SR 08-14-2018 3F (2)
City Council
Report
City Council Meeting: August 14, 2018
Agenda Item: 3.F
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To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department, Revenue
Subject: Extend Maintenance Agreements for the Big Blue Bus and Parking Meter
Currency Counting Room Equipment
Recommended Action
Staff recommends that the City Council authorize the Purchasing Manager to issue the
following change orders:
1. A change order to the purchase order #21900200 in the amount of $42,500 with
Money System Technology, a Texas-based company, for the maintenance of two
coin sorters/counters and conveyor belts used for currency counting operations.
This will result in a revised estimated purchase order total of $83,000 over a ten-
year period, with future year funding contingent on Council budget approval.
2. A change order to the purchase order #21900921 in the amount of $84,000 with
Richard's Coin & Currency Counters, a California-based company, for the
maintenance of various equipment for currency counting operations, and the
purchase of replacement parts. This will result in a revised estimated purchase
order total of $149,400 over a ten-year period, with future year funding contingent
on Council budget approval.
Summary
The City of Santa Monica contracted with Money Systems Technology and Richard’s
Coin & Currency Counters to purchase equipment and provide preventative
maintenance and repair services for the counting room equipment. Both maintenance
agreements are scheduled to expire on September 23, 2018. Staff recommends sole
source blanket purchase orders with Money Systems Technology (MST) in the amount
of $42,500 for a five-year term, and with Richard’s Coin and Currency in the amount of
$69,000 to provide maintenance and repair services and an estimated $15,000 for the
purchase of replacement parts for an estimated total of $84,000 for a five-year term for
the counting room equipment. This would result in a revised additional five-year term for
a total amount not to exceed $232,400. The cumulative amount for these two contracts
has reached slightly over $587,963 since Richard’s Coin & Currency began providing
these services in 1999.
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Discussion
The extension of the maintenance agreements is required to continue to provide
preventative maintenance and repair services for proprietary equipment. Counting room
operations provides currency and coin counting services for large volumes of cash -
approximately $5.7 million annually from Big Blue Bus fare boxes and approximately
$3.2 million annually from parking meters.
According to SMMC 2.24.080 (d), the competitive bidding procedure is not applicable in
instances where only one vendor possesses the unique ability or capability to meet the
particular requirements of the solicitation. In this case, the compatibility of equipment for
maintenance and repair services is necessary to prevent disruption of counting room
operations.
The agreement with MST includes two service appointments per month, labor, and
limited parts to repair two MST coin sorters/counters and horizontal conveyors. The
agreement excludes replacement parts such as coin plates, input board, horizontal
conveyor belts, and coin bag scales. The agreement with Richard’s Coin & Currency
includes all labor and parts pertaining to other ancillary equipment that is used for
counting of Big Blue Box fare box revenue and coins from parking meters.
Past Council Actions
Between 1999 to 2013, purchase orders and requests for warrants amounting to an
approximate total of $482,062 were approved under City Manager authority. In 2013,
the Santa Monica Municipal Code 2.24.090 related to purchasing was updated to
facilitate a more transparent purchasing process. The updated Code determined that
vendor agreements in excess of $175,000 in cumulative purchases over multiple fiscal
years are subject to Council approval. Since then, Council has approved requests for
change orders as noted in the table below.
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Meeting Date Description
09/24/13 (attachment A) Original Council approved sole-source purchase orders for Money
Systems Technology and Richard’s Coin & Currency Counters.
08/25/15 (attachment B) Council approved extension of maintenance agreements with
Money Systems Technology and Richard’s Coin & Currency
Counters.
Financial Impacts and Budget Actions
Staff seeks authority to extend the maintenance agreements with Money Systems
Technology and Richard’s Coin & Currency Counters to prevent disruption of counting
room operations.
Extension of Maintenance Agreements: Money Systems
Technology & Richard's Coin & Currency Counters
Blanket PO
Vendor
Current
Authorized
Amount
Modified
Request
FY 2018-19 Budget
Dept/CIP Account #
Total Revised Contract
Amount
21900200 Money Systems
Technology $40,500.00 $42,500.00 01300006.529080
$83,000.00
21900921 Richard's Coin &
Currency
Counters $65,400.00 $84,000.00
C6004770.689000
$149,400.00
Total $232,400.00
Funds in the amount of $42,500 are available in the FY 2018-19 budget in the Finance
Department and $84,000 in the FY 2018-19 Capital Improvement Program budget.
Future year funding is contingent on Council budget approval.
Prepared By: David Carr, Assistant City Treasurer
Approved
Forwarded to Council
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Attachments:
A. September 24, 2013 Staff Report (Web Link)
B. August 25, 2015 Staff Report (Web Link)
C. Richard's Coin and Currency Counters Oaks
D. Money Systems Technology Oaks