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Home My WebLink About9/19/2001 - STAFF REPORTS (3) DATE: September 19, 2001 TO: City Council FROM: Assistant Director of Aviation via Interim Director of Aviation AMENDMENT NO. 1 -AUTOMATED TELLER MACHINE SUPPLY AND SERVICING RECOMMENDATION: It is recommended that the City Council approve Amendment No. 1 to standard contractual service agreement for automated teller machine supply and servicing No. 3990 between the City of Palm Springs and Palm Desert National Bank. SUMMARY: Palm Desert National Bank intends to exercise an option to renew ATM services at the Palm Springs International Airport for three (3) years with provisions listed in Amendment No. 1 in full effect which includes a transaction rent commission of$0.75 per transaction out of a $2.00 convenience fee payable in full to the Airport. BACKGROUND: In the past, Airport staff attempted to attract a qualified ATM operator through a Request for Proposal (RFP) process and was initially unsuccessful. Airport staff further refined the RFP and was able to secure an agreement with Palm Desert National Bank for three (3) years. Previously,the number one complaint received at the Airport was the lack of a ATM service. With Palm Desert National Bank willing to provide this service where no other operator would, it would be beneficial to continue this arrangement. With the present agreement, a option to extend the term for three (3) years is available. Unfortunately, delays in the bank exercising this option due to ongoing negotiations related to the proposed amendment No. 1 have occurred. However, it is still possible to reactivate the agreement and extend it for three (3) years with the provisions listed in Amendment No. 1 in full effect. As part of the negotiations for the new agreement, Palm Desert National Bank has agreed to pay a transaction rent commission of$0.75 per transaction out of a $2.00 convenience fee. Previously, the Airport did not receive any transaction rent commission per the original agreement, only the service was provided. Additionally, Palm Desert National Bank will upgrade the existing machine to a newer, more advanced machine in order to maintain quality customer service. Airport staff recommends that City Council approve Amendment No. 1 to Agreement No. 3990. APPROVED: —BARRY ��FFIT� �Y� 5fW55(ST, AA'.E. Assistanf'Direct6f of Aviation / Iriter`rFn Director of Aviation APPRD .��✓ City Manager Attachments: (1) Amendment No. 1(2) Minute Order REVIEWED BY DEPT.OFFINANCE AMENDMENT NO. 1 TO CONTRACT SERVICES AGREEMENT FOR AUTOMATED TELLER MACHINE SUPPLY AND SERVICING NO. 3990 This AMENDMENT NO. 1 TO CONTRACT SERVICES AGREEMENT FOR AUTOMATED TELLER MACHINE SUPPLY AND SERVICING NO. 3990 ("Amendment") is made and entered into this day of September, 2001, by and between the CITY OF PALM SPRINGS, a California municipal corporation ("City") and PALM DESERT NATIONAL BANK, a National Banking Association("Contractor"). RECITALS WHEREAS,on June 4, 1998,City and Contractor entered into that certain Contract Services Agreement for Automated Teller Machine Supply and Servicing No. 3990 ("Agreement"), for Contractor's installation, service and maintenance of an automated teller machine("ATM")within the Palm Springs International Airport("Airport"),as more specifically described in the Agreement; WHEREAS, the term of the Agreement, was for three (3)years, which expired on June 4, 2001, and a one-time option to extend the term for an additional there (3) years, which option Contractor did not exercise under the requirements of Section 3.4 of the Agreement; and WHEREAS,City and Contractor desire to reactivate the expired Agreement,extend the terns for another three (3) years from the date of the original expiration of said term, and amend the Schedule of Compensation to require Contractor to pay the City a portion of the revenues it generates from use of the ATM, as provided in this Amendment. AGREEMENT NOW, THEREFORE, in consideration of the mutual promises of the parties hereto and for other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged,City and Contractor agree as follows: 1. Reactivation of Agreement. The parties agree that the Agreement shall be reactivated and remain in full force and effect, except as specifically amended herein. 2. Section 3.4 of the Agreement entitled "Term" shall be amended in its entirety to read as follows: "3.4 Term. Unless earlier terminated in accordance with Section 7.8 of this Agreement, this Agreement shall continue in full force and effect until June 4, 2004." 2. Sections 2.1 and 2.2 of the Agreement Lease entitled "Contract Sum" and "Method of Payment", respectively, shall be amended in their entirety to provide as follows: IRV#14123 vI I4 2L "2.1 Contract Sum. For the services rendered pursuant to this Agreement, the Contractor shall be entitled to compensation from each ATM customer's account in accordance with the"Schedule of Compensation"attached hereto as Exhibit"C"and incorporated herein by this reference. Further, in consideration for the use of the space within the Airport for installation of the ATM,Contractor shall compensate the City as provided in Schedule"C"hereto and within the times set forth in Section 2.2 below. 2.2 Method of Payment. Contractor shall be solely responsible for collecting any compensation provided under Schedule"C"from ATM customers or their respective financial institutions. By no later than the fifteenth(15th) day of each month of the term, including the fifteenth (15th) of the month following termination of this Agreement, Contractor shall pay to City all fees do City under Schedule"C"for the immediately preceding month,which payment shall be accompanied by an itemized statement showing the number of customer transactions completed from the ATM." 3. Exhibit "A" to the Agreement entitled "Scope of Services" shall be amended to add the following Paragraphs "D" and "E" immediately following Paragraph "C" therein, with all other provisions of Exhibit"A" remaining unchanged and in full force and effect: "D. By no later than June, 30 of each year of the term of this Agreement, and including June 30 on the year following the termination of this Agreement, Contractor shall provide audited financial statements,certified by an authorized officer of Contractor, confirming the number of transactions performed and fees generated from the ATM under this Agreement. Should the audited statements show any underpayment by Contractor to City,Contractor shall pay such difference to City within ten(10)days of City's demand therefor plus three percent(3%)of such underpayment.Should the audited statements show any overpayment by Contractor to City, City shall reimburse Contractor for the actual amount of such overpayment as a credit to the following month's revenues due to City,provided such overpayment is confirmed by the Contract Officer. E. On or before ,2001,Contractor shall replace the ATM at the Airport with a new,ATM that incorporates the most recent advancements in technology and design in ATMs. At least three (3) days before Contractor installs the ATM, Contractor shall first contact the Contract Officer to coordinate a convenient time and date to remove the existing ATM and install the new ATM. Contractor warrants that the work for removal and installation of the ATMs shall be performed in no more than two(2)consecutive days. Contractor shall assure that all such work is performed in a manner so as to minimize any disruptions or interference of Airport operations, including but not limited to, Airport pedestrian traffic. Contractor shall further assure that any work performed hereunder shall be in a competent,professional,and clean manner. Contractor shall completely clean all construction equipment and IRV#14123 A _2_ materials upon completion of the work." 4. Exhibit"C" to the Agreement entitled"Schedule of Compensation"shall be amended in its entirety and replaced with Exhibit"C" attached hereto and incorporated herein by this reference. 5. Due Execution. The person(s) executing this Amendment on behalf of the parties hereto warrant that(i)such party is duly organized and existing,(ii)they are duly authorized to execute and deliver this Amendment on behalf of said party,(iii)by so executing this Amendment,such party is formally bound to the provisions of this Amendment,and(iv)the entering into this Amendment does not violate any provision of any other agreement to which said party is bound. 13. Full Force and Effect. The parties further agree that, except as specifically provided in this Amendment, the terms of the Agreement shall remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed on the day of September, 2001. "City" ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By: City Clerk City Manager REVIEWED AND APPROVED: City Attorney "Contractor" PALM DESERT NATIONAL BANK, a National Banking Association Name: Title: Name: Title: IRV#14123 v1 -3- EXHIBIT "C" SCHEDULE OF COMPENSATION Contractor's Compensation: Contractor shall receive a convenience fee of$2.00 per customer transaction on any and all ATMs installed within the Airport under this Agreement. The $2.00 transaction charge will not be paid by City. Any increase in said convenience fee during the term hereof shall be stipulated in writing and agreed to by both parties. City's Compensation: Contractor shall pay to City, within the times and manner set forth in Section 2.2 herein, a fee of$.75 per customer transaction on any and all ATMs installed within the Airport under this Agreement. IRV#14123 vI -4- MINUTE ORDER NO. APPROVING AMENDMENT NO. 1 TO STANDARD CONTRACTUAL SERVICE AGREEMENT FOR AUTOMATED TELLER MACHINE SUPPLY AND SERVICING NO. 3990 BETWEEN THE CITY OF PALM SPRINGS AND PALM DESERT NATIONAL BANK. I HEREBY CERTIFY that this Minute Order approving Amendment No. 1 to Amendment No. 1 to standard contractual service agreement for Automated Teller Machine Supply and Servicing No.3990 between the City of Palm Springs and Palm Desert National Bank,was adopted by the City Council of the City of Palm Springs, California in a meeting thereof held on the 191" day of September 2001. PATRICIA A. SANDERS City Clerk 13