REPORT TO THE CITY COUNCIL
FROM: PACO BALDERRAMA, Chief of Police
Police Department
BY: MINDY CASTO, Police Deputy Chief
Support Division
SUBJECT
Title
Actions pertaining to the Fresno Police Department Helicopter “Skywatch” Unit.
1. Affirm City Manager’s determination that Safran Helicopter Engines USA Inc. is uniquely qualified to provide service and support of our helicopters; and
2. Approve an amended to the agreement with Safran Helicopter Engines USA Inc. extending the term of the contract to December 31, 2025, and increasing the payment and insurance for a total not-to-exceed amount of $450,000 annually (or $1,800,000 over four years)
Body
RECOMMENDATION
Staff recommends that Council authorize the Chief of Police or designee to execute the amendment to the agreement with Safran Helicopter Engines USA Inc. to ensure continued mechanical support for the Arrius 2F gas powered turbine engines and all related parts in the Police Department’s two Eurocopter EC120 Colibri helicopters, by extending the term to December 31, 2025, increasing the payment and insurance for an amount not to exceed $450,000 annually (or $1,800,000 over four years).
EXECUTIVE SUMMARY
The Fresno Police Department and Safran Helicopter Engines USA Inc. have mutually agreed to amend their previous contract to provide mechanical support for the turbine engines and all related parts contained in the department’s two EC 120 helicopters. This amended agreement is necessary to extend the term, update the insurance language contained within the contract, and to solidify the hourly rate for maintenance and support.
BACKGROUND
The turbine engines in the department’s two EC 120 helicopters require constant maintenance due to their age as well as the complex nature of the engines themselves. We have partnered with Safran Helicopter Engines USA Inc. since 2004 and have an outstanding relationship with them. Safran Helicopter Engines USA Inc’s. reputation within the aviation industry is unparalleled.
In 2004, shortly after the acquisition of the EC 120 helicopters, the Fresno Police Department entered into an engine maintenance and support agreement with Safran, commonly referred to as "Support By the Hour" (SBH). The SBH program enables the Fresno Police Department to pay an hourly rate for each hour flown on the engine. The cost of engine overhauls and other valuable services are factored
into the hourly rate. We are afforded many extra benefits that new customers would not likely be afforded because they were included in our initial agreement. The number of hours flown on each engine is reported at the end of each month and we receive a monthly invoice for the service. The hourly cost of the service normally increases three percent at the beginning of each calendar year. Although, there was a one percent increase in 2021 and a two percent increase in 2022. The current hourly rate is $230.53, and the monthly invoice will fluctuate based on the hours flown. The average monthly cost for fiscal year 2021 was $28,357.84.
Safran's Support By the Hour (SBH) allows the cost of an engine overhaul to be distributed monthly and there is no additional charge when an engine overhaul is due. The approximate cost of an engine overhaul, absent the SBH agreement, is between $250,000 and $300,000. The Fresno Police Department and Safran share the freight cost of shipping the engine to and from.
Safran's SBH provides a loaner engine during the engine overhaul, allowing the aircraft to be flown when it would otherwise be grounded. Additionally, Safran provides specialized tools and lubricants needed for an engine exchange at no cost. Safran's SBH covers the cost of shipping and testing of all engine oil samples between engine overhauls. Service support from Safran's production and maintenance experts is available when needed.
Safran manufactures, services, and overhauls the engine that is specific to our helicopter. There are no FAA-authorized Arrius 2 repair centers other than Safran within the United States today that can repair and/or overhaul both the engine and the Hydro-Mechanical Unit or the Fuel Control Unit. Safran serves as the sole source provider of this service.
Safran also provides the Support By the Hour maintenance and support agreement, which enhances the efficiency of the air support unit's operation and provides consistency to fiscal management of the unit. The Support By the Hour (SBH) agreement is a trademarked document and Safran is the sole source provider of this service. Recently it was discovered that an amendment to the original agreement between the Fresno Police Department and Safran Helicopter Engines USA Inc. was required to update the insurance requirement language and to solidify the hourly maintenance cost rates.
ENVIRONMENTAL FINDINGS
This is not a “project” for the purposes of CEQA, pursuant to CEQA Guidelines Section 15378.
LOCAL PREFERENCE
Local preference is not applicable because this is a contract amendment.
FISCAL IMPACT
Helicopter maintenance is an annually budgeted item within the Fresno Police Department’s budget.
Attachments:
Safran Amendment to Support By the Hour Agreement
Uniquely Qualified Memo