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6.2 ATM Lease Agreement CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 06/19/2006 4:00 P.M. APPROVED FOR AGENDA SECTION ORIGINATING DEPARTMENT: NO: 6 AGENDA: BICENTENNIAL CENTER ITEM NO. 2 BY: BY: Keith Rawlings Page 1 ITEM:Resolution No. 06-6284 A resolution approving a lease with Sunflower Bank to install and maintain an automatic teller machine (ATM) in the lobby of the Salina Bicentennial Center. BACKGROUND: With the continued popularity a nd perceived necessity of comput erized banking, it is becoming increasingly common to find that patrons of public entertainment and sporting facilities expect to find the convenience of an ATM in locations where access to cash for purchases is necessary. This is the case for purchasing tickets, merchandise and c oncessions, where checks and credit cards are usually not accepted and, currently, the closest ATM is approximately six blocks away. In an effort to provide this improved service to patrons of the Bicentennial Center, staff has requested of several banks over the past several years that they consider providing the equipment necessary for at least one ATM in the Center. This was done directly as well as through the contacts we made with local banks during the presentations so liciting sponsorships to pay for needed electronic equipment, including scoreboards. Of the contacts made, only Sunflower Bank has expressed an interest and willingness to pursue this project. FISCAL NOTE: There is no negative financial impact on the City or the Bicentennial Center, as all costs of installation and maintenance are borne by Sunflower Bank. In fact, Article 6 of the attached lease provides for 50% revenue sharing during months where a profit is realized, after recovering their actual expenses associated with this machine. During months where a profit is not made, Sunflower Bank will absorb any loss. Also, it is conceivable that purchasing in the building will increase due to the availability of this machine for persons who did not make adeq uate financial arrangements before attending an event in the Center. RECOMMENDED ACTION: Staff has carefully reviewed the attached lease and believes that it clearly provides for all concerns of the Center and is in the best interest of the both the Bicentennial Center and the City of Salina to provide ATM services for an initial term of ten (10) years, as outlined in this document. Therefore, it is recommended that the City Commission adopt Resolution No. 06-6284 and sign the attached lease agreement with Sunflower Bank.