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HomeMy WebLinkAbout06 - Proposal for Combined Helicopter Law Enforcement Operations• u • 0 CITY OF NEWPORT COCOUNCIL AGENDA ITEM NO r, POLICE DEPARTMENT F:Y 'HE CITY Ct- ..- SEP 91::?; August 28, 1996 Ln n - r, n, _C? TO: Honorable Mayor, Members of the City Council and City Manager FROM: Bob McDonell, CHIEF OF POLICE C - 301 SUBJECT: Proposal for Combined Helicopter Law Enforcement Operations Recommendation: As unanimously approved by the Public Safety Committee, it is recommended the City Council: Approve the reorganization of the AirBorne Law Enforcement (ABLE) Services combining the helicopter units of both the Newport Beach Police Department and the Costa Mesa Police Department. 2. Authorize the City Manager to sign a revised ABLE Memorandum of Understanding which is consistent with this report and to initiate Option One of the proposed ABLE reorganization. 3. Transfer $39,447 from the ABLE Helicopter Trust Fund Account to the Police Department for the 1996 -1997 Fiscal Year Budget. Analysis: Effective September 1, 1996, the Huntington Beach Police Department and the Orange County Sheriff's Department are withdrawing from ABLE and will no longer be a part of this program. Although the ABLE program was effective from an operational standpoint, it did not meet its additional goal of reducing costs and providing reasonable offsetting revenue. The reimbursements were based upon calls for service but did not account for the overhead costs of keeping the helicopters aloft between calls. An attempt was made to restructure the program and assess the costs in a more realistic manner, but an agreement in how to reorganize the program could not be reached amongst the four participating agencies. As a result, the remaining cities of Newport Beach and Costa Mesa will reorganize the ABLE program to continue operations. The proposed restructuring of ABLE will consist of the cities of Newport Beach and Costa Mesa combining their helicopter units into one joint unit, providing service to both cities. The purpose is to maximize helicopter coverage while reducing the costs of operation. This single unit will provide 18 hours of coverage with 10 hours of flight time every day, seven days a week. The Proposal to Combtf Helicopter Operations • Page 2 revised unit will reduce the number of personnel from a total of 10 between the S two separate units to seven in the new unit. At the same time, the number of helicopters will be reduced from four to three, the two hangar operations will be combined into one, and the number of mechanics will be reduced by one part- time position. These changes will result in significant savings in personnel, maintenance and operational costs. A portion of these savings will be dedicated to establishing a capitalization fund to plan for the future purchase of replacement helicopters. Attached is a proposal to combine the Newport Beach Police helicopter operations with the Costa Mesa Police Department under a modified ABLE Memorandum of Understanding. This proposal recommends providing one Sergeant and two Officers and our existing helicopters and equipment to ABLE, along with four Officers and two helicopters from the Costa Mesa Police Department to conduct air operations for both the City of Newport Beach and the City of Costa Mesa. This proposal was presented to both City Managers and Police Chiefs on July 23, 1996. In the report, two options were proposed. The first option would replace two of the oldest helicopters with one new McDonnell Douglas 500E helicopter and begin funding for future helicopter replacement, which neither City has done before. This option can be accomplished within current budget allocations and will result in significant maintenance cost savings due to the replacement of two of the oldest aircraft. The second option analyzes postponing the onset of the capitalization program and maintaining three existing older helicopters that all have extensive hours of use. Although this option would have some immediate savings, it would result in increased maintenance costs and not address the necessity of replacement helicopters. It is recommended the City Council authorize the City Manager to enter into an agreement with Costa Mesa incorporating Option One. This option reflects the share of ABLE costs for the City of Newport Beach to be $870,597 for Fiscal Year 1996 -1997. This amount includes all costs of operation including personnel, operational and capitalization costs for the program. Authorized funding for helicopter operations in the Police Department's budget for this Fiscal Year is $892,780. As noted in the attached table, even with full capitalization and the lease purchase of a new helicopter, this option will reduce the costs of helicopter operations by $22,183. This option proposes returning the third police officer position from the existing Helicopter Unit to the Patrol Division. To maintain this position for the final nine months of this fiscal year would increase the Police Department budget by $39,447. This increase should be offset by transferring $39,447 from the ABLE Helicopter Trust Fund Account to the Police Department 1996/1997 budget. Option One is the recommended option by both City Managers and Chiefs of Police, as well as staffs of both Police Departments. This option is supported because it will initiate, for the first time, capital funding for replacement • helicopters. It will authorize the sale of the two highest hour ships and the lease Proposal to CombAelicopter Operations 4 Page 3 . purchase of a replacement ship, without postponing these inevitable, yet necessary costs, while at the same time, saving considerable money in maintenance costs. The proposal recommends the Sergeant position to be provided by the Newport Beach Police Department receive an additional 10% flight pay incentive. The increase is justified because of the additional duties and responsibilities the Sergeant will be required to assume, including becoming a Certified Flight Instructor for the Unit, supervising the additional personnel and coordinating the unit between two agencies and other potential contract agencies. It is also appropriate, given the incentive pay received by all other personnel in the unit. Currently, the Costa Mesa Sergeant assigned to the Helicopter Unit receives 12 -1/2% flight incentive pay, as do all of the Costa Mesa pilot officers assigned to the unit. The Newport Beach pilot officers receive either 15% Master Officer pay or flight pay of 10 %. Further discussions have taken place between the Santa Ana Police Department, the Costa Mesa Police Department and the Newport Beach Police Department.. The Santa Ana Police Department has agreed to continue to contract for helicopter services from this new ABLE program as they did under the previous ABLE format. They have a minimum of $200,000 available for air support for this fiscal year and desire to enter into an agreement to become an eventual partner. The City of Newport Beach would be in a position to receive • one -half of these funds through our involvement with ABLE. This would result in an additional $100,000 in revenue to the City of Newport Beach in this fiscal year and result in a total net savings to this City of $60,553. Additional potential revenues will be pursued under the new ABLE format as well. The Regional Narcotic Suppression Unit, the Orange County Fire Authority, and the Irvine Police Department have all indicated an interest in contracting for some degree of helicopter services. Efforts will continue to establish contractual arrangements with other agencies to make the most effective use of our helicopters and help to offset the costs of operation. Conclusion: It is recommended the City of Newport Beach formally combine helicopter operations with the City of Costa Mesa under a reorganized ABLE Memorandum of Understanding. It is further recommended the City Council approve the reorganization under the Option One proposal. The proposal will reduce the overall costs of operation, provide for the lease purchase of one replacement helicopter, while initiating the necessary capitalization for replacement aircraft. It is also recommended the Police Department retain the third officer position made available through the ABLE reorganization and reassign it to the Patrol . Division. The end result would be an increase of $39,447 to this year's budget, to be offset by existing money in the ABLE Helicopter Trust Fund Account. As Proposal to Combi *elicopter Operations Page 4 an aside, it is important to note in the 1995/1996 Fiscal Year, the Police Department realized total budgetary savings (according to current estimates of the Assistant Finance Director at the time this report was written), of approximately $371,742, the majority of which involved salary and benefits. It is anticipated the Police Department will again have salary savings in this fiscal year, which may also be used to offset this increase. At the same time, it is anticipated the City of Newport Beach's share of ABLE revenue will exceed $100,000 in this fiscal year, providing an additional source of funding to the City. Respectfully Submitted, Paul Henisey, Captain Patrol/Traffic Division Commander ;;4 Bob McDonell, CHIEF OF POLICE Attachments 1. Table of Newport Beach ABLE Costs 2. Proposal for Combined Law Enforcement Helicopter Operations 3. Resolution Approving Reorganizaton Plan for ABLE n 0 CJ 0 &port Beach Helicopter Cots Equipment Costs Current Option 1 Option 2 Budget Budget . Budget Personnel Costs Total Total Total Sergeant 114,000 124,000 124,000 Pilot Officer 94,500 94,500 94,500 Pilot Officer 94,500 94,500 94,500 Pilot Officer 94,500 0 0 Overtime est. 11,150 11,150 11,150 Personnel Subtotal 1 408,650 324,150 324,150 Equipment Costs Helicopter Assoc Dues 210 Flight Physicals 600 Training 2,500 CFI Recertification 1,600 Uniforms 2,000 Fuel 69,660 Oil 2,310 Insurance 82,525 Hangar Expense 28,200 Scheduled Maintenance 269,565 Unscheduled Maintenance 24,960 Equipment Subtotal 484,130 308,835 357,585 Capital Costs 0 237,612 0 Unit Total $892,780 $870,597 $681,735 Reassignment of 1 Officer Position to Patrol' $61,630 $61,630 1996/7 Fiscal Year Gain or Loss ($39,447)1 $149,415 `Reflects 9 months of salary for an officer position returned to Patrol Division S 46ta Mesa Police Departright Newport Beach Police Department July 23, 1996 To: Bob McDonell, Chief of Police, Newport Beach Police Dave Snowden, Chief of Police, Costa Mesa Police From: Captain Dave Brooks Captain Paul Henisey Subject: Proposal For Combined Law Enforcement Helicopter Operations RECOMMENDATION: It is proposed the cities of Newport Beach and Costa Mesa combine law enforcement helicopter operations into a single unit and provide service to both cities through a Memorandum of Understanding (MOU) effective September 1, 1996. This MOU will continue the existing ABLE program with some modifications following the departure of the Orange County. Sheriff's Office and the Huntington Beach Police Department on August 31, 1996. ABLE STRUCTURE: Governance: The cities of Costa Mesa and Newport Beach will be the Primary Agencies of the ABLE . MOU. ABLE will be administered by a Governing Board consisting of the chief law enforcement officers of the Primary Agencies, and a staff -level representative appointed by the governing body of each. Funding: ABLE will be funded by direct costs levied against each Primary Agency. Operational and capital costs of operation will be apportioned equally between the agencies. Personnel costs will be the responsibility of each Primary Agency. Any reimbursements received by ABLE for providing public safety helicopter operations will be apportioned equally between the Primary Agencies. Operational Issues: The costs to operate ABLE include salaries, benefits, hangaring, insurance, maintenance, per -hour flight costs, administrative costs, and capital costs for aircraft. These are broken down in some detail below, but there are operational assumptions that need to be explicitly discussed. Salaries and benefits for all flight personnel will continue to be the responsibility of each Primary Agency. ABLE will initially consist of one Sergeant and two Pilot Officers from the City of Newport Beach and four Pilot Officers from the City of Costa Mesa. The Sergeant will have overall responsibility for the unit and functional supervision of all six Pilot Officers. The Sergeant will report to the Governing Board. 6 i ABLE MOU RecomAdation Page 2 The cost analyses are based on the Board's recommendation that flight personnel work a 9 -hour shift. This shift is currently in use by the Costa Mesa Helicopter Unit and would require a change in the hours of operation for the Newport Beach Helicopter Unit. The seven personnel working nine hour shifts will provide for two 9 -hour shifts, seven days a week, 52 weeks a year. ` Existing helicopters and equipment will become part of the ABLE program and jointly shared by both agencies. * Fueling of the helicopters will be completed at Costa Mesa's helipad under Costa Mesa's current fuel purchase agreement. Costa Mesa has a long -term lease at its current hangar site. The hangar site is shared with the Orange County Sheriff's Helicopter Unit. Costa Mesa is currently responsible for 51 % of the cost and Orange County Sheriff is responsible for remaining 49 %. Newport Beach would contribute a maximum of 25.5% of the total cost of hangar facilities under the existing agreement. If OCSO withdraws from Martin Aviation, the ABLE MOU would be subject to renegotiation regarding the share of hangar costs. Mechanics are provided through an existing arrangement with Martin Aviation. It is agreed Martin Aviation will hire Russ Eastman, currently under contract with the Newport Beach Helicopter Unit, to provide mechanic services. The current.ABLE MOU should be retained and reflect the changes recommended in this report. ABLE is an existing authorized government agency with an accepted operations manual recognized by the FAA. It will be necessary to make revisions to both the MOU and the Operations Manual to incorporate these changes. No existing ABLE participant fully capitalizes aircraft replacement costs in current budgets. This program will not have that luxury. While it is anticipated that existing aircraft will be included with ABLE, a capital fund must be established and adequately funded to provide for aircraft replacement. COSTS: The costs for the proposed ABLE program Personnel, Operations, and Capitalization. upon the establishment of ABLE. Personnel: are included as part of three categories: All costs are anticipated expenses based The personnel costs outlined below are budgeted total compensation for Fiscal Year 1996/1997. Costa Mesa (4) Pilot Officers Overtime Costs Total Total Newport Beach $342,240 Sergeant (2) Pilot Officers $11,150 $353,390 Total Personnel Costs $677 $124,000 $189,000 $11,150 $324,150 ,540 I ABLE MOU RecomOndation Page 3 Operational: Helicopter Maintenance: New 500E N244CM NB500E Unscheduled Maintenance 3000 hours @ $22.40/hour Subtotal Mechanics *: Martin Aviation Contract 2 Full -time, 1 Part -time Hangar Expense *: Lease Utilities Taxes Janitorial Hangar Keeper Insurance Subtotal i 0 70,200 100,600 67.200 $238,000 $160,125 50,500 2,910 1,380 1,590 2.165 $58,545 *The costs of mechanics and the hangar expense are those amounts ABLE would be responsible for after OCSO pays their share of the costs. Insurance: Includes a reduction in the maximum liability amount from $100 million to $50 million. Estimated annual cost: $75,000 Fuel: 75,000 Gallons $63,000 Miscellaneous Expenses: This category includes uniforms, training and conferences, dues and memberships, office supplies and equipment, telephones, small tools, etc. Estimated annual cost: Total Operational Costs $23,000 $617,670 Capitalization (Refer to Capital Cost Section for a complete analysis): Replacement costs for a three ship operation: $475,223 TOTAL PROGRAM COSTS: Total Personnel, Operational and Capital Costs: $1,770,433 n LJ P 11 9 Ll ABLE MOU Recomradation Page 4 Cost Per Hour of Operation: Primary Agency Share: Personnel Operations Capitalization Total Agency Costs Capital Cost Analysis: 0 $590 Costa Mesa Newport Beach $353,390 $324,150 $308,835 $308,835 $237,612 $237,612 $899,837 $870,597 Currently, neither city capitalizes replacement costs for existing helicopters. ABLE will require planning for future replacement of helicopters. Both the City of Newport Beach and the City of Costa Mesa each own two helicopters. This total of four helicopters exceeds the equipment needs of the proposed operation. It is anticipated ABLE will fly about 3000 hours a year. Based upon this flight time it is recommended ABLE retain three helicopters. It is just as cost - effective to fly three helicopters 1000 hours each per year than to fly two helicopters 1500 hours each per year. This is because the maintenance and equipment replacement costs which are a significant portion of the overall costs are based upon hours of flight time. At the same time, cost effective helicopter life can be extended from seven years to ten years with the reduced number of flight hours. Comparing the total cost outlay including all capital and maintenance costs, a helicopter flown at 1500 hours per year for seven years will cost a total of about $1,456,000 versus a helicopter flown at 1000 hours per year for 10 years costing a total of $1,461,000. With two helicopters, the unit would replace each helicopter every seven years. With three helicopters, the unit would replace each helicopter every ten years. The end result is ABLE will have to purchase a new helicopter every three and a half years regardless whether we keep two helicopters or three helicopters. The only savings would be a one -time gain of about $300,000 on the sale of one of our existing helicopters and a slight savings in insurance costs. However, there are many reasons to maintain three helicopters rather than two. First, the City of Santa Ana has expressed a sincere interest to be a part of this program. They currently have money allocated to purchase helicopter time and are interested in participating, perhaps even as a partner in the future. If this occurs, the number of shifts flown per week would likely increase and require the third helicopter. Second, maintenance schedules, especially for the two older ships, will require down -time. Unscheduled maintenance will increase the amount of down -time. With only two ships, there would be times when only one was flight- ready, but all flight operations would have to be canceled if it also required repairs. Third, both Departments desire to have the ability to fly surveillances, conduct fire suppression or provide this ability on a contract basis to other agencies such as RNSP or the Orange County Fire Authority. In addition, it is recommended training time be increased for the pilots above what is currently conducted. As it stands now, two helicopters provide minimum coverage for the basic schedule. Any additional flight time required for these other duties would conflict and detract from routine patrol time or significantly limit the revenue potential. Fourth, as indicated above, the long -term costs between a two ship operation and a three ship operation is virtually the same over the years. Based upon this information, it is recommended ABLE maintain three helicopters. G ABLE MOU Recomendation Page 5 Option One: There are many options to consider, although two deserve primary focus. As stated above, maintaining three helicopters makes the most sense. In Option One, it is necessary to determine an appropriate replacement schedule for the existing helicopters. Costa Mesa has two McDonnell Douglas 500E helicopters, one with 8,000 hours and the second one with 11,000 hours. Newport Beach has one 500E helicopter with almost 6,000 hours and a 500D helicopter with 10,000 hours. Based upon scheduled maintenance costs, the most cost - effective helicopter replacement time is prior to 10,500 hours. At this time, the engine and rotor are scheduled for a complete overhaul. It is also, generally the time when avionics and other equipment begin to show wear and tear from the constant vibration and result in increased downtime and expenses for unscheduled maintenance and repair. Therefore, it is recommended ABLE sell Newport Beach's 500D and Costa Mesa's highest hour 500E and replace both with a new 500E helicopter. Purchasing a new helicopter will provide savings included in this analysis of about $97,500 this year in maintenance costs and about $60,000 next year. Then, it is recommended the remaining two 500E's be replaced, one at four years and one at seven years. This will result in the continuing replacement of a helicopter every three and a half years with a service life of 10 years and 10,000 hours of flight time for each helicopter. To accomplish the financing, the complete purchase price of a new 500E will be about $1.1 million less approximately $500,000 for the resale of the two existing helicopters. Financing the lease /purchase of the remaining $600,000 will be $84,433 per year for 10 years. It will be necessary to establish a four year capital replacement fund for the next helicopter which will cost $196,998 a year. The third helicopter to be replaced at the seven year mark will require $113,690 per year. Finally it will be necessary to begin a capitalization for the eventual replacement of the new helicopter in ten years. This will require $80,102 per year. Except for the lease /purchase of the new helicopter, the capitalization funds should be set aside in an interest earning reserve account. The following table reflects the estimated capitalization costs over the next twelve years for ABLE: is u All of these costs have been adjusted for a 4% inflation rate and include interest of 7 % • for the reserve account and a 7% rate for the lease /purchase. It is important to note the actual capitalization costs decrease over the years as the replacement reserve account is built up to full funding and a regular replacement cycle is initiated. This is iD Lease/ Replace 2nd Replace 3rd Replace New Total per Purchase Ship -4 Yrs Ship -7 Yrs Ship -10 Yrs Year Year 1 84,433 196,998 113,690 80,102 $475,223 Year2 84,433 196,998 113,690 80,102 $475,223 Year 3 84,433 196,998 113,690 80,102 $475,223 Year 84,433 196,998 113,690 80,102 $475,223 Year 84,433 93,707 113,690 80,102 $371,932 Year 84,433 93,707 113,690 80,102 $371,932 Year 84,433 93,707 113,690 80,102 $371,932 Year 8 84,433 93,707 105,409 80,102 $363,651 Year 9 84,433 93,707 105,409 80,102 $363,651 Year 10 84,433 93,707 105,409 80,102 $363,651 Year 11 93,707 105,409 118,570 $317,686 Year 12 93,707 105,409 118,570 $317,686 is u All of these costs have been adjusted for a 4% inflation rate and include interest of 7 % • for the reserve account and a 7% rate for the lease /purchase. It is important to note the actual capitalization costs decrease over the years as the replacement reserve account is built up to full funding and a regular replacement cycle is initiated. This is iD ABLE MOU RecomAdation Page 6 because the lease /purchase of the new helicopter must be paid at the same time its replacement cost must be capitalized and the replacement payments set aside for the 2nd and 3rd helicopter must be accelerated. At the end of ten years the replacement .program will be self- sustaining. Option Two: Option two also retains a complement of three helicopters. This option proposes to postpone the purchase of a new helicopter for one year and sell just one existing helicopter with the proceeds placed in the capitalization reserve account. At the same time, it is recommended to postpone the initiation of capitalization funding of replacement helicopters for one year. This option provides the opportunity to establish the program and work out any issues or problems before making any major expenditures. It will also provide the ability to explore and develop service contracts and/or partnerships with surrounding communities. It is recommended ABLE sell Newport Beach's 500D and use the proceeds of approximately $228,000 to initially fund the Capitalization Reserve Account. This proposal will result in an increase of maintenance costs adding about $97,500 for Costa Mesa's 500E that would be retained. The breakdown of the three major cost components in Option 2 is as follows: Personnel Operational Capitalization Total Costs $677,540 $715,170 $0 $1,392,710 • This option saves ABLE $377,723 over the first year as compared to Option 1. In year two, ABLE could then begin the capitalization for replacement helicopter using the same formula as detailed in Option 1 and lease /purchase a new helicopter while selling the second helicopter. A complete detail of costs for this option is included in Appendix 2 attached to this report. Conclusion: It is recommended the cities of Costa Mesa and Newport Beach combine flight operations under a Memorandum of Understanding modifying the existing ABLE format. Both cities will realize cost savings while fully funding and capitalizing an effective, efficient law enforcement helicopter unit under Option 1 or taking the opportunity to establish the program in the first year under Option 2. This entity will also be able to provide the opportunity and ability to provide public service flight operations and use the potential reimbursement to help offset costs. Further discussion and analysis will be required to determine to what extent contracting of services or expansion of the partnership is feasible. Respectfully Submitted, Dave Brooks, Captain Costa Mesa Police Department Attachment Paul Henisey, Captain Newport Beach Police Department • Personnel: Appendix 1 • ABLE Costs - Option 1 Costa Mesa Sergeant (6) Pilot Officers Overtime Total Total Personnel Costs Operational: Helicopter Maintenance: New 500E N244CM NB500E Unscheduled Maintenance 3000 hours @ $22.40 1hour Subtotal Mechanics: Martin Aviation Contract 2 Full -time, 1 Part-time Hangar Expense: Lease Utilities Taxes Janitorial Hangar Keeper Insurance Subtotal Insurance Estimated annual cost: Fuel 75,000 Gallons Miscellaneous Expenses: Estimated annual cost: Total Operational Costs $342,240 $11,150 $353,390 0 70,200 100,600 67,200 50,500 2,910 1,380 1,590 2,165 Capitalization Costs: Replacement costs for a three ship operation: TOTAL PROGRAM COSTS: Cost Per Hour of Operation Newport Beach $124,000 $189,000 $11,150 $324,150 $677,540 $238,000 $160,125 $58,545 $75,000 $63,000 $23,000 $617,670 $475,223 $1,770,433 $590 Founding Agency Share: Costa Mesa Newport Beach Personnel $353,390 $324,150 Operations $308,835 $308,835 Capitalization $237.612 $2237.612 Total Agency Costs $899,837 $870,597 • • s • Appendix 2 • ABLE Costs - Option 2 Personnel: Sergeant (6) Pilot Officers Overtime Total Total Personnel Costs Operational: Helicopter Maintenance: N 1 44C N244CM NB500E Unscheduled Maintenance 3000 hours @ $22.40 1hour Subtotal Mechanics: Martin Aviation Contract 2 Full -time, 1 Part-time Hangar Expense: Lease Utilities Taxes Janitorial Hangar Keeper Insurance Subtotal Insurance Estimated annual cost: Fuel 75,000 Gallons Miscellaneous Expenses: Estimated annual cost: Total Operational Costs Costa Mesa $342,240 $11,150 $353,390 97,500 70,200 100,600 67,200 50,500 2,910 1,380 1,590 2,165 Capitalization Costs: Replacement costs for a three ship operation: TOTAL PROGRAM COSTS: Cost Per Hour of Operation Founding Agency Share: Personnel Operations Capitalization Total Agency Costs Newport Beach $124,000 $189,000 $11,150 $324,150 $677,540 $335,500 $160,125 $58,545 $75,000 $63,000 $23,000 $715,170 $0 $1,392,710 $464 Costa Mesa Newport Beach $353,390 $324,150 $357,585 $357,585 I4 $710,975 $681,735 \1) E *Agenda Item 6 RESOLUTION NO. 96 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, APPROVING THE TRANSITION AND REORGANIZATION PLAN FOR AIRBORNE LAW ENFORCEMENT SERVICES. THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, the public agencies of the City of Costa Mesa, City of Huntington Beach, City of Newport Beach and County of Orange ( "Member Agencies ") desire to cooperate with each other to exercise some or all of their powers to establish a transition and reorganization plan ( "Plan ") for the regional AirBorne Law Enforcement Service Agency ( "ABLE ") consistent with the Memorandum of Understanding ( "MOU ") entered into by the Member Agencies and such Plan is attached as Exhibit A and incorporated herein; and WHEREAS, the Member Agencies have and possess the power and authorization to finance, acquire, and maintain a public law enforcement helicopter service and facilities for the benefit of the lands and inhabitants within their respective boundaries and such services by ABLE have benefited their respective lands and inhabitants; and WHEREAS, the County of Orange and City of Huntington Beach have exercised their rights as a Member Agency to tender a notice of intent to voluntarily withdraw from the MOU and ABLE and propose to join together with the Cities of Costa Mesa, and Newport Beach to establish, operate, and maintain a cooperative Plan for helicopter service for the benefit of their respective lands and inhabitants during the transition and 0 reorganization of ABLE; and n WHEREAS, it is in the public interest to provide an orderly and efficient Plan by • which ABLE can be reorganized to accommodate the withdrawal of the County of Orange and City of Huntington Beach to avoid the disruption of helicopter service for the benefit of the Member Agencies lands and inhabitants and public agencies who have subscribed with ABLE for helicopter services; and WHEREAS, the Member Agencies have the authority to establish a Plan for the transition and reorganization of ABLE pursuant to California Government Code Sections 6500 et seq.; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Newport Beach, pursuant to the aforesaid authority, does hereby adopt and approve the Transition and Reorganization Plan attached hereto as Exhibit A and incorporated herein. BE IT FURTHER RESOLVED that the Chief of Police is hereby authorized to take • the necessary steps consistent with the Transition and Reorganization Plan to effectuate the reorganization of ABLE. PASSED AND ADOPTED this _ day of August 1996. ATTEST: tcatWskesoluthable.doc 6!29/96 APPROVED AS TO FORM: • • EXHIBIT A PLAN OF TRANSITION AND REORGANIZATION OF THE AIRBORNE LAW ENFORCEMENT SERVICES AGENCY 1. The AirBome Law Enforcement Services Agency ("ABLE") Board on June 27, 1996, found that there is a need for a plan of transition and reorganization because the member agencies on September 1, 1996, to remain in ABLE are the City of Costa Mesa and the City of Newport Beach. 2. The provisions of the Memorandum of Understanding, dated August 3, 1993 ( "MOU ") and Addendum No. 1 to Agreement, dated August 1, 1994, and Addendum No. 2, dated August 1, 1994 ("Addendums ") shall remain in full force and effect during the transition period from July 1, 1996, and ending at midnight on August 31, 1996. 3. The ABLE Board has found that member agencies of the County of Orange and City of Huntington Beach shall be deemed to have voluntarily withdrawn from ABLE effective at midnight on August 31, 1996. The ABLE member agencies, as of September 1, 1996, shall be the City of Costa Mesa and City of Newport Beach. 4. On September 1, 1996, the provisions of Paragraph 2.01 of the MOU and Addendums are amended to read as follows: "2.01 By this Agreement, Costa Mesa and Newport Beach agree to cooperate with each other in the provisions of helicopter services in the. manner and under the terms of this Agreement. The cooperative use of the Member Agencies' helicopter services shall be known as the AirBorne Law Enforcement Services ( "ABLE "). The Member Agencies may agree on a different call name for ABLE. 5. On September 1, 1996, the provisions of Paragraph 3.02 of the MOU and Addendums are amended to read as follows: "3.02 The ABLE shall be managed by a Board consisting of the Chiefs of Police of Costa Mesa and Newport Beach and one appointee for each Member Agency for a total of four (4) Board Members. The Chiefs of Police of Costa Mesa and Newport Beach shall each appoint one Board member and their alternate. Each Board Member, or in the absence of a Board member, the alternate shall have one vote on all matters before the Board. The members of the Board may be supplemented or amended from time to time." 6. On September 1, 1996, the provisions of Subparagraph (B) of Paragraph 6.02 of the MOU and Addendums are amended to read as follows: "(B) In the case of voluntary withdrawal, written notice shall be given one . hundred twenty days (120) prior to the end of a fiscal year, except that such notice may be shortened by unanimous approval of the Board." 7. To the extent that credits for service exist for the subscriber agencies to ABEL as of July 1, 1996, ABLE and its four (4) member agencies shall provide service at no additional charge to those subscriber agencies with subscriber agreements for fiscal year 1995 -96 for a transition period from July 1, 1996, and ending at midnight on August 31, 1996. During the transition period, the subscriber agreements shall be deemed to be in effect for all purposes as consideration for the services by ABLE during such period. All credits for service under Paragraph 4.01 of any subscriber agreements for fiscal year 1995 -96 shall be deemed satisfied at the end of the period ending at midnight on August 31, 1996. Upon approval of this plan by the ABLE Board, ABLE shall notify all subscribers of this plan and service for credits during the transition period. 8. After September 1, 1996, ABLE shall retain all rights to the Lojack License Agreement and Old Republic Insurance Company policy. 9. After September 1, 1996, ABLE will cooperate with the withdrawal of the County of Orange and City of Huntington Beach to study further fueling and maintenance arrangements toward cost savings in these areas of operations. 10. After September 1, 1996, ABLE will provide service outside of its member • agency flight area on a subscription basis or by mutual aid, as the circumstances warrant it and approved by the ABLE Board. ElcaWs%recolutlabteexbt.doc &2986 2 I• L_J