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J.P. Morgan Kerwin Deese Vice President & Relationship Manager Government Banking Earnings Credit Rate As described in Section V. Cost of Providing Services (Fees) — B. on pgs. 108 -110 of our proposal, we are pleased to offer the City an enhanced managed earnings credit rate to float with an ECR floor of 0.60 %, for a current ECR of 0.60% to offset traditional Treasury Services fees on the City's primary depository accounts. This rate is significantly above our current standard (0.25 %) and premium (0.35 %) managed rates (see Pg. 110) and reflects the value we place on the City's relationship. The ECR floor of 0.60% only applies to the City's primary depository accounts and will remain in place for the initial three -year period of the contract (January 1, 2020). The ECRs we offer are bank managed rates which are reviewed and updated periodically by J.P. Morgan after considering a range of factors, including the market rate environment and our demand for funds. As market rates increase and once our premium managed rates move above the City's floor rate, the City can then expect to see an increase in its ECR along with the premium managed rate at that time. Additionally, the FDIC has increased its surcharge on large institutions (Assets > $10B) by 4.5bps, which we have elected not to pass on to our clients. We are absorbing this increase and as such there will be no increase to our Premium Assessment Fee related to this surcharge. Should the City have any additional questions regarding this matter or the mechanics of our ECR, etc., we will be happy to schedule a call with our Liquidity Solutions partner to discuss these items further. In addition to the proforma described above, we have also included a revised Comprehensive Fee Schedule to incorporate the City's request for Smart Safe pricing which was not included in the RFP. We hope this information will provide the evaluation committee with additional clarity around our pricing proposal and highlight the potential for the City to achieve significant savings by maintaining its banking services contract with J.P. Morgan. We believe that J.P. Morgan will continue to provide the City of Santa Ana with the best overall value and we look forward to our continued relationship. Should you have any questions about pricing or other information contained herein, please do not hesitate to contact me directly. Respe tfully, erwin P. Deese Vice President & Relationship Manager Government Banking JP Morgan Chase Bank, N.A. Encl: Proforma, Revised Cost/Bid Proposal Form Attachment 6A/68, Revised Comprehensive Fee Schedule Cc: Eva Goods, Buyer 3 Park Plaza_ Swte 900. Irvine, CA.92> 14 T_ T- 949 833 4061 F_ 949 264 1093 1 C. 310.73 »_9393 kerwln.o.deesea, ymoroan.com J ?Morgan Chase Bank N A-