Explanation
The Division of Income Tax has previously contracted with The Huntington National Bank for the purpose of providing certain lockbox services related to the processing of income tax remittances.
The lockbox contract provides for the direct deposit of definite income tax receipts. The City benefits from greater investment earnings as tax receipts are deposited in a more timely manner. This contract relieves the Division's employees from the time consuming task of opening and sorting a large volume of mail. Additionally, the Treasurer's Office is relieved of the task of encoding a large volume of checks during peak tax periods occurring at the end of each quarter and on April 15th.
On September 27, 2004, Council passed Ordinance No. 1577-2004 to modify and increase Contract No. CT-17228 to expand banking services for the inclusion of employer withholding remittances. Prior to this action, the contact merely encompassed the processing of remittances for individual and tax entity accounts referred to as direct deposit accounts.
Item No. 13 of the original contract CT-17228 as modified provides for the option to renew for nine (9) one (1) year periods. At this time, the Division is exercising its option to renew for the ninth and final year of the contract.
FISCAL IMPACT
The funds for this modification are included in the Division of Income Tax budget for 2005 in the amount of $195,000.00.
Title
To authorize and direct the City Auditor to modify and extend Contract No. CT-17228 with The Huntington National Bank for certain banking services to be performed for the City Auditor, Division of Income Tax through February 28, 2006; to authorize the expenditure of $195,000.00 from the general fund; and to declare an emergency ($195,000.00).
Body
WHEREAS, the Division of Income Tax originally entered into Contract No. 17228 on February 29, 1996; and
WHEREAS, Contract No. 17228 was modified and increased on September 27, 2004 to include the processing of employer withholding remittances and direct deposit remittances; and
WHEREAS, Contract No. 17228 provides an option for the City to renew its contract with The Huntington National Bank for nine (9) one (1) year terms; and
WHEREAS, the Division of Income Tax desires the City Auditor to exercise the annual renewal option listed as Item No. 13 of the original agreement for the ninth and final year of the renewal period through February 28, 2006, and
WHEREAS, an emergency exists in the usual daily operation of the Income Tax Division in that it is necessary to ensure uninterrupted services by modifying and extending CT 17228 with the Huntington National Bank thereby preserving 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 Auditor be and is hereby authorized and directed to modify and extend Contract No. CT17228 for certain "lockbox" services for the processing of income tax remittances through February 28, 2006.
Section 2. That the expenditure of $195 ,000.00 or so much thereof as may be necessary is hereby authorized from the General Fund 010, Auditor's Office/Income Tax Division 22-02, OCA Code 220541, PCA Code 22104, Object Level Three 3348.
Section 3. That for the reasons stated in the preamble, which is hereby made a part of, this ordinance is hereby declared to be emergency measure and shall be in force and after its passage and approval; by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.