Explanation
BACKGROUND: This ordinance authorizes the Director of the Department of Public Safety to enter into an agreement with Bell Textron Inc. for the purchase of two aircraft and related supplies and services in the quantities and at the agreed unit and total prices, as set forth in Appendix 1 and any Amendment(s) thereto to this Agreement. The Columbus Division of Police Aviation Section, Helicopter Unit, has proudly served the citizens of Columbus since 1972. The police helicopter has proven to be a dynamic force multiplier in the detection and apprehension of criminals.
The City of Columbus has not purchased an all-new helicopter placed into service since 2012. The purchase and delivery of a new helicopter was completed in 2020, but the helicopter was later sold at a profit due to numerous factors. The current fleet of four (4) MD530F helicopters have a combined total of 39,136 hours of operation and are aging, as the oldest was purchased in 2006. The technology in the aircraft is older as well and has not been updated since 2019.
In order to provide the safest equipment possible, the Columbus Division of Police Aviation Section must replace older, outdated equipment. Prior experience with Bell helicopters as well as prior committee work and selection were considered while selecting Bell Helicopters as a vendor for this purchase, including pricing and value (both current and residual), performance, mission, payload/capability, maintenance and direct operating cost (DOC). Both manufactured products would meet or exceed CPD’s goals and expectations. The Bell 505 Jet Ranger X is less expensive than the MD530F. Bell 505 - $1.735M (base price) verses MD 530F - $3.8M (base price). Bell 505 consumes less fuel per hour, allowing for greater fuel endurance than the MD530F, has fewer life limited parts reducing scheduled maintenance requirements, and will allow higher patrol flight altitudes, which is safer for the aircrews and more neighborly by reducing noise pollution (this will be dependent on user agreement with CMH and weather conditions).
The helicopters are estimated to be delivered in December 2025. Upon receipt by the City, it is the intention of the Division of Police to sell an MD530F to maintain its complement of five helicopters.
Bid Information - This purchase is recommended to be made with a waiver of formal bidding requirements, because of prior experience with Bell helicopters and based on prior committee work and selection.
Emergency Designation: Emergency legislation is requested because of the need to get this agreement implemented as soon as possible (due to the long manufacturing lead time) and maintain the capabilities of Division of Police Helicopters.
FISCAL IMPACT: This ordinance authorizes an expenditure of $5,940,233.00 to enter into an agreement with Bell Textron Inc. for the purchase of two Bell 505 Basic Aircrafts. Funds are available to certify in the General Fund, Income Tax Set-Aside Subfund for this purpose. Bonds will be issued to reimburse the Income Tax Set-Aside Subfund.
Title
To authorize the Director of the Department of Public Safety to enter into an agreement with Bell Textron Inc. for the purchase of two Bell 505 Basic Aircraft for the Division of Police; to waive the competitive bidding provisions of the Columbus City Code; to authorize an amendment to the 2024 Capital Improvement Budget; to authorize the appropriation of $5,940,233.00 from the General Fund, Income Tax Set-Aside Subfund; to authorize the transfer of $5,940,233.00 between funds; to authorize the expenditure of $5,940,233.00 from the Public Safety Taxable Debt Fund; and to declare an emergency. ($5,940,233.00)
Body
WHEREAS, the Division of Police has the need to improve its helicopter fleet and expand the mission capabilities of their aircraft; and
WHEREAS, the Director of the Department of Public Safety seeks authorization from City Council to enter into an agreement with Bell Textron Inc. for the purchase of two Bell 505 Basic Aircrafts for the Division of Police; and
WHEREAS, the Division of Police recommends that it is in the City's best interest to waive the competitive bidding procedures of Chapter 329 of the City Code to allow for this agreement in order to take advantage of the competitive pricing and mission capability of the Bell 505 Basic Aircraft; and
WHEREAS, it is necessary to authorize the appropriation of $5,940,233.00 to the Public Safety Taxable Debt Fund; and
WHEREAS, it is necessary to amend the 2024 Capital Improvement Budget to shift budget authority between projects; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the "Treasury Regulations") promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the construction of the project described in this ordinance (the "Project"); and
WHEREAS, it is necessary to authorize the transfer of $5,940,233.00 between the General Fund 1000, Income Tax Set Aside Subfund 100099, and the Public Safety Taxable Debt, Fund 7705; and
WHEREAS, funds will need to be appropriated within the General Fund 1000, Income Tax Set Aside Subfund 100099 and within the Public Safety Taxable Debt, Fund 7705; and
WHEREAS, the City will reimburse the General Fund 1000, Income Tax Set Aside Subfund 100099; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $5,940,233.00; and
WHEREAS, an emergency exists in the usual daily operation of the Division of Police, Department of Public Safety, in that it is immediately necessary to authorize the Director to enter into an agreement for the purchase of two aircraft and related supplies and services as soon as possible in order to maintain the Division's aircraft capabilities, for the immediate preservation of the public peace, property, health, safety, and welfare; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Public Safety Director is hereby authorized to enter into an agreement with Bell Textron Inc. for the purchase of two Bell 505 Basic Aircraft for the Columbus Division of Police.
SECTION 2. That this Council finds it is in the City's best interest to waive the competitive bidding requirements of the City Code to allow the aforementioned purchase from Bell Helicopter Textron, Inc.
SECTION 3. That the 2024 Capital Improvement Budget be amended in Fund 7701 and Fund 7705, as follows, to establish proper authority for this purchase:
Fund | Project Name & Funding Source | Project Number | Current Authority | Revised Authority | Difference
7701 | Public Safety Campus (Voted 2022 ITSA Supported) | P330045-100000 | $50,000,000.00 | $44,059,767.00 | ($5,940,233.00)
7705 | Police Apparatus Replacement (Voted 2022 ITSA Supported) | P330034-100000| $0.00 | $5,940,233.00 | $5,940,233.00
SECTION 4. That from the unappropriated monies and from all monies estimated to come into said funds from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2025, the sum of $5,940,233.00 is appropriated in General Fund 1000, Income Tax Set Aside Subfund 100099, in Object Class 10 Transfer Out Operating, and in Fund 7705, Public Safety Taxable DebtFund, in Object Class 06 Capital Outlay per the account codes in the attachment to this ordinance.
SECTION 5. That the transfer of $5,940,233.00 or so much thereof as may be needed, is hereby authorized between the General Fund 1000, Income Tax Set Aside Subfund 100099, and the Public Safety Taxable Debt, Fund 7705, per the account codes in the attachment to this ordinance.
SECTION 6. That the City Auditor is hereby authorized to transfer said funds to the Public Safety Taxable Debt Fund, Fund 7705, at such time as is deemed necessary by the City Auditor, and to expend said funds, or so much thereof as may be necessary.
SECTION 7. That upon obtaining other funds from the 2024 Bond Sale for the City of Columbus, the City Auditor is hereby authorized and directed to repay the General Fund 1000, Income Tax Set Aside Subfund 100099 the amount transferred under Section 5.
SECTION 8. That the City intends that this ordinance constitutes an "official intent" for purposes of Section 1.150 2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $5,940,233.00 (the "Obligations"). The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of Treasury Regulations Section 1.150 2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
SECTION 9. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 10. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 11. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund upon receipt of certification by the Director of the Department administering said project that the project has been completed and the monies are no longer required for said project.
SECTION 12. For the purpose stated in Section 1, the expenditure of $5,940,233.00 or so much thereof as may be necessary to pay the cost thereof, be and is hereby authorized from the Public Safety Taxable Debt Fund, Fund 7705 in object class 06 Capital Outlay per the accounting codes in the attachments to this ordinance.
SECTION 13. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.