City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: DECEMBER 17, 2024 FROM: POLICE DEPARTMENT WARD(S): ALL SUBJECT: LETTER OF CONSENT TO RE-ASSIGN PO NO. 250024, FOR THE PURCHASE OF JET-A AVIATION FUEL FOR CITY OF RIVERSIDE HELICOPTERS, TO ASCENT AVIATION GROUP, INC., AND APPROVE THE PURCHASE AND DELIVERY OF JET-A AVIATION FUEL IN THE AMOUNT OF $122,475 FROM OCTOBER 1, 2024, THROUGH JUNE 30, 2025, AND APPROVE TWO ONE-YEAR RENEWAL PERIOD OPTIONS THROUGH JUNE 30, 2027 ISSUES:
Approve a letter of consent to re-assign Purchase Order No. 250024, for the purchase and delivery of Jet-A Aviation Fuel for City of Riverside helicopters, to Ascent Aviation Group, Inc., and approve the purchase and delivery of Jet-A Aviation Fuel from Ascent Aviation Group, Inc. in the amount of $122,475 from October 1, 2024, through June 30, 2025, and two one-year renewal periods in the amounts of, $260,150 for FY 2025/26, and $286,165 for FY 2026/27.
RECOMMENDATIONS:
That the City Council:
Authorize the Purchasing Manager, or designee, to execute the letter of consent to re-assign Purchase Order No. 250024, for the purchase and delivery of Jet-A Aviation Fuel for City of Riverside helicopters, to Ascent Aviation Group, INC of Parish, New York, dated August 15, 2024; Approve the purchase and delivery of Jet-A Aviation Fuel for City of Riverside helicopters with Ascent Aviation Group, INC in the amount of $122,475 from October 1, 2024, through June 30, 2025; and Approve two one-year renewal periods with Ascent Aviation Group, INC for the purchase and delivery of Jet-A Aviation Fuel products in the amounts of, $260,150 for FY 2025/26, and $286,165 for FY 2026/27 inclusive of 10% annual increases for future fuel market volatility.
BACKGROUND:
On March 17, 2022, the County of Riverside Purchasing on behalf of Riverside County Sheriff’s Department Aviation Division issued Request for Quotes, SHARC-475, for the purchase and delivery of Jet-A Aviation Fuel and related additional services. On July 1, 2022, the County of Riverside entered into a contract with Epic Aviation, LLC, SHARC-40518-002-06/27, for a five (5) year term, renewed annually, ending June 30, 2027.
The Riverside Police Department (RPD) maintains the fuel pumps that supply Jet-A Aviation Fuel for the Aviation Unit helicopters. On January 10, 2023, the City Council approved the purchase and delivery of Jet-A Aviation Fuel for City of Riverside helicopters with Epic Aviation, LLC., of Salem, Oregon, in the total amount of $150,000 for FY 2022/2023 with four optional one-year renewal periods in the amounts of $165,000 for FY 2023/24, $181,500 for FY 2024/25, $199,650 for FY 2025/26, and $219,615 for FY 2026/27 inclusive of 10% annual increases for future fuel market volatility.
On March 12, 2024, the City Council approved an increase in the annual compensation for the purchase and delivery of Jet-A Aviation Fuel for City of Riverside helicopters with Epic Aviation, LLC., of Salem, Oregon, in the amount of $50,000 for Fiscal Year 2023/2024, for a total annual amount of $215,000. Increases were also approved for the additional three one-year renewal periods in the amounts of $236,500 for FY 2024/25, $260,150 for FY 2025/26, and $286,165 for FY 2026/27 inclusive of 10% annual increases for future fuel market volatility.
On August 15, 2024, RPD was notified by letter that on July 25, 2024, Epic Aviation, LLC, entered into an asset purchase agreement with Ascent Aviation Group, Inc. Pursuant to the Purchase Agreement, Epic agreed to sell certain of its assets to Ascent Aviation. These assets include City of Riverside Purchase Order No. 250024. Under the terms of the Agreement, such re-assignment requires the City’s consent to be effective. Epic therefore requests the City’s consent to such re-assignment. The asset acquisition transaction concluded on October 1, 2024. The County of Riverside Master Service Agreement with Epic Aviation, LLC was re-assigned on October 10, 2024, to Ascent Aviation Group, Inc. with an effective date of October 1, 2024.
DISCUSSION:
Epic Aviation, LLC, entered into an Asset Purchase Agreement with Ascent Aviation Group, Inc. Pursuant to the Purchase Agreement, Epic agreed to sell certain of its assets to Ascent Aviation Group, Inc. These assets include City of Riverside Purchase Order No. 250024. Under the terms of the Agreement, such re-assignments require the City’s consent to be effective. Epic therefore requests the City’s consent to such re-assignment.
Ascent Aviation Group, Inc. has agreed to extend current pricing for Jet-A Aviation Fuel, which is based on Oil Price Information Service (OPIS) for the Los Angeles Region mean plus $0.1291 per gallon plus applicable taxes and fees, at the current level of services, and the same terms and conditions as offered by Ascent Aviation Group, Inc. under the County of Riverside re-assigned Contract based on RFP SHARC-475 and Contract SHARC-40518-002-06/27, through June 30, 2027.
Purchasing Resolution No. 24101, Section 602(h) states, “Competitive Procurement through the Informal Procurement and Formal Procurement process shall not be required in any of the following circumstances…(h) When Goods can be Procured from a Bidder who offers the same or better price, terms and conditions as the Bidder previously offered as the Lowest Responsive Bidder under Competitive Procurement conducted by the City or another public agency, provided that, in the opinion of the Manager, it is in the best interest of the City to do so.” The Purchasing Manager concurs that the recommended actions are in compliance with Purchasing Resolution No. 24101, Section 602(h).
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority No. 2.4 – Support programs and innovations that enhance community safety, encourage neighborhood engagement, and build public trust.
This item aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – Fuel for Police helicopters allows the Police Department to deploy its employees into the community encouraging neighborhood engagement and building public trust.
Equity – The RPD provides public safety services to all residents in the City of Riverside. Fuel for Police helicopters helps in the achievement of this goal by ensuring that RPD employees can enhance community safety.
Fiscal Responsibility – The proposed action has been competitively bid in accordance with Purchasing Resolution No. 24101, Section 602(h). This contributes to the City’s financial health by ensuring the city will be receiving the best pricing.
Innovation – In order to meet the community’s changing needs and prepare for the future, RPD has purchased two new Airbus H125 Helicopters.
Sustainability & Resiliency – The purpose of the fuel purchase is to ensure the Departments has the ability to provide public safety services in the present and future, while adapting, and growing with the needs of the community.
FISCAL IMPACT:
The total fiscal impact of the action is $122,475 from October 1, 2024, through June 30, 2025. This was part of the amount previously approved by City Council on March 12, 2024 for FY 2024/25. Sufficient funds are available in the FY 2024/25 General Fund, Police-Aviation Unit, Motor Fuels and Lubricants Account No. 3120000-426300, for the purchase and delivery of Jet-A Aviation fuel. Appropriations for future fiscal years have been included in the two year budget that was adopted by Council in June 2024.
Prepared by: Victor Garcia, Principal Management Analyst Approved by: Larry Gonzalez, Chief of Police
Certified as to
availability of funds: Kristie Thomas, Finance Director/ Assistant Chief Financial Officer Approved by: Mike Futrell, City Manager
Approved as to form: Jack Liu, Interim City Attorney
Attachments:
County of Riverside Consent to Assignment of the Master Agreement Ascent Aviation Group, Inc. Pricing Letter
Epic Aviation, LLC Consent Letter
Ascent Aviation Group, Inc – Jet-A Aviation Fuel ● Page 3