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Kerwin Deese <br />Vice President & Rela[ionship 1M/hineger <br />Government Banking <br />Earnings Credit Rate: <br />As described in Section V. Cost of Providing Services (Fees) — B. on pgs. 108 -110 of our proposal, <br />we are pleased to offer the City an enhanced managed earnings credit rate to float with an ECR floor <br />of 0.60 %, for a current ECR of 0.60% to offset traditional Treasury Services fees on the City's <br />primary depository accounts. This rate is significantly above our current standard (0.25 %) and <br />premium (0.35 %) managed rates (see Pg. 110) and reflects the value we place on the City's <br />relationship. <br />The ECR floor of 0.60% only applies to the City's primary depository accounts and will remain in <br />place for the initial three -year period of the contract (January 1, 2020). The ECRs we offer are bank <br />managed rates which are reviewed and updated periodically by J.P. Morgan after considering a <br />range of factors, including the market rate environment and our demand for funds. As market rates <br />increase and once our premium managed rates move above the City's floor rate, the City can then <br />expect to see an increase in its ECR along with the premium managed rate at that time. <br />Additionally, the FDIC has increased its surcharge on large institutions (Assets > $10B) by 4.5bps, <br />which we have elected not to pass on to our clients. We are absorbing this increase and as such <br />there will be no increase to our Premium Assessment Fee related to this surcharge. Should the City <br />have any additional questions regarding this matter or the mechanics of our ECR, etc., we will be <br />happy to schedule a call with our Liquidity Solutions partner to discuss these items further. <br />In addition to the proforma described above, we have also included a revised Comprehensive Fee Schedule <br />to incorporate the City's request for Smart Safe pricing which was not included in the RFP. We hope this <br />information will provide the evaluation committee with additional clarity around our pricing proposal and <br />highlight the potential for the City to achieve significant savings by maintaining its banking services contract <br />with J.P. Morgan. We believe that J.P. Morgan will continue to provide the City of Santa Ana with the best <br />overall value and we look forward to our continued relationship. <br />Should you have any questions about pricing or other information contained herein, please do not hesitate to <br />contact me directly. <br />Respectfully, <br />Kerwin P. Deese <br />Vice President & Relationship Manager <br />Government Banking <br />JP Morgan Chase Bank, N.A. <br />End: Proforma, Revised Cost/Bid Proposal Form Attachment 6A/6B, Revised Comprehensive Fee Schedule <br />Cc: Eva Goods, Buyer <br />3 P3,k CAa2C14 <br />159 �J?31'77o kenyin.p.deese(cbbmoroanxom <br />��5�65 -304 <br />