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Consent   1.B.
Regular City Council Meeting
Meeting Date:
05/23/2011
TITLE
Commercial Terminal Building Lease with HK Partnership and ATM Sales and Solutions for Automated Teller Machines
PRESENTED BY:
Tom Binford
Department:
Airport
Presentation:

PROBLEM/ISSUE STATEMENT

In 1995, the City entered into an ATM Lease with First Interstate Bank to have an ATM put in place at the Airport. Prior to the placement of the ATM, staff constantly received complaints from the traveling public about not being able to use an ATM to get money before leaving on a trip once they arrived at the Airport. Until 9-11, the one ATM was adequate, as people were allowed through screening to go up on the concourse to use the ATM. Since that time, only ticketed passengers are allowed through screening, and once a traveler leaves the concourse, the traveler cannot easily get back to go to the ATM on the concourse level. First Interstate Bank approached staff and offered to place a second ATM in the lobby area of the Terminal Building. In 2002, the City entered into a new ATM Lease that permitted First Interstate Bank to place a second ATM in the Terminal Building. The term of this Lease was for three years, and then would automatically renew year-by-year until terminated by either party.

First Interstate Bank has begun contracting with third parties to provide its ATMs at various locations, rather than owning, operating, and maintaining its own ATM equipment. First Interstate Bank approached staff about assigning its ATM Lease to HK Partnership and ATM Sales and Solutions, the ATM providers the Bank currently works with. After reviewing the 2002 Lease, staff determined it would be better to terminate the 2002 Lease with First Interstate Bank and replace it with a new lease with HK Partnership and ATM Sales and Solutions to incorporate updated language regarding Terminal Building use, insurance requirements, advertising, etc. The new Lease will allow First Interstate Bank to continue to have its nameplate on the ATMs, per its agreement with HK Partnership and ATM Sales and Solutions. Additionally, under the new Lease, HK Partnership and ATM Sales and Solutions propose to replace the existing ATM equipment with updated equipment. The initial term of the new Lease will commence June 1, 2011 and terminate on May 31, 2014, and will automatically renew on each anniversary date for an additional one-year period.

ALTERNATIVES ANALYZED

The City Council may:
  • Approve the Commercial Terminal Building Lease for ATMs with HK Partnership and ATM Sales and Solutions; or
  • Not approve the Commercial Terminal Building Lease for ATMs with HK Partnership and ATM Sales and Solutions.

FINANCIAL IMPACT

Although the new Lease has provisions whereby the City would be compensated if enough ATM transactions occur each month, based on past ATM transactional history, staff does not anticipate receiving much, if any, revenue from the placement of these ATMs. Having the ATMs located on each level of the Terminal Building is primarily a customer convenience.

RECOMMENDATION

Staff recommends the City Council approve the Commercial Terminal Building Lease with HK Partnership and ATM Sales and Solutions for the placement, operation, and service of two ATMs in the Airport Terminal Building.

APPROVED BY CITY ADMINISTRATOR

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