Copyright © 2015 ADP, LLC. Proprietary and Confidential. Alamo Area Council of Governments February 25, 2016

Copyright © 2015 ADP, LLC. Proprietary and Confidential. 2  Strategic long-term outlook  Proactive management vs reactive  Streamline & Modernize Back Office Administration & Platforms  Enhance compliance around payroll and HR practices  Deliver a greater service to AACOG programs AACOG Goals and Strategic Initiatives

Copyright © 2015 ADP, LLC. Proprietary and Confidential. 3 Lack of Standardization Manual Processes Multiple Disparate Systems Lack of Actionable Data Processing Errors/Changes Compliance Costs ACA/W2s/940&941/1099s etc. Software Updates & Training Current State Payroll / HR

Copyright © 2015 ADP, LLC. Proprietary and Confidential. 4 Current Processes & Platforms © Copyright 2011 ADP, Inc. Proprietary and Confidential Information 4 Manual SEAM Manual OAG Manual Time & Labor Management Vista Payroll Vista et al Human Resource System Vista Benefit Admin Broker consultation & Vista SEAM Manual GL FMS3 Safety In House Training Trackstar Reports Crystal Reports, Excel et al Recruiting Spectrum TCDRS Manual Leave Tracking Manual

Copyright © 2015 ADP, LLC. Proprietary and Confidential. 5 Technology limited to licensed users – Additional users purchased at an additional cost – Traditionally an expensive model employed by much larger employers (large upfront investment and labor intensive integration costs) 7 IT/285 employees vs. 2 IT/980 employees (outsource day to day/tactical IT functions, use IT employees for strategic initiatives) Annual Maintenance Costs Upgrades/Enhancements – Implementation process & costs (included for some, not for others) – Cost of upgrade – Moore’s Law Silos prohibit maximum efficiency – Management of multiple vendors/contracts/negotiations Risk of non-compliance – Increased chance of errors – Leave Tracking, etc. Labor intensive – Doesn’t fully leverage technology Some payroll reports are printed and annotated Complex/manual processes – Made “easy” with practice but often challenging to cross train. 14 total (pre/post) payroll reports created for each payroll period. (Almost 1 payroll report created for every day of the year: 364) Limitations & Long Term Exposure with Current Platforms/Processes

Copyright © 2015 ADP, LLC. Proprietary and Confidential. 6 Opportunity Streamline & Modernize Administration ADP Workforce Now is a scalable, integrated & best in class technology that will help AACOG consolidate vendors 8>4. Enhance Compliance Reporting ADP solutions are designed to help employers manage their regulatory responsibilities, and minimize employment-related, ACA, and tax and payment compliance risk. Cross Training ADP provides comprehensive training solutions for our products. Most ADP courses are eligible for RCHs, CPE credits, and continuing education units (CEUs). Deliver a Greater Service By freeing HR to focus on strategy they can work to drive the mission through the organization’s most critical asset: it’s people.

Copyright © 2015 ADP, LLC. Proprietary and Confidential. 7 Investment & ROI (in thousands) Current Workforce Now Technology Payroll HR Suite of Products $ $79.9 Implementation Fees ADP Promotional Savings-(16.8) - Existing Software Savings-(41.9)(17.9) Administrative Cost/(Efficiencies) -(69)(167) Total Costs Savings(127.7)(201.7) (184.9) Net Cost/(Savings)(29.9)(121.8) (105.0) Cumulative Savings($29.8)(151.6)(273.4)(395.2)($500.2)

Copyright © 2015 ADP, LLC. Proprietary and Confidential. 8 1 Decision to Partner with ADP 2 Collect Required Documents to begin 3 Assign ADP Project Management Team 4 Implementation Project Kick off Call is completed by March 31, 2016 Next Steps June 17, 2016 Time & Attendance July 1, 2016 Payroll, HR, Recruiting & Performance Management August 1, 2016 Benefits Administration & ACA September 1, 2016 Compensation Management & HCM Analytics Implementation completion dates 5 Data collection & system configuration begins April 1, 2016

Copyright © 2015 ADP, LLC. Proprietary and Confidential. Thank You ADP® Named a Leader in Gartner's Magic Quadrant for Payroll BPO Services ADP’s technology was named as the leading Human Capital Management(HCM) solution in the Business Innovation category of its 2015 Technology Innovation Awards. ADP® named to the Forbes list in multiple years.