The City of Fernley, Nevada Response to Request for Proposal for Banking and Cash Management Services

Transcription

1 The City of Fernley, Nevada Response to Request for Proposal for Banking and Cash Management Services December 19, 2016 Submitted by: Lynn Heislein, Vice President Relationship Manager John Lefeber, Assistant Vice President Treasury Management Consultant

2 Table of contents Executive summary... 1 Technical requirements... 2 Section A: Bank information and qualifications... 2 Bank profile... 2 Bank financial strength and stability... 3 Customer service and relationship... 4 Section B: Bank comparison overview... 7 Section C: Implementation plan for transition... 7 Section D: Treasury management services overview... 8 Deposit services... 8 Remote deposit... 9 Cash vault (by armored carrier) Remote cash capture (smart safe) ACH...12 ACH Fraud Filter Wire transfer Positive Pay Account Reconciliation Plan Returned items Online reporting...21 Business Elite Card Lockbox services E-Bill Express Wells Fargo Merchant Services PayCard Payroll direct deposit Section E: Additional information Consolidated receivables E-Box service Print services WellsOne Commercial card program Image services Direct payment Cost proposal Appendix Pricing... Tab A Municipal Advisor RFP Disclosure... Tab B

3 Executive summary On behalf of Wells Fargo Bank, we thank you for the opportunity to present our proposal for Banking and E-Commerce Services to the City of Fernley. We understand that the City, like many of our clients, is being asked to provide the same or better services to the customers you serve, while at the same time increasing revenues and cutting costs. We believe Wells Fargo is the ideal financial partner with which to address these challenges. Our experience gives us unique insight into the challenges and opportunities that are common to the City of Fernley. With our current banking relationship, we understand your processes and we can help identify what you could gain by further automating your collections and payments. The Nevada government services division takes great pride in our team s experience. This division, created 23 years ago, provides local servicing to Nevada government clients offering full banking operations and treasury management solutions. Further, Well Fargo s government banking services division specializes in supporting only Nevada governmental clients in a local environment with experienced relationship managers that have over 53 years of combined government banking backgrounds. Patrick Foley, government banking manager, has over 30 years of experience in governmental relationship management in Nevada. Lynn Heislein has over 25 years of institutional and government banking experience. Lynn is the current relationship manager for the City s banking relationship with Wells Fargo. She works closely with our treasury management and electronic commerce teams in order to provide the City with a variety of solutions. In addition, Wells Fargo maintains a Nevada League of Cities and Municipalities Corporate Affiliate membership. We are one of the proud sponsors of the league s annual conference. We are excited to renew our conversations with the City on how we might partner with you and are confident that we can deliver the high level of service and technology you need. As an industry leader in treasury and e-commerce services, we look forward to putting our innovative solutions, experience, and unparalleled customer service to work for you and our future partnership. We believe, as our proposal demonstrates, that Wells Fargo is offering the highest level of service at a very competitive price. On behalf of the entire Nevada government banking services and electronic commerce division, we thank you for your consideration and look forward to the opportunity to partner on the City s banking needs. Wells Fargo Bank, N.A. 1

4 Technical requirements Section A: Bank information and qualifications Bank profile General Wells Fargo & Company is a nationwide, diversified financial services company with $1.8 trillion in assets. Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial financial services through more than 8,800 locations, more than 13,000 ATMs, online (wellsfargo.com), and through mobile devices. We re headquartered in San Francisco, but we re decentralized so every local Wells Fargo office is a headquarters for satisfying all our customers financial needs and helping them succeed financially. We do business with 70 million customers and one in three U.S. households. Wells Fargo has approximately 269,000 team members in 36 countries across our more than 90 businesses. At the end of the first quarter 2016, Wells Fargo ranked third in assets among U.S. banks and was the world s most valuable bank by market capitalization. In 2015, Barron s magazine named us Most Respected Bank ; Fortune magazine named us Most Admired among the world s largest banks; and The Banker magazine named us Best U.S. Bank. Our vision: We want to satisfy all our customers financial needs and help them succeed financially. References Based on our current understanding of your needs, we have chosen references with services that most closely resemble those that we have proposed for the City. We provide contact information for these references in the following table. References* Jessie L. Lindsey Treasurer City of Winnemucca wmcajll@winnemuccacity.org Dave Empey, CPA Finance Director City of Mesquite x2201 dempey@mesquitenv.gov *References are confidential. Wells Fargo Bank, N.A. 2

5 Bank financial strength and stability Financial strength Our year-end key performance measures are detailed as follows: Key performance measure Total assets $1.5 trillion $1.7 trillion $1.8 trillion Net income $21.9 billion $23.1 billion $22.9 billion ROA 1.51% 1.45% 1.31% ROE 13.87% 13.41% 12.60% Equity/assets 11.20% 10.98% 10.85% To review the full Wells Fargo & Company Annual Report, please use the following link: We have one of the highest debt ratings of any financial services company, as shown in the following table.* Wells Fargo & Company Fitch Ratings Moody s Standard & Poor s DBRS Long-term Issuer Rating AA- A2 A AA Short-term Issuer Rating F1+ P-1 A-1 R-1 (middle) Senior Unsecured AA- A2 A+ AA Subordinated A+ A3 A AA (low) Preferred Stock BBB Baa2 BBB A Wells Fargo Bank, N.A. Fitch Ratings Moody s Standard & Poor s DBRS Long-term Issuer Rating AA- Aa2 AA- AA (high) Short-term Issuer Rating F1+ P-1 A-1+ R-1 (high) Bank Deposits AA+ Aa1 AA- AA (high) Senior Unsecured AA Aa2 AA- AA (high) Subordinated A+ Aa3 A AA *The information provided is found on our Investor Relations site (wellsfargo.com/invest_relations/debt) and is provided for informational purposes only. We do not guarantee the accuracy or completeness of information on or available through this site, and we are not responsible for inaccuracies or omissions in that information or for actions taken in reliance on that information. Please read Legal Disclaimers (wellsfargo.com/invest_relations/legal/) before using or relying on information on or available through this site. Potential investors in our securities should seek professional advice before they invest. Wells Fargo Bank, N.A. 3

6 Disaster recovery Wells Fargo has a business continuity plan that consists of multiple recovery strategies for each core line of business, function, product, and service. If a disaster or emergency occurs, we make every attempt to restore and maintain normal service levels as soon as possible. Our core processes and procedures for business continuity planning are consistent for a wide variety of disasters or emergencies, but components of the plan may vary based on the nature of an event. We have identified four main areas that are most commonly affected, and provide our general approach to each in the following paragraphs. Systems To minimize the severity of system interruptions, we maintain redundant platforms for business critical systems. If a Wells Fargo system experiences a temporary outage, we allocate available resources to the remediation of the impacted applications. Operations facilities If a disaster occurs at one of our primary operations centers, we use alternate geographically dispersed processing centers to take over day-to-day processing and support, until the primary center returns to normal operating conditions. Telecommunications and power We work with multiple telecommunications and power companies to create a redundant network to minimize the likelihood of an outage. If an outage occurs, we take reasonable action to implement manual alternatives. Transportation If air or ground transportation is temporarily unavailable, we take reasonable action to use alternative methods, given available transportation options. Customer service and relationship Specialized government and institutional assistance Your relationship manager and treasury management sales consultant are part of the Government & Institutional Banking group, a team of seasoned professionals dedicated exclusively to serving the unique banking needs of the public sector. Within the State of Nevada, we service 153 state and local government clients. We re committed to serving our government entities and their employees and the communities in which they live through a complete range of products and personalized service. Wells Fargo Bank, N.A. 4

7 The City s overall relationship will primarily be handled by your relationship manager, Lynn Heislein, and treasury management sales consultant, John Lefeber. The following are brief biographies of your relationship team. Lynn Heislein Vice President Relationship Manager lynn.e.heislein@wellsfargo.com mobile MAC A Kietzke Lane 2 nd Floor Reno, NV Barbara D. Bailey Business Associate barbara.d.bailey@wellsfargo.com MAC S S Rainbow Boulevard Suite 210 Las Vegas, NV John C. Lefeber Assistant Vice President Treasury Management Consultant john.c.lefeber@wellsfargo.com mobile MAC S Howard Hughes Parkway Suite 400 Las Vegas, NV Lynn is a relationship manager with the Wells Fargo Government Banking team in Nevada. In this role, she serves as the primary contact for the company s municipal customers in northern Nevada. Lynn has over 25 years of industry experience. Prior to joining Wells Fargo, she was a relationship manager at The Bank of New York, where she was responsible for defining customized solutions for her clients, supporting the delivery of new services and designing client training programs. Prior to joining The Bank of New York, she served as an account manager for Barclays Global Investors, where she led a team responsible for oversight of the company s public fund and corporate relationships. Lynn began her career at Wells Fargo Institutional Trust Company where she served in a variety of roles that broadened her understanding and interest in the investor services industry. While there, she held progressive roles including client service representative in securities lending, supervisor of fund accounting and trading operations, and manager of international operations. Lynn earned a bachelor s degree in accounting from the University of Oregon and is a Certified Treasury Professional (CTP). Barbara works with your relationship manager to help enhance your customer service experience. She serves as the liaison between you and the various departments of the bank. Barbara brings more than 35 years of banking experience to her current position. She assists you directly with any items pertaining to your account analysis statements and overdrafts. John is a treasury management sales consultant with Wells Fargo in Nevada. He serves as the primary contact for treasury management needs in Nevada. John has more than 19 years of industry experience. John began with Wells Fargo in 1997, and has experience in many different roles within the bank. John has been supporting customers in the Business Banking and Government groups since John received his Bachelor s Degree from Drake University and Masters of Business Administration from the University of Phoenix. John will start the CTP Certification process in Wells Fargo Bank, N.A. 5

8 Robert T. Gates Vice President Wholesale ereceivables Group Treasury Management Sales mobile MAC E Priestly Drive Suite 130 Carlsbad, CA Robert has primary responsibility for providing guidance about electronic receivables. Robert consults with wholesale, government, and large corporate banking customers on the entire invoice to payment process. He looks for ways to add efficiencies while reducing cost, increasing working capital, and minimizing risk exposure. Robert brings more than 15 years of sales consulting and management experience in bankcard payment services. He is dedicated to finding the best solution for his clients and prides himself on a reputation built on follow-up and follow-through. He supports Regional Commercial Banking Offices, Government and Institutional Banking, and U.S. corporate banking clients in Southern California, Nevada, and Hawaii. Available when you need us In addition to your relationship team, our centralized Treasury Management Client Services group is readily available to assist you. Our Client Services department is staffed with welltrained representatives capable of quickly and effectively addressing your cash management, depository, and other banking inquiries. These team members have access to multiple bank systems for on-the-spot research and responsiveness. Your primary office The City s relationship will continue to be overseen by your dedicated relationship manager, Lynn Heislein, from our Government & Institutional Banking office in Reno, NV. The office address is: Wells Fargo Bank, N.A. Government & Institutional Banking Attn: Lynn Heislein MAC A Kietzke Lane 2nd Floor Reno, NV The City s local branch servicing needs can be provided through any of our branches in or near Fernley. The closest branch to your location is: Your location Branch Branch deposit deadline (local time) Distance City of Fernley 595 Silver Lace Blvd. Fernley, NV Fernley 1400 E. Newlands Dr. Fernley, NV Mon-Fri: 6:00 p.m miles Wells Fargo Bank, N.A. 6

9 Nevada Revised Statute 356 Wells Fargo is a qualified depository for public funds in accordance with NRS Wells Fargo was accepted by the State of Nevada Board of Finance to participate in the State of Nevada Treasurer s Pooled Collateral Program. We provide collateral of acceptable securities having a fair market value of at least 102 percent of the amount of uninsured ledger balances through the Nevada Collateral Pool on a daily basis as required by NRS through Section B: Bank comparison overview This section should include a comparison of the City s current analysis as compared to the Bank s proposed analysis. Please contact the City for current analysis information. Please refer to the end of the proposal for the City s current services and pricing, as provided today by Wells Fargo with an ECR of 0.44% (44bps). Section C: Implementation plan for transition As an existing customer, you won t undergo a lengthy and potentially costly conversion all your services are already in place. You ll work with your relationship manager, Lynn Heislein, for any additional services or service modification requests. For any new services, we can discuss implementation timelines related to those services as each service has their own unique requirements.. As an existing customer, you also won t incur conversion costs. Should you choose to set up any new services, we reference any associated set up costs in the cost proposal. Should the City wish to implement any additional services beyond the currently provided services, our experienced team will meet with the City. Together, we ll discuss the process, set expectations, and document any potential issues that the team may encounter during the transition. In addition, we ll conduct follow-up meetings as necessary. We ll assign a dedicated implementation consultant to the City and coordinate an implementation kickoff meeting. He or she will act as your single point of contact throughout the implementation, and help determine timelines and responsibilities. In addition to your day-to-day service needs, we can consult with you about your banking practices and make recommendations to help you streamline your processes and increase efficiency. We can also consult with you to provide additional training on products and services, discuss fraud mitigation or business continuity planning, and more. We aim to dive deep into the topics of most interest and value to you. We also provide several complimentary virtual training options so on-site training is usually not necessary. However, for some of our more complex services, we are able to provide in-person training, should you require it. Wells Fargo Bank, N.A. 7

10 Section D: Treasury management services overview Wells Fargo is confident our services will continue to help the City reduce costs, gain efficiencies, and increase controls. In the following pages, we provide overview descriptions of the services that will best meet your needs. Deposit services Wells Fargo currently provides the City with an ECR of 0.44% (44bps). We set the earnings credit rate (ECR) internally each month after evaluating a combination of factors, including the 91-Day Treasury Bill rate, the Fed Funds rate, sweep rates, and other market indicators. The rate is set at our discretion and we may adjust it during the month to react to market changes. We calculate your earnings credit on 100% of your investible balance (also called average daily positive collected balances). We do not deduct a reserve requirement prior to calculating the ECR. Accounts holding public funds are labeled on our system with a public funds identifier code. Using this code, the system generates reports that are used to determine the daily collateral requirements. Our Public Funds Collateral Unit is responsible for monitoring deposit balances and collateral levels. Deposits You can make deposits and perform other banking transactions through a variety of convenient methods. Branch If your daily cash deposits are less than $10,000 and you deposit fewer than 250 checks, you can make over-the-counter deposits in our branches. When you present deposits to tellers in secure plastic, dual-pouch bags, they will remove checks and deposit tickets, and then provide receipts for the amounts shown. You don t have to wait for your deposit to be counted. We verify the cash at the branch or at one of our cash vaults, after you leave. If you d rather have immediate confirmation tellers will count and verify deposits while you wait. You receive same-day ledger credit for both cash and check deposits. Cash deposits will receive immediate availability and check deposits will be made available the next business day nearly 100% of the time. You receive credit the next business day for deposits you make after the deadline, on weekends, and on Federal holidays. In addition to making deposits, you can order up to $3,000 in cash and $500 in coin per day, up to four days a week. If your orders exceed these limits, your treasury management sales consultant can work with you to find an alternative solution. Night depository Most of our full-service branches have a convenient night depository for commercial customers. Wells Fargo Bank, N.A. 8

11 You must make deposits in secure plastic, dual-pouch bags. We process them at the branch and verify the cash later, either in the branch or at a nearby Wells Fargo cash vault. Audit controls are in place to help ensure that we count and verify your deposit accurately. Once we process your deposit, you receive same-day credit for cash deposits. Check deposits receive next-day credit nearly 100% of the time. The following branches are closest to your location and can best support your deposit needs. Your location Branch Branch deposit deadline (local time) Distance City of Fernley 595 Silver Lace Blvd. Fernley, NV Fernley 1400 E. Newlands Dr. Fernley, NV Mon-Fri: 6:00 p.m miles Remote deposit You can save both time and money by using our remote deposit service to deposit checks into your Wells Fargo account electronically, and eliminate the need for your employees to physically take deposits to the bank. An extended deposit deadline 7:00 p.m. PT for same-day ledger credit means faster notice of returned items. Please note that two scanners will be offered to the City at no additional cost. How it works You scan checks for deposit by using a check scanner and a computer with internet access. Next, confirm the check dollar amounts and verify the deposit balances. Then, submit the deposit to us; you ll receive an immediate confirmation. The following diagram shows the remote deposit process flow. If you are enrolled in our Event Messaging service, we will send authorized users a deposit confirmation notice by , text, or fax. Features Image access As you scan checks, we capture their images and store them on our servers. Check images are immediately available online through our remote deposit service for 90 days; these same images are also available online through our Stops-Images- Search service for seven years. Wells Fargo Bank, N.A. 9

12 Custom fields Using multiple discretionary data fields, you can enter customized information about the checks you receive; this lets you search for checks using your own criteria and makes it easy to upload data into your accounts receivable system. Our quick data feature simplifies the capture process by automatically recalling some of your previously entered receivables data. Reporting You can generate the following reports through our remote deposit service: Deposit report Contains general information (including deposit amount, number of checks included, and submission date) for deposits completed within the past 90 days. This report is available in HTML, PDF, CSV, and Excel formats.* Deposit Report with Item Details Contains general deposit information and item details for each deposit completed within the past 90 days. This report is available in HTML, PDF, CSV, and Excel formats.* The HTML format includes links to display item images. *CSV and Excel formats contain keyed discretionary data. Express Report with All Item Images Displays a quick version of the Deposit Report with Item Details. This report is available in PDF format and contains detail information and images for each item deposited (up to 1,000 items), and maintains a 90-day history. You can select the number of images (up to eight per page) that you would like to see. We offer a deposit detail transmission that can include discretionary data that the City manually entered in addition to check detail. This allows you to receive an electronic file for posting your receivables. ACH check conversion You can lower processing costs by coupling our remote deposit service with our check conversion service. After we receive your deposit, our system automatically converts eligible checks to ACH debits. Please note that certain notification rules and regulations apply. User access The City s designated system administrators establish users, grant them access, and set their check limits. Administrators can customize each user s access. For example, a user can have scanonly access for one account and balance-only access for another account. This flexibility lets you implement dual controls so that one person scans and another person submits a deposit. Batch deposits You can create multiple batches within one deposit. This simplifies balancing when you have checks for multiple entities in the same deposit. Wells Fargo Bank, N.A. 10

13 Mobile deposit You can capture check images and deposit funds to your Wells Fargo account with the camera of an iphone or ipad 1, or an Android 2. Mobile users, such as on-the-road personnel, can accept customer checks and deposit 3 them immediately. 1. Requires an iphone or ipad, running ios version 8.0 or higher. 2. Requires an Android OS 4.4 or higher when downloaded from Google Play. 3. One check per deposit. Updates Because our service is entirely internet-based, it does not require the installation of any software (other than a scanner driver). Any updates we make are immediately available to you when you access the system. Quality control Before submitting a deposit, the City will perform a review of the scanned items. You ll view the items and make any corrections (such as rescan images, enter missing data, and verify item amounts) needed to balance the deposit. After successfully completing the review process, you submit the deposit to us. Our Electronic Deposit Center inspects and analyzes the image quality of all items, looking for illegible items, image issues such as streaking or interference within key areas, and image contrast. While image quality exceptions are rare (accounting for less than 1% of all items we process), we do have a process for handling them. If there is an item that we cannot clear, we follow an adjustment process and notify you accordingly. Cash vault (by armored carrier) You can make deposits at any of the vaults in our nationwide network, including our Reno vault. You must make deposits in secure plastic, dual-pouch bags. You can also place coin and currency orders to help ensure you have sufficient cash on hand to support your daily operations. Different deadlines apply for split deposits (cash and checks on separate deposit slips), mixed deposits (cash and checks on the same deposit slip), check-only deposits, and cashonly deposits. During implementation, we ll provide you with a list of deadlines by deposit type and location. Remote cash capture (smart safe) You can receive provisional daily credit to your account without the expense of daily armored car pickups. This may accelerate your cash flow by one to two business days. An approved vendor installs a safe equipped with bill validating and counterfeit detection technology in each of your locations. The safes accept deposits, provide deposit counts, and transmit deposit information to us. You receive credit for deposits the next business day. Wells Fargo Bank, N.A. 11

14 Remote cash capture safes hold cash until an armored carrier picks it up and delivers it safely to its cash vault. These carriers also deliver coin and currency to your locations, as well as maintain and repair the safes. To facilitate reconciliation, you can view transaction information through our standard reporting channels. Our understanding is that this service is no longer needed, so we have not provided pricing information. Should you wish for additional information, this can be provided. ACH The City currently utilizes our ACH Payments service, available through our single sign-on portal. ACH Payments If you want to originate domestic ACH transactions without having to create your own NACHA-formatted files and gain the flexibility to make tax and other payments online this service is the best option for you. Once you build a template based on the payment type, it is quick and easy to create ACH transactions and send them to Wells Fargo for processing. You can choose the types of ACH transactions you want to initiate from the following payment types: Payroll and consumer debits and credits (PPD) Vendor payments (CCD) Federal and state tax payments (CCD+) Cash concentration and disbursements (CCD) Internet- or telephone-initiated consumer debits (WEB and TEL) Re-presented check entries (RCK) Corporate Trade Exchange (credit only CTX) Child support payments (CCD+) Destroyed check entries (XCK) Each of these service options functions independently. Tax payment options You can choose from two convenient tax payment options: WellsTAX Payments and ACH Payments. Both services are available 24 hours a day, 7 days a week. ACH Payments You can easily make federal, state, and local tax payments through our online ACH service. Accessing the service is easy. You sign on to the service using your company ID, user ID, password, and token passcode. To create a payment, you select tax as your payment type, enter the effective date, select whether the payment is recurring, and import or select the beneficiary information. Wells Fargo Bank, N.A. 12

15 You are even able to consolidate payments to multiple tax authorities in one batch as long as you are originating them from the same account. You can choose from two convenient tax payment options: WellsTAX Payments and ACH Payments. Both services are available 24 hours a day, 7 days a week. WellsTAX Payments You can easily make federal, state, and local tax payments by touch-tone telephone or online. Following easy-to-understand prompts, you simply enter your bank-provided access code, personal identification number (PIN), tax code, due date, and payment amount. We do the rest. Choose the option that fits your needs Features Channels Deadlines WellsTAX Payments service Online Telephone One business day prior to due date: State payments: 4:00 p.m. PT Federal payments: 3:30 p.m. PT ACH Payments service Online On-us same day*: 4:00 p.m. PT Transit same-day : 6:00 a.m. and 10:00 a.m. PT One and two day: 6:00 p.m. PT Multiple payment upload Online only Yes Ability to initiate other ACH payment types No Yes Ability to create templates No Yes Warehouse capabilities 30 days 45 days Settlement options Same day Same day One day Two day Dual control Optional (online only) Required Reporting Same-day online payment confirmations for online payments Same-day fax or next day mail confirmations for phone payments Online quarterly activity statement Access to online tax payment history up to two years Standard payment reports (available for 30 days): Beneficiary Detail ACH Payment Detail Payment Template Detail Payment Summary Payment Template Summary Payment Audit Payment Template Audit Wells Fargo Bank, N.A. 13

16 *Both the originating account and receiving account must be Wells Fargo accounts. The $25,000 transaction limit for NACHA s Same Day Rule does not apply to on-us transactions. Available only for credit transactions of $25,000 or less. Transactions of more than $25,000, international transactions (IAT), and debit transactions are not eligible. The transaction will be credited by the receiving financial institution by the end of their business day. At this time, the U.S. federal government is not participating in NACHA s Same Day ACH Rule. Debit transactions will be eligible on September 15, Paying taxes electronically improves the speed and accuracy of processing tax payment information. It also eliminates the paper processing time and cost associated with checks, coupons, or going to the bank during business hours. We automatically convert each of your transactions to the correct tax payment file format. Formatting resides on our systems, where we maintain and keep it up to date for you. ACH Fraud Filter In addition to ACH Payments, the City also takes advantage of our ACH fraud service. The ACH system is one of the most efficient and cost-effective ways to transfer funds, but it s critical that appropriate measures are in place to protect you against unauthorized transactions. You can choose from three options to protect your checking and savings accounts. Review transactions and decide if you want them returned With our review option, you can preauthorize ACH transactions to post to your account. We then notify you of any that are not preauthorized; you review those and notify us whether you want them paid or returned. When you tell us to return one, we create a reversing adjustment and return it as unauthorized. You can request that we report: All ACH transactions posted to your account All ACH transactions that exceed a predetermined dollar amount ACH credit transactions only, or ACH debit transactions only ACH credit transactions or ACH debit transactions that exceed a predetermined dollar amount ACH credit transactions or ACH debit transactions outside a specified date range ACH credit transactions or ACH debit transactions that exceed a specified maximum number of occurrences If you do not make a pay or return decision on an item by the specified deadline, the item is automatically paid or returned based on the default action you select during implementation. Stop unauthorized transactions automatically With our stop option, we automatically return transactions that you have not preauthorized and process all that you have preauthorized. You can request that we: Stop and return all ACH transactions Wells Fargo Bank, N.A. 14

17 Stop and return all ACH transactions that exceed a predetermined dollar amount Stop and return all ACH credit transactions only, or ACH debit transactions only Stop and return ACH credit transactions or ACH debit transactions outside a predetermined dollar range Stop and return all ACH credit transactions or ACH debit transactions outside a specified date range Stop and return all ACH credit transactions or ACH debit transactions that exceed a specified maximum number of occurrences Wire transfer The City can send and receive domestic wires, and transfer funds between Wells Fargo accounts quickly, easily, and securely. Incoming wires We accept wire transfers from other Wells Fargo accounts and from the Federal Reserve, SWIFT, and CHIPS (Clearing House Interbank Payments System) networks. If a sender provides a valid account number in wire instructions that arrive before our processing cutoff time, we ll post the incoming funds to your account the same day. Outgoing wires Our wire transfer service processes correctly formatted outgoing payments on a straight through basis according to your instructions. We manually review, correct, and verify a payment that does not pass edits and that our system cannot automatically correct. Next, our system automatically ensures that there are adequate funds available to process the wire and that a wire is not going to a country or beneficiary on the U.S. Treasury s Office of Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Persons list. If the wire meets these requirements, our system releases it. Initiation methods Online and mobile The City can sign on to our portal to initiate repetitive or free-form wires online. Using our mobile service, users can approve any pending wire transfers and initiate repetitive wires. * * Our mobile service only allows initiation of repetitive wires, and not free-form wires. In person You can go to any Wells Fargo store to initiate a wire. You must have signing authority on the account to initiate the request. Deadlines Incoming We accept incoming wires from the Federal Reserve until 3:00 p.m. PT and credit them the same day. Wells Fargo Bank, N.A. 15

18 Outgoing The opening time for outgoing wires is 5:00 a.m. PT for all wire types regardless of origination channel. We provide the cutoff times, which may vary based on wire type and initiation method, in the following table. We process requests we receive after our deadlines on the next business day. Wire cutoff times (PT) Origination channel Domestic Book Drawdown request International (U.S. dollar and foreign currency) Request for Transfer (RFT) Tax payment Online and mobile 2:30 p.m. 5:00 p.m. 2:30 p.m. 2:30 p.m. (USD) 2:00 p.m. (FX) 5:00 p.m. 1:30 p.m. Automated standing transfer 2:30 p.m. 5:00 p.m. 2:30 p.m. 2:30 p.m. 2:30 p.m. 1:00 p.m. Reporting You can access detailed current and previous day information on incoming and outgoing wires through our online Wire Transfer Detail, Previous Day, and if enrolled in our Intraday Composite reports and through our Direct BAI file transfer service. Below is a sample of the information included in these reports, which can vary slightly by report type: Customer name or account name and number Wire amount Processing date and time Receiving or originating bank Correspondent bank, Fed, or SWIFT reference number Internal reference or confirmation number You can tailor the online reports to show as much or as little detail as you need. Reports are available for download in BAI V2, CSV, and Excel format, and to view in HTML and PDF format. You can also receive optional notifications* of rejected, successful and unsuccessful outgoing wires, and incoming wires by , fax, or text message (or all three). *Additional fees may apply. Security We recommend dual custody for initiating free-form wires and for creating or maintaining wire templates online. With dual custody, we require a second user s approval of the free-form wire and wire templates before they take effect. If you elect to use single custody, you will need to enroll in our Secure Validation service. This service provides you with an added layer of security without requiring Wells Fargo Bank, N.A. 16

19 another user s approval when completing free-form wire initiation or template maintenance. Each time you initiate a free-form wire or perform template maintenance, you ll select from a list of enrolled phone numbers to receive a six-digit validation code that you ll enter online to complete the request. Scalable processing platform Our nationwide funds transfer platform meets both your current and future volume demands. As you grow and your needs evolve, we can quickly configure our systems to handle any increased volume, up to 10 times our current processing loads, with the same speed and efficiency. Geographically dispersed sites If an emergency or disaster happens, we have multiple processing sites that are strategically located across the nation and use the same processing platform to ensure efficient data backup and recovery of core wire processing functions. Consistent service quality We re widely recognized for the quality of our wire services. For example, in the 2014 Phoenix-Hecht Large Corporate and Middle Market Quality Indexes, we earned A+ grades for: Timeliness of incoming wire notification Outgoing wire features and capabilities We also earned A+ grades for our web-based information capabilities. Positive Pay The City currently uses positive pay. Positive pay With positive pay, we identify checks that may be fraudulent or unauthorized by matching checks presented against your account for payment to the check issue information you provide us. We report positive pay exceptions to you through our online banking portal. It s quick and easy to view images and make pay or return decisions through our online banking portal. You can also use our mobile service to access images and make your positive pay decisions. Teller positive pay is included with all positive pay accounts. Account Reconciliation Plan The City currently uses partial reconcilement. With our Account Reconciliation Plan (ARP) and automated reporting service, the City can quickly and efficiently reconcile your disbursement accounts with your internal accounting records. In addition, it helps you detect and reduce your exposure to check fraud. Wells Fargo Bank, N.A. 17

20 Benefits Reduces accounting costs and increases productivity Improves cash control and provides faster, more accurate information Increases audit control Minimizes both internal and external fraud losses Partial ARP With this service, we provide the City with an ARP statement. You can also request a variety of optional reports including Paid Checks, Stop Payments, and several others. You can receive these reports daily, weekly, or monthly in PDF, Excel, CSV, flat file text (transmission), and paper formats. You use the statement or optional reports to reconcile your account and identify any exceptions. Optional reporting Our information reporting system is fully integrated with our online portal, making it easy for your staff to access all relevant reports and information online. With Partial ARP, you can customize your account reconciliation to match your accounting needs by choosing which optional reports you need from the 14 we list in the following table. ARP optional reports Paid Checks Outstanding Checks* Posted Items Deposit Location Credits Bank Originated Entries Stop Payments Reversed Checks Issue Notices Not Received Matched Paid Items Voids and Cancels* Issues This Cycle* Prior Payments* Unpaid Checks *Only available with Full ARP. Only available with Full ARP or Partial ARP with Positive Pay. The following are samples of our most commonly requested optional reports, shown in PDF format. You can also receive optional reports in Excel, CSV, and flat file text (transmission) formats. Paid Checks Wells Fargo Bank, N.A. 18

21 Outstanding Checks Stop Payments Voids and Cancels.. Returned items Processing returned items can be a burden on your staff. However, you can improve the efficiency of your process with handling instructions, reporting, or electronic returns that help you reconcile, research, and collect on returned items. Processing During implementation, you ll tell us whether you will follow our standard processing instructions or whether you want to set up special instructions.* Standard instructions Our standard processing instructions are to: Mail all returned items (originals or image replacement documents) and standard notices by U.S. mail to the statement address on our system Post all returned items to the depository account in one lump sum per day Debit the depository account for chargebacks Automatically redeposit non-wells Fargo items of less than $300 that are returned for nonsufficient funds (NSF) or uncollected funds (UCF); we cannot redeposit items returned for any other reason. Special instructions Examples of special instructions* the City can set up are to: Wells Fargo Bank, N.A. 19

22 Post separate debits for each returned item to the depository account Automatically redeposit all items (regardless of amount) returned for NSF or UCF Redeposit all Wells Fargo items less than a predetermined dollar amount Mail physical items or additional copies of the debit advice to an alternate address Chargeback items to an account other than the depository account Key additional data (such as maker name, phone number, and address) on the advice *Additional fees apply for some special instructions. Online reporting and images Information reporting Reduce the time spent researching, analyzing, and recording returned payments. You can access same day and previous day reports with detailed information about your returned items. The HTML format of the report includes links to item images. You can also access the same day report through your mobile device. Decisioning Begin your collection efforts on the same day we receive returned items. View your returned items beginning at 6:00 a.m. PT and change the default disposition (chargeback or redeposit) by 4:30 p.m. PT. Notification Receive an notification when we process returned items or when items are available for decisioning. This prompts the City to sign on to the portal to view the detailed return reports or to review and decision returned items. Images Access returned items images and detailed information the next business day after we receive the items; information is available up to 180 days. Transmission reporting Data transmission Receive a transmission file (in flat or NACHA file format ) including keyed data for both returned checks and ACH transactions. Image transmission Receive a transmission of returned check images, associated index information, and detailed information through our Image File Import service. You can import these files into your internal or a third-party image archive. The files consist of an XML formatted file containing index information and a zipped image file containing associated images in JPEG or TIF format. NACHA format requires enrollment in our ACH check conversion service. Wells Fargo Bank, N.A. 20

23 Electronic returns Automatically convert eligible paper returned items into ACH debits. This allows us to make up to two re-presentment attempts (instead of only one with the paper deposit process), which can increase your collection rates. Consumer checks of less than $2,500 that are returned for NSF or UCF are eligible for this service. Online reporting The City currently views previous day reports through Wells Fargo s online banking portal. Our Treasury Information Reporting service delivers online, customizable information reporting for all your account activity. With a single sign-on, you can view, print, or download your balances and transactions and view check images on select reports for review in minutes. You can choose from a number of standard reports that provide current and previous day information, including comprehensive balance, summary, and transaction detail, as well as reports on specific transaction types. Reports can be downloaded as needed into your accounting, treasury workstation, or spreadsheet applications. Download and viewing options vary by report, but can include BAI V2, CSV, Excel, HTML, and PDF. Current day An additional option is our current day (intraday) reporting which includes the following transaction types: incoming and outgoing domestic and international wire transfer, ACH debits and credits, controlled disbursement summary and detail, remote deposits with detail, lockbox deposits with availability, lockbox detail, and cash letter deposits with availability. Our standard storage provides access to seven calendar days of history. We also offer optional extended storage of 30, 60, or 90 calendar days. We update current day information multiple times throughout the day. We report transactions that post, and we update current ledger and available balances, on a real-time basis; the exact times depend on the specific transaction. Previous day Our previous day reporting includes all transaction types that post to your accounts. Our standard storage provides access to seven calendar days of history. We also offer optional extended storage of 30, 60, 90, or 120 calendar days. We update previous day information reporting by 3:30 a.m. PT each banking day. Mobile If you need to view reports while you are on the go and away from your desk, we offer a mobile service as an extension of our single sign-on portal. We designed our mobile reports specifically for viewing on the small screens of mobile devices. We extract key Wells Fargo Bank, N.A. 21

24 information from the reports, including intraday and previous day summary and detail account information, and present it to you for easy viewing. Alerts Event messaging is an optional service that complements our online information reporting service. You can receive critical information alerts by , fax, or text message about: ACH received and return activity Controlled disbursement totals Incoming and outgoing wires Intraday balances Positive pay exception activity Returned items Unauthorized incoming ACH transactions Based on your direction, we can notify you immediately, once every hour, once every two hours, once a day, or twice a day. Available reports We offer a variety of online reports and statements to support your treasury management activity. The table below describes all statements and reports that are available to you through our Treasury Information Reporting service. Intraday reports Description ACH Origination ACH Receive ACH Return/NOC (notification of change) Deposit Detail E-Box EDI Payment Detail Intraday Composite Provides summary information by ACH company ID for ACH files that you submit for processing. It also includes detailed information on accepted or rejected transactions as well as the ACH settlement number. If you use single item settlement, you will see a settlement entry for each transaction. Details all ACH transactions we receive that will post to your account at the end of the current day. Includes detailed information (including settlement information) by ACH company ID for all ACH returns and notifications of change (NOCs) for transactions you have originated. NOCs include corrected information and addenda records. Lists all electronically-made check deposits. Allows you to review and post payments that originate through an online bill pay service. Provides both ACH and EDI payment data in a comprehensive report format, and includes all addenda records for supported segment types as well as settlement information. You can access EDI-formatted payment and remittance information on the same day it posts to your account. Provides balance, summary, and detailed transaction Wells Fargo Bank, N.A. 22

25 information, updated on a real-time basis. Intraday Position Intraday Return Item Detail Lockbox Availability Lockbox Detail Wire Transfer Detail Previous day reports Shows an aggregated intraday cash position across all accounts you select, including total balances and total debits and credits. Offers detailed information on checks that are going to be charged back to a customer s account for reasons such as nonsufficient funds or stopped payment. Lists summary-level information for lockbox deposits, including float, on an intraday basis. Provides remitter information about payments you receive within a lockbox deposit. Lists comprehensive current day memo-posted detail for all outgoing and incoming wires, grouped by type: book transfers, domestic wires, and international wires. Description ACH Customer Activity Express Balance Month-to-Date Balance Previous Day Composite Previous Day Return Item Cycle reports and statements ARP Statements and Reports ARP File Posting Confirmation ARP Data Query Report DDA Cycled Statement Includes settlement information and adjustment detail, as well as a summary of return activity. It also shows details of reversals, deletions, and rejects. Gives you a snapshot of previous day information, including balances, transaction summaries, images for each check transaction, and transaction details for your bank accounts. Provides a daily summary of account balances, aggregate float, and total transactions that posted to your accounts for the month-to-date, prior month, or a specific date range. Provides a complete view of previous day information, including balances, transaction summaries, images for each check transaction, and transaction details for your accounts. Allows you to view details and images of returns after they are charged to your account. Description Includes your ARP statement and detailed transaction reporting on 14 optional reports. Shows a summary and details of your account reconciliation activity by date, including check issues, cancels, and voids, as well as stop payment requests, releases, and renewals. Allows you to perform a query of your ARP data and download the results in CSV or Excel. Details checking activity the day after your statement cycle closes. *For Money Market Mutual Fund Stagecoach Sweep customers only. Investment products are not FDIC-insured, are not deposits of or guaranteed by the bank, and may lose value. Deposit and credit products are offered by Wells Fargo Bank, N.A. Member FDIC. Wells Fargo Bank, N.A. 23

26 Business Elite Card The City is a current user of the bank s Business Elite card. The Wells Fargo Business Elite Card is a powerful business tool that gives you the features and flexibility you need. Give your business real purchasing power. With credit lines up to $100,000, you can obtain the spending limit you need to manage your business expenses. Manage expenses with spending controls. Limit where and how your employees use their business credit cards. Get rewarded for your business spending. Earn rewards on every purchase, with every card. With the optional Wells Fargo Business Card Rewards program (optional) you ll only pay a $75 annual program fee for Rewards Points option or $50 annual program fee for Cash Back Only option. Access detailed spending reports. With Business Elite Online Reporting, you can create spending reports by category, employee, and merchant. Use reports to track employee expenses and identify cost reduction opportunities. Save money. There is no annual card fee, no inactivity fee, and no additional fees for employee cards. Competitive rates. Get purchases rates as low as Prime % to Prime %. Plus, enjoy an interest-free grace period of 25 days. Wells Fargo Business Online. Access your account anytime, anywhere online. Automatic Payments. Have your credit card bill payments made automatically from your business checking account. Lockbox services Wells Fargo is one of the largest and most established providers of lockbox services in the nation. We ve been processing lockbox payments since You can choose from 19 sites strategically located across the U.S. This broad coverage means your payments can arrive at our lockbox site and we can begin processing them a day or two sooner than if you use a more geographically distant site. We recommend using our San Francisco location. You can streamline your remittance processing with our efficient and cost-effective lockbox services. Wholetail lockbox You can use a single lockbox to process payments accompanied by an OCR-scannable document, as well as payments you receive with non-scannable documents, such as checkand-invoice, and check-only payments. Our service combines the technological advantages of high-speed retail lockbox processing with the flexibility and data collection capabilities of low-volume wholesale lockbox processing. Wells Fargo Bank, N.A. 24

27 Combine automated and manual processing Capture most of your remittance data automatically by using scannable documents; you save money by reducing the amount of manual data entry required to create your data transmission file. At the same time, we provide manual data entry for your nonscannable remittance documents and create an integrated data transmission file. Update your accounts receivable You can receive an electronic transmission of your remittance detail and update your accounts receivable system, treasury workstation, or ERP platform automatically. We build the transmission to your specifications for frequency and format, including standard BAI and EDI layouts. Additionally, we can accommodate most custom formats. Additional efficiencies You can benefit from other efficiencies that work in conjunction with your lockbox. Online bill payment consolidation Online bill payments are a convenient, simple, and paperless way for your customers to pay you. The multistep validation and handling features of our E-Box service help minimize exceptions while maximizing your straight-through processing rate. Please refer to the product description in Section E. You can post payments automatically. We ll merge your customers online bill payment data, apply additional data transformations, and generate a consolidated data file that is compatible with your accounts receivable system. Our service accepts payments from many bill service providers, as well as from consumer credit counseling centers and walk-in bill payment providers. Virtual lockbox You can scan checks and payment-related documents you receive at your office, and send them electronically to your lockbox. We integrate these items into your lockbox processing stream as part of your lockbox deposit. The same data capture, data entry, image file requirements, and processing rules that apply to your lockbox items will also apply to those you submit to us as images. E-Bill Express E-Bill Express is an Electronic Bill Presentment and Payment (EBPP) and Electronic Invoice Presentment and Payment (EIPP) product that enables the City to offer the ability for your consumers to make online payments and view their bills online. The website is branded to your look and feel and is accessed through a link on your existing website. Our E-Bill Express product is standardized, yet highly configurable. The City chooses the options that best fit your business, such as payment channels, payment types, presentment options, TEL payments, enrolled or one-time payments. Wells Fargo Bank, N.A. 25

28 Benefits Reduces Customer s receivables expenses to distribute bills/invoices Reduces Customer s receivables expenses to collect payment Provides alternative payment options for their consumers Improve cash flow and posting time Reduces DSO (Days Sales Outstanding) Visibility of future-dated payments Reporting You can download reports from our online portal and you can receive a remittance file transmission. Online reports are available 24 hours a day in real time. We send your secure remittance file four hours after your daily cutoff time. You can separate reports by the following categories: Payment type Payment channel Biller account number Payor name Payment amount range Date range The following workflow diagrams the flow of information for our service. How E-Bill Express works Wells Fargo Bank, N.A. 26

29 Wells Fargo Merchant Services It s important for you to know you are working with a trusted provider who has experience and knowledge in the merchant services industry. With this knowledge and experience comes a deep-rooted understanding of your challenges and needs. Our authorization system supports a wide range of communication interfaces, including MPLS, VPN, satellite, dial-up, internet, and wireless. We own and manage the end-to-end transaction delivery network. In 2015, we supported 3.38 billion credit and debit transactions. With us, you authorize and settle your transactions using a comprehensive authorization system that provides a fast, reliable, and fully redundant solution for all of your electronic payment transactions. Further, Wells Fargo Merchant Services has Value Added Reseller (VAR) relationships with more than 200 vendors providing a broad variety of processing products and services to meet almost any of your payment processing needs. We provide processing for credit and debit cards, PIN-based debit, check verification, gift cards, and other payment services for any size business. We serve more than 185,000 customers located in every state in the U.S. In 2015, we processed more than $283 billion in credit and debit card sales volume. Why we re different Simply stated, our consultative approach is different from our competitors. Because our wholesale merchant solution team is part of treasury management, we take time to help ensure all your receivables solutions, including card processing, work with all of your other treasury management services. We, as a team, are focused on maximizing your cash flow and working capital, whether that includes managing Interchange expense through process improvements or by providing next business day funding to your Wells Fargo bank accounts. Our wholesale merchant solutions team includes sales consultants, implementation project managers, and merchant services relationship managers. Throughout the entire process we will recommend solutions, processing methods, and best practices to keep a fair cost and to help ensure your overall cash flow and working capital is improved. After review of your current merchant statements, we believe we can provide you savings of approximately $7,000 annually. PayCard Due to low volume, our PayCard program is not an optimal and cost effective solution for the City. Payroll direct deposit You can deposit your employees payroll, expense reimbursements, and other work-related payments directly into their checking or savings accounts through ACH. Process When the City submits an electronic file of payment information in a format approved by NACHA, we read it and, following your instructions, deliver payroll entries to your Wells Fargo Bank, N.A. 27

30 employees accounts. With one- and two-day settlement, salaries are immediately available in your employee s accounts on the morning of payday. With same-day settlement, salaries are available in your employee s accounts by the end of their financial institution s business day. Deadline You can send direct deposit files anytime 24 hours a day, 7 days a week, although we have established deadlines for processing. The following table lists the deadlines for all settlement options. Origination method On-us sameday settlement* Transit sameday settlement One-day settlement Two-day settlement Direct origination Consolidated payables transmission 6:00 p.m. PT 6:00 a.m. PT and 10:00 a.m. PT 5:30 p.m. PT 6:00 a.m. PT and 10:00 a.m. PT 6:00 p.m. PT 9:00 p.m. PT 5:30 p.m. PT 5:30 p.m. PT Online 4:00 p.m. PT 6:00 a.m. PT and 10:00 a.m. PT 6:00 p.m. PT 6:00 p.m. PT *Both the originating account and receiving account must be Wells Fargo accounts. The $25,000 transaction limit for NACHA s Same Day Rule does not apply to on-us transactions. Available only for credit transactions of $25,000 or less. Transactions of more than $25,000, international transactions (IAT), and debit transactions are not eligible. The transaction will be credited by the receiving financial institution by the end of their business day. At this time, the U.S. federal government is not participating in NACHA s Same Day ACH Rule. Debit transactions will be eligible on September 15, Wells Fargo Bank, N.A. 28

31 If you send a file after the established cutoff time, or with an effective date on a holiday or weekend, we ll process it on the next business day. Section E: Additional information Consolidated receivables Receivables Manager With our consolidated receivables service, Receivables Manager, you can post payments automatically to your ERP platform or accounts receivable system when you receive an electronic receivables file from us. This consolidated file helps accelerate posting while reducing the number of errors caused by manual data entry. Your file can contain receivables data from any combination of the payment types listed in the following table. Payment types ACH Online bill payments Electronic billing service Remote deposit Image cash letter Wires Lockbox Wells Fargo Bank, N.A. 29

32 How it works We translate your receivables data and deliver it to you in a format compatible with your ERP platform or accounts receivable system. Our service is compatible with most proprietary accounting and ERP solutions, including Oracle and SAP. We can also accommodate many custom and proprietary file formats. Flexible file options Delivery Our transmission platform offers a variety of communication protocols including: HTTPS FTP over SSL (FTP/S) Secure FTP over SSH (S-FTP) FTP with PGP AS2 Wells Fargo Bank, N.A. 30

33 Formats The following table lists the formats we support. Formats ANSI X (Payment Order or Remittance Advice) Modified NACHA ANSI X (Lockbox) Proprietary and custom formats (by request) BAI Wells Fargo standard file format ISO XML format* Wells Fargo flat file formats Simplified Universal *In pilot. Standard formats We deliver files in standard and custom formats. Using a standard format can minimize your implementation cost and time, and you can choose a different format for each payment type. If you cannot work with one of our standard formats, we can develop a custom format for you. Flat file formats We also offer two flat file formats the universal and simplified formats. The universal format contains comprehensive EDI detail for ACH payments you receive. The simplified format contains data available in STP 820, which is also a simplified EDI format for received ACH payments. ISO XML We implemented the ISO XML format in early This is a new industry file format, and we are actively participating in the initiative to standardize it. When you receive your information in this format, it streamlines <<clientshort>> s integration and reconciliation process because you are receiving the same information from all banks that use the ISO XML format. File availability We process your files Monday through Friday (excluding holidays). Because some payment types have multiple processing runs and available release times, you can choose to receive more than one file each day. Wells Fargo Bank, N.A. 31

34 Choose one or more of the following release times for each file you request. Your file will be available within one hour of the time or times you select. Release times (PT) 4:00 a.m. 9:00 a.m. 1:00 p.m. 5:30 p.m. 5:00 a.m. 10:00 a.m. 2:00 p.m. 9:00 p.m. 6:00 a.m. 11:00 a.m. 3:00 p.m. 7:00 a.m. 11:30 a.m. 4:00 p.m. 8:00 a.m. 12:00 p.m. 4:30 p.m. Future enhancements Consolidated receivables through our online banking portal Our consolidated receivables service will soon allow you to automate more of your accounts receivable processing and manage exceptions through our online banking portal. Features include: Advice matching the systematic matching of the City s received payments and remittance data ACH repair the ability to repair ACH remittance data Wire repair the ability to repair wire remittance data Decisioning the City can perform a return or repair to payment transactions We began the pilot for this new service in 2016; we are currently accepting pilot customers. E-Box service Online bill payments are a convenient, simple, and paperless way for your customers to pay you. The multistep validation and handling features of our E-Box service help minimize exceptions while maximizing your straight-through processing rate. You can post payments automatically. We ll merge your customer s online bill payment data, apply additional data transformations, and generate a consolidated data file that is compatible with your accounts receivable system. Our service accepts payments from many bill service providers, as well as from consumer credit counseling centers and walk-in bill payment providers. How it works When you sign up, we ll notify the online service providers in our network* that you can receive payments through our E-Box service. We ll consolidate your payments and post a single ACH credit to your account. *We connect to all major originating endpoints and an extensive network of third-party originators. Wells Fargo Bank, N.A. 32

35 Multistep validation To improve the quality and standardization of the file you receive, you can instruct us to use one or more validation routines to identify, filter out, and repair invalid payments or other types of exceptions. Payments that have errors or exceptions will be suspended. You ll then either decision them online (optional) or instruct us to return them to the originator. The following table shows several examples of the validation routines the City can choose from. Validation routine Description Account mask Check digit * Cross-reference database processing Positive file processing Stop file processing Confirms that the inbound account number matches your billing account number structure. Uses a mathematical equation to determine if an account number is valid. Translates consumer-initiated account numbers we receive and corrects the account number prior to validation and processing. This database can correct inaccurate account information your customer enters and can make account number changes that may occur due to a merger, acquisition, or system change. Compares inbound account numbers to a file of valid account numbers you provide. Compares inbound account numbers to a file of unacceptable accounts you provide. *Applies to credit card billers. Exception handling You can manage your electronic payment transactions and perform research using our online exception management service. Wells Fargo Bank, N.A. 33