Explanation
Background:
This ordinance authorizes the City Auditor to modify a contract with Fast LP for Gentax software and professional services related to the Income Tax Revenue System. Ordinance No. 0867-2021, passed by the Columbus City Council on April 19, 2021, authorized the City Auditor to enter into contract with Fast LP for the purchase and implementation of GENTAX software and professional services for the collection and recording of tax revenue. The initial contract term covered three years and contained the option to renew annually after the initial term of 3 years expired, subject to annual appropriation and approval by City Council. A pricing schedule for seven years though Jun 17, 2028 was included as part of the RFP and contract.
This modification is necessary to add additional funding, to extend the term of the contract an additional year, and to modify the contract to include Simple Message Service (SMS) option in order to provide enhanced services and communication to the City’s constituents. SMS is the mobile phone protocol that almost all phones use to send text messages. Fast LP provides its SMS Service without additional on-site interface development needed. FAST incurs costs for each SMS message sent and received by the Service and has offered competitive pricing to the City based upon a usage schedule of a flat rate of $500 per month, plus a per message rate based upon number of messages sent or received. The City may opt out of the service with 30 days written notice.
This ordinance authorizes the first modification of the contract and is being submitted in accordance with the relevant provision of Chapter 329 of the City Code.
1. Amount of additional funds: $2,662,000.00. Total contract amount including this modification is 29,262,000.00.
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 maintenance and support services.
3. Why it would not be in the city's best interests to have the additional contract requirements awarded through other procurement processes specified in this chapter: The original contract was awarded after an extensive Request for Proposal process was conducted and FAST was selected as the highest rated offeror. Included in the evaluation was a total cost of ownership for a period of three years of implementation and five years afterward. Renewals were anticipated to reach a minimum of eight years of system life. The implementation of the product and transition to another would take a minimum of two years and it is highly unlikely that the City would be able to procure and implement a lower rated solution for less than seven times the cost of this renewal based on the previous RFP responses and total cost of ownership calculations. The SMS option is an additional feature designed to augment the implemented functionality and improve service and communication options for taxpayers.
4. How cost was determined: The cost is based on the Milestone Payment Schedule for year four (4) established in the existing contract.
Contract Compliance: The vendor contract compliance number is 031630 and is valid through May 29, 2026.
Fiscal Impact:
This ordinance authorized an expenditure of $2,662,000 from the General Operating Budget. Funds were specifically budgeted for this contract.
Title
To authorize the City Auditor to modify and extend the agreement with Fast LP for one year to maintain and support our GenTax revenue management system for the Division of Income Tax and to add additional messaging services; to authorize the expenditure of $2,662,000.00 from the General Fund; and to declare an emergency. ($2,662,000.00).
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 Fast LP for the implementation and support of GenTax; and
WHEREAS, the original contract was for three (3) years from May 4, 2021, through June 17, 2024, with pricing and terms for four (4) additional one-year terms based upon mutual agreement of the parties, budgeted funds, and approval by City Council; and
WHEREAS, this ordinance seeks authority to modify the contract to add additional funding and for the first of four (4) annual renewal provisions provided for within the original contract; and
WHEREAS, this City Auditor wishes to modify the contract to add SMS texting option for increasing services and communication with taxpayers and other site users; and
WHEREAS, an emergency exists in the usual daily operations of the City Auditor's Office in that it is immediately necessary to authorize the City Auditor to modify a contract with Fast LP for Gentax software and professional services for the Income Tax Revenue System to ensure uninterrupted operations, avoiding any delays in receiving and processing City revenue and maintaining cash flow for essential City services, 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 modify a contract with Fast LP for Gentax software and professional services for the Division of Income Tax to increase funding in an amount up to $2,662,000.00 to continue services without interruption, to add additional messaging services, and to extend the contract end date to June 17, 2025.
SECTION 2. That the expenditure of $2,662,000.00 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 3. 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 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 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.