DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICT(S) IMPACTED: Citywide
SUBJECT:
Amendment and Extension to Automated Teller Machine (ATM) License Agreement
SUMMARY:
This ordinance approves amendments and a renewal to the Automated Teller Machine (ATM) contract with Cardtronics USA, Inc. to (1) increase the transaction fee for withdrawal transactions, (2) revise the method of calculation of the License Fee to a flat rate percentage on a tiered structure based upon number of withdrawal transactions, (3) exercise a two (2) year renewal term beginning January 1, 2020 through December 31, 2022 with two (2) successive one (1) year renewal terms, and (4) add a limitation of liability clause, with estimated revenue to the City in the amount of $64,000.00 annually, or $256,000.00 over the 2-year renewal term with both successive one (1) year renewals.
BACKGROUND INFORMATION:
Ordinance 2010-10-21-0919 authorized a licensee agreement with Cardtronics USA, Inc. beginning November 1, 2010 through September 30, 2013. Ordinance 2013-11-21-0819, authorized a 5-year renewal term through September 30, 2014 and revisions to the number of ATMs and transaction fees. Ordinance 2014-06-19-0444, authorized provisions of ATM services at additional locations for a five-year period ending September 30, 2019 with one additional five-year term. A 90-day extension was issued to Cardtronics USA, Inc., and expired on December 31, 2019. A 30-day extension was issued to Cardtronics USA, Inc., and expires on January 31, 2020.
The City and Cardtronics USA, Inc. have negotiated and agreed to the supplemental terms and conditions set forth in this Amendment. Key terms of this Amendment include (1) increase the Transaction Fee from $2.75 to $3.00 for withdrawal transactions, (2) revise the method of calculation of the License Fee to a flat rate percentage on a tiered structure based upon number of withdrawal transactions (3) exercise a two (2) year renewal term beg...
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