SR-092496-6M
Contract 6531 (CCS)
6M
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Council Meeting: September 24, 1996
Santa Monica, CalIfornia
SEP 2 It '996
TO: The Mayor and CIty Counctl
FROM. CIty Staff
SUBJECT: Recommendanon to Authonze City Manager to Negotiate and Execute a Lease
Agreement for Not ATM Machme Project on the Third Street Promenade
INTRODUCTION
This Staff Repon recommends that Cny Council authonze the City Manager to negotiate and
execute a one-year lease WIth Flfst Federal Bank: of Cahfomia to allow the installation of an A 1M
machme Wlthin one of the City-owned pavIlIon buildmgs on the loud Street Promenade. The
AlM would be placed m the police kiosk located m the Pavtlion on the 1400 block of the
Promenade and would be a one-year pIlot program.
BACKGROUND
In late 1995. Bayside DIStrict Corporation (BDC) staff and representatives from First Federal Bank
began discussions regarding the placement of an automated teller (ATM) machine on the Thud
Street Promenade BOC staff viewed the proposal as an important customer-oriented service for
the Promenade The concept was brought to the BOC Land Use and Pubhc Safety Commmee in
January, 1996 and to two BOC Board meetings m January and February. 1996, where condnions
were negotiated and the proposal approved The condItions include the fact that the AlM
InstallatIon would be a one-year pdot program, With no optIon or reqUIrement to renew. There WIll
be a six-month reVIew of operatIonal issues
DISCUSSION
Upon approval by the HOC Board. staff reVlewed the ATM proposal and prepared a one year lease
for a small area (approxunately 15 square feet) witlun the pohce kiosk to accommodate the ATM
machine. The rental revenue from the machme Will range between $2400 and $4(0) for the year.
SEP 2 ,. 1996
6~1
depending on the amount of customer usage of the machme. Staff Will work WIth BDC over the
course of the one-year agreement to monitor the program. IT the pilot program proves successful,
staff will prepare a Request for Proposal (RFP) for any renewal or expansion of ATM's on the
Promenade. This process should help attract the best possible operator and highest possible
revenues for the City.
BUDGETIFINANCIAL IMPACf
Property Rental revenues WIll increase by at least $2400 dunng the one-year term of the lease,
with slightly greater revenues possible, dependmg on the number of customer transactions at the
proposed ATM. ApproXlmately $1600 of thIS revenue WIll be received m FY 1996/97 with the
balance receIved in the following fIscal year. Revenues will be recognized at Account # 01-620-
263-0??oo-0533-1 ??oo.
RECOMMENDATION
Staff recommends that CIty CounCIl authorize the City Manager to negotiate and execute a one-year
lease agreement with First Federal Bank of California for the installabon of an ATM machine on
the Thrrd Street Promenade, and increase the FY 1996/97 revenue budget estimate by $1,600 at
account no. 01-620-263-0??oo-0533-1 ??oo.
Prepared by: Jeff Mathieu, Duector of Resource Management
Howard Robinson. Real EstatelEconomlc Development Manager