HomeMy WebLinkAbout2006-01-04 STAFF REPORTS 2R O�QPLMS'04
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cg41204 CITY COUNCIL STAFF REPORT
DATE: January 4, 2006 CONSENT AGENDA
SUBJECT: AWARD AUTOMATED TELLER MACHINE (ATM) LICENSE
AGREEMENT
FROM: David H. Ready, City Manager
BY: Aviation Department and Procurement Division
SUMMARY
The requested action will provide a three (3) year License Agreement for automated
teller machine (ATM) services at the Palm Springs International Airport.
RECOMMENDATION:
1. Approve Minute Order No. authorizing award of license agreement to
Palm Desert National Bank to provide to provide Automated Teller Machine
(ATM) Services at the Airport subject to approval of final form of license by the
City Attorney.
2. Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
Currently ATM services at the Airport are available at a single, aging machine that has
been in place for approximately eight years.
Staff issued a Request for Proposal (RFP No. 06-06) for automated teller machine
services at Palm Springs International Airport on October 11, 2005. Two proposals
were received by the due date and time established for receipt of proposals — one from
Canyon National Bank (CNB) and one from Palm Desert National Bank (PDNB). On
November 30, 2005 an Evaluation Committee made up of Bruce Johnson - Division of
Procurement and Contracting, Catherine Wilson - Finance Department, Bob Elsner —
Airport Commission Chairman, Larry Spicer — Airport Commissioner and Steve Zehr -
Department of Aviation completed their evaluations of the two proposals. The
Item No. 2. R.
City Council Staff Report
(January 4, 2006) -- Page 2
ATM License Agreement Award
Evaluation Committee evaluated each firm based on a combination of factors including
background and experience of the firm; the type of equipment proposed; the proposed
transaction fee to be paid; the proposed transaction fee for non-bank customers; and
the overall completeness of each proposal.
Each firm was asked to estimate the amount of revenue the City would expect to
receive over the initial three year term. PDNB is proposing to pay the City $1.10 per
transaction in 2006, $1.25 per transaction in 2007 and $1.35 per transaction in 2008.
Based on the past twelve months of transactional activity at the Airport, PDNB will pay
approximately $49,284.00 in revenue to the City during the three year period. In
comparison, CNB has proposed a flat transaction fee of $0.20 per transaction or $200 a
month per machine whichever amount is greater. Using the same transactional data,
CNB's transaction fee will generate an estimated $15,192.00 over the three year period.
The surcharge proposed by CNB for non-CNB customers is $1.95 per transaction for
withdrawals only. The surcharge proposed by PDNB for withdrawals only is $2.25 per
transaction. Based on the revenue estimates and other information provided by each
firm, the proposal received from PDNB was unanimously ranked as the highest scoring
proposal by the evaluators.
Palm Desert National Bank is a locally-owned, independent bank, growing with the
community for over 22 years. Palm Desert National Bank is a nationally chartered
financial institution with assets exceeding $250 million. In addition, it is home to
Electronic Banking Solutions (EBS), a division that was established in 1994. EBS
provides more than $700 million in vault cash and cash management services to over
13,500 ATMs and kiosks nationwide with corporate offices in California and an
operations center in Louisiana. In comparison, CNB operates a total of 59 ATMs.
The proposed license agreement will provide two (2) ATM machines at the Airport— one
on the non-secure landside of the Airport and one inside the secured airside. The
maximum term of the license is for 5 years, consisting of a 3-year initial term and two 1-
year extensions at the election of the City Manager. The equipment proposed by PDNB
includes multi-language capabilities and is ADA-compliant.
Due to its sensitive nature, one issue that was not covered in the RFP was the
procedure for armored car personnel to transport money into the sterile area. This
process has been worked out to the satisfaction of the Transportation Security
Administration, and we are in the final stages of discussion with the bank to finalize the
procedure which will be reflected in the agreement prior to execution.
The Airport Commission will consider this matter at their January 4th meeting. Staff will
verbally update the Council on the Commission's actions at the Council meeting.
City Council Staff Report
(January 4, 2006) -- Page 3
ATM License Agreement Award
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FISCAL IMPACT:
It is estimated that this action could generate as much as $16,428 per year in additional
revenues for the Airport.
Richard S. Walsh, A.A]E�:=--director of Aviation Tr6yj8utzlajt-'�ssistant City Manager
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David H. Ready, City ager
MINUTE ORDER NO.
AUTHORIZING AWARD OF LICENSE AGREEMENT TO PALM DESERT NATIONAL
13ANK TO PROVIDE TO PROVIDE AUTOMATED TELLER MACHINE (ATM)
SERVICES AT THE AIRPORT SUBJECT TO APPROVAL OF FINAL FORM OF
LICENSE BY THE CITY ATTORNEY,
I HEREBY CERTIFY that this Minute Order, authorizing award of license agreement to
Palm Desert National Bank to provide to provide Automated Teller Machine (ATM)
Services at the Airport subject to approval of final form of license by the City Attorney
was approved by the City Council of the City of Palm Springs, California, in a meeting
thereof held on the 4th day of January, 2006.
JAMES THOMPSON
City Clerk