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 number 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 with an expansion of the services beyond traditional banking.
Gateway services, which facilitate the City’s on-line payments are currently under contract until March 1, 2026, subject to annual appropriation and approval by Columbus City Council. The award of merchant processing services included gateway services and, as a consequence, 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 the period of the modification of a year from May 31, 2023 to May 31, 2024 with a one-year option to renew the term.
The City Treasurer now wishes to exercise the one-year option to renew the term of the agreement through May 31, 2025 and add the necessary funding on behalf of the many City agencies that offer credit cards as a method of payment to their customers.
Emergency designation is requested to provide funding as soon as possible so that the public’s use of credit cards is uninterrupted.
FISCAL IMPACT:
Funding for this ordinance is contingent on passage of the 2024 budget.
Contract Compliance: Huntington Merchant Services, 113328074, expiration 5/10/2025
Title
To authorize the City Treasurer to modify its contract for banking services with Huntington Merchant Services; to authorize the expenditure of $2,242,500.00; and to declare an emergency. ($2,242,500.00)
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 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 current end date of May 31, 2023 to May 31, 2024 with an option for a one-year renewal at the existent terms and conditions) with passage of ordinance 2580-2022 to accommodate the expansion of banking to include gateway services for on-line payments; and
WHEREAS, the City Treasurer now wishes to exercise its option to renew its contract with Huntington Merchant Services and extend its term to May 31, 2025 and add funding on behalf of the many City agencies that provide credit card payments to the public; and
WHEREAS, as an emergency exists in the usual daily operation of various City divisions in that it is immediately necessary to authorize the Treasurer to renew its contracts with Huntington Merchant Services and authorize the expenditures to provide banking services necessary for the daily operation of normal business activities of the City of Columbus and so that the public's use of credit cards to make payments to various City agencies goes uninterrupted, 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. The City Treasurer is hereby authorized to renew its contract with Huntington Merchant Services for the provision of credit card processing services for the period through May 31, 2025.
SECTION 2. That the expenditure of up to $2,242,500.00 or so much thereof that 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 hereby 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.