Title
a. Approve and authorize the Treasurer-Tax Collector or their designee to sign a procurement and maintenance agreement with Cummins-Allison Corp. for upgraded currency-counting hardware and associated professional services, for a term beginning on the date of hardware implementation through December 31, 2026, in an amount not to exceed $150,000; and
b. Approve and authorize the Treasurer-Tax Collector or their designee to execute up to two (2) additional one-year amendments, each extending the term by one year, provided that the cost of each amendment does not exceed $150,000; and
c. Approve the Treasurer-Tax Collector’s recommendation to sign the non-standard risk provisions for limitations on liability included in Exhibit A of the agreement.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve and authorize the Treasurer-Tax Collector or their designee to sign a procurement and maintenance agreement with Cummins-Allison Corp. for upgraded currency-counting hardware and associated professional services, for a term beginning on the date of hardware implementation through December 31, 2026, in an amount not to exceed $150,000; and
b. Approve and authorize the Treasurer-Tax Collector or their designee to execute up to two (2) additional one-year amendments, each extending the term by one year, provided that the cost of each amendment does not exceed $150,000; and
c. Approve the Treasurer-Tax Collector’s recommendation to sign the non-standard risk provisions for limitations on liability included in Exhibit A of the agreement.
SUMMARY:
The Treasurer-Tax Collector (TTC) collects Property Tax, Transient Occupancy Tax, Cannabis Tax, and court-ordered debt on behalf of the County. Because the TTC accepts onsite cash payments, reliable and up-to date currency-counting equipment is essential. To maintain accuracy, detect counterfeit currency, and support updated federal security enhancements, the TTC must replace its aging currency-counting equipment. The proposed agreement with Cummins-Allison Corp. provides upgraded hardware and ongoing maintenance essential to safeguarding County funds and supporting efficient, secure cash-handling operations.
DISCUSSION:
The TTC relies on currency-counter systems to ensure the integrity, accuracy, and authenticity of all cash payments received. The department processes cash daily making reliable currency-verification technology a critical operational safeguard.
The upgraded Cummins-Allison equipment incorporates the newest U.S. Treasury and Federal Reserve security features, improving counterfeit detection and significantly reducing the risk of financial loss. The enhanced hardware also increases processing efficiency, reduces staff handling time, and strengthens internal controls related to cash management.
The proposed agreement provides for the purchase, implementation, and maintenance of the new systems. These devices will replace outdated units that no longer meet current federal security standards and have become increasingly costly to maintain. Approval allows the TTC to maintain a secure, compliant, and efficient cash-handling environment across all divisions that accept onsite payments.
OTHER AGENCY INVOLVEMENT/COMMITTEE ACTIONS:
County Counsel and Risk Management have reviewed the agreement and have provided agreed-upon language included in the contract regarding non-standard limitation-of-liability provisions. The TTC recommends approval due to the low risk regarding hardware and related service plus the specialized nature of the hardware and limited market alternatives for systems that meet operational and security requirements.
FINANCING:
Funding for the equipment and service agreement is included in the TTC’s FY 2025-26 budget. The impact to the General Fund will be minimal, as 50% of the cost (six units) is eligible for reimbursement through the State of California’s Comprehensive Collections Program (CCP), which allows participating agencies to recover eligible costs associated with court-ordered debt collections.
BOARD OF SUPERVISORS STRATEGIC PLAN GOALS:
Mark a check to the related Board of Supervisors Strategic Plan Goals
____ Well-Being and Quality of Life
____ Sustainable Infrastructure for the Present and Future
____ Safe and Resilient Communities
____ Diverse and Thriving Economy
____ Dynamic Organization and Employer of Choice
If does not fall under any of the above Board of Supervisors Strategic Plan Goals (Other):
__X_ Administrative
This recommendation supports the Administrative initiative by strengthening transparency, accuracy, and accountability in the collection of taxes and court-ordered debt. Upgraded currency-verification systems enhance financial controls and safeguard public funds consistent with Government Code requirements and secure revenue-collection practices.
Link to the Strategic Plan:
<https://www.countyofmonterey.gov/home/showdocument?id=139569>
Prepared by: Sacramento Villicana, Chief Deputy Treasurer-Tax Collector, x5436
Reviewed by: Jake Stroud, Assistant Treasurer-Tax Collector, x5828
Approved by: Mary Zeeb, Treasurer-Tax Collector, x5015
Attachments:
Attachment A: Standard Agreement with Provision
Exhibit A.1 Final Discount Monterey Tax (6) Single Pocket i135 & Service Contract
Exhibit A.2 Final Discount Monterey Tax (6) Dual Pocket i235 & Service Contract