City Council

Agenda Request

Agenda Of:

October 16, 2007

Agenda Request No:

IV D

Initiated By:

Adam Scott

Airport Business Manager

Responsible Department:

Aviation

Presented By:

Phillip W. Savko

Director of Aviation

Department Head:

Phillip W. Savko

director of Aviation

 

 

Additional Department. Head (s):

N/A

Subject / Proceeding:

Emergency Purchase of Ground Power Unit (GPU)

Exhibits:

Quote

Clearances

Approval

Legal:

N/A

Executive Director:

Joe Esch 

Bus & Intergov Relations

Purchasing:

Jennifer Montgomery 

Purchasing Manager

Asst. City Manager:

N/A

Budget:

Bryan Guinn

Budget Manager

City Manager:

Allen Bogard

Budget

Expenditure Required:  $

30,095

Amount Budgeted/Reallocation:  $

30,095

Additional Appropriation:  $

N/A

Recommended Action

Approve the emergency purchase of a ground power unit for airport use from Mark C. Pope and Associates for $30,095.

Executive Summary

The airport purchased a replacement ground power unit (GPU) from Mark C. Pope and Associates on Thursday, October 04, 2007.  Because the conservation of public resources was at risk, city policy for emergency purchases was followed.  The policy allows for emergency purchases for amounts >$25,000 to be made without prior approval by Council as long as City Council is informed after the fact.  The purchase was necessary for the following reasons:

 

  • The unit replaced was over 15 years old and had been out of service for repairs for a total of 2 ½ to 3 months during FY 2006/07
  • Since July 25, the unit has been repaired 3 times at a cost of approximately $3,500, and has been out of service for 6 weeks
  • After being returned to service following the latest repair, the unit immediately bogged down while starting a jet and had to be taken out of service again due to the fact that voltage regulation problems in a GPU can easily result in hundreds of thousands of dollars in damage to aircraft electronics systems
  • In order to repair the GPU again, it would have to be sent to Georgia.  Freight alone would cost approximately $1,800 and the unit would be out of service for at least 2 more weeks
  • GPUs are used to start the engines on small to mid-sized jets and to power air conditioning units.  Due to the volume of jet traffic and high temperatures inside aircraft, demand has been very high; and customers have expressed dissatisfaction with having to wait
  • Mark C. Pope and Associates was able to have a GPU, comparable to the one being replaced, delivered to the airport within 2 days, eliminating the need to lease a unit.  Other retailers were contacted, but the total cost was higher and the delivery time ranged from 4 to 6 weeks.  The following is a list of other vendors contacted and their response:

 

Vendor

Price (freight included)

Trade-In Value Offered

Total Cost to City

Mark C. Pope

$31,595.00

$1,5000.00

$30,095.00

Aviation Ground Equip.

$32,389.00

N/A

$32,385.00

Omega Aviation Services

$38,370.00

N/A

$38,370.00

 

 

The airport budget funds in a capital contingency account each year.  The budget in this account for FY 2007/08 is $50,000.  The purpose of the account is to cover emergency facilities repairs or equipment purchases such as this one.  The total cost of the GPU is $30,095.

 

Because of the significant impact to airport service levels and potential impact to public resources, the purchase was made prior to obtaining City Council approval.  City Council is now requested to approve the emergency purchase of a GPU for the reasons described above.

Exhibits