2024-29 BMO Bank (formerly Bank of the West) - Banking & Merchant Services Amend 1MEMORANDUM
DATE: September 14, 2024
TO: Jon McMillen, City Manager
FROM: Claudia Martinez, Finance Director
Cv "&a
CALIFORNIA -
RE: BMO Bank, N.A (formerly Bank of the West) - Banking and Merchant Services
Please list the Contracting Party / Vendor Name, any change orders or amendments, and the type of services to be provided. Make
sure to list any related Project No. and Project Name.
Authority to execute this agreement is based upon:
❑✓ Approved by City Council on August 6, 2024 - Consent Item No. 9
❑ City Manager's signing authority provided under the City's Purchasing & Contracting Policy
[Resolution No. 2023-008] for budget expenditures of $50,000 or less.
❑ City Manager's signing authority provided under the City's Personnel Policy Section 3.2 for
temporary employment positions.
❑ Department Director's or Manager's signing authority provided under the City's Purchasing Policy
[Resolution No. 2023-008] for budget expenditures of $15,000 and $5,000, respectively, or less.
Procurement Method (one must anal
Bid ❑ RFP ❑ RFQ ❑ 3 written informal bids
.❑ Sole Source ❑ Select Source F Cooperative Procurement
Requesting department shall check and attach the items below as appropriate:
❑ Agreement payment will be charged to Account No.: N/A
❑ Agreement term: Start Date June 5, 2024
❑ Amount of Agreement, Amendment, Change Order, etc.
End Date
$ N/A
June 5, 2029
REMINDER: Signing authorities listed above are applicable on the aggregate Agreement amount, not individual
Amendments or Change Orders!
NOTE:
Insurance certificates as required by the Agreement for Risk Manager approval
Approved by: Oscar Mojica Date: 9/18/2024
Bonds (originals) as required by the Agreement (Performance, Payment, etc.)
Conflict of Interest Form 700 Statement of Economic Interests from Consultant(s)
Review the "Form 700 Disclosure for Consultants" guidance to determine if a Form 700 is required pursuant
FPPC regulation 18701(2)
Business License No.
Expires:
Requisition for a Purchase Order has been prepared (Agreements over $5,000)
AMENDMENT NO. 1
TO AGREEMENT FOR CONTRACT SERVICES
WITH BMO BANK, N.A. (FORMERLY BANK OF THE WEST)
This Amendment No. 1 ("Amendment No. 1") to Agreement for Contract Services
("Agreement") is made and entered into as of the 5t" day of June, 2024, ("Effective Date")
by and between the CITY OF LA QUINTA ("City"), a California municipal corporation and
BMO Bank, N.A. ("Consultant").
RECITALS
WHEREAS, on or about June 4, 2019, the City and BMO Bank, N.A. (formerly
Bank of the West) entered into an Agreement to provide services related to banking and
merchant services. The term of the Agreement expires on June 4t", 2024 ("Initial Term");
and
WHEREAS, City and Contracting Party have mutually agreed to amend Section
3.4 Term of the Agreement to extend the term for five additional years from June 5, 2024
through June 5, 2029; and
WHEREAS, City and Contracting Party mutually agree to amend Section 2.1 -
Contract Sum as detailed in Exhibit B of this Amendment No. 1.
NOW THEREFORE, in consideration of the mutual covenant herein contained, the
parties agree as follows:
AMENDMENT
In consideration of the foregoing Recitals and the covenants and promises
hereinafter contained, and for good and valuable consideration, the sufficiency and
receipt of which are hereby acknowledged, the parties hereto agree as follows:
1. Section 2.1 Contract Sum — shall be amended as detailed in revised Exhibit B of
this Amendment No. 1.
2. Section 3.4 Term shall be amended to read as follows:
3.4 Term. Unless earlier terminated in accordance with the provisions in Article 8.0 of this
Agreement, the term of this agreement shall commence on June 4, 2019, and terminate
on June 4, 2024 ("Initial Term"). This Agreement is being extended effective June 5, 2024,
and shall terminate on June 5, 2029 ("Extended Term").
In all other respects, the original Agreement shall remain in effect.
IN WITNESS WHEREOF, the City and Consultant have executed this Amendment
No. 1 to the Agreement on the respective dates set forth below.
CITY OF LA QUINTA CONSULTANT:
a California municipal corporation
,-�INMcMILLEN, City Manager
City of La Quinta, California
Dated: O� 11-T 17--o-z-4
ATTEST:
MONIKA RADEVA, City Jerk
City of La Quinta, California
APPROVED AS TO FORM:
WILLIAM H. IHRKE, City Attorney
City of La Quinta, California
BMO Bank, N.A.
/-/Ov.TB 0,12441k_
Tito Ibarrola, Director, Senior
Government Relationship
Manager
Dated: 9/4/2024
Exhibit B
Schedule of Compensation
With the exception of compensation for Additional Services provided for in Section
2.3 of this Agreement, the Contracting Party shall be compensated in accordance with
the attached Exhibit B.
Account Name
Model Name
Model Billing Cycle
Currency
CITY OF LA QUINTA
CITY OF LA QUINTA
May, 2024
USD
Collected Balance Disclosure
Ledger
-Float
= Collected
Positive Collected
Negative Collected
Investable Balance Disclosure
Average Positive Collected Balance
- Reserve requirement
= Investable Balance
Required Balance Disclosure
Balance Required For Services
= Total Required Balance
Balance Position Disclosure
Balance Position Basis
- Total Required Balance
= Balance Available for Other Service
EXHIBIT B
Schedule of Compensation
Proposed
Earnings Credit Amount 3,790.33
- Analyzed fees 1,073.56
Net Analyzed Result 2,716.77
Net analyzed credit of 2,716.77 will be waived.
$1.00 of fees is equal to 674.65 of Investable Balance.
Investable Balance receives a proposed earnings credit of 1.750000%.
Account Number
Model Analysis Date
BMO Q
XXXXXX1851
6/10/2024
2,613,966.50
56, 806.60
2,557,159.90
2,557,159.90
0.00
2,557,159.90
0.00
2,557,159.90
724, 277.25
724,277.25
2,557,159.90
724,277.25
1,832,882.65
Page 1 of 6
Account Name CITY OF LA QUINTA Account Number XXXXXX1851
Model Name CITY OF LA QUINTA Model Analysis Date 6/10/2024
Model Billing Cycle May, 2024
Currency USD
Services Performed
Proposed
Proposed
Proposed
Volume
Price
Total Fee
DEPOSITORY SERVICES
GENERAL ACCOUNT SERVICES
GENERAL SERVICES
CORPORATE ACCOUNT MAINTENANCE
4
10.0000
40.00
ITEMS DEPOSITED
20
0.0500
1.00
OTHER CORPORATE CREDITS
1
0.3500
0.35
CORPORATE DEPOSIT
16
1.2000
19.20
ON US DEPOSIT ITEMS
0
0.0500
0.00
CHECKS DEPOSITED NOT ON US
0
0.0500
0.00
CHECK REJECTS
11
0.5500
6.05
Subtotal - GENERAL SERVICES
66.60
CORPORATE MONEYACCOUNTS
ITEMS DEPOSITED-MMDA-CORP
0
0.0500
0.00
Subtotal - CORPORATE MONEY MARKET
0.00
ACCOUNTS
DISBURSEMENT SERVICES
REG CHECKING ACCT CHECK DEBIT
237
0.0700
16.59
NON -CHECK DEBITS
0
0.2000
0.00
DEPOSIT ADJUSTMENT DR
0
5.0000
0.00
Subtotal - DISBURSEMENT SERVICES
BUSINESS NOW
16.59
•
ITEMS DEPOSITED -CORP NOW
0
0.0500
0.00
Subtotal - BUSINESS NOW ACCOUNTS
0.00
ANCILLARY SERVICES
ACH CREDIT
0
0.0800
0.00
ACH DEBIT
0
0.0800
0.00
Subtotal - ANCILLARY SERVICES
MISCELLANEOUS
0.00
SERVICES
ACCOUNT ANALYSIS -PAPER STMT
1
0.0000
0.00
REG CHECKING -PAPER STMT
1
0.0000
0.00
E -ANALYSIS STMT # OF ACCESSES
4
0.0000
0.00
BALANCE ADMIN FEE
2,614,000
0.1000
261.40
Subtotal - MISCELLANEOUS SERVICES
261.40
STOP PAYMENT SERVICES
AUTOMATED STOPS ONLINE
60 MTH AUTO STOP PAYMENT
0
30.0000
0.00
Subtotal - AUTOMATED STOPS ONLINE
0.00
RETURN ITEMS COLLECTIONS
PROCESSINGGENERAL
RETURN ITEMS CHARGED BACK
1
10.0000
10.00
Subtotal - GENERAL PROCESSING
10.00
EXCEPTION•
RETURN IMAGES RETRIEVED
2
2.5000
5.00
Subtotal - EXCEPTION PROCESSING
5.00
MISCELLANEOUS SERVICES
CHECKS PAID NON -CUSTOMER
0
6.0000
0.00
Page 2 of 6
Account Name CITY OF LA QUINTA Account Number XXXXXX1851
Model Name CITY OF LA QUINTA Model Analysis Date 6/10/2024
Model Billing Cycle May, 2024
Currency USD
Services Performed
Proposed
Proposed
Proposed
Volume
Price
Total Fee
Subtotal - MISCELLANEOUS SERVICES
0.00
TREASURY MANAGEMENT SERVICES
ACCOUNT RECONCILEMENT
RECONCILEMENT PLANS
FULL RECON MAINTENANCE
1
35.0000
35.00
FULL RECON PER ITEM
234
0.0000
0.00
AUTOMATED VOIDS/ ADDS
1
0.1500
0.15
Subtotal - RECONCILEMENT PLANS
35.15
POSITIVE PAY E-MAIL ALERTS
2
0.0000
0.00
POSITIVE PAY MAINTENANCE
2
50.0000
100.00
CHK ISSUANCE FILE TRANSMISSION
5
0.0000
0.00
POSITIVE PAY PLAN
234
0.0600
14.04
MISMATCH POSITIVE PAY AUTO
1
2.5000
2.50
POSITIVE PAYEE MONTHLY MAINT
1
0.0000
0.00
POSITIVE PAY -PAYEE PER ITEM
234
0.0300
7.02
Subtotal - POSITIVE PAY
116.54
RECONCILEMENTFULL ACCOUNT
VOID/CANCEL
0
0.0600
0.00
OUTPUT FILE TRANSMISSION
0
75.0000
0.00
INPUT ISSUE ELECTRONIC
0
0.0600
0.00
BASE FEE
0
35.0000
0.00
Subtotal - FULL ACCOUNT RECONCILEMENT
0.00
POSITIVE PAY
PAYEE POSITIVE PAY - PAID ITEM
0
0.0300
0.00
PAYEE BASE FEE
0
55.0000
0.00
EXCEPTION ITEMS
0
0.7500
0.00
CHECK RETURN
0
3.0000
0.00
Subtotal - POSITIVE PAY
0.00
DISBURSEMENT IMAGING
INDEX RETRIEVALS
57
0.0000
0.00
DEPOSITED IMAGES -RETRIEVED
1
1.0000
1.00
CHECK VOLUME -INQUIRY ONLY
3
0.0550
0.17
INQUIRY IMAGES RETRIEVED
6
0.0550
0.33
Subtotal - DISBURSEMENT IMAGING
1.50
ZERO BALANCE ACCOUNTS
AUTOMATIC TRANSFER ACCT
1
8.0000
8.00
AUTOMATIC DEBIT
22
0.0000
0.00
AUTOMATIC CREDIT
22
0.0000
0.00
Subtotal - ZERO BALANCE ACCOUNTS
8.00
REMOTE DEPOSIT CAPTURE
REMOTE DEP-DEPOSIT
20
0.6500
13.00
REMOTE DEP-DEPOSIT
15
0.6500
9.75
REMOTE DEP-DEPOSIT
35
22.75
REMOTE DEP-CHECK ITEMS
100
0.0400
4.00
REMOTE DEP-CHECK ITEMS
110
0.0400
4.40
REMOTE DEP-CHECK ITEMS
210
8.40
PREMIER MAINTENANCE
1
45.0000
45.00
Page 3 of 6
+ 00
Account Name CITY OF LA QUINTA
Account Number
0.0800
XXXXXX1851
Model Name CITY OF LA QUINTA
Model Analysis Date
0.0800
6/10/2024
Model Billing Cycle May, 2024
1
1.2500
1.25
Currency USD
3
25.0000
75.00
Services Performed
Proposed
Proposed
Proposed
NOC CORRECTION
Volume
Price
Total Fee
PREMIER ADDITIONAL ACCT MAINTENANCE
2
8.0000
16.00
Subtotal - REMOTE DEPOSIT CAPTURE
92.15
COMMERCIAL VAULT SERVICES
ONLINE ACH ITEMS
9
0.0800
VAULT CHECK DEPOSIT
0
1.1000
0.00
Subtotal - COMMERCIAL VAULT SERVICES
ONLINE ACH MAINTENANCE
1
0.00
CURRENCY/COINDEPOSITED
CASH VAULT DEPOSITS - CV2
0
1.1000
0.00
CURRENCY DEP - STD (PER $100) - CV2
252
0.1500
37.80
Subtotal - CURRENCY/COIN DEPOSITED
ONLINE ACH ITEMS
EL
37.80
COIN & CURRENCY SERVICE -BRANCH
Subtotal - ONLINE BANKING FOR BUSINESS
NON -STD STRAP ORDERED
4
0.0900
0.36
BASE ORDER FEE -BRANCH
1
4.0000
4.00
Subtotal - COIN & CURRENCY ...
Subtotal - ORIGINATION-
---I
4.36
SWEEP SERVICES
MONEY MARKET INVESTMENT SWEEP
0
100.0000
0.00
Subtotal - SWEEP SERVICES
0.00'
CORP SWEEP-INVESCO/ AIM FUNDS
1
135.0000
135.00
'ubto' POR,"
135.001
AUTOMATED CLEARING HOUSE SERVICES
ELECTRONIC (ACH) CREDITS
0
0.0800
0.00
ELECTRONIC (ACH) DEBITS
0
0.0800
0.00
DEBIT FILTER RECURRING
0
0.7500
0.00
ACH POS PAY COMPANY MONTHLY MAINTEN
0
20.0000
0.00
ACH POS PAY - PER EXCEPTION REPORTE
0
1.2500
0.00
Subtotal -AUTOMATED CLEARING HOUSE
=111
SERVICES
ACH DEBIT RECEIVED
47
0.0800
3.76
ACH CREDIT RECEIVED
246
0.0800
19.68
EPA -EXCEPTION ITEMS
1
1.2500
1.25
ACH FRAUD CONTROL MAINTENANCE
3
25.0000
75.00
ACH ORIGINATION
14
0.0000
0.00
NOC CORRECTION
2
0.0000
0.00
PREFUNDING MAINTENANCE
4
0.0000
0.00
Subtotal - GENERAL SERVICES
99.69
ONLINE ACH ITEMS
9
0.0800
0.72
ONLINE ACH REPORTS
4
0.2600
1.04
ONLINE ACH MAINTENANCE
1
18.0000
18.00
ONLINE ACH MAINTENANCE
3
0.0000
0.00
ONLINE ACH MAINTENANCE
4
18.00
ONLINE ACH ITEMS
250
0.0800
20.00
Subtotal - ONLINE BANKING FOR BUSINESS
39.76
ORIGINATION
ACH PPD CREDIT PRE -NOTES
1
0.0300
0.03
Subtotal - ORIGINATION-
---I
0.03
JNCLN I KA I WN MOL
Page 4 of 6
Account Name
Model Name
Model Billing Cycle
Currency
CITY OF LA QUINTA
CITY OF LA QUINTA
May, 2024
USD
Account Number
Model Analysis Date
XXXXXX1851
6/10/2024
Services Performed
Proposed
Proposed
Proposed
Volume
Price
Total Fee
CONCENTRATION CREDIT PRENOTES
1
0.0300
0.03
Subtotal - CONCENTRATION MODULE
0.03
ELECTRONIC DATA INTERCHANGE
COLLECTIONS
EDI
EDI/EFT CREDITS RCVD - CCD+
32
0.0800
2.56
EDI/EFT CREDITS RECEIVED - CTX
5
0.0800
0.40
Subtotal - EDI COLLECTIONS
2.96
DOMESTIC WIRE TRANSFER
INCOMING FED
WIRE TRANSFER CREDITS
1
0.0000
0.00
DOMESTIC WIRES CREDITS
1
8.0000
8.00
Subtotal - INCOMING FED
8.00
OUTGOING
ONLINE DOMESTIC WIRE
1
8.0000
8.00
ONLINE DOMESTIC WIRE
3
8.0000
24.00
ONLINE DOMESTIC WIRE
4
32.00
WIRE TRANSFER DEBITS
4
0.0000
0.00
FED WIRE ABA REPAIR
1
40.0000
40.00
Subtotal - OUTGOING FED
INTERNAL WIRE CREDIT ( ONLINE/ EDI)
0
8.0000
0.00
Subtotal - INTERNAL WIRE TRANSFERS
INTERNATIONAL WIRE TRANSFER
INTERNATIONAL•
INTERNATIONAL WIRES CREDITS
0
8.0000
0.00
Subtotal - INTERNATIONAL WIRE -INCOMING
I
INTERNATIONAL PRODUCT SERVICES
GENERAL SERVICES
CANADIAN CHECKS - USD
1
3.0000
3.00
Subtotal - GENERAL SERVICES
ONLINE BANKING FOR BUSINESS
BALANCE REPORTING
ONLINE USER FEE
9
0.0000
0.00
PREVIOUS DAY DR/CR ITEMS
760
0.0000
0.00
SAME DAY DR/CR ITEMS
683
0.0000
0.00
Subtotal - BALANCE REPORTING
�LISINESS NKIhN
BALANCE REPORTING MAINT
1
20.0000
20.00
ACCOUNTS REPORTED
4
12.5000
50.00
ONLINE ACCOUNTS -SAME DAY
1
70.0000
70.00
ONLINE ACCOUNTS -SAME DAY
3
45.0000
135.00
ONLINE ACCOUNTS -SAME DAY
4
0.00
ubtotal - BUSINESS BANKINC
50.00
BALANCE REPORTING ARCHIVE -2 YEAR
1
0.0000
0.00
BAL REPORTING PER TEMPLATE
9
0.0000
0.00
CSV DOWNLOADS
1
0.0000
0.00
Page 5 of 6
Account Name CITY OF LA QUINTA Account Number XXXXXX1851
Model Name CITY OF LA QUINTA Model Analysis Date 6/10/2024
Model Billing Cycle May, 2024
Currency USD
Services Performed
CSV DOWNLOADED TRANSACTIONS
Subtotal - CORPORATE
RECEIVABLES MGMT-ZERO BALANCING
ZBA CONCENTRATION ACCOUNT FEE
ZBA TIER ACCOUNT FEE
Subtotal - RECEIVABLES MGMT-ZERO BALANCING
TREASURYNOW
PORTAL ACCESS FEE
Subtotal - TREASURYNOW
INFO REPORTING
Proposed
Volume
790
1
0
0
Proposed
Price
0.0000
8.0000
8.0000
Bundle Def
Proposed
Total Fee
0.00
0.00
8.00
0.00
8.00
0.00
0.00
IMAGES VIEWED
0
0.0550
0.00
CURRDAY MONTHLY ACCT FEE
0
Bundle Def
0.00
ANALYSIS STATEMENT
0
0.3500
0.00
DEPOSIT STATEMENT
0
0.3500
0.00
ACH SPECIAL REPORTS
0
0.3500
0.00
ARP SPECIAL REPORTS
0
0.3500
0.00
Subtotal - INFO REPORTING
0.00
IMAGE EXPRESS SERVICES
CD PRODUCED - PER CD
0
12.0000
0.00
IMAGES WRITTEN TO CD
0
0.0300
0.00
ONLINE MAINTENANCE
0
40.0000
0.00
Subtotal - IMAGE EXPRESS SERVICES
0.00
WIRE TRANSFER SERVICES
INCOMING WIRE - AUTO
0
8.0000
0.00
INCOMING WIRE - MANUAL
0
8.0000
0.00
Subtotal - WIRE TRANSFER SERVICES
0.00
CHECK DEPOSITED NON ENCODED
NON -ENCODED ON US
0
0.0500
0.00
NON -ENCODED / FOREIGN ITEMS
0
3.0000
0.00
NON -ENCODED LOCAL AND NON -LOCAL
0
0.0500
0.00
Subtotal - CHECK DEPOSITED NON ENCODED
0.00
Total Analyzed
1,073.56
Total Waived
232.02
Grand Total this Cycle
1,073.56
Page 6 of 6
City of La Qu i nta CONSENT CALENDAR ITEM NO.9
CITY COUNCIL MEETING' August 6, 2024
STAFF REPORT
AGENDA TITLE: APPROVE AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT
SERVICES WITH BMO BANK, N.A. FOR BANKING AND MERCHANT SERVICES
RECOMMENDATION
Approve Amendment No. 1 to Agreement for Contract Services with BMO Bank, N.A. for
Banking and Merchant Services; and authorize the City Manager to execute the
Agreement.
EXECUTIVE SUMMARY
• The City contracts with BMO Bank, N.A. (BMO) for banking and merchant services.
• Amendment No. 1 (Amendment 1), included as Attachment 1, proposes to extend
the term of the agreement for five additional years through fiscal year (FY)
2028/29.
FISCAL IMPACT
Based on current service levels, the monthly banking fees are estimated to be $1,074
and are anticipated to be covered by a deposit balance earning a credit rate of 1.75%.
Prices are based on per-unit charges and are set for the five-year term of the contract
(Exhibit B of Attachment 2). These prices have increased due to market pricing but have
been offset by an increased earnings credit rate (ECR).
BACKGROUND/ANALYSIS
Following a request for proposals (RFP) in 2019, the City contracted with BMO (formerly
Bank of the West) for banking and merchant services. The contract expired on June 4,
2024, and facilitates various financial transactions, including deposits, disbursements,
merchant processing, and other essential banking services.
BMO has demonstrated high performance in the following areas:
• Service Reliability: Consistent and dependable banking operations without
significant downtime.
• Security: Robust security measures to protect City funds and sensitive financial
information.
• Cost Efficiency: Competitive pricing structure with minimal fees, resulting in cost
savings for the City.
• Customer Service: Responsive and helpful support staff address City inquiries
and issues promptly.
179
BMO has consistently met or exceeded the service level agreements outlined in the
contract. BMO has a robust online platform, and the City has added new services such
as a Corporate Sweep Account, which has helped the City take advantage of short-term
investment opportunities while maintaining sufficient liquidity for daily operations. Given
the satisfactory performance of BMO, the cost-effective nature of the existing contract,
and the benefits of continuity in service, staff recommends Council approve the proposed
Amendment 1 extending the term for five years.
ALTERNATIVES
Staff does not recommend an alternative.
Prepared by: Claudia Martinez, Finance Director
Approved by: Jon McMillen, City Manager
Attachment: 1. Amendment No. 1 to Agreement for Contract Services
180