Explanation
BACKGROUND:
On October 3, 2012, the Columbus City Treasurer's Office issued a request for proposal for various banking services, among which was merchant-processing services.
Huntington Merchant Services was awarded the contract for merchant processing. On May 6, 2013, Columbus City Council authorized contracts and expenditures for the first year of banking services, for the period of June 1, 2013, through May 31, 2014. On February 14, 2022, Ordinance 0374-2022 was passed by Columbus City Council, which authorized the tenth year of a ten-year renewal of banking services with Huntington Merchant Services for the period from June 1, 2022, through May 31, 2023.
The City Treasurer’s Office, in collaboration with the City Auditor’s Office and the Department of Finance and Management, developed a banking RFP that expanded services beyond traditional banking to include gateway services for on-line payments.
Gateway services, which support the City’s on-line payment infrastructure, are currently under contract until March 1, 2026, subject to annual appropriation and Council approval. The award of merchant-processing services included gateway services and, as a result, more time for the transition to the new banking partner is needed. Huntington Merchant Services agreed to extend the current terms and conditions of the contract awarded in 2013 for a one-year modification from May 31, 2023, to May 31, 2024, with a one-year renewal option.
On February 26, 2024, Columbus City Council authorized the City Treasurer’s Office to exercise the one-year renewal option and extend the contract term through May 31, 2025, with passage of ordinance 0484-2024.
On March 3, 2025, Columbus City Council authorized the City Treasurer to modify its contract for banking services with Huntington Merchant Services and to authorize the expenditure of $725,000.00 with the passage of Ordinance 0219-2025.
On April 21, 2025, Columbus City Council passed Ordinance 0843-2025, authorizing a final contract extension through March 1, 2026, to align with the City’s gateway contract and allow additional time to complete the transition to JP Morgan Chase, the City’s new banking partner.
While most merchants have transitioned to the new provider, several City departments-including the Department of Recreation and Parks, the Department of Public Utilities, the Department of Public Safety, and the Department of Building and Zoning Services-continue to rely on Huntington Merchant Services to process credit card payments. The use of these services has exceeded prior estimates and the agencies now require additional funds to cover merchant-processing fees during the remainder of the transition.
The City Treasurer now requests Columbus City Council to authorize a modification to the Huntington Merchant Services contract and add funding of $985,000.00 on behalf of the departments utilizing Huntington Merchant Services. The contract terms remain consistent with those established through the original competitive RFP process.
Emergency designation is requested to provide funding as soon as possible so that these agencies may pay for services and the public’s use of credit cards is uninterrupted.
FISCAL IMPACT:
Funds for these expenditures are budgeted and available within the 2025 operating budgets of the impacted departments.
Contract Compliance: Huntington Merchant Services, 113328074, in process.
Title
To authorize the City Treasurer to modify its contract for banking services with Huntington Merchant Services, L.L.C.; to authorize the expenditure of $985,000.00; and to declare an emergency. ($985,000.00)
Body
WHEREAS, the City Treasurer proposed the award of contracts for banking services as provided for in an RFP issued on October 3, 2012, for which the Columbus City Council authorized the contract and expenditures for merchant processing to Huntington Merchant Services for the first year on May 6, 2013; and
WHEREAS, contracts for the tenth year of a ten-year contract for banking services were authorized by Columbus City Council for the period of June 1, 2022, through May 31, 2023, on February 14, 2022, Ordinance 0374-2022; and
WHEREAS, City Council authorized the Treasurer’s Office to extend its contract with Huntington Merchant Services for merchant processing beyond its original ten-year term-from the end date of May 31, 2023, to May 31, 2024, with an option for a one-year renewal-by passage of Ordinance 2580-2022; and
WHEREAS, City Council authorized the Treasurer’s Office to exercise its option to renew the contract with Huntington Merchant Services, extend its term to May 31, 2025, and add funding on behalf of multiple City agencies with passage of Ordinance 0484-2024 on February 26, 2024; and
WHEREAS, on March 3, 2025, Columbus City Council authorized the City Treasurer to modify its contract with Huntington Merchant Services and authorize the expenditure of $725,000.00 with passage of Ordinance 0219-2025 on behalf of the Departments of Building & Zoning Services and Public Utilities; and
WHEREAS, City Council authorized a further extension through March 1, 2026, with passage of Ordinance 0843-2025 on April 21, 2025, to ensure all merchants have time to transition to the City’s new banking partner; and
WHEREAS, the Department of Recreation and Parks, the Department of Public Utilities, the Department of Public Safety, and the Department of Building and Zoning Services continue to utilize Huntington Merchant Services and require additional funding to cover merchant-processing fees for the remainder of the contract period; and
WHEREAS, the City Treasurer seeks authorization to modify the contract and add $985,000.00 in funding to ensure uninterrupted service and financial continuity for these departments; and
WHEREAS, an emergency exists in the usual daily operation of these divisions in that it is immediately necessary to authorize this contract modification and expenditure to ensure continuity of credit-card acceptance and uninterrupted business operations, 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 Treasurer is hereby authorized to modify the existing contract with Huntington Merchant Services for the provision of merchant processing services through March 1, 2026.
SECTION 2. That the expenditure of $985,000.00 or so much thereof as may be necessary in regard to the action authorized in Sections 1, be and is hereby authorized and approved as per the accounting codes in the attachment to this ordinance.
SECTION 3. 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 4. 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 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is 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.