Explanation
The Division of Income Tax has previously contracted with the JP Morgan Chase Bank, N.A. 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 known income tax receipts. The City benefits from greater investment earnings as less processing time is required prior to deposit of receipts. This contract relieves the Division of Income Tax of the time consuming task of opening and sorting a large volume of mail during peak tax filing and payment periods, as well as reducing the workload of the City Treasurer's staff during those times.
Item No. 14 of the original contract EL006394 as modified provides for the option to renew for six (6) one (1) year periods. At this time, the Division is exercising its option to renew for the fifth of the six renewal periods of the contract. JP Morgan Chase Bank, N.A contract compliance number is 134994650-001 expires 09-09-2012.
FISCAL IMPACT
The funds for this modification are included in the Division of Income Tax budget for 2011 in the amount of $130,000.00.
Title
To authorize and direct the City Auditor to modify and extend a contract with the JP Morgan Chase Bank, N.A. for certain banking services to be performed for the City Auditor, Division of Income Tax through February 29, 2012; to authorize the expenditure of $130,000.00 from the general fund; and to declare an emergency. ($130,000.00)
Body
WHEREAS, the Division of Income Tax originally entered into a contract with the JP Morgan Chase Bank, N.A. on March 1, 2006; and
WHEREAS, Contract No. EL006394 provides an option for the City to renew its contract with the JP Morgan Chase Bank, N.A. for six (6) 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. 14 of the original agreement for the fifth of six renewal periods through February 29, 2012; 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 the contract with JP Morgan Chase Bank, N.A. 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 the contract with JP Morgan Chase Bank, N.A. for certain "lockbox" services for the processing of income tax remittances through February 29, 2012.
Section 2. That the expenditure of $130 ,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.