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HomeMy WebLinkAbout5183 RESOLUTION NO. 5 18 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON., AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT FOR BANKING SERVICES WITH KEY BANK NATIONAL ASSOCIATION WHEREAS, the City of Auburn is in need of an ongoing banking services relationship; and WHEREAS, the Finance Director of the City has completed a competitive process to select a bank in order for the City to provide a range of banking services including the deposit of certain City funds, checking, safekeeping (Investment) services, and other services; and WHEREAS, based on a comparison of the proposals received by the City, it has been determined that accepting the proposal submitted by Key Bank National Association would be most advantageous to the City as stated in the attached memo, marked as Exhibit "A". NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Section 1. The Mayor is authorized to execute an agreement in substantial conformity with the Agreement attached hereto, marked as Exhibit "B' and incorporated herein by this reference. Section_2. The Mayor is authorized to implement such administrative Resolution No. 5183 November 3, 2015 Page 1 of 2 procedures as may be necessary to carry out the directives of this legislation. Section 3. This Resolution s h a I I take effect and be in full force upon passage and signatures hereon. Dated and signed this day of 'vl , 2015. CITY OF AUBURN J. NANC BACKUS, MAYOR ATTEST: Danielle E. Daskam, City Clerk APP VED S TO FORM: Daniel B. Heid, City Attorney Resolution No. 5183 November 3, 2015 Page 2 of 2 Exhibit A Resolution No.5183 C YOF * * Interoffice Memorandum WASHINGTON To: Mayor Nancy Backus From: Shelley Coleman, Finance Director Date: November 10, 2015 Re: Contract Award Recommendation—Banking Services RFP As you are aware, the Finance department issued a Request for Proposal for citywide banking services with a submission deadline of March 10, 2015. Each bank or credit union with a branch in Auburn was contacted to inquire about their interest in responding to the RFP. The Finance department received responses from five institutions: KeyBank, US Bank, Wells Fargo, Columbia Bank, and Timberland Bank. Responses were evaluated based on the following criteria: 1. Responsiveness to the RFP 2. Ability to perform required services 3. Fees 4. References 5. Community presence 6. Interviews Two banking firms moved forward to the interview process: KeyBank and US Bank. The Finance department found no significant differences between these two firms based on the RFP evaluation criteria. The Finance department recommends awarding the banking services contract to KeyBank given their relatively low cost,the cost of converting systems and processes for the entire city if we were to select a different vendor,and KeyBank's history with the city. Page 1 of 2 AUBURN * MORE THAN YOU IMAGINED Exhibit A Resolution No.5183 During this process, we looked to maximize cost savings. To do this we compared costs in the following key areas: Estimated New Service Recommended Contract Provider Service Est. Annual Annual Service Pre-RFP Provider Cost Savings General Banking KeyBank KeyBank $11,250 $3,300 Safekeeping Bank of New KeyBank $450 $900 (Investment) York Mellon Services Merchant(Credit KeyBank via KeyBank via $100,000 $190,000 Card)Services Elavon Elavon TOTAL $111,700 $194,200 General Banking Services will remain consistent with our current services received through KeyBank which includes general account services, account reconciliation, online banking, wire transfers, imaging and ACH services. Safekeeping (Investment) Services are currently provided by Bank of New York Mellon whose fees are largely based on a monthly flat amount. Based on the City's current investment activity, the City would recognize a savings of 67% by contracting for these services with KeyBank whose fee is based on a per item/transaction fee structure. The City could increase its investment activity by four times its current levels and breakeven. Merchant(Credit Card)Services fee structure will change from a tiered-rate plus VISA/MasterCard interchange rates to a flat-rate of 0.10% of the transaction amount plus $0.08 per item plus VISA/MasterCard interchange rates. In addition, the Finance department recommends implementing a Service Fee program in the Permit Center in which the VISA/MasterCard interchange rates along with the flat-rate will be paid by the customer. The bank anticipates the rate to cover these charges to the customer will be approximately 3% of the transaction amount; however, will not be more than 4% as the maximum allowable rate set by VISA and MasterCard. This will result in savings of approximately$190,000. Please let me know if there are any questions or comments.Thank you. Page 2 of 2 AUBURN * MORE THAN YOU IMAGINED CITY OF AAWASHINGTON Banking Services Contract 1. CONTRACTING PARTIES This AGREEMENT is entered into by and between City of Auburn, hereinafter referred to as the "City," and KeyBank National Association, fully qualified under the terms and conditions outlined by the Washington Public Deposit Protection Commission and licensed to conduct business in the state of Washington, and hereinafter referred to as the"Bank". 2. SERVICES PROVIDED BY BANK The City, acting by and through the Finance Department, issued a Request for Proposal (RFP), dated in January.21, 2015, for the purpose of obtaining proposals for providing banking services for the City of Auburn's Banking Services. KeyBank responded with a proposal dated March 10, 2015 (the"Proposal"). The RFP and the Proposal are attached hereto and incorporated by reference herein, are together with this document and its other attachments, referred to below as the"Agreement". The City hereby awards to KeyBank National Association, the Agreement for Mandatory Service (Section 5) excluding Lockbox, hereinafter referred to as the "Service", as described in the RFP for the City of Auburn Banking Services and in the Proposal, attached hereto at the prices stated therein and subsequently modified and attached hereto. Except as expressly provided herein, the provisions of the RFP shall provide the framework for the terms and conditions of this Contract, and the performance obligations and responsibilities of the Banking-Services to be provided to the City shall be as described in the Proposal, Provided that in the case of any ambiguity or conflict in terms, the City reserves the right to determine how the ambiguity or conflict shall be resolved, so long as such determination is in conformity with language therein. ADDITIONAL SERVICES a. The bank agrees to meet with the City at a minimum on a quarterly basis to review account and discuss current or future opportunities. b. Third-party merchant services are to include processor-managed Service Fee program, allowing for payment collection programs on behalf of City. c. Investment Safekeeping as listed in Section 5 Optional Services, all other Optional services are excluded. 3. CONSIDERATION In consideration whereof, the mutual promises made to each other, as hereinafter set forth, the parties further agree as follows: Indemnification. The Bank shall defend indemnify and hold the City harmless from any and all actual liabilities, losses, damages, costs, and expenses of any kind (including, without limitation, the reasonable fees and disbursements of counsel) which may be incurred by the City relating to or arising out of this Agreement or any- Service Agreement(s) directly caused by the Bank's sole negligence, bad faith, or willful misconduct, provided, however, that the City shall have no right to be indemnified CITY OF_ �yl"�J7�' m WASHINGTON Banking Services Contract(continued) hereunder for its own negligence, bad faith, or willful misconduct as determined by a court of competent jurisdiction. The City shall defend indemnify and hold the Bank harmless from any and all liabilities, losses, damages, costs, and expenses of any kind (including, without limitation, the reasonable fees and disbursements of counsel)which may be incurred by the Bank relating to or arising out of this Agreement or any Service Agreement(s) caused by the City's sole negligence, bad faith, or willful misconduct; provided; however, that the Bank shall have no right to be indemnified hereunder for its own negligence, bad faith, orwillful misconduct as determined by a court of competent jurisdiction. Limitation of Liability; Disclaimer of Warranties. Except to the extent required by law, the Bank's duties and liabilities will be limited to those set forth herein. The Bank's liability shall be limited to actual damages sustained by City and only to the extent such damages are a direct result of the Bank's willful misconduct. The liability of the Bank in all these instances shall not exceed the recovery of funds erroneously processed or not processed. The Bank shall not be liable for damages caused by any act or omission of any third party, whether or not such party was chosen by the Bank, or for any charges imposed by any third party. In no event,shall the Bank be liable for special, incidental, punitive or consequential loss or damage of any kind including, but not limited to, lost profits (whether or not the Bank has been advised of the possibility of such loss or damage). Bank shall have no liability hereunder to any third party. The Bank shall be relieved of liability where the Bank performs any Service in accordance with any Service Agreement(s), and the Bank may rely on the accuracy of any information set forth in the Service Agreement(s). Bank hereby expressly disclaims all warranties, express or implied, including, but not limited to, any warranty of merchantability or fitness for a particular purpose. City's Duty to Inspect. City must inspect all Service(s) performed and notify the Bank within thirty (30) days after receipt of the material containing the error or of a report or statement reflecting the error. Except to the extent required by law, failure to notify the Bank of errors within this time will relieve the Bank of any and all liability. Financial Condition and Credit Limits. The City agrees to provide financial statements (the quality of which to be defined by the Bank) for any time period requested by the Bank. In the event the Service($) selected by City result in unacceptable credit exposures to the Bank or affect the amount of capital required or expected to be maintained by the Bank or its parent under any law, regulation, guideline, or request from any central bank or governmental authority; or if the City fails to provide the Bank with any credit, financial or other information the Bank may require from time to time, the Bank may, in its discretion, immediately cancel the Services contemplated herein, or limit City's transaction volume or dollar amount. Any notice or demand which under this Agreement or applicable law must or may be given by the Bank, or City shall be in writing, properly addressed and, as an alternative to personal delivery, made by U.S. Mail, Page 2 of 5 CITY OF WASHINGTON, Banking Services Contract (continued) if-to the Bank, at: if to the City, at: KeyBank, National Association City of Auburn Public Sector Shelley Coleman Robbi M. Stedman Finance Director 1301 5th Ave. 251h Floor 25 West Main Seattle, WA 98101 Auburn,WA 98001-4998 The City and the Bank agree that the Agreement is the complete and exclusive statement between the parties that supersedes all proposals or prior agreements, oral or written, and all other communications between the parties relating to the subject matter of this Agreement. 4. PAYMENT FOR SERVICES The Bank will be compensated for services performed in accordance with the current pricing schedule on the Banking Services RFP Attachment B, Bid Sheet Schedule. Prices for services not implemented at the time of the contract will be determined at the time the service is implemented. The vendor will provide a monthly Bank Analysis Settlement Invoice detailing all fees. If the city objects to all or any portion of an invoice, it shall notify Bank and reserves the option to only pay that portion of the invoice not in dispute. In that event, the parties will immediately make every effort to settle the disputed portion. 5. TERM This Agreement shall be for a period of four(4) years beginning December 1, 2015, after which initial four (4) year term, the City may choose to extend the Contract for an additional two (2) years. If the City chooses to extend the Contract, it shall notify the Bank of its decision to extend the Contract within 90 days of the initial expiration of the term of the Contract. At the end of the initial expiration of the term of the Contract, or the extension hereof, the City may choose to negotiate a renewal option or to request additional proposals. 6. TERMINATION OF AGREEMENT The City reserves the right to terminate or suspend this Agreement at any time, with or without cause, by giving 90 days notice to the Bank in writing. In the event of termination, all finished or unfinished reports, or other material prepared by the Bank pursuant to the Agreement shall be provided to the City. In the event the City terminates this agreement prior to completion without cause, the Bank may complete such analyses and records as may be necessary to place its records in order. The Bank shall be entitled to receive just and equitable compensation of any satisfactory services completed prior to the date of suspension or termination, not to exceed the compensation set forth above. Should the Bank desire to terminate this agreement, written notice of 90 days is required. Page 3 of 5 CITY OF ,A ffi WASHWGTUN Banking Services Contract (continued) 7. NONDISCRIMINATION The Bank shall, in all hiring or employment made possible or resulting from this agreement, take affirmative action to ensure that there shall be no unlawful discrimination against any employee or applicant for employment because of sex, race, age, color, creed, national origin, marital status or the presence of any sensory, mental or physical handicap, unless based upon a bonafide occupational qualification, and this requirement shall apply to but not be limited to the following: employment, advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. No person shall be denied or subjected to discrimination in receipt of the benefit of any services or activities made possible by or resulting from this Agreement on the grounds of sex, race, color, creed, national origin, age except minimum age and retirement provisions, marital status, or the presence of any sensory, mental or physical handicap. 8. EXTENT OF AGREEMENT/MODIFICATION This Agreement, together with all attachments and addenda, represents the entire and integrated Agreement between the parties hereto and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended, modified or added to only by written instrument properly signed by both parties hereto. Page 4 of 5 CITY OF /�T+ WASHINGTON Banking Services Contract (continued) In Witness Whereof: The City and Bank have executed the Agreement as of the date and year written below. APPROVED APPROVED City of Aubum, Washington KeyBank National Association By: By: V�h& wwrv�� Print Name A& Print Name: Title:__ Kuhr Title: I 41" i Date: 11- 23 -15 Date: �� - S ATTEST: Danielle E. Daskam City Clerk APP O as to Ua-99Fd-. Heid My Attorney ATTACHMENTS: Attachment A: City of Auburn RFP Attachment B: Key Bank Response to City of Auburn Request for Proposals, Bank Services Page 5 of 5 City of Auburn Banking Services RFP City of Auburn Request of Proposal (RFP) for Banking Services City of Auburn Finance Department 25 West Main Auburn, WA 98001 WAS14INGTON January 21, 2015 Page 1 of 24 City of Auburn Banking Services RFP I. PURPOSE OF REQUEST The City of Auburn ("City") is requesting proposals for its primary banking services. The city is requesting proposals to assure that the City is receiving the best and most comprehensive level of banking services at competitive prices, as well as keeping pace with technology. The City's needs are outlined in the following Request for Proposal ("RFP"). II. PROPOSAL REVIEW TIMETABLE The following timetable is an estimate and the actual dates may vary. This estimate is for planning purposes only. The City's goal is to implement a banking services agreement no later than August 2015. • Issue RFP February 2015 • Pre-RFP Conference— 10:00 a.m. February 12, 2015 • Deadline for Questions February 20, 2015 • Deadline for Submittal of Proposals -4:00 p.m. March 10, 2015 • Interview with Selected Firms March/April 2015 • Preliminary Selection of Firm April 2015 • Recommendation to City Council by May 2015 • Implementation of Banking Services Agreement no later than August 2015 III. MINIMUM QUALIFICATIONS To be considered for selection, financial institutions must.meet at least the following minimum qualifications: A. Authority to offer banking services. Institution must hold a charter from either the United States Government or the State of Washington. B. Access to the Federal Reserve System. Institution must be a member of(or have access to) the Federal Reserve System and have access to all Federal Reserve System services. G. Legal Compliance. Institution must be in compliance with all applicable laws, rules, regulations, and ordinances of the City of Auburn, the State of Washington, and the United States. D. Public Deposit Protection Act. Institution must be a Washington State qualified depository for public funds and must be in compliance with the Washington Public Deposit Protection Act (RCW 39.58). E. Local banking office. Institution must have an established office or local branch within the City of Auburn. January 21, 2015 Page 2 of 24 City of Auburn Banking Services RFP IV. INSTRUCTIONS TO PROPOSERS A. All proposals should be directed to: City of Auburn Attn: City Clerks 25 West Main Street Auburn, WA 98001 B. All proposals must be in a sealed envelope and clearly marked in the lower left-hand corner: "RFP - Banking Services". All proposals must be received by March 10, 2015 at 4:00 p.m. Five (5) copies of the RFP must be presented. No faxed, e-mailed or telephone proposals will be accepted. Late proposals shall be returned unopened. Proposals received after the deadline will not be considered. Proposers accept all risks of late delivery, regardless of fault. C. Proposals should be prepared simply and economically, providing a straightforward, concise description of provider capabilities to satisfy the requirements of the request. Special bindings, colored displays, promotional materials, etc. are not required. Emphasis should be on completeness and clarity of content. Use recycled paper for responses and any printed or photocopied material created pursuant to a contract with the City whenever practicable. Use both sides of the paper for any submittal to the City whenever practicable. D. Pre-RFP conference: The pre-RFP conference is optional. Questions regarding this RFP will be addressed at a pre-RFP conference held at 10:00 A.M. in City Hall Council Chambers on Thursday, February 12-, 2015. No questions will be answered via the telephone or in person other than during the pre-RFP conference. However, questions may be submitted in writing to Janice Davies at idavies(aD-auburnwa.gov by February 20, 2015. E. All proposals must include the following: 1. Responses to Banking Services Questions/Statements in section VIII. 2. Statement of Financial Institution Qualifications in section IX, signed and notarized. 3. Non-Collusion Affidavit Certificate in section X, signed and notarized. 4. A detailed schedule of costs by specified task using the RFP Sheet form in Attachment A. Volumes indicated on the RFP Sheet are estimates and actual quantities may vary. Costs not included on the RFP Sheet, but which the financial institution proposes to charge, must be individually itemized and thoroughly explained. RFP Sheets must be executed by an official of the firm in a position to commit the institution to provide the services in accordance with these terms and conditions. January 21, 2015 Page 3 of 24 City of Auburn Banking Services RFP V. SCOPE OF SERVICES General Information The City of Auburn is soliciting proposals for a primary banking relationship with a financial. institution which operates an office within the city limits. The City will be contracting for the following general services for a four year period beginning no later August 2015 and ending four years later. At the City's option, a two year extension will be permitted with the same terms and conditions of the original contract or as amended. The following is a listing of mandatory services the City requires of its financial institution: • Demand deposit checking accounts; • Nightly account balance sweep; - • Banking supplies; • Interim financing and overdraft protection; • Payroll direct deposit; • Trust services; • ACH debit services; • On-line balance reporting; • On-line stop-pays; • ACH reporting; • On-line wire transfers;' • Lock box service; • Positive-Pay on Checking Accounts; • Night depository services; • On-line image retrieval; • Automated vendor payment services (ACH); • Account reconciliation processing (ARP); • Excellent customer service & response; single point of contact. Auburn utilizes a check system, as opposed to warrants. The City anticipates that proposed banking services will be compensated either by the credit earned on average collected balances or CD, or a fee for service basis, but is also willing to consider other options. The following is a list of optional services the City may require: • Check 21 or similar expedited payment options; • Courier services; • Armored car services; • Credit/debit card services (Merchant services) • Investment safekeeping services • Purchasing cards Services Required Checking Accounts: The City currently utilizes two checking accounts: 1) the primary checking account, which includes accounts payable & payroll check processing; and 2) an advance travel account. The institution will furnish the City with additional checking accounts as needed. Currently, courier services deliver deposits to the institution's branch once each workday, for processing and credit-to the City's account that day. NSF checks must be processed twice before January 21, 2015 Page 4 of 24 City of Auburn Banking Services RFP being returned to the City. The basic checking account services should at least: • Provide month-end statements by the 10th day of the following month and provide statements to various auditors upon request; • Provide electronic check image retrieval on CD monthly including necessary software; • Provide individual and consolidated monthly account analysis for all accounts by the 15th day of the following month; • Provide an on-line wire transfer system for transferring money to other institutions, along with appropriate security levels for wire transfer initiations and approvals; • Provide an on-line computer balance reporting system, with information on collected, available and closing balances, as well as a detail of total debits and credits posted to the account for the previous day, by 7:00 a.m. each business day; • Provide an on-line reporting system that shows current day ACH credits and debits, by 7:00 a.m. each business day. Currently the City receives property tax distributions daily through the ACH system and needs the current day information every morning to assist in making investment decisions; • Provide deposit reporting by location via an auxiliary MICR field or other means; • Provide Positive Pay feature with exception reporting/return of unknown items; • Provide for on-line stop-pay, look-up and notification; • Provide support in answering questions, troubleshooting problems and resolving issues in a prompt manner; • Provide means to inquire about canceled checks and stop payment on checks upon proper authorization. Nightly Sweep/Zero Balance: To supplement the City's daily major cash transfers to primary checking and travel advance accounts, sweep account structures to bank intra-day or overnight investment options should be utilized to ensure all minimal bank-held operating funds are invested at the highest possible rate. Bank sweep alternatives shall include only SEC "registered US government and agency or prime money market funds. Sweeps are designed to also minimize collateral risk for the System by eliminating overnight deposits which otherwise must be collateralized. Interim Financing and Overdraft Protection: The City may require short-term financing for a period not to exceed one (1) year in the form of short-term notes. This short-term financing could be secured by the anticipated revenue of City funds or sale of General Obligation, Revenue, or Local Improvement District bonds. The selected firm agrees to provide interim financing to the City on a prompt and competitive basis. Although the City will attempt to minimize daylight and overnight overdraft situations, it recognizes that there are times these situations will occur. It is anticipated these overdraft situations will not exceed $2 million, if and when they do occur. Trust and Escrow Agent Services: The City may require trust and escrow agent services to hold letters of credit and other third party commercial documents. The institution will, in most cases, be required to take physical custody of these securities, notify the Parties of their expiration thirty days prior to termination of the agreement and accept renewal or replacement of instruments. The City may also require retainage accounts be maintained for contractors choosing to place retainage funds in an interest bearing account. January 21, 2015 Page 5 of 24 City of Auburn Banking Services RFP Banking Supplies: The financial institution will be required to provide a supply of coin rollers, locking bank bags, tamper proof plastic deposit bags, deposit slips, advance travel and other miscellaneous checks, and endorsement stamps for each location (see Attachment B for the number of endorsement stamps needed). The cost of such supplies shall be charged against the City's monthly analysis statement as supplies are furnished to the City. ACH Debit Services: The City processes a direct debit batch four(4) times per month for the payment of both residential and commercial utility bills. As noted below, the City also processes direct deposits of payroll twice a month. Other miscellaneous ACH transactions such as debt service, excise tax, retirement fund transfers and federal tax payments flow through the account each month. Direct Deposit for Payroll: Auburn offers and encourages direct payroll deposit for its employees. The City pays its employees semi-monthly on the 8th and 23rd. On an average payroll, 475 employees receive direct deposit, which generates approximately 580 transactions per pay period due to many employees having multiple bank account transfers. Currently, the City transmits the payroll data to the institution via internet two working days prior to payday. Deposits must be made into the employees' account by 7:00 a.m. on payday. Any deviation from these time limits must be stated in the RFP. Any firm with less restrictive time requirements will be given favorable consideration. The City from time to time may need to transmit the payroll data one day prior to the pay date. We are therefore requesting RFPs on both a one-day and two-day turnaround. We are interested in what the deadlines for transmission are for both situations. Night Depository Services: The financial institution will provide the City with the ability to make `night drop' deposits after hours. City staff will prepare a deposit slip and 'night drop' the deposit after hours, for deposit the next day. We currently use the tamper-resistant plastic bags for this function. Data Equipment Compatibility: The City is interested in equipment and data compatibility and therefore requests the specifications needed for an automated wire transfer, ACH debit & credit, credit card, balance reporting and any other automated systems be included in this proposal. Any costs associated with automated data and equipment should be identified on the RFP Sheet form in Attachment A. Miscellaneous Optional Services: In addition to the requirements listed above, the proposal shall identify proposed fees for the following services' • Rapid processing/deposit options for checks such as Check 21; • Armored car services; • Courier services; • Lockbox services; • Payment of financial system upgrades and fees through the use of the bank analysis as this will enhance our banking/financial processing capabilities; • Credit/Debit card services: If this optional service is selected to be provided by the financial institution it will provide the City with the ability to accept payment through the use of credit/debit cards. The City currently accepts MasterCard and Visa credit cards in person, over the phone and on-line for collection of recreation, utilities, permit fees and other fees. The City currently has multiple locations that accept credit cards, with the possibility of more locations in the future. The City will be credited daily for the gross January 21, 2015 Page 6 of 24 City of Auburn Banking Services RFP amount of the bank card transactions. Any sales discount fee or percentage proposed will be charged to the City's analysis statement at the end of each month as part of the activity charges. • Investment Safekeeping Services: The institution may be required to provide safekeeping facilities and services for the City's investment securities. Required safekeeping services include (but are not limited to): • Receive/deliver securities on a delivery versus payment method; • Price securities to market; • Collect coupon bond interest; • Provide delivery confirmation on new security purchases; • Provide a monthly statement of holdings including fair market value of investments; • Register or transfer securities; • Verify holdings as of specific dates for audit purposes; • Credit the City's account for interest and principal payments on the day received; • Provide maturity and interest payment notices at least 5 days prior to payment date The City currently invests in U.S. Treasury and Agency securities that require safekeeping services. The City may invest in other securities allowed by Washington State Statute in the future. The selected firm will be required to comply with all State and Federal regulations regarding safekeeping of municipal securities. • Purchasing Cards: The City is currently utilizing a purchasing card program under the State contract for making routine purchases in lieu of the normal requisition/purchase order mode of operations. • Other services provided by your institution that would be beneficial to the City of Auburn, but have not specifically been addressed. Please itemize on the RFP Sheet form in Attachment A. Services Not Provided: In the event that the primary proposing financial institution does not provide all requested services included in this RFP, the financial institution will submit as part of its proposal additional partners/providers whom do provide these services. It is the sole responsibility of the primary financial institution to secure and maintain the relationship with any additional providers. The primary financial institution, at the time of RFP submittal will identify all secondary providers. Should the financial institution be unable to secure and provide the relationship, in certain instances such as the City's financial system software vendor or armored car services, the city may contract with independent service providers. VI. TERMS AND CONDITIONS A. The City reserves the right to reject any and all proposals, and to waive minor irregularities in any proposal. B. The City reserves the right to request clarification of information submitted, and to request additional information on any proposal. C. The City reserves the right to award any contract to the next most qualified financial institution, if the successful financial institution does not execute a contract within 30 January 21, 2015 Page 7 of 24 City of Auburn Banking Services RFP days of being notified of selection. D. Any proposal may be withdrawn up until the date and time set above for opening of the proposals. Any proposal not so timely withdrawn shall constitute an irrevocable offer, for a period of one hundred and twenty (120) days to sell to the City the services described in the attached specifications, or until one or more of the proposals have been approved by the City administration, whichever occurs first. E. The contract resulting from acceptance of a proposal by the City shall be in a form supplied or approved by the City, and shall reflect the specifications in this RFP. A copy of the proposed contract is available for review (see attachment B). The City reserves the right to reject any proposed agreement or contract that does not conform to the specifications contained in this RFP and which is not approved by the City Attorney's office. F. The City shall not be responsible for any costs incurred by the financial institution in preparing, submitting or presenting its response to the RFP. VII. RFP EVALUATION AND SELECTION PROCESS Proposals will be evaluated by a committee of City staff. Evaluations will be based on criteria outlined herein which may be weighted by the City in a manner it deems appropriate. All proposals will be evaluated using the same criteria. The criteria used will be: A. Responsiveness to the RFP The City will consider all the material submitted to determine whether the financial institution's offering is in compliance with the RFP documents. B. Ability to Perform Required Services The City will consider all the relevant material submitted by each financial institution, and other relevant material it may otherwise obtain, to determine whether the financial institution is capable of providing services of the type and scope specific to the RFP. The following elements may be given consideration by the City in determining whether a financial institution is capable: 1. The ability and capacity of the financial institution and the skills, experience, and availability of the specific individuals to be assigned to the City to perform the services required (Section VIII); 2. The quality of performance by the financial institution on previous and similar contracts and such other information as may be secured and considered relevant by the City, including information on customer service and obtained from references provided(Section VIII); 3. The ability of the financial institution to present professional and innovative work; the skill of the financial institution as demonstrated by samples of similar work and/or references from similar organizations; 4. Strength and stability of the financial institution. The financial institution's financial standing amongst its peers and the associated credit quality ratings. January 21, 2015 Page 8 of 24 City of Auburn Banking Services RFP C. Fees As described in Section IV E. 4. D. References As described in Section VIII B. E. Community Presence As described in Section VIII C. F. Interviews and Site Visits The City may conduct interviews and site visits as part of the final selection process. G. Other Factors Any other factors that the City believes would be in the City's best interest to consider which were not previously described. H. Selection of Firm Following the evaluation of RFPs received by firms submitting RFPs, in conformity here with, the staff committee shall select from among such RFPs the RFP that, in the opinion of the committee, best meets the needs of the City. I. Banking Services Agreement Following selection of an RFP, the City shall submit to the firm submitting the selected RFP an Agreement for banking services including the elements described herein. If the firm submitting the selected RFP and the committee cannot reach agreement on a banking services contract, the City shall evaluate the other RFPs received to determine if the firm submitting another RFP would be able to meet the city's needs and enter into a Banking Services Agreement. J. Submittal of Banking Services Agreement to City Council Once an acceptable Banking Services Agreement with a firm submitting the selected RFP has been drafted, it shall be presented to the Auburn City Council for its review and approval. VIII. BANKING SERVICES QUESTIONS/STATEMENTS Please provide your responses to the items below in the order presented. A. Provide the names of individuals, with phone numbers and e-mail addresses, who will be working on the proposed services and their areas of responsibility including their specific experience relative to the request for proposal requirements. B. Submit at least five (5) references (preferably from current local government customers) who can attest to the financial institution's experience as it relates to providing banking services. The references must include contact name, title, address, e-mail address, telephone number and services used. C. Describe your institution's community participation/reinvestment program including your Community Reinvestment Act(CRA) rating. January 21, 2015 Page 9 of 24 City of Auburn Banking Services RFP D. Describe your institution's customer service philosophy and organizational structure and provide meaningful examples to illustrate. E. Provide the following reports and information about your institution: 1. Analysis & bank statement 2. Safekeeping statement and receipts 3. Most recent financial statement 4. SEC and/or Moody's credit rating or comparable rating F. Provide a funds availability schedule. Describe one day, two day availability and wire requirements. G. Describe your Balance Reporting systems and availability. 1. What hardware/software does the bank use to deliver balance and transaction detail information? 2. What time is previous day information available for access by the customer? 3. What are the hours of access of the balance reporting system? 4. Does the bank provide current day information? a. How frequently is this information updated throughout the day? b. What transaction types are available on current day reports? 5. Describe the level of detail provided in previous and current day reports? 6. How many days of history can be accessed through the system? 7. In what format is information available? 8. Provide a sample printout of the daily on-line balance information. K ACH Services: 1. What is the recommended service delivery method (i.e. direct transmission, on- line, or other)? a. What are the hardware/software requirements? b. What training does the bank provide? c. Does the software offer the ability to manage security and access levels by user? d. What ACH report options are available? e.. What controls are in place_ to protect against lost files and duplications of transmissions? f. Does the bank provide automatic file receipt acknowledgements? If so, how? g. Describe the role of any third-party processor used by the bank to provide this service? 2. What are the.hours of operation of the ACH unit? 3. What are the bank's cut-off times for customer initiation of ACH transactions? 4. Describe the procedures used to verify accurate and secure receipt of transmissions.. 5. Can the bank automatically redeposit items returned for insufficient or uncollected funds? 6. How does the bank handle file, batch, and item reversals and deletions? I. Positive Pay 1. What is the recommended service delivery method (i.e. direct transmission, on- line, or other)? a. What are the hardware/software requirements? 2. What controls are in place to protect against lost files and duplications of transmissions? January 21, 2015 Page 10 of 24 I City of Auburn Banking Services RFP 3. Does the bank provide automatic file receipt acknowledgements? If so, how? 4. Describe the role of any third-party processor used by the bank to provide this service? 5. What is the bank's deadline for-transmitting files/data? 6. What is the process for notifying the bank of a single check or small check run outside of the regular batch file? 7. How does the City notify the bank of voided and stop payment checks? 8. Does your bank have payee verification? 9. Is the positive pay service fully implemented at all bank branches? 10. How does the bank handle exception ("paid not issued") items? a. Does the bank offer a daily Listing of exception items? b. Are there defaults available for each account to either automatically return or pay on exception items? c. What is the timeline for reporting exceptions to the city? d. How are exceptions reported to the city?Will an image be available? e. What.is the timeline for the city to act on any exceptions? f. What are the hours of operation of-this service unit? J. Merchant Card Services: 1. Provide a funds availability schedule by card type. Is it negotiable? 2. What is the settlement deadline? 3. What daily and/or monthly reconciliation reports are available? 4.. Do.you offer recurring billing processing? K. Payment of Fees. Respondents will need to provide information on the following: 1. The effective rate and formula used to calculate the service charge credit for collected fund balances; 2. The proposed method for setting rates on a compensating certificate of deposit; 3. A.time frame proposed to pay any additional fees not offset by service charge credit; 4. Whether a service charge credit/debit can be carried forward to the next period; 5. The formula for any fees in the event of an overdraft; 6. Describe what constitutes a daylight and overnight overdraft situation. L. Errors and Adjustments 1. Describe your adjustment process for resolving deposit discrepancies. 2. At what dollar amount do you write off discrepancies? 3. Do you adjust the deposit amount or process an adjusting debit or credit? 4. Describe the process to notify the City of deposit adjustments. M. Describe how inquires requiring research and adjustments are handled by the institution. Are there established tum-around times for research and adjustment items? If yes, specify. N. Describe NSF or Returned Items processing procedures, fees or other related services available. The City will require re-depositing 'NSF' or'uncollected funds' returned items so that they may be presented a second time prior to being charged back. O. Security/Protection Measures: What security features are in place to minimize the risk of unauthorized transactions? January 21, 2015 Page 11 of 24 City of Auburn Banking Services RFP P. Service Enhancements: Describe any enhancements, technological or otherwise, that we should consider to improve operational or cash management efficiencies. Q. Discuss your use of the intemet in providing services to your municipal/business customers. R. Provide information on how your institution plans to keep your product line competitive. Describe what approach the bank is taking in the development of new services and what new services and/or features the bank plans to offer and within what time frame. S. Disaster Recovery: 1. Describe your institution's formal disaster recovery plan. 2. How quickly will back-up facilities be activated? 3. Describe your institution's operating capabilities to assist the City in the event of a disaster or declared emergency. T. Conversion Plan: Describe the conversion plan you would coordinate to ensure a smooth transition from the current provider. Please provide a sample of the conversion schedule. U. List the address and hours of operation at your nearest branch office and also the hours of operation for non-branch services. V. Discuss any special conditions, other fees, other services, or deviations from the requested scope. W. Sample Reports: Please provide sample reports for the following services: 1. Bank Statements; 2. Monthly bank account analysis; 3. Daily on-line balance information print-out; 4. ACH report options; 5. Returned item(s) notification; 6. Monthly merchant services statement; 7. Merchant charge-back report. January 21, 2015 Page 12 of 24 City of Auburn Banking Services RFP IX. STATEMENT OF FINANCIAL INSTITUTION QUALIFICATIONS Each financial institution submitting a proposal for items included in this document shall prepare and submit the following data along with their proposal: 1. Name of Financial Institution 2. Business Address 3. Business Phone Fax No. 4. E-mail address 5. How many years have you been in business under the present name? 6. General character of services provided by your institution: _ 7. City of Auburn Business License Number: 8. State of Washington Sales Tax Registration Number: 9. Federal I.R.S. Identification Number: 10. 1 certify that the institution: • is capable of providing the services as outlined in this proposal, • will comply with the rules and regulations outlined by the Revised Code of Washington, Auburn Municipal Code, and the Washington Public Deposit Protection Commission, and other applicable laws and regulations. City of Auburn Banking Services Institution Name Authorized Signature Sworn before me, this day of, 2015. .Notary Public in and for the State of Washington January 21, 2015 Page 13 of 24 City of Auburn Banking Services RFP X. NON-COLLUSION AFFIDAVIT CERTIFICATE State of Washington ) )ss County of ) The undersigned, being duly sworn, deposes and say that-the person, firm, association, co- partnership, or corporation herein named has not either directly or indirectly entered into any agreement, participated in any collusion, or otherwise taken any action in restraint of free competitive bidding in the preparation and submission of a proposal to the Owner for consideration in the award of a contract on the improvement described as follows: City of Auburn Banking Services Institution Name Authorized Signature Sworn before me, this day of, 2015. Notary Public in and for the State of Washington January 21, 2015 Page 14 of 24 City of Auburn Banking Services RFP XI. OTHER INFORMATION For additional information or explanation of the contents or intent of these specifications, please e-mail your questions to Janice Davies, Accounting Manager, at jdavies @auburnwa.gov. An optional RFP conference will be held February 12, 2015 at 10:00 a.m. in the Council Chambers of the Auburn City Hall, 25 West Main Street, Auburn, Washington. Attached are directions for your convenience. January 21, 2015 Page 15 of 24 City of Auburn Banking Services RFP Attachment A RFP Sheet Unit Estimated Monthly Item Price Monthly Cost Explanation Volume General Account Services: Account Maintenance 4 Paper Credits 220 Paper Checks/Debits Paid 513 Deposited Item(checks) 2,004 Deposited Items Returned 11 Re-deposited Return Item 12 Return Item Image 6 Online Banking Returned Item 1 Statement Lockbox Services PO Box Rental Fee 1 Lockbox Items 4,429 Lockbox Scannable Items 4,667 Lockbox Unprocessable Items 64 Lockbox Image Check Scan 8,927 Lockbox Image Document Scan 3,181 Lockbox Image Remit Scan 4,667 Lockbox Remit Per Keystroke 116,287 Lockbox Deposited Item Clearing 8,927 Lockbox Online Image Base Fee 1 Lockbox Data Transmission 21 Account Reconciliation Services: Positive Pay Maintenance 2 Positive Pay per item 506 ARP Weekly Transmission Input 1 ARP Manual Input(Add/Cancel Entry) 23 File Confirmation 10 January 21, 2015 Page 16 of 24 City of Auburn Banking Services RFP Unit Estimated Monthly Item price Monthly Cost Explanation Volume On Line Banking: On Line Banking Current Day Account 1 On Line Banking Current Day Detail 187 Trx On Line Banking Prior Day Account 4 On Line Banking Prior Day Detail Trx 974 On Line Banking token Monthly Maint. 5 On Line Banking Stop Payments 1 Monthly Maint. On Line Banking Stop Payments-Per 2 Stop On Line Banking Book Transfer-per 1 Transfer Wire Transfers: Wires Monthly Client Maint. 1 Incoming Domestic Wire 3 Domestic Repeat Wire 4 Image Services: Monthly Maintenance per account 2 Image Per Item (CD Item Capture) 513 Image CD-ROM Creation Fee 1 ACH Service: ACH Monthly Maintenance 1 ACH Process Run (Data Transmission) 11 ACH Originating Credit Transfer 1,137 ACH Originating Debit Transfer 975 Incoming ACH Credit Item 15 Incoming ACH Debit Item 163 ACH Item Min Per File (<250) 6 ACH Credit Addenda Info 20 ACH Return Per Item 5 ACH Return/Notification of Change via 10 Email ACH Customer Activity Report(CAR) 1 January 21, 2015 Page 17 of 24 City of Auburn Banking Services RFP Unit Estimated Monthly Item Price Monthly Cost Explanation Volume Coin &Currency Services: Cash Deposited per$100 1,209 Mailed Receipts 34 Cashier Checks 1 Safekeeping (including reporting): Account Maintenance 1 Interest Received 1 Supplies: Overnight Overdraft Rate $2 million Daylight Overdraft Rate $2 million Short Term Financing Rate $2 million Endorsement Stamps 10 Coin Wrappers per 1000 as requested Deposit Slip Books (3 part carbonless) as requested Plastic Bank Bags per 100 as requested Credit Cards: Merchant Card Transaction/$Volume Cemetery Transactions 15 Cemetery$Volume 35,234 Finance Net Transactions 875 Includes Counters Finance, P & R, Sr. Center, Clerks & Building Finance Net$Volume 290,590 Includes Counters Finance, P& R, Sr. Center, Clerks& Building Utility Payments Transactions (est.) 60 Utility Payments$Volume (est.) 18,000 Utility On-line Transactions (est.) 5,965 Utility On-line$Volume (est.) 1,053,998 Merchant Account Set-up Fees Terminal Rental/purchase fees Merchant Acct. Support Package Fees Interchange Rates Your Bank Fee/Discount Rate Other Items Not Mentioned: January 21, 2015 Page 18 of 24 City of Auburn Banking Services RFP Notes or Item Description: Formulas: Daylight Overdraft Formula Overnight Overdraft Formula Short-Term Financing Formula FDIC Insurance Formula Service Charge Credit Formula January 21, 2015 Page 19 of 24 City of Auburn Banking Services RFP The undersigned_, an institution or firm maintaining branch/office operations within the city limits of Auburn, Washington, submits the following proposal for the City's banking services for the period August 1, 2015 through July 31, 2019: Authorization: Institution Name Date Mailing Address Phone Number City, State, Zip Fax Number By Title Contact Name (if different from above) Contact Phone Number i January 21, 2015 Page 20 of 24 City of Auburn Banking Services RFP Attachment B Banking Services Agreement BANKING SERVICES AGREEMENT PROVISIONS FOR THE CITY OF AUBURN The City of Auburn, Washington, a municipal corporation (hereinafter the "City") and , whose address is __ , (hereinafter the "Financial Institution", agree and contract as follows: A. SERVICES BY FINANCIAL INSTITUTION The Financial Institution shall perform the services outlined in this Agreement. The Financial Institution, in the performance of this Agreement, shall comply with all applicable federal, state or local laws and ordinances, including regulations for licensing, certification and operation of facilities, programs and accreditation, and licensing of individuals, and any other standards or criteria as described in this Agreement to assure quality of services. The Financial Institution shall perform the work diligently and completely and in accordance with professional standards of conduct and performance. B. COMPENSATION 1. The total compensation to be paid to the Financial Institution shall be detailed in Attachment A. The above fees include all labor, materials and expenses required for the completion of these services. 2. Payment to Financial Institution by the City in accordance with the above shall be the total compensation for all work performed under this agreement and supporting documents hereto as well as all subcontractor's fees and expenses, supervision, labor supplies; materials, equipment or the use thereof, reimbursable expenses, and other necessary incidentals. 3. The Financial Institution shall be paid based on the acceptance of the proposed compensation. 4. The City shall have the right to withhold payment to the Financial Institution for any service not completed in a satisfactory manner until such time as the Financial Institution modifies such service to the satisfaction of the City. 5. Unless otherwise specified in this Agreement, any payment shall be considered timely if a check is mailed or is available within 45 days of the date of actual receipt by the City of an invoice conforming in all respects to the terms of this Agreement. January 21, 2015 Page 21 of 24 City of Auburn Banking Services RFP 3. TERMINATION OF AGREEMENT The City reserves the right to terminate or suspend this Agreement at any time, with or without cause, by giving forty-five (45) days notice to the financial institution in writing. In the event of termination, all finished or unfinished reports, or other material prepared by the Financial Institution pursuant to the Agreement shall be provided to the City. In the event the City terminates this agreement prior to completion without cause, the Financial Institution may complete such analyses and records as may be necessary to place its records in order. The Financial Institution shall be entitled to receive just and equitable compensation of any satisfactory services completed prior to the date of suspension or termination, not to exceed the compensation set forth above. Should the Financial Institution desire to terminate this agreement, written notice of 180 days is required. 4. OWNERSHIP OF WORK PRODUCT Ownership of the originals of any reports, data, studies, surveys, charts, maps, drawings, specifications, figures, photographs, memoranda, and any other documents which are developed, compiled or produced as a result of this agreement, whether or not completed, shall be vested in the City. Any reuse of these materials by the City for projects or purposes other than those which fall within the scope of this agreement or the project to which it relates, without written concurrence by the Financial Institution will be at the sole risk of the City. 5. GENERAL ADMINISTRATION AND MANAGEMENT The Finance Director or Assistant Finance Director for the City of Auburn shall review and approve the Financial Institutions charges to the City under this Agreement, shall have the primary responsibility for overseeing and approving services to be performed by the Financial Institution, and shall coordinate all communications with the Financial Institution from the City. 6. CONTRACT PERIOD The Banking Services Agreement is to extend for a period of four years, beginning on 1, 2015 with a two year option to renew the Agreement. The City in order to exercise its renewal option will need to do nothing. At the end of this period, the City may choose to negotiate a renewal option or to request additional proposals. 7. SUCCESSORS AND ASSIGNS The Financial Institution shall not assign, transfer, convey, pledge, or otherwise dispose of this agreement or any part of this agreement without prior written consent of the City. 8. NONDISCRIMINATION The Financial Institution shall, in all hiring or employment made possible or resulting from this agreement, take affirmative action to ensure that there shall be no unlawful discrimination against any employee or applicant for employment because of sex, race, age, color, creed, national origin, marital status or the presence of any sensory, mental or physical handicap, unless based upon a bonafide occupational January 21, 2015 Page 22 of 24 City of Auburn Banking Services RFP qualification, and this requirement shall apply to but not be limited to the following: employment, advertising, layoff or termination, rates of pay or other forms of compensation and selection for training, including apprenticeship. No person shall be denied or subjected to discrimination in receipt of the benefit of any services or activities made possible by or resulting from this Agreement on the grounds of sex, race, color, creed, national origin, age except minimum age and retirement provisions, marital status, or the presence of any sensory, mental or physical handicap. 9. HOLD HARMLESS/INDEMNIFICATION The Financial Institution agrees to indemnify, defend, and save harmless the City and its officers, agents, and employees, from any claim, real or imaginary, filed against the City or its officers, agents, or employees, alleging damage or injury arising out of the subject matter of this Agreement; provided, however, that such provision shall not apply to the extent that the damage or injury results from the fault of the City or its officers, agents, or employees. "Fault" as herein used shall have the same meaning as set forth in RCW 4.22.015. 10. LIABILITY INSURANCE COVERAGE The Financial Institution will, at the Financial Institution's sole expense, obtain and maintain during the life of this Agreement, policies of comprehensive general liability insurance, each with combined sing_ le limits of not less than $1,000,000 per occurrence. Any policy of required insurance on a claims-made basis shall provide coverage as to all claims arising out of the services performed under the contract and filed within three (3) years following completion of the services so to be performed. A failure to obtain and maintain such insurance or to file said certificates shall be a material breach of this Agreement. 11. COMPLIANCE WITH LAWS The Financial Institution shall comply with all applicable State, Federal and City laws, ordinances, regulations, and codes. 12. FUTURE SUPPORT The City makes no commitment and assumes no obligations for the support of Financial Institution activities except as set forth in this Agreement. 13. INDEPENDENT CONTRACTOR The Financial Institution is and shall be at all times during the term of this agreement an independent contractor. January 21, 2015 Page 23 of 24 City of Auburn Banking Services RFP 14. EXTENT OF AGREEMENT/MODIFICATION This Agreement, together with all attachments and addenda, represents the entire and integrated Agreement between the parties hereto and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended, modified or added to only by written instrument properly signed by both parties hereto. 15. ADDITIONAL WORK The City may desire to have the Financial Institution perform other services in connection with the banking relationship other than provided for by the express intent of this contract. Any such services shall be considered as additional work, supplemental to this Agreement. Additional work shall not proceed unless so authorized in writing by the City. Authorized additional work will be compensated for in accordance with a written supplemental Agreement between the City and the Financial Institution. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates written below: FINANCIAL INSTITUTION: CITY OF AUBURN: By: By: Title: Title: Date: Date: APPROVED AS TO FORM: Auburn City Attorney Date: I January 21, 2015 Page 24 of 24 KeyBank Onw. 601 108'"Avenue"NE Bellevue,WA 98004 March 10,2015 I City of Auburn Attention:City Clerk 220 Fourth Avenue South Kent,WA 98032 112 W.Jefferson Street,Room 206 Plymouth,IN 46563 Dear City Clerk, On behalf of KeyBank National Association(Key),we thank you for this opportunity to present a proposal for Banking, Merchant and Lockbox services to the City of Auburn(the City).We take significant pride in our long-standing service to public sector entities across the country and look forward to continuing to serve you and your clients with innovative financial solutions customized to meet your needs. Our proposal reflects considerable time and effort we have taken to understand your objectives.We believe a decision by the City to expand our 20+year relationship will allow us to provide you with immediate and long term measurable benefits,including: • Increased ECR to 0.40%to further off set your banking service fees • Three months banking services retention credit • A proposed convenience fee model for merchant services to reduce the fees assessed to the city. • Cutting-edge technology that significantly reduces the need for use of in-house IT resources as we continue to deploy new services As a result of this unique blend of expertise,Key is well positioned to help the City meet the specific cash management goals and strategic objectives outlined in the RFP.We will accomplish this through cost-effective and integrated solutions that are designed to streamline,track and improve the cash flow and accounting functions of your business operations.Key's Public Sector and Treasury Services professionals are committed to ensuring you receive the highest level of customer service and will proactively explore ways to enhance the solutions that will ultimately help you make the best financial decisions for the City. This commitment is evidenced by the following: • The Phoenix-Hecht 2014 Treasury Management Monitorm awarded Key ratings of"A+"or"A"across a comprehensive range of treasury.management categories,including areas of customer service,overall relationship manager effectiveness,and products. • American Customer Service Index(ACSI)survey results indicate that compared to the nation's largest banks in the survey,Key Is one of only two that improved Its overall customer satisfaction score for two consecutive years. We are proud of the quality and service we provide to our clients and enjoy our rote as a preferred partner to the City of Auburn. Thank you again for the opportunity to provide a quote and for your consideration of Key.Should you have any questions regarding our response to your RFP,please don't hesitate to reach out to us.We are the City's primary contacts rand are both authorized to represent the bank. Sincerely, Robbi M.Stedman,VP Michael D.Thomas,VP Senior Relationship Manager Senior Treasury Advisor Institutional Banking-Public Sector Treasury Services—Public Sector KeyBanc Capital Markets Enterprise Commercial Payments 360-529-2714 206-689-5713 Robbi M StedmanCcDKev.com Michael D ThomasllDKevBank.com KeyBankOms. Table of Contents ExecutiveSummary.....:...................................................................................................2 Section III. Minimum Qualifications..................................................................................a Section V. Scope of Services.......................................................................................10 Section VIII. Banking Services Questions/Statements...................................................59 Section IX. Statement of Bank Qualifications.................................................................93 Section X. Non-Collusion Affidavit Certificate................................................................94 Attachment A—Bid Sheet..............................................................................................95 Appendix......................................................................................................................105 • Premium Availability Schedule • Premium KeyCapture Availability Schedule • Sample Safekeeping Reports • Credit Advice • Maturity Notice • Custody Receipt • Activity Statement • Verification Statement w/Market Value • KeyCorp Statement of Recoverability • KeyCorp Statement of Security Controls.. • Sample Implementation Plan • Required Reports • Merchant Services Statement:How to Read Your Statement Guide • Sample Account Analysis Statement. • Sample Corporate Bank Statement. • MerchantConnect Service Level Comparison Guide. • Sample Intraday Report • ACH Customer Activity Report(CAR) • ACH Batches Sent Report • Sample Return Item Report • Convenience Service Fee Program • Durbin Provisions • KeyCorp Form 10-K Financial Report(Included as a separate CD attachment to the Appendix) KeyBank Proposal of Banking services to City of Auburn Page 1 I, KeyyBank Omir. Executive Summary KeyCorp(NYSE: KEY), one of the nation's largest domestic bank holding companies with assets of$93.8 billion, provides: investment management; retail and commercial banking; retirement;consumer finance; healthcare; and investment banking products and services to individuals,corporations, and government and non-profit clients throughout the U.S. Key overview With roots dating back more than 160 years, Key is a fusion of many banking and financial companies. In 1994, two of its most prominent Key at a Glance predecessors—Albany, New York-based KeyCorp and Cleveland, Ohio- based Society Corporation—merged and established headquarters in Downtown Cleveland. Since then, Key has continued to grow through ' employees numerous acquisitions,adding clients, locations and expertise. 994 full service branches 1,287 ATNIs Today, KeyCorp is governed by a board of directors under the leadership of CEO and Board Chairman Beth E. Mooney and is organized as employees follows: 95 full service brinclies • Key Commte Bank—Includes those business units that operate 109 ATMs from offices within and outside of Key's 14-state branch network. Its reach extends across the U.S.and to more than 30 countries. Benton Corporate Banking includes: Public Sector, Real Estate Capital and Chelan Corporate Banking Services; Equipment Finance;and Institutional and Capital Markets. Grant Island King • Key Community Bank—Includes the consumer and business Lincoln banking organizations associated with the company's 14-state Skagit branch network The branch network is organized Into the following San Aian geographic regions: Great Lakes, Northeast, Northwest and Rocky Snohomish Mountains. Stevens Key's commitment to the public sector 0 Whatcom . Yakima We are committed to helping our clients run their businesses better every day. Delivering effectively on this mission requires us to understand our clients and their needs at a very detailed level.The challenges you face in the constantly changing economic environment are often completely 98002 unlike those encountered in the corporate arena. Key's dedicated Public Sector Team understands these challenges, because we work with public organizations every day—exclusively. We understand your goals and obligations, because we share your commitment to supporting the needs of the community you serve.And,our dedication to service is more than a philosophy.We make frequent, significant contributions,to a highly diverse range of organizations.It's just one of the many defining characteristics that set Key apart from other financial services providers.You can see it in our support of education,the arts, healthcare, and other vital services that serve our communities. Key in the community At Key,we are committed to our purpose of helping our clients and communities thrive. Our employees care about the communities where we live and do business,which is exemplified by the numerous ways we strive to make a difference. KeyBank Proposal of Banking Services to City of Auburn Page 2 KeyBank0ow. O�O That commitment is clearly demonstrated each May when Key employees head Into our communities across the country for the annual Neighbors Make the Difference Day. Yet,our community involvement reaches far beyond a single day. neighbors make the difference Our economic development and community reinvestment activities consistently receive industry-leading ratings. In fact, Key earned its eighth consecutive "Outstanding"rating from the Office of the Comptroller of the Currency(OCC)on the Community Reinvestment Act(CRA)exam. Key is the only national bank among the 25 largest to achieve this distinction eight review periods in a row,since the Act's passage In 1977. Key's commitment to the community and social responsibility takes many forms—from charitable contributions to volunteerism and civic leadership—but in Key's long history of involvement in Greater Seattle,one thing is always consistent:we support programs and initiatives that focus on economic empowerment,workforce development,financial education,and cultural diversity, Our employees serve on nonprofit boards and volunteer for local organizations that improve the quality of life forall. Key's Community Development Banking group invests in creating success for individuals, small businesses, and neighborhoods in low-to moderate-income areas.And through sponsorships,we support the community by underwriting seminars,conferences, forums, art exhibitions, neighborhood capacity- building, and area colleges and universities that help define our region. • Key's Seattle Market employees serve on 92 nonprofit boards and donate several thousand hours of volunteer time to assist these and other organizations each year. • KeyCorp entered Washington State in July 1987 by acquiring Seattle Trust Savings Bank($704.3 million in assets and 25 offices)and first Northwest Bancorporation($108.9 million in assets and six offices). • Key'contributed$850,000 to approximately 250 area nonprofits in 2013. • Key partners with nonprofit organizations to provide financial education programs across our region. Some of the community organizations that Key supports with philanthropy and sponsorships: • American Red Cross • Seattle Mariners • ArtsFund • United Way • Boys and Girls Clubs University of Washington • Broadway at the Paramount • Washington State University • Junior Achievement_ Wing Luke Asian Museum • Low Income Housing Institute Youth Force,a program of Boys&Girls Clubs • March of Dimes YWCA Key's financial strength Key's third quarter reflects solid core results, strong credit quality and disciplined capital management Our reported results were negatively impacted by lower gains from principal investing and leveraged lease terminations as well as efficiency and pension charges. This also impacted Key's efficiency ratio which increased to an adjusted 66°x6. Here are some highlights of our results: • Key delivers on relationship-based strategy. Core revenue trends were stable both quarter over quarter and year over year. Compared with the third quarter of 2013,average loans increased 5%, driven by growth in commercial,financial and agricultural loans(up 11%).Average loans compared to the second quarter of this year increased slightly,with loan growth strengthening late in the third quarter.The number of retail clients grew, KeyBank Proposal of Banking Services to City of Auburn Page 3 KeyBank Own. sales productivity improved across both the Community Bank and the Corporate Bank,and we saw positive momentum in several of our fee-based businesses where we've made significant investments. Key closed the acquisition of Pacific Crest Securities during the quarter,adding an important new industry vertical and underscoring our commitment to be the leading corporate and investment bank serving middle market clients. • Continuous Improvement efforts further reduce core expenses. Our continuous improvement efforts reduced third quarter expenses by 2%from the prior year.Core expenses were well controlled and continue to decrease.This is a direct reflection of the hard work that is being done across our organization. For example,several businesses are using Lean Six Sigma tools to streamline processes and drive greater operational efficiency and effectiveness.Cost savings gained from such projects not only enable future investments but help drive positive operating leverage. • Credit quality reflects strong risk management. Key's asset quality remains strong—at historic levels-with net charge offs down 16%year over year and non-performing assets down 28%from prior year.This,along with high quality new originations, underscores that we remain disciplined with loan structure and our relationship focus. • Disciplined capital management benefits all shareholders. Key repurchased$119 million common shares in accordance with our 2014 Capital Plan.At the same time,we maintained our strong, peer-leading capital position with estimated Tier 1 common equity of 11.26%. These actions position Key to have one of the highest shareholder payout ratios among our peers for the second consecutive year. Key's comprehensive solution for the City Key takes a holistic approach to receivables,payables, information management, and liquidity and funds management.We will continue to help you collect funds faster, reduce fraud, minimize payables outstanding, and optimize your bottom line through effective funds management: Based on our understanding of your RFP,and our valued relationship with the City, we recommend: Account Services/Structure Key will establish and maintain accounts as necessary to best accommodate the City's operations. Key will work closely with you and will continually consult on ways for the City to maximize daily cash positions and ensure cash is invested strategically as soon as possible. To streamline and manage the flow of funds most effectively,we recommend that the City maintain a zero balance account(ZBA)structure.This creates disbursement efficiency and provides an excellent audit trail for debit and credit transactions. Demand Deposit DDAs provide unlimited access to your cash and can be coupled with a wide range of Accounts cash management services,providing the City with both liquidity and funds management. Zero Balance With Key's ZBA solution,the City can link its checking accounts to a master account Accounts centralizing cash for maximum use while maintaining the integrity of existing subsidiary accounts. Receivables We understand that accelerating cash flow through the above account structure is an essential element to realizing successful financial performance.This will be accomplished by managing effective solutions and processes that decrease collection cycle time and minimize collection float. KeyBank Proposal of Banking Services to City of Auburn Page 4 KeyBank 0mv. We offer a full range of depository services through our highly secure Tacoma cash Cash Processing vault and convenient branch locations—deposit processing,currency/coin verification for incoming deposits and preparation of outgoing coin and currency orders. We provide night depository services via our branch and cash vault locations.Cut-off Night Deposit times are dependent upon the branch or vault location.All Kent,WA KeyBank branches have night drop depositories. Key's returned payments solutions can increase the City's collection rates and Return Items decrease check fraud,including next-day notification with images and multiple check re-presentment formats. Our service offers an end-to-end receivables process,using Lean Six Sigma Lockbox Processing methodology to expedite the conversion of receipts into working cash.Key's information delivery channels provide up-to-date details to keep the City well informed. With Merchant Services Key Merchant Services,the City will be able to conveniently accept and process multiple payment types onsite—credit card,debit card,gift card and check Payables Integrated treasury solutions can enhance your organization's payment strategy. With Key's efficient, customizable paper and electronic payment services,the City will get the control it needs to successfully manage all payment functions,from the straight-forward to the complex. The Key2Purchase card program provides access to business expenses through Key2Purchase Card standard and custom reporting,as well as real-time controls all through a centralized online platform. With Key's ACH services,the City can easily automate any payment,from payroll, ACH Transactions dividend and pension payments to expense account reimbursements and vendor payments.You can also pre-authorize debits,streamline repetitive transfers,and make federal and state tax payments. Key's solution can help you manage wire transfers in a secure environment with Wire Transfers same-day settlement.Wire transfers will be integrated with the City s broader accounts payable function through our online banking system and you can designate multiple user access levels and requirements. With quick access,our Image offering acts as a strong complement to Key's account Check Imaging reconcilement service.Within seconds,the City can conveniently view,print and email its paid check images while archiving safely and efficiently. Information Management In addition to fraud protection,we know that accurate and convenient insight into daily funds management is essential to making well-informed and sound financial decisions. Key's suite of online tools feature customizable, user-friendly interfaces and robust security measures-all with 24/7/365 access. Our secure environment provides the City with several layers of protection including, but not limited to: log-in,one-time passwords, access times, authorization limits, security questions, secondary authorizations, and integrated fraud management. Information The City can monitor previous and current day account activity and quickly accesses Reporting the information needed to make critical business decisions and optimize cash— standard and customized reports,statements,research,and image retrieval. KeyBank Proposal of Banking Services to City of Auburn Page 5 KWUnk0ow. Our online tools allow you to accelerate cash posting,simplify exception management Receivables and payment collection services—return item management and ACH and wire collections. [Keys efficient and secure tools streamline payments processing and maximize cash— Payables electronic funds transfers through ACH and wire;and check management to transfer funds and monitor cash flow. Account In addition,Key offers a system that significantly reduces end-of-month activities.Our Reconcilement Plan plans provide foundational reporting tools that work with a complete set of [disbursement solutions. Within seconds,our online imaging solution allows you to easily search,view, Check Images download,and archive its check images.Short-term images are retained for 90 days land long-term images are retained for seven(7)years. Fraud Prevention& The City can protect its assets with tools to monitor,detect and prevent fraud—EPA, Security UPIC,dual controls,online security,and audit reporting. KTT Mobile provides a convenient and secure way to approve payments,decision KTT Mobile Positive Pay items and view account information with entitlements that you already [have access in Key Total Treasury,by using your smartphone. Fraud and Abuse Safeguards The threat of fraud often centers on the continually evolving technologies used to conduct business and online banking. In the 2014 Association for Financial Professionals(AFP)Fraud and Control Survey,71% of respondents said they had experienced attempted or actual payments fraud in 2012. For the safety of the City and all of our clients, Key is committed to investment in prevention and detection, using both technical and non-technical advancements. With these statistics in mind, we offer the products and services below to mitigate such instances: Electronic Payment In addition,our Electronic Payment Authorization service will enable you to identify, Authorization fitter and block unauthorized debits,helping you safeguard checking accounts against loss_ Universal Payment An added layer of protection to Electronic Payment Authorization,Universal Payment Identification Code Identification Codes will allow the City to receive electronic payments without exposing Information that can leave you susceptible to fraud. Key offers three layers of positive pay to protect you.Positive Pay,Payee Positive Pay and Teller Positive Pay.Key is one of the only financial institutions to offer Payee Positive Pay Positive Pay review through the internal,through the teller line,and on your ARP reports.Payee Positive Pay is designed to safeguard you from fraud related to payee name alteration.Teller Line Positive Pay allows Key to stop fraudulent items from being presented at a Key branch location Additional Services(Desired Options) The following solutions are optional services the City is considering: Funds Management Key provides necessary and required services to assist the city in managing its funds. Investment Custody We offer a full array of liquidity solutions through traditional bank deposit accounts,investment sweeps,money market accounts,and customized investment alternatives to help you achieve your short-term goals. KeyBank Proposal of Banking Services to City of Auburn Page—6 KeyBank Ow SAWWp7ng Our Safekeeping Department provides custodial services for fixed income securities which include security delivery,distribution of principal and interest proceeds and 1099 reporting. To further streamline and automate the City's processes,we would also like to recommend the following optional solutions, which are designed for easy integration with the above offerings. Key's online remote deposit capture system can help eliminate time consuming trips to Check 21— the bank,improving the City's employee productivity while Increasing potential for Remote Deposit interest income.We offer one of the latest same-day deposit cut-off times(8:00 p.m. PT). Merchant Services With Key Merchant Services,the City will be able to conveniently accept and process multiple payment types onsite—credit card,debit card,gift card and check. The Key2Purchase card program provides access to business expenses through Key2Purchase Card standard and custom reporting,as well as real-time controls all through a centralized [online platform. In Conclusion The recommendations presented in this proposal outline initial ideas to consider as a result of the information provided within the City's RFP. Upon contract award,we will work with you to further customize these offerings to best meet your specific financial needs. Thank you and we look forward to collaborating with you. KeyBank Proposal of Banking Services to City of Auburn Page 7' KeyBank0ow. Section III - Minimum Qualifications To be considered for selection,financial institutions must meet at least the following minimum qualifications: A. Authority to offer banking services.Institution must hold a charter from either the United States Government or the State of Washington. Key is a federally chartered financial institution. B. Access to the Federal Reserve System.Institution must be a member of(or have access to) the Federal Reserve System and have access to all Federal Reserve System services. Key is a member of the Federal Reserve and has access to all its services. C. Legal Compliance.Institution must be in compliance with all applicable laws,rules, regulations,and ordinances of the City of Auburn,the State of Washington,and the United States. Key is in compliance with all applicable laws, rules,regulations,and ordinances of the City of Auburn, the State of Washington,and the United States. D. Public Deposit Protection Act.Institution must be a Washington State qualified depository for public funds and must be In compliance with the Washington Public Deposit Protection Act (RCW 39.58). With nearly 156 local full-service branches and more than 1,490 employees in the area, Key is one of the largest public depositories in the State of Washington. Key also has three local headquarter offices in Seattle, Bellevue, and Tacoma and is approved by the PDPC as a qualified public depository in accordance with(Chapter 39.58 RCW). E. Local banking office.Institution must have an established office or local branch within the City of Auburn. Key has five branches located within five miles of the City. 1 Auburn Branch 0.0 miles away 1 East Main St � Auburn,WA 98002 9 a.m.-5 p.m.,Mon-Thu ; 9 a.m.-6 p.m.,Fri Wood ant Beach 1 2 Federal Way Branch I 3.9 miles away i 32400 Pacific Hwy S Federal Way.WA 98003 SOJ 1rm• s`i"L 167 9 a.m. 5 p. 9 a.m.-5 p.m.,Mon-Thu 9 a.m.-6 p.m.,Fri 9 a.m.-1 p.m.,Sat s OR1'H EAST 3 Kent East Hill 4.7 miles away tuna 10304 SE 256th St ,a �djf Kent,WA 98030-6414 -- --- Pacific 253-850-6930 -- - -------- 9:00 a.m.-5:00 p.m.,Mon-Thu Milton 9:00 a.m.-6:00 p.m.,Fri KeyBank Proposal of Banking Services to City of Auburn Page 8 KeyElankOmm. 9:00 a.m.—1:00 p.m.,Sat I -I t 4 Unewood Milton 5.1 miles away 1000 Meridian E Milton,WA 98354 253-927-2354 9:00 a.m.—5:00 p.m.,Mon-Thu 9:00 a.m.—6:00 p.m.,Fri 6 Kent Meeker Street 5.2 miles away 505 W Meeker St Kent,WA 98032 253-859-4080 9:00 a.m.—5:00 p.m.,Mon-Thu 9:00 a.m.—6:00 p.m.,Fri KeyBank Proposal of Banking Services to City of Auburn Page 9 Keyl3ank Onw. Section V - Scope of Services General Information The City of Auburn is soliciting proposals for a primary banking relationship with a financial Institution which operates an office within the city limits.The City will be contracting for the following general services for a four year period beginning no later August 2015 and ending four years later.At the City's option,,a two year extension will be permitted with the same terms and conditions of the original contract or as amended. The following is a listing of mandatory services the City requires of Its financial institution: • Demand deposit checking accounts; Key can provide Demand Deposit Accounts MDAM as necessary for the City's general account needs.The City will be able to issue checks, make deposits, and initiate electronic transactions such as ACH and wire. • Nightly account balance sweep; Our Automated Sweep Solutions can ensure that the City's excess dollars are put to,good use.And, if you're looking to minimize excess balances and maximize return on available funds,then our simple, cost-effective automated solutions offer the City simplified investing with idle funds each day and competitive retums without compromising stability or liquidity. In addition, Key can provide Zero Balance Accounts(ZBAs)to the City,which will allow you to link checking accounts to a master account, maximizing the availability of your funds. A ZBA will centralize the City's cash for maximum use in the general or other lead account(to be determined by the City). • Banking supplies; We will with the City to provide banking supplies through our preferred third party vendor, Superior Press.Superior Press has been providing,financial printing and banking supplies for more than 70 years. • Interim financing and overdraft protection; Key Public Sector Group serves as a single, integrated idea source to help you meet your unique financial goals and objectives. Supported by the capital of one of the nation's leading financial institutions, we offer a complete spectrum of financing solutions designed to support public entities operating within a tax-exempt environment. Key will review all financing requests by the City and offer the City competitive rates to meet your financing options-, • Payroll direct deposit; Our Direct Deposit Service allows the City to pay its employees or retirees electronically using ACH, regardless of where the payee bank accounts are located. Employees are paid through direct deposit as long as they maintain a checking or savings account at an institution that is a member of the ACH network. • Trust services; Key exited the trust services business due to the specialized nature of these offerings.We recommend that you stay with your current provider. However, we are happy to assist the City in establishing retainage accounts as necessary. KeyBank Proposal of Banking services to City of Auburn Page 10 i I i KeyBank Onw. • ACH debit services; The City can continue to use Key's ACH Service to initiate debits and credits. In addition,we offer the ability for the City to originate direct deposit of payroll,vendor payables,and tax payments online through this service. • On-line balance reporting; With Key Total Treasurv, our 24-hour Internet-based delivery channel,the City can continue to initiate transactions and obtain accurate, comprehensive information reporting and account maintenance functions for all its information reporting and treasury management processes.This includes ACH, wire, and stop payment transactions and information. • On-line stop-pays; The City has the ability to place and reverse Stop Payments online using Key Total Treasury.The stop payment system is available between 5:00 a.m.and 3:00 p.m. PT. • ACH reporting; Key's ACH reporting tools, via Key Total Treasury,enable the City to efficiently manage the payables and receivables process, plus provide the ability to streamline information around transmissions,ACH returns, rejects, and other critical notifications. • On-line wire transfers; Our online Mire Transfer Services,via Key Total Treasury,will continue to provide the City with a highly secure,electronic payment solution, including same-day settlement of both domestic and international transfers, • Lock box service; Our service offers an end-to-end receivables process, using Lean Six Sigma methodology to expedite the conversion of receipts into working cash. Key's information delivery channels provide up-to-date details to keep the City well informed. • Positive-Pay on Checking Accounts; The City can continue to use Key's multiple levels of Positive Pav, including Next Day,Teller Line, and Payee, to strengthen its audit controls by comparing items presented for payment against check Issue information. • Night depository services; The City will continue to have access to our Night Depository Services through your local branch as well as via branches,ATMs and cash vault locations throughout our network of offices. • On-line image retrieval; Within seconds, our online imaging solution allows you to easily search, view,download, and archive its check images. Short-term images are retained for 90 days and long-term images are retained for seven (7)years. • Automated vendor payment services(ACH); KeyBank Proposal of Banking Services to City of Auburn Page 11 KeyBank' . The City can set.Auto Recurring Transactions—recurring transactions that are set to occur automatically.With one single entry,transactions will occur at the frequency and interval programmed for as long as the system is programmed for that transaction. • Account reconciliation processing(ARP); Key's Full ARP Service will continue to provide the City with an automated,electronic solution that contains detailed checking account information to facilitate a quicker and more efficient reconcilement each month. Our service expedites the City's internal reconciliation,streamlining back office processes. • Excellent customer service&response;single point of contact Key takes a long-term relationship approach to serving our clients,and we will continue to provide a high quality team in order to offer the City the best possible customer service. As one of Key's most valued relationships, we are able to offer our most compelling solution combining best in class pricing, highly customized and innovative solutions,a team of dedicated Industry experts,and ongoing"white glove"customer service delivered by dedicated local personnel. Your designated Key Team will continue to be available to the City for one-on-one meetings and service. In addition, our incomparable Commercial and Business Banking Center(CBBC)will continue to provide a centralized source for resolving issues. Debbie Rivetts,the City's Senior Client Manager win provide daily customer service for any banking questions, changes or needs.As the City's day-today contact Debbie will: • Serve as the liaison with our all internal processing groups; • Be a vital member of the implementation team to ensure smooth set-up of new services and users; • Respond to any questions the City might have about their services, accounts,or account analysis; and • Work closely with our ACH and Wire departments. Auburn utilizes a check system,as opposed to warrants.The City anticipates that proposed banking services will be compensated either by the credit earned on average collected balances or CD,or a fee for service basis,but Is also willing to consider other options. Key will continue to provide the services listed above. The following is a list of optional services the City may require: • Check 21 or similar expedited payment options; Key Capture(Remote Deposit) With Key Capture, the City can make check deposits from the convenience of your office,whenever it fits your schedule. Expedite — deposits, reduce float and simplify your deposit strategy. Key Capture eliminates daily bank runs and allows you to meet extended deposit deadlines. In addition,electronic deposit processing allows you to transmit deposits any time during the day—not Just during deposit window hours. Key Capture supports a consolidated banking relationship and reduced banking fees—because your location(s) pose no barrier. KeyBank Proposal of ranking Services to City of Auburn Page 12 KeyBank Omw. In order to use Key Capture,all you will need is a small desktop scanner,a PC, and a broadband Internet connection. Both consumer and business checks can be deposited electronically through Key Capture and up to 300 checks can be included in each deposit. You will simply enter the expected deposit amount, scan the checks,and balance the deposit, then electronically transmit the deposit to Key. First, you will gather your checks and enter the expected dollar amount of your deposit. Next,you will scan the items you wish to deposit. Key Capture will automatically read the dollar amount of each check and help you correct any items that are not legible. Key Capture's duplicate detection and image quality tools will ensure the same check isn't deposited twice. If you wish, you may key-enter transaction information for each check,such as invoice or customer number. Once it is in balance with the dollar amount you entered at the beginning of the deposit, a virtual deposit ticket will be created.The deposit will then be securely submitted to Key for prompt ledger credit. Once your deposit is transmitted, the City may securely retain the original check for an amount of time you deem appropriate.After that, you can destroy the checks using your secure procedures for destroying sensitive documents. Reporting Key Capture will provide automatic acknowledgement that your files are received as expected, eliminating the need to double-check transmissions.This acknowledgement will appear on the Web application after the deposit has been transmitted. In addition, Key Capture can also provide the City with daily a-mails that contain detailed information from each deposit.This file can be downloaded into a number of applications. Check images and deposit details are stored within Key Capture for a period of 45 calendar days. Key also offers an online long-term Deposit Image Archive(up to seven years). The City will have the ability to view current and previous day deposit activity on Key Total Treasury, our 24-hour, Intemet-based delivery channel. In addition, Key Capture features on-demand reporting access with real-time deposit details. to.nk Key Captur6* _j r-ra.v of o,..k Chmk lnfarmation i•Z• wr•cu vrr kw tl.0 Ftb—am !1. 1.).–I L[]r\ —•ty 7.rwr e..es>m.n..r_s.a.ew ve tenet nam ee e�nnt ro..e..nu he.r 11i� a sdFi.OQ onar_ �l y_a p�nrt 001..r�- Y•- �eTS .•r_ �S�'rtpl� •eo-.aa1313e95.3 a&4b16ar►164&ar svaa Back c*C2 a -- eu C]noN C'+ccK • Courier services; The City can use your existing armored courier service to make vault deliveries, or we can bid on KeyBank Proposal of Banking Services to City of Auburn Page 13 KeyBank e your behalf for services with our recommended vendors. Should you choose to use one of these couriers; the contract will be between the City and the vendor. • Armored car services; The City can use your existing armored courier service to make vault deliveries, or we can bid on your behalf for services with our recommended vendors. Should you choose to use one of these couriers; the contract will be between the City and the vendor. • Creditidebit card services(Merchant services) Merchant Processing Key Merchant Services(KMS)delivers end-to-end payment processing services and state-of-the-art transaction processing products;and we handle every aspect of the service relationship—transaction processing account set up, risk and underwriting, funding and settlement,equipment deployment, chargeback management, reporting, and customer service. Our customers can also count on us to keep their payment processing compliant with changing payment industry security requirements. Payment Cards suppanoa: Additional Services: Debit Nottvorks: vise • Electronic chock V"lleegon and Guarantee • Amol MasterCard' Service—Point of Purchase(POP),Accounts • AFFN • Amenean Esprese Receivable Conversion(ARC).Back Ortfce • Alaska • Discovers conversion(BOC),and In certain Instances, Option • Diners club® Internet(WEB).Telephone(TEL), • CU24 • ice and Prearranged Payment and Depoea(PPD) • Intenink • Debit Carlo(signature and PIN-based) Enterprise Ming Sokdlons—includhtg Internal, • Maestro • EWdnmk Sensnts Traveler(EST) CSR/Admin,IVA(English and Spanish),and -• NETS Petroleum Services Wduding Fleet Cards Integretad Point or Sale • NYCE • 'Corporate Purchasing Cards 1,1111111 Programs Pulse Electronk Gin Cards(EGC) • Comanisnee Fee tvlodek Shumn • Sin Payment(Pinlass Debit) STAR • Wirohm Services • contwim Serdoes • No Signature Reoulred Program Services Key has partnered with Elavon, Inc., an industry rated third party payment processor. Elavon has built redundancy into its stratus transaction authorizing and processing systems,which regularly achieves 99.8% uptime and extends peace of mind during peak sales seasons. • End-To-End Ownership—Elavon processes both front-end authorizations, back-end settlement, and all supporting operation functions in-between, so we have one source for all of your payment processing and service needs. • Dedicated and experienced employees deliver products,services and support with an accuracy and clarity that is second to none in the retail payments processing industry. Our dedicated, knowledgeable 24-hour Customer Service team is able to answer any questions you may have regarding your processing. • Flexibles Payment Options—You can count on Key Merchant Services to deliver value-added processing services like electronic gift cards and electronic check conversion. • Connectivity—Our processing partner is not a one-size-fits-all processor. Our Solutions Implementation team will work with you to determine the best-suited and most cost-effective method for processing on our network. Our processing environment uses a fault tolerant stratus infrastructure that provides the necessary redundancy required in this industry.The front end processing systems are comprised of load balanced Stratus V series computers. The system is designed to ensure system integrity and uninterrupted availability. Online Merchant Services Reporting$Support Tools Monitor your account around the clock from any web browser through Key Merchant Services'online account access tools. You can access all the information you need to manage your electronic KeyBank Proposal of Banking Services to City of Auburn Page 14 KeyBank Our payment activity and obtain critical information that can have a big impact on your bottom line_Gain the benefits of real-time customer service, without having to pick up the phone. Our reporting tools enable you to display recent deposits,view chargebacks and retrieval requests, access customer support and more in a convenient, secure environment. Basic online account access is free to all Key Merchant Services customers. Your account comes with a single log-on to access information for a single Merchant location.You can view up to six months of past statements,chargeback and retrieval reporting, as well as batch reporting for up to 30 days of settled batch activity. You can also link to report sites for our Electronic Gift Card and Electronic Check Service Programs. Enhanced information is available through the premium access level of MerchantConnect,our most comprehensive, versatile reporting solution.You can access a year's worth of reporting information on multiple MIDs and"drill down"into your data to view batches of transactions grouped by card type or batch reference number. Hierarchical reporting allows you to aggregate data from multiple locations. Raw Data File Delivery For large merchants with multiple distribution channels or complex reporting hierarchies that require specialized reporting capabilities, Key Merchant Services'ACS(Automated Customer Service)raw data reports provide detail which is easily exportable to extemal applications for additional data management and reporting. With ACS, you can easily retrieve detailed reports with data for multiple locations, including transaction activity, statement detail,and card type history ACS offers a comprehensive list of available reports. Custom Reports For merchants with specific reporting requirements, Key Merchant Services offers a full roster of custom solutions. You can receive in-depth analysis of virtually any information that you might need, from any time period, in any format. Data can be summarized or detailed through a variety of hierarchies—from chain,to region,to store and to individual batch. Integration with enterprise systems eases overall accounting functions. Security We take the security of our data, systems,employees,and locations very seriously. In order to safeguard the merchant and cardholder data both electronically and in hard copy, Key Merchant Services utilizes a combination of firewalls, intrusion detection systems,data loss monitoring prevention systems, data encryption,file integrity systems,access controls, patch management controls and physical security controls to ensure unauthorized users do not access systems or data. Similarly, to monitor the network, we detect systems and monitor internet traffic,as well as network and host-based'controls. Such controls are also used to monitor performance and stability. We are subject annually to audits for. Statement of Accounting Standards 70(SAS70); Sarbanes- Oxley;Gramm-Leach-Bliley(through the Office of the Comptroller of the Currency), and Payment Card Industry(PCI)compliance. Our physical security procedures are monitored and audited by Visa, MasterCard and the Office of the Comptroller of the Currency(OCC/US Government)per standard banking/financial regulations. Fraud Control Protecting a business against fraud and other losses is becoming an increasing challenge. We have built extensive fraud monitoring and control features into our network, Elavon, its products and its operations.The network uses a robust set of risk management and fraud prevention tools via a KeyBank Proposal of Banking Services to Cfty of Aubum Page 15 i KeyBank 0mv. proprietary Advanced Risk Management System(ARMS). ARMS contains empirically derived scorecards that identify risk prior to and post merchant funding, in addition to a business rules-based engine that triggers merchant risk situations for review by investigative analysts.The ARMS.system is designed to protect the network's financial exposure and, in turn, provides added protection for the network's merchants. In addition to ARMS monitoring,the network has numerous other fraud control procedures and exception based reporting aimed at protecting the merchant and the network from exposure to losses. Additionally,the network can and does provide education for merchants on fraud trends and methods. Customer Service and Support In addition to your primary KeyBank Relationship contact, Key Merchant Services employs a focused and multi-pronged approach to strategic management of your merchant account relationship. Customized service level offerings are based on customer needs. Key Merchant Services'customer support and help desk is there whenever you need it. For routine services, Key Merchant Services operates a call center for voice authorization and client assistance that is supported by a dedicated and well-trained staff of service professionals and is available 24 hours a day, 7 days a week. Further, if you have a special need, you may page a Client Support Specialist at any time.This individual will take care of your concerns personally or will refer you to a specialist. • Investment safekeeping services The KeyBank Safekeeping Department currently provides custodial services for fixed income securities,which include: Fed and DTC security delivery,distribution of principal and interest proceeds and 1099 reporting. This service is currently provided to over 150 clients,of which nearly half are public/govemmental entities.The remaining accounts consist of correspondent banks and corporations.Assets under custody totaled$1.7 billion as of 3/31/2013. • Purchasing cards Key is able to provide purchasing card payments for the City and associated vendors. Key2ftmhase is a cost-neutral, one-card solution that streamlines the purchasing process by reducing or eliminating the time and expenses associated with purchase orders,check requests, petty cash,and other components of the purchasing cycle. It provides access to business expenses through standard and custom reporting,as t well as real-time controls—all via a centralized online platform. Our program includes a multipurpose commercial card solution with the flexibility to be used as a purchasing card, travel 8. - expenditures(T&E)card, electronic AP card, or a combination of all card types. • Purchase or Vendor Card—Purchase card designed for use by accounts payable departments to purchase general goods and services • Single Use Ghost Account—A one-time use virtual account number provided to vendors for invoice payments • Employee T&E Card—Corporate card designed for use by employees who frequently incur travel and entertainment expenses • Combination T&E and Purchase Card—A customized program that combines the features and functionality of all cards into a single solution;all card types can be managed on the same platform KeyBank Proposal of Banking Services to City of Auburn Page 16 KeyBankOmw. The Key2Purchase card program can fully support your traditional purchase and T&E capabilities, while also providing industry leading AP automation functionality,card management and transaction reporting. • Key2Purchase.com provides real-time tools to manage spending, access, usage,fraud and audit reporting controls • Transactions can be automatically mapped to financial codes by Account.Number, Merchant Category Code(MCC),Merchant Name,etc. • Increase operational efficiencies with automation and the integration of card data in ERP/accounting system + Improve supplier relationships by accelerating payments with detailed remittance data • Increase revenue with rebates based on spend volume • Multiple payment options:Automated Clearing House(ACH),wire transfers,and online payments • Real-time spend alerts • Built-in online expense reporting and approvals for your T&E program • Worldwide acceptance via MasterCard®with: MasterRental®Insurance/CDW, Purchase Assurance, MasterAssist®travel Assistance Services, and.Extended Warranty Insurance Our MasterCard branded commercial card program,works in conjunction with our web-based reporting tool, Key2Purchase.com. Key2Purchase.com is a web-based reporting system supported by the Encompass platform.Key has partnered with AOC Solutions and Hewlett-Packard to provide this industry-leading management platform that offers real-time card control, transaction reporting, cost allocation,workflow management and GL interface. We work with AOC Solutions to provide the Key2Purchase.com Program Administration and Reporting System, using Hewlett-Packard as our processor.AOC has 11,000-plus clients today on our platform in various verticals(not limited to)from Fortune 500/1000,energy and utilities, healthcare, public sector, higher-education and non-profit. Key will provide a standard file format which the City can use to format the AP file export from the City's existing AP platform. In the event the City cannot code to this file standard, Key will work with the City to create a custom AP file extract that works for both parties.Our platform supports a variety of standard core file formats or can accommodate the use of any custom layout Reporting Key2Purchase.com is a web-based reporting system, fully hosted and available 24/7. Our ability to offer a single sign-on that supports distributive card, electronic payables, and T&E will allow the City to manage multiple programs all while ensuring roles-and permission-based logic. With our leading electronic payables technology, Key2Purchase allows for the most automatically reconciled program. Key2Purchase,com provides a variety of standard reports that provide volume spend by merchant name, MCC, date,cardholder,etc.,and the ability to create your own ad-hoc reports with the Report Wizard.Within the Report Wizard,all the data fields that make up a transaction, including Level 3 data,can be selected and used to pull meaningful information. Our standard reports currently available include: • Accounts Report—The Accounts Report shows accounts with credit limit,current balance, and current statement amounts.A sample Accounts Report is included in the Appendix for your review. • Expense Loa Report—The Expense Log Report shows transactions with financial code breakdowns by cardholder.A sample Expense Log Report is included in the Appendix for your review, KeyBank Proposal of Banking Services to City of Auburn Page 17 KeyBank Oww. • Transactions Resort—The Transactions report displays a list of transactions by card holder.A sample Transactions Report is included in the Appendix for your review. • Transactions with Purchasing Detail Resort—The Transactions with Purchasing Detail Report includes information provided In the Transactions Report, along with purchasing line item detail.A sample Transactions with Purchasing Detail Report is included in the Appendix for your review. • Users Report—The Users Report provides basic user information.A sample Users Report is included in the Appendix for your review. • Accounts Payable Merchants Report—This report displays basic information about Accounts Payable Merchants.A sample Accounts Payable Merchants Report is included in the Appendix for your review. • Accounts Payable Reconciliation Report—The Accounts Payable Reconciliation Report review merchant logs by transaction posting date. • Active Card Account Resort—The Active Card Account Report displays all active cards. • Merchant Loos Report—The Merchant Logs Report shows merchant logs with invoice detail and posted transactions. • MCC Summary with Transactions Report—The MCC Summary with Transactions Report total transaction amounts summarized by the MCC assigned to each transaction.A sample MCC Summary with Transactions Report is included in the Appendix for your review. Extensive reporting functions include standard and custom options and can yield valuable information to help monitor the City's spending,improve your relationships with suppliers through detailed remittance data,and help facilitate better pricing.The City will have control over T&E expense reporting, purchase card spending,transactions allocation, audit reporting needs, and the ability to update your financial system with GL extracts. Key2Purchase solution offers multiple ways for the City to reconcile your expenses monthly using our online application, Key2Purchase.com. Users with the appropriate privileges assigned to their role can search for specific card accounts using the search options: • Last Name • First Name • Account Number • Hierarchy Assigned users can also search for cards assigned to their user account, including proxy accounts. Specific transactions on card accounts can be searched by period, billing cycle or custom date period. Multiple search criteria can be selected to further narrow transaction results. Up to 20 financial code segments are available to support allocation. Reports can be generated from standard extracts(purchase card extracts)or the Report Wizard and exported in a number of formats(including Excel, CSV,etc.).Also available are custom extracts to provide all the data points you may need Key2Purchase can provide GL and other types of extracts and file feeds into the City's ERP, typically via an FTP set-up.We have provided these types of files to numerous clients in various formats to accommodate a wide range of accounting software_We will work with you to identify the types of files or extracts you will need, as well as the frequency and delivery options available. In the event that the many standard file types we provide do not meet your needs,we offer custom file coding to support all unique file requirements. Settlement Terms Billing can be setup for corporate pay or individual pay.Payments can be prepaid or paid daily, weekly, bi-weekly and post cycle with 14 days grace. Payment in full should be received and posted within 14 days after the billing cycle. Balance is KeyBank Proposal of Banking Services to City of AUbum page 18 Keyl3ank0w required to be paid in full each cycle. Statements Statements are available online via Key2Purchase.com,far both cardholder and central billing accounts. Statements are available the day after cycle ends. No physical mailing of statements is done. Controls Our program is 100% PCI compliant.To team more about the PCI certification, process and requirements, please visit pcicomplianceguide.org. In addition, stored data is encrypted based on leading industry standards. Web access is controlled through Secure Socket Layer(SSL)encryption. Key2Purchase.com is a roles-and permissions-based application. Key will work with the City to assist in setting up the initial roles and associated permissions for the Program Administrator and management level personnel. In addition, Key will help define a cardholder role as well as other required roles that may be assigned by the City Program Administrators as needed. The City will have full access to create unique or individual roles as needed,and the ability to assign permissions to each of the roles created, allowing complete customization of user access and functionality within the application.Your designated Relationship Manager and IT Lead will be available by phone, e-mail, or on-site visits to assist you with any additional set-ups, long after implementation is completed. Key2Purchase.com allows Program Administrators to: • Create Card Profiles: • Traveler • Sourcing • Admin • HR • Credit Limit Controls: • Cycle Limit • Single Purchase Limit • Daily Limit • Transaction Controls: • Transactions per Day • Transactions per Cycle Key2Purchase reduces risk by providing ektensive spending and usage controls for every cardholder. Fraud Protection We actively screen transaction activity for fraud patterns.The reporting capabilities within Key2Purchase.com allow Program Administrators to schedule reports that monitor transactions meeting conditional criteria such as transactions over a dollar limit,transactions by MCC, disputed transactions,cash advances,or monitoring of vendor ghost accounts. The scheduling of reports can be daily,weekly,or monthly and will be delivered via email.Transactions that have been disputed will be flagged within Key2Purchase.com, allowing Program Administrators the ability to report and monitor the resolution status separately from other charges,cash advances, and fees. Liability The Key2Purchase card solution is corporate liability program.The City will decide who receives a card, the credit limits on the card, and how the card should be used.The City is liable for all debt incurred on all cards and accounts.The City will be responsible for reporting losttstolen cards immediately. The City will need to follow a dispute process for any transactions that are the result of a KeyBank Proposal of Banking Services to City of Auburn Page 19 KeyBank Omm. lost or stolen card or account. Cardholders and Program Administrators can contact our 24-hour customer service department to report a lost or stolen card.The replacement card will be sent to either the cardholder or the Program Administrator based on the rules set up for the program during the implementation process. Program Administrators also have the ability to close accounts through Key2Purchase.com. The MasterCard MasterCoverage Liability Protection Program protects clients from fraudulent transactions and the association may assume the liability from the resulting loss. With Key2Purchase,the City will have the ability to semi-customize cards by"Hot Stamping" information in the top right comer of the card for a$300.00 fee.This area of the card can be used for logos, seals, Tax Exempt ID numbers,or Organization names. KeyBank Proposal of Banking Services to City of Auburn Page 20 I i I Keyl3ankOmm. Services Required Checking Accounts:The City currently utilizes two checking accounts:1)the primary checking account,which Includes accounts payable&payroll check processing;and 2)an advance travel account The institution will furnish the City with additional checking accounts as needed. Currently,courier services deliver deposits to the Institution's branch once each workday,for processing and credit to the City's account that day. NSF checks must be processed twice before being returned to the City.The basic checking account services should at least: Key will continue to provide the checking accounts listed above,and additional accounts will be provided to the City as needed. We will immediately credit the City's_accounts for all on-us checks, incoming wire transfers,and U.S. Treasury checks, Deposits received at a Key branch by 4:30 p.m. PT,or before their posted closing time,will be processed for same-day ledger credit_ In addition, NSF checks will continue to be processed twice prior to being returned to the City. Images of returned items can be provided on the Returned Item Report on Key Total Treasury to allow the collection process to begin more rapidly. Key Total Treasury is the primary client tool to view return activity through the Return Item Reporting module of the Account Management tab.Another option is through a returned items transmission(BA12 file). Both options include returns detail and front and back images of the returned items. • Provide month-end statements by the 10th day of the following month and provide statements to various auditors upon request; Monthly bank statements will be available to the City online via the Information Reporting module of Key Total Treasury on the I"business day after the statement cut-off date. Statements will remain available online for a rolling 24-month period and information will include: statement date; account number,summary of account activity for the statement period,including total additions,total subtractions,and ending balance;a list of all additions(deposits,etc.)to account, including totals; and a list of all subtractions(withdrawals, etc.)from account, including totals. Statements can also be sent via U.S. mail should the City require.A Sample Monthly Bank Statement has been included in the Appendix for your review. • Provide electronic check image retrieval on CO monthly Including necessary software; Key will continue to provide the City with CD containing check images,(mailed on the 10''business day of the month).The City can receive paid check images,reconcilement reports,and corporate bank statements through our consolidated CD check viewing service weekly.We can store reconcilement reports, corporate bank statements, and up to 20,000 check images on CD. You can search for checks using multiple criteria—paid date,check number, dollar amount,or serial/check number. Key has multi-channel lockbox image delivery options: • Images available on Key Total Treasury • Images available by direct file transmission • Images available via CD Multiple concurrent users can access images or remittance items through Key Total Treasury the same day as the deposit. • Provide Individual and consolidated monthly account analysis for all accounts by the 15th day of the following month; Key will promptly provide monthly Account Analysis to the City. Key's Account Analysis Service will provide a detailed description of all of the activity in the City's Key accounts KeyBank Proposal of Banking Services to City of Auburn Page 21 l KeyBank Om The Account Analysis Statement will give itemized information on your accounts and balances,as well as a clear summary of maintenance fees and service charges. It will also summarize all of the Key Treasury services the City utilizes. The statements are warehoused a rolling 92-month period. Analysis statements detailing the total service charges and any deficiencies,along with itemized information on account balances,service activity,and service charges,are available online via Key Total Treasury between the 3r°and 5th business day of the month.Account Analysis Statements are mailed the 5u'business day of the month. Information contained in your statement will include your average ledger balance, average float. average collected balance, the total depository and treasury management services used the total of all service charges for your relationship, and a client history that provides a summary of your balances and service charge activity. If the City requires an additional means of receiving account analysis statements, they can be sent to you as an electronic 822 tile. Electronic 822 files can be sent via direct file transmission or Key Total Treasury. • Provide an on-line wire transfer system for transferring money to other Institutions,along with appropriate security levels for wire transfer initiations and approvals; Key Total Treasury's Wire module will provide the City with the ability to create, approve, and initiate drawdown requests and one-time or repetitive wire transfers from the convenience of its own computers through easy-to-use templates continuing to provide the City with online access to a highly secure electronic payment solution. o-lr Key Total Treasury® TwbdReewm llswoxn cwaua L"M 110rnf? Into RcPvltjnp R.-CCMUlts Accouni MRrM ACH Wvex fwcjpnoisn 1­1 FAgrn, UcDogj Con 1,I__.SjV 71 suormA•sand ad d1dY New Wires Crlan wire dM Avg plea 6pum6ab 4 an baa bade®daytael,) •NOM AlwteoaldDlawde•mn 60DNA-MANET • 801"Mac &MRA.&MM" Federal tax pqy xWs: M All•M MU • MAwmtlooarYAleYakeDateDtaebewe • TM V"sae 113 Odsastd COR&a Nedao Send Dde ttabm@ad and appomd bdan 1190 PM(noon)ET "lriz! Al OUler US Ddus Sad 06.1 t8•dp eatxss Day AOFaelp CW" Sad Dae+2MW*)aMM Deya • Yew • KeyBank Proposal of Banking Services to City of Auburn. Page 22 KoAank . As an added layer of security,the City's authorized users will be manually added to the Key Total Treasury wire template access as necessary for wire template changes.The City will be able to view templates online for audit purposes. In addition, should the City decide to use our KTT Mobile service, it will provide you with the ability to view, authorize, or void wire transactions and templates based on existing company entitlements. Cut-Off Times and Reporting Options All wire initiation, regardless of type or method used,has a cut-off time of 2:30 p.m. PT.Wire transactions update approximately every 15 minutes,5:00 a.m.—4:00 p.m. PT and the following reporting options are available to the City: • Email Notifications—The type of email notification you receive will vary, based on the type of services you use and the level of authorization available to each user.When a wire matches the City's preferences, an email notification is generated. Examples of email notifications are incoming wire notification, outgoing wire notification,and wire approval pending notification. • Incomina/Outgoing Wire Activity Report—This report provides real-time information for all wires. It is available for 14 calendar days and can be downloaded or filtered based on account number, date, type code, debits or credits and dollar amount. O-w Key Total TteasUry® rw�61¢�eulm ulmoPmn caleatb t epatF Slwltflte S�Aerdc(nvfnw ' IncominglOutgoing Wlro Activity Report Umpmw�t cep.k.eta,�r�ea..�ea�.owrnls�dnr�tweAaemxyaQe��mrasreamse�s. 0 town mae lfsel � w QeMnAYn02,2D01216PM13T e!eftw Accota D•atytloo Qed 0w 60"Tee Jn02, 0 OW0MVA61351IM 1m9 F2MawyTMWU SM.13 1NANMF®1WR64MMO A kOKCOtD-VAAltBf-VAPoNCMAC.5W120= AM SPAWIM W12rt139MMOMM 216 PM EST JIn02, 00MMMSIVASM54 NlmmlpVBWTtAWN 51,1 213 TRAF M FED FURSMUKAOKCWO-EVAAROW-SPAIMYCOWAC5168270U 2W VAW M FFF&213V62ip4W00 216 FM EST Jn02, X51 Ymei-Mm"Nr3if 3216.11 MJGM FED FOR SM SK ANO 0A1 A7i0WAARWSPAWY ONACgUMA0® 2m0( SPAW M K 216 PM W • Status Report—This report provides the status of all wires initiated online via Key Total Treasury the current day, including:Trace ID,Amount, Currency,Type, DatelTime Entered, Status, Date Transmitted, Fed Reference Number,and Who Created and Approved Transactions. Information is retained for 12 months and can be conveniently downloaded as needed. It includes reference numbers,times, and other descriptive information. KeyBank Proposal of Banking Services to City of Auburn Page 23 KeyBank 0• OT Key TotalTreasury® TOWR USUM,a CWWLb LMff 5bMMm S*dffdckkVbW KTT Status Report Its G*1 -0-1 Syft7ft 248 mET rrses0 aot cm Typo fto" mterea MW Traamm raMN Crested APpMW IMMUSD M 1b456M 01MM248PYET Sert DIM= 12145 M DMA yMM U=487B374 MAMA USD W 4S M239D =010(246 PAI Er Vdd eI WJ M SM074POM MM MM 73818147487897 7902M m 8123904W QIDYm10(248PYET AtUxkdmftc;m etA7lltpOf 2tM XNSSA SUM 7di94&i948 V 79,aDm UM M 00.5 M239 CIMM248PMET ETGFSM q 0L07lJ01o( — 30Am SIM • Wire Confirmation Report—We can also provide the City with a Wire Confirmation,which offers the following information:Amount, Date,Time,Trace ID, Key Transaction Reference number, Template Number, Fed Reference Number,Status,Who Entered,Who Authorized, the City's information and the recipient's information. O-r Key Total Treasury® IrMaRuum•UUr"M oeemw w»w Domestic Me ca dlmMon 1u80051"m Ord"odm SMtLM Information TrJOMMM awn K%ft*T=UC1MapMp:er MM111 wel+eaX5W. 1214 MT101""MME IM Fad ammo emwv suet AIAAOCE51 Fd MBA Had% AM 64ndit Jo CUM AItAM11f.RMSOM N AfeWMCIC Jel42MZAPUBT AfL@e0a/ Amerneearc • Provide an on-line computer balance reporting system,with Information on collected, available and closing balances,as well as a detail of total debits and credits posted to the account for the previous day,by 7:00 a.m.each business day; Key Total Treasury offers a full range of balance reporting capabilities through its Information Reporting module which allows the City to access both prior and current day information. Key Total Treasury provides account information including activity detail,collected balances, float, and available and closing balances seven days a week, before 7:00 a.m. PT. Our reports are available for retrieval as human-readable formatted reports and/or as downloads. You can download in a CSV format to load into spreadsheets and/or a BAI2 format.The City can view or download standard and specialized reports and statements,access current and previous day KeyBank Proposal of Banking Services to City of Aubum Page 24 i K+eyBank 0e balance information, and save reporting criteria to create reports(in Excel or other formats). PDFs will also be made available to the City. 07 Key Total Treasury® Todailleamram USUCOM oWftdua t.000n sbortaa■9ded and db rbw Information Reporting Standard Reports Nevlo,e oey nouoay dodo caatom 014 you know? 1y aaeyto euataotm atonard ntpada erd eweotamtave ro oro.dl�emeeal bbdey aurnr+y deho cadam MC110teieSwebIAan DOOM WWMRIWPW jPahonm,wyou eAIIFraVICIAD yFh dew an WMnwwebdowAdInphil `view obi To IM Woft Fie dow Mor MobaA=O Roo ti o dew ON Other Reports tweetemd dew a* Corporate Banking Stament rndisweep dew filar 0 Yar�mrmtrpe rroedya►vpretymntradtriiaq¢e.Saw onwadit'stomperrorn IdImMAilaorLeammon, Zeolil roaAOOaAte dew an lkefto*W below todowriondm4lo I emmddornoraeeaae HO Oft ft Well VIEW as h"44, `VhW oum TIP IOTA—Well OAM) dew Ift lhhet Aeeountlq AlACrauta _t ILd*b°'O1� p AftPw bnmoredtoft I7 Acmabaay*-1ffiBr7BJ =J1 t�lRamde�e dew titer �ACCOIatDt7tfCtlrable-1Z3o7tCrlS6 IT ACM WeWblUdWSerylim A=rt-1m74M !J kWW&qQIq"fteAcffdy view oar Previous Day Report This report includes daily balances,transaction detail, and balance history information. The Previous Day Report displays prior day account status, account summary information,and detailed account transactions that include descriptions and reference information. Detailed information includes:Closing Ledger Balance, Closing Available Balance, Opening Available Balance, One-Day Float and Two-Plus-Day Float,Total Credits(amount), and Total Debits (amount). KeyBank Proposal of Banking Services to City of Aubum Page 25 KeyBank Own. 0-W Key Tow Treasury® Tools eReaaroea U30rQ*a oaWLIJ Leoar sbalaa.sdede ndad�wew E M1 Previous Day Reports Cum QAM=nw ®nrsaoamv (BFWra ®owreo.e Report Date:Sap 29,20XX w4row sep 3O,2=zgxn Es7 U rdftoeaA1 Total Balances O Go"Leftu 0"A"M IooyRW 2•DayFbd Tdiloem TOMMUS Nffftmoisw S24, ,7" $11,2flAUX Si],72L10m 1114587.00 f4sA17A68S7 -157.059,19173 f24,539,33990 w Account AemsWid11eu General 1200000278 Noyes*NdomArrad>bon9412o0®9 Balsam 060 Sm3101114*8 Do"u main tXr9LOW W=110 ACMCre1BS(5) 8.08931 ACNWbb(2) 317714 003*9 AVdeolo Sam (3) 118.99.38 0-h(15) 332$4934 1 Day Fiod W WM V16e Tranrlar Creda(0) SOHO RdlnW baffl Dabb(0) mm 2.DWFW 851m mA06*3()) SDm WmTrmTErr Ddb(a) SDm Tad Oda (99,427,68 ODs MW 0etee(1) 36,406D7 7EA Dates(0) 1060 Tula Debb 334.450.80 Tod Qr*&s(9) SNAT.44 Oft Mao Dabb(1) 41,72430 00 L Arabhe MW0=W S2jWM ToW Dobea(1q .S94ADA Transactions show cmd U 09EL= ftesi surd ACN Cre9 Aom Wdpll Re0rr1 1234SU B0 ==M OVAWW I1emBlgbiratm T=nC5mRa,N3m06976 M.Rd Nommmemmu 129tSH1B90 swm Intraday Report This report displays current day account status, account summary information, and detailed account transactions(descriptions and reference information). It includes controlled disbursement, lockbox, ACH, and wire transfer. Real-time data is available: Opening Ledger Balance, Holds(amount), Current Ledger Balance, and Current Available Balance. KeyBank Proposal of Banking Services to City of Auburn Page 26 KeyBank Omir. 40-W My Total Treasury® TaubaRes MM user Q%= oWWue LopV Saatpdo Seleclandc5dcvlew Intraday Reports s®wy CualomRapat L CSU Q, Aee M ®TmnWoee BP u. ®Dmwae Report Date:Sep 30,20XX wed sv 3a,2w ua=esf V tXgam AN UAeeounr.Acme Widgets General 1209500278 ayear mowwA-.owwoylzo m adOM MSTM) 002 ale, Deet sWrAndee WDLOOP 315a71,x s E*Aaossa(3) S 025 smyawoeeftol 41A.7e Hft 41,53 s LdeAOlOe (3) 3" LdeAOJ Oft C l -M-q 11I 11adFu* 49M6.77 t ouft0 S7AM.75 VftTM*WDabh(3) $10nm OrredLMW 311,Mm WhTmiftouteoo) MAn33 00vlose Deft W 32,534.93 QnotAvdit f225�?S D 07.32 TOWDebbJ13) 5T1153054 ODe MWCrad3e(4) 12,59433 Tawoeftim VIM% Transactions Show t>"u an halt . t AMM a MMV VmmevtedAOiOng i7 AMVOWRoWn VAM D67JQ/M lmalgTratsfar bwadonftf- W MIS MUM • Provide an on-line reporting system that shows current day ACH credits and debits,by 7:00 a.m.each business day.Currently the City receives property tax distributions daily through the ACH system and needs the current day information every morning to assist in making Investment decisions; Our KTT Intraday and Current Day Reports are available each business day and display current day account status, account summary information, and detailed account transactions that include descriptions and reference information.Available information includes: controlled disbursement, lockbox,ACH, and wire transactions.The report also shows summary only or summary and detail information depending on the level of service requested. ACH credits and debits are available on the current day reports.ACH transactions update at 5:00 a.m., 9:00 a.m., and 1:00 p.m. PT • Provide deposit reporting by location via an auxiliary MICR field or other means; Key accommodates auxiliary MICR field and report location/transaction information via deposit reconciliation reports.The auxiliary field can be up to 10 characters long. • Provide Positive Pay feature with exception reporting/retum of unknown items; The City will continue to have Positive Pay,our fraud detection tool that detects unauthorized check activity.This unauthorized check activity will be presented to the City on Key Total Treasury for review and allows the City to either Pay or Return the check. There are two types of Positive Pay: I KeyBank Proposal of Banking Services to City of Auburn Page 27 1 KeyElank 0ow. • Bank Match Key matches the checks presented on the City's account against the check issue file provided by the City. Options include: • Same Day Positive Pay • Next Day Positive Pay • Payee Name Verification is available for Same Day and Next Day Positive Pay. • Client Match(Reverse Positive Pay) The City matches the information from the checks presented against your check register, or by using your AP system. Options include: o Payment Protection Report via Key Total Treasury Issue File Transmissions received during the business day update our Teller system every half hour to support Teller Positive Pay and Teller Payee review. Our Teller Line Positive Pay functionality allows all valid ARP files,as well as any manually keyed items in the Check Issuance Maintenance Module of Key Total Treasury,to feed to branch teller lines in 30 minutes. The Check Issue Maintenance Module in Key Total Treasury ensures that any manually issued items can be keyed prior to disbursement to the payee should that payee go to a Key branch to cash the check. We will continue to handle the City's files through the following process: • The City will transmit to Key the account numbers,serial numbers, dollar amount,and, as an option,payee name information as checks are issued.This information will be added to our account reconcilement system. • As checks are presented to Key for payment,the information will be read and compared to the issue file from the City.We'll compare four criteria in the daily verification of checks presented for payment: Serial number not on issue file Conflicting dollar amount G Duplicate presentment CancelNoid on file • Optional criteria are also available for an advanced level of service: Payee name Stale-dated items i= Exceeds dollar limits • Checks presented to Key that do not match the City's issue information will be reported through Key Total Treasury for review and payment disposition. • The City will be able to view images of Positive Pay"exceptions"via Key Total Treasury the same day. • Provide for on-line stop-pay,look-up and notification; The City may continue to place stop payments online through Key Total Treasury's Account Management Module, providing the advantage of real-time access or can stops can be placed manually through the Commercial and Business Banking Center. KeyBank Proposal of Banking Services to City of Auburn Page 28 KeyBank Own O-a Key Total Treasury® Taareameaarrau usar CA%M QWtadUa Laeon S aim Stop Payment Entry foul am atop owmt fear mapn below. AISWV bare mfe of w", veoncom at arena CAW Is arty...—b omMm1 Woman w m wdit rd eamft ttdo mt peb. An.>feta a`r dWWw.,.ea.d eem. Ream Case` r Lm r sum r vyyt r a ai.r. MdSkPP wen+ ': a oo not mm r MMtoDelma Adar.e.p—daft[,mMmg) I'W WAR nft Aftm The stop payment system is available 5:00 a.m.—3:00 p.m. PT. For same-day action,our stop payment deadline is 3:00 p.m. PT.Stop payments submitted through Key Total Treasury prior to 3:00 p.m. PT will be updated in real-time. Key Total Treasury' Teebdllcl= useoomr: Cadedul Loead Info Reporting Recow4bics Account Mgnn ACH Well Fcrcfpnf)r2lt3 t oin Mgfrn Dc."ail Con file Ilansfet Sicil Service 2W=o SWadatWsW Stop Payment Listing �Pms1�l �� M,.eSerttt(�dermles a rep trod 8.11. Ate';1'5w-0=dAoeaat. ,,,,,,-1 Kenney.Sup p'VynledChak Raft Stat orKennChKkAmet pane 00 Up Pmed EVkdm Dare rammro 11=0 ACt Ud SIZOM 1.111EleNb J.0Z2W J.UZ2 01 remoes 11zM ACT Lost AnzWhViluff JMQz 001 imazzu ramol0 112MM ACT Lod MMAukftdoesecJen02.20001 JenDZ210 ^2'PW Once the stop is approved then submitted, you will receive a Stop Payment Confirmation. If any information is incorrect, remove the stop payment entry from the stop payment listing screen. Key Total Treasury will provide a stop payment history log to help you manage stop payment orders by their expiration date. KeyBank Proposal of Banking Services to City of Auburn Page 29 1 KeyBank Om ^°l aoUll TreaswVO Toob 6 Rweunm Wor OOtbne Concoct Ua Lo0olt ataehlQ a Slbld ene t.7k vmvn Stop Payment CoMirmatlon Yde nuo mtme Pe Rtb15Mg at"farm emudion. UAPWAIJr Pbeee RCMW tee OOU3 O Watl tar J=M ,YOU moll"Cary lee brat b=at*U Utp b%MXto„it Rol eommoue.The ve1COy Crete eTa teyRldel b Cona"Oml an ae bmneft berryomft UreOroweam ored tznfitm:'ae. Atzooet 123467-Grvr#1Ac=n1 Rouen: Leel check 1wi dim 11II3314 Payees ortayo ftndwi e Cees Anbwt 34,7P1.12 bwe aur. Join CZ 2W OC&Ta*Entered: In L2 ZOXX Na PY EST User V. SPARKni Senora Me AMMUM of. aeo SpY)oun Aterou Lce t: TM 6rci9 Ave. Anion Lbe 2 Cer. C1r+ehna Stem: ON Zip Cede unc As an alternative option, Key's Commercial and Business Banking Center operates as an extension of your Key Team to provide fast, accurate answers and solutions for routine questions and issues; e.g., how-to questions, balance inquiries, adjustments, research requests, etc. CBBC representatives can be reached at 800-539-9039 and are available from 5:00 a.m.to 5:00 p.m. PT.They go through extensive training and have state-of-the-art workstations,enabling them to answer your questions quickly and efficiently. Key's ultimate goal Is to provide resolutions as quickly and accurately as possible,answering 90016 of all Inquiries on the irikst call and to answer all others within 24 hours. We have met our response time goals over 95'/continually. With this in mind,we have established service level agreements,which define the turnaround time for all research and adjustment items(based on the nature of the request).The turnaround time is generally 24 hours. However, there may be occasions where additional time is needed for research. When necessary,the request can be flagged as a"rush"to reduce turnaround time.All time sensitive issues are given top priority until resolution is complete. • Provide support in answering questions,troubleshooting problems and resolving issues in a prompt manner, Key takes a long-term relationship approach to serving clients,and we will provide a high quality team in order to offer the City the best possible customer service. Your designated Key Team will be available for one-on-one meetings and service as needed or requested, providing a personal hands- on approach from implementation through the ongoing management of the relationship. The City's Relationship Manager, Robbi Stedman will coordinate all aspects of the relationship to ensure that the City receives high quality service. She is responsible for insuring that the contract requirements are met and for educating the City about new products and services available to meet your changing needs. The City's Senior Treasury Advisor, Michael Thomas will be your day-to-day contact for questions KeyBank Proposal of Banking Services to City of Auburn Page 30 KeyBank O• and support He is responsible for implementation processes as well as providing support to the City in tailoring its treasury management products and services to produce the most beneficial results. Michael will continue to act as a liaison between the City and the appropriate operation areas of the bank. Michael is supported by Melissa Greenough. Debbie Rivetts,the City's Senior Client Manager will provide daily customer service for any banking questions, changes or needs.As the City's day-to-day contact Debbie will: • Serve as the liaison with our all internal processing groups; • Be a vital member of the implementation team to ensure smooth set-up of new services and users; • Respond to any questions the City might have about their services, accounts,or account analysis; and • Work closely with our ACH and Wire departments. Le-Hoa Vu,the City's Sales Associate,will: • Correct encoding errors and deposit adjustments; • Assist in fraud affidavits and ACH returns;and • Provide copies of deposit or warrant items. • Provide means to inquire about canceled checks and stop payment on checks upon proper authorization. A City authorized user can research canceled checks and stop payments online vie Key Total Treasury. The City can view, print and download and paid check or return item images. Debbie Rivetts, Senior Client Manager or Melissa Greenough will to assist the City. For additional assistance, the City may contact our Commercial and Business Banking Center toll free at 800-821-2829 on weekdays,5:00 a.m.—6:00 p.m. PT. Nightly Sweep/Zero Balance:To supplement the City's daily major cash transfers to primary checking and travel advance accounts,sweep account structures to bank Intra-day or overnight Investment options should be utilized to ensure all minimal bank-held operating funds are Invested at the highest possible rate.Bank sweep altematives shall include only SEC registered US govemment and agency or prime money market funds.Sweeps are designed to also minimize collateral risk for the System by eliminating overnight deposits which otherwise must be collateralized. Given the current rate environment, Key does not recommend a sweep account,rather paying fees via balances/ECR. As a long standing partner with the City,we will ensure investment options are provided to the City when the rate environment changes. Interim Financing and Overdraft Protection:The City may require short-term financing for a period not to exceed one(1)year in the form of short-term notes.This short-term financing could be secured by the anticipated revenue of City funds or sale of General Obligation,Revenue,or Local Improvement District bonds.The selected firm agrees to provide interim financing to the City on a prompt and competitive basis. Key Public Sector Group serves as a single, integrated idea source to help you meet your unique financial goals and objectives. Supported by the capital of one of the nation's leading financial institutions,we offer a complete spectrum of financing solutions designed to support public entities operating within a tax-exempt environment. Key will review all financing requests by the City and offer the City competitive rates to meet your financing options. KeyBank Proposal of Banking Services to City of Auburn Page 31 ■Wank 0ow. Although the City will attempt to minimize daylight and overnight overdraft situations,it recognizes that there are times these situations will occur.It is anticipated these overdraft situations will not exceed$2 million,if and when they do occur. Key does not currently charge for daylight overdrafts. In the event the City is trying to release a wire payment which will cause a daylight overdraft, Key's wire room will attempt to contact Key's credit team to obtain approval before releasing the wire, or the City may be contacted to verify that adequate funds are anticipated. Key also does not charge for overdraft fees. However,the bank does charge for the use of uncollected funds. The uncollected funds rate is based on the bank's.prime rate.The uncollected funds charge calculation is as follows: Uncollected Funds Charge= (Uncollected Funds Rate divided by 100)x[(Number of Negative Days)(Average Daily Negative Collected Balance)/(Number of days in the year)]. Key's current prime rate is 3.25%; (as oro2.2a fs) Trust and Escrow Agent Services:The City may require trust and escrow agent services to hold letters of credit and other third party commercial documents.The institution will,in most cases, be required to take physical custody of these securities,notify the Parties of their expiration thirty days prior to termination of the agreement and accept renewal or replacement of Instruments.The City may also require retainage accounts be maintained for contractors choosing to place retainage funds in an Interest bearing account. Key exited the trust services business due to the specialized nature of these offerings.We recommend that you stay with your current provider. However,we are happy to assist the City in establishing retainage accounts as necessary. Banking Supplies:The financial institution will be required to provide a supply of coin rollers, locking bank bags,tamper proof plastic deposit bags,deposit slips,advance travel and other miscellaneous checks,and endorsement stamps for each location(see Attachment 8 for the number of endorsement stamps needed).The cost of such supplies shall be charged against the City's monthly analysis statement as supplies are furnished to the City. Key will continue working with the City to provide the above described banking supplies. Key will offer three months banking services credit to offset the costs of banking supplies. Key recommends that the City secure banking supplies by order through our preferred vendor,Superior Press to ensure quality standards are met. Superior Press has been providing financial printing and banking supplies for more than 70 years.They are the leaders in the banking services and supply industry,offering"one stop shopping"for deposit and check printing,cash vault items, plastic currency bags,endorsement stamps, and image scanner deployment services. If the City desires, Key can charge the cost of banking supplies against the City's monthly account analysis. ACH Debit Services:The City processes a direct debit batch four(4)times per month for the payment of both residential and commercial utility bills.As noted below,the City also processes direct deposits of payroll twice a month.Other miscellaneous ACH transactions such as debt service,excise tax,retirement fund transfers and federal tax payments flow through the account each month. KeyBank Proposal of Banking Services to City of Auburn Page 32 I Keyl3ank0ow. ACH Module Key can accept and process ACH files from the City via direct transmission in the NACHA format,or online through Key Total Treasury's File Transfer and ACH modules. The ACH module will allow you to initiate debit and credit ACH transactions through an easy-to-use, integrated set of internet-based tools. If you have proprietary software capable of creating compatible ACH files,you can upload the file directly into the website template,following a set of step-by-step instructions F a Key Total Teasuy® T�altum UQrooml CUWUa Lonoft FM Home� Info Reporting Re"mbia3 Account AIRmt ACH VArep loi cign Uriffs toan Mgmt utposd Can FjjcIrnSjcj '_SeffSerVjcC* �orura.sdadaroadtvlerw HIM ACH , SerAlCes MAd1QumBTbnes ACH 114 rosReleasedProemTknow 1100 AM,HOPAI and&WPMETMm.FrQ ' ACN Batch R.leaee thwAaW lIetweem BOD PM_q:M PM ET NWrq • 2aftach.Mam Lift t8ddW"Il1 a dff8WdQW1bepre allOAMETOnbradha mdaf'a Relom oft . AN B*km ResrbmRed Ha Apt ACH Reports The following options are available: ACH Batches Sent Report You can view batches that have been sent via Key Total Treasury within the last 12 months. KeyBank Proposal of Banking Services to City of Auburn Page 33 KeyBank Oe 0'a Key Tote I Treasurys® Tom a Resana use OPea+s QWW us LopM saORe tit.saQa:amtZ. ' Batches Sent Report NdbmpfNMI eoldba5ID11orCa4ew. SPMYOp7S01NTW Bdettmnn 01190NDM L"S" M1X111WO ENNOW Typo Bdo3Dara"M Dow Qadb 00111rtA00" SAM4.E BAT04 FFQC-Iffy Nov 23.MKK JMn 02,2m01 2 FPO am $10.WOm 36AMM0 51721887651321-ACH NAM Lund C OW1111WIM BdM Key K+YBa1:to KrANA Acm Trw4fa P Rmma ACH Customer Activity Report(CAR) This report provides information on all ACH transactions originated from your Key accounts.You will receive a report every day for which there is ACH activity,such as transactions initiated, adjustments, notifications of change(NOC), etc. 07 Key TOW Treasury® Tools&Remscss UmOpUom Qoredus Lobar 511atatr Sekoteddolvlew ' 1- 'Mm &—to 83552-1 KeyBank NATIONAL ASSOCIATION ACCOM NOMBERt 111111 127 PUBLIC SQUARE SETTLEMENT DATE: O1/M/20X8 CLEVELAND OH 44114 PAGE 1 SPIARY C®LSOLIDATCD INDUSTRIES +rr+rrr+r+n+r+rrrrrnrrrrrrr+ 11TH: BOB BOBBIN= * DIRECT INQUIRIES TO + 1 SPAM BAY • 1-800-111-1111 CLEVELAND, OHIO 44124-ODOR +rrrrr++rrrrr+n r■r+rrrrrrr++r ACH ACTIVITY SUMMARY THIS REPORT DETAILS ALL ACTIVITY THAT RELATES TO ACH TRAnsAcrIms THAT RAE ORIGINATED w YOUR BEHIUr. I. ADJO4T®1T ACTIVITY COEFLLTID TODAY- TEO SECTIM COHFIRHB ALL ADJUSTMENTS COBPLETED TODAY®YOUR BEHALF. NO ACTIVITY R3999-9 KeyBank NATIONAL ASSOCIATION ACCOUNT NUMBER: 111111111 127 PUBLIC 3OUARE SETTLEMENT DATE: 01/02/20XX CLEVELAND OR 44114 PAGE 2 SPAR"COMOLIDATED INDUSTRIES rrrnrr+r+rrrr»nrr+rrrrrr*+* ATTN: BOB BOBBINSON r DIRECT MQOIRIES TO + 1 SPARET BAT + 1-800-111-1111 + CLEVELAND, OHIO 44124-0000 rr♦•rrr+rrrrru+n+rnrr•+ter• Am ACTIVITY SUMMARY KeyBank Proposal of Banking Services to City of Auburn Page 34 KeyBank O File Transfer(Direct Transmission)Module Key Total Treasury also offers the City the ability to easily transfer files to and from the bank,safely and securely, without needing technical knowledge of transmissions. This module provides a simple, attended or unattended method for processing and/or retrieving files from a designated Key mailbox. 07 Key Total TPeasure TO*Atassalrcrs lkeros" CWWUa t.oaoff KTT Home fo Repoibrig Rccembles Accoun!Mgmt ACH Wirci Foreign Ur Air; Loan Mgmt Uposri Cori File li'drmitr Se"scmrr shortcuts sebllerd Tiemfe File Transfer J Services syskurArtG7 Sad FBe•aaelum for Onfli iProce" • M Tl Wer AM @OOPM U • ®! =PMET • Fie Trensler 9etw RemA Ards 11:00 PM Er AaomdRraadhm•al • Teet Fie Thwer Me 490 PM ET Retrrem Rtes•Aryame After Aal Rahamx 82 AM Er ®! M AM Er ARP: B00 All ET Aaau•1 Anwdl•mal Lox @00 Alt Er 901109 82ANEr BAR Ree 1!W AM Ef kfaat•Y WY.Oh" '=AM ET CO JT4NOR*% 11'.90 AM ET AK ROOarrAmrss HOAMET File Transfer Reports The following options are available: Status Reoort This report shows files that have not been picked up as well as retrieved. You can view the status of inbound/outbound files through 60 days prior to them being retrieved. KeyBank Proposal of Banking Services to City of Auburn Page 35 KeyBank Oa 4'a Key Total Treasury® TedaBR1111M a LbWWM CaWUS LW swats IsdW ad ckt vmw File Transfer Status Report Usting �aW.otJ�sl Prins ke8es4 bi hBm to see row flea awdb WNW fie dtetn, VAMMR TM MAMMS B"M fiesha Relhrae Oa<eT�e Rata TEST 20KK1123_MW 3,4M 2MM1231/01dW0" J®0Y,2WW 246 FM BT FIT sera to peadree W KeyU*fat Prates* TM =1123—MM 12.40220M1231AOt MM Jaf1V2,2WW248PMMT Flbeadla(recakedby) larproceastry TEST 2WM 112_170W 994 MM122M JM OZ 201W 246 PM BT Fb and to pwWW by)M"W 1wWocesatq TBT 2wiU41530 36,345TBTAn JM420KK246PMBT FTelobw(ateedyJmNrad History R@Dort This report shows all files that have been sent and received through the File Transfer module for a rollingl2 months. OT Key Total Treasury® TQ*Aft=E= Userop6me CWW113 LW KYT`1116rnt Into Reporting f1c"mbles Arccunt Mgmt ACH Yhr ca rveign Diialts Loan MqrrrI Depomd Con file Transfer �Seff Service SAadraa r Seied etd v6ew File Transfer History Report J UsaD euteftbW FBellaIDe Mche St" lkTy" FBnSbcnO6) >keeft SPARKY01 Jan0t,2W246PM6T nWIM11MM" MM123-900 FseTMWv90 MW Tra d&ANM 30 SOW Fb fro Ke*M SPARKY01 Jen02,2W246PM6T 2WW1123,j10RVIIJ033J1 2WWfl23—MM FbTfXW&9ie sUW TreWWMFb 12,402SwdFm(to KrAM SPM(Y03 Jan02,2WW246PM5T IWW1inu MM11217M FbTrUdW9aeaU TtanslaBAILPrevb=Dayne 9,294 ROW"Fb(FranK"Baric) SPARKY09 Jan02,2WW246PMBT WAIT =1041530 FbTrrWar9co=td TreisferRetaenlrmtFie 38X5 Re"ft(FMKeftV Direct Deposit for Payroll:Aubum offers and encourages direct payroll deposit for its employees. The City pays its employees semi-monthly on the 8th and 23rd.On an average payroll,475 employees receive direct deposit,which generates approximately 580 transactions per pay period due to many employees having multiple bank account transfers. Key can provide payroll Direct Deposit Service to its'employees. Direct Deposit Service With our direct deposit service the City can pay its employees electronically using ACH, regardless of where payee accounts are located. Individuals will be paid by as long as they maintain a checking/savings account at an institution that's a member of the ACH network. The City will be able to transmit its semi-monthly payment files to Key via direct transmission in the NACHA format, or online through Key Total Treasury's File Transfer and ACH modules. Key Total KeyBank Proposal of Banking Services to City of Auburn Page 36 J KeyBankOmx. Treasury's ACH module offers the ability to initiate debit and credit ACH transactions through an easy-to- use, integrated set of intemet=based tools. If the City has proprietary software capable of creating compatible ACH files, you can upload the file directly into the website template, using step-by-step instructions. Once you've created or imported an ACH batch with transactions, you simply update the dollar amounts if they have changed, and set the effective payment date.Then,at least one day prior to the settlement date(same-day for Key-to Key-transactions), you will approve and release the batch. Key Total Treasury File Transfer Module Should the City choose; it will also have the ability to easily transfer files to and from the bank through Key Total Treasury's File Transfer module.To retrieve a file, select that option,choose a file type,and then save the file on your PC.When sending files through Key Total Treasury, our system sends it on to the appropriate back-end system. Direct Transmission Key offers both attended and unattended file delivery services,providing a simple and secure method for processing and/or retrieving files from a designated mailbox at Key. Encryption is required for all file transfer protocol(FTP)with Key. Via Direct Transmission and Key Total Treasury File Transfer Module All transmission channels are available 24 hours a day,seven days a week. However, Key requires that an ACH file sent in through Direct File Origination or web-based file transfer be received no later than 6:00 p.m.PT one business day prior to the file settlement date. Sending your file in by 11:00 a.m. PT will provide an opportunity for making minor changes to your file(if necessary)while still meeting the deadline. When using our secure direct transmission or Key TotalTreasory's File Transfer module,the City's information is protected with multk%ctor authentication, Secured Socket Layering and 128-bit encryption. Encryption is required for all transfer protocols with Key, and we will only set up authenticated and encrypted FTP connections, We prefer that clients connect to our FTP server to placetretrieve files.This gives us greater control over the connection.The options for encrypting FTP traffic are TLS or PGP.We also offer sFTP and AS2/AS3 protocols. Via Key Total Treasury ACH Module Key requires that a file sent in through the ACH module be received no later than 5:00 p.m. PT, one business day prior to the file settlement date. However, Key(like NACHA)recommends that you originate payroll and other credit files two business days prior to settlement While most files settle without incident with a one-day origination window, two-day origination provides the safety that an origination's delay or a posting delay at the receiving financial institution will not impact the recipient. You must fund disbursements for ACH originated items by the close of business on the effective date of the transactions.The funds must be in the account prior to the end-of-day processing(typically 2:00 p.m. PT). Each night, Key will collect all data that has been entered and moves the funds via ACH.The total deposits will be credited to your concentration account at Key and any disbursement entries from the concentration account will be credited to the specified depository accounts for next-day payment All deposit transfers received Monday through Friday by 5:00 p.m. PT,excluding Sundays and holidays, will be posted to your account the same day.We also offer the option of weekend processing, through which your locations can report deposits through Sunday at 2:00 p.m, PT. KeyBank Proposal of Banking Services to City of Auburn Page 37 KeyBank Omm. When using Key Total Treasury,our ACH Direct offering delivers self-service ACH management and fraud prevention payment and reporting.Available online via our ACH Direct offering is our Electronic Payment Authorization service,which will provide the City with the ACH Debit filter options it needs. In addition,the City can also utilize our Key2Payroll Card service for employees who do not have direct deposit. Key2Payroli-Prepaid Payroll Cards City employees'money is automatically loaded onto a MasterCard branded prepaid card.After the initial mailing and activation,cards are reloaded electronically for subsequent payments. City employees can use the Key2Payroli card just like a debit card to: f • Make purchases • Check balances,transactions,and 60 day transaction history via Key2Payrollcom • Withdraw cash 0123 4567 8910 0000 Cardholders will have access to live customer service or ' '"': automated account information by phone at 1-866-295-2955. In addition, Key can block lost or stolen cards, preserving unused funds. Funds on lost, stolen or damaged cards are protected. Transaction Monitoring With our Prepaid Debit card programs,the City will have the security of near real-time monitoring 24 hours a day, seven days a week,365 days per year.Transaction monitoring provides the ability to react quickly to new fraud trends.Our parameter-based systems leverage neural network scores plus rules- based strategies. Suspected fraud can result in a variety of actions based on the situation. Actions can range from awareness and monitoring, to transaction blocking or card replacement If a cardholder is impacted by suspected fraud and requires action against their account to temporarily block transactions until verified, replace their card, or reimburse funds,they are contacted by our Operations group at the phone number listed on their account. If Key is unable to reach the cardholder after multiple attempts,a letter will be sent to the cardholder at the address listed on their account. Card replacement is free of charge and canceling the existing card ensures the funds cannot be accessed by the fraudulent party. KeyBank Proposal of Banking Services to City of Auburn Page 38 Key0ankOwn. Benefits Qtv and City Employees • Dispersing funds via prepaid cards ensures on-time delivery of recurring benefits, at a fraction of the cost of a check > The cost of issuing"check"for payroll is$6 to$8 per FTE per month versus less than$0.50 for prepaid cards • Reduced handling cost on every payment • • Reduced fraud possibilities • Eliminate most voided checks and stop payments > After initial mailing, cards are electronically reloaded, avoiding stop payments (lost, stolen&returned checks) • Improved cash flow and cash control > No mail time delay provides on-time payment(similar to ACH direct deposit) > Daily reconciliation along with other weekly and monthly reporting provided • Consumers that do not have a bank/checking account cannot use ACH direct deposit,thus receive a check in which they pay 2%to 10%at check cashing companies to"cash their check" • Reduces fraud and lost monies > Removes the insecurity of handling cash until the next pay period > Unlike checks,funds on lost, stolen, or damaged cards are protected. • Cardholders will have the ability to track spend via internet, email and texting (optional) • Funds are immediately available to employee—no time delay for check clearance Einployee - Funds can be withdrawn over the counter from a Key branch teller • Cards are accepted at ATMs worldwide. Free access surcharge-free ATM network and Key's ATM network • The card can be used to make purchases at millions of merchants as well as for e- commerce(online)whenever MasterCard Is accepted: • Key can block lost or stolen cards preserving unused funds while electronically shifting monies to newly mailed card • Cardholder website for balance inquiries,statements, and other customer service functions. No charge to cardholders for website usage • IVR and live agent, bi-lingual(English&Spanish),customer service Currently,the City transmits the payroll data to the institution via internet two working days prior to payday.Deposits must be made Into the employees'account by 7:00 a.m.on payday.Any deviation from these time limits must be stated in the RFP.Any firm with less restrictive time requirements will be given favorable consideration. The City from time to time may need to transmit the payroll data one day prior to the pay date.We are therefore requesting RFPs on both a one-day and two-day turnaround.We are interested in what the deadlines for transmission are for both situations. As your current direct deposit services provider, Key is able to accommodate the City's transmission requirements. Night Depository Services:The financial Institution will provide the City with the ability to make `night drop'deposits after hours.City staff will prepare a deposit slip and'night drop'the deposit after hours,for deposit the next day.We currently use the tamper-resistant plastic bags for this function. The City can drop off deposits during the day or after hours to a secure, vaulted receptacle for deposit the next day. Bags are processed under dual control and stored securely in a locked vault until they are processed. KeyBank Proposal of Banking Services to City of Auburn Page 39 K00ank0ow. Data Equipment Compatibility:The City is interested In equipment and data compatibility and therefore requests the specifications needed for an automated wire transfer,ACH debit S credit, credit card,balance reporting and any other automated systems be included in this proposal. Any costs associated with automated data and equipment should be Identified on the RFP Sheet form in Attachment A. Key does not require any specialized hardware or software for our direct transmission,file translation and'Key Total Treasury platform. Key Total Treasury is a web-based system,so there's no need to use special hardware or software.The City will have access to Key Total Treasury from any intemet-enabled PC. For optimal performance, we advise that you use only versions of browsers and operating systems that are currently supported by the manufacturer.This does not mean that older versions of browsers and operating systems will not work with Key Total Treasury. It means that they may not work as well, or as efficiently,or certain functions may not operate as intended. Processor. 486 or higher RAM: 32 MB or higher Communication Method: 36.6 or higher Must support 128-bit Secure Socket Layer(SSL)Encryption Secure Port: 443; Non-secure Port: 80 Adobe: Statement viewing only. Need 6.0.1 or higher Key Total Treasury is designed to work with Microsoft Windows 98, NT 4.0 or greater and the application is coded in WebSphere 7.0 using Java language with a database type of D132 connected via JDBC and stored procedures. Miscellaneous Optional Services:In addition to the requirements listed above,the proposal shaft Identify proposed fees for the following services: • Rapid processing/deposit options for checks such as Check 21; As one of the first banks to take advantage of the new Check 21 law,we were provided the opportunity to develop the most comprehensive and customizable remote deposit system on the market We began offering our Key Capture solution in June 2005,and our clients rate us a 156 on a 10-point scale for overall client satisfaction.In addition, the Phoenix-Hecht 2013 Treasury Management MonitorTA°awarded Key an"A+"rating for overall features and capabilities of its remote deposit solution. As detailed previously in this RFP, our remote deposit solution Key Capture will simplifying your deposits. Key Capture offers easy-to-use, real-time reporting options to help you quickly verify and integrate your deposit activity. • Convenience—deposit right from your office whenever you need to • Increased deposit preparation efficiency—Key Capture creates a virtual endorsement on the check images, eliminating the step of signing each check • Cost savings—avoid time-consuming trips to the bank and eliminate courier fees • Improved cash flow—deposit until 8:00 p.m.PT for same-day ledger credit • Quick and efficient deposit research—Key Capture's advanced Item-Level Searching allows you to isolate an individual item or a range of items and images,to help you find what you are looking for • Detailed reporting options—easy-to-use searching and reporting tools place important information and deposited images at your fingertips for up to 45 days. On-demand reporting KeyBank Proposal of Banking Services to City of Auburn Page 40 I KseyBank Omit i capabilities allow you to easily prepare and export vital information and check images for Integration • Automatic concentration of funds—your funds are deposited at Key,where they can quickly be put to work for you • Armored car services; As previously noted, the City can use your existing armored courier service to make vault deliveries, or we can bid on your behalf for services with our recommended vendors. Should you choose to use one of these couriers;the contract will be between the City and the vendor. • Courier services; As previously noted, the City can use your existing armored courier service to make vault deliveries, or we can bid on your behalf for services with our recommended vendors.Should you choose to use one of these couriers; the contract will be between the City and the vendor. • Lockbox services; For 40+years, Key has been providing state-of-the-art lockbox processing to its clients across the country, offering both wholesale and wholetail lockbox and optical character recognition(OCR) scannable capabilities. Key's Lockbox Services Department delivers a quality receivables process,flexible information, and superior customer service in addition to the float advantages customary to lockbox. Key's lockbox can process Wholesale Lockbox,which is customarily business-to-business payments, containing business checks, stubs, invoices as well as a combination of any of these.Wholetail Lockbox is also available and is typically described as consumer-to-business payments containing personal sized checks with a scannable OCR coupon. Envelopes may contain more than one payment or may come in with or without additional documents. The very nature of lockbox processing with Key accelerates the collection of payments(mail float), enhances availability of funds(check float),ensures timely processing of these payments (processing float), and deposit information(receivables float).With Key lockbox we can assist you in reducing the receivables cycle time. Lockbox Workflow The very nature of lockbox processing with Key accelerates the collection of payments(mail float), enhances availability of funds(check float),ensures timely processing of these payments (processing float), and deposit information(receivables float).With Key lockbox we can assist you in reducing the receivables cycle time. KeyBank Proposal of Banking Services to City of Auburn Page 41 IF nk Om Wholesale Image Lockbox Processing Extraction and Registration After USPS and express mail deliveries are sorted by client, they are allocated to team members for mail extraction.Assigned specialists process the contents of the envelope following customer specific instructions on their workstation.Acceptable payees are reviewed and any special instructions or unique processing is performed along with a negotiability review of the checks.The contents are now placed into a batch of work based on the special instructions.The batch is assigned a unique ID number using a control ticket then registered to a particular client's lockbox. Co role: Processing instructions are displayed as the lockbox is pulled up and the contents are reviewed. Recent changes to instructions are highlighted to bring them to the operator's attention. Image Capture Control tickets,checks, and documents within a transaction are fed into state-of-the-art high speed image capture equipment, IBML ITRAC III scanners. The scanner has the capability to image both the front and back of the documents, lift the MICR, legal amount and courtesy amount from the check. Controls:The scanner reads the unique ID number to identify what client is being processed, automatically loading client specific for capture settings.Once the batch is captured it is automatically monitored by the system using the agreed upon service level agreement to ensure timely processing of all clients work. Note:For non-image clients, checks and documents are separated prior to image capture. Check are fed into high-speed imaging devices, NCR's Man 180's to capture check images and MICR line data for float assignment and electronic clearing. Documents are forwarded to our mail out area and staged to be later matched with check image copies and mailed back to the client per their instruction. (See description of Mail Out below) Check Amount and MICR Data Validation The Item Processing functionality for Wholesale items is performed using the images and MICR data captured in the previous step. Numeric amounts of the legible checks are automatically read by the system through the use of CAR(Courtesy Amount Recognition)and LAR (Legal Amount Recognition)technologies. if CAR and LAR cannot read a check, the check will be sent to the Payment Entry queue in the system where a specialist will view a full image of the check and be prompted to enter in the check amount. Controls:In order to provide accuracy during our deposit process the following are executed: • A check must have dual amount validation prior to deposit • During image capture,the courtesy and legal amount of the check are read. If these amounts do not match, the item will be presented electronically to a Lockbox Specialist who will verify the proper check amount for deposit • During MICR repair, the system presents to an operator any check images which routing and transit numbers could not be read from MICR.The operator can repair the MICR line from the image, ensuring the float assigned is based on an accurate routing and transit number. Check Processing and Image Clearing The checks will be assigned availability based on the encode time and availability schedules, and then released to the check clearing process for deposit and collection.All check items in US. Dollars are cleared electronically via image exchange. This allows Key to provide accelerated availability to depository accounts.Volume counts are automatically captured as the remittance documents and checks are processed. KeyBank Proposal of Banking Services to City of Aubum Page 42 I KeyBank Onw. Data Entry For transmission and information reporting purposes, clients may request data entry of information to be included in their transmission. Key can provide standard information including payor, check number, invoice number, address, etc.The data entry module provides customized screens displayed to the operator,which mirror the invoices or documentation available for input to improve the accuracy of data captured. Operators will enter lockbox and batch number into the system to begin the data entry process. Data can be captured from either the check or the invoice/documentation received in the transaction. Controls:Data edits such as look-up, check digit algorithms, balancing,etc. can be applied to any field. All required fields must be completed for a document or transaction before the next item can be started. Transmission (if required) Any data and or images captured during processing is delivered to an output server where it is formatted and delivered electronically per a client's required instruction and file layouttformat. Controls:The system contains all information required for formatting and delivery of the files, including the schedule for delivery(seven-year image archive, to mirror what is stated below). Online Image and Data Delivery All images and captured data(MICR and or data entered information) is sent to archive servers where they are held online and accessible through Key Total Treasury's Receivable module for seven years.A client may also request a CD or DVD of images and data to be delivered on a daily, weekly or monthly basis. O-ff Key Total Treasury® TaabBReeaume uwovoca, Oxeedus Logan aemwe.1 sera ao ck*rWi Reeelvebh�a Lod*=Summary Q uewlo gash2un mod**%)tepa+6w?1++nw■eenoee teu. !�• 2,10a1101 6TIVIJIM te.ro mltmkaNn m Lope r Tuo tmecp.Loa aioo 5W-a5 M254M _=.too -37co,co gB use e� SS&GMD Eo.co -0.00.03 Qi.88 m 877:3 (' UTI&Q NA 1:00 SUM42 .Wo b" e�ToO sa.MP 00.6 swan 7zz.ut.ee 'r _n,701,0­01 3 route: s+w,ae.+p •s7op�oo .s7,ae+.pa s+o+,v+.+e •Cm Enh CkscYI I u 1 Week_ Nnmmt IITO COI+dG ue � ��� much ameao eeea V-10 R"M to"V YUITa film Yry TCW TMWM Suppa r • CQ S-8404=078 Uonaey-Own.S Loo-0"ET • F.ialh Mail Out—With or Without Re-association(if required) Check images are automatically printed for clients who request check images to be mailed back to their offices. Re-association is mainly offered to non-image clients who require check copies and original documents returned to their offices in the mail. Check image copies are matched up to original documents.A report containing Deposit Summary can be included in a client package or on- line using Key Total Treasury. KeyBank Proposal of Banking Services to City of Aubum Page 43 KeyElank 0ma. Controls.Batch tickets containing lockbox specific information are used to re-associate the documents with the check copies.The images are reviewed by Lockbox Specialists prior to mail out Batches are subsequently archived by the system for research purposes. Key images all checks for clearing and during that process captures MICR from the check to be used in balancing, clearing, and downstream reporting back to our clients.Additionally we provide standard data capture information including payar,check number, invoice number,address, etc. The data entry module provides customized screens displayed to the operator,which mirror the invoices or documentation available for input to improve the accuracy of data captured. Operators will enter lockbox and batch number into the system to begin the data entry process. Data can be captured from either the check or the Invoiceldocumentation received in the transaction. Optionally, If OCR scanning is required, images are captured of both the check and scannable coupon. MICR and OCR scanlines are read by software and any applicable edits are run against the scanline data. Our equipment performs controls to recognize the OCR scanline to prevent the capture of invalid documents belonging to other companies. It also uses software to validate the OCR characters read. Our standard transmission format is BAI,and eight different record types are used. However you may use modified record formats;therefore,the record field definitions are typical, not definitive. Typical formats include:fixed width,delimited, BAI,and EDI 823. In addition to check MICR information,files can include data captured via OCR and/or keystroke data entry. Key will work with you to customize your data transmission and design a file that is compatible with your AIR System. Standard Transmission Your transmission file may contain detail and summary information as follows: • Detail Information—This includes, but is not limited to: keyed data(e.g. payor name, check date, customer number, invoice number, invoice date,gross amount, discount amount, invoice net amount, and invoice difference)and check information. • Summarv/6atch Information—This includes, but is not limited to: Lockbox number, batch number,check count, invoice count, total dollar amount of checks in the batch,total amounts for invoices in the batch,and the invoice difference. Bulk File Transmission(with Images) Key's Bulk File transmission is also available the same day as items are deposited. This will allow you to retrieve and integrate Lockbox image files along with the data captured for those transactions. Images can be included with the data transmission or transmitted separately with another data/index file(fixed width or XML). Images can include checks only, remittance documents only, both, or all documents(including any correspondence up to 8.5"x U.") The completed image transmission files contain the index file and single tiff(item level images)or multi-tiff(transaction level Images).The index file contains information used to match the tiff images from the zip file. The image files can be named in any format that can include Lockbox number, batch number and deposit date. The Images and the Index files will be zipped in a single entity. SFTP with TLS is the mechanism followed. The index file.is used to reference the individual tiff images from the zip file. It contains various fields that can be used to"search'for a specific image including Lockbox number, deposit date, batch number, several sequencing fields, and optional key data. Key provides its Lockbox images in Tiff Group IV format We will work closely with you to set up and implement image file transmission as well as test the file and the file transfer to ensure all of your requirements and needs are being met. KeyBank Proposal of Banking Services to City of Auburn Page 44 KeyBank . Lockbox Differentiatom The most critical element that differentiates Key's service from other lockbox providers is the high priority we place on providing superior client service and quality processing. Our network consistently has top rated sites, and the Phoenix-Hecht 2014 Treasury Management Monitor""awarded Key"A+v ratings in wholesale lockbox for. • Accuracy of processing and reporting • Overall features and capabilities In addition, the most recent McKinsey benchmark studies highlight several areas where Key excels. • According to a recent study, Key is an industry leader in lockbox due to its use of lean work cells(based on Lean Six Sigma methodology), training and evaluation processes,as well as how it leverages incentives. • With regard to check processes,the study results concluded that Key employs an optimal check image strategy for its infrastructure.Key is one of only three banks that have achieved 99% Image clearing with outgoing returns. • Payment of financial system upgrades and fees through the use of the bank analysis as this will enhance our bankingifinancial processing capabilities; In general,the City can only use earnings credit to offset checking account maintenance fees and eligible service charges. It is not Key's policy to pay for financial system upgrades through the use of account analysis. • Credlt/Debit card services: If this optional service is selected to be provided by the financial institution it will provide the City with the ability to accept payment through the use of credit/debit cards.The City currently accepts MasterCard and Visa credit cards In person, over the phone and on-line for collection of recreation,utilities,permit fees and other fees. The City currently has multiple locations that accept credit cards,with the possibility of more locations in the future.The City will be credited daily for the gross amount of the bank card transactions.Any sales discount fee or percentage proposed will be charged to the City's analysis statement at the end of each month as part of the activity charges. Merchant Processing Key Merchant Services(KMS)delivers end-to-end payment processing services and state=of-the- art transaction processing products;and we handle every aspect of the service relationship— transaction processing account set up, risk and underwriting,funding and settlement,equipment deployment,chargeback management, reporting, and customer service. Our customers can also count on us to keep their payment processing compliant with changing payment industry security requirements. Psymerd Cards aupPorted: additional Services: Debra Networks: • Vlsae • Electronic Check Verification and Guarantee • Accel MastatCarde SeKxe—Point Of Purohose(POP),Accounts American E■presee Receivable Conversion(ARC).Back ORke AFFN Dlacovero Conversion(BOC).and In certain eutanaim Alaska • Diner's Clue Internet(W EBy Telephone(TEL) CL On • ice and Prearranged Payment and Deposit(PPo) .Irnalink • Debit Cards(signature and PIN-ba iod) EM•MrIze'8ePMg Solutions—Induding Intemet, Maestro Electronic Benefits Transfer(EBT) CSR/Admin,IVR(English and Spanish),and . NETS Pduoteum SMIMS Including Fleat Cards integrated Paml of Sale . NYCE • Corporate Purchasing Cards Utility Programs . Pulse • Electronic Gift Cards(EGC) • Convenience Fee Models . Sharazn • 811 Payment(Pinlass Dabll) . STAR • Wireless Services • Cbntadlase Services • No Signature Required Program Services KeyBank Proposal of Banking Services to City of Aubum Page 45 Key0ankOwn. Key has partnered with Elavon, Inc., an industry rated third party payment processor. Elavon has built redundancy into its stratus transaction authorizing and processing systems,which regularly achieves 99.8%uptime and extends peace of mind during peak sales seasons. • End-To-End Ownership—Elavon processes both front-end authorizations, back-end settlement,and all supporting operation functions in-between,so we have one source forall of your payment processing and service needs. • Dedicated and experienced employees deliver products,services and support with an accuracy and clarity that is second to none in the retail payments processing industry. Our dedicated, knowledgeable 24-hour Customer Service team is able to answer any questions you may have regarding your processing. • Flexibles Payment Options—You can count on Key Merchant Services to deliver value-added processing services like electronic gift cards and electronic check conversion, • Connectivity—Our processing partner is not a one-size-fits-all processor. Our Solutions Implementation team will work with you to determine the best-suited and most cost-effective method for processing on our network. Our processing environment uses a fault tolerant stratus infrastructure that provides the necessary redundancy required in this industry.The front end processing systems are comprised of load balanced Stratus V series computers. The system is designed to ensure system integrity and uninterrupted availability, Online Merchant Services Reporting&Support Tools Monitor your account around the clock from any web browser through Key Merchant Services'online account access tools.You can access all the information you need to manage your electronic payment activity and obtain critical information that can have a big impact on your bottom line. Gain the benefits of real-time customer service, without having to pick up the phone. Our reporting tools enable you to display recent deposits, view chargebacks and retrieval requests, access customer support and more in a convenient, secure environment. Basic online account access is free to all Key Merchant Services customers.Your account comes with a single log-on to access information for a single Merchant location. You can view up to six months of past statements,chargeback and retrieval reporting,as well as batch reporting for up to 30 days of settled batch activity.You can also link to report sites for our Electronic Gift Card and Electronic Check Service Programs. Enhanced information is available through the premium access level of MerchantConnect,our most comprehensive,versatile reporting solution.You can access a year's worth of reporting information on multiple MIN and"drill down"into your data to view batches of transactions grouped by card type or batch reference number. Hierarchical reporting allows you to aggregate data from multiple locations. Raw Data File Delivery For large merchants with multiple distribution channels or complex reporting hierarchies that require specialized reporting capabilities, Key Merchant Services'ACS(Automated Customer Service)raw data reports provide detail which is easily exportable to external applications for additional data management and reporting. With ACS,you can easily retrieve detailed reports with data for multiple locations, including transaction activity, statement detail, and card type history ACS offers a comprehensive list of available reports. Custom Reports For merchants with specific reporting requirements, Key Merchant Services offers a full roster of custom solutions. You can receive in-depth analysis of virtually any information that you might need, KeyBank Proposal of Banking Services to City or Auburn Page 46 KeyBank Own from any time period, in any format. Data can be summarized or detailed through a variety of hierarchies—from chain,to region,to store and to individual batch. Integration with enterprise systems eases overall accounting functions. Security We take the security of our data,systems,employees,and locations very seriously. In order to safeguard the merchant and cardholder data both electronically and in hard copy, Key Merchant Services utilizes a combination of firewalls, intrusion detection systems,data loss prevention systems, data encryption,file integrity monitoring systems, access controls, patch management controls and physical security controls to ensure unauthorized users do not access systems or data. Similarly,to monitor the network,we detect systems and monitor internet traffic, as well as network and host-based controls. Such controls are also used to monitor performance and stability. We are subject annually to audits for: Statement of Accounting Standards 70(SAS70); Sarbanes- Oxley; Gramm-Leach-Bliley(through the Office of the Comptroller of the Currency),and Payment Card Industry(PC[)compliance. Our physical security procedures are monitored and audited by Visa, MasterCard and the Office of the Comptroller of the Currency(OCC/US Government) per standard banking/financial regulations. Fraud Control Protecting a business against fraud and other losses is becoming an increasing challenge.We have built extensive fraud monitoring and control features into our network, Elavon, its products and its operations.The network uses a robust set of risk management and fraud prevention tools via a proprietary Advanced Risk Management System(ARMS).ARMS contains empirically derived scorecards that identify risk prior to and post merchant funding, in addition to a business rules-based engine that triggers merchant risk situations for review by investigative analysts. The ARMS system is designed to protect the network's financial exposure and, in turn, provides added protection for the networks merchants. In addition to ARMS monitoring, the network has numerous other fraud control procedures and exception based reporting aimed at protecting the merchant and the network from exposure to losses.Additionally,the network can and does provide education for merchants on fraud trends and methods. Customer Service and Support In addition to your primary KeyBank Relationship contact, Key Merchant Services employs a focused and mufti-pronged approach to strategic management of your merchant account relationship. Customized service level offerings are based on customer needs. Key Merchant Services'customer support and help desk is there whenever you need it For routine services, Key Merchant Services operates a call center for voice authorization and client assistance that Is supported by a dedicated and well-trained staff of service professionals and is available 24 hours a day, 7 days a week. Further, if you have a special need,you may page a Client Support Specialist at any time.This individual will take care of your concerns personally or will refer you to a specialist. • Investment Safekeeping Services:The Institution may be required to provide safekeeping facilities and services for the City's investment securities.Required safekeeping services include(but are not limited to): • Receive/deliver securities on a delivery versus payment method; • Price securities to market; • Collect coupon bond interest; • Provide delivery confirmation on new security purchases; KeyBank Proposal of Banking Services to City of Auburn Page 47 KeyBank Omm. o Provide a monthly statement of holdings Including fair market value of investments; o Register or transfer securities; o Verify holdings as of specific dates for audit purposes; o Credit the City's account for interest and principal payments on the day received; o Provide maturity and interest payment notices at least 5 days prior to payment date The City currently invests in U.S.Treasury and Agency securities that require safekeeping services.The City may invest in other securities allowed by Washington State Statute in the future.The selected firm will be required to comply with all State and Federal regulations regarding safekeeping of municipal securities. Safekeeping Overview The KeyBank Safekeeping Department currently provides custodial services for fixed income securities,which include: Fed and DTC security delivery,distribution of principal and interest proceeds and 1099 reporting. This service is currently provided to over 150 clients,of which nearly half are public/governmental entities.The remaining accounts consist of correspondent banks and corporations.Assets under custody totaled$1.7 billion as of 3/31/2013. Department Staff Key's Safekeeping Department is located in Cleveland, Ohio and has one full time Analyst and one manager with a combined 20 years of banking experience. The Analyst is responsible for handling trade settlements as well as principal and interest payments received for safekeeping accounts. Staff is available during the hours of 8:30 a.m. to 5:30 p.m. ET(5:30 a.m.to 2:30 p.m. PT). Backup support is fully trained in each of the Department's functions to ensure staff coverage at all times. Securities Accepted The Safekeeping Department currently utilizes the custodian services with the Federal Reserve Bank(FRB), Depository Trust&Clearing Corporation (DTCC)and the Bank of New York(BONY). This diverse group of custodians allows us to accept fixed income securities. For example, this Includes government and mortgage-backed securities(FRB),and corporate and municipal securities (DTCC). Key Safekeeping cannot hold equities or mutual funds for Safekeeping customers. Transaction Settlement Written trade or delivery instructions are accepted only from authorized persons via fax or e-mail into a shared mailbox This means your trade instructions receive immediate attention,even when backup personnel are handling the activity. For any trade discrepancy,customers will be verbally contacted prior to our acceptance of the trade. Starting at 2:00 P.M. ET(11:00 a.m. PT), Key will notify a customer if an expected security has not been received(failed trade).The cut-off for delivery instructions is 1:00 P.M. ET(10:00 a.m. PT).All trades are settled on a delivery versus payment basis unless otherwise indicated. Successful transactions are confirmed with a Safekeeping receipt that is mailed next day. Principal and Interest Payments Safekeeping principal and interest payments can be credited to your KeyBank checking account paid by wire, by check or forwarded to KeyBank Capital Markets for reinvestment if you maintain a brokerage account as well. Advices and Notifications A Safekeeping receipt is sent for each security deposited to your account For securities held in the account, principal and interest credit advices are mailed or e-mailed on payable date. Maturity notices are mailed ten days prior to maturity date. KeyBank Proposal of Banking Services to City of Auburn Page 46 i KWBank0ow. Statement—Standard Statements are available by mail or e-mail on a monthly, quarterly or semi-annual basis. Key offers the Account Verification Statement that provides a list of securities:held at month-end.This statement includes CUSIP, security description, interest rate,and maturity date,date of acquisition, receipt number,original par, current par and market value.This report is standard reporting for all Key safekeeping accounts. Key can provide a duplicate copy of this statement mailed to a different address per your request at no additional cost to you. Statement—Additional Upon request, Key offer;an Activity Statement that provides account activity information for Custody Holdings. The Custody Holdings section provides a list of all assets held in your safekeeping account. Billina Key has a flexible billing process,which can be tailored to meet your individual needs. Safekeeping billing can be done on a monthly, quarterly or semiannual basis. Several methods of payment are also available. Safekeeping fees can be directly debited from your KeyBank Checking Account, applied to your account analysis or paid by check or wire transfer. Key is in compliance with all State and Federal regulations regarding safekeeping of municipal securities. • Purchasing Cards:The City Is currently utilizing a purchasing card program under the State contract for making routine purchases in lieu of the normal requisition/purchase order mode of operations. As previously noted Key is able to provide purchasing card payments for the City and associated vendors.Key2Purchase is a cost-neutral, one-card solution that streamlines the purchasing process by reducing or eliminating the time and expenses associated with purchase orders,check requests, petty cash,and other f components of the purchasing cycle. It provides access to business expenses through standard and custom reporting, as well as real-time controls—all via a centralized online platform. Our program includes a multipurpose commercial card solution with the flexibility to be used as a purchasing card,travel& expenditures(T&E)card,electronic AP card, or a combination of all card types. • Purchase or Vendor Card—Purchase card designed for use by accounts payable departments to purchase general goods and services • Single Use Ghost Account—A one-time use virtual account number provided to vendors for Invoice payments • Employee T&E Card—Corporate card designed for use by employees who frequently incur travel and entertainment expenses • Combination T&E and Purchase Card—A customized program that combines the features and functionality of all cards into a single solution;all card types can be managed on the same platform The Key2Purchase card program can fully support your traditional purchase and T&E capabilities, while also providing industry leading AP automation functionality,card management and transaction reporting. • Key2 Purchase.com provides real-time tools to manage spending, access, usage, fraud and audit reporting controls KeyBank Proposal of Banking Services to City of Auburn Page 49 Keyl3ankOmw. Transactions can be automatically mapped to financial codes by Account Number, Merchant Category Code(MCC), Merchant Name,etc. • Increase operational efficiencies with automation and the integration of card data in ERP/accounting system • Improve supplier relationships by accelerating payments with detailed remittance data • Increase revenue with rebates based on spend volume • Multiple payment options: Automated Clearing House(ACH), wire transfers, and online payments • Reat-time spend alerts • Built-in online expense reporting and approvals for your T&E program • Worldwide acceptance via MasterCard @with: MasterRental®Insurance/CDW, Purchase Assurance, MasterAssist®travel Assistance Services, and Extended Warranty Insurance Our MasterCard branded commercial card program,works in conjunction with our web-based reporting tool, Key2Purchase.com. Key2Purchase.com is a web-based reporting system supported by the Encompass platform.Key has partnered with AOC Solutions and Hewlett-Packard to provide this industry-leading management platform that offers real-time card control,transaction-reporting, cost allocation, workflow management and GL interface. We work with AOC Solutions to provide the Key2Purchase.com Program Administration and Reporting System, using Hewlett-Packard as our processor.AOC has 11,000-plus clients today on our platform in various verticals(not limited to)from Fortune 500/1000, energy and utilities, healthcare, public sector, higher-education and non-profit Key will provide a standard file format which the City can use to format the AP file export from the City's existing AP platform. In the event the City cannot code to this file standard, Key will work with the City to create a custom AP file extract that works for both parties.Our platform supports a.variety of standard core file formats or can accommodate the use of any custom layout. Reporting Key2Purchase.com is a web-based reporting system,fully hosted and available 2417.Our ability to offer a single sign-on that supports distributive card,electronic payables,and T&E will allow the City to manage multiple programs all while ensuring roles-and permission-based logic. With our leading electronic payables technology, Key2Purchase allows for the most automatically reconciled program. Key2Purchase.com provides a variety of standard reports that provide volume spend by merchant name, MCC, date,cardholder, etc., and the ability to create your own ad-hoc reports with the Report Wizard.Within the Report Wizard, all the data fields that make up a transaction, including Level 3 data, can be selected and used to pull meaningful information. Our standard reports currently available include: • Accounts Report—The Accounts Report shows accounts with credit limit, current balance, and current statement amounts.A sample Accounts Report is included in the Appendix for your review. • Expense Log Report—The Expense Log Report shows transactions with financial code breakdowns by cardholder.A sample Expense Log Report is included in the Appendix for your review. • Transactions Report—The Transactions report displays a list of transactions by card holder. A sample Transactions Report is included in the Appendix for your review. • Transactions with Purchasing Detail Report—The Transactions with Purchasing Detail Report includes information provided.in the Transactions Report, along with purchasing line item detail.A sample Transactions with Purchasing Detail Report is included in the Appendix for your review. KeyBank Proposal of Banking Services to City of Auburn Page 50 Kq0ankOwn. • Users Report—The Users Report provides basic user information.A sample Users Report Is included in the Appendix for your review. • Accounts Payable Merchants Report—This report displays basic information about Accounts Payable Merchants.A sample Accounts Payable Merchants Report is included in the Appendix for your review. • Accounts Payable Reconciliation Report—The Accounts Payable Reconciliation Report review merchant logs by transaction posting date. • Active Card Account Report—The Active Card Account Report displays all active cards. • Merchant Logs Report—The Merchant Logs Report shows merchant logs with invoice detail and posted transactions. • MCC Summary with Transactions Report—The MCC Summary with Transactions Report total transaction amounts summarized by the MCC assigned to each transaction. A sample MCC Summary with Transactions Report is included.in the Appendix for your review. Extensive reporting functions include standard and custom options and can yield valuable information to help monitor the City's spending, improve your relationships with suppliers through detailed remittance data, and help facilitate better pricing.The City will have control over T&E expense reporting, purchase card spending, transactions allocation, audit reporting needs,and the ability to update your financial system with GL extracts. Key2Purchase solution offers multiple ways for the City to reconcile your expenses monthly using our online application, Key2Purchase.com. Users with the appropriate privileges assigned to their role can search for specific card accounts using the search options: • Last Name • First Name • Account Number • Hierarchy Assigned users can also search for cards assigned to their user account, including proxy accounts. Specific transactions on card accounts can be searched by period, billing cycle or custom date period. Multiple search criteria can be selected to further narrow transaction results. Up to 20 financial code segments are available to support allocation. Reports can be generated from standard extracts(purchase card extracts)or the Report Wizard and exported in a number of formats(including Excel,CSV,etc.).Also available are custom extracts to provide all the data points you may need Key2Purchase can provide GL and other types of extracts and file feeds into the City's ERP, typically via an F'TP set-up.We have provided these types of files to numerous clients in various formats to accommodate a wide range of accounting software.We will work with you to identify the types of files or extracts you will need,as well as the frequency and delivery options available. In the event that the many standard file types we provide do not meet your needs,we offer custom file coding to support all unique file requirements. Settlement Terms Billing can be setup for corporate pay or individual pay. Payments can be prepaid or paid daily, weekly, bi-weekly and post cycle with 14 days grace. Payment in full should be received and posted within 14 days after the billing cycle. Balance is required to be paid in full each cycle. Statements Statements are available online via Key2Purchase.com,for both cardholder and central billing KeyBank Proposal of Banking Services to City of Auburn Page 51 KeyBank • accounts. Statements are available the day after cycle ends. No physical mailing of statements is done. Controls Our program is 100%PCI compliant.To learn more about the PCI certification, process and requirements, please visit pcicomprianceguide.org. In addition,stored data is encrypted based on leading industry standards. Web access is controlled through Secure Socket Layer(SSL)encryption. Key2Purchase.com is a roles-and permissions-based application.Key will work with the City to assist in setting up the initial roles and associated permissions for the Program Administrator and management level personnel. In addition, Key will help define a cardholder role as well as other required roles that may be assigned by the City Program Administrators as needed. The City will have full access to create unique or individual roles as needed,and the ability to assign permissions to each of the roles created, allowing complete customization of user access and functionality within the application. Your designated Relationship Manager and IT Lead will be available by phone, e-mail, or on-site visits to assist you with any additional set-ups, long after implementation is completed. Key2Purchase.com allows Program Administrators to: • Create Card Profiles: • Traveler • Sourcing • Admin • HR • Credit Limit Controls: • Cycle Limit • Single Purchase Limit • Daily Limit • Transaction Controls: • Transactions per Day • Transactions per Cycle Key2Purchase reduces risk by providing extensive spending and usage controls for every cardholder. Fraud Protection We actively screen transaction activity for fraud patterns.The reporting capabilities within Key2Purchase.com allow Program Administrators to schedule reports that monitor transactions meeting conditional criteria such as transactions over a dollar limit, transactions by MCC,disputed transactions, cash advances, or monitoring of vendor ghost accounts. The scheduling of reports can be daily, weekly, or monthly and will be delivered via email. Transactions that have been disputed will be flagged within Key2Purchase.com, allowing Program Administrators the ability to report and monitor the resolution status separately from other charges,cash advances, and fees. Liability The Key2Purchase card solution is corporate liability program. The City will decide who receives a card,the credit limits on the card,and how the card should be used. The City is liable for all debt Incurred on all cards and accounts.The City will be responsible for reporting lost/stolen cards immediately.The City will need to follow a dispute process for any transactions that are the result of a lost or stolen card or account. KeyBank Proposal of Banking Services to City of Auburn Page 52 KeyBank0mix Cardholders and Program Administrators can contact our 24-hour customer service department to report a lost or stolen card. The replacement card will be sent to either the cardholder or the Program Administrator based on the rules set up for the program during the implementation process. Program Administrators also have the ability to close accounts through Key2Purchase.com. The MasterCard MasterCoverage Liability Protection Program protects clients from fraudulent transactions and the association may assume the liability from the resulting loss. With Key2Purchase, the City will have the ability to semi-customize cards by"Hot Stamping"' information in the top right comer of the card for a$300.00 fee.This area of the card can be used for logos, seals,Tax Exempt ID numbers,or Organization names. • Other services provided by your Institution that would be beneficial:to the City of Auburn,but have not specifically been addressed..Please itemize on the RFP Sheet form in Attachment A. Key2Payroll Prepaid Debit Card Key2Payroll is your secure, low-cost alternative to payroll checks for City employees that do not have direct deposit. Your employees'money is automatically loaded onto reloadable MasterCard prepaid debit cards that are globally accepted. Issuance • Cards are issued by KeyBank • The City has two options for card distribution—mailing direct to individual employee households or instant issue cards on-site to employees. Loads • ACH Funding by the City; nearly the exact same process as ACH Direct Deposit • Cards can only be loaded by the City(single source load) After the initial mailing and activation, cards are reloaded electronically for subsequent payments. Employees can then use them just like a debit card—to make purchases check balances,and withdraw cash. It is not only convenient for your employees, it also saves them money by eliminating the high fees associated with check-cashing facilities. Key2Payroll Employer Toolkit Our Key2Payroll Toolkit makes it easy to launch a payroll card program.The ready-to-go resources, available in English and Spanish, were created to help you educate your employees about Key2Payroll card benefits and encourage their participation in the program. Cardholder Enrollment Key allows for two options for the employee: • Log in with unique usemame and password via secure portal to enter necessary cardholder information • Batch file upload through spreadsheet template Cardholder Account&Card Production • Upon receipt of enrollment file,Key creates an electronic deposit account"EDA"for each cardholder,where funding is directed. • Simultaneously, (If not issuing an instant cad), an electronic file is submitted to Key's card production facility to fulfil and mail cards to each cardholder household. Funding • All funds will be prefunded via ACH into the City's DDA(funding account) • Loading funds is electronic, simple and cost effective for recurring payments KeyBank Proposal of Banking Services to City of Auburn Page 53 i KeyBank Own Activation • Cardholders will receive a card packet, shipped to their home,or provided at time of instant issuance;outlining the program;how to access funds,fee disclosures,as well as the card itself. • Cardholders can activate theircards by calling the toll-free-Customer Service phone number 24/7/365 using the automated IVR, in English or Spanish. • During activation, cardholders are prompted to select a four digit PIN used for ATM and PIN- based merchant transactions. Card Usage • Immediately upon activation,cardholders can access their funds at ATMs, withdraw money from a teller-assisted withdrawal at a MasterCard member bank branch, or purchase goods at retailers and online. • Access to cash is low cost, safe&convenient at MasterCard member bank branches,ATMs or cash back with purchases at retailers where MasterCard is accepted. Support • Cardholder:24 X 7 X 365 domestic live agent and IVR support in English or Spanish,along with a secure and convenient cardholder website providing balance information, transaction activity, text or email alerts, and online bill pay functionality. • City: Domestic program management from Key with secure and easy to use internet applications that allow you to enroll, maintain. and search on cardholder information and access program reports. Cardholders will receive a Key2Payroll Card Packet shipped to their home or provided at the time of instant issuance.The card packet outlines the program,card activation instructions; how to access funds,cardholder terms and conditions,a schedule of card fee disclosures,as well as their Key2Payroll card. If a card is lost or stolen, employees would contact KeyBank's enrollment 24x7x365 domestic cardholder customer service center. After successfully answering unique security questions, KeyBank will immediately shut down usage of the card. Because funds are associated to the account rather than the card, the money is not lost or transferred to another card. The card is the access vehicle to the account and associated funds. By cancelling the original card,access to the funds is prevented.A new card associated to the account will be embossed,fulfilled and shipped via first class LISPS mail to the cardholder's household. Upon request of a cardholder,the card can be expedited (overnight shipping). Funds already paid would only be accessed by the replacement card and subject to shipping timelines selected. Funds that haven't been paid could be provided via a new account with an instant issue card.The City would simply enroll the employee in another account and provide a card from stock on-site. Payment to that account would be through ACH and provided same day if necessary. Reports The standard reports available to the City are: • New Account Report: Provides details around all newly opened accounts on a given day. • Instant Issue Card Summary: Lists all instant issue cards opened on a given day. • Card Never Activated: List of cards that have not been activated. Standard reports are available to client directly through Key Total Treasury, Statements Employees have access to their full transaction history through the cardholder website www.kev2payroll.com free of charge. If the employee would like a paper statement, they can elect to receive monthly paper statements mailed and posted to the cardholder website for a nominal monthly fee. KeyBank Proposal of Banking Services to City Of Auburn Page 54 KeyBank Onw. Employees can access their account to inquire on their balance and transaction activity through the toll-free Customer Service phone number at no charge.The domestic, bi-lingual(English and Spanish)Customer Service Representatives and Interactive Voice Response(IVR)application are available 24/7/365 at no charge by calling 1-866-295-2955. Employees can also access the secure and convenient cardholder website at www.key2oaymIl.com to do the following: Change your PIN • Request paper statements • Check your balance • Update your contact information and address • View card transactions • Sign up for email or text message alerts • Online bill payment KTT Mobile As previously noted, Key recommends KTT Mobile, if the City wants 24/7 remote accessibility. KTT Mobile offers a select group of functionality tailored for Key Total Treasury users_All features use existing entitlements, so you will have access to mobile functionality if you have it in Key Total Treasury. KTT Mobile's features are targeted for approvals on the go and account information optimized for your mobile device. Setup and manage access to KTT Mobile for. • Positive Pay decisioning • ACH Approvals/Release • Wire Transaction and Template Approval • Self-service Approvals and Password Resets • Account Information Access your Intraday and Previous Day reports optimized for your mobile device. Search for transactions,save common searches, and filter long lists easily. mrsna ... m Cosa o.a raw View Intraday and Previous Day Account Summaries and Details, Search Transactions, and execute Book Transfers. Please visit our Key Total Treasury Mobile demo at the following link: httos://www.key.com/�oen/htm1/kft-mobile.html Consolidated Payables The City can realize significant benefits by streamlining the company's approach to making payments. Key's Consolidated Payables solution helps to: KeyBank Proposal of Banking Services to City of Auburn Page 55 i KeyBank . • Reduce the number of files needed to initiate payments; • Improve the security and timing of those payments;and • Leverage Key's help to transition check payments to electronic alternatives for your vendor payments. The City will be able to submit a single payment file containing any combination of check,ACH, wire, and/or card payments directly from your treasury systems,.ERP,or accounting package, or by easily uploading a file to the Consolidated Payables Online Portal. Card Wrre Check ACN 0 0 Vendor Portal& Email Notifreation 0 Additional features such as approval workflows,email notifications and a searchable payments archive allow you to further streamline the payables process. How if works: 1. The City submits combined payment files to Key directly from your ERP or treasury management systems,or upload payment files using a secure online portal, in any electronic format your system supports. 2. Once submitted, authorized users can then leverage our online portal to review, approve, and release payment files for processing. 3. Key will then separate your payment data in the approved file;we format check,ACH,wire and even card payments data,while retaining the associated remittance information for each payment. • Once payments are separated and formatted, electronic payments(ACH,wire and/or card) will be initiated, check payments will be printed and mailed(when check outsourcing services are used), and check issue information (for services such as ARP and Positive Pay)will be recorded. • Emailed notifications are available to help verify the accuracy and completion of all files processed. • Extensive reporting and data extract options provide quick and easy reference details for all processed payment files. • The City may also choose to leverage Consolidated Payables to deliver emailed remittance details to your vendors as well as provide vendors with detailed remittance access within the vendor portal. Consolidated Payables Vendor Portal Overview Key understands that the goal of moving payments from paper to electronic is front and center in the KeyBank Proposal of Banking Services to City of Auburn Page 56 I KeyBankOwx minds of many of our clients. More than simply offering electronic payment options like ACH,card and wire alternatives, Key believes it is equally important to provide the tools and services that help our clients turn the goal of electronic payments into a reality. As part of our Consolidated Payables solution, Key can work with the City to design a comprehensive campaign to evaluate vendors for different payment options, reach out to them with targeted messaging, and help enroll those vendors to.receive electronic payments. In addition, Key provides specialized services to help reduce the hurdles to electronic payment adoption while delivering value added services that benefit you and your vendors: • Key can help develop a plan to shift payments from paper to electronic options. • For card and/or ACH transactions, Key can help identify candidates for card and/or ACH payments, and help deliver targeted messages(email or standard mail)to vendors to drive enrollment in Card and/or ACH. • For check outsourcing, Key can help create targeted messaging to check recipients to outline the value of electronic payments, and providing a call to action to enroll in card and/or ACH. • For Consolidated Payables clients,the ability to email payment advices and post remittance details to a dedicated Vendor Portal helps vendors complete their payment reconcilement; reducing a significant barrier to card and ACH adoption while at the same time reducing phone calls to clients related to current and past payment details. These services,provided as part of a comprehensive electronic payments strategy, can help reduce payment costs and capitalize on the efficiency of electronic payment altematives. Integrated Receivables While accepting multiple types of payments is vital to performing the City's business, relying on multiple methods of receiving data can significantly impact the time it takes to post your receivables. To'improve the City's overall accounts receivables processing, Key offers an Integrated Receivables solution that will provide a single file that will let you easily post multiple payment types at once. The file will consist of all lockbox,ACH and wire payments,which you can load directly into your accounts receivable system. If in the future, the City chooses to add either KeyPay or Bill Pay Consolidator to its treasury services,these payments can be integrated into the file as well. This promotes straight through receivable processing from one Me, and the City can specify whether you receive BAI or flat files. File frequency and delivery times are as follows: • Once a day—By 8:59 p.m. PT • Four(4)times a day—5:00 a.m., 9:00 a.m.,12:00 p.m. &4:00 p.m. PT • Every fifteen minutes—6300 a.m.to 4:00 p.m. PT The following diagram provides a high level overview of the work flow: KeyBank Proposal of Banking Services to City of Auburn Page 57 KWUnkOms. Centralized Cards Receivables Repository Remote captu re ddftlb Checks ' „ Wires ACFNEDI R Bank Processing City of Auburn 13ranehPayments Q EM" File Delivery Direct file transmission via: SFTP+Secure File Transfer Protocol FTP w/PGP=File Transfer Protocol with PGP FTP w/TLS = File Transfer Protocol with TLS AS2 Posting all payment types at once, in a single file, leads to increased cash application performance and fewer errors, exceptions, and unauthorized payment discounts. Services Not Provided: In the event that the primary proposing financial institution does not provide all requested services included in this RFP,the financial Institution will submit as part of its proposal additional partners/providers whom do provide these services.It is the sole responsibility of the primary financial Institution to secure and maintain the relationship with any additional providers.The primary financial institution,at the time of RFP submittal will Identify all secondary providers. Should the financial institution be unable to secure and provide the relationship,In certain instances such as the City's financial system software vendor or armored car services,the city may contract with independent service providers. Key acknowledges and understands. KeyBank Proposal of Banking Servioes to City of Auburn Page 58 Section VI11. Banking Services Questions/Statements Please provide your responses to the items below In the order presented. A. Provide the names of Individuals,with phone numbers and e-mail addresses,who will be working on the proposed services and their areas of responsibility including their specific experience relative to the request for proposal requirements. Because we place a premium on relationships,we have developed the 1 Key Client Experience. 1 Key defines our operating behavior—our commitment to deepening client relationships, providing comprehensive services, and meeting the needs of individuals and institutions. With this in mind,we assigned the City with a dedicated team to serve your needs.This same team will be your contacts throughout your banking relationship with Key. Your Key Team Your Key Team members are dedicated to maintaining a close relationship with the City.They will provide you with a personal and hands-on approach, beginning with implementation of any new services and lasting throughout the relationship. Each team member is familiar with the City's proposed banking relationship with Key.As such, in the event that one of your main contacts is not available,the other qualified members of your Key Team are ready to step in seamlessly and assist you.The City's Key Team members are as follows: • rxpertisetKoi- 1301 F Avenue Vice President Seattle,WA 98101 Rabbi Stedman Senior Relationship Manager Phone:206.3436970 Public Sector-West Fax 866-785-9277 KeyBanc Capital Markets Robbi.Stedman(cDKev.00m Vice President,Western Region 1301 5 Avenue Michael Public Sector Cards and Payments Seattle,WA 98101 Thomas Enterprise Commercial Payments Phone:206-689-5713 KeyBank Fax: 866-785-9277 —Michael D -ThomasaKeyBank.com Vice President,Senior Client Manager 1301 5n Avenue,25 Floor Debbie Rlvetts Public Sector Cards and Payments Seattle,WA 98101 Enterprise Commercial Payments Phone:206-343-6961 KeyBank Fax: 866-785-9277 Debbie A Rivetts KevBank-com 1301 5 Avenue,25 Floor Sales Associate Seattle,WA 98101 Le-Hoa Vu Public Sector Phone:206-343-6963 KeyBanc Capital Markets Fax: 866-785-9277 Le-Hoa VuOKev.com Robbi Stedman will continue to be the primary contact for the City's account management, along with the partnership of Michael Thomas.They will work with you collaboratively to ensure your complete satisfaction with the relationship, as well as act as trusted advisors in helping you accomplish your financial objectives. Robbi will make certain that all contract requirements are met and educate you about new solutions and services that are available to meet your changing needs. With more than 16 years of experience providing treasury management solutions, Michael will work with you to tailor your cash management solutions and services to produce the most beneficial results for the City, meeting both your current and future financial needs. He will serve as your payments KeyBank Proposal of Banking Services to City of Auburn Page 59 advisor and will be supported by Debbie Rivetts. Debbie will be your day today contact and participate in the implementation of any new services. Debbie's responsibilities include daily customer service for any questions,changes or needs related to the relationship. She has extensive expertise with government entities in the State of Washington and understands the unique needs of the public sector.This includes personnel and their roles, the City's account structure and related services. Debbie has worked exclusively with public sector clients since 2000 and truly makes a difference by delivering professional and timely solutions to our clients_ Roles and Responsibilities • Robbi's responsibilities for the City will include. • Serving as the City's relationship manager and primary point of contact; • Maintaining oversight of Key's entire City relationship;and • Ensuring the depth of Key's capabilities is available to the City. • Michael's responsibilities for the City will include: • Serving as the City's Treasury Services expert, keeping you apprised of industry changes and product development; • Tailoring Key's cash management solutions to meet the City's current and future needs;and • Overseeing the implementation of new services and enhancements to the City's relationship. • Debbie's responsibilities for the City will include daily customer service for any banking questions, changes or needs.As the City's day-today contact Debbie will: • Serve as the liaison with our all internal processing groups; • Be a vital member of the implementation team to ensure smooth set-up of new services and users; • Respond to any questions the City might have about their services, accounts,or account analysis; and • Work closely with our ACH and Wire departments. • Le-Hoa's responsibilities for the City will include: • Correcting encoding errors and deposit adjustments; • Assisting in fraud affidavits and ACH returns;and • Providing copies of deposit or warrant items. B. Submit at least five(5)references(preferably from current local government customers)who can attest to the financial institution's experience as it relates to providing banking services. The references must include contact name,title,address, email address,telephone number and services used. Key serves more than 1,100 public sector clients nationwide and views the public sector as a special line of business with unique requirements.As such,we maintain a group of dedicated, highly specialized professionals trained to serve its needs. These individuals, many of whom have extensive backgrounds in public service, understand the opportunities and challenges you face in the constantly changing environment of government.They can satisfy the most simple to the most complex situations by providing you with a variety of creative solutions and services. Key's.public sector experience is further evidenced by the following references,which.have needs similar to those of the City: KeyBank Proposal of Banking Services to City of Auburn Page 50 I REFERENCES contact,-NamW-1 Kelley Wood Title Treasury Manager Address 15670 NE 85h Street;Redmond,WA 98073 Phone 425-556-2161 Small kwoodQredmond.gov 2. City of Federal Contict Name Ade Ariwoola Title Finance Director Address' 33325 8th Avenue;Federal Way,WA 98063 Phone 253-835-2520 Email ade.adwoola(Mcitvoffederalway.com 3. City of Yakima Contact Name Mary Moore Title Financial Services Officer (Address 129 North 2nd Street;Yakima,WA 98901 Phone 509-575-6024 Email marv.moorefawakimawa.gov 4. City of Westminster Cdi#act'Wame Rachel Price Title Financial Analyst Address 4800 West 92 Avenue;Westminster,CO 80030 Phone 303-658-2441 Email rice(cDcitvofwestminster.us Contact Name-- Doug Farman Title Finance Director Address 2255 West Berry Avenue;Littleton,CO Phone, 303-795-3781 Email I dfarmen0RT1e_tonQov.om C. Describe your institution's community participationlreinvestment program including your Community Reinvestment Act(CRA)rating. Key has consistently received an'Outstanding'rating for its compliance with the Community Reinvestment Act. Fewer than 10%of financial institutions in the United States are awarded the outstanding rating, which is based on an institution's level of lending, investments,and service within the low-and moderate-income communities in which we have a market presence. Key is the only U.S.national bank among the 25 largest to be rated Outstanding by the OCC for eight consecutive review periods, since the Act's passage in 1977. CEO Beth Mooney stated, "It's a testament to the character of our people and our commitment to serving all markets in our footprint' Community Reinvestment Act(CRA)Rating for State of Washington: Outstanding The lending test is rated: Outstanding The investment test is rated: High Satisfactory The service test is rated: Outstanding KeyBank Proposal of Banking Services to City of Auburn Page 61 Major factors that support this rating include: • Excellent Lending Test performance based adequate lending activity and good geographic and borrower distributions. In addition, CD lending has a significantly positive impact that elevates Key's overall lending performance rating to Outstanding. • Good Investment Test performance based on a good volume of quality investments that are responsive to the identified needs in the assessment area. • Excellent Service Test performance based on excellent branch distribution. The bank also provides a good level of CD services. Key's commitment to the community and social responsibility takes many forms—from charitable contributions to Community Reinvestment volunteerism and civic leadership—but in Key's long history of Act(CRA)Rating for involvement in Greater Seattle, one thing is always consistent: Washington:Outstanding we support programs and initiatives that focus on economic empowerment, workforce development;financial education, and cultural diversity. Our employees serve on nonprofit boards and volunteer for local organizations that improve the quality of life for all. Key's Community Development Banking group invests in creating success for individuals, small businesses,and neighborhoods in low-to moderate-income areas.And through sponsorships,we support the community by underwriting seminars,conferences,forums,art exhibitions, neighborhood capacity-building, and area colleges and universities that help define our region. D. Describe your institution's customer service philosophy and organizational structure and provide meaningful examples to illustrate. As your trusted advisor, Key places a premium on relationships;that's why we developed the 1 Key Client Experience. 1 Key defines our operating behavior–our commitment to deepening client relationships, providing comprehensive services,and meeting the needs of individuals and institutions.We place a high priority on customer satisfaction and have established customer satisfaction goals. To ensure that we are meeting your expectations, we periodically perform extensive surveys. Results from the studies are used to: • Evaluate and trend current performance and satisfaction levels for each Key core service • Identify any changes in key drivers of overall satisfaction • Measure outcomes of actions taken and benchmark service performance • Identify strengths and opportunities for product enhancements that influence customer satisfaction The Commercial and Business Banking Internet Team,supporting Key Total Treasury(Commercial Online Delivery Channel)and Treasury Services is a fully integrated contact center comprised of services professionals dedicated to proving service excellence and real time system support for, navigation, education, troubleshooting, error resolution and product support for Cash Management Services.The team consists of professionals with an expansive and robust knowledge base of Key's products, systems,and services with a focus of"Once Stop Shop"philosophy. With a Key Team of professionals,the City will continue to be provided with a personal, hands-on approach, from the implementation of new products through the ongoing management of your relationship. Key is fully committed to providing exceptional customer service. This commitment is evidenced by the following: • The Phoenix-Hecht 2014 Treasury Management MonitorTm awarded Key ratings of"A+"or"A KeyBank Proposal of Banking Services to City of Auburn Page 62 across a comprehensive range of treasury management categories, including areas of customer service, overall relationship manager effectiveness,and products. • American Customer Service Index(ACSI)survey results indicate that compared to the nation's largest banks in the survey, Key is one of only two that Improved Its overall customer satisfaction score for two consecutive years. These results are significant to the City because not only do they underscore our capabilities and dedication to customer service,they also position Key to compete on a different level,often with larger banks. E. Provide the following reports and information about your institution: 1. Analysis& bank statement Please refer to the Appendix for a Sample Account Analysis and a Sample Corporate Bank Statement. 2. Safekeeping statement and receipts Please refer to the Appendix for a sample safekeeping statement and receipt. 3. Most recent financial statement The most recent financial statement will be included as a separate CD attachment to the Appendix. 4. SEC and/or Moody's credit rating or comparable rating Rating Summary—KeyBank NA Moody's watch Sidle `ems Tom' MOODY S Short-Term R p INVESTORS SERVICE Standard&Poor's Cut"" Raft Ou Sbltk% Lang-Telm a STANDARD short-Term X2 &P O O R'S q.rnec senvfrrs F. Provide a funds availability schedule.Describe one day,two day availability and wire requirements. We are pleased to offer the City our Premium Availability Schedule for depository services and our Key Capture Availability Schedule, both of which are included in the Appendix to review. G. Describe your Balance Reporting systems and availability. With state-of-the-art security, Key Total Treasury, our 24-hour Intemet based delivery channel provides a single point of access for the City to perform all its treasury management functions. With the click of a button, the City can initiate transactions, download reports,manage accounts, and make payment decisions_ Key Total Treasury is a modular system in which the City can choose the modules needed to create a customized application. KeyBank Proposal of Banking Services to City of Auburn Page 63 • View or download standard and specialized reports as well as customer statements with Information Reporting. • Use ACH to initiate or import electronic transactions, such as tax payments and payroll,through a user-friendly front end. • Initiate one-time and repetitive Wire Transfers and drawdown requests with real-time reporting. • Customize Account Management tools such as stop payments,check images, positive pay, and return item reporting to manage accounts and reduce fraud. • Transfer files safely and securely to and from the bank using File Transfer. • Perform the most routine maintenance requests at your convenience with Self Service. Key Total Treasury offers a full range of balance reporting capabilities,which allows the City to access both prior and current day information.The City has access to real-time information, eliminating the use of multiple programs. 1. What hardwarelsoftware does the bank use to deliver balance and transaction detail information? Key Total Treasury is a first class online channel with an easy-to-use client design, customizable reporting, and all the treasury services you need to support your business needs. It provides a single point of access to initiate payables, manage your receivables,and control fraud. O'A Key Taftl Treasinv- •araaraunn Wrrq�mr r mm�n �.a,eer r N ��__ T area.rrmpasn+w �.- Weft=*,John T.SMIM to K•y Total T &Kn* rm romx�r New conft Soon e easy secum A mr ov.m Uaa m aw Am,Vow—P Pufte-wqj lwn�mw' 'tram wwen�a Loam Fue T mwaw Kq eaareomum M Stay Protected Key uumues XP End of Uh XWOPWOM" owmntrr".KTT qww r w M Ror2ftynm pm trd ... � Vti •a I...n N.r.• .. can VaW aar�ot 7 mtl amr arm. Since Key Total Treasury is a Web-based system,there's no need to use special software or hardware. It supports an unlimited number of users, and the system can be accessed at any time, from any Intemet-capable PC. It also provides access to real-time information and eliminates the use of multiple programs. The City will be able to monitor account activity and quickly access the information needed to make critical business decisions and optimize cash—standard and customized reports, statements,to do research and image retrieval. Key can also provide daily BAI2 files of current day incoming Fedwire and ACH activity posting to the City's accounts via the secure FTP method. In addition to the daily data files, daily transaction reporting will be available through Key Total Treasury's Information Reporting module. Account(s)Balances and Transactional Information Via Total Treasury Information Reporting Module The City will have online access to a full range of balance and transaction reporting capabilities through Key Total Treasury's Information Reporting module. On demand, you can view or download standard and specialized reports, access current and previous day balance KeyBank Proposal of Banking Services to City of Auburn Page 64 information, and save reporting criteria to create reports that are customized for your unique system and needs. V-R Key Total Treasury® Tom.a000aae we IF C.I*w 11 r.•a.n ako...m.srarmemrm. tntormatlen Reporting`'/p StandaM Repores W -. r`a.IUU D.r w.nro dare wlMam Did you know-P Ma rrb aPbmb rPmlp mp.r.w aamtmalAP•m se9d wr ►b.d.r WAVY dMre wPram ,Ay®ao 4�irlPmnPrnvr nrmetlrVOPrI aaP.IYMPamwq PV lw eAa M1Pb".OW R. leer flkar vl.iP�M>ram PIA A. V&VWrfkWa� eas YeatlP Maw MN omrY @n OW.—o riP lam. .--._ ...._._ ._....._� Pr♦mire. r... rmr Corperstn Banklna STartemer6t Veu war.Pb.p.re.aa swj"mlP xwfils m nm ffi ._... eg.ry weml..east$n.vw...rl St6�aPWtnmtll L.ealbnw aeeal.aa uww.opmss.er.bm..+mwYpY rrsrm rev s.ma.. Iqn ad.a.m ow.o rw Ialar nPnerr .�vww WM.A ry LsaeO�orY Oioq Mw rarw Mbm Yramarre LoriOM bl.ofl0�aWarram Pm mnAO mma P wmwmrrsr.rat/or7er m16ro.v ra.. t®w Q Ymaeabw.wm.rasrearor A Y...sM.dPt MwrI�V er.te.Ym.e.ra�ar�sar3 J �°i�`^aa eq"'P' Paw row Previous and intraday information will have the option of"summary only"or"summary and detail' information,depending on the level of service you request. Previous Day Report This report includes daily balances,transaction detail,and balance history information. It will display prior day account status,account summary information, and detailed account transactions that include descriptions and reference information. Key Total Treasury® Tom s Reaaa We tlghta ratea u L".0 shwftot ISded Pd dick WVw Previous Day Reports sonny IM CaMmItgmA U G*. Q ft—u ®aPPew— a mra Daweme Report Dan:Sep 28.20XX Dalerded see 30,MX zees EST U rsOm-An Total Balances 8 OWAV! '0, 0Mft AYWWft 1Dftr Fbd 2.DWFbd Tdd Oab Td Opetq AraWY $21.553,72990 $11.217177.90 617 uliT.00 $11.28740 115,11748837 4571059.19L73 f24d7913mAo U Acoounr.Acmo Afldaot%Gonora11200000278 IrartleotnwawA-W*dkMO4j2 oDa9 aahnns Croft sanuwMe Deft 90rnwke Ontq LCOW $Man= AOI Deft(5) SSM51 ACfOM(2) 417126 taertq APaaen $am DW=b(3) $1e.9alm Occh(IS) -537$193+ 1 owed Rf,ee7m Nea haste DomM Wm RdurreotOMMIM01J SODD 2-Dar Fled $551 AD 70A Oods(0) Wm Vgroha Date= SDDO Told OeAa 230,177.110 *h.WmOaaa(1) 18,104101 SBA DOM DA Slim Tadom -SUASO eB TOW treats hl $3M"M cow an Dom p) -11,774.41 OwftAval"CO3DDf1M ta,ee7m TodDatlt (131 434,194.18 Transactions 2=20 U Oatt LIM OmttRat QffKRG1 AI"WM MOMM AeNlvtradA04 Ota AamVddpa Rom 1794507890 83=so Q7aB7S016f " ,' Tramfe 4NaatBan Rer Ne_•�Sl7feDa1FM.Ref N.-.MSMNBMM U 1ZJ1a789D $65m Detailed information includes: • Closing Ledger Balance KeyBank Proposal of Banking Services to City of Auburn Page 65 • Closing Available Balance • Opening Available Balance • One-Day Float and Two-Plus-Day Float • Total Credits(amount) • Total Debits(amount) 2. What time is previous day information available for access by the customer? Previous day information is accessible by 5:00 a.m. PT. 3. What are the hours of access of the balance reporting system? The system can be accessed at any time,from any Intemet-capable PC. It also provides access to real-time information 4. Does the bank provide current day information? Yes. The City will be able to access intraday information via Key Total Treasury. Intraday Report This report displays current day account status, account summary information,and detailed account transactions(descriptions and reference information). It includes branch and vault deposits,ACH, and wire transfer. 4a Key Total Treasury® TO&SR ((gam„ CorM„ Ioomr s11Wh1ap Sa1sC•10tl0l NOtY � intraday Reports cetutm Room uoea QA.-*. aTro-*— 15prat %m.Md Ripon Dm:Sop 30.2OXX Pweka sea a,mxx zesw En U U Act ounr Acme Widnets General 1209500278 Ns18Nrt9"A4=doWna1120109 SaMM OTlml ereomsonamarks oael Salo lies OperingLedoer 11S.Md303e E"ACHOe M $50025 E*ACHDobb0) rAM.75 Aft 41=30 LAI A01 Oodb(3) IMA UloAVADcb en) 430034 upcaarrle Nwho "SJ7 t U AA0018 MAa rr•o N Mh M 41977 33 Q=tL wa ate NbeTrwavOeme(1W n9nb Otlwnescoebht7) 42SU33 Onpa Avdit i22Sf03S Ogmh 384712 Towoda*1171 47MUs Moor IBfc Oade(4) DA34M Tow Cram(ri) Plix s Transactions qyw8dtl U an Iml Qa> AowM MUM prWA=Uaa ACM OM 11 A®ONeod ftW 13MOM G5MQ 10( ~case•Trwfar u 555ID 050MQM Oug"Throw R&MME Rat Me_OMIM Mfed tier,190,041IMM87fA11?.a u -s1),Sen OLOM a Iauoo.Doped U 510516 Real-time data includes: • Opening Ledger Balance • Holds(amount) • Current Ledger Balance • Current Available Balance KeyBank Proposal of Banking Services to City of Auburn Page 66 a. How frequently Is this information updated throughout the day? This depends on the type of data the City would like to view. All times are reflected in PT. • Wre transactions update approximately every 15 minutes,6:00 a.m.—4:00 p.m. • ACH transactions update at 5:00 a.m., 9:00 a.m.,and 1:00 p.m. • Controlled disbursement has a single presentment time based on location of account— OH, NY, and ME is 9:30 a.m.;UT is 11:30 a.m,; and AK 1:30 p.m. (All times are reflected in ET) • Lockbox has several loads throughout the day based on where and how your lockbox is set up. b. What transaction types are available on current day reports? The following Transaction types are reported: • Wires • ACH • Lockbox • CDA * Remote Deposit(Key Capture) S. Describe the level of detail provided In previous and current day reports? Previous and intraday information will have the option of"summary only"or"summary and detail" information,depending on the level of service the City requests. Summary Reports These reports display an aggregate view of your account balances. ■ Previous Day summary information includes o Closing Ledger Balance o Closing Available Balance o 1 Day Float o 2+Day Float o Total Credits(amount) o Total Debits(amount) o Opening Available Balance • Intraday summary information contains: • Opening Ledger Balance" • Total Credits(amount) • Total Debits(amount) • Holds` • Uncollected Funds' • Current Ledger Balance` • Current Available Balance` "Denotes real-time data KeyBank Proposal of Banking Services to City of Auburn Page 67 Detailed Reports These reports provide an aggregate view of your account balances,as well as comprehensive transaction information that contains descriptions and associated reference information for incoming credits and debits. S. How many days of history can be accessed through the system? Previous Day and Intraday reports are both available for 180 days. T. In what format is information available? The following download options are available with little or no manipulation required: • For previous day that includes: Comma Delimited(CSV),Tab Delimited(TXT), Excel(XLS), PDF, QuickBooks,Open Financial Exchange(OFX), and BAI2. • For intraday that includes: Comma Delimited (CSV),Tab Delimited(TXT), Excel(XLS), and PDF. 8. Provide a sample printout of the daily on-line balance information. Please refer to the Appendix to review a Sample Previous Day Report and a Sample Intraday Report. H. ACH Services: 1. What is the recommended service delivery method(i.e.direct transmission,online,or other)? Key recommends that the City continue with its current delivery method of Key Total Treasury's ACH File or Transfer Modules. Key is both a sending and receiving bank on the ACH system and has been one of the top ACH origination banks in the country for several years. You will be able to complete the following transactions types via direct transmission and the ACH and File Transfer modules of Key Total Treasury,our 24-hour intemet-based delivery channel: • Payroll and direct deposit • Expense account reimbursements • Vendor payments • Electronic fund transfers • State tax payments • Repetitive transfers • Federal tax payments • Cash concentration • Pension payments . Pre-authorized debits • Child support deductions • Corporate trade payments Direct Transmission Key offers both attended and unattended file delivery services,providing a simple and secure method for processing and/or retrieving files from a designated mailbox at Key. There are two standard methods used to send and/or retrieve data: • Encrypted File Transfer • Key Total Treasury web-Based File Transfer All transmission channels are available 24 hours a day, seven days a week. However, Key requires that an ACH file sent in through Direct File Origination or web-based file transfer be received no later than 6:00 p.m. PT one business day prior to the file settlement date. Sending KeyBank Proposal of Banking Services to City of Auburn Page 68 your file in by 11:00 a.m. PT will provide an opportunity for making minor changes to your file(if necessary)while still meeting the deadline. Key Total Treasury File Transfer Module In addition,through the File Transfer module, you can easily transfer files to and from the bank. To retrieve a file, you'll simply click on that option,choose a file type, and then save the file on your PC or LAN.When sending files through Key Total Treasury, our system will send it on to the appropriate back-end system. The following are standard methods that we employ to send and/or retrieve data: • Web-Based File Transfer • Encrypted File Transfer Encryption is required for all file transfer protocol(FTP)with Key, and we provide two encryption options: • FTP with Pretty Good Privacy(PGP)encryption(signing optional) • FTP/Transport Layer Security(TLS) You will be required to input file totals.You can do so through PassKey, Key's voice response unit for capturing ACH file totals. However,we recommend using our state-of-the-art ACH Direct offering, described later in this response. Pis Key Total Tremurye FU Transfer —— Servlees r r�bet Arammluq:aArr a dPa.-OndmmT.rovernV4Roett" Ae1c sao Pu ET •Ftt tlenm+llmoy Feton •ETt TrmsMr�s ileo.rt 230 PEA Cr •T�Flrw Tewintw M" Moo PN ET viw. 6:30 PU ET I�lA�andtn.a NtV*M PQPt-AATO)n•Afmr AOMxwft� aw AY ET mC 0:00"ET AR► 0:00 AM ET A..MR.c.nt...t m. UOMET cam*an atwpe.a tft ov awkwt 600AMET on h.r. &W AU ET ME-NH Vf-M4X4-1d0 10:00 AN ET CO-W-O.OR.WA 11:80 AM ET Mt amen fat: abo AN ET Key requires that an ACH file sent in through direct transmission or file transfer capabilities be received no later than 6:00 p.m. PT, one business day prior to the file settlement date. However, Key recommends that files be sent by 11:00 a.m.PT,which will provide an opportunity for making minor changes to the file(should it become necessary)and still have it ready to originate by 6:00 p.m. PT for next business day settlement. Key Total Treasury ACH Module The ACH module will allow you to initiate ACH transactions through an easy-to-use, integrated set of Intemet-based tools. If you have proprietary software capable of creating compatible ACH files, you can upload the file directly into the web site template,following a set of step-by-step instructions. KeyBank Proposal of Banking Services to City of Auburn Page 69 i O-N Key Total Treasury® TWUARNWM umoOM o Lb .ACH servieea MACNCeffr a ACH 8m hM ft aNtl P=m 7Ms: 10M AM.&00 PM aM 60 FM ET pn.Frq •GemeBahB•M EnbY Aa8VxhB+tNvrjvaw gRnim: BABPM-HBBPMET0%&Ftq �Crtete BhhB-AWmmM pap lmoA ����aBUBPM ET Ue OeD�et 10 AM Ef on Ox 1p7A 8161169 Qay,J • •Remm�G •ago"smlllconl • ACBbh Fkm'1 Once you've created or imported an ACH batch with transactions, you'll simply update the dollar amounts if they have changed,and set the effective payment date.Then, at least one day prior to the settlement date(two days lead-time for direct deposit of payroll, same-day for Key-to-Key transactions),you'll approve and release the batch. Key requires that a file sent in through the ACH module be received no later than 5:00 p.m. PT, one business day prior to the file settlement date. However, Key(like NACHA)recommends that you originate payroll and other credit files two business days prior to settlement.While most files settle without incident with a one-day origination window, two-day origination provides the safety that an originations delay or a posting delay at the receiving financial institution will not impact the recipient. a. What are the hardware/software requirements? Key Total Treasury is a web-based system,so there's no need to use special software. Authorized City users can access Key Total Treasury from any intemet-enabled PC. For optimal performance and security reasons,we advise clients that they should use only versions of browsers and operating systems that are currently supported by the manufacturer. It is very important to maintain and review your systems and keep up with recommended updates to protect your company and to make sure you are getting an optimal Key Total Treasury user experience. This does not mean that older versions of browsers and operating systems will not work with Key Total Treasury; it means that they may not work as well, or as efficiently, or certain functions may not operate as Intended. b. What training does the bank provide? Our support includes training, technical assistance, and onsite visits as required or requested. User manuals are also provided with some services. In addition, for Key Total Treasury, help screens, drop down menus,and a special Tools and Resources feature provide all of the necessary information to set up repetitive templates. KeyBank Proposal of Banking Services to City of Auburn Page 70 u.rwa.e..rra®.v.r arsr.r.re..vraw....r u.sm.srr..am.rr. wrersm.ma �.i�04ros41.a%11, p.trrw,®OVrN..,1. ►wwrv...r •n®eaRmts •matmam 9�1 ►Ore O.O. 61�I.1 • YJ ►7�r.e .4477�. .�� '►v4rw v e m .radwam A •do b ♦O.am010.0 •60LM�ki •qu 49 ►Y6rs ti )< •64mar6om4e L ►rrsarra7r .�s •eaa�aimet�; w.egmow 9 ..�,�°7i.wr�a.d.�°surm,° •EMANUOs ,s„sarwwer.rwwm C8 • 0om2209ME.ne 1� ,wem.r A. rver.. 9 ,.exn►vrtor.rar.rm •maa2nw:a e.r,rrdw� •�aea>vm�av pur.ww4owv. •s2ae.a® C3 Men CANUZIMIMMAMMM Your dedicated Key Team members will work with you to provide assistance as needed.We also encourage you to use our first-class Commercial and Business Banking Center for routine questions and issues after normal business hours.The Commercial and Business Banking Center acts as an extension of your Key Team, and our Specialized Services Group goes through six weeks of specialized training in order to respond to your questions.They are equipped to handle the specific business needs of Key's designated gaming clients and can be reached toll free at 800-539-3713,weekdays, 6:00 a.m.—6:00 p.m. PT. c. Does the software offer the ability to manage security and access levels by user? Security Levels and User Access With our Self Service tool,you will be able set authorities for Key Total Treasury at company and/or user levels and control the services and individual accounts that users can view.Your administrator will be able to: reset user passwords;edit user access times;change the services users can access; and remove users from Key Total Treasury. Key Total Treasury' Seli Service H.— v� Self Service: Acme Wldpeb,Inc. MaheananeeQueue a 0MeWtoSWSWWM for,427oIYTrUSM 7 u Qeme laafform Company pnoft O r ma . e= 220M an ®6,nvaaa Uwe,,r.w et._r r 01n9oma A"UM Jm ueiar WaL OM Company so r O'amma 2w sm al 61,osm,lwnnrr lenr.VOs r amwa tlr P.rs—Arc, a.R.w.lautlM S..w u~ r 0tmwa ann asa�y JO.p.usam Skpwe.m-w Accou na r airma 4 Voehar , SkMMI lamCR loos VOsu 404— "Od We4.cw,m U aasmtozna® Ih0ffiQ aamow neeeu.,.vev.ev x236787767 X aeee.nx.aee.w.er 136763786 X 12777463" X uses aan..vneen x3..m, t2MOCS.M W,lwv •,rn ee..e• ....nrwx....,» aem.5Wle.n u.nr. 1967760.• X a� 7A987136 X 9tma YmA {aatla� avmvn 6t.f.len A WAMSl® 6Y174W IM M X a....n an,a•r AW9QSOn 060:BQ0101922 AV X A 6 Log-on IN have access control as part of their function,and there are four ways you can limit or control access of specific users: KeyBank Proposal of Banking Services to City of Aubum Page 71 • Control the functions/information a user may access. • Control the transaction amounts a user is capable of producing. • Control the time of day at which a user is allowed to log on. • Control the days of the week the user is allowed to log on. d. What ACH report options are available? Key Total Treasury provides an ACH Customer Activity Report, with summary and detail of batches on the system, as well as reports on batches sent. Our reports are available for retrieval as human-readable formatted reports and/or as downloads.You can download in a comma separated variable(CSV)format to load into spreadsheets and/or a BAI2 format. ACH Customer Activity Report(CAR)—Provides information on all ACH transactions originated from your Key accounts. You receive a report every day for which there is ACH activity, such as transactions initiated,adjustments, notifications of change(NOC),etc. 4s Key Total Treasury® TG*&R Lho CO,„ C&M w Logo sNtmla..seas etr.sa.* 0-M R3362-1 R•TBank NXT10 LL ASSOCIATION ACCOMIT NUIRM 111111 137 PUBLIC Bonn SEMnZ NT DATEt 01/02/20X2 CLEVELAND ON 99119 PACE 1 SPAM CM,IDATED 3"USTRIn n............................ ATM 80B BO83MOR • DIRECT I NQUI M TO I BPARNT VAT • 1-800-111-1111 CLEVELAND, 0BI0 95329-0000 •n..n...................... . Am ACTIVITT SUNHART THIS REPORT DETAILS ALL ACTIVrrT TEAT RELATES TO ACS TRA01mew TEAT atat 0auniATEU ON Toga BE w. I. AWWTEEffT ACTIVITY CONFLETED TMAT- Taa BECTrm cON►LBBB ALL -, TBmTS COBPUTED Tam m Toga-aEBALr. No ACTIVITY 83999-9 ft"ank RATIONAL ASSOCIATION ACCO@rr NUBBEat 111111111 127 PUBLIC SQUARE ISMERM DATE: 01102/20EE CLEVELAND ON 95215 PACE 2 SPAM C®OdDATND INDUSTRIES .............................. ATTN: 00 BOBB110CH DIRECT INQUIRIES TO 1 SPAM WAY 1-OM-111-u11 CLCMAND, Oslo 55129-0000 •••••••••••••••..••........... ACB ACTIVM 9QBBANT ACH Batches Sent Report—Allows you to view batches that have been sent via Key Total Treasury within the last 12 months. KeyBank Proposal of Banking Services to City of Auburn page 72 0-9 Key Total TreawryO Teebeeemeoee u®oyom Cwwun Loom mwem.SoYtlertldolrW . Satchee Sent Report edamanm 0MVVW..swuaraaaane� eUett Gene ®ecanBete IoM Got sweet ei Trewdmeu cow"O and creme o�helAnaoaf Nov Z%2W Jen�.a7gf 7 cape am SMOURSM-AOINRNEt LeBow Kay KrA3R fQK9tft*Ama111emfa P Proems ^We�J e. What controls are In place to protect against lost files and duplications of transmissions? Our ACH PEP+software houses schedules of originations for all our ACH origination clients. Our ACH Operations area will call the originator if a file has not been received on a scheduled origination date. If the originator has not previously contacted us,we will also call the originator if we receive an unexpected, additional, or duplicate file.Key uses file control totals for edit checking and also systematically inspects for duplicate files. f. Does the bank provide automatic file receipt acknowledgements?If so,how? Yes. Key provides email notifications for ACH batches pending for release originations online via Key Total Treasury.Clients can receive email notification of"new"ACH batches pending release on an hourly basis. Multiple batches eligible for release during the same hour will be aggregated into one email.These emails are sent between 5:00 a.m.and 4:00 p.m. PT.. Clients can also receive email notification on summary of"all"ACH batches pending release for the entire day each morning. Email notifications will be generated with all accumulative batches awaiting release that have an effective date greater than or equal to that of the current day's date.This email will be sent once a day, shortly after 5:00 a.m. PT. Through our KTT Mobile offering, we now also offer mobile alerts for ACH batches that need approval and clients may also approve them via a mobile device if they are away from their office. Direct Transmission clients can receive emails confirming file receipt and that files have been processed successfully. g. Describe the role of any third-party processor used by the bank to provide this service? Third-party processing is not used for this service.The ACH process is handled entirely in- house. 2.What are the hours of operation of the ACH unit? KeyBank Proposal of Banking Services to City of Auburn Page 73 The ACH Operations unit is available 5:00 a.m.—8:00 p.m. PT, Monday through Friday. 3. What are the bank's cut-off times for customer initiation of ACH transactions? Key requires that an ACH File sent in through Direct File Origination or web-based file transfer be received no later than 6:00 p.m. PT one business day prior to the file settlement date. Sending your file in by 11:00 a.m. PT will provide an opportunity for making minor changes to your file(if necessary)while still meeting the deadline. Key requires that an ACH file sent in through direct transmission or file transfer capabilities be received no later than 6:00 p.m. PT, one business day prior to the file settlement date. However, Key recommends that files be sent by 11:00 a.m. PT,which will provide an opportunity for making minor changes to the file(should it become necessary)and still have it ready to originate by 6:00 p.m. PT for next business day settlement All transmission channels are available 24 hours a day, seven days a week. 4. Describe the procedures used to verify accurate and secure receipt of transmissions. The procedures used to verify accurate and secure receipt of transmissions include the following: • Each client has a unique transmission ID and password to transmit data to the Key. Control totals are included in the file trailer record of the ACH file. Key offers four methods by which the client can submit control totals: • The client calls, uses touch tone phone to a secure VRU system and inputs control totals to ACH Operations. • The client also has an option of entering this information online via ACH Direct,which delivers self-service ACH management and fraud prevention tools, and is available online via Key Total Treasury—our 24-hour internet-based delivery channel. Key Total Tnmsurym TpmAp MUM woamaw eftow i ACH h1r2ct MIir�awmaommy.���arm.m.m.Nawoomr.n ewa�awu.y.wa.os.aammnon�eraomeaer.wn-amp mmaRrtv4mabdpema NM o111�MmaY oeA aes amen aepaa am aanu 6 a eeN a Dram meY+e mrm ab ie.mra aa�ma nawnaa rawaae.ees eaaaoes u awm ems a TLaimmmaY w 4rrTAebaAwoaaaoaer UMPOA►Dl50aecPplMel lIueam�memWeafummM>Imomeaammam4 aaroanarrnWM aWamaceAOlmet u916MOmmrm • PaeLN apmnn rig MMUFRTmOWaOMIMUNUft memo Dom memrmmOVACU UM Raiq e�m0,m099aammaemnmeamo�tlwummaumlaNW lIOI Or4lmmo>atWa. Almmcoama aAO10•aQY mt a""~'=== range ACN ae aaatatm WVAUMO rAed.NM oarm QM p M AONoaaOaaw w n egra artr`am AAeagmaa ACNOtIW awm 'ft EPA W—na—b acme.of ne]emc�arrV CON AVWM•0!sC"WkWcav V"p�WS .00arav moo EFOr ACM Dbld • The client emails controls totals to a secure email inbox in a prescribed format • The client can transmit control totals(in a separate file transmission)directly from their computer system. KeyBank Proposal of Banking Servioes to City of Auburn Page 74 i • The ACH Operations area compares totals that were called in to the actual file that was received. The client will be called if these totals do not match_ • We also keep a calendar of scheduled origination dates for all of our origination clients.This calendar is programmed into our ACH software. If a file is not received on a day for which an origination was scheduled, the client is contacted. Likewise, if we receive an unscheduled file and were not previously notified by the client that an unscheduled transmission was coming, the client is contacted. Alternative methods for delivering ACH files in the event of disaster are available. Should such a situation arise, we will work with you to determine options that are best for your organization. 5. Can the bank automatically redeposit items returned for insufficient or uncollected funds? Yes. Key can automatically redeposit ACH items returned for insufficient or uncollected funds.An item can be represented twice. The redeposited entry is not reflected on the customer's account—only the final return(if applicable)is reflected.We also offer conversion of NSF checks into ACH Returned Check Presentment(RCK)for up to two re-presentments. ACH RCK Rules • Consumer checks only/entry must be for the face amount of the check only • Must be less than$250 • Dated 180 days or less from the date the entry is being transmitted • No written authorization required—notice or signage posted • Limit of three total presentments(including the first one via paper) • Consumer may dispute for 60 days • Check laws and ACH rules apply • Clients must be notified in advance Re-Presentment Options –Option O t • Original deposit • Original deposit • Paper redeposit • RCK 1st presentment • One RCK presentment • RCK 2nd presentment 6. How does the bank handle file,batch,and item reversals and deletions? Reversals and deletions(of files, batches,or individual transactions)can be originated via a direct transmission, file transfer,or through the existing batch listing in the ACH module of Key Total Treasury. KeyBank Proposal of Banking Services to Ciry ofAubum Page 75 O�Tbbl r®o'co w u W.00. omen,uom i i Exlstlng Batch ueting RoamenaAr J t�,om m.e,.om mac e..hearommcdm TIP Nowan o :m amonown m mm Deb wooara�,omms�mo, - - - oza , a. FM P �amaim.e. ccoaA A" oon VsVMo ta.aa 91IInIVIOMM-ACHNA,Et BEIBEITI.ixara xr- xi: xmo. moxmo, x CCD. rte¢ ANOM aEm $00 �aonoo 5010HUM•ACJ UWI 'd+ am VAM <Jm SIDUU M-ACHWIE1 ca asamoa yea¢ x rRo 1. Positive Pay 1. What is the recommended service delivery method(i.e.direct transmission,online,or other)? Key recommends that the City continue its current delivery method. Key provides one of the deepest and most technically advanced Positive Pay services in the industry. Positive Pay is widely used and is recognized in the industry as a valuable tool in the overall fraud detection and prevention arsenal.Which service you select is dependent on your technical capability in terms of ability to send an issue file to Key as well as the resources available within your company to manage the associated daily process. Positive Pay in conjunction with Full Reconciliation Services offers proactive robust management of your account. Positive Pay can also be used stand alone, i.e. without Full Reconciliation. a. What are the hardware/software requirements? Key Total Treasury is a web-based system,so there's no need to use special software. Authorized City users can access Key Total Treasury from any intemet-enabled PC. For optimal performance and security reasons,we advise clients that they should use only versions of browsers and operating systems that are currently supported by the manufacturer. It is very important to maintain and review your systems and keep up with recommended updates to protect your company and to make sure you are getting an optimal Key Total Treasury user experience.This does not mean that older versions of browsers and operating systems will not work with Key Total Treasury; it means that they may not work as well, or as efficiently,or certain functions may not operate as intended. 2. What controls are in place to protect against lost files and duplications of transmissions? We have back-up and index strategies in place within Key Total Treasury to prevent file loss, duplicate transmissions,and acceptance of duplicate returns. In the event that we receive notification of a duplicate transmission,we have compensating controls in place to back out the file. In addition,the Daily Audit Listing Report allows the City to confirm the contents of the files Key received from the City the prior day. KeyBank Proposal of Banking Services to City of Auburn Page 76 3. Does the bank provide automatic file receipt acknowledgements?If so,how? Yes.An electronic confirmation (on-screen message)Is provided when files are transmitted via Key Total Treasury's File Transfer module.An email notification if provided for files transmitted via one of our secure Direct Transmission options(i.e. FTP,sFTP,AS2). Please Note. The file confirmation on Key Total Treasury is a confirmation of Connectivity. Actual file data cannot be valldated until the file updates into the reconciliation software during Key'sr nightly batch processing. Any client that is sending a transmission file needs to view the Daily Audit Listing Report on Key Total Treasury's Account Management module to validate the accuracy of their file and that the Issues have been loaded. This PDF is available at 8:00 a.m. the following day. 4. Describe the role of any third-party processor used by the bank to provide this service? Key does not outsource any of the proposed Positive Pay services. 5: What Is the bank's deadline for transmitting fllesidata? The City should submit your issued check file prior to your distribution of checks. Our suggested best practice for clients is to have the file to us by 8:00 P.M. PT on the day prior to the physical distribution of checks.This includes manually issued checks. 6. What Is the process for notifying the bank of a single check or small check run outside of the regular batch file? We offer-the option to type Adds and Cancel entries on our Key Total Treasury Internet site. These Adds and Cancel entries update our Teller Positive Pay/Payee system every'/hour. 7. How does the City notify the bank of voided and stop payment checks? The City can notify Key of voided and stop payments online via Key Total Treasury. Voids and cancels may also be sent on the check issue files. Stop payments may be placed online through Key Total Treasury's Account Management. Module, providing the advantage of real-time access or can be placed manually through the Commercial and Business Banking Center. The stop payment system is available 5:00 a.m.—3:00 p.m. PT. For same-clay action, our stop payment deadline Is 3:00 p.m. PT. Stop payments submitted through Key Total Treasury prior to 3:00 p.m. PT will be updated in real-time. Once the stop is approved then submitted, you will receive a Stop Payment Confirmation. If any information is incorrect, remove the stop payment entry from the stop payment listing screen. Key Total Treasury will provide a stop payment history log to help you manage stop payment orders by their expiration date. 8. Does your bank have payee verification? Yes. Payee Name.Verification is available for Same Day and Next Day Positive Pay. 9. Is the positive pay service fully Implemented at all bank branches? Yes: For bank-matched services(Same Day and Next Day Positive Pay)teller verification is automatically turned on. KeyBank Proposal of Banking Services to City of Aubum Page.77 I 10. How does the bank handle exception("paid not issued")items? Payments that match the original check issue information pay as scheduled.For payments that do not match the check issue information, known as"exception"or"suspect"items, Key operations perform a secondary visual inspection of each payment.This process, called scrubbing, is In place to ensure the identified suspect items are truly suspicious in nature, ensuring the City is not impacted by false-positive activity associated to inaccurate reads or MICR encoding errors. Items that are truly determined to be"exceptions"or"suspects"are presented to the City for a payment approval or a stop/return payment request through Key Total Treasury.The City can elect to pay the suspicious item or return the payment. Any checks issued by the City that are improperly converted to an ACH debit by the bank of first deposit will also be rejected on Key Total Treasury's daily positive pay mismatch report,allowing the City to either pay the debit or return it. Approved MIS are added to the City's issue file upon receipt of the check Issue information. The City can type Adds and Cancels on our Key Total Treasury site to support any PNI checks. Key Total Treasury Adds and Cancels entries update our ARP System real-time and our Teller Positive PaylPayee service every 30 minutes. a. Does the bank offer a daily listing of exception Items? The daily Positive Pay Report will list all potentially fraudulent items that do not match the check issue file. Information will include check image, description, issued date, check number,sequence number, present amount,and payee data. Detailed data will include: • Check Not On Issue File • Conflicting Dollar Amount + Duplicate Presentment • Void/Cancel On File • E-check ACH Debit • Optional: Stale Dated Item; Exceeds Dollar Limit;and Payee Name Conflict The City will review suspect items and decide if they.appear to be fraudulent If you issue checks from a Key CDA, you will also be able to view electronic images of checks to inspect signatures, check stock, and payee names. Depending on the level of service you choose,the City can either stop fraudulent payments before they post to your account or return them for credit if they've already posted. b. Are there defaults available for each account to either automatically return or pay on exception items? Key can accommodate setting either an automatic"pay all"or"return all"default on each separate account. The default disposition decision is made by the City.The City has until 2:00 p.m. PT to change the automatic default on a rejecting item.The default decision you chose at implementation will be applied to any exception items not decisioned by the deadline. In addition, the City can apply a high-dollar threshold to the Return-All`Exception'option. In 2013, Key introduced KTT Mobile, an alternative on-the-go option for making decisions on your exception items. You can decision multiple items from the list,or view individual items KeyBank Proposal of Banking Services to City of Auburn Page 78 and check images. Same Day, Next Day, and Secondary Approvals are available based on your existing Key Total Treasury entitlements. Positive Pay DecfsfoNng A=lts yma Pm"Pay aplq lm U aamleb N a abpb ast Dedslpl aaatlple bm anm ale ml arldwaldbl°M apm al4ld"Imapn.8ame Day.118901y,and asmndpy Appm a ale d enualaa paled an"IV ennamams. wo- a�aa.�/ aura�fu� °� ma � ashaa�ew.ar YMn end a�.daAVr Same Day arro lyart Dap PW arva Pay aHm IaGa Cb•N Cma. c. What Is the timellne for reporting exceptions to the city? Our deadline for notifying you is 10:30 a.m. local time(LT)for Next Day Positive Pay. Local time is defined by where the account is located within Key. d. How are exceptions reported to the city?Will an image be available? Positive Pay same day exception reporting for a CDA account is available for decisioning via Key Total Treasury and KTT mobile at noon Local Time. Each check exception presented via Positive Pay includes an icon to click to see the image and a check box to stop a same day item or to return a next day item. Ortr Key Total Tl+easury® >rraa®em UMOMM oleru.Japan now.I"Cdclaaw. MW Dry POOR Pay awu- Alambhprb.tDpsAp ps 16C 1 aem n.abw rw M b OtlYT TodrADMUP342MK ;—mnc=tr. mly+ra� N.11.a.m.m b W tl dM Ibs m uY e4 b M.n ed Ad 71ot. 111,111113 Chit aseploe *no PW a"$ %MAW munum amp*" 1laarhlaa r J IwlWmnw4 mp1011111 0141M 1101u n,D1.a) x2ma yryllclllmdyrm.um T"dM%JetWMYM rb®lea+atldt DWI 110)e p,Attt f1.11I.D An61mm90S lamLgme r N aw ane n010W no= 100$1 SIZIN U SQ= r !1 Mal n01®pc Mm= 11019 Stu= So= >J pubs OpQ1ma01 I IMM Ilium plum 9aaeeserpl IaQI� o®� 000111 MUM swun lllaaatlm.mltll RWM aPl®dI�OrOiAaC') e. What is the timeline for the city to act on any exceptions? KeyBank Proposal of Banking Services to City of Auburn Page 79 Clients utilizing Same Day Positive Pay in conjunction with a CDA account need to have their exception items decisioned by 3:00 p.m. PT.The default decision you chose at Implementation will be applied to any exception items not decisioned by 3:00 p.m. Next Day Positive Pay decisions need to be made by 2:00 p.m. Local Time. f. What are the hours of operation of this service unit? Support for Key Total Treasury is available from 5:00 a.m. PT until 5:00 p.m. PT. In addition, Key has a 24-hour technical support hotline,which can be reached by calling 800-457-8257. J. Merchant Card Services: 1. Provide a funds availability schedule by card type.Is it negotiable? Next Day Funding: Keyl3ank, through its processor Elavon is generally able to deposit Visa, MasterCard and Discover funds the next business day provided that the requestor maintains its designated bank accounts with Member. Otherwise, the timing of such deposits is outside of KeyBank, through its processor Elavon's control, but generally occurs within 2 to 3 business days after processing. 2. What Is the settlement deadline? The deadline is 10:00 p.m. ET(7:00 p.m. PT)for next-day funding. 3. What dally and/or monthly reconciliation reports are available? Our merchant billing statements are designed to facilitate ease in the reconciliation of transactions and to provide management reporting information. We offer a variety of statement types, each containing varying levels of detail. • MerohantConnect Online Reporting Tool MerchantConnect supports delivery of authorization, settlement, chargeback, interchange qualification, adjustment(reject and additional reporting via online tool for viewing and/or exporting. Premium level allows you to view a year's worth of reporting information on multiple MIDs and"drill down"into your data to view batches of transactions grouped by card type or batch reference number. Hierarchical reporting allows you to aggregate data from multiple locations. • Automated Customer Service(ACS)—SFTP file ACS supports delivery of authorization,settlement, chargeback, adjustment/reject and additional reporting via raw data files. For large customers with multiple distribution channels or complex reporting hierarchies that require specialized reporting capabilities, KeyBank, through its processor Elavon's ACS raw data reports provide detail which Is easily importable to external applications for additional data management and reporting. • Billing Statements Images of statements are available within reporting solutions and/or via hard copy,at merchant and/or corporate(chain)levels. 4. Do you offer recurring billing processing? Yes. Recurring billing processing options are available through Key. KeyBank Proposal of Banking Services to City of Auburn Page 80 K. Payment of Fees.Respondents will need to provide information on the following: Key's standard method for payment of fees is to direct debit the demand deposit account of your choice on a monthly basis for the previous month's charges.We will also invoice your company If requested. We do not at this time offer payment of fees through ACH. 1. The effective rate and formula used to calculate the service charge credit for collected fund balances; Key's ECR(earnings credit rate)is administratively managed, based on a review of interest rates for various short-term instruments including U.S. Treasury Bills, Fed Funds, LIBOR, and other short-term investments. Historical and forward rate trends and the competitive environment are considered when establishing the rate. The ECR is subject to change on a monthly basis and is tiered based on average monthly collected balances with more favorable rates associated with significant balance levels. The Earnings Credit Allowance(ECA)calculation is as follows: • Earnings Credit Rate divided by 100(to create decimal) • Equals the Earnings Credit Allowance truncated at 2 decimals • Divided by days In year(365)and truncated at 5 decimals • Multiplied by the Balance Available to Support Services • Multiplied by days in month (31) 2. The proposed method for setting rates on a compensating certificate of deposit; Key does not offer a compensating balance certificate of deposit. 3. A time frame proposed to pay any additional fees not offset by service charge credit; Key offers multiple options for analysis cycle dates: Monthly, Quarterly, Semi-annual and Annual. Key will work with the City to choose a cycle date that meets your needs. 4.. Whether a service charge credit/debit can be carried forward to the next period; Key does not expressly carry forward excess balances from one period to the next. In certain cases,non-monthly billing periods may be extended. For non-monthly billing periods, the excess earnings credit calculated is aggregated for the total cycle and netted against the fees incurred during that.cycle. S. The formula for any fees In the event of an overdraft; Overdraft fees are waived to analysis or charged directly to the overdrawn account.The bank does charge for the use of uncollected funds. The uncollected funds rate is based on the bank's prime rate. Fees for overdrafts and uncollected funds charges cannot be covered by compensating balances. The uncollected funds charge calculation is as follows: Uncollected Funds Charge``_ (Uncollected Funds Rate divided by 100)x[(Number of Negative Days)(Average Dally Negative Collected Balance)/ (Number of days in the year)] f KeyBank Proposal of Banking Services to CRy of Auburn Page 81 *This number is not rounded. Uncollected funds charge is truncated after three decimal places. 6. Describe what constitutes a daylight and overnight overdraft situation. Key does not currently charge for daylight overdrafts. In the event the City Is trying to release a wire payment which will cause a daylight overdraft; Key's wire room will attempt to contact Key's credit team to obtain approval before releasing the wire,or the City may be contacted to verify that adequate funds are anticipated. A ledger(overnight)overdraft will occur when there are not adequate funds to cover checks clearing during overnight processing.Your Relationship Manager, Matt Zehnder,will monitor overdrafts on a daily basis and contact the City to verify that adequate funds are anticipated. Key may directly charge the overdrawn account with an overdraft fee. L. Errors and Adjustments 1. Describe your adjustment process for resolving deposit discrepancies. If you provide duplicate deposit tickets,they will be validated and returned to the identified location through the U.S. Postal Service.Any adjustment notification advice and supplemental documentation will be sent with the duplicate deposit tickets. Key will also provide a courtesy telephone call for adjustments over a defined threshold amount. 2. At what dollar amount do you write off discrepancies? We write off discrepancies of$10 or less in our vaults and our branch night drop deposits. 3. Do you adjust the deposit amount or process an adjusting debit or credit? Yes.We process an adjusting debit or credit for all discrepancies. 4. Describe the process to notify the City of deposit adjustments. For cash vault deposits, envelope processing is available when multiple deposits are placed In a bag.The vault monitors each deposit.Any deposit discrepancies are communicated to the City, including specific deposits and corresponding envelopes with an error. Envelope processing Incurs a separate fee. Key will provide a memo to the client detailing the deposit adjustment, Including the deposit bag number and denomination breakdown. M. Describe how Inquires requiring research and adjustments are handled by the Institution. Are there established turn-around times for research and adjustment Items?If yes, specify. In addition to your Key Team,we encourage,you to use our first-class Commercial Business Banking Center for specific questions regarding reconciliation reporting issues.The Commercial Business Banking Center acts as an extension of your Key Team and handles routine questions and issues;(how-to questions, balance inquiries,adjustments, research requests, etc.)that may arise outside of normal business hours.The Commercial Business Banking Center can be reached toll free at 800-821-2829, weekdays 5:00 a.m.—6:00 p.m. PT. Key's goal is-to provide resolutions as quickly and accurately as possible. With this in mind,we have established service level agreements(SLAB),which define the turnaround time for all f research and adjustment items(based on the nature of the request). However, there may be occasions where additional time is needed for research.When necessary, the request can be KeyBank Proposal of Banking Services to City of Auburn Page 82 I flagged as a"rush"to reduce turnaround time.All time sensitive issues are given top priority until resolution is complete. Key has consistently received high marks for responding to clients'requests, providing prompt follow-up, responding quickly to problems or inquiries,and being accessible when needed, consistently meeting or exceeding most established response times more than 95%of the time. N. Describe NSF or Returned Items processing procedures,fees or other related services available.The City will require redepositing`NSF'or uncollected funds'returned items so that they may be presented a second time prior to being charged back. Key's ACH system can automatically retry qualifying returns if directed by the City. These returns will only be debited to your accounts in the event they are returned a second time. The City may receive a report of returns being presented a second time on a daily basis if desired. 0. Security/Protection Measures:What security features are in place to minimize the risk of unauthorized transactions? Key leverages preventative and detective controls, including an increasing emphasis on risk analytics,while ensuring our security and fraud capabilities are aligned to optimize an end to end approach to managing fraud risk and creating business value for our clients. The City can protect its assets with tools to monitor, detect and prevent fraud—EPA, UPIC,dual controls, online security,and audit reporting.Key places a very high priority on fraud prevention. All of our security procedures are designed to prevent fraud,whether by our clients'employees, Key employees or third party interlopers. Encryption When the City's information is traveling over the internet to Key, it will be encrypted with the highest level of encryption technology available. Encryption is required for all transfer protocols with Key,and we will only set up authenticated and encrypted FTP connections. When using our secure direct transmission and Key Total Treasury File Transfer module,the City's information is protected with multi-factor authentication, Secured Socket Layering and 128- bit encryption. We prefer that trading partners connect to our FTP server to place/retrieve files. This gives us greater control over the connection. Key supports the following encrypted file transfer: • FTP with PGP(Pretty Good Privacy) • FTP with TLS (Transport Layer Security • sFTP • AS2/AS3 Key's recent Key Total Treasury multi-factor authentication security upgrade provides clients the option of using"Out-of-Band"Voice Phone Call, Mobile Text Message(SMS), or Tokens (Hardware or Mobile Software App)to receive a One-Time Authorization Code when accessing ACH and Self Service modules. The one-time password will enhance security via a password that is sent to the end user each time they log in, and may only be used once,to decrease the risk associated with keystroke monitoring malware and time delay associated with token. In addition, Key Total Treasury's secure environment will provide the City with several layers of protection:some of these are visible and other types of monitoring occur on the backend at the bank. These layers include but are not limited to: login,one-time passwords, access times, authorization limits, security questions, secondary authorizations,and integrated fraud management. KeyBank Proposal of Banking Services to City of Auburn Page 83 Other security features include mandatory emails sent to users when user credentials have been modified,such as password resets, security question updates, and email address changes. Setting Authorities and User Access The City will be able set authorities for Key Total Treasury at company and/or user levels and control the services and individual accounts that users can view through the Self Service module. Your administrator can: reset user passwords; update user names,telephone numbers,and email addresses; edit user access times;change the services users can access;and remove users from Key Total Treasury. In addition, should the City decide to use our KTT Mobile service, it will provide you with the ability to: • Approve added users; • Execute password resets;and • Access account management and ACH services. Product Security Features We strongly recommend that the City to use our dual authorization capabilities for both ACH and wire transactions initiated via our web portal.Your administrator can make updates or changes to user assignments through Self Service. Separation of duties is one of the best fraud prevention techniques available. If the City's direct deposit ACH transactions are to be sent via direct transmission. Key recommends the City initiate a control total verification process to further safeguard against a potential fraudulent event ACH Security Our ACH Direct service, accessible online via Key Total Treasury,delivers self-service ACH management and fraud prevention payment and reporting. This includes our Electronic Payment Authorization service,which provides the City with the Debit block and filter options it needs. Electronic Payment Authorization With EPA service, the City can either authorize specific ACH debits or block all ACH debits. Key compares the City's originating ACH ID number to the authorizations you have on file to determine whether or not to accept incoming ACH debits to your account(s). Debit entries matching the authorizations on file are paid;all others are returned.The City can receive a report of unmatched debits to verify that they should be returned via email. You can choose the level of protection that fits the City's requirements, including: • Blocking and returning all ACH debits • Paying only pre-approved ACH debits from vendors and other billets and automatically returning all other items • Paying only pre-approved ACH debits from vendors and other billers and receiving a report of exception items that you can pay or return as desired • Allowing ACH eChecks to be blocked,pre-approved for payment, or reported as exception items Universal Payment Identification Code, For an additional layer to your EPA protection,the City can accept ACH credits securely with UPICs. UPICs are secure bank account identifiers that allow you to receive electronic credit payments without divulging the City's sensitive banking information. UPICs safely mask your account information, allowing you to advertise it to promote your ability to accept electronic payments. KeyBank Proposal of Banking Services to City of Auburn Page 84 Wire Security Wire initiation is controlled by security questions, one-time passwords, personal identification numbers(PINS)and repetitive line numbers for repetitive wires. Approval and release are controlled through secondary authorization from the use of passwords and an approval function. The following approval options are available to the City: • Ability to indicate number of approvers for wires up to a maximum of two • Ability to indicate threshold at which dual authorization is required • Ability to assign approval limits to specific users • Ability to create approval routing hierarchy based on dollar amounts Positive Pay Key is one of the elite Positive Pay providers in the U.S. offering Same Day, Next Day, Payee, Reverse, and Teller Payee Positive Pay. Payee names are compared to your issue.files, and exceptions are reported to you in our Same Day and Next Day Positive Pay reports. Please note that with this service the City must use Key's routing/transit number and account numbers. Payee Positive Pav Key is one of the only financial institutions to offer Payee Positive Pay review through the internet, through the teller line, and on your ARP reports. Key was also the first bank to offer comprehensive a-check(checks converted to electronic/ACH transactions)reporting and the only bank to include Payee names on the report. As part of Key's Positive Pay services,the City will benefit from fraud detection at our Key branch teller line with Teller Positive Pay and Teller Payee, reducing check fraud at all points of check presentment. Having both Same Day and Next Day Positive Pay service levels allows two days to review "suspect" items for pay and return decisions. (Note: Same Day positive pay requires a controlled disbursement account The State Treasurer's approval for a controlled disbursement point is required). • Payee Positive Pay provides an additional layer of fraud detection by identifying Payee Name alterations,allowing you to optimize fraud control. • You are protected from loss of funds with Same Day dishonored checks returned prior to posting. • Same Day Positive Pay allows you to stop the payment of exception checks prior to account posting, reducing fraud from entering your account Items paid can still be returned via Next Day. • Internet delivery of Positive Pay reports and images of exception checks allows quick access from any of your office locations. Teller Line Positive Pay Key also offers fraud protection at the branch level with our Teller Positive Pay. Every Key branch is able to stop items presented for payment with Same Day, Next Day and Payee Positive Pay Services. Tellers can view issue information when checks are presented for payment and then stop payment if they appear to be fraudulent. Some banks do not screen checks presented at their teller lines for Positive Pay; if they do, payee names are not verified. This presents a potential "hole"in their Positive Pay protection, which could result in losses to the City. With our IntraDay Teller Positive Pay updates, if a payee wishes to cash a check at one of our Key branches the same business day the City physically distributes the check; Key must first receive the corresponding check issue data. Specifically, if you submit your check issuance file via Key Total Treasury's File Transfer module or add a check issue record via the Account KeyBank Proposal of Banking Services to City of Auburn Page 85 Management module, the check issue data must be received by Key 15 minutes before the payee would attempt to cash the check at a Key branch. If the City submits a check issuance file via transmission using File Transfer Protocol(FTP),the check issue data must be received by Key 15 minutes before the payee would attempt to cash the check at a Key branch. Next Day Positive Pay Next Day Positive Pay allows the City to review and make payment decisions about suspicious transactions one day after they post to your account. You can also choose either to pay items or return them for credit.The City has an assigned account reconciliation specialist who works with incoming warrants.This person verifies encoding errors and duplicate presentments to ensure a clean account reconcilement report is provided to the City. The daily Positive Pay Report lists all potentially fraudulent items that do not match the check- issue file. Information includes check image,description, issued date, check number, sequence number, presentment amount, and payee data. Detailed data includes: • Check Not On Issue File • Conflicting Dollar Amount • Duplicate Presentment • Void/Cancel On File • E-check ACH Debit • Optional: Stale Dated Item; Exceeds Dollar Limit; and Payee Name Conflict 0-w Key Total Treasury® Tea%8Resoar= u1e10clem C AWW Laawr 511•rtcNa sL�etlanaar$wew same Day Positive Pay lama To Decision A=—!! 2 3 5767 7 67 .O IL:rc 14anvu w aoenl'tgin•Ilene m aarmv Presentment Date:Sep 30,2W Servklek L30PmFST =pg t are M Ur tiv WOk6Y u wlm rorL?Wmf V.P.6 p�•¢ppO lM did"MC" r1� Mild tY4Cke aUWArM PrWMAI li kampa e(I �pa� r RJ Ecek net an save So G94ou2G%1t 11223141 5&2740 $6234.59 Target a le Petit of Pmelmse(POP) To"tee PW offtmba e(PON r ;!q wyes name lanma 9sasaw 11t733A6 $4791.12 x791.12 JakeSh"M WS ,elm Skeeakn r as eeknelcelaament 094Yr w t1mml S1L000.00 51=00 r cJ U ftdh9 W"A 09497!070( 1122]351 $11,000.00 S=Uo r 'y cecm=Presanm m ovum= 11225362 SIM% S11a.= r of E•aw stab 4aua aW8PmX1f 11223354 51xt939.22 $13,569.22 11M alaocco w ehetlr(AK) NSR Sleekt:enrerte0 a1etl4ARq r .b 6j blue am*cam t9-79207aC 112MM 510.ct10.00 sla,Eto.Ca r 'j Ekrse6s aL12=04 anl0knt OWMAXt 11223770 satco 3231.00 r :cy Payee name melua a9r"v 11223:79 SM-69 5999.59 0Ub90`SWkROS Mac SakROS ne>D ce do J Client Match(Reverse)Positive Pav Client Match (some time referred to as Reverse)Positive Pay is utilized on your smaller accounts, such as your petty cash account This service is available to help the City fight check fraud by using Key Total Treasury to review essential information about each payment.Also known as Client Match Positive Pay,this simple, yet highly effective solution is easy to use. KeyBank Proposal of Banking Services to City of Auburn Page 86 Each check presented against the City's Key account gets listed as a paid item in the daily Payment Protection Report.You'll review the list of paid items and check images to verify dollar amounts, payee names and authorized signors. *-w Key Total Tnmmry® Tcc58Bere rces War Qetlms U t dit Logue Wild 71womi sera am en Vim + Payment Protection Report Repot Options Showing eemcm A=CUU tayeete.1L'V-W so gw Today's DxW S•p Se,2aXX y2 mme z-ccm m l rs 1 era . n Uw ve euaeew rowwaxu u.n7 or yr oape m nan ero ma 9trc Rouffn air PnMented amens Check Anil r r n�4 OWNG AK IMUM 56JU so r Mac= 11223146 x091.12 r nb NQU 11221351 SIUM.ao r ihi ow ou 1122"53 313AUD r ;y go-22.2m 11273 Silo." r �j oaa9awtx 1MMat 513=22 r w!j otv7eaolor 112713N 510.90.02 r A cmma= lizw o 301.00 now a= Check-number and check-amount filter options will make it easy to find individual items. If a transaction appears to be fraudulent, you'll simply select the return option to have the check amount credited to the City's account. P. Service Enhancements: Describe any enhancements,technological or otherwise, that we should consider to improve operational or cash management efficiencies. Key recommends the following services to the City,which have been discussed in detail,earlier in this RFP response: • Consolidated Payables The City will be able to submit a single payment file containing any combination of check, ACH,wire, and/or card payments directly from your treasury systems, ERP, or accounting package, or by easily uploading a file to the Consolidated Payables Online Portal. • Integrated Receivables While accepting multiple types of payments is vital to performing the City's business, relying on multiple methods of receiving data can significantly impact the time it takes to post your receivables. To improve the City's overall accounts receivables processing, Key offers an Integrated Receivables solution that will provide a single file that will let you easily post multiple payment types at once. The file will consist of all lockbox,ACH and wire payments,which you can load directly into your accounts receivable system. • KTT Mobile This mobile platform is optimized for the mobile web, allowing the City to access the Key Total Treasury site from any mobile phone or tablet that is equipped with a mobile browser and intemet connection. KeyBank Proposal of Banking Services to City of Auburn Page 87 1 • Approve pending wire transfers and ACH transactions • Review both account summary and detail information, search transactions, and execute book transfers • Make decisions on suspect positive pay items • Initiate domestic and international wire templates • Approve and edit user capabilities and reset user passwords. 0. Discuss your use of the intemet in providing services to your municipal/business customers. Information reporting has been an integral part of Key's cash management services since the early 1980s. Key Total Treasury, available seven days a week and 24 hours a day, has been offered since 1998.Approximately 6,750 corporate clients Use our corporate Information reporting services. Key Total Treasury is a module-based system that allows clients to pick and choose which services they would like to utilize. Over 75%of our clients use Information Reporting,including Previous Day and Intraday reports;30%send ACH and wire payments; 15% use our Receivables module for their lockbox reporting;and 35%are using our Self Service administrative tool. The most critical element that differentiates Key's service from other providers is the high priority we place on providing superior client service and quality processing. Key maximizes the value of information reporting services to you through the following: Key was one of the first banks to offer a comprehensive, Internet-based information reporting system.We have continued to develop and enhance Key Total Treasury to meet our clients' needs. • We have a dedicated Client Services Group for our KTT Internet product. • We are committed to very high quality client service for all treasury management services. • Key has a Product Development team dedicated to the continuous enhancement of treasury management products and services_ Product Development is continually reviewing our offerings as well as those of our competitors in order to provide the best products and services for our clients. Key Total Treasurys Internet Information Reporting Module provides the following capabilities: • Previous Day Reporting • Intraday Reporting(lockbox,ACH,wire transfer) • BAI2 Download • Global Balance Reporting • ACH Activity Report • EDI Remittance Reporting • Lockbox Detail Reporting • DDA Statements and Account Analysis Statements • Long and Short Term Images of Paid Checks • Key Capture Deposit Check Images Key Total Treasury also has eight other modules available including: • ACH Initiation and Reporting • Electronic Wire Transfer Initiation and Reporting • Account Management(check inquiry, stop payments, check photocopy requests, account to account transfer,pending stop list,check images, next day positive) Foreign Drafts Key3ank Proposal of Banking Services to City of Auburn Page 88 • File Transfer • Self Service • Loan Management • ACH Direct R. Provide Information on how your Institution plans to keep your product line competldve. Describe what approach the bank.is taking In the development of new services and what new services and/or features the bank plans to offer and within what time frame. Our clients'success is the foundation of Key's strategy.Without it,we cannot continue to broaden relationships while developing innovative solutions that allow our clients to run their businesses better every day. Key has an aggressive strategy for its electronic banking and Information reporting services in both the short-and long-term.We have an ongoing,flexible process for adopting our product development initiatives for electronic banking and information reporting services to meet market needs. Key's approach is to Internally design and install core systems and products where feasible and selectively use third party vendors where strategically important.We have an ongoing, flexible process for adopting our product development Initiatives to meet market needs. Formal product plans are updated annually and reviewed with senior management and all internal partners. Execution to business plans is reviewed monthly, where senior management monitors progress and provides resources to remove roadblocks. It is also during these monthly reviews that business cases for new product Ideas are Introduced and prioritized for development: For new product enhancement decisions, particular emphasis is placed on client a_nd sales input. ( This process of regularly reviewing our business plans provides flexibility in re-prioritizing development to meet market needs as they arlse. Execution to this strategy requires a coordinated team approach among internal bank partners, including Sales, Marketing, Product Development,Operations,and IT.A strong project management culture and process holds the business owner accountable for the overall direction of development and all internal/external partners accountable for results. Our vision for the next two to five years is to invest in the development of client solutions that will deliver completely electronic forms of payment and settlement, in recognition of the profound and rapid change in traditional payment methods. Key is in the process of refreshing Its Internet ACH platform in order to ensure that we maintain our industry acclaimed user experience.As part of that we will be adding the ability to originate international ACH transactions(IATs). Key is continually evaluating client demand for additional functionality: Our current roadmap includes: • Upgrading current clients with Key Total Treasury multi-factor authentication security to provide clients the option of using"Out-of-Band"Voice Phone Call, Mobile Text Message (SMS),or Tokens(Hardware or Mobile Software App)to receive the One-Time Authorization Code when accessing ACH,Wire, Foreign Drafts or Self Service modules. (20142015) • Key is in the process of-refreshing Its Internet ACH platform in order to ensure that we maintain our industry acclaimed user experience.As part of that we will be adding the ability to originate International ACH transactions(IATs). KeyBank Proposal of Banking Services to City of Aubum Page 89 i Clients who use SWIFT FIN MT messaging for either the"bank to bank"or SWIFT for Corporates options will be able to receive a SWIFT FIN MT 942 message type.The MT 942 message type is an"interim transaction report."(2014) Key will replace the current Key Total Treasury File Transfer module with our File Management web portal.This will allow Key to provide the new functionality such validations for inbound ARP,ACH and Wire files; email notifications for inbound/outbound files; and data translation for clients who cannot send or receive product files in our standard formats. (2015) • Upgrade the existing legacy Key Total Treasury Wire module with a new best-in-class module that has a new user interface and new feature-rich.functions. (2015) We will be upgrading ACH Direct in early April 2015. Clients will get a new,more modem interface and it will also allow us to roil out a flexible dual authorization capability for EPA (Electronic Payment Authorization),once we have finished the initial implementation. The Key Total Treasury Message Center&Notification Platform will give clients the ability to create and manage notifications within KTT. Existing messages will be enhanced to include additional information and new messages will be added as well. (3Q&4Q 2015) • Our Key Capture vendor will be providing three new enhancements to our remote deposit capture service offering, Key Capture.(2015) S. Disaster Recovery: 1. Describe your institution's formal disaster recovery plan. Key maintains a comprehensive Corporate Continuity&Recovery Program to ensure that the bank has the capability to recover Information assets and business processes lost or Interrupted as a result of an unexpected business disruption. For detailed information on our emergency preparedness and disaster recovery, please refer to the Appendix to review our KeyCorp Statement of Recoverability and KeyCorp Statement of Security Controls, 2. How quickly will back-up facilities be activated? Key's hot site can be brought up within four hours in the event of an emergency. Our hot site is fully redundant with our production sites, and Key can occupy the site for at least 30 days. 3. Describe your institution's operating capabilities to assist the City in the event of a disaster or declared emergency. Key will be happy to discuss any and all contingency plans with you. In the event that the City cannot operate from its own facility,your Key Team will strive to help you quickly resume operations by providing support and access to the full resources and capabilities of a national bank T. Conversion Plan: Describe the conversion plan you would coordinate to ensure a smooth transition from the current provider.Please provide a sample of the conversion schedule. Your Key Team will ensure that the conversion and implementation of new banking services is organized and efficient in both delivery and communication. In order to ensure the conversion is completely successful,we propose the following project management and training strategy: Keysank Proposal of Banking Services to City of Auburn Page 90 • Conduct initial planning session to establish timelines and plan. • Appoint project management team. • Verify products and services to be implemented. • Identify staff responsibilities and schedule training. • Conduct weekly status meetings. • Maintain project plan to track completion of tasks and timelines. Please refer to the attached Sample Implementation Plan,which we will customize to your unique needs upon contract award. U. List the address and hours of operation at your nearest branch office and also the hours of operation for non-branch services. The City will continue to use its local ., branch for depository services. s,h� �s DVAUMMI. P,* 1 East Main a } anAMF a Auburn,WA 98001 ma S,NW 9,a StNEI 253-833-8622 ba S7 NW c ago a m • Safe Deposit Boxes,Night Deposit,ATM a nisit�Fa z • 9:00 a.m.-5:00 p.m.M-TH;9:00 a.m— ; p o W E Wn S 6:00 p.m.FRI n i • Tai Nguyen,Branch Manager w srsw 3 c „°', �, Sa.in.us�csi•77�•Zna St SF Commercial Business Banking Center. s,sw 1-800-821-282.7�l 5:00 a.m.—6:00 p.m. PT ° V. Discuss any special conditions,other fees,other services,or deviations from the requested scope. As it pertains to the City's lockbox processing, our lockbox Manager has suggested changes to your processing rules. By doing so we would be reducing the data entry volume associated with these valid OCR coupons and any image volume associated with the check stub for all one to one payments. Following are two suggestions to drastically reduce keystrokes;thus the City will see significant reduction of lockbox monthly fees. • Any payment received with a single payment coupon and a check with stub,we will discard the stub and process the one to one payment in the main box. • Any payment received with multiple payment coupons and a check with stub,we will continue to image the check stub with the payment in the shadow box. W. Sample Reports: Please provide sample reports for the following services: 1. Bank Statements; Please refer to the Required Reports Section of the Appendix to review the Sample Corporate Bank Statement. 2. Monthly bank account analysis; Please refer to the Required Reports Section of the Appendix to review the Sample Account Analysis Statement. KeyBank Proposal of Banking Services to City of Auburn Page 91 i 3. Daily on-line balance information print-out; Please refer to the Required Reports Section of the Appendix to review the Sample Intraday Report. 4. ACH report options; Key Total Treasury provides an ACH Customer Activity Report, with summary and detail of batches on the system, as well as reports on batches sent Our reports are available for retrieval as human-readable formatted reports and/or as downloads. You can download In a comma separated variable(CSV)format to load into spreadsheets and/or a BAI2 format. Please refer to the Required Reports Section of the Appendix to review the following ACH Reports: • ACH CustomerActivity Report(CAR) • ACH Batches Sent Report S. Returned item(s)notification; Key reports return activity the Customer Activity Report(CAR)that is viewed on Key Total Treasury or received via transmission.The City will be able to view return items,advices and images(front and back)online via the Image Research Center of Key Total Treasury's Account Management module. abs are used to provide access to three distinct functions: defining search criteria, viewing results data and viewing images. You will simply select the desired imagetreport type. Please refer to the Required Reports Section of the Appendix to review a Sample Return Item Report. 6. Monthly merchant services statement; Please refer to the Required Reports Section of the Appendix to review the Key Merchant Services: "How to Read Your Statement Guide" 7. Merchant charge-back report. Please refer to the Required Reports Section of the Appendix to review the MerchantConnect Service Level Comparison Guide. KeyBank Proposal of Banking Services to City of Auburn Page 92 i I Section IX. Statement of Financial Institution Qualifications IX. STATEMENT OF BANK QUALIFICATIONS Each financial institution submitting a proposal for items included in this document shall prepare and submit the following data along with their proposal: 1. Name of Financial Institution KeyBank N.A. 2. Business Address 1301 5n'Avenue,Seattle WA 98101 3. Business Phone 206-6894713 Fax No, 425-7O9-4547 4. E-mail address Michael—D—Thomas@KeyBank.com. 5. How many years have you been in business under the present name? Seattle Trust,1905; KeyBank,1985 6. General character of services y rovided b your institution: Banking and Financial Services p 7. City of Auburn Business License Number: 8. State of Washington Sales Tax Registration Number: 601814 791 9. Federal I.R.S. Identification Number: 34-0797057 10. 1 certify that the institution: • is capable of providing the services as outlined in this proposal, • will comply with the rules and regulations outlined by the Revised Code of Washington, Kent Municipal Code, and the Washington Public Deposit Protection Commission, and other applicable laws and regulations. City of Auburn Banking Services KeyBank NA. Institution Name Authorized Signature ERICA ANN SLATT NOTARY PUBLIC Swor before me,this day of, 2015 STATE Of WASHINGTON COMMISSION EXPIRES AUGUST 1, 20113 Notary Public in and for the State of Washington KeyBank Proposal of Banking Services to city of Auburn Page 93 i Section X. Non-Collusion Affidavit Certificate State of Washington ) )SS County of ) The undersigned, being duly sworn, deposes and say that the person, firm, association, co- partnership, or corporation herein named has not either directly or indirectly entered into any agreement, participated in any collusion, or otherwise taken any action in restraint of free competitive bidding in the preparation and submission of a proposal to the Owner for consideration in the award of a contract on the improvement described as follows: City of Auburn Banking Services KeyBank N.A. Institution Name Authorized Signature ERICA ANN SLATT Sworn before me,this day ofrjugA 2015 NOTARY PUBLIC STATE OF VVASHINGTON COMMISSION EXPIRES AUGUST 1. 2016 Notary Public in and for the State of Washington KeyBank Proposar of Banking Services to City of Auburn Page 94 i Attachment A - Bid Sheet Unit a Monthly Monthly Price Volume coat Explanation General Account Services: Account Maintenance 5.00 4 20.00 Paper Credits .15 220 33.00 Paper Checks/Debits Paid .06 513 30.78 Deposited Item(checks) •04 2,004 80.16 Deposited Items Returned 1.75 11 19.25 Re-deposited Return Item 1.00 12 12.00 Return Item Image 2.00 6 12.00 Online Banking Returned Item 10.00 1 Statement 10.00 Lockbox Services PO Box Rental Fee 1.00 1 1.00 Lockbox Items .19 4,429 841.51 Lockbox Scannable Items .19 4,667 886.73 Lockbox Unprocessable Items 0.00 B4 0.00 Lockbox Image Check Scan .05 8,927 446.35 Lockbox Image Document Scan .05 3,181 159.05 Lockbox Image Remit Scan .05 4,667 233.35 Lockbox Remit Per Keystroke .007 116,287 814.01 Lockbox Deposited Item Clearing .04 8,927 357.08 Lockbox Online Image Base Fee 0.00 1 0.00 Lockbox Data Transmission 1.00 21 21.00 Account Reconciliation Services: Positive Pay Maintenance 10.00 2 20.00 Positive Pay per item .06 506 30.36 ARP Weekly Transmission Input 25.00 1 25.00 Fee Charged per File ARP Manual Input(Add/Cancel Entry) 0.00 23 0.00 File Confirmation 10 KeyBank Proposal of Banking Services to City of Aubum Page 95 On Line Banking: On Line Banking Current Day Account 15.00 1 15.00 On Line Banking Current Day Detail 05 187 Trx 9.35 On Line Banking Prior Day Account 15.00 4 60.00 On Line Banking Prior Day Detail Trx .05 974 48.70 On Line Banking token Monthly Maint. 0.00 5 0.00 Key does not charge On Line Banking Stop Payments Account Management Monthly Fee Monthly Maint. 15.00 1 15.00 On Line Banking Stop Payments-Per stop 5.00 2 10.00 On Line Banking Book Transfer-per Transfer 0.00 1 0.00 Wine Transfers: - Wires Monthly Client Maint. 15.00 1 15.00 Incoming Domestic Wire 6.00 3 18.00 Domestic Repeat Wire 6.00 4 24.00 Image Services: Monthly Maintenance per account 0.00 2 0.00 Image Per Item(CD Item Capture) •02 513 10.26 Image CD-ROM Creation Fee 15.00 1 15.00 ACH Service: ACH Monthly Maintenance 25,00 1 25.00 ACH Process Run(Data Transmission_) 5.00 - 11 55.00 Plid ACH Originating Credit Transfer .06 1,137 68.22 _ ACH Originating Debit Transfer .06 975 56.50 Incoming ACH Credit Item .06 15 0.90 Incoming ACH Debit Item .06 163 9.78 ACH Item Min Per File(<250) 0.00 6 0.00 ACH Credit Addenda Info .03 20 0.60 ACH Return Per Item 1.50 5 7.50 ACH Retum/Notification of Change via 1.00 10 10.00 Email ACH Customer Activity Report(CAR) 5.00 1 5.00 KeyBank Proposal of Banking Services to City of Aubum Page 98 C _ Coln&Currency Services: Cash Deposited per$100 .00095 1,20 114:86 Charge per dollar Instead of per 100 Mailed Receipts NIA 34 e)d day Loomis synergy with deposit etails Cashier Checks 8.00- safekeeping(including reporting): Account Maintenance 1 See Safekeeping Fee Schedule Interest Received 1 See Safekeeping Fee Schedule S'up-Oles: - Overnight Overdraft Rate 3.25% $2 million Daylight Overdraft Rate N/A $2 million Short Term Financing Rate $2 million Endorsement Stamps 10 3 Party Coin Wrappers per 1000 as requested Deposit Slip Books(3 part carbonless) as requested TO Party Plastic Bank Bags per 100 as requested 3 Party Credit Cards: - Merchant Card Transaction/$Volume Cemete yfransactions 15 Cemetery$Volume 35,234 Finance Net Transactions 875 Includes Counters Finance,P& R,Sr.Center,Clerks$Building Finance Net$Volume 290,590 Includes Counters Finance,P& R,Sr.Center,Clerks&Bu_ilding Utility Payments'Transactions(est.) 60 Utility.Payments$Volume(est.) _ 18,000 Utility On-line Transactions(est.) _ 5,965 Utility On-line$Volume(est.) 1,053;998 Merchant Account Set-up-Fees Terminal Rental/purchase fees Merchant Acct.Support Package Fees Interchange Rates Your Bank Fee/Dlscount Rate KeyBank Proposal of Banking Sentioes to City of Aubum Page 97 Other Items Not Mentioned: t ZBA Concentration Account 10.00 ZBA Subsidiary Accounts 10.00 Canadian Deposited Items 1.50 Online Banking EDI Remittance 15.00 i KeyBank Proposal of Banking Services to City of Auburn Page 98 Safekeeping Fee Schedule KeyBank National Association Deposits to an account (other than a security purchased through Key or KBCM) ......................$20.00 per item Withdrawals from an account(other than a security redemption through Key or KBCM) .......................$20.00 per item Each Pledge and/or release of a security used as collateral .......................$10.00 per item Maintenance Charge— Based upon the number of receipts held ........................................$ 2.00 per item (monthly) Your Safekeeping account may be subject to the recovery of incidental out of pocket expenses such as postage, redemption and/or registration fees assessed by other processing institutions. While the situations that prompt these fees may occur infrequently, we want to inform you that the charges will be automatically deducted from your account or directly billed to you at the time of the transaction. Fees Subject to Change KeyBank Proposal of Banking Services to City of Auburn Page 99 i Key2Purchase Rebate Schedule Custom Rebate Table Spend BPS is - 0.00% Is 1,000,000 1.20% Is 2,000,000 1.30% Is 3,000,000 1.40% Is 4,000,000 F 1.45% Is 5,000,000 1 1.55% Is 6,000,000 F 1.60°k $ 7,000,000 F 1.60 Is 8,000000 1.60% Is 9,000,000 F 1.60% $ 10,000,000 1.63% KeyBank Proposal of Banking Services to City of Auburn Page 100 i Key Merchant Services Schedule SCHEDULE A-SCHEDULE OF FEES ■Yr.m■IYla.amr�..r ..Yq h��Y.n.■.mf.a.wwo�U..r.r7.rtor....r.e emtrrsn.r.r Wcmiftm wd I .ud.r...t.rrr M.Mf'IdgYSrdWA�.b tb.=W.eq�OY ti■1..TWILNlm..rmr�A..s,AaY.rrtc..gerse.an l.mermrrr.7At■.W■dtalea Fkaw rrrM4..YW.s�tfW*WMY.YeiSYIIRYynrev■WrY.e.Yr.Y.doMOe/7ds�pwatveq..�q�rgrt.o■srw biaAp�as�.r. 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KeyBank Proposal of Banking Services to City of Auburn Page 102 worww. &nod ft4 RA ®��m�.■.q�au+ �tit-atycrc�raa�.aq a■cra�7a�A ream r��•om. mu.d��m a,rroM■te®=Gft=. oe®1faL ia6�edid■]�ma s]irfSeee�r.�rpdb W WWAW s b.ad:■7TmdiL 3•�Ib emb!■erd�rd�■�■�dpr��Hr tlyew �■Pb'd�■'+�M bt:ceder`.evsa�+am■.�r.�dr.�fllvl�4�■d.ape.p,nr■�sd�m.®.+�..f�.�aao.r��{�r d'ge:s+7��f®�oYbd�13V.l c9tl•sa.■aa�f6■6S�dliiird'e�a 1b4hlt3m ibd�'rJa a0lQai"7�@,elq mwlaAod.dlQ��ySo■�o �.yP9•�Prs�YRv 2W.6-h- W=ddWd�=ftr 3otMEM6 6etMMKW7 �aWpp�•$eQL&+� i M.d.rAd—hdV—d rt.r Raw flea MICK Please refer to the Appendix to review the following Merchant Services information documents: • Convenience Service Fee Program • Durbin Provisions KeyBank Proposal of Banking Services to City of Auburn Page 103 i i Notes or Item Description: • Increased ECR to OAO%to further off set your banking service fees • Three months banking services retention credit Formulas: Daylight Overdraft Formula Key does not charge for daylight overdrafts. Overnight Overdraft Formula Overdraft fees are waived to analysis or charged directly to the overdrawn account. The bank does charge for the use of uncollected funds.The uncollected funds rate is based on the bank's prime rate. Fees for overdrafts and uncollected funds charges cannot be covered by compensating balances. The uncollected funds charge calculation is as follows: Uncollected Funds Charge*= (Uncollected Funds Rate divided by 100)x[(Number of Negative Days)(Average Daily Negative Collected Balance)/ (Number of days in the year)] Short-Term Financing Formula Key will work with the City to establish short-term financing should the need arise. FDIC Insurance Formula Key does not charge for FDIC insurance. Service Charge Credit Formula Key's ECR(earnings credit rate)is administratively managed, based on a review of interest rates for various short-term instruments including U.S.Treasury Bills, Fed Funds, LIBOR, and other short-term investments. Historical and forward rate trends and the competitive environment are considered when establishing the rate. 'The ECR is subject to change on a monthly basis and is tiered based on average monthly collected balances with more favorable rates associated with significant balance levels.The Earnings Credit Allowance(ECA)calculation is as follows: • Earnings Credit Rate divided by 100(to create decimal) • Equals the Earnings Credit Allowance truncated at 2 decimals • Divided by days in year(365)and truncated at 5 decimals • Multiplied by the Balance Available to Support Services • Multiplied by days in month(31) KeyBank Proposal of Banking Services to City of Auburn Page 104 CIY OF Police Department ' OL, W'V, JkA'SHINGTON 340 E Main St,Suite 201 * Aubum WA 98002-5548* www.aubumwa.gov * 253-931-3080 PUBLIC DISCLOSURE CHECKLIST Police Records Division Auburn Police Records provides records in the order received,except that we categorize records according to complexity so that records that may be quickly provided with minimal effort will be processed first,and requests for high volumes of records may be limited to a determined number of hours per week and provided using installment methodology.This may be necessary to prevent excessive interference with essential functions of the agency per RCW 42.56.100. When using installment methodology, our first installment will be the born digital case report from Spillman,including booking,and V Drive.When notified by the City Clerk that the first installment has been picked up or purchased,we will begin our search of paper file folders and Coban for additional responsive records.Our searches for"any and all"records need to include evidence records and all department members who may reasonably be in possession of responsive records. City Clerk Req.#153215 APD Log#: —4 Response Managed By: sJ Case#tlA ISM81WO&MPIM77]]1 ❑ Date Received: 11/13/15 ❑ We have no case report existing at the time of this request. ❑ We do not expect to have the requested record(s). ❑Yes ❑No= Open cases,not referred to Prosecutor,are automatically denied.Advise the City Clerk the case is open and has not been referred. ❑Yes ❑No=Is the case status`-`Referred to Prosecutor for Charging"or Cleared by Arrest(and pending trial)? If yes, Records must.send an email to the case detective letting their know we have a request and advising them to contact the City Clerk if they want anything withheld for effective law enforcement.Give them time to receive your email before you load everything onto the K drive,not more than 10 days,then,provide all records to City Clerk. []Yes ❑No= Does the case jacket contain records from other agencies? If yes,recommend to City Clerk to do third party notification. []Yes ❑No= Media in case jacket? ❑Yes ❑No= V Drive Folder copied and placed in K drive ❑Yes ❑No= Coban associated with requested records? ❑Yes [:]No= Evidence chain of custody paper records? If yes,contact Evidence Technician to scan and attach to case file attachments.Per Legal counsel,when the evidence chain of custody records are high volume,let the City Clerk know approximately how many pages.and an estimate of time needed to copy,and ask the City Clerk to verify the requester wants those copies.. ❑Yes ❑No Criminal History Rap Sheet included with records provided?If yes,log the dissemination showing subject's name and to Whom it was released.WSP Auditors will review the City Clerk's log of CHRI released by their office. ❑Yes ❑No= Archived records associated with requested record(s)?If yes,after providing all digitally born records from Spillman,using installment methodology,copy everything in the archived file(s)whether it may be-a duplicate of what was in Spillman or not.The paper file content is a responsive record as well as the digitally born case report being a separate responsive record per RCW 42.56.010(3)and(4). We have instructions from Dan Heid,Doug Ruth and our Chiefs to provide everything we have. ❑Yes ❑No= Additional Time Needed? We estimate approximately days to search,gather and copy records.We currently have open records requests ahead of this one.We estimate we will provide the records for this request or an installment by(date): Due to the complexity of this request,the volume of records involved and the number of requests simultaneously being processed,we are able to dedicate hours per week on your request. The records provided with this checklist,consisting of pages, are: 0 Spillman Report,Sector or CAD/Tiburon 0 All known responsive records in the possession of the Auburn Police Records Division,.and concludes the Records Division's response to this request. ❑ All known responsive records in the possession of the Auburn Police Department. ❑ an installment, _ (number/sequence of installment,i.e.first,second etc). APD Records will begin work on the next installment when notified by the City Clerk that payment for this installment.has been remitted. ❑ Date response sent to City Clerk:11nti1s C•\Users\sjenkin\Desktop\DISSEMINATION CHECKLIST.docx