HomeMy WebLinkAboutFIRETEC USED APPARATUS SALES 2-2016tMORANCE ON FILE
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CLERK OF COUNCIL
N-2016-013
DUE: FM 4 - 2316 AGREEMENT FOR PROVISION OF BROI(ERAGE SERVICES FOR
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THIS AGREEMENT is made and entered into this 14th day of January, 2016 by and between Firetec Used
Apparatus Sales, a general partnership ("Broker"), and the City of Santa Ana, a charter city and municipal
corporation organized and existing under the Constitution and laws of the State of California ("City"),
RECITALS
A. The City desires to retain a professional consultant having special skill and knowledge in the field
of fire equipment brokerage to provide listing and marketing services for surplus fire apparatus
owned by the City.
B. In 2012, following the issuance of RFP No. 12-040, Broker was selected by the City to perform
such services and entered into Agreement No, A-2012-195 with the City that expired on August
31, 2013. The parties now wish to anter into another agreement under the same terms and
conditions.
C. In undertaking the performance of this Agreement, Broker represents that it is knowledgeable in
its field and that any services performed by Broker under this Agreement will be performed in
compliance with such standards as may reasonably be expected from a professional consulting
firm in the field.
NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the terms
and conditions hereinafter set forth, the parties agree as follows:
1. SCOPE OF SERVICES
Broker shall. promote, advertise, and complete the sale documents necessary to sell the inventory
of surplus fire equipment owned by the City, as set forth in Exhibit A. This equipment includes
the following, and such other equipment as may be identified by the City from time to time
("Equipment"):
Year Make Model
1997 BME Pumper
1998 LTI Ladder Truck
2000 Freightliner/Eagle ALF/Rescue,
In providing services raider this Agreement, Broker acknowledges that the Equipment belongs to
the City and that the City retains absolute discretion to accept or reject any proposed transaction
brought by Broker. City retains the right to transfer ownership to any entity, based on City's
surplus property policy, of any Equipment listed above, prior to the execution of an agreement to
sell that piece of Equipment to a third party. In such case, Broker shall not be entitled to
commission for that Equipment. City shall notify Broker if such transfer has occurred.
2. COMPENSATION
a. City agrees to pay, and Broker agrees to accept as total payment for its services, a
commission equal to five percent (5%) of the sale price of the respective Equipment, The
total revenue payable to Broker under the term of this Agreement, including any extension,
shall not exceed $25,000.
b. Broker will refer to City all qualified inquiries regarding the Equipment. When a pricing
agreement is reached, Broker will collect the full purchase price and transfer the balance
to the City, minus its 5% commission. The remittance shall be accompanied by a sales
receipt containing all the terms and conditions of such sale.
3. TERM
This Agreement shall commence on January 14, 2016 and terminate on January 13, 2018, unless
terminated earlier in accordance with Section 13, below. The term of this Agreement may be extended
for one (2) two-year period upon a writing executed by the City Manager and the City Attorney.
4. INDEPENDENT CONTRACTOR
Broker shall, during the entire term of this Agreement, be construed to be an independent
Contractor and not an employee of the City. This Agreement is not intended nor shall it be construed to
create an employer-employee relationship, a joint venture relationship, or to allow the City to exercise
discretion or control over the professional manner in which Broker performs the services that are the subject
matter of this Agreement; however, the services to be provided by Broker shall be provided in a manner
consistent with all applicable standards and regulations governing such services. Broker shall pay all
salaries and wages, employer's social security taxes, unemployment insurance and similar taxes relating to
employees and shall be responsible for all applicable withholding taxes,
5. INSURANCE
Prior to undertaking performance of work under this Agreement, Broker shall maintain and shall
require its subcontractors, if any, to obtain and maintain insurance as described below:
a. Commercial General Liability Insurance. If requested by the City, Broker shall maintain
commercial general liability insurance naming the City, its officers, employees, agents,
volunteers and representatives as additional insured(s) and shall include, but not be limited
to protection against claims arising from bodily and personal 'injury, including death
resulting therefrom and damage to property, resulting from any act or occurrence arising
out of Broker's operations in the performance of this Agreement, including, without
limitation, acts involving vehicles. The amounts of insurance shall be not less than the
following: single limit coverage applying to bodily and personal injury, including death
resulting therefrom, and property damage, in the total amount of $1,000,000 per
occurrence, with $2,000,000 in the aggregate. If requested by the City, such insurance
shall (a) name the City, its oflicers, employees, agents, voh nteers and representatives as
additional insured(s); (b) be primary and not contributory with respect to insurance or self-
insurance programs maintained by the City; and (c) contain standard separation of insureds
provisions.
b. Worker's Compensation Insurance. Broker, if Broker has any employees, is required to be
insured against liability for worker's compensation or to undertake self-insurance, Prior to
commencing the performance of the work trader this Agreement, Broker agrees to obtain
and maintain any employer's liability insurance with limits not less than $1,000,000 per
accident.
6. INDEMNIFICATION
Broker agrees to and shall indemnify and hold harmless the City, its officers, agents, employees,
consultants, special counsel, and representatives from liability: (1) for personal injury, damages, just
compensation, restitution, judicial or equitable relief arising out of claims for personal injury, including
death, and claims for property damage, which may arise from the negligent operations of the Broker or its
subcontractors, agents, employees, or other persons acting on their behalf which relates to the services
described in section 1 of this Agreement; and (2) from any claim that personal injury, damages, just
compensation, restitution, judicial or equitable relief is due by reason of the terms of or effects arising from
this Agreement. This indemnity and hold harmless agreement applies to all claims for damages, just
compensation, restitution, judicial or equitable relief suffered, or alleged to have been suffered, by reason
of the events referred to in this Section or by reason of the terms of, or effects, arising from this Agreement.
The Broker further agrees to indemnify, hold harmless, and pay all costs for the defense of the City,
including fees and costs for special counsel to be selected by the City, regarding any action by a third party
challenging the validity of this Agreement, or asserting that personal injury, damages, just compensation,
restitution, judicial or equitable relief due to personal or property rights arises by reason of the terns of, or
effects arising from this Agreement. City may make all reasonable decisions with respect to its
representation in any legal proceeding.
RECORDS
Broker shall keep records and invoices in connection with the work to be performed under this
Agreement. Broker shall maintain complete and accurate records with respect to the costs incurred under
this Agreement and any services, expenditures, and disbursements charged to the City for a minimum
period of three (3) years, or for any longer period required by law, from the date of fma,l payment to Broker
under this Agreement. All such records and invoices shall be clearly identifiable. Broker shall allow a
representative of the City to examine, audit, and make transcripts or copies of such records and any other
docmnents created pursuant to this Agreement during regular business hours. Broker shall allow
inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period
of three (3) years from the date of final payment to Broker under this Agreement.
8. CONFIDENTIALITY
If Broker receives from the City information which due to the nature of such information is
reasonably understood to be confidential and/or proprietary, Broker agrees that it shall not use or disclose
such information except in the performance of this Agreement, and further agrees to exercise the salve
degree of care it uses to protect its own information of like importance, but in no event less than reasonable
care. "Confidential Information" shall include all nonpublic information. Confidential information
includes not only written information, but also information transferred orally, visually, electronically, or
by other means. Confidential infornation disclosed to either party by any subsidiary and/or agent of the
other party is covered by this Agreement. The foregoing obligations of non-use and nondisclosure shall
not apply to any information that (a) has been disclosed in publicly available sources; (b) is, through no
fault of the Broker disclosed in a publicly available source; (c) is in rightful possession of the Broker an
obligation of confidentiality; (d) is required to be disclosed by operation of law; or (e) is independently
developed by the Broker without reference to information disclosed by the City.
9. CONFLICT OF INTEREST CLAUSE
Broker covenants that it presently has no interests and shall not have interests, direct or indirect,
which would conflict in any manner with performance of services specified under this Agreement.
10. NOTICE
Any notice, tender, demand, delivery, or other communication pursuant to this Agreement shall be
in writing and shall be deemed to be properly given if delivered in person or mailed by first class or
certified mail, postage prepaid, or sent by fax or other telegraphic communication in the manner provided
in this Section, to the following persons:
To City: Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
Fax 714- 647-6956
With courtesy copies to:
To Broker:
FMSA — Fleet Management
City of Santa Ana
215 S. Center Street
P.O. Box 1988
Santa Ana, California 92703
Fax 714-647-3539
FIRETEC Used Apparatus Sales
P.O. Box 177
Randolph, VT 05060
Attn: Barbara Baumann
A party may change its address by giving notice in writing to the other party. Thereafter, any
communication shall be addressed and transmitted to the new address. If sent by mail, communication
shall be effective or deemed to have been given three (3) days after it has been deposited in the United
States mail, duly registered or certified, with postage prepaid, and addressed as set forth above. If sent by
fax, communication shall be effective or deemed to have been given twenty-four (24) hours after the time
set forth on the transmission report issued by the transmitting facsimile machine, addressed as set forth
above. For purposes of calculating these time frames, weekends, federal, state, County or City holidays
shall be excluded.
Al. EXCLUSIVITY AND AMENDMENT
This Agreement represents the complete and exclusive statement between the City and Broker
regarding the subject matter therein, and supersedes any and all other agreements, oral or written, between
the parties. In the event of a conflict between the terms of this Agreement and any attachments hereto, the
terms of this Agreement shall prevail. This Agreement may not be modified except by written instrument
4
signed by the City and by an authorized representative of Broker. The parties agree that any terms or
conditions of any purchase order or other instrument that are inconsistent with, or in addition to, the terms
and conditions hereof, shall not bind or obligate Broker or the City. Each party to this Agreement
acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been
made by any party, or anyone acting on behalf of any party, which are not embodied herein.
12. ASSIGNMENT
Inasmuch as this Agreement is intended to secure the specialized services of Broker, Broker may
not assign, transfer, delegate, or subcontract any interest herein without the prior written consent of the
City and any such assignment, transfer, delegation or subcontract without the City's prior written consent
shall be considered null and void, Nothing in this Agreement shall be construed to limit the City's ability
to have any of the services which are the subject to this Agreement performed by City personnel or by
other consultants retained by City.
13. TERMINATION
This Agreement maybe terminated by the City upon thirty (30) days written notice of termination.
In such event, Broker shall be entitled to receive and the City shall pay Broker compensation for all
services performed by Broker prior to receipt of such notice of termination, subject to the following
conditions:
a. As a condition of such payment, the City may require Broker to deliver to the City all work
product completed as of such date, and in such case such work product shall be the property
of the City unless prohibited by law, and Broker consents to the City's use thereof for such
purposes as the City deems appropriate,
b. Payment need not be made for work that fails to meet the standard of performance
specified in the Recitals of this Agreement.
14, NONDISCRIMINATION
Broker shall not discriminate because of race, color, creed, religion, sex, marital status, sexual
orientation, age, national origin, ancestry, or disability, as defined and prohibited by applicable law, in the
recruitment, selection, training, utilization, promotion, termination or other employment related activities
or in connection with any activities under this Agreement. Broker affirms that it is an equal opportunity
employer and shall comply with all applicable federal, state and local laws and regulations.
1.5. JURISDICTION - VENUE
This Agreement has been executed and delivered in the State of California and the validity,
interpretation, perfonmance, and enforcement of any of the clauses of this Agreement shall be determined
and governed by the laws of the State of California. Both parties further agree that Orange County,
California, shall be the venue for any action or proceeding that maybe brought or arise out of, in connection
with or by reason of this Agreement.
16. PROFESSIONAL LICENSES
Broker shall, throughout the term of this Agreement, maintain all necessary licenses, permits,
approvals, waivers, and exemptions necessary for the provision of the services hereunder and required by
the laws and regulations of the United States, the State of California,, the City of Santa Ana and all other
governmental agencies. Broker shall notify the City immediately and in writing of its inability to obtain
or maintain such permits, licenses, approvals, waivers, and exemptions. Said inability shall be cause for
termination of this Agreement.
17. MISCELLANEOUS PROVISIONS
Each undersigned represents and warrants that its signature herein below has the power,
authority and right to bind their respective parties to each of the terms of this Agreement,
and shall indemnify City fully, including reasonable costs and attorney's fees, for any
injuries or damages to City in the event that such authority or power is not, in fact, held by
the signatory or is withdrawn.
It. All Exhibits referenced herein and attached hereto shall be incorporated as if ffilly set forth
in the body of this Agreement,
IN WITNESS WMR EOF, [tic pat -ties hereto have executed this Agreement the date and year first above
written.
ATTEST:
o"I
Maria D. iuizar
17 -
Clerk of the Council
APPROVED AS TO FORM:
SONIA R. CARVALF10
City Attorney
By: 07Y,, 1 4
John V. Punk
Assistant City Attorney
CITY OF SANTA ZAN
David Cavazos
City Manager
Barbara Baumann, Principal
Firetec Used Apparatus Sales
N-2016-013
IWX"my 101
SCOPE OF SERVICES
Firetec Used Apparatus Sales is a used fire truck broker. Firetec has been selling fire trucks, rescue
vehicles and ambulances, directly, department -to -department, since 1983.
Firetec lists used fire trucks for fire departments, much like a real estate broker lists and sells homes.
Firetec takes responsibility for all marketing and advertising, utilizing a variety of methods, which
change with the times. Firctec has a network of colleagues and tens tens of thousands of established
customer contacts which are valuable assets in enabling us to connect buyers and sellers of used
apparatus, Marketing efforts for our services and products offered on behalf of our clients include
investments in print media, online advertising, social media, google advertising, trade show presence and
networking, maintaining an active `buyer wants' list, and more.
Firetec oilers the best opportunity for fair deals in the used fire truck market, as we own no apparatus,
We are selling only the apparatus owned by our clients. Itis our mission to sell used apparatus for fair
market value, and we assist sellers in establishing estimated values for their surplus apparatus, using
methods such as comps of similar apparatus sold, depreciation formulas, and industry and market
knowledge.
Firetec lists apparatus at no charge and invests time and money into fording buyers for its clients. A
commission is due, payable by the seller, after the apparatus is paid in full. There are no buyer fees,
although buyers are responsible for transporting apparatus. All units sold as -is, where -is, with no
war•antees.
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0112212016
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES
BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER($), AUTHORIZED
REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les) must be endorsed. If SUBROGATION IS WAIVED, subject to
the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the
certificate holder in lieu of such endorsement a .
PRODUCER
Fountain, Parker, Harbarger
& Associates, LLC.
201 Washin ton Street
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Huntsville, AL 35$09
CONTACT John T. Freisen
FAX
p Ex 256.551.0060 AIC No 256.534.2042
EMAIL �SSS,reisen@fpins.com hins.com
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INSURER s: Hartford Insurance 19662
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THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD
INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH *THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO
ALL
THE TERMS,
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DESCRIPTION OF OPERATIONS LOCATIONS I VEHICLES (ACORO D9, Additional Remark c le, ma attachadd If more oppeO is required)
DESCRIPTION
CERTIFICATE HOLDER CANCELLATION
071988.2014 ACORD CORPORATION, All rights reserved.
ACORD 25 (2014109) The ACORD name and logo are registered marks of ACORD
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN
FMSA-Fleet Management
ACCORDANCE WITH THE POLICY PROVISIONS.
City of Santa Ana
AUTHORIZED REPRESENTATIVE
215 S, Center Street
PO Box 1988
6� 1 -a^
Sana na CA 92703
071988.2014 ACORD CORPORATION, All rights reserved.
ACORD 25 (2014109) The ACORD name and logo are registered marks of ACORD