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HomeMy WebLinkAbout14-051 Banking Services Resolution 14-051 RESOLUTION NO. 14-051 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH KITSAP BANK FOR BANKING SERVICES WHEREAS, The Finance and Budget Committee of City Council directed staff to issue a request for information to local banks regarding the provision of banking services; and WHEREAS, after interviews conducted by the Committee at a regularly scheduled meeting on February 13, 2014, the banks were asked to submit proposals for banking services; and, WHEREAS, after review of the criteria contained in the Request for Proposals, the Finance Committee at its August 20, 2014 meeting voted to recommend to the City Council that the City enter into an agreement with Kitsap Bank for banking services; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend as follows: The City Manager is authorized to negotiate and enter into a banking services agreement with Kitsap Bank upon terms and conditions substantially the same as set forth in Exhibit A. ADOPTED by the City Council of the City of Port Townsend at a regular meeting thereof, held this 2nd day of September, 2014. David Ki g Mayor Attest: Approved as to form: Joanna Sanders, CMC Steven L. Gross City Clerk City Attorney Resolution 14-051 Exhibit A Page 1 of 88 r , �r 1. P 0 f i GT� r r a �r i 11111111111111 1 11111111�(IIIIVVNioumii n� ''' ,,, ,, i rndu�iv�i� � r i 1111111111111 III 1111111111IIIIIIIIIIIIIIIIIIIII IIIIIIIIII IIIIIIIIIIIII III I Dominic Svornich Branch Manager Port Townsend Branch: 360-385-0123 Michael Gordon Senior Vice President/Commercial Payments Manager 360-895-5802 Susan Whitmire Vice President/Commercial Loan Officer 360-379-0123 M KI TSA P BA N M 800-283-5537 www.kitsapbank.com FDIC Resolution 14-051 Exhibit A Page 2 of 88 Banking Services for the City of Port Townsend Presented by 4010'4� � KI TSA P BA N K Dominic Svornich Branch Manager and Michael Gordon Senior Vice President/Commercial Payments Manager and Susan Whitmire Vice President/Commercial Loan Officer July 11,2014 Resolution 14-051 Exhibit A Page 3 of 88 TABLE OF CONTENTS C.QVIER LHTT.1EFZ CORPORATE BACKGROUNDER I. MINNUM QUAL]MMIONS 1 11. BAN KM SERMES QUIESI8"IIO NS/SI"A"rEMEIN"T"S 3 A. TEAM CONTACT INFORMATION AND EXPEMENCE 3 B. REFERE ACES 7 -m- C. COMMUNYT'Y RONVESTMENT 8 D. C.USTOMER SIERV C,E."PM,6Ik,.O.SOPHYI 9 E. R.E.PORTS, 10 f'INANCML S�-ATENIENT 11 RATING 13 F. FUNDS AVAILABUTY SCHEDULE 13 G. BALANCE R.E.P.O.R.'Y'N.NG-ANI..).SYSTE.M.S.,.".A.WL.A.BlIL..U'T.Y 13 H. A(,F.l SEMMES 17 1. POS11TI1/E PAY 19 J. PlAYM EY]'.OF'F E E S, 22 K. E.RIRO.RS..AND AI),USTM.E.N'.I'S 24 L. R.E.S.EARPH.M LIMES AND ADJUSTMENTS 24 M. NSF OR RETURNED ffEMS 24 N. SECUM'T'Y1PRp,rECTMN MEASURES 25 O. SER✓ E ENHANCEMEN'rs 26 P. INII'ERNE"'.I'SEC,U�R9'I'Y 28 Q. !qO!V!I�ETH]VE PRODUCT UNIE 29 R. MSAS1"M,1R1RE1C,0YERY, 29 S. HWPI,,,.E.M.EN.,rA.I'.'10-�-11PU.AN 29 T. ADDRESSMOURS OF 01PIERAMN 30 U. gUIER.SERV6CES. 31 M. EVALUATM PROCESS 32 IV. STATEMENT OF RNANCAL WSTpruflON QUALMATIONS 34 V. EM-flMT k SCOPE OF S.I.;RMES 36 .C.Ii.E.C.K N..G.A.C.C.Otj,Nl"S 36 .AC�A..DEPT-SIEIRY CIESI 37 DH:IECT,D.EPO&I'..F.O.B.P.M.ROLIL, 37 MERCHAN"T'SERMES 38 BA.MNG SUPPLIE'S 39 TRUST AND ESCROW AGENT SERMIES 39 01V,E1,R1D.RA,f,r,,,P.,Ro rECT�01N 39 DAIS E LAPMENTCOMPAyAMU'ry 39 SEB,VtCEP P01".PR01V1 !QEP 40 Resolution 14-051 Exhibit A Page 4 of 88 VL EM CUT B: ME SCHEDULE 41 VII: SIGNATUIRIE PAGE 44 VIII: SUBCONTRACTOR LIST 45 APPENDIX APPENDW k ACCOUNT ANALYSIS STATEMENT SAMPLE APPENDIX B� BANK STATEMENT SAMPLE APPENDIX G� SAMPLE MON114LY MAERCHANTSEWCES REFIOI1'r APPENDIX 0� SAMPLE MERCHAN'r SEWCES STATEMENT APPENDIX E SAMPLE MONTHLY CREDIT CARD REPOR'r APPEN=F: KITSAP BANK ANNUAL REPORT Resolution 14-051 Exhibit A Page 5 of 88 .. 619 Bay St.,P.Q.Box 9 Port Orchard,WA 98366 360-876-7834 July 11,2014 Ms. Nora Mitchell City of Port Townsend 250 Madison Street Port Townsend,WA 98368 RE: RFP-Banking Services Dear Proposal Review Committee: Thank you for the opportunity to propose to provide banking services for the City of Port Townsend. Please find enclosed information which we trust will show that Kitsap Bank is highly qualified and strategically placed to provide superior products and services to your city. Kitsap Bank accepts all terms and conditions contained in the Request for Proposal from the City of Port Townsend. For 106 years, Kitsap Bank has served the banking and financial services needs of public entities, businesses and individual customers throughout Western Washington. As one of the longest-running, locally-owned and operated banks in the State of Washington,we believe strongly in giving back to the communities in which we live and work. Over the years we've sponsored a number of Port Townsend and Jefferson County organizations,giving back over$30,000 this year alone in Jefferson County. Kitsap Bank is pleased to present the City with a suite of robust banking and cash management solutions based upon the services outlined in the RFP. We are offering the City a premium Earnings Credit Rate of 75 basis points(0.75%). This earnings credit rate would offset the average monthly service charges of $971.76 for a total monthly estimated net fee of$351.97 We are strongly committed to assisting the City of Port Townsend by providing you with services and capabilities that will enhance your constituents'experiences when working with you. Our dedicated team of bankers is comprised of people who are your neighbors. We take pride in the relationships we've formed in Port Townsend,and assure you that our team is at your disposal,ready to assist you with all of your banking needs. Thank you for your consideration of this proposal. Should you have any questions or require further information,please feel free to contact us or any of our Kitsap Bank Team members. We look forward to your response. Sincerely, ? .>"_� /�'`� ,imp,,�N,'�'"r•. Steven L. Politakis Anthony M.George Chief Executive Officer President/Chief Operating Officer Resolution 14-051 Exhibit A Page 6 of 88 CORPORATE BACKGROUNDER Kitsap Bank is a full-service community bank, offering products and services tailored to the needs of businesses, non-profits, public entities and consumers in the Greater Puget Sound region. Our experienced professionals offer leading edge financial solutions, with superior service their top priority. Customers enjoy easy access through 21 conveniently located offices in six western Washington counties, as well as a large network of ATMs and state-of-the-art Internet banking services. A Proud Heritage. . .With a Vision for the Future Founded in 1908, Kitsap Bank is one of the longest-running locally owned and operated community banks in the State of Washington. In fact, Kitsap Bank has been in the Langer family for over 90 years and three generations. True to our roots as a commercial bank, we are in business to serve businesses, and have had the pleasure of banking some of the largest business and government entities in our region. As your neighbors, we are committed to knowing your needs and providing fast, locally-made decisions. Topping $900 million in assets, we can assist you with your most significant banking requirements. With a century of community service, we're here for you now...and will be here in the future! Products and Services Cash Management Services Account Analysis Account Reconciliation/Positive Pay ACH Wire Transfer Merchant Services Business Loans and Lines of Credit Remote Deposit Capture Health Savings Accounts Lockbox Services Benefit Banking Resolution 14-051 Exhibit A Page 7 of 88 I. MINIMUM QUALIFICATIONS To be considered for selection,financial institutions must meet at least the following minimum qualifications: 1. Location within the City Limits. The proposer must be a Federal or State of Washington chartered financial institution with a local branch within the city limits of Port Townsend. Kitsap Bank is chartered with the State of Washington and has legal authority to provide banking services. Kitsap Bank is regulated by both the FDIC and the State of Washington Division of Banks. We operate a full-service branch and a loan office within Port Townsend's city limits. Port Townsend Full-Service Branch: 2313 E.Sims Way Port Townsend,WA 98368 Port Townsend Loan Office: 215 Taylor Street Port Townsend,WA 98368 2. Access to the Federal Reserve System. The financial institution must be a member of (or have access to) the Federal Reserve System and have access to all Federal Reserve System services. Kitsap Bank is a member of the Federal Reserve System and has access to all Federal Reserve System services. 3. Legal Compliance. Institution must be in compliance with all applicable laws, rules, regulations, and ordinances of the City of Port Townsend,the State of Washington,and the United States. Kitsap Bank complies with all applicable laws, rules,regulations,and ordinances of the City of Port Townsend,the State of Washington,and the United States. 4. 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). Kitsap Bank is qualified as a Washington State depository for public funds,and is in compliance with the rules and regulations of the Washington State Public Deposit Protection Act. Assets as of March 2014 were$945 million and the bank is considered to be well-capitalized by all regulatory measures. 5. FDIC Insured. The financial institution must be insured by the Federal Deposit Insurance Corporation (FDIC). Established in 1908, Kitsap Bank was initially insured by the FDIC in 1933. Kitsap Bank's certificate number is 06161. Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 1 July 11,2014 CONFIDENTIAL Resolution 14-0.51 Exhibit A Page 8 of 88 I. MINIMUM QUALIFICATIONS 6. Full Service Banking. All proposers must be full-service financial institutions capable of providing the banking services identified herein. Kitsap Bank is a full-service financial institution,fully qualified to provide the banking services identified herein. Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 2 July 11,2014 CONFIDENTIAL Resolution 14-051 Exhibit A Page 9 of 88 II. 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. We are committing the team listed below to ensure the smooth transition and ongoing bank operations of the City of Port Townsend. Kitsap Bank will serve the City of Port Townsend with the same commitment to excellence that we have provided throughout our 106-year history. As your local community bank,the personnel dedicated to your account are your neighbors, highly experienced,and devoted to the City of Port Townsend's success. Everyone at Kitsap Bank is invested in this relationship and available for your call,both now and in the future. We are pleased to present the biographies for the assigned team members. Dominic Svornich, Branch Manager Phone: 360-385-0123 Email: dsvornich @kitsapbank.com Dominic began his career in banking at the age of 19. He has been with Kitsap Bank for 10 years,quickly moving up in the company from the role of Financial Services Representative to his current position of Branch Manager. In 2006,he was named Employee of the Quarter. Dominic actively originated mortgage loans for Kitsap Bank from 2008- 2011,and earned a Graduate of Mortgage Lending designation through the NAPMW's Institute of Mortgage Lending. He studied political science and sociology at The Evergreen State College. Dominic is a lifelong resident of Washington State,and has lived in Jefferson County for twelve years. Active in his community,he has served on the board of directors for the Port Townsend Main Street Program for the past five years,and still serves on their economics committee where he volunteers each summer to coordinate the summer"Concerts on the Dock"series. Dominic has led a panel that worked with downtown businesses to mitigate loss of revenue during the construction project through microloans with low interest rates, partnering with other financial institutions, EDC Team Jefferson,and City of Port Townsend administrative staff. Dominic has also been on the board of directors for the Jefferson County Chamber of Commerce(JCCC)since 2011,and was the 2013 President. He is Chair of JCCC's branding committee,working to create a unified identity for JCCC as a county-wide organization whose membership includes nearly 50%of businesses in Jefferson County. He is also the founding member of the Chamber's Young Professionals Network. Dominic currently is the Vice President of the board of Olympic Peninsula Steam,which focuses on Victoriana and related heritage,education and entertainment in Port Townsend. Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 3 July 11,2014 CONFIDENTIAL Resolution 14-051 Exhibit A Page 10 of 88 II. BANKING SERVICES QUESTIONS/STATEMENTS Michael Gordon,Senior Vice President/Commercial Payments Manager �i Phone: 360-895-5802 Email: mgordon @kitsapbank.com Michael brings significant industry experience in treasury management, business development,and relationship management. Michael has a broad background that includes both commercial and retail experience. Over his 21 year banking career,in addition to his roles working in commercial cash management, Michael has held various branch based roles including Customer Service Representative, Financial Services Representative, Personal Banker, Personal Banking Manager,and Branch Manager. Michael is very active in the community holding an assortment of leadership roles at various community non-profits including the past President and current Treasurer of Multi-Service Center and President of the Pierce County library Foundation. Michael is also actively involved with Habitat for Humanity along with his local PTA and church. Additionally,Michael is a member of the Association for Finance Professionals and the Healthcare Financial Management Association. Leslie Carmichael,Merchant Services Specialist i� Phone: 360-876-7860 Email: Carmichael@kitsapbank.com D� Leslie has been with Kitsap Bank for the past ten years.She started her career in bank operations and now is a specialist in Merchant Services,where she provides innovative solutions to businesses who accept electronic payments.She is active in the business community as a member of the Silverdale Chamber of Commerce and currently co-chair of the Silverdale Accolades Committee. Leslie also volunteers with the Central Kitsap Food Bank, Kitsap Humane Society,The ARC,JDRF,and Kitsap Medical Society. Leslie grew up in Jefferson County, and she is a graduate of Chimacum High School. In 2000,she represented Jefferson County as a Rhododendron Princess. Leslie holds an Associate of Arts and Bachelor of Applied Science in Applied Management,both achieved with Honors through Peninsula College. Susan Whitmire, Vice President/Commercial Loan Officer Phone: 360-379-0123 Email: swhitmire @kitsapbank.com An experienced banker,Susan has been in the industry for 29 years, including 7 years in international banking. Susan has lived in Port Townsend since 2004,and joined Kitsap Bank through the MarinerBank acquisition in 2006. She has been an active Rotarian with the Port Townsend Rotary Club since moving to Port Townsend. Her consistent participation in their fundraising committee helped to remodel and refurbish the Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 4 July 11,2014 CONFIDENTIAL Resolution 14-051 l�6ibkA pugo // qf88 81. BANKING SERVICES QUESTIONS/STATEMENTS homeless shelter located in the Port Townsend American Legion Hall. She has also been named a Rotary International Paul Harris Fe0nou Additionally,Susan has served as trustee on the Jefferson County Library Board since 2006, appointed by the Jefferson County Commissioners. She is currently in her second five-year term, and recently completed a two-year term as board chair.Susan is also on the Board of Directors for the Rotary Club of Port Townsend and |s the incoming President for 2U16. Susan has used her profession to better the lives of her friends and neighbors. She works regularly with Dove House as a trainer,teaching classes on credit and prevention of identity theft. Susan worked with regional management and administration to create a program for participants of these classes to be able to establish accounts with K|tsap Bank,regardless of past credit or financial problems,to help foster financial independence. She volunteers with Habitat for Humanity of Jefferson County as a financial counselor.Through Habitat,Susan works with the chosen families to teach budgeting,credit and financial responsibility and helps existing Habitat families who have come under financial difficulty. She has been a featured speaker for business classes offered countywide by EDC Team Jefferson.Susan has also provided board education for Jumping Mouse Children's Center,along with guidance and support. Susan also volunteers annually for the Port Townsend Film Festival,a K|tsap Bank sponsored event. Tammy Allaire, Vice PresidentjRegional Operations Manager Phone: 360-683-5599 Email: ta||aire@pk\tsapbank.comn Tammy has been in banking for 23 years,and has been with Kityap Bank since 2009. Upon joining K|tsap Bank,she relocated to the Olympic Peninsula and took on the no|a of Vice President/ReR|ona| Manager of the Bank's C|aUam County branches. Shortly after,she assumed the responsibility of managing the Bank's Jefferson County branches as well,and today manages the entire North Olympic Peninsula region. Tammy prides herself|n finding ways that%ituap Bank can give back tp the community,and enjoys participating in a number of local events,including the Sequim Chamber of Commerce and the North Olympic Discovery Marathon. Phone: 360-876-7834 Email: oDeorAe@Wtsaphanh,com Anthony M. George, Kitsap Bank's President and Chief Operating Officer,has 28 years of banking experience and has been with K|tsnp Bank for the past 16 years, first as Executive Vice President and Chief Financial Officer,before his transition to President and mtson Bank Proposal for Banking Services:City vf Port Townsend pones July 11.2o14 oomp|oewTmL Resolution 14-051 Exhibit Page 12Yf88 11- BANKING SERVICES QUESTIONS/STATEMENTS Chief Operation Officer|n2012. He previously served with the FDIC for ten years asabank examiner and regional capital markets specialist. Tony currently oversees Kitsap Bank's retail banking;accounting and finance;information technology;and customer service operations;as well es managing the bank's$4OOmillion investment portfolio. Under his oversight, Kitsap Bank has significantly grown its core deposit base,expanded market share and increased franchise value.Tony was instrumental in establishing Kitsap Bank's parent company,Olympic Bancorp,in 1998;converting the company to a Subchapter S Corporation in 2001,and drafting the company's first private placement offering in over 50 years in2O1U-2011. Tony's expertise was also a major contributor to the successful assumption of the failed VVastymund Bank|n2UV9' Tony is a member of the American Institute of Certified Public Accountants,the Washington Society of Certified Public Accountants,and the Financial Managers Society. Heisa graduate wf Western Washington University and Pacific Coast Banking School. Tony isa lifelong resident mf Gig Harbor and an active member of the community in a number of capacities,including serving as a coach for the Peninsula Athletic Association,Gig Harbor Little League, Harbor Soccer,and Upward Basketball programs,and asa Sunday School teacher at his church. He|sclosely associated with the Juvenile Diabetes Research Foundation,having served on the South Sound Board for six years and serving as corporate walk chair for two years. Steven L. Politakis, Chief Executive Officer Phone: 360-876-7834 Email: spmUtakis@kitnapbanh.com Chief Executive Officer,Steven L. Politakis,joined Kitsap Bank in 2002 as Senior Vice President and Chief Credit Officer and was promoted tnExecutive Vice President one year later. 9m|itakis has been a commercial banker for over 30 years. At Kitsap Bank,Steve has played an integral role in growing assets from$400 million when he arrived,to over$900 million today. Under his direction,the bank has maintained a well- diversified|manpmrtfwUom/itheuce||enturedltqua||ty. 0uringthegreatrenessimn,Stexem/as instrumental in reducing Kitsap Bank's exposure in riskier assets and leading the bank to a position of strength for future growth. Steve is a graduate of Washington State University, Pacific Coast Banking School,and Northwest Intermediate Banking School. Heisa lifelong resident of the Puget Sound region and has been involved in numerous non-profit organizations,including United Way,Junior Achievement, Tacoma Youth Symphony and Bremerton Symphony. Steve|s currently the Vice Chair mfthe K|tsap Economic Development Alliance board,and a member of the Admiral Theatre Board and the Bremerton Symphony Endowment Board. mtnap Bank Proposal for Banking Services:City vr Port Townsend Page July 11.uu1* oowr|oewrm' Resolution 14-051 Exhibit A Page 13 of 88 H. BANKING SERVICES QUESTIONS/STATEMENTS 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. City of Port Orchard Allan J. Martin,Treasurer 216 Prospect Street Port Orchard WA 98366 (360)876-7023 [""81, J$90 Email:amartin cit of rtorchar .us Services: Checking Accounts,Account Analysis,Online Premium Cash Management,ACH Service, EFTPS Tax Payment Service, Merchant Services Dates of Service:Circa 1910-Present Kitsap County Treasurer Z'F. Meredith Green,CPA 614 Division Street MS-32 '8 4^ 61 Port Orchard,WA 98366 ki7�1 (360)337-7135 Email: mKreen@co.kItsajp.mLa.us Services: Checking Accounts,Account Analysis,Savings Accounts,Online Premium Cash Management,Wire Transfer Service, Lockbox Service Dates of Service: 1970-Present Bremerton Housing Authority Laura S. Lyon,CPA �I CFO/Deputy Executive Director Bremerton Housing Authority ti 600 Park Avenue Bremerton,WA 98337 (360)616-7110 Email: II on bremerton ousin .or Services: Checking Accounts,Credit Services,Account Analysis,Online Premium Cash Management,Wire Transfer Service,ACH Service,, Line of Credit Sweep Dates of Service: 1995-Present Port Townsend School District Sara Bonneville Business Manager 1610 Blaine Street Port Townsend,WA 98368 (360)379-4501 Email:sonnevllle tschools.org Services: Checking Accounts,Daily Night Drop Deposits Dates of Service: 2011-Present Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 7 July 11,2014 CONFIDENTIAL Resolution 14-051 Exhibit A Page 14of88 11 BANKING SERVICES MenerVHordvvare 11 ENE6L Y Matthew HenerV President IM 21QVV Sims Way 14 A R,I)NN"A Rl', Port Townsend,VVA9036@ (360)385-5900 Email:Mthener Services:Checking and Savings Accounts,Account Analysis,Online Premium Cash Management, Wire Transfer,Commercial Loans and Lines ofCredit Dates ufService: 2003-Present L Describe your institution's community participation/reinvestment program including your Community Reinvestment Act(CKA) rating. For nearly 106 years, Kitsap Bank has served as one of the region's most steadfast and benevolent community partners,and we're proud to support our local communities.To us,a community is more than a place you find on a map. It's the people we serve,the neighborhoods we share--it's who we are.We're happy to contribute and invest in the community that means so much to us by supporting many local non-profit and civic organizations,ranging from the arts,education,health and social services;to economic and business development. While Kitsap Bank has served the Olympic Peninsula for over 20 years with offices in Sequim and Port Angeles,our first Jefferson County Branch opened in Port Ludlow 10 years ago. In 2006,we expanded our footprint in Jefferson County with the MarinerBank acquisition,and gained branches 1n Port Hediock and Port Townsend.Committed to meeting the lending needs of businesses in Jefferson County,we also opened a commercial loan office in 2006 in Port Tnm/nsend^s historic Mount Baker Block Building. Through the Community Connections Program, Kitsap Bank has invested over$1.2S million and numerous volunteer hours over the past five years to non-profits and civic organizations in the communities vveserve. |n3O14,the bank will provide support to over 1OO area non-profit organizations with donations totaling more than$3OU,UOn.Since establishing a presence in Jefferson County, Kitsap Bank has donated in excess of$200,000 to non-profit organizations in the county. Past notable donations include the Jefferson County Historical Society and the Port Townsend Aero Museum.A summary of the most recent commitments is below. 2O14 Community Connections Budget for Jefferson County:$30,150 Community Partners(Greater than$500// Centrum, Dove House Advocacy Services, Habitat for Humanity of East Jefferson County,Jefferson County Farmers Market,Jumping Mouse Children's Center, Port Ludlow Arts Council, Port Ludlow Festival Association (Festival by the Bay), Port Townsend Film Festival, Port Townsend Main Street Program,Port Townsend Rotary Club, "Return of the River" (a documentary film produced by Bm/hafUm LLC) Additional 2*14 Community Partners/n Jefferson County: Carl's Building Supply Customer Appreciation,Community Enrichment Alliance,Gathering Place, Northwind Arts Alliance,Olympic Peninsula Steam, Port Townsend American Association of nnxwp Bank Proposal for Banking Services:City o,Port Townsend Page July 11.un1* oomp|oEwr|xL Resolution 14-051 Exhibit Page /JYf&y I|. BANKING SERVICES QUESTIONS/STATEMENTS University Women (AAUW),Port Townsend Marine Science Center,Rakers Car Club, Rotary Club of East Jefferson County Our employees are also very generous with their time by volunteering with organizations throughout our footprint.Over the past year,employees have volunteered over 5,200 hours within our communities.This is all part of our commitment to our communities in which we live and work. Our Community Reinvestment Act(CNA)rating|sSatisfactory. D. Describe your institution's customer service philosophy and organizational structure and provide meaningful examples to illustrate. With over 20 locations throughout the greater Puget Sound region—our employees are serving and living in the communities of Kitsap, Mason,Jefferson, Pierce and King County. A|ocaUy owned bank since 1908, Kitsap Bank is the only community bank that offers the convenience and locations of a larger bank,but the friendly personal service and understanding of a community bank. When you establish a relationship with Kitsap Bank,you are joining a tradition of service and responsibility that has been part of our communities for generations. Customer Testimonials "| LOVE banking with N|tsop. Dominic,April,Candice, E|yce,and Ash|ae are wonderful and always very,very helpful. I work at Centrum at Fort Worden,and in the summer months during Festival Season I am in an out of the branch many times a day for big cash deposits,and also for getting cash for all our bank tills for all our events. I know I take up a lot of their time,and they are always pleasant to me,and I have NEVER felt like I was an inconvenience,and I know we can be exhausting during the weeks starting with Voiceworks, Fiddle Tunes,Writer's Conference, Blues and Jazz!We top the season off with clubs downtown during Blues and Jazz,and that's a lot of deposits! I am able to email them my cash needs ahead of time,and it is always ready and available when I need them.They've also helped me out on wire transfers to Performing Artists, and in last minute rushes when I'm suddenly told "oops, I forgot to request this earlier.Can we still get|t7" |would recommend them for anyone,and |do!" Lisa Johnson Finance Manager Centrum "I have enjoyed banking at the Port Townsend branch and look forward to bringing more of my banking business to Kitsap Bank in the future, both personal and business.The associates are always very helpful and knowledgeable,and | appreciate that N|tsap Bank isacommunity institution and cares about the local community.Other banks have associates that are great people,but the bigger banks have policies and practices that are not in the best interest of the customer or the community.| appreciate what you are duin8|" Glenn Lyons Customer xuoap Bank Proposal for Banking Services:City of Port Townsend Page July 11.uo1* COwp|mswT|AL Resolution 14-051 Exhibit Page /6o/88 || BANKING SERVICES "it is always a pleasure to go into the branch.The staff is welcoming and really helpful.You're my banking"home"!" Patricia Vaughan Customer E. Provide the following reports and information about your institution: 1. Sample monthly account analysis; Z. Monthly bank statement; I Monthly merchant services report; Kitsap Bank Proposal for Banking 6ommoo City m Port Townsend Page 10 July 11,2014 CONFIDENTIAL Resolution 14-051 Exhibit A Page 17 of 88 II. BANKING SERVICES QUESTIONS/STATEMENTS 4. Most recent financial statement C)]ynxpic Bancorp,Inc,and Subsidiary(T3ollaxs in°rhrausands) , March 31,2014 and 2013(unaudited) a , ; �.a.;ta arul Clue Frour Banks S'1;3,94O `$`17.249 Federal funds Sold 5C1,ISa.I 55,456 Se,-Lm ies Available for Sale _ _ 381,296 393,941 sv,'mincn Held to Pvlatunty 3,907 3,5761' Pedrtral i{nrrie Loan BanF 51nrk _. _ __ d,l"r.'"i 4 385 [.cans Nc Ir:I far,>r,& 1,227 1,676 loans,an(l 1 eases _._ __ 442,178 423,101 Less Allowaroe fm Loran Losses __ _ _ .. (71037`2 7,163) NotLoans and Le vases,,,,,.,..,,°...................................................°.,,...,...,..,.,..,.,..,.,,,.,,,.,.435,091 415,938 Prennusr s ar,d fix€;,j Assehr __. _ 16,071 15,687 00t er Rcaf f sttate(.kvned_ 1,271 2,611 Goodwill and Othei Irdarx7rbles 12,977 13 063 Accrued Interest Receivable 3,6/4 :3,167 Bank f)wne(l Lrie Insitrraru;ta _ _ 20,430 19,67593 `.7tt'tnr Assets 1,134 :3,:35(7 Total Assets,........ ................. ......... ............ ............................... 945,997 920,367 Deposits Nrrrnlr�ternsv E;et,arrrg0 Ac.c�orxrts 195,745 184,693 Savmgs and Interest[Nearing Lleirimrd 463,013 423,446 fifne __ __. __. 1/7,594 195,942 TotalDeposits.,,..°,,,°..........................................................................................................936,352 804,084 Short-term Borrowings .,.. 0 0 Lonq,term Bof i orvings _ 0 3,5[06 Arcrued Inted'est i'ayable _ _ _ 251 314 Other Lrabilhips, . 12,8371 12,980 TotalLiabilities-.......................................°.....,,.................................................,...............849,474 820,881 shareholder Equity Coamnrra Stot:k'�No par value 5070,0071 autholized, 158,820 ssuea:fi _ 20,132 270,132 surlali.0 0 0 Ret,.ihipd[arrungs 75,3'10 12,045 Accor'oulated Other L r mpiehensive Income _ _ 1,621 7,309 Total Shareholders`Equity,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 96,523 99,485 M n rrity Intuesi in Partnership ._ _ _. _ 0 0 TotalEquity Capital.............................................................................................................96,523 99,486 Total Liabilities and Shareholders'Equity........................................,........................-945,997 920,367 Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 11 July 11,2014 CONFIDENTIAL Resolution 14-051 Exhibit A Page 18 of 88 II. RANKING SERVICES QUESTIONS/STATEMENTS Olympic Brarrcorp,Inc.and Sut>.sidtary(Dollars in Thousands} Year To Date Match 31,28:14 and 2013(unaudited) Irrtt'�r ,ar�:1 Ff;E r rt,rr�c t;ri rrt�ns 3f�/t(1 S4i,n(}R intE if'r,t hrr one( r°,rrr Urd(Y(a.,�C��iy�.ie,litr,P�rms it 0 Interest grid Djpuirir nd irir.o to an Secwist,es 2,032 1,467 ntcfest on4'ed Funds Sold 26 t Outer InI'@rt s'I Inc the TotalInterest Income.............................................................................................................7.306 6.898 erE ) on 0 nteir ,t err Fe[!Eustis 11wC m,,(1 r Into test on Adv nu Ps nerd Ott er Bomwed Money TotalInterest Expense..............................................................................................................634 039 NetInterest Income...............................................................................................................6,672 6,059 0 S wen n r es an opositAccounts hlti Not( 3 it,on Die S'ile A Coans t Tl(l foi i{tr _ 86 196 Otlre�11ou latch,r inmme 05 1,307 Total Non-Interest Income....................................................................................................1330 2,281 aw!`:nail,tr �ffi>110 is 4,36 1 ;1,:1x3/ 0(;I Ir,anry,rnel ti aq n'rr:nt 7:35 755 Oilnei Non-ImprP Expon,6' 1,Ai7 1,947 TotalNon-Interest Expense..................................................................................................6,863 7.104 1,539 1,227 1i J 1,539 1,227 Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 12 July 11,2014 CONFIDENTIAL Resolution 14-051 Exhibit Page 19 of 88 !|. BANKING SERVICES QUESTIONS/STATEMENTS 5. SEC and/or Mnody's credit rating or comparable rating; and Kitsap Bank is privately held. We do not issue debt,and are therefore not rated by these rating agencies. However,we are solidly capitalized,well in excess of the FDIC regulatory standards for a"well-capitalized"institution. Additionally, Kitsap Bank holds a 5-star rating from Bauer Financial. 6. Sample monthly credit card/purchasing card report. Mease see App F. Provide a funds availability schedule. Describe one day,two day availability and wire requirements. All deposits accepted at the branch of deposit before the close of business,will be credited to the City's account the same day. Funds from checks deposited will be available on the following business day. Funds from electronic deposits such as ACH and Wire Transfers will be available on the same day they are received. Incoming wire transfers will be posted immediately upon receipt byKitsap Bank. Within minutes, the Premium Cash Management Online Banking service will be updated,and the City will be able to view the incoming wire transfer as part of the transaction detail information. Kitsap Bank provides for the initiation of domestic and international,repetitive and non-repetitive wire transfers. Wires should be transmitted by 12:30 p.m. PST for same day processing. Secondary authorization and mobile authorizations can also be utilized,if desired,through our Premium Cash Management Online Banking service wire module. G. Describe your Balance Reporting systems and availability. 1. What hardware/software does the bank use to deliver balance and transaction detail information? Kitsap Bank's Premium Cash Management Online Banking service can be used to view, print and/or export all transactions posting to the City of Port Townsend's accounts. The service is an Internet based program accessed via ourxvebsite (vxvxw.kitsapbanh.com)' Authorized Kitsap Bank customers are directed to our 128 bit RC4 encrypted secure site to access their accounts. Our Premium Cash Management Online Banking service may be accessed via a standard PC or Mac running the latest commercially supported browser versions available. For best performance,we recommend utilizing a Cable,DSIL or ISDN Internet connection. It is important to keep all computers that access the Premium Cash Management Online Banking service updated with the latest program,security,anti-virus and spyware patches available. Each user will be required to have a valid e-mail address and telephone number for security access. To view e demo mf our Premium Cash Management Online Banking service, please visit the link below and select"Business Online Banking Denmo". mmun Bank Proposal for Banking Services:City or Port Townsend Page 13 July 11.uo14 cowr|oswnxL Resolution 14-051 Exhibit Page 20Yf88 Ny' BANKING SERVICES QUESTIONSISTATEMENTS 2. What time is previous day information available for access by the customer? Previous day(posted)transaction detail is available before 7:00 a.m. PST on each business day. 3. What are the hours of access of the balance reporting system? The balance reporting service is available 24 hours per day,seven days per week. 4. Does the bank provide current day information? Yes,Khsap Bank provides current day information. a. How frequently is this information updated throughout the day? Current day(pending)transactions such as deposits made at Kitsap Bank branches,checks presented to Kitsap Bank for payment,and incoming/outgoing wire or ACH transactions, are displayed online|n real-time as they occur throughout the day. b. What transaction types are available on current day reports? All transaction types are available for online viewing,printing and/or exporting. S. Describe the level of detail provided in previous and current day reports. Both online viewing and reports provide information for all current day(pending)and previous day(posted)transaction types. The information includes: • Name/Type mf the Transaction (Check, Deposit,ACH,Wire) • Location/Description (for ACHtransactions) • Transaction Date • Debit mr Credit Amount • Running Account Balance • Subtotals Online viewing and printed reports will also provide the following account balances and information: • Accessible Balance • Available Balance • Current Balance • Ledger Balance • Collected Balance • Last Statement Date • Next Statement Date • Interest Rate • Year-tu-Qate Interest Amount • Interest Paid Last Year mtsup Bank Proposal for Banking Services:City o/Port Townsend Page 14 Ju|v11.2m* cnmr|ocwTmL Resolution 14-051 Exhibit Page 21 Yy88 AX. BANKING SERVICES QUESTIONS/STATEMENTS In addition,digital images of the City of Port Townsend posted checks and deposit slips are available for online viewing orprinting. Deposit Location reporting is also available should this service be needed. 6. How many days of history can be accessed through the system? Between 60-90 days of transaction history is available online for viewing,printing and/or exporting. The City of Port Townsend may also elect to enable electronic statements (eStatements),which will provide up to 18 months of statements online in PDF format for viewing,printing and/or exporting. 7. In what format is information available? Transaction data iy available for export in the following file formats: ~ Spreadsheet(.w|aor'csv) * [\u|cbboohs(.qbo) * Quicken (.qfw) * Money(.of*) 8. Provide a sample printout of the daily on-line balance information. Daily online balance information may be sorted by column,and/or filtered using our built in search criteria for online viewing, printing and/or exporting. Please see report samples below: Sort and Search Criteria Sorted By Post Date Newest all top DOM Credit Balance KXXXXAX34320 DATE:07-01-14 1 RAE:10:02:10 S22 58 MOW mtsun Bank Proposal for Banking Services:City wr Port Townsend Page 15 July 11.uo1« cownoswTmL Resolution 14-051 Exhibit A Page 22 of 88 II. BANKING SERVICES QUESTIONS/STATEMENTS Online viewing example 0—e,. Account History for Insight Inc Checking-xxx 7136'11 rotary C v,2 A..e11, V-a s- e I R w a '.1+tltl 6 1'V%S Yeal 3,-11 U..a l;,_C ilp'!✓S—i br t Il"",1v arTir la_..a_o}J""'r S TRANSACTIONS R,rgYeM ITr:txni Ll [on�, Ar.,rsa I,N.Bal.— $22.57 Last Si t�uveront D.I. 8,'+12'55{ B P"� A,11-Mlo.Utle&scamps 52267 Flout II404earoBmt Pala 7,'1512+Sf4 areml Bill 522 AT In Verast RSha S.1.1n4% I. C. Ce3EeM1R0ERC.lAE L-dg S.W. $20.03 Y ar-t*f I P lam 1 $0,11 C.'N1,c tad B a/aox 52.as I Pmt L a It Ye,at �� F,✓J h4 s �,.:.�,,, �./oil �i%/r%��I HlPrIIIYt�.11l(d,�H�marirga^HJJr�w�itlr „ ��jjl��.,:, GIr' IIV %f (1i� ldlla21'�1�'(1 � �f1( � 1,T r' Pen d", _f- 5art.:fly'.P-1 04ata Pd...'.mm tags - ©etaat 4.dim EaSamoe PHIVO#gt.INE TRANSFER PR ACC AXXS'M2920 DATE.07 91-44 NNS 11102 IU lxberdisi: SON $;C.;;N PaSPrat SERVICES S.PRI 8y:Piet date tAp UW Cre:A19 Bmi- I HF{R 5' 4 DEF'OEI I' TRAHn.+FER DEBIT Eff Dc.mMllrcgM DEPOSIT ACCOUNT XXXXXXMI _ 3I:Y5 „,,:..s. 11E1EFIENCE9 TF{d4W;FE'I?k CREDIT N.X.',tiKHX2594 A 1111VICE CHORDS W1111 C1EP11511 CHECK Eff on,7(ISd-TY 01 la xry MOBILE DEPOSIT 12' UOWL DEPOW BARRY B h d siotiI PREAUrHORIZED CREDIT BARRY 8 INSMIT Nyrnll DARR TFSX y 4 SR.,y CREDIT ciEnC TO REIMBURSE ACCVU HT FOR.HECK 020 SG TESTING ERROR,FUNDS RECEIVED PRO EA CHECK MUM iWC f WPaFIWUUIG Sf 34 PHrVCf UTRE TRANSFER FR aaf.0#,SY,Y:.kR'+R2a DATE:04.V,14 TIM c 05AZ `4 .htJnmea.!: kr2a.us sar,.a.ar, Printed report example Account Datsiis for Insight Inc Ch k g-xx x]13611 . �s�nle 2.ninrrce q,22.S) 5,13R0tn i1N horn r OJ,.-.t 9tDtu!rirSnt 6rN.� —0011 W Ill L-tlu_r&mAUnr'e 550-115 i,tlrw real Lon1 v�,,, an.�Da Account Hinlory for Insight Inc Cheehiny-x-713611 NI lU"eLIME I't1Flx I2 H1.A(.l,XXI tx-11 UAlt 14 iIM1.IU.Ul.:tl, it/lM1 42_.fi sSf$e ,1,n:Ar,,r-tn.oc ;z.5ra Pnmme P t ,r.+'Ii4Ud3') #[2J.A1 :t2tl!Jyx. DF.P(Ytl' 6r3/ln 4122.P+t vrn'�_+r�� li i-IT I 11 I -,IG-U6-C .I,-co /2r'1A 3t.Ud 120611 TPAr SFFR CPC ft(T '.ry5PER FROM D: -T A('rlinlT%i,tX-YII 6,1l1t El.JU ;1.1.4d IORI GE IHNCGE-BILE--F Ift j"it inl;4 b940 t�998 L/ fi Y 34 4 41 18 120 5 511/[i lG.r^c'r 19�+9gC3) tt.Y1 l2(.6Y 1A,tB1.El.,0,If 5/Uk4 f�'hmrh r4ll9335j 21.tM1 '421 53 M1+.U111tt p11�4Sii ti/ti"4(chavi unsYS<',[;) Tt.tti 521 6P F..PY C Jtd5C6[I'(Y 'F J51GE0 t P[:f Nr9kY p:SI P3xu l 1vHR Tart 4/3Ui_� 43_zn Y/u ix [(E>il Iri1Q ru VF) 811.1 A0,011 lil TOli.H1ECx.,T 11356'HY11+U 0,I1..11 1111111W"Ill 11 tVIfCI rb113 Alix iar50302.'V3J 16 5539,4P S"'ll 3i 1125/11 1 is 1.1 runr, xxx s ra re.na c 1"r 1,,11 A R .a t ah s31< s12 Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 16 July 11,2014 CONFIDENTIAL Resolution 14-051 Exhibit A Page 23 of 88 II. BANKING SERVICES QUESTIONS/STATEMENTS Export to.xis example D F F B 1 P -Date Ch ,k 0-11 t- Debit Cl.di t SWUu B.I.— 2 07!0162014 PHH S1 11NE TRAf75FER FR ACC x,{XxK{X3620 DATE 07 Ot-14 TUrE 1U 02 10 2 50 Pe Nivrg 22 58 3 061051201-0 1°9023 CHECK 127.91 R.S 2009 4 03/0512014 DEPOSIT 127.91 Pact=d 'I4799 E, 08/02120144 TR,NSFER DEBIT Eff Dte.2014-0s-Di DEPOSIT ACCOUNT)MAk2511 100 Posted 2003 6 0"0/0220144 TRANSFER CREDIT TRANSFER FROM DEPOSIT ACCOUNT XKXXX<261i 1.00"a ,d 21.03 X 05(1472014 SERVICE CHARGE MOBILE DEPOSIT 0 5U Posted 244.00 a 05'0272014990002 CHECK Eff Dte'.2014 BE 01 7 10 Posted 20 644 9 05101/2010.997003 CHECK 1 14 %tvd 2162 10 05/1) 2014'%#89336 MOBILE DEPOSIT 1.14 Posed 22.02 11 0,!01/2014'489166 MOBILE DEPOSIT /10 Punted 21 08 t)041:7€12014 BARRY B NSfGHT PREAUTHCRIZED CREDIT BARRY B INSIGHT Payra9 BARR Test 3 24 Posted 2059 13 04125!2014 CREDIT MEMO TO RERABURSE ACCOU NT FOR CHECK#1208 66 TESTING ERROR FUNDS RECEIVED FROM CHECK 00039 ACC T 06400243416 549 96 Pastod 1734 14 04/196.'2014 PHU'OHLONE TRANSFER FR ACC)XXXr.XXa820 DATE 04-1Fi-14 TIME.16:05'.13 0 01 Pasted 532 54 H. ACH Services: 1. What is the recommended service delivery method (i.e., direct transmission, online, or other)? Direct deposit/ACH transaction information can be created in other systems and uploaded to Kitsap Bank for initiation via the ACH module of our Premium Cash Management Online Banking service. The file should be provided in the standard NACHA file format. As an alternative,ACH data may be manually entered into the system or uploaded via a specifically formatted Microsoft Excel spreadsheet. a. What are the hardware/software requirements? The service is an Internet based program accessed via our website(www.kitsapbank.com). Authorized Kitsap Bank customers are directed to our 128 bit RC4 encrypted secure site to access their accounts. Our Premium Cash Management Online Banking service may be accessed via a standard PC or Mac running the latest commercially supported browser versions available. For best performance,we recommend utilizing a Cable,DSL or ISDN Internet connection. It is important to keep all computers that access the Premium Cash Management Online Banking service updated with the latest program,security,anti-virus and spyware patches available. Each user will be required to have a valid e-mail address and telephone number for security access. To view a demo of our Premium Cash Management Online Banking service,please visit the link below and select"Business Online Banking Demo". tttas.//sectare itsap2.onlineaccessl com/Kitsapl/demo emo.htm b. What training does the bank provide? Michael Gordon,SVP/Commercial Payments Manger,will provide hands-on,personalized training at your convenience. Additionally,should the City have additional questions,our Online Support Department staff located in Bremerton,are available via phone between 8:00 a.m. and 5:00 p.m. PST. c. Does the software offer the ability to manage security and access levels by user? Yes, users may be set up with varying access levels, rights to accounts,and transaction limits. Kitsap Bank will establish one administrative level user for the City of Port Townsend with the ability to perform all functions including managing users. For Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 17 July 11,2014 CONFIDENTIAL Resolution 14-051 Exhibit A Page 24Y/&K || BANKING SERVICES additional security,activating new users and resetting passwords for existing users requires the assistance ofKi%smp Bank's Online Support Department staff. d. What report options are available? Within the Online History area of our Premium Cash Management Online Banking service, users have the ability to perform searches tu display and print any type ufonline transaction (ACH,Wire,Tax Payment, Funds Tronsfer)' Online transactions can hefurther filtered by status,type,tracking ID,description,account,amount,date created,details or user. Double clicking on an individual transaction will display the transaction details which can be printed. There isalso a copy feature which will create an identical batch that can then be modified and submitted. e. What controls are in place to protect against lost files and duplications of transmissions? A facsimile or secure message transmittal form sent to the bank is required for all ACH, Tax Payment or Wire transactions initiated. Bank personnel verify the transmittal for amount,effective date,batch |Q and authorized signature. Each file received ismatched to the corresponding transmittal prior to processing to verify that all transactions received are authorized. If questions arise, Kitsap Bank staff will contact the City of Port Townsend directly. i Does the bank provide automatic file receipt acknowledge ments? if so, how? Yes,the status of the online transactions can be monitored throughout the transmission process within the Online History area of our Premium Cash Management Online Banking service. Transactions will have the following statuses: • Drafted—the transaction has been created, but|u not yet approved or sent to KitsapBanh • Authorized—thetranuoctionhaybeenapprmvedandsen%twK|tsap Bank,but has not yet been processed • Processed—thetranyautionhmsbeansuccessJu||y received and processed by K|tsap Bank • Cancelled—the transaction has been successfully cancelled and will not be sent to Kitsap Bank g. Describe the role of any third-party processor used by the bank to provide this service. Kitsap Bank utilizes an Online Banking vendor for Premium Cash Management Online Banking service access and a Bank Processing vendor for account access. The City ofPort Townsend will always be in contact with Kitsap Bank staff for any questions relating to the systems or accounts. xitsap Bank Proposal for Banking Services:City v,Port Townsend Page 18 July 11.on14 Cnwr|oewTmL Resolution 14-051 f,-x6ibit A Pug, 25 o/@9 SERVICES 11. BANKING QUESTIONS/STATEMENTS 2. What are the hours of operation of the ACHunit? Our Online Support Department staff are available via phone between 8;OOa.mn'and 5:00 p.m. PST each business day should the City of Port Townsend staff have ACHquestions. 3. What are the bank's cut-off times for customer initiation of ACH transactions? The ACH cutoff time is 3:45 p.m. Monday—Friday(excluding Bank holidays). Credit(payroll) files should 6e transmitted by 3#5p'nm-two working days prior to the settlement date (payday)to ensure that funds are made available by the opening of business on the settlement date. Note: Kitsap Bank does allow files tmbe sent with one working days'notice, however,timely availability at all financial institutions cannot be guaranteed in this case. Outgoing ACH,Wire and Tax Payment transactions can be future dated up to 30 days. 4. Describe the procedures used to verify accurate and secure receipt of transmissions. A facsimile mr secure message transmittal form sent to Kitsap Bank is required for all ACH,Tax Payment or Wire transactions initiated. Bank personnel verify the transmittal for amount, effective date,batch |0 and authorized signature. Each file received|s matched tothe corresponding transmittal prior to processing to verify that all transactions received are authorized. If questions arise, Kitsap Bank staff will contact the City of Port Townsend directly. 5. Can the bank automatically redeposit items returned for insufficient or uncollected funds? Returned 4CH transactions originated by the City of Port Townsend will be charged back to the account|n which they were originated from. K|tsop Bank will contact City staff mn the day that the ACH item is returned to provide additional documentation. Deposited items that are returned NSF may ba processed a second time,|frequested. 6. How does the bank handle file, batch, and item reversals and deletions? . An authorized representative for the City of Port Townsend would need to contact Kitsap Bank's Online Support Department staff for assistance with any file,batch or item reversals/deletions. Different procedures may bo used depending upon the time of day and status of the transaction. i Positive Pay: 1. What is the recommended service delivery method (i.e., direct transmission, online, or other)? Check issue files for Positive Pay services can be created in other systems an6up|madadtm Kitsap Bank via the Positive Pay module of our Premium Cash Management Online Banking service. The file can bein most any format,asxoehave a process built into the Positive Pay system to data map check issue files to meet our specifications. Ason alternative,check issue data may be manually entered into the system. xuoap Bank Proposal for Banking Services:City o,Port Townsend Page 19 July 11.co1^ COwr|uemTmL Resolution 14-051 Exhibit Page 26v/&Y 10 BANKING SERVICES 2. What are the hardware/software requirements? The service is an Internet based program accessed via our vve6site(vvvxxx'kitsapbank'cono). Authorized K|tyap Bank customers are directed to our 120 hit 0[4enurypted secure site to access their accounts. Our Premium Cash Management Online Banking service may be accessed via a standard PCqr Mac running the latest commercially supported browser versions available. For best performance,we recommend utilizing a Cable, DSL or ISDN Internet connection. It is important to keep all computers that access the Premium Cash Management Online Banking service updated with the latest program,security,anti-virus and spyware patches available. Each user will be required to have a valid e-mail address and telephone number for security access. To view a demo of our Premium Cash Management Online Banking service, please'visit the link below and select"Business Online Banking 0emo°' 3. What controls are in place tm protect against lost files and duplications oftransmission? When a check issue file is uploaded through the Positive Pay system,the user receives immediate confirmation that the file was successfully received. |f for some reason the file does not import,the original file will still reside in the City of Port Townsend's system and can simply bere'up|oaded' The Positive Pay system has a built-in process tp check for duplications of files,and it will skip the import for any items it already finds in the system to avoid creating duplicate entries. 4. Does the bank provide automatic file receipt acknowledgements? If so, how? Yes,the City of Port Townsend and the Online Support Department staff both receive email notifications whenever a check issue file is successfully(or unsuccessfully) loaded tpthe system. The City staff can also go to the Issued Check File Processing Log screen within the system tm see confirmations of all check issue file processing. 5. Describe the role of any third-party processor used by the bank to provide this service. Kitsap Bank utilizes one mf our Online Banking providers preferred vendor partners for Positive Pay services. The module is accessed via o secure link(no additional login required) within our Premium Cash Management Online Banking service. The City mf Port Townsend will always be|n contact with Kitsap Bank staff for any questions relating tw the systems mr accounts. 6. What is the bank's deadline for transmitting fihs/data? Check issue files may be uploaded to the Positive Pay system at any time of day. K|tsapQanh would encourage the City of Port Townsend to upload check issue files prior to distributing the checks,sm there will not be any issues with negotiating the checks|n our branches before the Positive Pay system has the check information populated. mmvv Bank Proposal for Banking Services:City u/Port Townsend Page 20 July 11.001x cowp|osmT|AL Resolution 14-051 Exhibit Page 27Y/&y ik' BANKING SERVICES QUESTIONS/STATEMENTS 7. What is the process for notifying the bank of a single check or small check run outside of the regular batch file? Check issue files may be uploaded or hand entered into the Positive Pay system at any time. Kitsap Bank Online Support Department staff would be available via phone for assistance with any single check pr small check run file issues. 8. How does the City notify the bank of voided and stop payment checks? Stop Payment requests on an individual item can he initiated via the Premium Cash Management Online Banking service. Stop Payment requests are|n effect for six months. Voided and stop payment checks may be uploaded or hand entered into the Positive Pay system. 9. Does your bank have payee verification? No,we are not currently performing payee verification in our Positive Pay system. 10. |s the positive pay service fully implemented ut all bank branches? Yes,all Kitsap Bank branches are set up to review check items presented for payment over the teller line for Positive Pay alerts. 11. How does the bank handle exception ("paid not insued,) items? The Positive Pay system will automatically compare all check issued file data in the system to items clearing the City of Port Townsend accounts daily and present check and/kCHexceptions online for City staff tmreview. Exceptions can include: • Amount Mismatch—the amount in the check issued file does not match the item as presented against the account • Blocked Transaction—ACH Debit and/or Credit blocking is in place and all ACH items presented against the account need manual review • Check Number is Blank—in most cases, Kitsap Bank staff would correct this and the City staff would not need to handle this exception • Check Number is Zero-in most cases, Kitsap Bank staff would correct this and the City staff would not need to handle this exception • Duplicate Paid Item—the item has previously been paid through the Positive Pay system • Paid Not Issued—a check presented against the account was not in the check issued files • Stale Dated Item—a check has presented against the account after 180 days(days are configurable by the customer) • Stop Payment—a check presented against the account has a stop payment on it mtoon Bank Proposal for Banking Services:City v,Port Townsend Page 21 July 11.uo14 Cowp|oEwr|AL Resolution 14-051 l-x6ibit A Page 28vy88 |U BANKING SERVICES • Unauthorized ACH Transaction—An ACH Debit and/or Credit has been presented against the account and was flagged for manual review by specific rules setup(rules are managed by the customer) • Voided Item—a check was presented against the account that was voided a. Does the bank offer a daily listing of exception items? Yes,when the Positive Pay system is accessed,City staff will see a listing of all exception items presented for their review. b. Are there defaults available for each account to either automatically return or pay on exception items? The primary function of Positive Pay is to protect our customers from losses due to fraudulent items. The default decision for all accounts when a decision has not been made onan exception item bV the cut-off time isto return the item. c. What is the timeline for reporting exceptions tuthe City? Exceptions will be available within the Positive Pay system by 8:30 a.m. PST' d. How are exceptions reported to the City?Will an image beavailable? City staff will receive on email notification around 8:3Oa.m. PST to alert them ofany exception items. Images mf all exception items are available within the Positive Pay yVytemn' e. What is the timeline for the City to act on any exceptions? City staff will have between 8:30 a.m. PST and 12:00 p.m. PST to make pay/return decisions on exception items. f. What are the hours ufoperation of this service unit? Our Online Support Department staff located in Bremerton,are available via phone between 8:00 a.m. and 5:UUp'm' PST each business day should the City m9 Port Townsend staff have Positive Pay questions. J. Payment ofFees. Respondents will need to provide information un the following: 1. The effective rate and formula used to calculate the service charge credit for collected fund balances; The current Kitsap Bank Earnings Credit Rate for Account Analysis is.75%. This rate issubject to change. Earnings Credit Formula: Average Monthly Ledger Balance—Float=Average Monthly Collected Balance;Average Monthly Collected Balance—10%Reserve Requirement= Investable Balance wuoap Bank Proposal for Banking Services:City m Port Townsend Page 22 July 11.uo1* oownoemTmL Resolution 14-051 f�xhi6itA Page 29 of89 11' BANKING SERVICES QUESTIONS/STATEMENTS Investable Balance X Earnings Credit Rete/365 X Number Days in Month=Earnings Credit Amount Fee compensation will be made with compensating balances via Account Analysis(with the exception ofMerchant Services). 2. The proposed method for setting rates on a compensating certificate of deposit; Kitsap Bank does not require a certificate of deposit for compensating balances. 3. A time frame proposed to pay any additional fees not offset by service charge credit; For customers on Account Analysis,fees not offset by the Earnings Credit will be directly assessed to the billing account on or about the 6th business day of the month. 4. Whether service charge credit/debit can be carried forward tothe next period; Account Analysis settlement|s currently ona monthly basis. Earnings Credits are not carried over tn the next monthly billing period. S. The formula for any fees in the event ofanoverdraft; Current NSF fee($32.U0)X Number of Overdraft Items Kitsap Bank's policy is to process checks cashed or processed over the counter first at the time they are presented for the day on which they are processed.We process electronic transactions second in the order in which they are received for the day on which they are processed.We process other checks and similar items third in numerical order for the day on which they are processed. G. Describe what constitutes a daylight and overnight overdraft situation. A daylight overdraft occurs when the use of funds during the day that have not yet been credited to the account results ino negative account balance. An overnight overdraft occurs when all credit and debit items have posted,and the account has a negative ledger balance as areuu|t. The bank will honor daylight overdrafts up to the established available credit line amount without charge. Any daylight overdrafts above the available amount on the line will also incur no charge,but will he subject tm review prior toprocessing. Other options for overnight overdraft protection will be established as agreeable with the City of Port Townsend with least cost in mnind- ~ The City of Port Townsend may use our Balance Watch service,which draws funds from another designated account to prevent an overdraft from occurring. |fthe service is needed to avoid an overdraft,a single transfer per day,per account,is made ata cost mf$1O.00. This fee can be run through Analysis. xuoup Bank Proposal for Banking Services:City vf Port Townsend Page 23 July 11.001^ C0wp|oemTmL Resolution 14-051 /,x6ibit A Page 30Y/88 11 BANKING SERVICES • An established credit line may be used to advance funds to cover any overdraft. The daily amount of overdraft interest equals the amount of the overdraft times the current prime rate divided by355. Overdraft interest=amount of overdraft X current prime rmte/3G5 • The City of Port Townsend may choose o per item overdraft charge. K|tsmpBank clears checks ona numerical check number basis. The current per item charge is $32.00,and any fees may be run through Analysis. K. Errors and Adjustments: 1. Describe your adjustment process for resolving deposit discrepancies. Our transactions are run through a teller capture system which scans, reads,and electronically submits the legal and courtesy amounts on every item that runs through the scanning device. Deposited items are reviewed as they are being processed to identify when the transaction is out of balance.A deposit adjustment will be made to correct the transaction. Deposit adjustments are mailed out the same day as the transaction is processed. 2. At what dollar amount do you write off discrepancies? All discrepancies of any amount will be appropriately corrected to the account. 3. Do you adjust the deposit amount or process an adjusting debit orcredit? Unless specifically directed to change a deposit amount,Kitsap Bank processes a correction either as a debit or a credit,which would show as a separate transaction on your statement. The deposit posts as its original amount,with a correction entry immediately following,listed my"deposit adjustment.° L. Describe how inquiries requiring research and adjustments are handled by the institution. What fees are associated with research in the event of banking error/customer error? Are there established turn- around times for research and adjustment items? If yes, please specify. 0tsap Bank retains high-resolution images of every item processed through our system for seven years. Research requests can be made in person at the branch,by phone or through secure messaging through our Premium Online Banking Cash Management system. Typically there are nm fees in relation tw common adjustment errors. More elaborate and/or time consuming requests such osa records subpoenas,or public records requests would incur our normal research fee of$50.00 per hour. M. 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 sn that they may be presented a second time prior to being charged back. Deposited items that are returned NSF or uncollected funds will automatically be processed e second time,asrequested. The fee for a re-deposited item and acher8eback item is$10.00. Both mtoap Bank Proposal for Banking Services:City o,Port Townsend Page 24 July 11.uo14 oowp|oEwTmL Resolution 14-051 Exhibit A Page 31 of 88 II. BANKING SERVICES QUESTIONS/STATEMENTS of the fees will be applied to your account analysis statement and is typically offset by the earnings credit allowance. If the item is a chargeback,the City will receive a confirmation notice of the transaction as well as a copy of the item as an Image Replacement Document(IRD). N. Security/Protection Measures: What security features are in place to minimize the risk of unauthorized transactions? How are the City's assets restored to the City in the event of a security breach or hacking incident?What is the timeline for restoration of City funds in the event of an unauthorized transaction? Kitsap Bank's Premium Cash Management Online Banking service is designed with security in mind. We offer the following security features and encourage customers to utilize as many as possible: • Complex(strong) user ID and passwords • Password changes are required every 90 days • Company administrators can choose to maintain two(2)sets of login credentials;one set with limited rights to view and perform daily transactions,and the second set with full rights to be used sparingly only to establish or maintain users • New users that are established on the system will be in a disabled status until an authorized company user contacts Kitsap Bank to activate the user • Anti-Phishing phrase-displays on our login screen to verify you are on our valid website • Secure Access Code is required to register your browser-delivery is available by email, phone or text(can be restricted to phone only) • Transaction level authorizations via Secure Access Code can be enforced for ACH,Tax Payment and Wire transactions • Dual Approval(secondary authorization)can be enforced for ACH,Tax Payment and Wire transactions • Out of band (facsimile or secure message)transmittal form for verification of ACH,Tax Payment and Wire transactions • Transaction, Balance and History Alerts to email,phone or text—examples: (a)alert me when an ACH,Tax Payment or Wire transaction has been drafted;(b)alert me when the balance in my account is greater than/or less than my threshold amount;(c)alert me when a debit/credit transaction greater than/or less than my threshold amount clears. • Security Alerts to email,phone or text(15 different mandatory and optional security alerts are available)-examples: (a)alert me when a valid password is submitted; (b)alert me when the forgotten password process is attempted successfully(or unsuccessfully); (c) alert me when my password is changed. • Secure Messages—send and receive messages securely to Kitsap Bank staff In addition,Kitsap Bank utilizes a state-of-the-art Fraud Monitoring system to assist us in identifying online behavior or transactions that would be considered out of the ordinary for the City of Port Townsend. In the unfortunate event of a security breach or hacking incident,Kitsap Bank would work closely with the City of Port Townsend, law enforcement and FinCEN (Financial Crimes Enforcement Network for the United States Department of Treasury),if warranted,to research and resolve the situation as quickly as possible. Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 25 July 11,2014 CONFIDENTIAL Resolution 14-051 Exhibit A Page 32of88 ||' BANKING SERVICES QUESTIONS/STATEMENTS O. Service enhancements: Describe any enhancements, technological or otherwise, that we should consider to improve operational or cash management efficiencies. Merchant Services Accepting credit cards osaform of payment will aid The City of Port Townsend in managing cash flow and mitigating risk to optimize the working capital and financial liquidity of the City.To promote consumer usage and avoid excluding any specific card holders,card acceptance includes Visa,MasterCard, Discover,American Express,and Debit. Kitsop Bank's True Next Day Funding service allows you to optimize the entire business day for processing. The gross funds are deposited the following business day.Additionally,we provide a simplified monthly merchant statement,which includes all card types and transaction details. For clients with Merchant Services needs, Kitaap Bank provides a dedicated Merchant Services Specialist.Your Specialist, Leslie Carmichael,will work personally with the City to provide solutions customized to meet your needs,help improve and manage cash flow,reduce expenses, and protect against fraud as the municipality grows. K|tsap Bank currently assists multiple municipalities in accepting credit cards msa form of payment with comprehensive, real time,web-based reporting following the rules and regulations of Payment Card Industry (PCI)Compliance.The City may choose to accept credit cards for the payment of fines,penalties,rents,rates,taxes,fees,assessments,parking, utilities,permits,and more.With a multitude of processing options,we'll help you determine which platform (Ecommerce,Virtual Terminal,Terminal,and Point of Sale)will best meet your needs and provide you with pricing information. VVebsite with Payment Feature Example Town e cloy HWA Kitsxp Bank Proposal for Banking Services:City m Port Townsend Page 26 July 11.uo14 cOwnoEmTmL Resolution 14-051 Exhibit A Page 33Yf88 U|' BANKING SERVICES QUESTIONS/STATEMENTS Remote Deposit Capture K|tsap0anh"s Remote Deposit Capture service, Deposit Connect,allows our business and public clients to utilize a desktop scanning device to capture the images of the payment checks they receive. Your deposits can then be electronically transmitted to Kitsap Bank,eliminating the need for daily deposit trips. The cost to the City would be the rental fee qf the scanning device, which varies based upon the equipment chosen. Lockbox Services Our Lockbox Services are available to automate the processing of your customers' payments. When a payment accompanied by a remittance document is mailed to the City,our Lockbox Service isa cost-effective alternative tm manual processing. Customer payments may bedirected to a designated Post Office Box,and payment processing will then be completed by Kitsap Bank staff' Reconcilement and remittance information is then provided directly to the City. We would be happy to discuss with the City the various payments you receive,to see if the Lockbox Services would be beneficial. At that time,we can discuss the fees,which are based on specific processing needs. Account Reconciliation Kitsap Bank offers a simplified Account Reconciliation service with a direct file export through the Positive Pay module of our Premium Cash Management Online Banking service. Mobile Banking Kitsap Bank offers the ability to approve outgoing ACH,Tax Payment or Wire requests while on the gu using our Mobile Authorizations and Mobile Banking. CD/DVD of Digital Images Kitsap Bank can also provide a CD or DVD containing digital images of both fronts and backs of cleared checks. CDs or DVDs can be created for whatever time period the City deems appropriate (xxaeb|y, monthly,etc.). The C0or0V0 can contain the images mf multiple accounts,\fdesired. Viewing software is included on each disc. Search criteria includes check serial number,amount, and clearing date. Benefit Banking Kitsap Bank is pleased to offer Benefit Banking at no cost to the City of Port Townsend. Benefit Banking\yo special interest bearing checking account program for City employees,which will add significant value tw their financial services. Our Benefit Banking program has substantial discounts on commonly used items such as Safe Deposit Boxes and includes free personal and Cashier's Checks. The program also includes opportunities to earn incentives and better interest rates wn selected deposit products and loans. UVa look forward to sharing additional details of this program with the City pf Port Townsend. Kitsmp Bank is pleased to offer this atno cost ason added benefit to City employees. Health Savings Accounts At Kitsap Bank,we pride ourselves in meeting the needs of our community by offering products, such as the Health Savings Account(HSA),which can help our friends and neighbors manage their finances effectively. If you offer City employees a high-deductible healthcare plan,the funds they deposit in an HSA can be used for qualified medical expenses(services typically covered by their rne6|ca| plan)including office visits,emergency room services, hospitalization,prescriptions, mtson Bank Proposal for Banking Services:City m Port Townsend Page 27 July 11.uo1* CDwF|nsmTmL Resolution 14-051 /x6ihit A Page 34gf88 UK. BANKING SERVICES QUESTIONS/STATEMENTS eyeglasses,contacts,non-cosmetic dental procedures,and more. VVe offer the convenience of banking in person at one of our many branches,online,by mail or by telephone. We'll make it easy for your employees to establish a new HSA,or transfer an existing one by coming twyour office to explain how the HSA works and complete any necessary paperwork. This program is offered otno cost tm the City oY Port Townsend. P. Discuss your use of the internet in providing services to your municipal/business customers. Describe the security measures in place to safeguard the City's Assets. Kitsap Bank's Premium Cash Management Online Banking service is designed with security in mind. We offer the following security features and encourage customers to utilize as many as possible: ° Complex(stron8) user|Q and passwords * Password changes are required every 8Ddays � Company administrators can choose to maintain two(2)sets oflogin credentials,one set with limited rights to view and perform daily transactions,and the second set with full rights tmbe used sparingly only tm establish or maintain users * New users that are established mn the system will 6einadisabled status until an authorized company user contacts Kitsap Bank to activate the user � Anti-Phishing phrase-displays on our login screen to verify you are on our valid website ° Secure Access Code is required to register your browser-delivery is available to email, phone or text(can be restricted tm phone only) w Transaction level authorizations via Secure Access Code can be enforced for 4CH,Tax Payment and Wire transactions � Dual Approval (secondary authorization)can be enforced for ACH,Tax Payment and Wire transactions • Out of band(facsimile or secure message)transmittal form for verification of ACH,Tax Payment and Wire transactions • Transaction,Balance and History Alerts to email,phone mr text—examples: (a)alert mne when an ACH,Tax Payment or Wire transaction has been drafted;(b) alert me when the balance inmny account is greater than/or less than mny threshold amount;(c)alert mme when a debit/credit transaction greater than/or less than my threshold amount clears. • Security Alerts to email,phone or text(15 different mandatory and optional security alerts are available)-enamp|es: (a)alert mne when avalid password is submitted; (b)alert me when the forgotten password process isattempted successfully(or unsumcessfu||y);(c) alert nme when nny password ischanged. • Secure Messages—send and receive messages securely tmN|tsap Bank staff In addition,Kitsap Bank utilizes a state of the art Fraud Monitoring system to assist us in identifying online behavior or transactions that would be considered out of the ordinary for the City of Port Townsend. Kitsop Bank Proposal for Banking Services:City m Port Townsend Page 28 July 11.2ow onwnosm7mL Resolution 14-051 Exhibit Page 35 of 88 11. BANKING SERVICES QUESTIONS/STATEMENTS O. 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 tn offer and within what time frame. Kitsap Bank|smforward-thinking community bank. VVe are small enough to offer superior customer service and make quick decisions,yet large enough to offer our customers competitive rates and technological|y-advancedservices. Our current product and service offerings are robust and exceed many of the standard services available today,and we continue to look at new products and services that may enhance our customers'banking experience. VVe are\n touch with the needs of our customers and what's on the horizon\n our industry. A number of our senior leaders sit on advisory boards and innovation committees with our vendor partners,including our online banking, merchant services and core banking partners. R. Disaster Recovery: 1. Describe your institution's formal disaster recovery plan. Kitsap Bank has developed extensive plans and infrastructure to support business continuity/disaster recovery processing. Plans include redundancy of critical systems,annual reviews and testing to satisfy all regulatory requirements. Kitsap Bank has five branches|n ]effersmn/[|e||ann counties,another ten in Kitsap County,and m branch network that spans six counties. K|taap Qonh has a large network of facilities to ensure the City's smooth operation during adisaster. Z. How quickly will back-up facilities be activated? Kitsap Bank has established timelines relating to business continuity/disaster recovery situations. Depending on the system(s) impacted,and the severity of the event,redundant systems can be accessed and alternative processes put|n place asneeded. 3. Describe your institution's operating capabilities to assist the City in the event of a disaster or declared emergency. In the event of an emergency,we will do everything possible to assist the City. Assistance to the City may include ACH and Wire processing,through manual or alternative processes. S. Implementation Plan: Provide a detailed description of the implementation process, including testing, a sample implementation schedule, and names and titles of personnel who would help the City in the conversion process. Kitsap Bank utilizes an Implementation Plan to manage the task,responsibility,and time frame of implementing services wrproducts. Typically,the implementation process begins with an understanding of who|y involved \nthe process and identifying all responsible personnel. K|tsep Bank utilizes a team of experts to ensure implementation occurs with the least amount of impact on resources and staff. At our first implementation "Kick-Off"meeting,we will determine the primary contacts for the relationship and the account services,and establish a weekly conference call to discuss the implementation process and provide status updates for outstanding items. Asxue progress with Kitsap Bank Proposal for Banking Services:City m Port Townsend Page 29 July 11,2014 oowp|oewTmL Resolution 14-051 Exhibit A Page 30of88 U BANKING SERVICES the implementation,the frequency of the calls will be determined bV our progress and desire mf the conversion team. �V KIJSAP BANK. Commercial Payments'Implementation Plan Task Responsible Party Personnel Responsi �Level Effective Date Notes Meet to determine services specifics, Kitsap Bank/City and other setup info Provide-Cash Management Kitiap Bank Agreement and Service Addedurns Submit signed agreements and Kitsap Bank supporting documents to OLS I General Account Services Articles of incorporation and city pertinent signer information Open ODA accounts Kitsap Bank Provide specification sheets and Kitsap Bank signaturo cards SubmR SignatUre card/check specs City Submit Anaiysi5 setup KitsapBank Order enclorment stamps,deposit Kitsap Bank ficRets,supplies Depository Sawkes Indpritify desired depository Kitsa p Bank/City Provide vo�dLd sample checks for T. List the address and hours of operation at your nearest branch office and also the hours of operation for non'branchsen/ices. Kitsap Bank has three full services branches in Jefferson County,as well as a commercial loan office in downtown Port Townsend; more locations than any other financial institution in our region'Our non-branch services,such as online cash management systems orremote deposit functionality,are available 24 hours per day and update in real time. Below are the addresses, hours of operations and after-hours facilities for our Jefferson County locations;each of which has an on-site ATM and night depository,including our downtown loan office: Port Townsend Branch Dominic Svmrnich,Branch Manager 2313E Sims Way, Port Townsend,0/&B@368 Hours:9:O0amn-G:00pm Monday through Thursday,9:OUam-6:OOpmFriday Port Townsend Commercial Loan Office Susan Whitmire,Vice President&Commercial Loan Officer 215 Taylor Street, Port Townsend,VV&9836# Hours: 9:DOamn-G:OOpm Monday through Friday mmav Bank Proposal for Banking Services:City v,Port Townsend Page 30 July 11.un1^ oowp|nsmnxL Resolution 14-051 Exhibit A Page 3 70f88 SERVICES IL BANKING QUESTIONS/STATEMENTS Port Had|mckBranch Jennifer 0|eis,Branch Manager 68 Oak Bay Road, Port Hed|uck,VVA88@3S Hours: 9:O0arn-G:UOpnn Monday through Thursday,9:ODann'6:OOpmFriday Port Ludlow Branch Dianne Cranston, Branch Manager 74 Breaker Lane, Port Ludlow,WA 98365 Hours: 9:O0amn-G:OOpmn Monday through Thursday,g:0Oemn-S:3DpmnFriday U. Discuss any special conditions, other fees, other services,or deviations from the requested scope. There are no special conditions, other fees, other services, or deviations from the requested scope. Kitsup Bank Proposal for Banking Services:City m Port Townsend Page 31 July 11.uo1* Cowr|oswTmL Resolution 14-051 Exhibit A Page 38 of'88 III. EVALUATION PROCESS Proposals will be evaluated by a committee of City staff. Evaluations will be based on criteria outlined herein which may be weighed 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. R. 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; 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; 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 among its peers and the associated credit quality ratings. C. Fees As proposed plus costs of transition:the total cost of changing financial institutions. D. References E. Community Presence F. Interviews and Site Visits The City may conduct interviews and site visits as part of the final selection process. Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 32 July 11,2014 CONFIDENTIAL Resolution 14-051 1,"xA@kA yug, 39 of89 M. EVALUATION 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. Credit Facilities Kitsap Bank stands ready to provide credit facilities to the City at market competitive rates for both short term cash flow management and longer term bond financing. The Bank and its staff have many years of experience underwriting private placement bonds for cities throughout Washington,often at costs favorable tm traditional public debt issuance. QV being the sole debt purchaser,voa can work with the City to provide tailored structures specifically for the project being financed (e.g.,credit lines, single note draw down construction financing with term financing at end of construction, LID assessment bonds, pre-payable debt,etc'). Any financing provided byK\tsap Bank would ba compliant with Washington State and IRS filing requirements but exempt from new SEC,FINRA and &0SRB disclosure requirements. Taking PaVments Kitsap Bank can provide the City with the ability to take payments through the ACH module. Loomis SafePoint SafePo|nt, 1U0%guarantee uf validated funds, |sa product offered by Loomis armored car service. Throughout each business day,staff deposit cash into a safe,and in return receive a receipt. The following business day,Kitsap Bank credits the client's account for the prior day's deposits without the funds being picked up. Loomis picks up and verifies the cash on a weekly basis. The Loomis 8afePoint service includes: • The safe • Installation and training • 100%guarantee mn the validated funds • Transportation • Reporting capabilities through"Loomis Direct" • Wireless modem connection • Universal emergency power source If the City is interested in this service, Kitsap Bank can provide fee information. mmap Bank Proposal for Banking Services:City m Port Townsend Page 33 July 11.0014 CowF|osmTmL Resolution 14-051 Exhibit A Page 40Yf88 IV. STATEMENT OF FINANCIAL INSTITUTION QUALIFICATIONS 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 uf Financial Institution KityepQanh 2. Business Address 2313 E'Sims Way,Port Townsend,VVA9#3G8 l Business Phone Fax No. 360-386-0123/360-385-1293 4. E-mail Address 6svornich@hitsapbank'mmnm 5. How many years has your institution been in business under its present name? 106 years 6. General character of services provided by your institution: Commercial, personal and municipal banking services 7. Do you have a City of Port Townsend registration on your Washington State Master Business License? Number 006747 8.State of Washington Department of Revenue U0| No. 182002553 9. Federal IRS Employer Identification Number: 91-0283150 10. | certify that the institution: • is capable nf providing the services as outlined in this proposal, and • will comply with the rules and regulations outlined by the Revised Code of Washington, City of Port Townsend Municipal Code, and the Washington Public Deposit Protection Commission, and other applicable laws and regulations. City of Port Townsend Banking Services Kitsap Bank Institution Name Authorized Signature mmap Bank Proposal for Banking Services:City of Port Townsend Page 34 July 11.en1* CONFIDENTIAL Resolution 14-051 Exhibit A Page 41 of 88 V. EXHIBIT A: SCOPE OF SERVICES The City of Port Townsend 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 three year period.At the City's option, 1 (one)three-year extension will be permitted with the same terms and conditions of the original contract or as amended. The following is a list of mandatory services the City requires of its financial institution: • Checking Accounts ACH • Debit Services • Direct Deposit for Payroll • Banking Supplies • Overdraft protection • Data Equipment Compatibility • ACH reporting • On-line balance reporting • On-line Image Retrieval • On-line Stop-pays • On-line wire transfers • Excellent customer service &response Port Townsend 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: • Automatic Account Reconciliation • Payment of Financial System Upgrades and Fees through use of analysis • Positive Pay on Checking accounts • Merchant Card Services • Sweep Accounts • Purchasing Card services • Image Check Deposit Services Required Checking Accounts:The City currently utilizes the following checking accounts: 1) the primary checking account; 2) the accounts payable account; 3) the payroll check account; and 4) an imprest checking account for small treasury expenses. The institution will furnish the City with additional checking accounts as needed. NSF checks must be processed twice before being returned to the City. The basic checking account services should at least consist of: Kitsap Bank will establish Commercial Checking Accounts for the City's General Account and a Zero Balance Account for the Claims and Payroll Account per the request,as well as additional accounts that may be needed by the City such as,the Travel Advance Account and City Attorney Petty Cash account. All of the City's accounts will be set-up on Kitsap Bank's Account Analysis system to calculate an Earnings Credit on average monthly balances to offset accumulated bank charges. Deposited items that are returned NSF will automatically be processed a second time,as requested. Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 35 July 11,2014 CONFIDENTIAL Resolution 14-051 l�6ibitJ Page 42Y/&9 V. EXHIBIT A: SCOPE OFSERVICES • Provide month-end statements by the 10th day of the following month and provide statements to state auditors upon request; kAonth-endomcmuntstatemnentoxv|||beprnvidedbythutenth (lUth)dayofthnfo||pxuinBnmmnthor you may opt to obtain your month-end e-Statement from our Premium Online Cash Management System within 3 business days. Any additional statements will be provided to various auditors at the City's request and authorization. • Provide electronic check image retrieval monthly on CD, paper, or online, including any necessary software; Electronic images of cleared checks are typically provided daily through our Premium Online Cash Management services. |f the City requires aC0 for electronic images,a CQ will beprovided monthly. The[0 will include the necessary viewing software. • Provide individual and consolidated monthly account analysis for all accounts by the 115th day of the following month; A monthly consolidated Account Analysis statement will be provided by the tenth (loth)day mfthe month. The first pages of the statement show the consolidated position for all accounts included in the Account Analysis relationship,followed by individual pages for each account. Measeoee the enclosed Account Analysis statement sample report inAppqricli,x A. • Provide an on-line wire transfer system for transferring money to other institutions, along with appropriate security levels for wire transfer initiations and approvals; Nitsap Bank's Premium[ash Management Online Banking System Wire Transfer module provides for the online initiation of outgoing domestic and foreign repetitive and non-repetitive wire transfers. Secondary Authorization,which requires an additional Cash Management Service user with appropriate authority to approve outgoing wire requests,can be enforced. • 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, by7:00a.m. each business day; Kitsap Bank's Premium Cash Management Online Banking System provides Ledger,Collected, Current,Available and Accessible Balance information for accounts set-up on the service. Detail transaction information of all previous day debit and credit activity is also provided. Balance and transaction detail is available well before 7:00 a.m., PST.Current day pending transactions are also displayed,including current day deposits,City of Port Townsend checks that have been presented at a Kitsap Bank branch for payment,wire transfer and ACH transactions. • Provide an on-line reporting system that shows current day ACH credits and debits, by 7:0Ua.m. each business day; Kityap8ank provides current day&CH transactions that are displayed prior to 7:O0am, PST each business day. Kimav Bank Proposal for Banking Services:City m Port Townsend Page 36 July 11.xo1* oownoswTw`L Resolution 14-051 Exhibit Page 43Yf88 V. EXHIBIT A: SCOPE OF SERVICES • Provide for on-line stop-pay look-up and notification; Stop payment requests may be initiated and viewed online via our Premium Cash Management Service. • Provide a means to electronically pay all payroll taxes (for example: Express Tax, Easy Tax, or an 800 phone line); The City can utilize the Premium Cash Management Online Banking System EFTPS Tax Payment module to initiate online Federal and State tax payments via ACH. There bno additional fee associated with this service. • Provide support in answering questions, troubleshooting problems, and resolving issues in m prompt manner; Please contact Michael Gordon,Senior Vice President and Commercial Payments Manager,or Dominic Svornich, Port Townsend Branch Manager to resolve any outstanding issues. • Provide means to inquire about cancelled checks and stop payment on checks upon proper authorization. Inquires about canceled checks,stop payments,and other questions about your account activity, are best directed to Kitsap Bank's Customer Service department between the hours of 8:00 a.m.- 5:O0p.m' PST each business day. ACH Debit Services: The City processes direct deposits of payroll twice a month. Other miscellaneous ACH transactions include as debt service, retirement fund transfers,and accounts payable payments. Kitsap Bank provides for the initiation of ACH debit and credit transactions via our Premium Cash Management Online Banking System 'ACHmodule. ACH credits can ba initiated for direct deposit of payroll and other disbursement applications. ACH transactions may he initiated by creating a ~batch' within the ACH module,or an ACH or Excel formatted file can be uploaded to K|tyop Bank for initiation via the ACHmwdu|e' Direct Deposit for Payroll: Port Townsend offers and encourages direct payroll deposit for its employees. The City pays its employees twice a month on the 5m (dravx) and the 28th of the month. On an average payroll, 130 employees are paid with approximately 11U receiving direct deposit. Currently, the City transmits the payroll data to the institution via internet two business days prior to payday. Deposits must be made into the employees' account by 8:00 a.m. on payday. Any deviation from these time limits must be stated in the bid. Any bidder 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 tuthe pay date. We are therefore requesting bids on both a one-day and two-day turnaround. We are interested in what the deadlines for transmission are for both situations. mtsup eonx Proposal for Banking Services:City pf Port Townsend punn 37 July 11.uo14 C0wp|mewT|A| Resolution 14-051 Exhibit A Page #o/&9 V. EXHIBIT A: SCOPE OF SERVICES 4CH credit files(direct deposit)should he transmitted prior to3:45 p.mn, PST. KVe advise that the files be presented two business days prior to the settlement date to ensure that funds are made available by the opening uf business on the settlement date. K|tsap Bank will allow the files tobe sent one working day prior to the settlement date;timely availability at all financial institutions,however,cannot be guaranteed in this case. Also,it should be noted that even though a financial institution receives the ACH credit transaction prior to 8:00 a.m., PST on the settlement date, it is up to them to make this transaction visible and available tothe employee. It is possible that afinancial institution will not make the transaction visible and available until after close of business;this is out of Kitsap Bank's control. Kits*p Bank's ACH Module fee is the same for both one-day and two-day turnaround—the deadlines for transmission in both situations are the same—prior tn3:45p.m, PST. Merchant Services:The City does not currently accept online, phone,or over-the-counter credit or debit card payments.The City may desire to add this capability, as well as the ability to process on-line e-commerce transactions.As part of the proposal, provide details on implementation and maintenance cost for this service. Kitsap Bank's Merchant Services provides a simple and convenient way for your customers to make payments with their Visa,American Express, MasterCard, Debit or other popular payment cards. Card processing with Kitysp Bank|ncertified PC|CummpUant and offers true next day funding with the gross funds deposited the following business day. You will enjoy access¢m your detailed account information with our real time web-based reporting system. We've included our pricing and recommendations be|mvv Vww KITSAP BAN w maw nvmft Wm&WZ4/1d"Mh Merchant Pro pasal/Ccwn pafison Chart dit H-1 APPROXIMATE NE'r EFFECT mmov Bank Proposal xvaonmnoanmices:ou m Port Townsend Page 38 July 11.uo10 oomF|oswT|AL Resolution 14-051 Exhibit A Page 45 of 88 V. EXHIBIT A: SCOPE OF SERVICES 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, miscellaneous checks, and endorsement stamps for each location.The cost of such supplies shall be charged against the City's earning credits. In the course of setting up all of the accounts and services for the City, Kitsap Bank will work with City staff to purchase all necessary locking bank bags,endorsement stamps and deposit tickets. We will also purchase a case of 500 tamper proof plastic deposit bags,and will provide you with a variety of coin rollers. As part of implementation, Kitsap Bank will purchase the City's initial 2,000 checks. The City will be responsible for the cost of subsequent check orders. Trust and Escrow Agent Services:The City may require retainage accounts be maintained for contractors choosing to place retainage funds in an interest bearing account. Kitsap Bank offers retainage accounts. Retainage investment accounts are opened in compliance with escrow instructions. Retainage investment accounts are limited to MarketFund, PremiumFund, Savings accounts or Time Deposit Certificates(variable rate)in order to add funds if applicable. Overdraft Protection: Although the City will attempt to minimize daylight and overnight overdraft situations, it recognizes that there are times these situations will occur. (Note: an overdraft has not occurred within current institutional memory). We have numerous mechanisms to address the instance of an overdraft.Should the City obtain a line of credit through Kitsap Bank,that account can be set up to advance automatically during nightly processing to cover those items.Additionally,we can link any operating accounts to other reserve deposit accounts to sweep funds automatically. In the highly unlikely event of a hard overdraft on any of the City's accounts,we would advise the appropriate personnel,and any applicable fees would be assessed against the City's earnings credit. 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 to be included in this proposal. Any costs associated with automated data and equipment should be identified on the Fee Schedule in Exhibit B. The equipment and data compatibility for Kitsap Bank's Premium Cash Management Online Banking System,which includes automated wire transfer,ACH Debits and Credits,balance reporting are accessed using the following recommended minimum user hardware and software configurations: • Standard PC or Mac(Pentium I1/11 GHz processor or higher 1500 Mb RAM or greater) • Microsoft®Windows 98/ME/2000/XP/Vista or Mac OS-X • Cable, DSL or ISDN Internet connection • Preferred web browser for commercial users • Internet Explorer 6.0 or higher • Firefox 2.0 or higher • Security,anti-virus and Spyware updates applied • A valid e-mail address and telephone number Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 39 July 11,2014 CONFIDENTIAL Resolution 14-051 Exhibit A Page 46Y/&Y V. EXHIBIT A: SCOPE OF SERVICES Credit Cards are currently not accepted as a form of payment with the City of Port Townsend. Therefore, compatibility,which generally|s not an issue,will bediscussed and considered during a consultation with your Merchant Services Specialist and the City staff. 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 that 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 bid submittal will identify all secondary providers. Kitsap Bank provides all of the services the City has identified in this RFP. Kitsap Bank Proposal for Banking Services:City m Port Townsend Page 40 July 11.001^ oomr|nEwTmL Resolution 14-051 Exhibit A Page 47 of 88 VI. EXHIBIT B: FEE SCHEDULE Item Unit Estimated Monthly Monthly Explanation Price Volume Cost Depository Services: Account Maintenance 10.00 4 40.00 Banking Center Deposits 0.20 22 4.40 General Checks Paid 0.15 257 38.55 Deposited Items 0.09 4,330 389.70 Deposited Items Returned 10.00 6 60.00 Reject Checks Paid 2 Deposit Coverage 0.1250 973 121.63 Debits Posted-Electronic 0.10 28 2.80 Credits Posted-Electronic 0.05 21 1.05 Commercial Deps-Cash Vault: Curr/Coin Dep/$100-Bkg Ctr 0.0012 272 32.64 Branch Deposit Processing Fee 0.00 21 0.00 Zero Balance Accounts: Lead Account 10.00 1 10.00 Subsidiary Account 10.00 1 10.00 General ACH Services: ACH Optional Rpts-Electronic 0.00 0.00 Online Activity Included ACH Return Item 32.00 1 32.00 ACH Monthly Maintenance 20.00 1 20.00 ACH Process Run 0.00 2 0.00 ACH Orig Transit Items 0.09 243 21.87 ACH Received Items 0.09 68 6.12 ACH Received Addenda Item 1.00 15 15.00 ACH Item Adjustment Report 0.00 0 0.00 ACH Returned Item 3.00 0 0.00 Original ACH Returned/NOC Fax 3.00 0 0.00 Wire Transfers: Wire Module Maintenance Svcs 20.00 1 20.00 Incoming Domestic Wire 14.00 1 14.00 Outgoing Wire 20.00 - 0.00 Wire Advice-Mail 0.00 0.00 Delivery Method Online Services: Online Service Maint Fee 15.00 1 15.00 Previous Day Per Item Detail 0.00 155 0.00 Previous Day Per Item Summary 0.00 249 0.00 Token Maintenance 0.00 3 0.00 Not Offered Book Transfers 0.00 3 0.00 Stop Payment Monthly 0.00 1 0.00 Maintenance Stop Payment Items 10.00 1 10.00 Online Only Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 41 July 11,2014 CONFIDENTIAL Resolution 14-051 Exhibit A Page 48 of 88 VI. EXHIBIT B: FEE SCHEDULE Other Monthly Maintenance-Image 5.00 1 5.00 Other Monthly Maintenance- Positive Pay 0.00 1 0.00 Other Monthly Maintenance-Wire Services 0.00 1 0.00 Image: Image Archive 0.00 0.00 Image Maintenance—Direct 0.00 1 0.00 Image Archive per Check Image 0.00 255 0.00 Image Archive CD Rom 30.00 1 30.00 Account Reconciliation Services: ARP Trans Output File 0.00 1 0.00 Positive Pay Maintenance 50.00 1 50.00 Positive Pay Items 0.03 255 0.00 Positive Pay Exceptions 0.00 24 0.00 Positive Pay Reconciliation Report 0.00 1 0.00 Transmission Input 0.00 13 0.00 Online Banking Module Supplies: Endorsement Stamps Initial Order Coin Wrappers per 1000 As requested Initial Order Deposit Slip Books (2 part carbonless) As requested Initial Order Plastic Bank Bags per 100 Initial Order(500) Checks 2000 Initial Order Overnight Overdraft Rate Daylight Overdraft Rate Your bank fee/discount rate Other Items Not Mentioned Research Inquiries 50.00 Per Hour Please include any additional relevant charges for these or other requested services Remote Deposit Capture 150.00 50.00 CD Per Image Fee 0.0150 Notes or Item Description: Formulas: ® Daylight Overdraft Formula Daylight overdraft(also called intraday overdraft)transactions occur when items processed against the account exceed the customer's available balance(calculated as: ledger balance+/- today's activity-holds-float-online float=account available balance)and are repaid by a credit to the account prior to the end of the banking day. If the customer's end of day balance results in a positive available balance at end of day,an overdraft fee will not be assessed for each item that results in a negative available balance. Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 42 July 11,2014 CONFIDENTIAL Resolution 14-051 Exhibit Page 4yof&Y V|. EXHIBIT B: FEE SCHEDULE • Overnight Overdraft Formula Overnight overdraft transactions occur when items processed against the account exceed the customer's available balance(calculated as: ledger balance+/-today's activity-holds-float- online float=account available balance)and are not repaid by a credit to the account prior to the end of the banking day. |f the customer's end of day balance results ina negative available balance at end of day,an overdraft fee will be assessed for each item that results in a negative available balance. • FDIC Insurance Formula FDIC Insurance|s calculated at$O.1350 for every$1,0UOof the Investable Balance(calculated as: collected balance less Federal Reserve Requirement of 1O.00%ofcollected balance less deposit interest paid|fapplicable. • Service Charge Credit Formula Earnings Credits are calculated using the Investable Balance(calculated as: collected balance less Federal Reserve Requirement of 10.00%of collected balance less deposit interest paid if applicable) multiplied by the current Earnings Credit Nate. wxoan Bank Proposal for Banking Services:City m Port Townsend Page 43 July 11,2014 opwp|oEwrmL Resohition 14-051 Exhibit A Page 50 of 88 VII. SIGNATURE PAGE The undersigned, an institution or firm maintaining branch/office operations within the City limits of Port Townsend, Washington, submits the following proposal for the City's banking services for the period of March, 2014 through March 31, 2016. Authorization: i �,� President/Chief Operating Officer Authorized Signature Title Anthony M.George July 11,2014 Printed Name Date Kitsap Bank 360-385-0123 Institution Name Phone Number 2313 E.Sims Way 360-385-1293 Mailing Address Fax Number Port Townsend,WA 98368 City,State,Zip Dominic Svornich 360-385-0123 Contact Name, if different from above Contact Phone Number Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 44 July 11,2014 CONFIDENTIAL Resolution 14-051 Exhibit A Page 51 of 88 VIII. EXHIBIT C: SUBCONTRACTOR LIST Subcontractor List No subcontractors are utilized by Kitsap Bank for the scope of services presented in this proposal. Kitsap Bank Proposal for Banking Services:City of Port Townsend Page 45 July 11,2014 CONFIDENTIAL Resolution 14-051 Exhibit A Page 52 of 88 / Account Analysis Al AFTSAP BANK Relationship Summary May 2014 Direct inquiries to: Account Nu-ber KITSAP BANK P.O.BOX 9 PORT ORCHARD WA 98366-0009 Settlement Period Erd May 2014 Statement Date June 9,2014 Page I oft 45 $20,000 1 Competition 5 Finalists Who will get the edg3? Visit www.kitsapbank.com/edg3-fund for the application and official rules Relationship S umn-ary Excess(Deficit) Account Number Account Name Investable Balance Balance (797) $67,500.42 ($509,041.68) (797) $149,425.37 $95,656.63 (797) 5 j28.60 $44,057.90 f/%iA'�/IlG/ f 1r' /f Ill o/%II f` � il/( (797 �fl� $0.00 ($21,821.48) f i If A%O 7'2I//flY95 Jt 2 54 39 $391,148.63) Balance S um-nary Average Ledger Balance $396,940.40 Less Average Float $68,879.96 Average Collected Balance $328,060.44 Average Negative Collected Balance $0.00 Average Positive Collected Balance $328,060.44 Collected Balance $328,060.44 Less Federal Reserve Requirement at 10.000000%of Collected Balance $32,806.05 Investable Balance $295,254.39 Investable Balance $295,254.39 Less Balance Required for Services $686,403.02 Excess/(Deficit)Balance ($391,148.63) Results Summary Analyzed Results Earnings Credit at 0.750000%of Investable Balance $188.07 Less Total Analyzed Fees $437.23 Total Analyzed Results ($249.16) Total Analyzed Service Charges This Statement $249.16 The Total Deficit Analyzed Result of$249.16 will be Charged to Account on 06/10/14.. Resolution 14-051 /,,'x6@it A Page 53Y/88 K�tsa p B a n k A CCOU ii it A0a�ysiSSLaterneraof' Defln�do0s Average Ledger Balance Average Ledger Balance is equal tuthe aggregate Ledger Balance divided by the number ofdays in the statement period for each account. The Average Ledger Balance for the relationship summary is the aggregate of this figure for each account. Average Float Average Float is equal tothe aggregate float divided by the number of days in the statement period for each account. The Average Float for the relationship summary is the aggregate of this figure for each account. Average Negative Collected Average Negative Collected is equal tothe Negative Collected divided by the number ofday in the cycle. The Average Negative Collected for the relationship summary is the aggregate of this figure for each account. Average Positive Collected Average Positive Collected is equal tothe Positive Collected divided by the number ofday in the cycle. The Average Positive Collected for the relationship summary is the aggregate of this figure for each account. Federal Reserve Requirement The percentage of the base balance that is required to be held in Igg e T h le;gg d e b subtracted from IN Balance. Makereman is Investable Balance ��m�� �� TH����m��[��e��d Ba|a����s����Federa| Reserve Requirement which is used to calculate the Earnings Credit amount. Balance Required for Service Based onthe Earnings Credit Rate, the amount of Investable Balance needed to totally offset Total Analyzed [harges. Excess/(Deficit) Balance The Excess/ (Deficit) Balance is the amount ofInvestable Balance above (excess) or below (deficit) the required balance to offset Total Analyzed Charges. Earnings Credit Rate The Earnings Credit Rate is the rate used tn calculate the Earning Credit. Earnings Credit The calculated amount based on applying the Earnings Credit Rate to the Investable Balance. Total Analyzed Results The results of comparing Total Analyzed Charges to the calculated Earnings Credit. If the Total Analyzed Charges are greater than the calculated Earnings Credit, the result is a net charge. If the Total Analyzed Charges is less than the calculated Earnings Credit, the result is a net credit. In the event of a net credit, the amount is not posted tothe designated account. Fee Based Results The total of the service charges for each service used that can not be offset by Earnings Credit. Rev 06.12 Resolution 14-051 Exhibit A Page 54 of 88 Account Analysis Relationship Summary Aw IF n May 2014 Acca.nt Nun-ter Settle-ent Period Erik May 2014 Staterent Date June 9,2014 Page 2 of 2 Service Detai I Service Description Volume Unit Price Total Fee Balance_Required Account Activity Checks 272 $0.1500 $40.80 $64,051.51 Deposit 16 $0.2500 $4.00 $6,279.57 Preauthorized Credit 242 $0.0500 $12.10 $18,995.67 Preauthorized Debit 61 $0.1000 $6.10 $9,576.34 Check Imge Per Item 59 $0.00 Check Imge Per Item 208 $0.0200 $4.16 $6,530.74 Account Analysis Maintenance Fee 4 $10.0000 $40.00 $62,795.60 Deposited Items 409 $0.0900 $36.81 $57,787.65 Cash Management Services Premium Cash Mgmt Service 1 $15.0000 $15.00 $23,548.35 Wire Module Cash Mgmt Domestic Wire Out 1 $10.0000 $10.00 $15,698.90 Cash Mgmt Wire Service 1 $20.0000 $20.00 $31,397.80 ACH Module Cash Mgmt ACH Service 1 $20.0000 $20.00 $31,397.80 Cash Mgmt ACH Originated Per Item 332 $0.0900 $29.88 $46,908.31 Cash Mgmt ACH Returned Per Item 1 $3.0000 $3.00 $4,709.67 Deposit Connect �t1°a%°rll %%rp ll fl%�/,llll'j� il ,r l o 0 Deposit Connect Pei [ osit p � H of I oiC�lf! r"; 7.75 $12,166.65 Deposit Connect Rent S(f��/, Fetrf �rr UO i ' 25.00 $39,247.25 11 Deposit Connect Servio �� , � 1 !, $50 00 11 0.00 $78,494.50 1riG/rr/ i IJ n/ 1'!I„ r Sweep Services Zero Balance Account 1 $10.0000 $10.00 $15,698.90 Line Of Credit Sweep 1 $25.0000 $25.00 $39,247.25 Balance Management Balance Mgmt Fee Per$1000 Led Bal 397 $0.1250 $49.63 $77,913.64 Other Services Incoming Wires 2 $14.0000 $28.00 $43,956.92 Total Analyzed Fees $437.23 $686,403.02 Total Fee Based Fees $0.00 Total Waived Fees $0.00 $1,569.89 in Investable Balances Offset$1.00 of Total Fees for all Analysis Based Services. 45 Resolution 14-051 Exhibit A Page 55 of 88 Account Analysis jam. � ITSAP BANK rt Nurk May 2014 ■ j Acca �r Direct inquiries to: Relationship KITSAP BANK P.O.BOX 9 PORT ORCHARD WA 98366-0009 StatEn- nt Date June 9,2014 Page 1 of 2 $20,000 1 Competition 5 Finalists Who will get the edg3? Visit www.kitsapbank.com/edg3-fund for the application and official rules Balance S ummary Average Ledger Balance $143,711.82 Less Average Float $68,711.35 Average Collected Balance $75,000.47 Average Ne ,#d Colley d Bala e $0.00 g f �I // 1 % P%1%%%%% Average Pot f ve Rolle f Balm $7500046 75 0 'ill/,,//�j, � 1 �� /'/%/I'��� �� �jil////�/ F0, $75,000.47 li �p t � $75,000.47 Collected Balan // ��r q / "11/ f L � j Less Feder%Jl1i%Iry/r„te ui i n-aGnt a'u 0 a%JO /%%of Co/%l(T19i/fi B, %1//%// $7,500.05 Investable Balance $67,500.42 Investable Balance $67,500.42 Less Balance Required for Services $576,542.10 Excess/(Deficit)Balance ($509,041.68) Results Summary Analyzed Results Earnings Credit at 0.750000%of Investable Balance $43.00 Less Total Analyzed Fees $367.25 Total Analyzed Results ($324,25) Total Analyzed Service Charges This Statement $324.25 The Total Deficit Analyzed Result of$324.25 was Transferred to Composite Account Service Detai I Service Description Volume Unit-Price Total Fee Balance Required Account Activity Checks 258 $0.1500 $38.70 $60,754.74 Deposit 14 $0.2500 $3.50 $5,494.62 Preauthorized Credit 172 $0.0500 $8.60 $13,501.05 Preauthorized Debit 43 $0.1000 $4.30 $6,750.53 Check Imge Per Item 50 $0.00 Check Imge Per Item 208 $0.0200 $4.16 $6,530.74 Account Analysis Maintenance Fee 1 $10.0000 $10.00 $15,698.90 Deposited Items 404 $0.0900 $36.36 $57,081.20 45 Resolution 14-051 Exhibit A png/ 56Yf88 K�L,;a�p �3aO� /�(,(���otjii,,itAr,ia�ys�sStat,-eR0erit,of DeffirlWorls Average Ledger Balance Average Ledger Balance is equal tn the aggregate Ledger Balance divided by the number ofdays in the statement period for each account. The Average Ledge, Balance for the relationship summary is the aggregate of this figure for each account. Average Float Average Float is equal tothe aggregate float divided by the number of days in the statement period for each account. The Average Float for the relationship summary is the aggregate of this figure for each account. Average Negative Collected Average Negative Collected is equal tothe Negative Collected divided by the number ofday |n the cycle. The Average Negative Collected for the relationship summary is the aggregate of this figure for each account. Average Positive Collected Average Positive Collected is equal tothe Positive Collected divided by the number nfday in the cycle. The Average Positive Collected for the relationship summary is the aggregate of this figure for each account. Federal Reserve Requi,e held in r,FIN 'I'PIP1 11111, ahtfrit is to be subtracted from x o Balance. Investable Balance —w—� ~� ver [aected Yo Federal Reserve Requirement which is used to calculate the Earnings Credit amount. Balance Required for Service Based on the Earnings Credit Rate, the amount ofInvestable Balance needed to totally offset Total Analyzed Charges. Exces,ADeficit) Balance The Excess/(Deficit) Balance is the amount of Investable Balance above (excess) or below (deficit) the required balance to offset Total Analyzed Charges. Earnings Credit Rate The Earnings Credit Rate is the rate used tn calculate the Earning [red it. Earnings [edk The calculated amount based on applying the Earnings Credit Rate to the Investable Balance. Total Analyzed Results The results of comparing Total Analyzed Changes to the calculated Earnings Credit. |f the Total Analyzed Charges are greater than the calculated Earnings Credit, the result is a net charge. |f the Total Analyzed Charges is less than the calculated Earnings Credit, the result is a net credit. In the event nfa net credit, the amount is not posted to the designated account. Fee Based Results The total of the service charges for each service used that can not be offset byEarnings Credit. Rev 06.12 Resolution 14-051 Exhibit A Page 57 of 88 Account Analysis KITSAP BANK,. Accan Nurter May 2014 Relationship StaterYBI Date June 9,2014 Page 2 of 2 Service Detail—continued Service Description Volurre Unit Price Total Fee Balance Required Cash Management Services Premium Cash Mgmt Service 1 $15.0000 $15.00 $23,548.35 Wire Module Cash Mgmt Domestic Wire Out 1 $10.0000 $10.00 $15,698.90 Cash Mgmt Wire Service 1 $20.0000 $20.00 $31,397.80 ACH Module Cash Mgmt ACH Service 1 $20.0000 $20.00 $31,397.80 Cash Mgmt ACH Originated Per Item 332 $0.0900 $29.88 $46,908.31 Cash Mgmt ACH Returned Per Item 1 $3.0000 $3.00 $4,709.67 Deposit Connect Deposit Connect Per Deposit 31 $0.2500 $7.75 $12,166.65 Deposit Connect Rent Single-Feed 1 $25.0000 $25.00 $39,247.25 Deposit Connect Service 1 $50.0000 $50.00 $78,494.50 Sweep Services Zero Balance Account 1 $10.0000 $10.00 $15,698.90 Line Of Credit Sweep 1 $25.0000 $25.00 $39,247.25 Balance Management Balance Mgmt Fee Per$1000 Led Bal 144 $0.1250 $18.00 $28,258.02 Other Services jNU%/Jl %f %% ff fT l(�i, l' %J;%1J%HJ f�, / /9 %i f Incoming Wires �, �/j % j��r, $1 C��Ja %y8.00 $43,956.92 g 1 f i, fir 1% �ay rr r Total Analyzed Fees f J%, 1 !l %, al +aE%ITII' ;11/Gil1� 7.25 $576,542.10 Total Fee Based Fees 0.00 Total Waived Fees $0.00 $1,569.89 in Investable Balances Offset$1.00 of Total Fees for all Analysis Based Services. 45 Resolution 14-051 Exhibit A Page 58 of 88 Account Analysis r0 K. May 2014 Accan Nurber Direct inquiries to: Relationship KITSAP BANK P.O.BOX 9 PORT ORCHARD WA 98366-0009 Statement Glue June 9,2014 Page 1 of 2 $20,000 1 Competition 5 Finalists Who will get the edg3? Visit www.kitsapbank.com/edg3-fund for the application and official rules Balance S urrmary Average Ledger Balance $166,196.80 Less Average Float $168.61 Average Collected Balance $166,028.19 Average Neg Colley d Bal e F $0.00 P f //rr%/ lk,(/ Average Poi ve�oller9i� Bala �f ', f l� $166,028.18 Collected BalanClf %///oyp / � p � $ 66,028.19 Less Feder*%lyll#'rvrrf{equi jmI t a,�0 0 j)O,f�l%of Co7f§1%%0//%%%d1R B�vJyllliN1� $16,602.82 Investable Balance $149,425.37 Investable Balance $149,425.37 Less Balance Required for Services $53,768.74 Excess/(Deficit)Balance $95,656.63 Results Summary Analyzed Results Earnings Credit at 0.750000%of Investable Balance $95.18 Less Total Analyzed Fees $34.25 Total Analyzed Results $60.93 The Total Excess Analyzed Result of$60.93 was Transferred to Composite Account Service Detail Service Description Volume Unit Price Total Fee_ Balance Required Account Activity Checks 9 $0.1500 $1.35 $2,119.35 Deposit 2 $0.2500 $0.50 $784.95 Preauthorized Debit 12 $0.1000 $1.20 $1,883.87 Check Imge Per Item 9 $0.00 Account Analysis Maintenance Fee 1 $10.0000 $10.00 $15,698.90 Deposited Items 5 $0.0900 $0.45 $706.45 Balance Management Balance Mgmt Fee Per$1000 Led Bal 166 $0.1250 $20.75 $32,575.22 Total Analyzed Fees $34.25 $53,768.74 45 Resolution 14-051 Exhibit Page JYo/&y ��tSapBaQkAc(IOL,Iiit,Aiialy!;�sStater'�'ientot Defin�tions Average Ledger Balance Average Ledge, Balance is equal to the aggregate Ledger Balance divided by the number ofdays in the statement period for each account. The Average Ledge, Balance for the relationship summary is the aggregate of this figure for each account. Average Float Average Float is equal tothe aggregate float divided by the number of days in the statement period for each account. The Average Float for the relationship summary is the aggregate of this figure for each account. Average Negative Collected Average Negative Collected is equal tnthe Negative Collected divided by the number ofday 1n the cycle. The Average Negative Collected for the relationship summary is the aggregate of this figure for each account. Average Positive Collected Average Positive Collected is equal tuthe Positive Collected divided by the number of day in the cycle. The Average Positive Collected for the relationship summary is the aggregate of this figure for each account. Federal Reserve Requirement The percentage of the base balance that is required to be held in be subtracted from vlgy | Balance. hare A FOS Investable Balance ���� �� Th����ra��[��e��d8a|a��� ����Fedem| Reserve Requirement which is used to calculate the Earnings Credit amount. Balance Required for Service Based on the Earnings Credit Rate' the amount ofInvestable Balance needed to totally offset Total Analyzed Charges. Excess/(Deficit) Balance The Excess/(Deficit) Balance is the amount of Investable Balance above (excess) or below (deficit) the required balance to offset Total Analyzed Charges. Earnings [,edit Rate The Earnings [,edit Rate is the ,ate used to calculate the Earning [redit. Earnings Credit The calculated amount based on applying the Earnings Credit Rate tn the Investable Balance. Total Analyzed Results The results of comparing Total Analyzed Charges to the calculated Earnings [,edit. |f the Total Analyzed Charges are greater than the calculated Earnings [redit, the result is a net charge. |f the Total Analyzed Charges is less than the calculated Earnings Credit, the result is a net credit. In the event ofa net credit, the amount is not posted tn the designated account. Fee Based Results The total of the service charges for each service used that can not be offset by Earnings Credit. Rev 06.12 Resolution 14-051 Exhibit A Page 60 of 88 Account Analysis ICITSAP BANK. Acco-n Nun-ber May 2014 Relationship StateTert Date June 9,2014 Page 2 of 2 Service Deta i I-continued Service Description Volume Unit Price Total Fee Balance Required Total Fee Based Fees $0.00---- Total Waived Fees $0.00 $1,569.89 in Investable Balances Offset$1.00 of Total Fees for all Analysis Based Services. 00 N �,Nrg a m, I F, 11'"if IN "11 Al ................... ON 45 Resolution 14-051 Exhibit A Page 61 of 88 Account Analysis KITSA „ BANK May2014 KITS AP rt� rt Nuer Direct inquiries to: RelaticrrNp KITSAP BANK P.O.BOX 9 PORT ORCHARD WA 98366-0009 Staterrent Date June 9,2014 Page 1 of 2 $20,000 1 Competition 5 Finalists Who will get the edg3? Visit www.kitsapbank.com/edg3-fund for the application and official rules Balance S urr rnary Average Ledger Balance $87,031.78 Less Average Float $0.00 Average Collected Balance $87,031.78 Average Ne t), ,Colley„ed Bala, e $0.00 Average P ive ollef,�oBalar � � �� f �� $87,031.78 Collected IL Feder equ % lit �i IN (/%of $8,703.18 Investable Balance $78,328.60 Investable Balance $78,328.60 Less Balance Required for Services $34,270.70 Excess/(Deficit)Balance $44,057.90 Results Suni-nary Analyzed Results Earnings Credit at 0.750000%of Investable Balance $49.89 Less Total Analyzed Fees $21.83 Total Analyzed Results $28.06 The Total Excess Analyzed Result of$28.06 was Transferred to Composite Account Service Detail Service Description Vol urne Unit Price Total Fee Balance Required Account Activity Checks 5 $0.1500 $0.75 $1,177.42 Preauthorized Debit 2 $0.1000 $0.20 $313.98 Account Analysis Maintenance Fee 1 $10.0000 $10.00 $15,698.90 Balance Management Balance Mgmt Fee Per$1000 Led Bal 87 $0.1250 $10.88 $17,080.40 Total Analyzed Fees $21.83 $34,270.70 Total Fee Based Fees $0.00 Total Waived Fees $0.00 45 Resolution 14-051 Exhibit A Page 62gf88 Kits@� �aOl( A(,,couRtAria�ysisStaten,�er�tc)f Defirifti0ns Average Ledger Balance Average Ledger Balance is equal tothe aggregate Ledger Balance divided by the number ofdays in the statement period for each account. The Average Ledge, Balance for the relationship summary is the aggregate of this figure for each account. Average Float Average Float is equal tothe aggregate float divided by the number of days in the statement period for each account. The Average Float for the relationship summary is the aggregate of this figure for each account. Average Negative Collected Average Negative Collected is equal tothe Negative Collected divided by the number ofday in the cycle. The Average Negative Collected for the relationship summary is the aggregate of this figure for each account. Average Positive Collected Average Positive Collected is equal tothe Positive Collected divided by the number ofday in the cycle. The Average Positive Collected for the relationship summary is the aggregate of this figure for each account. Federal Reserve Requirement The percentage of the base balance that is required to be held in h subtracted from 2,FIN x Balance. IF M M 15 gg All 'rr Investable Balance �0��' �� T6����mQ� ���o�dBab����s�0 ,—'Federa| Reseme Requirement which is used to calculate the Earnings [edit amount. Balance Required for Service Based on the Earnings Credit Rate' the amount ofInvestable Balance needed to totally offset Total Analyzed Charges. Excess/(Deficit) Balance The Excess/ (Deficit) Balance is the amount of Investable Balance above (excess) or below (deficit) the required balance to offset Total Analyzed Charges. Earnings [,edit Rate The Earnings Credit Kate is the rate used tn calculate the Earning [edit. Earnings Credit The calculated amount based nn applying the Earnings Credit Rate to the Investable Balance. Total Analyzed Results The results of comparing Total Analyzed Charges to the calculated Earnings Credit. |f the Total Analyzed Charges are greater than the calculated Earnings [edit, the emk is a net charge. |f the Total Analyzed Charges is less than the calculated Earnings Credit, the result is a net credit. In the event ofa net credit, the amount is not posted tu the designated account. Fee Based Results The total ofthe service charges for each service used that can not be offset byEarnings Credit. Rev 06.12 Resolution 14-051 Exhibit A Page 63 of 88 Account Analysis n KITSA " BANK, Acccua Nurrber May 2014 Relaticml ip Staterrent Date June 9,2014 Page 2 of 2 Service Detail—continued Service Description Volurre Unit Price Total Fee Balance Required $1,569.89 in Investable Balances Offset$1.00 of Total Fees for all Analysis Based Services. Of // r�l� f� iii«da� rrair� 45 Resolution 14-051 Exhibit A Page 64 of 88 Account Analysis I a� May 2014 Accost NuTber Direct inquiries to: Relationship KITSAP BANK P.O.BOX 9 PORT ORCHARD WA 98366-0009 Statement Cate June 9,2014 Page 1 of 1 $20,000 1 Competition Finalists Who will get the edg3? Visit www.kitsapbank.com/edg3-fund for the application and official rules Balance 5 ummary Average Ledger Balance $0.00 Less Average Float $0.00 Average Collected Balance $0.00 Average Ne Colle"-d Bale e ,, $0.00 Average Po l/�e' olle� jf Baler jr � $0.00 j 110 Investable Bolan „ mo, % �/ / � $0.00 Ii'G0 %/r2 i //6/i/I/10 1116/m mom Investable Balance $0.00 Less Balance Required for Services $21,821.48 Excess/(Deficit)Balance ($21,821.48) Results Summary Analyzed Results Earnings Credit at 0.750000%of Investable Balance $0.00 Less Total Analyzed Fees $13.90 Total Analyzed Results ($13.90) Total Analyzed Service Charges This Statement $13.90 The Total Deficit Analyzed Result of$13.90 was Transferred to Composite Account S ervice Detai I Service Description Volume Unit Price Total Fee Balance Required Account Activity Preauthorized Credit 70 $0.0500 $3.50 $5,494.62 Preauthorized Debit 4 $0.1000 $0.40 $627.96 Account Analysis Maintenance Fee 1 $10.0000 $10.00 $15,698.90 Total Analyzed Fees $13.90 $21,821.48 Total Fee Based Fees $0.00 Total Waived Fees $0.00 $1,569.89 in Investable Balances Offset$1.00 of Total Fees for all Analysis Based Services. 45 Resolution 14-051 Exhibit Page 65 of 88 �� 0� ��� Statement ofAccount ��� ��@�m��~ �u���0��&�� - ��– /age/"f/ For za-w",telephone banking m online access: 8t»�on�m�p���io�d ����__ _1l/30/05�l��3l��5 360-876-3644"800 ux;xx»/| www.»»mvwak.com Total Days�i�SmmomntPo,iod 31 �� � ........................... ............... Direct general inquiries m your local bank: a60-m7-xmm Kitsal;Bank,/m/Front St,Port Angeles ww98362 *' New Year's Resolution: CUSTOMER NAME Get Organized l23 MAIN DT BH[MERT0NWA90389-l234 Let u* make managing your finances a snap with KitoapBank's FREE Online Banking and Bill Pay services. For more information ask your local Kiteap � Banker or visit . Account Balances xCoDumT oes|mm|mo cmmmn xconomT muMum oxmwCc nxLxmnE Select�Savings--------------Pl2345678y--------�$x^588.23----�$9,846.25 Select Savings: 01 234567B9 Interest�Paid�nmr-To-ume--------------o2m�xr Ending�Balance------------------.��oa�� Transactions Date Descriptions Additions Subtractions Balance 1113nms� —�BEGINNING�n«�«m���__________________________________----------------­on.�ue.zo 121umn---DEPOSIT --------------------------------------���7��-------------^�)s�.ao lzmn10n--- DEPOSIT--------------------------------------'$muoo-------------'^9,825.V 1�VNV�---'��PV��-------------------------------------'�����VV-------------���o�� 12851V5---'DEPOSIT-----------------------------------'_–$50VVo-------------$16,9o5.65 12123105----WITHDRAWAL -------------------------------------------'���x4�o---���m�� 12128N5----WITHDRAWAL ----------------------------------------_--'���n�o---���u ).l� 1����---'�T��T:n�n----------------------------------'�sm-----'_-----''��oo�� |�mms---�|m�x�T�ox�oT----------------------------�-------��m-------------'v�o�o�o ----- l��oe----�Tn�lx|���-----------------------------------���1u-------------�v�o�oz» ----- ]2131105---'|mTEnESTxmn�-----------------------------------^����-------------'^��ou�o ]21u@5---'INTEREST CREDIT-----------------------------------�mim---_--------'v4,84o.2» 12131105--- INTEREST CREDIT-----------------------------------�$5.lu------------'�4�4o�� l2131105----ENDING�TOTALS---------------------------------'�V�����---'�1;�6�50---';�o4o�5 Annual Percentage Yield Earned 0.40% |nmmmNmnngOayx 31 Average Balance for Ap/ $10,545.43 Interest Earned $5.10 How to Reconcile Your Checking Account Step 1, Update your checkbook register(Be sure to deduct service charges.) Step 2. List outstanding checks,POS and If Balances Do Not Agree: ATM transactions,and other withdrawals. ® Check addition and subtraction in Check No./Withdrawal/Fees AMOUNT your register. $ ® Compare your checks,Point-of-Sale/Debit Card(POS)and ATM(automated teller machine)transactions,and any other with- - --- -- - -- - drawals in your register with statement. ® Compare deposit receipts and entries in your - - register with statement. __- - Be sure all checks,POS and ATM transac- --- tions,service charges,and other payments and --- --- --- -- deposits are entered into your register. - ® Be sure any interest credits are entered in the deposit section of your register. - Important Notice Please examine this statement and enclosure(s)and report at once if you find any irregularities in your deposit accounts. If none are reported within 60 days,your statement will be considered correct.All items are credited subject to final determination. -- In Case of Errors or Questions About Your Electronic Transfers Call or write your local Kitsap Bank Office as soon as you can --- —-- if you think your statement or receipt is wrong,or if you need more information about a transfer on the statement or receipt. The telephone number is printed on the front of this statement. TOTAL J The address is:Kitsap Bank,P.O.Box 11111,Bremerton,WA 98337 We must hear from you no later that 60 days after we sent you the FIRST statement on which the error or problem appeared. Step 3. Reconcile your account -- - --- - -- --', 1.Tell us your name and account number. Enter Balance from This Statement$ - 2.Describe the error or the transfer you are unsure about,and $__ explain why you believe there is an error or why you need more information. 3.Tell us the dollar amount of the suspected error. Add Your Deposits Made, but Not Shown on This Statement If you notify us verbally,we may require that you send us your complaint or question in writing within 10 business days(5 business days if the transfer involved a Point-of-Sale transaction and 20 business days for new accounts). We will investigate your complaint and will correct any error promptly. If we take more than 10 business days to do this,we will re-credit your account for the amount that you think is in error,allowing you -- use of the money during the time it takes us to complete our SUBTOTAL $ investigation. If we ask you to put your complaint or question Subtract Ouststanding Balance $ in writing,and we do not receive it within 10 business days, we reserve the right to withhold crediting your account. This Should Agree With Your Checkbook Balance $ FDIC t Rev.01.06 t.SiiPd!'A:fb i1A r„,y Ir O � w � I j d P, Nr MM M r � r If � �ud� 1i I/W iu r. r Am o � � C I e' 1 i D�r� r oo o � o o W e O �ch CL Lm cu to U }, 1 I% C: m ' O r m s CD ow l O 'r, Q F j • • / .... j fl / U i l • � � f �/ tea+ ri j o � Q l� 1 'I 1 r` r i 4 V a / oc K KIM LM 0 CD E CD CD I � 1; m J 4 8 m ^1 W W o r m CL >o W i a q� ,• w` f / O m l a) + U 4 ' ® C: 4 Vii . ^1 Ifs VIII a � W L, 2 m 4- (rr q mAm co �,Vl f r� r CL p/ i 11 r o% � r% d Z L4 w a J? nr �Iyy u III JVOV r aunt f, m W WIN k hum, l �"iVW O r •4 arrrl or.°{ � i �lm r�%."e iri ✓n nri �s a O O cm � cm >1. J O O cn E to O S 4 �Cf j C Cf r': w to) CL >N O � po w i U) Fm i :3 II O -3 N O r f pm it I I P'II�' I 1 �F m• 1� � E; °-+➢ _ ,ir, r ,,.' ' ,' fir :ii': S„ v , V Di � f �. '� IIIOI�IU 011 J �IIIIVUWII W u J a moms .� EE 0 f l 4- f, 4-0 am m �� W �• uu m VIII --,,e O s 9 o m®orv� 0 1„ � I d N�^^IIIIm�I JF d mmmm LZ r oPp P � 1J 1 f �j i e 9 a r �®\ gym, r O fI3 b � r J a z Q M n CD a LM i /� r 1 -o � � r .p o rY CIO ce i CL Lm CD 0 Lm f� O O f� w •®o w o 4 CU, 1 < ��y l r ° 0 U �' j 0 o m i a 4 I r I rf 1D I i W O �O w 00 �� G • r O w e 19 •ti � ° u O � g w I' A i q i o: r; "Poll IBM xat t i O an a C> Cl nw 6 a � 4 �.. x .. r p^e i.k.. d_.r d L tl,d) ra,,a 1r, aowe ' 7 j l� �l l/ r J� a � r O � f F re ores t1} oo CDD 2 nvi r Cn:'a /^ SAJ �J r"i f m pip+ STJ 4-' j I.: m w SA) LL. Ca I CrJ 'ate C.J 'T5 4.5 rrj-1 aa;; � pA i75 GpJ Awl i��; M � ( M 9 G of re i rla Nd 4} P o rpa r» P, i i i Q � 1 OL4 CL CL Cl LUL r � s w ; v 4 r. I � n # ; r ' z , , r F ' — J m C r o n , a 91 lIWdAYlA r 3 m U 1 F �s Fr f 'J l ��1 a 00 C 00 K o o W �, W n f U1 (Y. D X7 iL? tt la m I i yr = rU f5 CD CL7 C,l;a f rrj - T_7 T-3 T7 r7 m " W X-- mg fL; r2 Ix. In ID CL (l a c C l co 5 r� C15 fly /� F t15 ; rls . 73 rr5 / CD CD JJ �i i f 1< IIII010� 141 1 � 'n 0 � --ZN00 r M K q W " ■ N � ■ �� '. as� ca Wig cc Lm N a V � G � p � p 9PV�^4 u7 a X:. 'S k5 aU ry+ I .d ■NII N 991� 2 f Y 0 CC EE7 N "01 1 ° E Btu q @ dE MVA Y ffi I 4 N ■ J W i t C cc EE E cB O Ef N 9N1■■ y Aso O L r U t/ r Resolution 14-051 Exhibit A Page 83 of 88 merchant Merchant Statement S e r v i c e s Page 1 of 2 KITSAP BANK. Processing Month 06-14 Association Number: 108023 Sample Statement Merchant Number: 123 Main Street Routing Number: XXXXX2906 AnVtown,ST 12345 Deposit Account Number: FOR CUSTOMER SERVICE PLEASE CALL(800)654-9256 Amount Deducted $18934 Plan Nvpnbel of Amount of Numbei of Amount of Net Av&age Wsc Disc Discount Code Sales Swas Credits Credits Sales Ticket P/1 % Due AM 3 827.21 0.00 82721 275,73 0.000 0,400 3_31 DP 0 000 0 0.00 0.00 000 0.000 0400 0.00 DS 1 56,53 0 0.00 56.53 56,53 0.000 0,400 023 me 6 3,31533 0 0,00 3,315,33 55255 4.000 0.400 '13,26 vs 18 3,475.41 0 0.00 3,475,41 19307 4.000 0.400 1190 28 7,67448 0 0,00 7,67448 274,08 30.70 Plan Summary AMERICAN EXPRE'S 11% 'DISCOVER 17b Reference, Tran Total Number Toralknown Towl Amount Net Day Numbpf Code of Sales Of sales of Cfedus Deposits 01 60,100565200 D 1 158,71 0,00 158.71 02 60200139100 D 1 163,05 000 16305 03 60301045200 D 1 25.00 0.00 25.00 04 60401112300 D 1 93.48 1100 93.48 06 60601101700 D 2 432,63 000 432,63 07 60700970000 D I 19023 000 19023 07 60700970100 D 2 239,14 000 239'14 08 60800538500 D 2 150,01 0.00 150,01 11 61,101072200 D 2 722.03 0.00 72203 14 61400951700 D 1 543.50 0,00 543,50 15 61500265500 D 1 43.48 000 43.48 18 61801053300 D 2 42'1.76 0.00 421.76 21 621009jf5000 D 1 23371 0.00 233.71 22 62200547300 D 2 804,38 0.00 804,38 22 62200547400 D 1 380,45 000 380A5 23 62300353400 D 1 56,53 0-00 5653 25 62501070800 D 2 851.12 0.00 851 12 26 62601072800 D 1 6739 000 67,39 27 62701090900 D 1 43,48 0,00 43.48 PLAN CODES TRANSACTION CODES VS-'/I SA MC-MASTERCARD DS-DISCOVER Ald-AMERICAN EXPRESS D-DEPOSIT VL-VISA LARGE TICKET ML-MASTERCARD LARGE TICKET DL-DISCOVER LARGE TICKET ND-NETWORK P N DEBIT A-ADIUSTMENT VB-V�SA BUSINESS MO-MASTERCARD BUSINESS DB-DISCOVER BUSINESS PR-REGULATED PIN DEBIT VD-VISA DEBIT MID-MASTERCARD DEBIT DID-DISCOVER DEBIT EB-EBT VR-VISA REGULATED MR-MASTERCARD REGULATED DR-DISCOVER REGIJ LATED EC—ELECTRONIC CHECK 415-VISA CASH ADV MS-MASTERCARD CASH ASP 05-DISCOVER CASH ADV Resolution 14-051 Exhibit A Page 84 of 88 6575 0200 OORPO,07012014 W$*NN tit WA100 0110 Merchant Page 2 of 2 Processing Month. 06-14 S e r v i c e s Associahon Numbei '108023 Merchant Number M 750.00 000 750.00 '1 440 000 1,304.40 MMMMM20�� 28 628009 - r-i NVO D 30 _000�jifi 7400 D .p. t Totals. D '1 28 $7,674.46 $0.00 $7,3674 48 Number Amomif Desmallon Total MONTHLY SERVICE FEE 6.00 $100,000 BREACH COVERAGE MONTHLY FEE 8.95 VISA ACQUIRER NETWORK FEE(FANF)-MAY 7.00 26 TRANSACTION/NETWc')RK ACCESS FEE 3,90 3 TRANSACTION/NETWORK ACCESS FEE-AXP 0A5 3 82721 AXP ASSESSMENTS 124 1 56.53 DISC/PAYPAL ASSESSMENTS 0,06 6 3,31533 MC ASSESSMENTS 3.01 18 3,475.41 VISA ASSESSMENTS 3,82 AXP ACCESS FEE 248 695.68 AXP KEY ENTERED FEE 2.09 AXP SYSTEM PROCESSING FEE 3-31 1 56,53 DISCOVER DATA USAGE/NETWORK FEE 002 28 7,67448 ASSOC KILOBYTE/BASE 11 FEES 2.09 6 3,315-33 MC ASSOC NABUILICENSE FEE 0.18 18 VISA ASSOC-'APF FEE 0,35 2 VISA DEBIT INTEGRITY FEE 0.20 6 88290 VISA US REG DB 175 1 9348 VISA CPS-RTL CK DB 0,90 6 1,115,28 VISA VS P RTL 24.01 5 1,383.75 VISA C PS-REWARDS 1 23,34 1 291,32 MC WRLD MERIT 1 0,07 1 1,30440 MC REG DB FA 0.87 3 969.611 MC ELITEMERIT3 21 64 750,00 MC HV MERIT 3 16 60 1 56.53 DISC MID SUBM PR 146 25.00 AXP RETAIL T1 0.50 2 802,21 AXP RETAIL T2 15,8,5 TOTAL FEES DUE 159,04 Discount Due 30 70 Fees Due 159.04 Amount Deductod '18974 WE ARE CHANGING OUR VOICE AUTHORIZATION NUMBER,PLEASE BEGIN USING OUR NEW NUMBER OF 800-291-4840 EFFECTIVE IMMEDIATELY THE CURRENT VOICE NUMBER WILL NO LONGER BE AVAILABLE AFTER SEPTEMBER 1ST WE APPRECIATE YOUR SUPPORT AS WE MAKE THIS CHANGE IMPROVING OUR SERVICING OF YOUR MERCHANT PROCESSING NEEDS. Resolution 14-051 Exhibit A Page 85 oj'88 MICHAEL(3011DON KITSAP BANK 'VISA KITSAP BANK. Account Number:#M##"#####8359 Page I of 3 Account Summary Account Inquiries Billing Cycle 06/23/2014 Call us at: (866)317-0355 Days In Billing Cycle 33 Lost or Stolen Card- (866)839-3485 Previous Balance $0.00 Purchases + $12714 Go to vvvvvv.MyCardStatement,corn Cash + $0.00 tttJJJ Special + $0,00 Write us at PO BOX 30495,TAMPA,FL 33630-3495 Credits $0.00 Payments $0.00 Other Charges + $0.00 Payment Summary _Finance Charges + $0.00 NEW BALANCE 11-2.7.1-4- NEW BALANCE $127A4 MINIMUM PAYMENT $127.14 1 Credit Summary PAYMENT DUE DATE _"12014_..___.J j Total Credit Line $1,000,00 Available Credit Line $5,872.86 NOTE.Grace period to avoid a finance charge on purchases,pay Available Cash $0.00 entire new balance by payment due date. Finance charge accrues on Amount Over Credit Line $0.00 cash advances until paid and will be billed on your next statement Amount Past Due $0.00 Disputed Amount $0.00 Important Information About Your Account ATTENTION-DUE TO DATA BREACH EVENTS,WE ADVISE THAT YOU CONTINUE TO CLOSELY MONITOR YOUR CREDIT CARD ACCOUNT.PLEASE REPORT ANY SUSPICIOUS ACTIVITY IMMEDIATELY.TO CHECK RECENT ACCOUNT ACTIVITY, LOG INTO OUR ONLINE BANKING SITE,AND ACCESS OR ENROLL YOUR CREDIT CARD ACCOUNT TODAY. Card o der ceou, ummary :Tr:an:s D=at e Post Date Di a t i�Na m e �R e ie-re—n c e Number Description Amount 06/12 06/15 PNOF12 24013394164000919890032 HOP JACKS SILVERDALEWA $7836 06/17 061119 PNOF12 24122594169980014717735 JJ'S FISH HOUSE POULSBOWA $38.78 06/19 06/20 PNOF12 24270744171463201203097 CORNER COFFEE BREMERTONWA $10.00 V1 IJ 707 DA I RECL1tT..59t1.' KITSAP BANK - PO BOX 1080 KITSAP BANK 044 &M#8359 BREMERTON WA 98337-0375 Check box to indicate - name/address change on back of this coupon E] AMOUNT OF PAYMENT ENCLOSED Total Wnirnurn closing Date Now Balance �_Payirnentl)ue,Mite -.1-1---,-"---"--—"--] L-T --.—�---1 � Ou#- -- $ 06/23/14 $127.14 $127.14 07118/14 MICHAEL GORDON MAKE CHECK PAYABLE TO: KITSAP BANK 4714 PT FOSDICK DR IIIIIIIII(till 1111)11111 1111111111 It 111 11111 11 1 al 11111 11611111 GIG HARBOR WA 98335-1709 VISA PO BOX 31021 TAMPA FL 33631-3021 Resolution 14-051 Exhibit A Page 86 of 88 IMPORTANT INFORMATION Finance Charge Calculation Methods and Computation of Average Daily Balance Subject to Finance Charge The Finance Charge Calculation Method applicable to Your account for Cash Advances and Credit Purchases of goods and services that you obtain through the use of your card is specified on the front side of this statement and explained below: Method A-Average Daily Balance(including current transactions) The Finance Charge on purchases begins on the date the transaction posted to your account The Finance Charge on Cash Advances begins on the date you obtained the cash advance,or the first day attire billing cycle within which it is posted to your account,whichever is later There is no grace period The Finance Charges for a billing cycle are computed by applying the Periodic Rate to the"average daily balance"of your account To get the average daily balance,we take the beginning balance of your account each day,add any new purchases or cash advances,and subtract any payments,credits, non-accruing fees,and unpaid finance charges This gives us the daily balance Then we add up all the daily balances for the billing cycle and divide the total by the number of days in the billing cycle Method E-Average Daily Balance(excluding current transactions).To avoid incurring an additional Finance Charge on the balance of purchases(and cash advances if Method E is specified as applicable to cash advances)reflected on your monthly statement,you must pay the New Balance shown on your monthly statement on or before the Payment Due Date The grace period for the New Balance of purchases extends to the Payment Due Date. The Finance Charges for a billing cycle are computed by applying the Periodic Rate to the"average daily balance"of purchases(and if applicable,cash advances) To get the average daily balance,we take the beginning balance of your account each day and subtract any payments,credits,non-accruing fees, and unpaid finance charges.We do not add in any new purchases or cash advances.This gives us the daily balance Then we add up all the daily balances for the billing cycle and divide the total by the number of days in the billing cycle. Method G-Average Daily Balance(including current transactions).To avoid incurring an additional Finance Charge on the balance of purchases(and cash advances,if Method G is specified as applicable to cash advances)reflected on your monthly statement and,on any new purchases(and if applicable,cash advances)appearing on your next monthly statement,you must pay the New Balance,shown on your monthly statement,on or before the Payment Due Date The grace period for the Now Balance of purchases extends to the Payment Due Date, The Finance Charges for a billing cycle are computed by applying the Periodic Rate to the"average daily balance"of purchases(arid if applicable,cash advances).To got the average daily balance,we take the beginning balance of your account each day,add any new purchases or cash advances,and subtract any payments,credits,non-accruing fees,and unpaid finance charges.This gives us the daily balance.Then we add up all the daily balances for the billing cycle and divide the total by the number of days in the billing cycle, Epyinent Crediti Ij!jngand Credit Balance Payments received at the location specified on the front of the statement after the phrase"MAKE CHECK PAYABLE TO"will be credited to the account specified on the payment coupon as of the date of receipt.Payments received at a different location or payments that do not conform to the requirements set forth on or with the periodic statement(e.g.missing payment stub,payment envelope other than as provided with your statement,multiple checks or multiple coupons in the same envelope)may be subject to delay in crediting,but shall be credited within five days of receipt.If there is a credit balance due on your account,you may request in writing,a full refund.Submit your request to the Account Inquiries address on the front of this statement. By sending your check,you are authorizing the use of the information on your check to make a one-time electronic debit from the account on which the check is drawn.This electronic debit,which may be posted to your account as early as the date your check is received,will be only for the amount of your check. The original check will be destroyed and we will retain the image in our records.If you have questions please call the customer service number on the front of this billing statement. Glos!n9_Qate*.The closing date is the last day of the billing cycle;all transactions received after the closing date will appear on your next statement. Annual Fee,If your account has been assessed an annual fee,you may avoid paying this annual fee by sending written notification of termination within 30 days following the mailing date of this bill.Submit your request to the Account Inquiries address on the front of this statement.You may use your card(s) during this 30 day period but immediately thereafter must send your card(s),which you have cut in half,to this same address. Noga�ive Credit Reports You are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit reporting agency if You fail to fulfill(lie leans of your credit obligations. BILLING RIGHTS SUMMARY In Case�af Errors or Inquiries About Your Bill:If you suspect there is an error on your account or you need information about a transaction on your bill,send your written inquiry to the Account Inquiries address on the front of this statement within 60 days of the date of the statement containing the transaction in question. You may telephone us,however a written request is required to preserve your rights. In your letter,give us the following information: ♦ Your name and account number. ♦ The dollar amount of the suspected error. 0 Describe the error and explain,if you can,why you believe there is an error.If you need more information,describe the item you are unsure about. You do not have to pay any amount in question while we are investigating,but you are still obligated to pay the parts of your bill that are not in question.While we investigate your question,we cannot report you as delinquent or take any action to collect the amount you question. Please provide a legal document evidencing your name change,such as a court document. Please use blue or black ink to complete form NAME CHANGE Last First Middle ADDRESSCHANCE Street City State :ZIP Code, Home Phone Business Phone I Cell Phone E-mail Address SIGNATURE REQUIRED TO AUTHORIZE CHANGES Signature 32279-1401 Resolution 14-051 Exhibit A Page 87 of 88 VISA MICHAt"rot. GORDON KIT SAP BANK Account Nurntberr ####8359 Page 3 of 3 Pittance Charge Summy/Plan gavel Information rCM,i Average t'erlodlc Corresponding(Finance TEttective APRffective� Errrtirig Plan Name Descrptinn -� Daily Balance Rate -^ APR I Charges Fees** , APR Balance Purchases PNOFI2 PURCHASE G $0.00 0.00000%(M) 0,0000% $0.00 $0.00 0.0000% $127.14 001 COMMERCIAL Cash CNOF12 CASH COMMERCIAL A $0.00 0.00000%(M) 0.0000% $0.00 $0.00 0.0000% $0.00 001 w _eriodic Rake(M)=Manthly(D)=Daily Days In Billing Cycle: 33 includes cash advance and foreign currency fees APR=Annual Percentage Rate FCM=Finance Charge Method (V)=Variable Rate If you have a variable rate account the periodic rate and Annual Percentage Rate(APR)may vary. 32279-1401 Resolution 14-051 Exhibit A Page 88 of'88 KITSAP P i BANK. 300-203-5537 www,kitsapbank.com FDIC