Explanation
The City of Columbus seeks to implement a citywide Zero Trust Network (ZTN) to strengthen cybersecurity and modernize its IT infrastructure. This ordinance authorizes the Department of Technology to procure equipment related to the implementation of the Zero Trust Network (ZTN).
The Zero Trust Network (ZTN) employs micro-segmentation, continuous identity verification, and other advanced security measures to reduce cyber risks by limiting access and exposure, following the principle of “never trust, always verify.” This initiative addresses industry best practices and the City’s IT Infrastructure and Optimization Initiative, ensuring all current and future City buildings connected to the network meet ZTN standards. Implementation will start with the City’s core network and largest facilities, expanding to other buildings over time.
All related purchase orders for hardware, software, and technology needs will be issued from Universal Term Contracts previously established by the City of Columbus, Purchasing Office.
CDW Government LLC Vendor/CC No. 034427, expires May 22, 2027
PA005605 - Upgrade Network & VoIP Communications, expires January 31, 2026
FISCAL IMPACT
An amendment to the 2024 Capital Improvement Budget is necessary. This ordinance requires a certification against the General Fund 1000, Income Tax Set Aside Subfund 100099. The funds will be reimbursed upon receipt of funds via the sale of bonds, notes, other financing arrangement are completed.
EMERGENCY DESIGNATION
Emergency passage is requested to enable timely implementation of this critical network infrastructure beginning this summer, ensuring both continued network security and the ability to take advantage of favorable lease terms.
Title
To authorize the appropriation of funds within the Income Tax Set aside subfund, and the Information Services Taxable GO Bond fund ; to authorize the transfer of cash between the Income Tax Set Aside Subfund and the Information Services Taxable GO Bond fund; to authorize the expenditure of up to $23,000,000.00 within the Information Services Taxable GO Bond fund; to authorize an amendment to the 2024 Capital Improvement Budget; to authorize the Director of Finance and Management, on behalf of the Director of Technology to associate all General Budget Reservations resulting from this ordinance with the appropriate Universal Term Contract for Upgrade Boundary Network and VoIP Communication; and to declare an emergency. ($23,000,000.00)
Body
WHEREAS, the Department of Technology seeks to implement the Networking Infrastructure Enhancement project to strengthen cybersecurity and modernize IT infrastructure citywide; and
WHEREAS, this initiative is a core component of the City’s defense strategy against cyberattacks; and
WHEREAS, it is necessary to authorize an amendment to the 2024 Capital Improvement Budget for the purpose of providing sufficient spending authority for the aforementioned project expenditure; and
WHEREAS, it is necessary to certify the required funds, in the amount up to $23,000,000.00 dollars against the General Fund 1000, Income Tax Set Aside Subfund 100099; and
WHEREAS, it is necessary to authorize the appropriation and transfer of the funds in the amount up to $23,000,000.00 from the Income Tax Set Aside Subfund and the Information Services Taxable GO Bond fund; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the "Treasury Regulations") promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the construction of the project described in this ordinance (the "Project"); and
WHEREAS, the City will reimburse the General Fund 1000, Income Tax Set Aside Subfund 100099; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $23,000,000.00; and
WHEREAS, it is necessary to authorize the expenditure within the Information Services Taxable GO Bond fund; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management, in that it is immediately necessary to authorize the Director of Finance and Management, on behalf of the Director of Technology, to associate all General Budget Reservations resulting from this ordinance with the appropriate Universal Term Contract for Upgrade Boundary Network and VoIP Communication with CDW Government LLC to provide for the equipment necessary to implement the Zero Trust Network as action is needed to implement this network infrastructure both to maintain network security and to secure favorable lease terms, 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 Director of Finance and Management, on behalf of the Director of Technology, is authorized to associate all General Budget Reservations resulting from this ordinance and to establish purchase orders with the appropriate Universal Term Contract Purchase Agreement with CDW Government LLC to provide for the equipment necessary to implement the Zero Trust Network.
SECTION 2. That from the unappropriated monies and from all monies estimated to come into said funds from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2025, the sum of $23,000,000.00 is appropriated within General Fund 1000, Income Tax Set Aside Subfund 100099, in Object Class 10 Transfer Out Operating, and the Information Services Taxable GO Bond Fund, Fund 5115, in Object Class 06 Capital Outlay per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $23,000,000.00 or so much thereof as may be needed, is hereby authorized between the General Fund 1000, Income Tax Set Aside Subfund 100099, and into the Information Services Taxable GO Bond Fund, Fund 5115, per the account codes in the attachment to this ordinance.
SECTION 4. The expenditure of $23,000,000.00, or so much thereof as may be needed, is hereby authorized in Fund 5115 (Information Services Taxable GO Bond Fund) in Dept-Div 4702 (Information Services), Project P470067-100002 (Zero Trust Network), in Object Class 06 (Capital Outlay) per the account codes attached to this ordinance.
SECTION 5. That upon obtaining other funds, the City Auditor is hereby authorized and directed to repay the General Fund 1000, Income Tax Set Aside Subfund 100099 the amount transferred under Section 3.
SECTION 6. To amend the 2024 Capital Improvement Budget as follows:
Fund / Project Name (Funding Source)/ Project Number / Current Authority /Revised Authority / Difference__
5115/Zero Trust Network/(Information Services)/P470067-100002/$0/$23,000,000/$23,000,000
SECTION 7. That the City intends that this ordinance constitute an "official intent" for purposes of Section 1.150 2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $23,000,000.00 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of Treasury Regulations Section 1.150 2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
SECTION 8. 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 9. That the City Auditor is hereby authorized and directed to transfer any unencumbered balance in the project account to the unallocated balance within the same fund upon receipt of certification by the Director of the Department administering said project that the project has been completed and the monies no longer required for said project; except that no transfer shall be made from a project account by monies from more than one source.
SECTION 10. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 11. 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 12. 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.