Explanation
BACKGROUND:
On December 12, 2022, the Columbus City Treasurer's Office, in collaboration with the Department of Finance and Management and the City Auditor’s Office, issued a request for proposal, RFQ023687, for various banking services. An Evaluation Committee comprised of five representatives from the City Treasurer’s Office, Department of Public Utilities, Department of Finance and Management, Division of Income Tax, and the City Auditor’s Office received and reviewed proposals from six (6) banks. On May 12, 2023, a joint meeting of the Columbus Depository Commission and Treasury Investment Board was held at which the Treasurer presented the Evaluation Committee’s rankings of offerors. The Treasurer recommended, and the Depository Commission and Treasury Investment Board approved, subject to successful negotiation and the approval of City Council, the award of banking services to specific banks.
All such banks are currently eligible depositories of the City of Columbus, pursuant to Section 321.04 of the Columbus City Codes. The contracts are for a period of ten (10) years, beginning September 1, 2023, through August 31, 2033, subject to annual appropriations and approval of contracts by the Columbus City Council.
The initial contract term of 17 months aligned the annual term to roughly coincide with the City’s budget cycle.
1.1 Amount of additional funds to be expended: $680,000.00
Cost summary:
Original Contract, Ordinance #1689-2023 $ 10,000.00
Modification #1, Ordinance #0518-2024 $1,156,000.00
Modification #2, Ordinance #2880-2024 $ 466,000.00
Modification/Renewal #3, Ordinance #0218-2025 $1,496,000.00
Modification #4, Ordinance #0531-2025 $1,105,000.00
Modification #5, (This Ordinance) $ 680,000.00
Estimated Contract Total: $4,913,000.00
1.2 Reasons additional goods/services could not be foreseen:
While the original contract with JP Morgan Chase anticipated that City agencies would transition to the vendor’s banking services over time, the specific timing and volume of agency onboarding could not be fully determined at the time the contract was awarded. The contract was structured with the expectation that usage would grow as more agencies began utilizing services such as merchant processing and lockbox operations. As these services became more integrated into agency operations, the volume of transactions increased, thereby necessitating additional funding. The need for this modification is a result of increased volume of services, which was anticipated generally but could not be forecasted precisely.
1.3 Reason other procurement processes are not used:
The original bid process for RFQ023687 resulted in the award of a ten-year contract to JP Morgan Chase, subject to annual appropriations and Council approval. JP Morgan Chase was selected to provide the full suite of banking services required by the City, including merchant processing and lockbox operations. It would not be in the City’s best interest to pursue alternative procurement methods for these services, as the pricing and service framework was competitively established during the initial bid process. Modifying the existing contract ensures continuity, efficiency, and consistency in service delivery.
1.4 How cost of modification was determined:
The pricing for services under this contract was established during the original bid process and has remained consistent. Increases in funding are based on actual and projected usage by individual City agencies. Each agency determined its funding request according to its service volumes, which continue to grow as the banking services become more integrated with their daily operations. The total amount of this modification, $680,000.00, reflects these agency assessments and corresponds to the pricing structure agreed upon in the initial contract.
EMERGENCY DESIGNATION:
This ordinance is submitted as an emergency to ensure that the City agencies have sufficient funds to pay for the banking services they are receiving.
FISCAL IMPACT:
Funds for these expenditures are budgeted and available within the various funds’ 2025 budget appropriations.
Contract Compliance: JP Morgan Chase Bank, 134994650, expiration 5/11/2025.
Title
To authorize the City Treasurer to modify its contract for banking services with JP Morgan Chase Bank; to authorize the expenditure of $680,000.00 from various funds within the City; and to declare an emergency. ($680,000.00)
Body
WHEREAS, the City Treasurer proposed the award of contracts for banking services as provided for in RFQ023687 issued on December 12, 2022, for which the Columbus Depository Commission, at a meeting held on May 12, 2023, recommended the award of banking services, subject to approval by Columbus City Council; and
WHEREAS, the contract for banking services for the period of September 1, 2023, through March 31, 2025, and related expenditures was authorized by Columbus City Council with the passage of Ordinance 1689-2023 on July 17, 2023; and
WHEREAS, Columbus City Council authorized a modification of the contract for banking services for the period of September 1, 2023, through March 31, 2025, with the passage of Ordinance 0518-2024 on March 18, 2024, which increased the contract in the amount of $1,156,000.00; and
WHEREAS, Columbus City Council authorized a modification of the contract for banking services for the period of September 1, 2023, through March 31, 2025, with the passage of Ordinance 2880-2024 on November 4, 2024, which increased the contract in the amount of $466,000.00; and
WHEREAS, Columbus City Council authorized the renewal of the contract with JP Morgan Chase Bank for the period April 1, 2025, through March 31, 2026, and approved $1,496,000.00 in funding on behalf of various City agencies receiving services under the contract with the passage of Ordinance 0218-2025 on February 10, 2025; and
WHEREAS, Columbus City Council authorized a modification of the contract for banking services for the period of April 1, 2025, through March 31, 2026, with the passage of Ordinance 0531-2025 on March 10, 2025, which increased the contract in the amount of $1,105,000.00; and
WHEREAS, the City Treasurer now wishes to modify the existing contract with JP Morgan Chase to authorize additional funding of $680,000.00 on behalf of City agencies receiving services under the contract; and
WHEREAS, an emergency exists in the usual daily operation of the Office of the Treasurer in that it is immediately necessary to authorize the Treasurer to modify its contract with JP Morgan Chase Bank for the provision of various banking services and authorize the expenditures that are vital for the daily operation of normal business activities of the City of Columbus, all for the immediate preservation of the public health, peace, property, safety and welfare; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Treasurer is hereby authorized to modify its contract with JP Morgan Chase Bank for the provision of various banking services for the City of Columbus and to authorize the expenditure of $680,000.00 or so much thereof as may be necessary in object class 03 contractual services, per the accounting codes in the attachment to this ordinance.
SECTION 2. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 3. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.