Explanation
Background:
This ordinance authorizes the City Auditor to enter into a contract with J.P. Morgan Chase in the amount of $520,000 for continued professional lockbox and banking services for Tax Revenue filings. The contract expired, but the need for services is still necessary. The original contract contained annual renewal options subject to the approval and appropriation of City Council. Legislation to exercise the renewal options for 2026 was delayed awaiting passage of the 2026 operating budget and the collection of compliance information from JP Morgan Chase. Since legislation was unable to be submitted before the contract expiration date, a new contract is needed to ensure the processing of returns and collection of taxes at the Lockbox is uninterrupted. Approval is also requested for reimbursement of expenses that incurred prior to the execution of this purchase order, starting March 1, 2026.
BID INFORMATION: The City of Columbus first contracted this vendor through the competitive RFP process. The contract was first initiated by Ordinance No. 0867-2021 and has been continuously in use since. This service is essential for the continuation of lockbox banking services. The Department of the Auditor, Division of income Tax requests a bid waiver to continue services with this vendor.
This company is not debarred according to the Federal excluded parties listing or prohibited from being awarded a contract according to the Auditor of State unresolved findings for recovery certified search.
Contract Compliance: The vendor contract compliance number is 000709 and is valid through 3-2-2028.
1. Amount of funds to be expended: $520,000.00
2. Reason additional funds were not unforeseen: The need for additional funds was known at the time of the initial contract and this legislation authorizes funding to cover a continuation of the services for 2026.
3. Reason other procurement processes were not used: This is a continuation of current services with the current vendor who is also contracted with the City Treasurer for the lockbox and banking services.
4. How cost was determined: The renewal is based on estimated requirements for 2026 rates established in the existing contract.
Fiscal Impact:
This ordinance authorizes an expenditure of $520,000.00 from the Department of the City Auditor, Division of Income Tax, General Operating Budget. Funds were specifically budgeted for this contract.
Emergency designation: This lockbox service manages the intake of City tax returns and processes revenue deposits. The returns are digitized and integrated with the City's tax revenue system. The current contract expired on February 28, 2026, and a new one is sought to continue uninterrupted services. An emergency designation is requested to prevent service interruptions in processing City tax returns and to maintain the cash flow from revenue deposits that are crucial for providing City services.
Title
To authorize the City Auditor to enter into a service contract with J.P Morgan Chase to provide lockbox and banking services for Income Tax Revenue filings for the Division of Income Tax; to authorize the expenditure of $520,000.00 from the General Fund; to waive the competitive bidding provisions of the Columbus City Code; and to declare an emergency. ($520,000.00)
Body
WHEREAS, Ordinance No. 0867-2021, passed by the Columbus City Council on April 19, 2021, authorized the Department of the City Auditor, Division of Income Tax, to enter into a contract with J.P. Morgan Chase for lockbox and banking services for five years and eight possible renewals; and
WHEREAS, the initial contract was modified to extend the terms for one-year intervals with Legislation No. 0372 -2024 and 0431-2025 through 2-28-2026; and
WHEREAS, the Depository Commission and Treasury Investment Board approved this account and service on April 27, 2022; and
WHEREAS, the current contract ended Feb 28, 2026; and
WHEREAS, this ordinance seeks authority for a new contract for professional and lockbox banking services for the continuation of services; and
WHEREAS, it is in the best interest of the City of Columbus to waive the competitive bidding provisions of the Columbus City Code Chapter 329 to enter into this contract; and
WHEREAS, this expenditure of $520,000.00 was budgeted for these services; and
WHEREAS, an emergency exists in the usual daily operation of the City Auditor's Office, Division of Income Tax, in that it is immediately necessary to authorize the City Auditor to enter into a contract with J.P. Morgan Chase to prevent any delays in banking and lockbox services for Income Tax revenue, all for the immediate preservation of the public health, peace, property, and safety; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the City Auditor be and hereby is authorized to enter into contract with J.P Morgan Chase for the Division of Income Tax, in the amount of $520,000.00, for continued professional lockbox and banking services for Tax Revenue filings. Reimbursement of expenses incurred prior to execution of the purchase order, starting March 1, 2026, is also authorized.
SECTION 2. That the City finds it in the best interest of the City of Columbus to waive the competitive bidding provisions of Columbus City Code Chapter 329 to enter into this contract.
SECTION 3. That the expenditure of $520,000.00 or so much thereof as may be needed, is hereby authorized in Fund 1000 (General Fund), Dept-Div 2202 (Division of Income Tax), object class 03 (Services) per the accounting codes in the attachment to this ordinance.
SECTION 4. That funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. 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 6. 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 approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.