Explanation
BACKGROUND: : This ordinance authorizes the Director of the Department of Public Safety to enter into an agreement with Rolls Royce Corporation and MD Helicopters, Inc for the upgrade of four (4) Division of Police helicopter models from MD500E to MD500F. The major benefits of this upgrade are:
· A substantial performance increase over the MD500E - a 200 Standard Horse Power increase.
· Improved safety margins - especially in heavy, high or hot conditions
· Increased payload
· Improved reliability - reduced demand on engine drive
· Expanded operating profile allows for new missions to be considered
· A new Rolls Royce C250-30HU Engine
· Fresh Factory Certification
· Flight Test Certification
· A significant number of new parts and associated warranties
· New serial number identifying the aircraft as a zero timed F Model Helicopter
· MD Helicopters holds the FAA Production Certificate for the 369FF and, therefore is the only company allowed to produce and certify the MD500F aircraft (helicopter)
· Cost effective vs buying new helicopters.
The Columbus Division of Police will deliver four (4) of its current helicopters, as specified in the attached service agreement, to MD Helicopters in Mesa, Arizona. MD Helicopters will receive the new engines from Rolls Royce, remove the old engines from the helicopters on site and return the old engines to Rolls Royce along with the engine log book. MD Helicopters will then proceed with the installation of the new engines and the upgrades to the air frame on each of the four(4) helicopters. The cost totals $3,000,000 which will be paid by providing or trading a current Division of Police MD500E, Serial No.00560E, which is valued at $700,000 plus $2,300,000. More specifically, $575,000 will be paid upon completion for each aircraft converted.
Bid Information - This agreement is being requested under the sole source provisions of the Columbus City Code because the transaction is an upgrade to Helicopters previously purchased from MD Helicopters Inc.
Contract Compliance No.: MD Helicopters, - 86-0944088. Expiration Date 06-02-2017
Emergency Designation: Emergency legislation is requested because of the need to get this agreement implemented as soon as possible and maintain the capabilities of Division of Police Helicopters.
FISCAL IMPACT: This ordinance authorizes an expenditure of $2,300,000.00 from the Special Income Tax Debt Fund to enter into an agreement with Rolls Royce Corporation and MD Helicopters, Inc for the upgrade of four (4) Columbus Police Helicopters. Funds were budgeted in the Special Income Tax fund for this agreement.
Title
To authorize and direct the Director of the Department of Public Safety to enter into an agreement with MD Helicopters Inc. and Rolls Royce Corporation for the upgrade of four (4) Police helicopters in accordance with sole source procurement; to authorize an appropriation of $2,300,000.00 from the Special Income Tax Debt Fund, to authorize an expenditure of $2,300,000.00 from the Special Income Tax Debt Fund, to authorize a trade-in credit with Police helicopter Model MD500E, Serial No. 00560E, and to declare an emergency. ($2,300,000.00)
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 MD Helicopters Inc., and Rolls Royce Corporation to upgrade four (4) Police helicopters from MD500E to MD500F; and
WHEREAS, the upgrade will create a substantial increase in helicopter performance, reliability, and mission response over the current models, and
WHEREAS, the agreement to upgrade the existing Police helicopters is less expensive then purchasing new aircraft, and
WHEREAS, as part of the agreement and payment, the Division of Police will trade-in aircraft Model MD500E, Serial No. 00560E, to MD Helicopters Inc., and
WHEREAS, this agreement is in accordance with the sole source provisions of the City Code Chapter 329, 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 enter into an agreement for the upgrade of Police Helicopters as soon as possible in order to maintain aircraft capabilities for the 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 and directed to enter into agreement with MD Helicopters, Inc. and Rolls Royce Corporation for the upgrade of four (4) Police helicopter models from MD500E to MD500F in accordance with the sole source provisions of City Code Chapter 329.
SECTION 2. That from the unappropriated monies in the Special Income Tax Debt Fund No. 430, and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2015, the sum of $2,300,000.00 is appropriated to the Division of Police, Department of Public Safety, No. 30-03, Object Level 03- 6652, OCA Code 302018.
SECTION 3. That the expenditure of up to $2,300,000.00, or so much as thereof as may be needed, be and is hereby authorized from the Special Income Tax Debt Fund to pay MD Helicopters Inc., the cost thereof as described in Section 1 of this ordinance as follows:
DIV FUND OBJ LEV (1) OBJ LEV (3) OCA
30-03 430 06 6652 302018
SECTION 4. As part of the compensation to MD Helicopters Inc. and Rolls Royce Corporation, the Division of Police will give for a trade in value of $700,000 the helicopter MD500E, Serial No. 00560E.
SECTION 5. That for the reasons stated in the preamble hereto, which is hereby made a part thereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.