensure that the City's helicopter is safely placed back in service so it may resume its air support to the Police Department when necessary.
FISCAL IMPACT
The appropriation increase in the amount of $240,399 is requested for the damages incurred in the foam incident. This cost will be offset by an insurance claim and reimbursed by the insurance company. Costs to cover normal wear and tear replacement components of the helicopter not related to the foam incident are budgeted in the Fleet Fund (IS 386) in the Department of Public Works (PW) and reimbursed by the MOU with the Police Department (PO).
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
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APPROVED: |
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PATRICK H. WEST |
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CITY MANAGER |