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 was made 17 months to better align the annual term with the city’s budget.
1.1 Amount of additional funds to be expended: _________$ 10,000.00
Cost summary:
Original Contract, Ordinance #1689-2023 $ 15,000.00
Modification #1, Ordinance #3278-2023 $ 41,000.00
Modification #2, Ordinance #0029-2024 $ 10,000.00
Modification/Renewal #3, Ordinance #0287-2025 $ 8,000.00
Modification #4, Ordinance #2027-2025 $ 34,100.00
Modification #5, (This Ordinance) $ 10,000.00
Estimated Contract Total: $ 118,100.00
1.2 Reasons additional goods/services could not be foreseen:
The original contract awarded to Fifth Third was for both investment safekeeping and smart safe banking services. Ordinance 1689-2023 was allocated to investment safekeeping. Contract language specific to the smart safe have recently been finalized and allowed any city agency to adopt smart safe banking services, when the Treasurer’s Office is ready to deploy it. The use of smart safe was anticipated in concept but contract terms and conditions had not been finalized at the time of original contract execution.
The Treasurer’s Office recently finalized pricing with Fifth Third Bank for the concentration account and other accounts necessary to support the city’s smart safe operations. These accounts will receive daily cash deposits from smart safes located at the Department of Public Utilities/Columbus Water and Power, the Department of Public Service Parking Division, the Division of Police, and the City Treasurer’s Office. These accounts are structured to provide provisional credit daily, with a cash true-up occurring upon delivery to the Fifth Third vault by Brink’s. A minimum balance will be established and maintained at Fifth Third, similar to the arrangement in place with other banks.
The need to establish and fund a minimum balance account was not known at the time of original contract execution and has since become a necessary part of implementing full smart safe operations.
1.3 Reason other procurement processes are not used:
The city conducted a competitive bidding process under RFQ023687 and awarded a ten-year contract to Fifth Third Bank for investment safekeeping and smart safe banking services. It is not in the city’s best interest to re-bid these services, as pricing was competitively established and the contract was structured to allow for agency-specific and operational expansions over time. This modification ensures continuity, cost-efficiency, and full implementation of centralized cash operations.
1.4 How cost of modification was determined:
The requested $10,000.00 is based on negotiations with Fifth Third Bank about account pricing and anticipated balances required to activate and maintain the concentration and related accounts. These accounts are critical to receiving cash deposit activity from multiple agencies and providing timely credit for city operations.
EMERGENCY DESIGNATION:
This ordinance is submitted as an emergency to ensure uninterrupted banking operations and to establish the operating account that will support the timely implementation of smart safe services citywide.
FISCAL IMPACT:
Funds for these expenditures are available from the various funds within the city.
Contract Compliance: Fifth Third Bank, 310676865, expiration 5/12/2027.
Title
To authorize the City Treasurer to modify its contract for banking services with Fifth Third Bank; to authorize the expenditure of $10,000.00 from the City Treasurer’s budget; and to declare an emergency. ($10,000.00)
Body
WHERE AS, 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 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 to the contract for implementation of smart safe services for the City Treasurer and the Division of Parking with the passage of Ordinance 3278-2023 on December 4, 2023; and
WHEREAS, Columbus City Council further authorized additional funding of $10,000.00 for implementation of smart safe services for the Department of Public Utilities with the passage of Ordinance 0029-2024 on January 10, 2024; and
WHEREAS, Columbus City Council authorized the renewal of the contract with Fifth Third Bank for the period April 1, 2025, through March 31, 2026, and approved $8,000.00 in funding on behalf of the City Treasurer for investment safekeeping and smart safe banking services with the passage of Ordinance 0287-2025 on February 10, 2025; and
WHEREAS, Columbus City Council authorized the modification of the contract with Fifth Third Bank for the period April 1, 2025, through March 31, 2026, and approved $34,100.00 in funding on behalf of the City Treasurer and Department of Public Utilities for investment safekeeping and smart safe banking services with the passage of Ordinance 2027-2025 on July 28, 2025; and
WHEREAS, the Treasurer’s Office now wishes to modify the existing contract with Fifth Third Bank to authorize an additional $10,000.00 to support the creation of a minimum balance concentration account to receive deposits from smart safes deployed at DPU/CWP, Parking, Police, and the Treasurer’s Office; 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 current contract with Fifth Third Bank for the provision of smart safe banking services and to authorize related expenditures to support departmental operations and financial processing, to ensure uninterrupted banking operations and to establish the operating account that will support the timely implementation of smart safe services citywide, all for the immediate preservation of the public health, peace, property, safety and welfare; 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 Fifth Third Bank for the provision of various banking services for the City of Columbus and to authorize the expenditure of $10,000.00 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.