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City terminates armored-car contracts and recommends three-year vendor disqualification after alleged mishandling of funds
Summary
Council approved resolutions to terminate multiple armored-car service contracts with Transamerica Protection Corporation for default, citing alleged mishandling and delayed deposits of funds. The city recommended a three-year ban on contracting with the company and has filed litigation alleging misappropriation; one municipal-court-related shortfall was paid June 22.
City Council on June 23 approved resolutions terminating multiple armored-car service contracts with Transamerica Protection Corporation and recommended the vendor be disqualified from city contracting for three years.
Purchasing staff summarized the recommendation to terminate contracts 2024-0183 and 2024-0520 and to disqualify the firm for default and unsatisfactory performance under contract terms that allow immediate termination for violation of laws or regulations related to performance. Purchasing said the terminations cite a contract clause permitting immediate termination for violations of law or regulation.
The city attorney explained the basis of the action: the city filed a petition in county court alleging that funds collected by the vendor from city facilities were delayed, deposited late, and in denominations inconsistent with receipts — conduct the city alleges amounts to mishandling and misappropriation. The city reported that municipal-court-related missing funds of $126,548 were paid in full on June 22, and that other claims remain under review.
Representatives from affected departments described the timeline: municipal court filed a police report when the issue first emerged; contract terms expired or were terminated at different times per department needs; International Bridges reported delayed deposits and denomination discrepancies that prompted the expedited termination of the contract for that site.
Purchasing staff said a short-term procurement is in place to ensure armored-car services continue while the city transitions vendors; staff also noted the procurement record shows Transamerica had contracts with the city since roughly 2014.
Council approved the resolutions unanimously and the Mass Transit Department board separately approved termination of a related contract during a reconvened board meeting earlier in the afternoon.
What happens next: the city has filed litigation and will pursue standard procurement follow-ups, including soliciting replacement services and, if appropriate, pursuing claims and disqualification under municipal code. Staff said they will review the municipal code policy on disqualification (currently three years) to determine whether any changes are warranted for future cases.
