Travis County Commissioners Court
February 23, 2010,
Item 6
6.
Consider and take appropriate action regarding option to purchase a third ec-145 helicopter for the star flight program.
>> thank you, judge.
basically what I did is supply you an update in regards to the materials that I provided as backup lasts Tuesday, and I promise, I am not going to give you the same presentation that I did last week, but I would like to just briefly give you the highlights of that, and that is basically we gave you an opportunity to see where we were in regards to the business plan that we had developed self years ago.
in fact, casey had an attachment that gave you an 18-month update, and it was a very detailed report of all of the steps that had taken place, why we didn't last year come forward and recommend even though it is part of the business plan a third aircraft and then of course to explain for you two options that you could consider and the impacts they would have that had to do not only with operational elements but also financial.
and so today what I could like for you to consider is the purchase of a third aircraft and you also have on your agenda some other elements that make this work along with co's and reimbursement resolution, budget amendment, as well as two contracts, one with eurocopter and one with metro aviation and those are agenda items past this one, but we feel like emergency management as well as star flight staff feels like this is a wise move for uses to make based on the pros and the cons an you will see something it is new we have in the record itself but I listed a separate sheet which gave you all of the pros as well as the cons and we feel like it is time for us to recognize that we have a very important time to make a good decision regarding the future of this program and the needs of our residents, and we really feel like adding a third aircraft without staffing at this particular time is the best way to go not only from our point of view operationally, financially, but also in looking at the -- the time line and how involved it is when you decide to purchase an aircraft, and so, as I have mentioned earlier, and even last week, we have an aircraft available and so we have discounts available, and so we have everything in place to make it work for us, along with the hospital consideration, and so I would just -- unless you want more detail, I will glad to provide it.
again, I provided it last week, but I would just encourage the court and ask the court to consider the purchase of a third aircraft.
i have been also asked -- and randy is not up here, and rodney, but along with this particular item is to -- is to add along with the purchase of the aircraft that it be added to the co list.
and rodney, I don't know if that's -- is that appropriate, how I just said that as they consider this particular item?
>> yes.
what we would like to do is if the court decides to make a decision to move forward with the acquisition of a helicopter is to, as part of the project, to include the funds in the co list so it's definitive and it just is in sequence with what we are trying to accomplish today.
>> okay.
questions?
comments?
based on communication that we would save almost 2 and a half million dollars in maintenance costs for years 2011-2012, by purchasing a third helicopter, so is that a pretty firm number or -- we are not wishful -- it isn't wishful thinking, is it?
>> overhauls scheduled for the latter part of 2011, and 2012, I think we had two engines and a gearbox and so engine overhauls run typically about 500,000 each, manger boxes are about 300,000 each, so some pretty substantial numbers for 11 and 12.
>> this would just delay that maintenance not --
>> it would be deferred?
>> those would start coming do you know in '13.
>> okay.
so we would -- there is sort of implicit commitment to staff up to a -- epistep up, I guess, to a three helicopter system as the need arises?
>> yes, sir.
>> based on transports, basically?
>> as the financial forecast model shows the adequate number of transports and revenue generated by that, then we would be requesting additional staffing.
but at this time we do not.
>> all right, but in addition to working at the forecast, we would look at revenue received during the previous --
>> that is correct.
>> -- years.
well we talked about the third helicopter at length and, I guess at some point we will have to get one, anyway, whether it is today or next year or the year after and it looks like the timing may be righting to ahead and get it now, in my view with the partners we have and the ability to get it at a substantial discount and the fact that it's available now, plus it doesn't help to buy the helicopter unless you have pads for them to use and it looks like everything is coming together.
so I move that we indicate our intention to -- our decision to purchase a third helicopter and include that in the bond package that we.
>> second.
>> approve later today.
>> second.
>> second by Commissioner Davis.
discussion?
>> I just have a point of discussion.
>> okay.
>> in looking at the financial forecast for star flight, I just want to make clear that the purchase of this third helicopter will not, at least in the short-term decrease the 45-50% tax subsidy for this extremely valuable program, and when you consider that, that 45-50% subsidy on an increased volume, a third helicopter will give us greater capacity.
that also means a greater expense for Travis County, looking at the forecast, the expense currently is in the 5-6 million-dollar range and by 2015, the expense is projected to be in the 8 million-dollar range.
so, again, I am putting my word out there to the hospital networks and to the health care providers generally to help us press this issue with regard to emergency medical prehospital services that we've got to get a level of participation, commensurate with the need.
we have a tremendous need of people in extreme emergency medical circumstances.
and I just wanted to put that in context.
>> but in fairness, the expense is offset by revenue that covers what, 85-90% of it?
>> you are correct, judge, the -- the revenue has a large impact on the program and of course, the -- not only just the -- of course revenues generated by the collectibles as well and of course y'all are dealing with that now with settlements and they all go together an when we showed you the break out last week, the only thing we are minus right now is the number of transports.
we are actually meeting the financial forecast model and all of the other elements.
>> it looks like the percentage of public subsidy is decreasing but there is still a public subsidy.
>> that is correct.
>> and the other important fact, I think is that we keep the charge to Travis County residents much lower than out of county residents an we try to charge out of county rests what it costs us and so I would like to think that virtually all of the subsidy travels Travis County residents and that subsidy is covered probably by real property taxes and more than anything else.
>> that's true.
by increasing your capacity, you are increasing also our capacity do those sort of cash for services, transport that reduce our overall subsidy.
that is the point of the increased capacity.
am I correct?
>> that is correct.
Now, there is also an important element to make here, too, and that is when you look at subsidy, there is going to be some cost to the program that we are not generating revenue from and that's your search and rescue, fire suppression and law enforcement and homeland security, so they are all over.
The last thirty seconds of this item were not captioned. The court approved the item by unanimous vote.
The Closed Caption log for this Commissioners Court agenda item is provided by Travis County Internet Services. Since this file is derived from the Closed Captions created during live cablecasts, there are occasional spelling and grammatical errors. This Closed Caption log is not an official record the Commissioners Court Meeting and cannot be relied on for official purposes. For official records please contact the County Clerk at (512) 854-4722.
Last Modified:
Tuesday, February 23, 2010 2:15 PM
