City of Columbus - File #: 1577-2004

• File #: 1577-2004
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 9/1/2004
• In control: Administration Committee
• On agenda: 9/27/2004
• Final action: 9/29/2004
• Title: To authorize and direct the City Auditor to modify and increase 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, 2005 and to authorize the expenditure of $55,000.00 from the general fund, ($55,000.00), and to declare an emergency.

Date	Ver.	Action By	Action	Result
9/29/2004	1	CITY CLERK	Attest
9/28/2004	1	MAYOR	Signed
9/27/2004	1	Columbus City Council	Taken from the Table	Pass
9/27/2004	1	Columbus City Council	Approved	Pass
9/27/2004	1	COUNCIL PRESIDENT	Signed
9/20/2004	1	Columbus City Council	Tabled to Certain Date	Pass
9/9/2004	1	Auditor Drafter	Sent to Clerk's Office for Council
9/8/2004	1	Auditor Drafter	Sent for Approval
9/8/2004	1	Auditor Reviewer	Reviewed and Approved
9/8/2004	1	CITY AUDITOR	Reviewed and Approved
9/8/2004	1	Auditor Drafter	Sent for Approval
9/8/2004	1	CITY ATTORNEY	Reviewed and Approved
9/3/2004	1	ODI DIRECTOR	Reviewed and Approved
9/1/2004	1	Auditor Drafter	Sent for Approval
9/1/2004	1	CITY AUDITOR	Reviewed and Approved
9/1/2004	1	Auditor Drafter	Sent for Approval

Explanation

BACKGROUND

The Division of Income Tax currently has two banking service contracts for the processing of income tax remittances. The Huntington National Bank provides banking services for processing of direct deposit remittances. A second contract for the purpose of providing banking services related to the processing of employer withholding remittances is with the National City Bank.

The relocation of National City Bank's operation center to the Cleveland area resulted in its inability to perform those services necessary for the accurate and timely processing of withholding lockbox remittances pursuant to a contract addenda previously agreed to by both parties. The Income Tax Division must immediately cancel the contract with National City Banks and arrange for another service provider to provide for the specified processing of withholding remittances to insure the efficient and accurate posting of revenue for the City. The expansion of the Huntington National Bank lockbox services contract to include the processing of withholding remittances will allow for an uncomplicated transition of banking services. The Huntington has considerable experience processing the direct deposit payments having processed large volumes of income tax remittances during the last eight tax seasons. Additionally, the specifications for the processing of direct and withholding remittances are similar in nature. The cost for banking services charged by National City Bank is equivalent to the new cost presented by the Huntington Nation Bank. By utilizing an experienced local depository, the City minimizes the processing error rate and benefits from the ability of Income Tax personnel to more closely monitor and direct the processing of income tax revenue. Finally, the City benefits from greater investment earnings as tax receipts are deposited in a more efficient and timely manner. The continued outsourcing of this task also relieves the Division's employ...