DATE: December 15, 2015
TO: Board of Supervisors
SUBMITTED BY: Margaret Mims, Sheriff-Coroner
SUBJECT: Replacement of Sheriff’s Helicopter Eagle One
RECOMMENDED ACTION(S):
TITLE
1. Adopt resolution increasing the FY 2015-16 appropriations in the Special Revenue Sheriff-Coroner’s Federal Asset Forfeiture Org 1459 in the amount of $1,400,000 (4/5 vote);
2. Adopt resolution increasing the FY 2015-16 appropriations and estimated revenues in the Sheriff-Coroner’s Org 3111 in the amount of $2,180,000 (4/5 vote);
3. Approve and authorize the Clerk to the Board to execute Budget Transfer No. 22 ($1,320,000) transferring appropriations within the Sheriff-Coroner Org 3111, from Accounts 6100 (Regular Salaries), 6400 (Retirement Contributions), 6500 (OASDI Contribution), and 7205 (Maintenance-Equipment) to Account 8300 (Equipment); and
4. Make a finding that it is in the best interest of the County to waive the competitive bidding process consistent with Administrative Policy No. 34 for unusual or extraordinary circumstances for the Sheriff-Coroner’s Office to purchase a helicopter from McDonnell Douglas.
REPORT
There is no increase in net County cost associated with the recommended actions. Federal asset forfeiture monies, prior year revenues in excess of accruals, excess FY 2014-15 Proposition 172 funds, excess salary and benefit and maintenance savings totaling $3.5 million are recommended to fund the replacement cost of the Sheriff’s helicopter Eagle One.
ALTERNATIVE ACTION(S):
If the recommended actions are not approved by your Board, the department will not be able to replace the aging helicopter. The continued use of the existing equipment will result in elevated amounts of downtime and unscheduled maintenance expenses.
SUSPENSION OF COMPETITION/SOLE SOURCE CONTRACT:
The Sheriff-Coroner’s Office recommends that your Board waive the formal competitive bidding process under Administrative Policy No. 34 as MD Helicopters is the only vendor authorized by McDonnell Douglas to sell a MD 530F to the department. The Sheriff’s Air Support Unit evaluated replacement helicopters from Bell, Air Bus and McDonnell Douglas. The Bell helicopter did not meet the specified needs and the Air Bus helicopter is much more expensive. The most economical solution is to upgrade from the existing McDonnell Douglas 500E to the McDonnell Douglas 530F. This upgrade will improve deputy safety and effectiveness with more power, the ability to carry a larger payload and increased altitude capabilities. The Internal Services Department Purchasing Division concurs with the department’s request to waive the competitive bidding process.
FISCAL IMPACT:
There is no increase in net County cost associated with the recommended actions. It is recommended the cost of $3.5 million to replace the Sheriff-Coroner’s helicopter be funded with the following sources:
1. Federal Asset Forfeiture Special Revenue in the amount of $1.4 million
2. Departmental savings totaling $1,320,000 in various accounts within the Sheriff’s FY 2015-16 authorized appropriations
a. Account 6100 (Regular Salaries) = $628,735
b. Account 6500 (OASDI) = $48,203
c. Account 6400 (Retirement Contribution) = $523,062
d. Account 7205 (Maintenance-Equipment) = $120,000
3. Prior year departmental revenues of $280,000 in excess of accrued revenues
a. Account 3575 (State-Other) = $170,000
b. Account 5031 (Jail Farm & Work Furlough) = $110,000
4. Excess FY 2014-15 Proposition 172 monies of $500,000. As directed by your Board, and as indicated in the September 15, 2015 agenda item No. 6, the excess Proposition 172 revenue of $1,865,071 is being held in a designation pending your Board’s recommendation for disbursement.
The first recommended action will increase the FY 2015-16 appropriations in the Sheriff-Coroner’s Special Revenue Federal Asset Forfeitures Org 1459 in the amount of $1,400,000 (by using the available fund balance of the Special Revenue Sheriff-Coroner Fund 0095, Subclass 17658) to partially fund the Sheriff-Coroner Organization 3111 expenses to replace Helicopter Eagle One. The second recommended action will increase the FY 2015-16 appropriations and estimated revenues in the Sheriff-Coroner’s Org 3111 in the amount of $2,180,000 ($1.4 million as an Operating Transfer In from the Sheriff-Coroner Fund 0095, Subclass 17658; $280,000 in excess revenues; and $500,000 in Proposition 172 excess revenues. The third recommended action will transfer excess salary and benefit and maintenance savings (as identified above) totaling $1,320,000 to Account 8300 Equipment within the Sheriff-Coroner Org 3111.
DISCUSSION:
The Fresno County Sheriff’s Air Support Unit (ASU) is a force multiplier with unique capabilities that multiply the effectiveness of ground-based patrol deputies, search and rescue teams, narcotics detectives, and allied law enforcement agencies throughout Fresno County. The helicopters’ observation capabilities as an aerial platform and communication center combined with high tech equipment like the Forward Looking Infrared device, significantly enhance the probability of successful mission accomplishment. The Air Support Unit operates 7 days a week 365 days a year and consists of two helicopters and one fixed wing plane. A mission specific Bell Huey helicopter has been received for evaluation by the department through the military surplus program but would need to be refurbished prior to entry into service with the ASU.
The two 1991 McDonnell Douglas 500E (MD 500) helicopters are the workhorses of the Air Support Unit and have logged 13,346 and 15,429 flight hours. Due to their age and amount of flight time, unscheduled maintenance expenses have led the department to propose an ASU equipment replacement plan as follows:
• This Board item seeks to replace one MD 500E helicopter with the McDonnell Douglas model MD 530F (MD 530). The replacement helicopter will provide greater capabilities to carry an increased payload and to operate at higher altitudes with increased power. Federal asset forfeiture monies, prior year revenues in excess of accruals, excess FY 2014-15 Proposition 172 funds, excess salary and benefit and maintenance savings totaling $3.5 million are recommended to fund the replacement cost of the Sheriff’s helicopter Eagle One.
• Proceeds estimated at $500,000 from the sale of the retired MD 500 Eagle One would provide seed money to start building the funding necessary to replace Eagle Two with an upgraded MD 530 helicopter. The reduction in unscheduled maintenance with the retirement of Eagle One would provide up to an estimated $400,000 annually in reduced maintenance expenses. The Sheriff’s Office will track budget savings, additional revenues and asset forfeiture proceeds and will return to your Board in a future fiscal year with a recommendation for the retirement and replacement of Eagle Two.
• The Sheriff-Coroner’s Office is completing its evaluation of the Bell Huey. Should the Sheriff-Coroner determine that it is feasible to refurbish the Bell Huey, the department will return to your Board with a request for acceptance of the donation. The Bell Huey would allow the ASU to respond immediately to mission specific incidents that require the transport of up to 15 people and large amounts of equipment to often inaccessible locations. The ASU has received estimates of $1.5 million to refurbish the Huey. Should the Sheriff-Coroner determine refurbishment of the Bell Huey to be feasible, the department would pursue funding opportunities and return to your Board in a future fiscal year with a proposal that would make the Huey operational for specified missions.
REFERENCE MATERIAL:
BAI #6, September 15, 2015
ATTACHMENTS INCLUDED AND/OR ON FILE:
Sole Source Acquisition Request Form
On file with Clerk - Resolutions (Orgs 3111 and 1459)
On file with Clerk - Budget Transfer
CAO ANALYST:
Jeannie Z. Figueroa