HomeMy WebLinkAbout10/1/2008 - STAFF REPORTS - 2.G. Fp ALM$A9
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CITY COUNCIL STAFF REPORT
DATE: OCTOBER 1, 2008 CONSENT CALENDAR
SUBJECT: ATM ASSIGNMENT OF LICENSE AGREEMENT 5214 FROM PALM
DESERT NATIONAL BANK TO U.S. BANK NATIONAL ASSOCIATION
FOR THE PERIOD OCTOBER 1, 2008 THROUGH JANUARY 3, 2009
FROM: David H. Ready, City Manager
BY: Department of Aviation
SUMMARY:
This action would retain ATM services at the Airport by authorizing the assignment of
the current Airport ATM agreement with Palm Desert National Bank to U.S. Bank
National Association through the end of the original term that expires on January 3,
2009.
RECOMMENDATION:
1. Approve a one-time Assignment of A5214 with Palm Desert National Bank to
U.S. Bank National Association for the remainder of the initial license period
ending January 3, 2009, for the License Agreement of Automated Teller
Machines at the Palm Springs International Airport.
2. Authorize the City Manager to execute the Assignment subject to review of
the City Attorney,
3. Direct staff to issue an RFP for a License Agreement for the ATM's at the
Palm Springs International Airport as of January 4, 2009.
STAFF ANALYSIS:
Under City Agreement A5214, Palm Desert National Bank has the license to operate
and maintain ATM's at the Palm Springs International Airport. This agreement expires
on January 3, 2009. Notice was received just a few weeks ago that Palm Desert
National Bank has sold this ATM division to U.S. Bank National Association and they
are turning the operations over effective October 1, 2008. It is then necessary to
approve a temporary assignment in order to allow the transition to occur otherwise the
Airport would be without ATM services to the customers. Because the term of the
Item No. 2 . G .
City Council Staff Report
October 1, 2008-- Page 2
Assignment of PDNB ATM Agreement to US Bank
current License Agreement expires on January 3, 2009, staff will proceed with a
Request for Proposal and secure a new longer term arrangement with an ATM provider.
FISCAL IMPACT:
The terms of the existing agreement will remain in effect and this requires the provider to
pay the Airport $1.35 per transaction based on a maximum $2.25 per customer
transaction fee. During this same period last year there were 4,722 ATM transactions.
Last year the City received $1.25 per transaction for a total of $5,902.50 for this three
month period.
Thomas Nolan,
Executive Director, Airport
David H. Ready, Hager
Attachment:
Draft Consent to Assignment
Draft
CONSENT TO ASSIGNMENT
CITY OF PALM SPRINGS
THIS CONSENT TO ASSIGNMENT (thus "Consent") is made and entered into as of the date set
forth below, by City of Palm Springs ("Customer").
RECITALS:
A. Palm Desert National Bank, a national banking association ("Assignor"), and Customer
have executed that certain License Agreement for Automated Teller Machine (Palm Springs
International Airport), dated February 21, 2006 and as may be amended from time to time (the
"Agreement").
B. Assignor and U.S. Bank National Association, a national banking association
("Assignee"), have executed that certain Asset Purchase and Sale Agreement, dated August 5, 2008 (the
"Asset Purchase Agreement").
C. In accordance with the terms and conditions set forth in the Asset Purchase Agreement:
(i) Assignor has agreed to sell, assign and transfer, and Assignee has agreed to buy, acquire and assume,
certain of Assignor's assets and liabilities, including all of Assignor's right, title and interest in and to the
Agreement (the "Assignment and_Assumotion"); and (ii) the Assignment and Assumption shall be
effective as of the closing of the transactions set forth in the Asset Purchase Agreement (Ate "Effective
Date").
D. Customer desires to consent to the Assignment and Assumption upon the terms and
conditions set forth in this Consent.
CONSENT:
NOW, TBEREFORE, for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Customer hereby agrees as follows:
I. Consent to Assipmrient. In accordance with the terms and conditions set forth in the
Agreement, Customer hereby consents and agrees to the assignment and transfer to Assignee of: (a) all of
Assignor's right, title and interest in and to the Agreement (including all of Assignor's rights and
liabilities thereunder) upon the )effective Date in accordance with the terms of the Asset Purchase
Agreement; and (b) all of Assignor's rights and privileges to draft or debit any and all accounts of
Customer that are maintained at Assignor for the purpose of providing security for the transactions and
arrangements set forth in the Agreement, including, without limitation, Assignor's rights and privileges
under any existing pic-authorized bank draft or electronic funds transfer arrangements between Assignor
and Customer.
2. Limitation of Consent. This Consent shall not be deemed to be a consent to any further
or subsequent assignment of the Agreement, and any further assignment of the Agreement shall require
the prior written consent of Customer in accordance with the terms and conditions set forth in the
Agreement.
3. Release. Customer hereby (a) releases and discharges Assignor from any and all
obligations and liabilities arising under the Agreement after the Effective Date and (b) agrees to look
solely to Assignee for payment and performance of any and all obligations and liabilities under the
Agreement arising after the Effective Date. Nothing set forth herein shall be deemed to extinguish, limit,
or otherwise modify, Assignor's liability for any obligation or liability under the Agreement arising prior
to the Effective Date.
(si;nature page follows)
IN WITNESS WHEREOF, Customer has executed this Consent as of the date set forth below.
Dated: , 2008. CITY OF PALM SPRINGS
By:
Name-
Title-
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