PURPOSE

The purpose of this report is to recommend that the Burbank City Council adopt a resolution to authorize the Burbank Chief of Police or his designee to enter into an agreement with the Glendale Chief of Police to consolidate the air support units of the two departments.  The agreement is entitled �Memorandum of Understanding Between City of Burbank and City of Glendale for Joint Law Enforcement Air Support Unit.�

BACKGROUND

One of the Burbank Police Department�s FY 06/07 Work Program goals was to work with the City of Glendale to conduct an independent study of both air support units to determine the future of the programs.  In August of 2006, the Burbank and Glendale Police Departments hired the Matrix Consulting Group (Matrix) to assess the feasibility of joining the two air support units.  The ultimate goal of the study was to identify cost-saving opportunities while maintaining effective air support services for both cities.

Working with project managers Lieutenant Armen Dermenjian (Burbank) and Lieutenant Carl Povilaitis (Glendale), Matrix conducted an in-depth analysis of the organizational structures of the air support units, the staffing levels, and the management and operations of the units.  The study also included a survey of other law enforcement air support units, interviews with the current and former air support unit members from both agencies, and a comprehensive review of Burbank and Glendale�s calls for service workloads.

The Matrix study concluded that significant cost-savings could be achieved by operating a joint unit and recommended that the Burbank and Glendale Police Departments consolidate their air support units.  Matrix also made recommendations as guidelines for the consolidation and listed methods of implementing those recommendations.  This report is based on the recommendations made by the Matrix Consulting Group.

History of the Air Support Units

The Glendale Police Department formed its Air Support Unit in 1972, utilizing one piston powered Bell 47 helicopter.  In 1979, the City of Burbank joined the City of Glendale to form a joint air support unit.  Using funds from a federal grant, the cities purchased three Hughes 300C piston powered helicopters.  The joint unit operated until 1988 when the City of Burbank purchased a turbine powered helicopter and formed an independent unit. 

Once the Burbank Air Support Unit was formed, the unit moved its operations to a leased hangar at the Burbank Airport (since named Bob Hope).  In 1991, the Glendale Air Support Unit moved to the airport and became a co-tenant with Burbank.  During the same year, the Cities of Burbank and Glendale also decided to look for a more permanent home for the air support units.   In 1992, the City of Glendale replaced its fleet of piston powered helicopters with a turbine powered helicopter, making them similar to Burbank.  In January of 1993, the cities signed a 30 year lease agreement with the Airport Authority for land to build a hangar facility.  Design and construction followed and on September 8, 1994, the new Burbank Glendale Police Air Support Facility was dedicated.

For more than fifteen years, the two air support units have been operating independently, each flying approximately 1,500 hours annually.   Under a �Joint Effort Agreement,� both units have provided patrol support services to the cities allowing for approximately 3,000 hours of patrol coverage for half the cost.  In addition to supporting patrol, these units also provide assistance for the Special Response Team (SRT) or other police tactical operations, code enforcement, inspection of city utilities, observation support for fire operations, and long line cargo delivery for fire operations.

The Burbank Air Support Unit�s current authorized staffing and equipment consists of one supervisor, four pilots, one mechanic, and two helicopters.  The Glendale Air Support Unit currently consists of one supervisor, four pilots, one training officer, one mechanic, and two helicopters.

ANALYSIS

The current program is funded by the General Fund, with a significant portion of the personnel and operating costs offset by asset forfeiture funds.  Presently, the General Fund pays for the first three positions and asset forfeiture pays for 50 percent of each additional position.  Additionally, asset forfeiture pays for 50 percent of the unit�s operating costs, however, asset forfeiture funds have been dwindling at a rapid rate.  The long-term impact is that the General Fund will be burdened with the entire cost of the program when these asset forfeiture funds are no longer available.  In Fiscal Year 06/07, $1,660,245 was budgeted for the Air Support Unit, and the cost was expected to rise significantly this year.

With the anticipated reduction of the asset forfeiture reimbursements, staff considered all options to minimize the impact on the General Fund.  While the most obvious option that would save the most amount of money would be to disband the unit entirely, staff does not believe this is a viable option for several reasons.  The air support unit is an extremely valuable resource to the law enforcement efforts in both communities. Its contributions to the safety and efficiency of both cities� law enforcement operations far exceed the costs.  In terms of vehicle pursuits alone, the use of air support has created a significantly safer means of following criminal vehicles when suspects flee from the police. The ability to have the air support unit take over a pursuit reduces the dangers of injuries and death to police officers and the public at large.  The air support unit is not constrained by street traffic issues and can often arrive at a scene before ground units. It can also spot and track suspects and direct the responding units to the suspects� locations far more effectively than officers on the ground.  Staff believes disbanding the unit is not an option worthy of consideration.

Staff also considered contracting air support services with other agencies, but that option has two major drawbacks.  First, Burbank would not have a dedicated helicopter that would be able to respond quickly to calls for service.  Currently, our helicopters are first on scene over 70 percent of the time.  Second, with contracted services, Burbank will lose operational control and our requests for aerial support would be prioritized among the needs of the participating agencies. 

Rather than disband the air support units or utilize contract services, staff believes the best option for the Cities of Burbank and Glendale is to combine its resources by consolidating the air support units.  This recommendation is supported by the study conducted by Matrix.  

In addition to the recommendation for the consolidation, the information developed by Matrix and the project team also led to the development of a framework for the consolidation of the Air Support Units.  The project team, including representatives from the Burbank and Glendale City Attorney�s offices developed a proposed Memorandum of Understanding (MOU), proposed operations manual, and proposed budget for a joint Burbank � Glendale Air Support Unit.

The proposed MOU outlines the roles and responsibilities of each agency and the terms of the cities� partnership.  The proposed operations manual will establish clear policies and procedures for the operation of the joint unit, and the proposed budget specifies the costs and the cost savings of the joint operation.

The purpose of the agreement between the Cities of Burbank and Glendale is to establish the framework for the creation, operation, and maintenance of the joint law enforcement air support unit.  The agreement outlines procedures for the selection of personnel, the consolidation of the helicopters and other equipment, the responsibilities for the development of the joint budget and the methods of operational disbursements, the procedures for personnel performance evaluations and discipline, the maintenance of equipment, training, insurance and indemnifications, dispute resolution, and the amendment and the termination of the agreement.

Staffing and Proposed Composition of the Joint Unit

The staffing of the joint air support unit will include two managers (lieutenant rank), one supervisor (sergeant rank), four pilots (officer rank), one certified flight instructor (officer/agent rank), and two mechanics (non-sworn). Each agency will initially contribute two pilots and one mechanic to the unit.  Additionally, Glendale will initially provide a flight instructor and supervisor.  The two lieutenants will concurrently oversee the air support operations, with one lieutenant having primary responsibility for the day-to-day operations while the other will act as an adjutant. 

Although the Glendale Police Department will initially contribute two additional personnel to the Unit (flight instructor and supervisor), the additional cost to Glendale is offset by a higher number of calls for service requiring air support being generated in the City of Glendale.  The ratio of personnel (Burbank - 40 percent; Glendale - 60 percent) is consistent with the workloads of the respective jurisdictions.  The MOU provides for flexibility in the staffing depending on the needs of the respective cities.

Change in Service Levels

One of the recommendations from the Matrix report that staff is proposing to incorporate is to reduce regular patrol operations to 1,900 flight hours annually.  Instead of having continuous coverage during a shift by alternating flights, only one crew will be on duty during most of the week and will provide airborne coverage approximately 50 percent of the shift.  During the times when the aircraft is not flying, the crew will be in a �standby� mode and will be available to quickly respond to any requests for service.  Therefore, although the overall coverage will be reduced, the program will still maintain its capabilities and will provide on demand aerial support during the times when the helicopter is not flying.

Although the reduction in the total number of flight hours represents a service reduction, staff believes that the joint unit will continue to provide service to both communities.  The joint air support unit flight schedules will be modified to allow services to be available during key periods based upon crime statistics.  Matrix conducted a significant study of the calls for service and made scheduling recommendations.  Staff is currently reviewing those recommendations and developing schedules to provide both communities with the best possible service.

In addition to providing support for patrol operations, the air support units also provide support to other units and departments.  These include surveillance support for investigative units, airborne support for Special Response Team (SRT) or other tactical operations, code enforcement assistance, inspection of city utilities, observation support for fire operations, and long line cargo delivery support for fire operations.  In order to continue these operations and to fund specialized and ongoing pilot training, the proposed budget includes maintenance and operational funds for 300 annual flight hours.  To maintain basic patrol operational levels, specialized operations may be conducted on an overtime basis with the support of relief pilots. 

It is important to emphasize that the mission capabilities of the joint air support unit will not be affected by this proposed consolidation.  In fact, we will continue to identify ways to enhance the capabilities of the program.

Aircraft and Other Equipment

In consideration of the changes to the operational levels, flight schedules and staffing, the joint air support unit will operate with three turbine powered helicopters.  Currently, the Burbank Police Department owns two turbine powered helicopters�one with a conventional tail rotor, the other with the Notar (no tail rotor) system.  The Glendale Police Department owns two turbine powered helicopters with the Notar system.   To avoid additional costs of having a mixed fleet of helicopters, the Burbank Police Department will sell its helicopter with the tail rotor and purchase one-half ownership of the new Notar helicopter purchased by the Glendale Police Department.  Each agency will then have contributed one used Notar helicopter (of approximately equal value) and will have shared the cost of the newly purchased Notar helicopter.  All helicopters will be jointly and equally owned.

Over the years, both units have accumulated a supply of spare parts and maintenance tools.  The value of these parts are approximately equal and they will be combined for the benefit of the joint air support unit without further consideration.

Facility

The joint unit will continue to base its operations at the current facility at the Bob Hope Airport pursuant to the lease agreement currently in effect.

Implementation

The joint air support unit will commence operations effective July 1, 2007.  Due to recent personnel changes resulting from promotions and transfers, the two units have implemented some changes relating to training, scheduling, and sharing of equipment to integrate the operations.  Those changes will make the eventual consolidation more efficient.

FISCAL IMPACT

The joint air support unit will reduce the overall costs to the City of Burbank through a reduction in personnel, a reduction in the total number of flight hours, and a change in the replacement schedule of the helicopters.

The six budgeted personnel assigned to the air support unit for FY 06/07 include four officers, one sergeant, and one mechanic.  The proposed budget for FY 07/08 includes two officers and one mechanic.  This change will reduce air support personnel costs by approximately $273,000.  The remaining savings indicated for salaries in the proposed air support budget will be moved to the Community Outreach and Personnel Services Division.  The sergeant�s position is being reassigned and not eliminated in the event direct supervision of the joint air support unit is shifted to Burbank in the future. 

Additional savings will be achieved with the reduction of the total number of flight hours flown by the joint unit.  In the past, each unit has budgeted for 1,500 flight hours annually for a combined total of 3,000 flight hours.  Upon consolidation, the total flight hours will be reduced to 2,200 hours annually, including 300 hours to support specialized, non-patrol operations.  

Lastly, cost savings will also be achieved by extending the service life of the helicopters.  In the past, we have been funding the helicopter replacement accounts based on a service life schedule of 10 years, which translates to approximately total aircraft time of 7,500 hours at the time of replacement.  Both cities, however, are committed to an organizational culture of maintaining the helicopters in accordance with the highest standards.  Following those standards, we believe we can extend the service life of the helicopters to 20 years or 15,000 hours without compromising the safety of our operations or personnel. 

The budgeted helicopter rental amount for FY 06/07 was $273,763.  Based on the proposed replacement schedule, the total helicopter replacement fund annual cost will be $150,150, a net reduction of $123,613.  The proposed amount will provide enough funding to replace the three helicopters that will be in service effective July 1, 2007.  Based on the proposed annual budgeted flight hours, those helicopters will be due for replacement as follows:  N272BP (7 years); N102CG (11 years); 103CG (20 years).  The proposed annual replacement fund contribution, combined with an initial starting balance of $650,000, will provide sufficient funding to replace the helicopters at the end of their service lives.  Funding for the initial start-up cost of the rental account already exists in the helicopter rental account. 

The consolidation will have one significant recurring cost in the area of helicopter insurance.   This increase comes from purchasing excess liability and hull insurance for the three helicopters.  The cost to each city is estimated to be $75,000 for FY 07/08.  Although the City of Burbank has had excess liability insurance for the program (current cost $20,125), we have not insured the hull values of our helicopters.  Instead, we have allocated a portion of asset forfeiture funds (in the amount of $605,000) to pay for the replacement of the helicopter in the event of a catastrophic incident.  It is important to note that although the amount allocated as a helicopter replacement fund was sufficient to offset most of the cost of a new helicopter when the fund was first established, it would only cover approximately 40 percent of the current cost of the helicopter.

The City of Glendale, on the other hand, has maintained hull insurance on their aircraft.  Even though the hull insurance has a high cost, staff believes it will benefit both cities especially in the event all three helicopters are damaged or destroyed due to a single event such as a hangar fire or an earthquake.

The proposed annual budget for the joint unit will also require three one time start-up costs.  The first is the Helicopter Rental Account (F532) that was discussed previously in the amount of $650,000.  The second is the Helicopter General Equipment Maintenance account (#62435) in the amount of $200,000.  Seeding the General Equipment Maintenance account will provide enough funding to cover the costs of future parts and maintenance that we anticipate completing during FY 07/08.  These aircraft upgrades will standardize the equipment for the efficiency and safety of the crewmembers.  The third one time cost will be to the City of Glendale to cover the cost of the newest, jointly owned helicopter.

In addition to the annual savings and one time costs, the consolidation of the air support units will also result in a one-time savings to the City of Burbank in the amount of approximately $1,164,997.  The following table details the savings:

It is important to note that 50 percent of the net funds returned will go back to the General Fund and 50 percent will go to the Asset Forfeiture Fund.  Additionally, the portion of asset forfeiture funds allocated for the helicopter hull replacement in the amount of $605,000 can be released and used to offset future costs of the program or other asset forfeiture funded programs.  All funding for this joint helicopter unit and the one time start-up costs will be included in the FY 07/08 budget adoption process.

CONCLUSION

The ultimate goal of the consolidation study was to identify cost-saving opportunities.  The report submitted by the Matrix Consulting Group concluded that air support services would be more efficient if the Cities of Burbank and Glendale entered into an operational agreement forming a joint unit to provide air support services to both cities.  The joint unit would be able to provide service with fewer personnel and a smaller number of helicopters.  The efficiency of the joint air support unit would be achieved by implementing flight schedule modifications and by reducing the overall number of hours flown by the joint unit.

In response to the recommendations by Matrix, the project team drafted a Memorandum of Understanding that is being presented to City Councils of Burbank and Glendale for approval.  If approved, the existing air support units will be consolidated, commencing July 1, 2007, and will provide outstanding service to both cities while reducing the cost of air support operations.

In summary, this joint unit will result in an annual savings of approximately $375,000 as a result of reduced staffing, fewer flight hours, and adding years to the life of the helicopters.  Additionally, the helicopters will now be covered in the event of a catastrophic event with the addition of hull insurance.  Although the joint unit has start-up costs in the amount of $1,600,000, these costs can be funded by existing depreciation and maintenance reserve accounts with no net fiscal impact to the City of Burbank.  As detailed above, the consolidation will result in a net revenue of approximately $1,164,997, of which 50 percent will be returned to the General Fund.

RECOMMENDATION

Staff recommends that the City Council approve A RESOLUTION OF THE CITY OF BURBANK APPROVING THE MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF BURBANK AND CITY OF GLENDALE FOR JOINT LAW ENFORCEMENT AIR SUPPORT UNIT. 

LIST OF EXHIBITS

Exhibit A - MOU Agreement

Exhibit B - Proposed Budget

Exhibit C - Matrix Report

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