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Wausau finance committee approves contingent sale of Ladder Truck 2 and contingent sole-source purchase of demo replacement
Summary
The committee approved the sale of Fire Department Ladder Truck 2 and a contingent purchase of a demo replacement; the sale is for $1.1 million with a 5% broker fee, and the demo replacement price is approximately $1,288,022, with the city planning to use GEMT (Medicaid) reimbursement funds to cover the gap.
The Wausau Finance Committee on June 24 approved two linked actions: (1) to sell Fire Department Ladder Truck 2 and (2) to purchase a demo replacement ladder truck, with both actions contingent on the sale closing.
Fire Chief Jeremy Kopp told the committee the city expected to close the sale in Osceola, Wisconsin, and that the buyer had required certain repairs and final detailing before shipment. The agreed sale price is $1,100,000; the committee heard that a 5% sales fee for the broker (Brinley) would be $55,000.
Kopp said the buyer was finishing requested repairs and that the city expects to have the truck shipped if closing proceeds as planned. Alder Henke moved approval of the sale contingent on closing; Alder Gisselman seconded. The committee approved the contingent sale by voice vote.
The committee then considered a sole-source purchase and budget modification to acquire the replacement Ladder 2, described as a demo unit priced at $1,288,022 (approximately $188,000 more than the expected sale proceeds). Committee members discussed covering the shortfall using GEMT funds (the state's Medicaid reimbursement for certain emergency services). Alder Henke moved to approve the purchase contingent on the sale; Alder Tierney seconded. The committee approved the contingent purchase.
Staff said the transaction is budget neutral if the sale closes and GEMT funds are applied as planned; if the sale falls through, staff said the plan would return to committee for alternative options.
