MEMORANDUM

TO: Mayor & Members of Council

FROM: Allan Seabrooke, Director, Strategic Services

DATE: November 28, 2006

SUBJECT: Automated Teller Machines – Community Centres

Project 014-R-04 – Contract Extension

In September 2004, automated teller machines were installed at Thornhill, Centennial, Milliken Mills and Angus Glen Community Centres for a two year contract with Inkas Finance Corporation.

The contract expired on October 31, 2006, with an option to renew for an additional three years. The original contract stated that the commission receivable is $1 per transaction.

Inkas paid for all costs of installation, including electrical outlets. While revenue of $6,440 per year was received by the Town of Markham, the decision to install the machines initially was predominantly as a service to the patrons at the Community Centres. The records indicate that from August 1, 2005, to July 31, 2006, the actual transactions were only 6,440.

During negotiations for the three year extension from November 1, 2007 to October 1, 2010, Inkas stated that their company was not prepared to extend the contract with the current commission arrangements. The company had sustained losses given the low number of transactions. It was then agreed that commission would only occur after 400 transactions per month at each location. To facilitate a potential increase in the number of transactions, the company has agreed to installing additional signage to try and improve the visibility of the ATM’s.

With this in mind, the contract was eventually extended for only one year from November 1, 2006 to October 31, 2007, instead of three years with a smaller commission only payable after transactions exceed 400 per month. The number of transactions will then be reviewed to see whether they increase by October 2007.

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The decision to extend the contract without commission, until after 400 transactions per month, is more to provide a service to our residents than as a revenue generating initiative. The contractor has provided excellent service and most important there have been no cash collection or security issues at our Community Centres with their armed courier service.

Q:\Strategic Services\Members\Allan Seabrooke\MEMO - ATM Nov 28 06.doc