DEPARTMENT: Convention & Sports Facilities
DEPARTMENT HEAD: Michael J. Sawaya
COUNCIL DISTRICTS IMPACTED: Council District 2
SUBJECT:
Extension and Amendment of the Alamodome ATM License Agreement with CardTronics USA, Inc.
SUMMARY:
This Ordinance authorizes an Extension and Second Amendment of the Alamodome Automated Teller Machine (ATM) License Agreement with CardTronics USA, Inc. for the placement of 10 ATMs at the Alamodome for a renewal period of one year through September 30, 2014, with four additional one-year renewal periods, with estimated revenue to the City of $21,227.00 over the renewal period.
BACKGROUND INFORMATION:
Ordinance No. 2010-10-21-0919, approved October 21, 2010, authorized an Alamodome ATM License Agreement with Access to Money, Inc. for an initial term of three (3) years with one five (5)-year renewal option. Access to Money, Inc. was selected after a Request for Proposals (RFP) process in July 2010. In August 2011 Access to Money, Inc. was subsequently acquired by Cardtronics USA, Inc., the world's largest retail ATM services provider.
Key terms of the ATM License Agreement are as follows:
1. ATMs: Currently, CardTronics provides 12 ATMs, but proposes to remove two under-performing ATMs, leaving 10 remaining.
2. Term: Currently, there is a five-year renewal option provided for in the agreement, which is being restructured to five, one-year renewal options to provide both the City and Cardtronics additional flexibility, if necessary.
3. Transaction Fees: CardTronics currently charges a transaction fee of $2.50 on all withdrawal transactions. CardTronics has proposed an increase to $2.75, which is still lower than other local venues, including the AT&T Center, Freeman Coliseum, Nelson W. Wolff Stadium, and Toyota Field. Transfers, balance inquiries, and cancelled transactions are not assessed transaction fees.
4. City Revenue: City currently receives $1.50 of each transaction fee, or...
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