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HomeMy WebLinkAboutItem 20 - Surplus Fire TruckMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: BRUNO RUMBELOW, CITY MANAGER s1Q— MEETING DATE: AUGUST 5, 2014 SUBJECT: RESOLUTION AMENDING THE MINIMUM SALE PRICE AND THE APPROVAL OF A SALES AGREEMENT WITH FIRETEC FOR THE SALE OF THE CITY'S SURPLUS BRONTO FIRE UNIT RECOMMENDATION: City Council to consider: • adopting a resolution amending the minimum sales price of the City's 2002 E -One 118' Bronto Aerial unit to the highest price possible, • approving a sales agreement with FIRETEC USED APPARATUS SALES for the sale of the City's 2002 E -One 118' Bronto Aerial unit, • authorizing the City Manager to execute said agreement • and take any necessary action. BACKGROUND: The City initially tried to sell the unit in 2012 through Brindlee Mountain Fire Apparatus with no success. Subsequent to those efforts, the Council adopted Resolution 2013-59 declaring the unit to be surplus and authorizing public auction with a minimum bid of $275,000. We have placed the unit up for auction twice with Rene' Bates Auctioneers with no success. FIRETEC has been in business for 30 years and has expressed interest in trying to sell the unit for a 5% commission. Their commission is normally 10% but for units in the $150,000+ range, they are agreeable to the lower rate. They have suggested an initial asking price of $200,000. 0:\Agenda\08-05-2014\Bronto Sale Contract The resolution removes the minimum price established in the earlier resolution and allows the City Manager to accept the best offer that we receive through the efforts of the proposed sales consultant. Staff recommends approval. 0:\Agenda\08-05-2014\Bronto Sale Contract LISTING AND MARKETING COMMISSION AGREEMENT The undersigned being duly authorized, hereby enter into the following contractual agreement: Firetec Used Apparatus Sales agrees to market the following apparatus: Apparatus (year/make/model): 2002 Bronto Skylift Owned by: City of Grapevine TX Firetec' will refer to Owner all qualified inquiries Firetec' receives regarding the specified apparatus. If Owner sells the marketed apparatus or any other apparatus to the customer referred by Firetec', or anyone acting on behalf of the referred customer, the Owner will pay a commission of 5% of the sale price (or a minimum of $500) to Firetec® within 10 days of the sale. While Firetec does not require an exclusive agreement, seller understands that Firetec blankets the market with information and photos of the apparatus it has been hired to sell. Occasionally buyers will contact sellers without mentioning Firetec's involvement. Firetec keeps meticulous records of its contacts on each apparatus and strives to notify sellers of all potential leads. However, it's the responsibility of the seller to confirm with Firetec the source of the lead prior to sale, as commission may be due. Owner agrees to notify Firetec', at the time of sale, as to the sale price and the name and address of the buyer. This agreement shall be in effect for a period of one (1) year unless extended. Either party may terminate at any time by notifying the other party in writing. If any sale takes place subsequent to termination, to a party previously referred by Firetec', the same commission will be paid as if the agreement were still in effect. Agreed to by: Firetec Apparatus Sales Date 11/1/2013 app.firetec.com • ' 1I"i rate CH ralruc�s Authorized Owner Date RESOLUTION NO. SttRPILIA5 r(RE K A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS, AMENDING THE MINIMUM SALE PRICE APPROVED BY RESOLUTION NO. 2013-59 WHICH DECLARED A 2002 E -ONE BRONTO FIRE TRUCK AS SURPLUS PROPERTY AND AUTHORIZED SALE AT AUCTION AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Grapevine, Texas is in possession of a fire truck that was declared surplus property by the City Council on June 4, 2013, with the passage of Resolution No. 2013-59 which established a minimum bid for the sale of the vehicle; and WHEREAS, the fire truck has been placed up for auction twice with no success and the City Council finds it is in the best interest of the City to list the vehicle with a new firm to obtain the highest price possible for the vehicle; and WHEREAS, all legal prerequisites for the adoption of this Resolution have been met, including but not limited to the Local Government Code and the Open Meetings Act; and WHEREAS, the City Council hereby declares that the approval of this Resolution is in the best interests of the health, safety, and welfare of the public. NOW, •. RESOLVED COUNCIL OF OF GRAPEVINE, TEXAS: Section 1. That all matters stated in the above preamble are true and correct and are incorporated herein as if copied in their entirety. Section 2. That the City Manager, or his designee, is hereby authorized to enter into an agreement with Firetec Used Apparatus Sales, or any other appropriate vendor, to list and market for sale the 2002 E -ONE Bronto Fire Truck and to obtain the highest price possible for this item. There is no minimum sales price and the proceeds from the sale of the Bronto Fire Truck will be deposited into the Fleet Replacement Fund. Section 3. That this resolution shall take effect from and after the date of its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 5th day of August, 2014.