TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Extension of Cash Revenue Service Contract
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to enter into a contract extension with Brink’s U.S., a division of Brink’s Incorporated, for up to an additional nine (9) months for cash revenue collection services from July 1, 2025 through March 31, 2026.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Continued efficient collection and deposit of cash revenues is critical to the District’s overall business operations.
BUDGETARY/FISCAL IMPACT:
The estimated value of the contract extension from July 1, 2025, through March 31, 2026, is approximately $480,820. The funding is included in the District’s Operating Budget.
BACKGROUND/RATIONALE:
Under the current Contract 2019-1462, as amended, Brink’s provides the District with consolidated armored car transportation services and processing of the District’s cash fare revenue. In connection with the performance of services under the Contract, Brink’s is required to use armored vault transfer vehicles to pick up and transport daily transit cash fare revenue and to provide complete money processing services. Staff has been analyzing the current process, as related to the Scope of Services, and working with Brink’s to identify potential cost-saving measures, including changes to the frequency of cash revenue pickups.
The current contract extension (2019-1462 A1) expired on June 30, 2025. Staff started the process for a second amendment while also continuing work on a new solicitation at the end of 2024. Brink’s did not respond in a timely fashion to repeated requests starting in December 2024 to negotiate terms and for review of draft documents of the second extension. Staff should have brought an item to the Board to extend the contract before the end of June despite the delays. Extended vacancies during this period in Treasury, Contracts, have increased workload and caused delays in approvals, which led to the delay in bringing this item to the Board. Following the extended negotiations period Brink’s has agreed to the second contract extension and it is ready to be issued.
The additional nine months is needed to continue these essential services while the solicitation process continues. Staff aims to award a new contract by January 2026, but are requesting an extension through the first quarter of 2026 to ensure adequate time in the event of further delays. Brink’s has continued to provide services to the District under good faith since the District has been actively working with them during this period. The District has not yet paid any invoices submitted for the second extension period (July 1 onwards).
Extending this Contract for armored car transportation and money processing services through March 2026 will allow for these essential services to continue. The solicitation process will allow for the District to review its options for these types of services, although the market for the specific scope that the District requires is very limited and the last solicitation only received one bid.
ADVANTAGES/DISADVANTAGES:
There are no identified disadvantages to extending this Contract.
ALTERNATIVES ANALYSIS:
There are no feasible alternatives to the course of action recommended in this report.
PRIOR RELEVANT BOARD ACTION/POLICIES:
Staff Report 18-253d - Consider approving a Contract award for Brink’s Armored Car Transportation and Cash Revenue Processing Services Staff Report 18-253b - Consider approving an amended bid price for Brink’s Armored Car Transportation and Cash Revenue Processing Services.
Board Policy 465 - Procurement Policy.
ATTACHMENTS:
None
Prepared by:
Sue Lee, Director of Revenue Management
Approved/Reviewed by:
Chris Andrichak, Chief Financial Officer
Fred Walls, Director of Procurement & Materials
Aimee L. Steele, General Counsel/Chief Legal Officer