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APPROVE AN INCREASE OF $25,000 TO THE SERVICE AGREEMENT WITH LOOMIS ARMORED US, LLC TO MAINTAIN CASH MANAGEMENT SERVICES
recommended action
RECOMMENDATION
It is recommended that the City Council by motion, approve adding funds in the amount of $25,000 to the service agreement with Loomis Armored US, LLC to maintain armored transportation/cash management services to the Revenue Division within the Administrative Services Department, bringing the total not-to-exceed contract amount to $124,999.
It is also recommended that the City Manager be authorized to take necessary and appropriate actions to carry out the purpose and intent of the motion.
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Summary
Due to increased costs and excess item handling fees incurred since the current service agreement was executed on July 1, 2020, additional funding is needed to maintain cash management services with Loomis Armored US, LLC (Loomis) through the end of the agreement term, which expires June 30, 2025. Monthly invoices since July 2023 have been averaging approximately $2,100; therefore, Staff estimates an increase of $25,000 will be sufficient to continue services through the end of the contract term. Council approval of the requested increase will bring the total not-to-exceed contract amount to $124,999.
DISCUSSION
Background
In May 2020, the City entered into an agreement with Loomis for armored transportation/cash management services to the Administrative Services Department’s Revenue Division, for a five (5) year term, effective July 1, 2020 (Attachment A). Costs for the full term of the agreement were estimated to be $70,000, based on the approved rate sheet. In 2023, the City processed an administrative amendment increasing funds available under the contract by $29,999, bringing the total value to $99,999. The originally approved rates remains in effect.
Present Situation
The balance of previously authorized funding available is insufficient to maintain Loomis services through the contract expiration date of June 30, 2025. Therefore, to maintain current service levels, Staff recommends an increase of $25,000 for the contract with Loomis, for a total not-to-exceed amount of $124,999.
The Administrative Services Department plans to solicit bids for armored transportation/cash management services in early 2025, and to execute a contract with the selected vendor with an effective date of July 1, 2025.
FINANCIAL SUMMARY
Sufficient funds are available in the Revenue Service Fund accounts funded by the General Fund and Utility Funds to cover the increased contract costs.
Attachment A - Loomis Agreement