DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: CityWide
SUBJECT:
Ratification of Services Rendered for Repair of Police Helicopter N820PM Engine & Modules
SUMMARY:
This ordinance authorizes ratification of payment to Turbomeca USA, Inc. for emergency repairs of Police Helicopter N820PM’s engine and modules. The engine suffered damage due to a hard landing on November 13, 2015. Emergency repair services were rendered and completed by the engine manufacture under an exemption from the competitive bid process in March 2016. The invoice from Turbomeca USA, Inc. in the amount of $104,952.39 was received on March 31, 2016 and subsequently approved by the SAPD Helicopter Division.
BACKGROUND INFORMATION:
Submitted for Council consideration and action is the ratification of payment to Turbomeca USA, Inc. for the repairs of the Police Helicopter N820PM’s engine and modules. The engine was damaged during a hard landing on November 13, 2015. Emergency inspection and repair services were procured from the engine’s manufacturer, Turbomeca USA, Inc. under an unforeseen damage exemption from competitive bidding requirements. The engine, to include modules 1, gearbox section and 2, gas generator and power turbine section required full disassembly for a total of 224 labor hours. Parts found to be damaged were replaced to complete the repairs. A claim for the invoiced amount was filed with the City’s aerospace insurer who covered the loss. The amount of $99,302.97 was reimbursed to the City leaving a balance of $5,649.42 that was deducted from the claim for parts that were replaced due to normal wear and tear, and not covered under the policy. Funding in that amount is available from the FY2016 Police Department Operating and Maintenance Fund.
ISSUE:
This ordinance will ratify payment of the expenses incurred due to emergency repairs of the Police Helicopter N820PM’s engine and modules. The inspection determined that the engine and modules were not faulty; therefore, the costs of inspection and repairs were not covered under warranty.
This contract is an exception to the Small Business Economic Development Advocacy (SBEDA) and Local Preference Programs.
The Veteran-Owned Small Business Preference Program does not apply to goods/supplies contracts, so no preference was applied to this contract.
ALTERNATIVES:
This contract was necessary to expedite the repair of Police Helicopter N820PM’s engine and modules as part of insurance claim 2149873638US.
FISCAL IMPACT:
A claim was filed for the invoiced amount of $104,952.39 with the City’s aerospace insurer who is covering the loss. Once the $104,952.39 is paid by the City, the amount of $99,302.97 will be reimbursed to the City from the insurer as a result of the claim. This will leave a balance of $5,649.42 that will be deducted from the claim for parts that were replaced due to normal wear and tear, and not covered under the policy. Funding in that amount is available from the FY 2016 Police Department Operating and Maintenance Fund.
RECOMMENDATION:
Staff recommends approval of this action to ratify payment to Turbomeca USA, Inc. in the amount of $104,952.39 for the repair of Police Helicopter N820PM’s engine and modules.
This contract was procured under an unforeseen damage exemption from competitive bidding requirements and a Contracts Disclosure Form is not required.