DATE:
May 21, 2024
TO:
Mayor and Council Members
Chair and Board Members, Hesperia Water District
FROM:
Rachel Molina, City Manager
BY:
Casey Brooksher, Assistant City Manager
Keith Cheong, Senior Accountant
SUBJECT:
Armored Car Transportation Services Agreement
RECOMMENDED ACTION
It is recommended that the City Council and Board of Directors of the Hesperia Water District authorize the City Manager to approve a five-year agreement with Brink’s, Inc. for Armored Car Transportation Services in the not-to-exceed amount of $135,000.
BACKGROUND
The City and Hesperia Water District utilize armored car transportation services to securely and safely transport cash and checks received by several City departments as part of daily operations to the City’s banking institution. Utilizing an armored car transportation service increases security, minimizes liability and provides protection over the City’s assets in transportation. The current vendor, Brink’s Inc. (Brink’s) began providing services in April 2022, and has met the City and District’s expectations in terms of ensuring the secure transportation of funds in a timely manner. Brink’s also utilizes new technology to improve the tracking and transfer of funds between parties.
ISSUES/ANALYSIS
During the contract review process, the City contacted Brink’s to examine potential cost-saving measures. Brink’s proposed that the City and the District utilize new smart safes, which use improvements in technology to streamline the cash management process, reduce deposit discrepancies, and improve deposit reporting. The implementation of this process would provide City and District staff better flexibility in the processing of daily deposits, while also providing an annual cost savings, when compared to the traditional daily process of routing armored cars to each location. It is projected that the use of smart safes, as a part of the Brink’s agreement, will result in an estimated savings of $50,000 over a five-year period, compared to traditional armored transport services alone. With Brink’s providing the smart safe equipment to the City and District, a five-year period is required. Due to the cost savings and process improvements for the City, staff recommends approving the Brink’s smart safe service agreement for the five-year period.
CITY GOAL SUPPORTED BY THIS ITEM
Financial Health – Maintain a balanced budget and adequate reserves.
Public Safety – Ensure public safety resources adequately protect our community.
FISCAL IMPACT
Sufficient funding for the first year of the five-year agreement will be included in the Fiscal Year (FY) 2024-25 Proposed Operating Budget. Funding for each subsequent year of the agreement will be included in the annual budgets.
ALTERNATIVE(S)
Provide alternative direction to staff
ATTACHMENT(S)
None
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the City Council and the Board Members of the Hesperia Water District Armored Car Transportation Services Agreement
May 21, 2024