Title
Police Air Fleet Replacement (Ordinance S-47230)
Description
Request to authorize the City Manager, or his designee, to adopt the recommended replacement strategy for the Police Department's core aircraft fleet. Funds are available in this year's budget to begin this replacement process. Further request authorization for the City Controller to disburse funds required for this item.
Report
Summary
Over the past two years, the Police Department has provided information to the City Council on Police aircraft long-term needs. At the May 13, 2020 Public Safety and Justice Subcommittee meeting, the Subcommittee recommended approval for the Police Department to have an aviation industry expert assess the department’s air fleet and develop an aircraft fleet replacement plan. City Council approval was received at the June 3, 2020, Formal City Council meeting to fund the assessment. Van Winkle Aviation, LLC was hired by the City of Phoenix to conduct the air fleet assessment. An onsite review was conducted in June, and a report outlining fleet replacement recommendations, as well as funding and purchasing options was submitted in a report to the City in August. The consultant presented his recommendations at the Dec. 9 Public Safety and Justice Subcommittee.
Since receiving the aircraft fleet recommendations from Van Winkle Aviation, LLC, staff has worked closely with the Budget and Research and Finance Departments to develop an air fleet replacement strategy that conforms with the budget.
Background - Current Police Air Fleet
The Police Department has a total aircraft fleet of 10 units, which consists of:
- Five patrol helicopters, purchased between 2004-10.
- One twin-engine (rescue) helicopter, purchased in 2005.
- One fixed-wing Pilatus PC-12, purchased in 2008.
- Three fixed-wing piston aircraft (1981 Cessna 172, 1972 Cessna 182, and 1986 Cessna P210).
The industry standard for helicopters is seven years. Maintenance on the aircraft fleet is part of the daily operations. Scheduled maintenance is based on flight hours where specific components are inspected, repaired and/or replaced. The age of the current fleet results in unscheduled maintenance, which is costly and difficult to budget. It also results in more frequent scheduled maintenance that increases costs. The frequency of unscheduled and scheduled maintenance also results in less time the aircraft is operational. Additionally, because of the age of the aircraft, the current fleet is utilizing old technology, which is less efficient, and in some situations can pose officer safety issues.
The Department’s Air Support Unit (ASU) flew approximately 5,000 hours and responded to more than 10,000 calls for service last year. However, the ASU was unable to respond to over 4,000 requested calls for service due to reduced flight hours.
Recommendation
In the absence of a recurring bond program, the air fleet must be maintained and replaced at regularly scheduled intervals or be grounded, which would cause significant operational issues for the department. Given the age and increased maintenance costs associated with the core fleet (five patrol helicopters, one rescue helicopter, and one Pilatus), staff recommends adopting a standard 10-year replacement plan to ensure operational continuity and to eliminate the risk and liability associated with the aging fleet. Another benefit of adopting a 10-year replacement plan is that we will be maximizing trade-in value and reducing ongoing operations and maintenance costs associated with an older fleet. The recommended replacement strategy would be considered an ongoing budgetary expense and would not be dependent on a new bond program. To accomplish this goal staff recommends that each of the five aircraft identified above be replaced as soon as possible preferably within the next five years. The estimated cost associated with replacing these units is between $48-$50 million. Any efforts to expand the fleet beyond the five-core units identified above would require a supplemental request or expansion through a future General Obligation Bond Program.
Staff recommends replacing one unit per year for the next five years. To accomplish this goal staff recommends creating an “Air Fleet Sinking/Replacement Fund.” This fund would be funded with a GF transfer of approximately $7 million-per-year through FY 2025-26 and approximately $8.5 million in FY 2026-27. After that, the transfer amount would decrease to approximately $4.5 to $5 million-per-year. From this point forward the replacement fund would have the resources required to ensure that each aircraft could be replaced every 10 years as suggested by the independent consultant. Under this option, the first five years would require significant budgetary resources before flattening out to a lower level because of the upfront replacement costs. Any efforts to expand the fleet beyond the five core units identified above would require a supplemental request or expansion through a future General Obligation Bond Program.
Procurement Information
If approved, staff will conduct a procurement process as set forth in the Phoenix City Code, chapter 43. A solicitation is planned for spring of 2021 with staff seeking City Council approval for the contract award in the fall of 2021. The procurement process will consist of either issuing a Request for Proposals (RFP) or adopting a Cooperative Agreement from another public agency that used a competitive process.
Financial Impact
General Fund and General Obligation Bond Funds are available in this year's budget to begin this replacement process. Subsequent years will be built into the General Fund five-year forecast that will be presented to City Council on March 2, 2021.
Concurrence/Previous Council Action
This recommendation was approved by a vote of 4-0 at the Public Safety and Justice Subcommittee meeting held Dec. 9, 2020.
Department
Responsible Department
This item is submitted by Assistant City Manager Milton Dohoney, Jr. and the Police Department.