title
CC - Approval of a Month-to-Month Agreement with Sectran Security, Inc. in a Not-to-Exceed Amount of $1,350 per Month for Armored Carrier and Cash Counting Services for Culver CityBus
body
Meeting Date: November 9, 2020
Contact Person/Dept: Jane Leonard / Transportation Department
Phone Number: 310-253-6523
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: []
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (11/4/2020); (Email) Sectran Security, Inc. (10/28/2020)
Department Approval: Rolando Cruz, Chief Transportation Officer (10/28/2020)
_____________________________________________________________________
RECOMMENDATION
Staff recommends the City Council approve a month-to-month agreement with Sectran Security, Inc. in a not-to-exceed amount of $1,350 per month for armored carrier and cash counting services for Culver CityBus.
BACKGROUND/DISCUSSION
In September 2013, quotes were obtained from various armored carrier services for cash pick-up and transport from the Culver City Transportation Facility to the City’s financial institution, Bank of America. Sectran Security Inc. was chosen to provide these services at the lowest price. Sectran’s armed transport carriers picked up the bags of coin and currency three times per week in alignment with internal control methods, and executed documentation for tracking and reconciliation of the cash transported. Those services were changed to twice per week in 2016 and have been continued on that schedule.
Prior to that time, Transportation Department supervisors and management were responsible for the actual counting of Culver CityBus fare retrieved from the transit bus fareboxes three times per week. During the development of the armored carrier services contract with Sectran, the Department determined that currency counting should also be handled by an outside vendor in order to reduce time expended by staff, as well as create separation of duties to align with internal controls processes. Thus, the cash counting (“cash vault”) services were added as an amendment to the Sectran armored carrier portion of the agreement, which provided for one-year terms and automatic annual renewal up to a total of five (5) years.
Despite contract expiration in June 2019, Sectran and Culver CityBus continued to honor the agreement. Culver CityBus fare collection was discontinued in March 2020 due to COVID-19, and coin and currency collection, transport and counting was discontinued. Upon restart of farebox operation with front-door boarding in mid-September 2020, Sectran has resumed provision of these services twice per week at the prior rates.
The City currently uses the services of Brinks/Dunbar for armored carrier and cash counting services for other City departments which will continue until March 2021. Staff has discussed the possibility of adding the Transportation Department’s cash handling operation to these existing services. However, it was determined that the process to add the Culver CityBus cash pickup and counting services to the Brinks/Dunbar operation would be less efficient and logistically complicated, rather than to maintain the processes already established for Transportation with Sectran, the carrier that has been providing those services under the internal controls required by the Federal Transportation Administration and the City’s Finance Department, and familiar with the documentation and processes.
A Request for Proposals for citywide armored carrier cash transport and money counting services is being developed by the City’s Finance Department staff, to be issued by the end of the calendar year, and will include the Transportation Department’s operation. In the meantime, Sectran Security is willing and able to continue its services for Culver CityBus twice per week on a month-to-month basis at its current rate to ensure these activities continue uninterrupted until a new award is approved and executed for these services citywide.
Staff therefore recommends an amendment to the existing agreement with Sectran Security, Inc. to continue armored carrier and cash counting services for Culver CityBus on a month-to month basis at the current rates: cash counting for $11.36 per $1,000 in currency counted; a charge of $1.46 per deposit ticket; and $424.35 per month for twice-per-week armored carrier services, until a citywide contract is executed as a result of a competitive RFP issued for these services. As the amount of currency in bus fare revenue is variable, the total monthly cost of $1,350 is based on an estimated $80,000 in currency to be counted per month.
Pursuant to Culver City Municipal Code Section 3.07.065.A, these services are exempt from the formal bid process, provided the contract is based on competitive quotations, whenever practical, as determined by the City Manager. Based on the foregoing, the City Manager has determined competitive quotations are not practical at this time.
FISCAL ANALYSIS
The City Council Adopted Budget for Fiscal Year 2020-21 includes sufficient funding in account 20370200.619800 to cover the cost of these services. All services will be paid for with Transportation Department funds. No General funds will be used.
ATTACHMENTS
None.
MOTION
That the City Council:
1. Approve a month-to-month agreement with Sectran Security, Inc. in a not-to-exceed amount of $1,350 per month for armored carrier and cash counting services for Culver CityBus.
2. Authorize the City Attorney to review/prepare the necessary documents; and
3. Authorize the City Manager to execute such documents on behalf of the City.