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Home My WebLink AboutItem J March 3, 1999 STAFF REPORT TO: - Honorable Mayor and Members of the City Council FROM: Elizabeth Stoddard, Director of Administrative Services SUBJECT: ARMORED CAR TRANSPORT SERVICES SUMMARY OF REQUEST: Approve an agreement with Sectran Security, Inc., to provide armored car pickup service for both the City's daily cash deposits as well as parking meter coinage--pending approval of the proposed contract by the City Attorney. DISCUSSION: Staff is recommending the hiring of an armored car transport service for two reasons: To provide increased security for the City's daily cash deposits and to process the large volume of coinage from the new parking meter program. Loomis/Fargo, Brink's, and Sectran Security recently submitted bids to the City for picking up daily cash deposits and for twice-weekly pickup, counting and deposit of parking meter coinage. Although the pickup of coinage involves a number of variables relating to the frequency of pickup, the volume of coinage and the degree of staff involvement in preparing the bags of coins, the attached matrix represents a standardized quantification of the variables. THE BIDS: MONTHLY BID FOR CURRENCY & COIN LOOMIS/FARGO: $793.00 BRINK'S: $513.00 SECTRAN SECURITY: $339.00 FISCAL IMPACT: Costs for this service for the remainder of this fiscal year can be covered through a line item transfer from another account, if necessary. Therefore, a budget amendment is not necessary. Agenda Item `/ RECOMMENDATION: That City Council approve the agreement with Sectran Security, Inc., pending approval by the City Attorney, for armored car transport services. The service will begin as soon as both parties sign the agreement. Elizabeth Stoddard Director of Administrative Services Keith R. Till City Manager ARMORED TRANSPORT MATRIX Monthly Rate for Daily Monthly Rate for Twice Total Bid Per Month Company Currency Pickup Weekly Coin Pickup Loomis-Fargo 625.00 168.00 793.00 Brinks 330.00 183.00 513.00 Sectran, Inc. 300.00 39.00 339.00 FEB 23 '39 11:0EPM SECTRRN P.2 'add. SECTRAN SECURITY, INC. A CONTINENTAL CURRENCY COMPANY P.O.BOX 227267 . ' LOS ANGELES, CA 90022-0967 Sectran Security, Inc., is a wholly owned subsidiary of Continental Currency Services, Inc. (CCS), CCS is a California Corporation that has been doing business in California since 1978. Sectran was founded in 1982 and provides fully bonded and licensed armored car service in addition to cash vault services which comprise of deposit verification, deposit consolidation, change order preparation and coin wrapping, ATM replenishment and vault inventory services to over 1000 customers in retail, banking, and private industries in Los Angeles, Orange, San Diego, Riverside, San Bernardino and Ventura Counties in Southern California. Sectran operates fifty (50) armored vehicles out of Class A vaults located in Los Angeles, Ontario, San Diego, Van Nuys and Anaheim, California; and plans on expanding to Northern California in 1999. Sectran serves as the Federal Coin Repository for the Los Angeles Federal Reserve Bank, and Sectran is the largest food stamp depository west of the Mississippi providing food stamps bulk storage for Los Angeles, Monterey, Ventura, Santa Barbara and San Luis Obispo counties in California. Sectran employs approximately 120 full-time employees who do not belong to any union or collective bargaining unit, thus employee strikes, walkouts or slowdowns should be of no concern to any potential customer. Sectran currently pays the highest wages and provides the best benefits package of any armored car company in Southern California and will continue to do so in the future. Sectrans' employees undergo a complete background check prior to employment which includes polygraph, drug screen, criminal background check, and credit report. This pre-employment check has resulted in a work force which has had only three (3) deposit loss in the last three (3) years. All Sectran drivers are required to obtain a Class B commercial drivers license even though most of our armored vehicles do not require one. Each employee is required to attend our monthly customer service and safety meetings, which focus on providing the best possible armored car service while maintaining security in all of our customer locations. We encourage our employees to only use the service and/or products of our customers since they use our services. The following is a brief description of our other service organizations under Continental Currency Services (CCS) Parent Company of Sectran Security,Inc. A. CCS operates sixty (60) stationary store locations whose primary business are • check cashing, money orders sales, wire services, lottery and lotto sales, prepaid transit passes and discount tokens, and related financial services. Thirty-seven (37) of the aforesaid locations operate as Federal food stamp outlets: twenty-five (25) in Los Angeles County, California; five (5) in Orange County, California; three (3) in Ventura County. California; and four(4) in the state of Nevada. B. CCS, in line with its food stamp issuance, provides direct mail food stamp distribution for the State of Nevada. It further offers the aforesaid service of Ventura, Los Angeles, Santa Barbara and Monterey Counties in California. CCS' food stamp volume from both direct mail and over-the-counter distribution is approximately 363,000 transactions per month at a face value of approximately $58,000,000. PHONE 562-948.1446 FAX 582.949-4327 DEC-23-1999 10:09 562 949 4327 P.02 FEB 23 '99 11:09RM SECTRRN P.3 C. CCS, through its subsidiary Continental Express Money Order Co., Inc. (CEC), and affiliate, Continental Express Money Order Company of Arizona, Inc. (CEA), offers money orders for sale to the public through independent businesses. CEC's primary license is with the California Department of Financial Institutions. CEC is further licensed by the authorizing state departments of Washington and Oregon; and CEA by the authorizing state departments of Arizona and Nevada. CEC and CEA jointly have approximately 1700 agents throughout the aforesaid states. Through this network, it issues over one million money orders per month at a face value of approximately one hundred and ten million dollars ($110,000,000). D. Foreign Exchange Limited(FOREX), established in 1958, specializes in retail and wholesale foreign exchange. FOREX, maintaining a Department of Financial Institutions license in California, has retail operations in San Francisco and Southern California. Wholesale operations are transacted from its corporate office in Los Angeles. FOREX, through its correspondent banking network, maintains accounts in 32 counties throughout the world. Through this network, it issued wires and drafts for both the private and corporate sectors. FOREX converts in excess of$250,000,000 dollars in foreign exchange annually. E. Through its division, Mobile Money, Inc., CCS operates forty-one (41) mobile check cashing vans providing on-site payroll check cashing services to government, banks, and private industries in the greater Los Angeles, California area. Mobile Money is also under contract with Bank of America and Union Bank to provide welfare check cashing services at designated bank branches. F. RIA Envie, Inc. (RIA), incorporated in 1998, is an affiliated company of CCS. RIA is a New York corporation, with its principal business in international wire transmissions. RIA has wholly owned subsidiaries incorporated in the states of Delaware, Florida, New Jersey and Illinois, and is doing business in Canada, Spain and the Dominican Republic. Through it wholly owned subsidiaries, RIA • is licensed in seven (7) states to transmit monies to twenty-eight (28) countries, primarily servicing the Latin communities. RIA operates it own offices in New York, Dominican Republic, Mexico City, Madrid and Barcelona, Spain; and through representatives offices in London, England and Zurich, Switzerland. CCS has always played an integral role in the communities it serves. In 1987, CCS stepped and purchased American Security Financial Group, Inc., after it defaulted on its outstanding money orders liabilities. The aforesaid forced the closure of American Security Financial Group's four (4) Federal food stamps outlets in Los Angeles County. CCA not only stepped in and redeemed all outstanding American Security Financial money orders, insuring that the public suffered no financial loss, it further took over and now operates four (4) food stamp outlets providing food stamps serves that are vital to the communities in which they are located. DEC-23-1999 1009 562 949 432? P.03 FEB 23 '9B 11: 10RM SECTRRN P.4 CCS was further recognized by Ventura County and Los Angeles County for its efforts after the January 17, 1994 Southern Califomia earthquake. CCS provided emergency food stamp services to those people needing such assistance because of losses sustained during the earthquake. I trust that the above gives you some idea as to who we are and provides information of interest for your consideration. DEC-23-1999 10: 10 562 949 4327 P.04 FEB 23 '95 El:10421 SECTRRN• P.5 SECTRAN SECURITY,INC. A CONTINENTAL CURRENCY COMPANY 4312 P.O.BOX 2272E7 PAGE 2 of 2 OF CONTRACT NO LOSANGELES,CA 900220967 BETWEEN SECTRAN SECURITY.INC. ISECTRANI AND CONTRACT DATED WILL OE AS FOLLOWS. CUSTOMER SCHEDULE SERVICEFREQU CMS RVLII PER ICE SlniefAENTCHARGES I MAXIMUM CALL pT' S DEIIVfP TO. AVERAGE S ---- MAXIMUM ULL AT. S DELIVER TO. AVERAGE S CALL AT MAX Allan S DELIVER IDSAVE RAGE CALL Al: MAXIMUM S • DELIVER TO. AVERAGE S CALL AT. MAXIMUM S DELIVER TO: AVERAGE S CALL AT. MAXIMUM S DELIVER TO: AVERAGE S CALL AT: MAXIMUM S VERAGE DELIVER TO' i 5 CALL AT: MAXIMUM i S DELIVER TO. AVERAGE f CALL AT MAXIMUM S AVERAGE DELIVER TO'. S MAXIMUM CALL AT S VERAGE DSLIVER TO f CALL AT. MAXIMUM S DELIVER TO AVERAGE S CALL AL MAXIMUM A IMUM JERACE DELIVER'0: S CALL AT'. MAXWUM VERAGE DIENER TO I , The above Schedule shall be performed or Secaan's regular routes unless otherwise stipulated. Each titin the SECT 'S REPRESENTATIVE delayed the CUSTOMER ray a pe lod omoa taw mutes while R attempting to Dols up a deposit or oehver a changeder,an Pave charge al 51.50 Ay minute u'III Oe added Subject to the terms and[ond'tions above arc on page 1 lonel,tE vice under the agreement shall commence on in he e Wall continue f or a Period of .Al the exprrauon of the time set forte in the preceding sentence. the agreement shah be automatically extended from montr' w month will v Thee Terminated by either 30(thirty)days notice or until a new agreement is sgred IN WITNESS WHEREOF,the Parties steres have muted thir co•eact a Dl the day and year fit written. SECTRAN SECURITY.INCORPORATED Custom!, le By Lie By r>..er„-ill lemtatir•Pink-9illi0D OEC-23-1599 10:10 562 .949 4324 78z P.05