REPORT TO THE CITY COUNCIL September 27, 2018 FROM: JERRY P. DYER, Chief of Police Police Department BY: RICHARD TUCKER, Lieutenant Traffic Safety and Support Services Section SUBJECT ..Title Authorize the Chief of Police to execute an agreement with Paragon Aircraft Sales to broker the sale of a Police Department airplane for $129,900 or other acceptable offer the Chief of Police and City Manager agrees to accept. Upon locating a buyer, the broker would execute the sale of the airplane and receive a sales commission of 6% of the selling price. ..Body RECOMMENDATION It is recommended that Council authorize the Chief of Police to execute the agreement with Paragon Aircraft Sales for the sale of a Police Department airplane for $129,900 and authorize both the Chief of Police and the City Manager to agree on a final sales price. Paragon Aircraft Sales will receive a 6% commission of the final selling price. EXECUTIVE SUMMARY The Police Department's 1968 Cessna TP206C is no longer of use to the Police Department. This aircraft was purchased in 2005 with Homeland Security funding and was used for numerous Police Department operations. However, the age of the aircraft and the inability to update electronics or attach other updated technology to the aircraft has made it obsolete for Department operations. Upon executing the sale of the aircraft, the proceeds from the sale must be deposited back into the Homeland Security Grant. The funds from the sale of the aircraft can only be used to buy approved equipment as detailed on the Homeland Security Grant. The broker's contract and subsequent documents have been reviewed and approved by the City Attorney's Office and by the City's Risk Manager. BACKGROUND In September of 2005, the Police Department purchased a 1968 Cessna TP206C with funding from a Homeland Security Grant. The Department purchased the aircraft for $167,508. The plane was used for many years on surveillance operations and other law enforcement assignments. Over the years, aircraft surveillance technology has evolved tremendously. Due to the age of the airplane and the aircraft's limitations, we are unable to add updated equipment to the plane to make it more useful for today's law enforcement needs. The Homeland Security funds currently tied up in this aircraft could be put to better use for other Homeland Security equipment. The Police Department has received authorization from Homeland Security to sell the aircraft. However, there are restrictions associated with the proceeds from the sale of the airplane. Upon selling the airplane, the proceeds must be deposited into the Homeland Security Grant. The Police Department would then be allowed to use the proceeds as part of the Homeland Security Grant for the purchase of approved Homeland Security equipment. The Police Department would like to employ the services of Paragon Aircraft Sales as an aircraft broker to assist us with locating a buyer for the airplane. Paragon Aircraft Sales will also assist with the completion of FAA documents required for the change of ownership. The broker has indicated that the airplane's selling price should be listed as $129,900. Paragon's contract would give them the exclusive right to sell the plane for a period of 120 days. Paragon will provide professional counsel regarding offers not equal to the full sales price. City Councils approval to sell the aircraft would also give the Chief of Police and City Manager authority to accept less than a full price offer. Should Paragon locate a buyer and execute the sale of the airplane, Paragon would be paid a sales commission of 6% of the selling price. The Agreement with Paragon Aircraft Sales has been reviewed and approved as to form by the City Attorney's Office and by the Risk Management Division. ENVIRONMENTAL FINDINGS Not applicable since the ordinance and agreement do not constitute a project. LOCAL PREFERENCE Not applicable. FISCAL IMPACT There is no impact to the general fund. Attachments: Aircraft Listing Agreement Supporting Documents from HLS authorizing the sale of the Aircraft