HomeMy WebLinkAboutFS 2009-02-03 Item 2C - Discussion - Armored Car Services
City ofTukwila
Jim Haggerton, Mayor
Shawn Hunstock, Director
FinancelJepartment
INFORMATIONAL MEMORANDUM
From:
Mayor Haggerton
Finance & Safety Committee
Shawn Hunstock, Finance Director./l2r
To:
Date:
January 27, 2009
Subject:
Recommendation for Armored Car Service
Issue
The City IS In need of an armored car service to replace the current practice of
employees driving city vehicles to the bank, or bringing their deposits to City Hall for
inclusion in the Finance deposit.
BackQround
Departments have for many years had employees driving money from non-City Hall
locations to the bank or to the Finance department for inclusion in our daily deposits. For
cash receipts in City Hall, as well as deposits from other departments brought to
Finance, a Finance employee drives to the bank on a daily basis to make the deposit.
During 2008 we had a Finance employee assaulted at the bank as she was attempting
to make a deposit. Fortunately, the employee was not seriously injured and there was no
financial loss to the city. Utilizing an armored car service would provide for a more
secure means of getting daily deposits to the bank. This would also be more efficient
and less costly than several employees at different departments driving to City Hall or
the bank to make the deposit. The armored car service would be utilized instead, saving
on staff costs and benefits, not to mention the wear and tear on city vehicles being used.
Recommendation
The attached spreadsheet details the estimated time and cost involved with city
employees at various locations driving deposits to City Hall or to the bank. As you can
see, there is a minimal cost savings between our current practice versus securing an
armored car service for regular pickup. At City Hall, this would be five days per week,
Monday through Friday. My recommendation would be for seven days per week at the
Community Center, based on current daily volume at TCC. At the golf course I would
recommend three to five days per week during the off season, and seven days per week
Armored Car Service
Paqe 2
during the summer. Three days per week would be adequate at the pool, unless the
cash and check volume changes significantly, at which time the frequency could be
increased to five days per week. Based on current deposit amounts, I would recommend
three days per week for pickup at Station 51 for Fire department deposits.
I am recommending utilizing an armored car service effective as soon as possible. In the
coming weeks I will prepare a new Finance policy regarding off-site (non-City Hall)
deposits giving departments information and guidelines for security of cash, checks and
credit card information, timeliness of depositing, and review and approval of deposits to
insure proper segregation of duties.
This is an unbudgeted expense for the departments involved. The expectation at this
time is for departments to absorb the cost of armored car service from their existing
operating budgets. Department budgets will be evaluated during the mid-biennium
adjustment process to determine if there is a need to fund the cost of this service from
fund balance. Funding could be made at other times too, if necessary, with Council
approval.
Attachments:
. Armored Car Service Analysis spreadsheet
CITY OF TUKWILA
A RMORED CAR SERVICE ANALYSIS
ESTIMATED COST Of ARMORED CAR SERVICE'
Service term
Months of Service
Cost of Service:
Fuel
Surcharge FULL RATE
Base Rate
at
8.2%
1 Day service 119.00
2 Day service 144.00
3 Day service 195.00
5 Day service 286.00
7 Day service 379.00
9.76 128.76
11.81 155.81
15.99 210.99
23.45 309.45
31.08 410.08
Finance
Dept
City Hall
annual
12
Tukwila
Community
Center
annual
12
Total
City Hall
5
ESTIMATED COST WITHOUT ARMORED CAR SERVICE.. 260
Hall per week
Number of trips to bank/ City Hall per year 3
trips to banal y per hour (including benefits) 0.5
Number d of ho a roll cost
Estimated hourly ent on bank trips in hours
Estimated time spent 3,900
ied benefits include decrease liability exposure from employees
Additional, unQuantrf
Parks Recreation Dept
Tukwila
Foster Golf Course pool
Nov Air �_?�_-__Cit T12, annual
6 6
Total Station 51
annual
12
Fire
Dept TOTAL
5064
2,532
2,532 ?632
9,284
6570 2460
1,857
1 857
2,460
3 713 2 460 2 532 16,808
3 713 2,46 10 562
2 53
2
4,317 317
Total Total Grand
Total
Golf Eire Dept
Course Pool P R
5 5 3
15
260 260 5
30 30 0.5
0.5 0.5
3,900 12,480 2,340 18,720
3,900
TCC
6
312
30
0.5
4,680 department cars.
transporting cash and checks; reduced need for