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J:1? Mor an <br />Kerwin Deese <br />Vice President & Relationship Manager <br />Govemment Banking <br />attached proforma. This should further reduce the City's pricing by approximately <br />$6070.28/yr. <br />3) Optimizing Compensating Balances: <br />a. The City has indicated its desire to reduce excess balances held at the bank. By optimizing <br />the City's compensating balances, the City will realize additional savings via a reduced <br />Premium Assessment Fee (PAF). The PAF line item found on Attachment 6B of the Cost/Bid <br />Proposal Form ($27,176.50) was calculated on the average 12mo. Collected Balance of <br />$21,195,352.50 provided by the City. By calculating the City's optimal compensating balance <br />(see Section V. Cost of Providing Services (Fees) — B1. on pg. 109 of our proposal), the City <br />would need to keep approximately $8,157,287.23 after accounting for the service fee credit <br />and reduction in bulk coin /strap pricing as outlined above. This would result in a PAF <br />reduction of approximately $16,572.03/yr. <br />Total Potential Savings: $25,975.64/yr.* <br />" Please see the summary below and the attached proforma. Please note that volumes and balances are estimated and <br />actual volumes and balances may be different, which will result in different charges and resulting savings. Additionally, we <br />found two line items (Online Account Maintenance & Electronic Book Debit S /T) that had incorrect totals on our original <br />Cost /Bid Proposal Form submitted in our proposal. We have corrected these line items in the attached revised Cost/Bld <br />Proposal Form, which results in an additional $2358.00 reduction in annual fees not included in this total of potential savings. <br />Price Reduction Summary: <br />Combined Extended Unit Price Total <br />$ <br />77,277.36 <br />Incorrect Line Item Totals <br />$ <br />< 2,358.00> <br />Revised Combined Extended Unite Price TotaI3 <br />$ <br />74,919.36 <br />Premium Assessment Fee 4 <br />$ <br /><27,176.50> <br />Service Fee Credit <br />$ <br /><3,333.33> <br />Fed -Ready Bulk Coin /Strap Deposits <br />$ <br /><6,070.28> <br />Revised Annual Banking Services Fees net of PAF <br />$ <br />38,339.25 <br />Revised Premium Assessment Fee <br />$ <br />10,604.47 <br />Revised Combined Extended Unit Price Totals <br />$ <br />48,943.72 <br />1. Attachment. 6B —J.P. Morgan's Cost/Bid Proposal Form <br />2 Incorrect line item totals of Online Account Maintenance & Electronic Book Debit S/T <br />3. Revised Total from Revised Cost/Bid Proposal Form Attachment 6A &B <br />4. Remove PAF based on bid sheet balances of $21,195,352.50 <br />5. $10,000.00 Service fee credit applied to analysis evenly over 3yr contract term <br />e' Assumes an industry standard of 60% Standard Coin Bags /Currency Straps and 40% Partial /Mixed Bags /Straps <br />7. Revised PAF is calculated on the City's estimated compensating balance requirement to offset service fees of <br />$8,157,287.23. Required compensating balances and PAP will vary depending on actual service volumes and changes <br />in balance levels. <br />e' Please see attached proforma based off of volumes included on Attachment 6A & B of the City's Banking Services RFP. <br />These volumes and balances are estimated and actual volumes and balances may be different, which will result in <br />different charges. <br />3'irk Plaza, S,Aa 900. ir;in =_. OA 916 11 <br />T'. T'. 747 3'3 P161 749 2641 k) , C 312 -11 9)95 kerwin.o.deesero7lomoraari <br />JPYcr an Chase Sank III .A. <br />55E -303 <br />