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
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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.
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• 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
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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
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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
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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.
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KeyBank Proposal of Banking Services to City of Auburn. Page 22
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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.
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• 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
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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.
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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
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balance information, and save reporting criteria to create reports(in Excel or other formats). PDFs
will also be made available to the City.
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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
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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
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• 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
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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.
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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
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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
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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
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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.
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KeyBank Proposal of Banking Services to City of Auburn Page 34
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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.
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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
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This report shows all files that have been sent and received through the File Transfer module for a
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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
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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.
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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
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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
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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
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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
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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.
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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.
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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.
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• 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.
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• 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.
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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
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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
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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.
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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.
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KeyBank Proposal of Banking Services to City of Auburn page 72
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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.
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• 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
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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.
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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.
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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
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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.
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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
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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
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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
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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
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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