Agenda packet — Beaumont City Council, August 2, 2022 (part 2 of 5)

Perricone Interim Rate – Extension
July 2022
in business expenses over time allowing for stable and continued operations at the facility.

3. Exceed Planned Revenue. The requested Interim Rate results in more revenue to the City from Perricone than anticipated in the City’s Rate Study.

4. Continuing a Solid Partnership. Since completion of the interim treatment system, Perricone has not been in violation of any local limits, and Perricone staff have developed a strong working relationship with City staff.

5. Improved Quality. Perricone is delivering effluent that exceeds the anticipated interim quality for both BOD and TDS. This will continue through the extended interim rate period.

In support of this extension request, MKN has prepared updates to the summary tables provided in the original Interim Rate Letter. Table 1 provides an overview of the updated rate analysis, with the requested extension.

TABLE 1

RATE ANALYSIS
Description Units
Interim Period
FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 7/1/23 to
12/31/23
PERRICONE WATER QUALITY AND FLOW(a)
Avg. Perricone Flow(b) gpd 125,000 125,275 109,606 104,902 105,000 105,000 BOD mg/L 3,450 3,200 2,000 1,245 1,420 1,420
TSS mg/L 283 363 1,140 720 410 410
TDS mg/L 4,800 3,667 2,800 1,800 1,200 1,200

ANNUAL COST BREAKDOWN FOR PERRICONE
Rate Increase(c) 6% 5% 5% 5% 5%
Flow Cost $/yr $172,995 $183,873 $168,946 $169,687 $178,378 $93,670 BOD Cost $/yr $591,503 $583,141 $334,876 $209,375 $251,036 $131,823 TSS Cost $/yr $67,083 $91,457 $263,904 $167,408 $100,212 $52,623 TDS Cost(d) $/yr $98,172 $72,464 $46,044 $24,908 $13,424 $6,712 Total Estimated Cost(e) $/yr $929,753 $930,935 $813,770 $571,378 $543,050 $284,828

REQUESTED INTERIM RATE
Rate $/hcf $2.64 $2.80 $2.94 $3.09 $3.24 $3.41
Revenue Generated(f) $/yr $161,029 $116,196 $196,365 $155,232 $166,237 $87,275 Difference from Potential $/yr $768,724 $814,738 $617,405 $416,146 $376,813 $197,553

Notes:
a) Water quality for FY 18/19 based on original Table 9 from Interim Rate Letter (March 2019); FY 19/20 based on average quarterly sampling from 8/1/19, 11/19/19 and 4/22/20; FY 20/21 based on average quarterly sampling from 11/18/20, 2/19/21 and 4/23/21; and FY 21/22 based on average quarterly sampling from 10/7/21 and 12/30/21. FY 22/23 based on most recent sampling and final period based on completion of final treatment.
b) Flow based on monthly billing information; calendar years 2019, 2020 and 2021 used for FY 19/20, 20/21 and 21/22, respectively.

Flows for FY 22/23 through end of term are based on average flow from January 2022 through June 2022. c) Rate increase from original Table 9 from Interim Rate Letter (March 2019) for FY 18/19 through FY 22/23. Increases in future years were kept consistent with final three years of rate period. d) TDS cost was not included in the 2018 Rate Study or related Proposition 218 public hearing notice. Charges were kept similar to original Table 9 which noted $0.12/lb over baseline of 500 mg/L. A factor of 50 percent is applied to the TDS loading due to the unique organic component of TDS.
e) “Total Estimated Cost” based on calculated unit cost for flow, BOD and TSS as shown in Figure 8 (Cost of Service) and Strength 270
Item 10.

Page 3 of 3 ends

Perricone Interim Rate – Extension
July 2022
Allocation Factors (Table 19). These rates are applied to the noted flow and strength for each year. f) Revenue based on payment information: 19/20 based on bills dated 1/2019 to 11/2019; 20/21 based on bills dated 2/2020 to 11/2020; and 21/22 based on bills from 2/2021 to 12/9/2021. Future years based on flow rate multiplied by Perricone effluent.

As noted above, the additional expenses by Perricone during the Interim Period ($4.0M) will continue to exceed the reduction in revenue from the City ($3.2M per Table 1). In addition, since the proposed interim rate extension includes annual increases consistent with the City’s Rate Study, the revenue received during the Interim Period will continue to exceed the revenue originally anticipated to be collected by the City from Perricone by approximately 20%.

For the interim period, in accordance with Section 2.4 of the Pretreatment Facilities Agreement, Perricone will be charged using the interim rates for actual flow discharged to the City collection system. Future flows included in Table 1 are provided as an estimate and may be subject to change based on actual system operation.

To reflect the updated implementation schedule, Table 2 is provided.

TABLE 2

IMPLEMENTATION SCHEDULE

ACTION MILESTONE
City Council Approval of Extension August 2022
Complete Sampling and Process Selection January 2022 to March 2022 30% Design and Design Build Contract Executed April 2022 to July 2022 Final Design and Permitting August 2022 to December 2022 Materials Procurement and Construction October 2022 to June 2023 Startup and Optimization July 2023 to August 2023
Sampling Program/ New SIU Discharge Permit September 2023 to December 2023 End of Interim Rate December 31, 2023

If you have any questions, please feel free to contact us by phone at (714) 213-9758 or by email at [email protected].

Sincerely,
MKN & Associates

Ryan Gallagher, PE
Principal
271
Item 10.

AMENDMENT TO PRETREATMENT FACILITIES AGREEMENT

THIS FIRST AMENDMENT TO PRETREATMENT FACILITIES AGREEMENT (“Amendment”) is made and effective as of the 2nd day of August 2022 by and between the CITY OF BEAUMONT (“CITY”), a general law city, and Beaumont Juice, Inc., a California Corporation, dba PERRICONE JUICES (the “Owner”) in consideration of the mutual promises and purpose contained herein, the parties agree as follow:

RECITALS

This First Amendment is made with respect to the following facts and purpose that the parties agree are true and correct:

A. On October 1st, 2019, the CITY and OWNER entered into that certain agreement entitled “PRETREATMENT FACILITIES AGREEMENT” (“Agreement”).

AMENDMENT

Section 1.1 Facilities Construction. Owner agrees to construct the improvements and facilities described in the letter from Owner’s engineering firm, MKN & Associates, dated July 8, 2022, entitled Perricone Interim Agreement Extension in a good and workman-like manner according to the Implementation Schedule therein. The estimated cost of the design and construction of the Facilities is also identified in the Perricone Interim Agreement Extension Letter. The Owner shall provide for the design, engineering, and construction of the Facilities at its sole cost and expense as provided hereinafter.

Section 1.9 Time for Completion. The Owner agrees that this Agreement is for the benefit of the City and the Owner and, Therefore, the Owner represents that it shall complete the Facilities as provided in the Perricone Juices Request for Extension Letter expiring December 31, 2023 (“Project Implementation Schedule”).

Section 2.4 Credit. Owner shall be subject to the sewer rates requested which are to be set at $3.24/HCF for the duration of July 1, 2022 through June 30, 2023 and a $3.41/HCF rate for the period of July 1, 2023 through December 31, 2023.

The recitals to this Amendment are deemed incorporated herein by this reference. All other terms of the Agreement not expressly amended by this Amendment shall remain in full force and effect. In the event of a conflict between the Agreement and this Amendment, this Amendment shall control.
[Signatures on following page]
272
Item 10.

SIGNATURE PAGE TO

CITY OF BEAUMONT

FIRST AMENDMENT

CITY:

CITY OF BEAUMONT

By: ________________________________
Lloyd White, Mayor
CONTRACTOR:

PERRICONE JUICES

By: ______________________________

Print Name: _______________________

Title: _____________________________

ATTEST:

By: __________________________
Nicole Wheelwright, Deputy City Clerk
APPROVED AS TO FORM:

By: ___________________________
John O. Pinkney, City Attorney

273
Item 10.

Staff Report

TO: City Council
FROM: Kari Mendoza, Administrative Services Director
DATE August 2, 2022
SUBJECT: Public Hearing to Consider the Placement of Delinquent Sewer Service Charges on The Property Tax Roll

Background and Analysis:

Pursuant to City of Beaumont Municipal Code Section 13.08.370 and 13.08.380, Resolution 2013-06 and Health and Safety Code section 5470 et seq., the City may collect delinquent fees or charges for commercial, single family residential, and multifamily residential sewer services on the property tax roll for those premises.

In accordance with Health and Safety Code (“H&S”) Section 5473, the City has prepared a written report which contains a description of each parcel of real property with delinquent fees and charges. This report is on file with the City Clerk and is attached as Exhibit A to the proposed resolution authorizing the collection of the delinquent fees and charges on the tax rolls. By approving the proposed resolution, the City Council would be authorizing the City to collect delinquent sewer service charges and fees on the tax roll in the same manner and at the same time as the general taxes.

Prior to approving the placement of the delinquent service charges and fees on the tax roll, H&S Section 5473 et seq. requires the City Council to conduct a public hearing.

Notice of this public hearing was provided in accordance with H&S Section 5473.1, by publishing a notice of the hearing in the Press Enterprise on July 18, 2022, and July 25, 2022. The notice of public hearing was also mailed to the owner(s) of each parcel for which charges will be placed on the tax roll.

During the public hearing the City Council shall hear and consider all objections or protests, if any, to the report and the placement of the charges on the tax roll. If the City Council finds that a majority of the parcel owners subject to the charges have submitted protests or appeared to protest, the report shall not be adopted and the charges must be collected separately from the tax roll. Upon the conclusion of the hearing, the legislative body may adopt, revise, change, reduce or modify any charge or overrule 274
Item 11.

any or all objections. The resolution placing the charges on the tax roll must be approved by a two-thirds vote of the City Council.

Fiscal Impact:

Approval of the resolution and collection of delinquent sewer service charges and fees on the Riverside County Auditor tax rolls will allow for the cost recovery of approximately $776,224.01.

Recommended Action:

Conduct a public hearing, and
Waive the full reading and adopt by title only, “A Resolution of the City Council of the City of Beaumont, California, Authorizing the Collection of Delinquent Sewage Service Fees and Charges on the Property Tax Roll.” Attachments:

A. Resolution – Delinquent Sewer Service Fees
B. Exhibit A to Resolution, 2022 List of Sewer Fee Delinquencies C. Public Notice
275
Item 11.

Resolution 2022-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEAUMONT,

CALIFORNIA, AUTHORIZING THE COLLECTION OF DELINQUENT

SEWAGE SERVICE FEES AND CHARGES ON THE PROPERTY TAX ROLL

Whereas, California Health and Safety Code Section 5473 et. seq. authorizes the City to adopt a resolution by two-thirds of the members of the City Council to collect delinquent sewer service charges and fees on the tax roll, in the same manner and at the same time as the general taxes; and

WHEREAS, Sewer service charge billing policies and procedures and sewer service billing cycles are established pursuant to Ordinance No. 648, (Section 13.08.3 20,

13.08.340, 13.08.350, and 13.08.360 of the Beaumont Municipal Code); and

WHEREAS, Section 13.08.370 and 13.08.380 and Resolution 2013-06, provides that the City may collect delinquent sewer services fees and charges on the property tax roll.

WHEREAS in accordance with Health and Safety Code Section 5473, City staff has prepared a written report, attached hereto as Exhibit A and on file with the City Clerk, which contains a description of each parcel of real property with delinquent solid waste handling fees and charges, and the amount of the delinquent fees and charges for each parcel; and

WHEREAS, in accordance with Health and Safety Code Section 5473.1, the City provided notice of a public hearing by publishing a notice in the Press Enterprise newspaper on July 18, 2022, and July 25, 2022, and by mailing a copy of the notice to the owner(s) of each parcel for which charges will be placed on the tax roll; and

WHEREAS, the City Council conducted a duly noticed public hearing on this matter on August 2, 2022, wherein it heard and considered all objections or protests, if any, to the report and the proposed placement of delinquent solid waste handling services charges and fees on the property tax roll.

NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Beaumont as follows:

SECTION 1: The above recitals are true and correct and are incorporated herein.

SECTION 2: The City approves the collection of the delinquent sewer service charges and fees via the tax roll in the same manner and at the same time as the general taxes. The City Clerk is directed to file with the county auditor a copy of the report prepared pursuant to Health and Safety Code Section 5473 attached hereto as Exhibit A, with a statement endorsed on the report over his or her signature that the report has been 276
Item 11.

adopted by the City Council and the county auditor shall enter the amounts of the charges against the respective lots or parcels of land as they appear on the current assessment roll.

MOVED, PASSED, and ADOPTED this 2nd day of August, 2022 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

______________________________
Lloyd White, Mayor

ATTEST:

_____________________________
Nicole Wheelwright, Deputy City Clerk

277
Item 11.

APN Balance APN Balance APN Balance
400-030-033 788.76$ 400-080-030 406.76$ 400-170-001 283.83$ 400-030-041 788.80$ 400-080-033 283.83$ 400-170-004 788.78$ 400-030-048 309.21$ 400-080-036 788.80$ 400-171-005 788.78$ 400-030-049 283.83$ 400-080-059 788.76$ 400-171-018 788.78$ 400-040-003 788.76$ 400-080-073 288.03$ 400-171-019 556.01$ 400-040-008 283.83$ 400-080-080 283.83$ 400-171-025 788.79$ 400-040-017 788.78$ 400-080-081 752.77$ 400-171-027 788.78$ 400-040-022 772.45$ 400-090-005 788.77$ 400-171-029 788.77$ 400-040-037 788.76$ 400-090-009 627.45$ 400-171-031 788.78$ 400-040-041 788.77$ 400-090-016 283.83$ 400-171-033 283.83$ 400-040-043 650.36$ 400-100-003 302.31$ 400-180-002 392.63$ 400-040-047 627.45$ 400-100-014 486.71$ 400-190-051 283.83$ 400-040-055 284.92$ 400-100-036 788.78$ 400-190-056 926.71$ 400-040-060 283.83$ 400-110-014 283.83$ 400-200-008 655.69$ 400-040-083 598.26$ 400-110-015 788.78$ 400-210-024 285.67$ 400-040-088 283.83$ 400-110-040 788.78$ 400-230-001 283.83$ 400-050-021 643.96$ 400-110-055 351.16$ 400-230-023 283.83$ 400-050-023 283.83$ 400-110-073 283.83$ 400-280-052 283.83$ 400-050-040 283.83$ 400-120-002 788.78$ 400-300-049 283.83$ 400-050-046 303.79$ 400-120-007 788.78$ 400-310-033 788.78$ 400-050-067 748.84$ 400-120-019 283.83$ 400-310-037 283.83$ 400-050-068 392.63$ 400-120-023 720.02$ 400-310-047 446.88$ 400-060-006 926.71$ 400-120-032 283.83$ 400-320-008 512.31$ 400-060-007 788.78$ 400-120-035 392.63$ 400-330-003 755.17$ 400-060-010 488.81$ 400-120-037 315.77$ 400-330-005 392.63$ 400-060-015 788.78$ 400-120-039 289.23$ 400-340-060 412.87$ 400-060-036 285.30$ 400-120-065 393.65$ 400-360-013 788.78$ 400-060-037 372.97$ 400-130-002 283.83$ 400-380-045 788.78$ 400-060-055 788.77$ 400-130-003 775.00$ 400-400-040 504.45$ 400-060-062 515.31$ 400-130-023 788.78$ 400-421-002 283.83$ 400-060-080 788.80$ 400-130-029 788.77$ 400-430-014 793.61$ 400-060-083 292.31$ 400-130-036 287.63$ 400-431-003 788.78$ 400-060-090 283.83$ 400-130-059 283.83$ 400-431-011 788.76$ 400-070-003 283.83$ 400-140-004 283.83$ 400-440-009 485.48$ 400-070-007 795.21$ 400-140-006 283.83$ 400-450-001 581.08$ 400-070-016 283.83$ 400-141-003 788.78$ 400-450-014 283.83$ 400-070-029 283.83$ 400-141-008 283.83$ 400-450-016 788.78$ 400-070-031 500.93$ 400-142-013 512.31$ 400-450-024 788.80$ 400-070-042 788.77$ 400-142-014 283.83$ 400-461-005 788.78$ 400-070-044 583.46$ 400-142-037 392.63$ 400-461-016 283.83$ 400-070-059 284.92$ 400-142-040 493.64$ 400-461-019 512.31$ 400-070-061 990.92$ 400-142-044 392.63$ 400-462-014 646.32$ 400-070-070 627.97$ 400-151-006 678.79$ 400-463-004 283.83$ 400-070-072 764.76$ 400-151-010 417.07$ 400-470-001 788.80$ 400-070-074 283.83$ 400-154-001 392.63$ 400-471-002 788.78$ 400-070-081 283.83$ 400-160-013 392.63$ 400-471-003 283.83$ 278
Item 11.

400-070-084 788.82$ 400-161-014 788.79$ 400-481-015 283.83$ 400-481-025 283.83$ 400-590-041 512.31$ 402-402-033 392.63$ 400-481-033 283.83$ 400-590-050 788.78$ 402-412-005 392.63$ 400-482-005 788.76$ 400-600-015 1,055.15$ 404-022-016 788.78$ 400-482-026 283.83$ 400-600-025 788.77$ 404-022-021 400.86$ 400-482-029 283.83$ 400-600-026 788.75$ 404-024-005 788.78$ 400-482-034 788.75$ 400-610-006 392.63$ 404-030-009 926.71$ 400-490-001 643.96$ 400-610-022 643.96$ 404-032-007 788.78$ 400-490-004 512.31$ 400-610-026 303.83$ 404-032-008 788.78$ 400-490-006 788.78$ 400-610-027 347.31$ 404-032-015 283.83$ 400-490-008 283.83$ 400-610-036 788.78$ 404-040-004 788.78$ 400-490-015 698.84$ 400-620-002 283.83$ 404-040-012 283.83$ 400-490-020 788.78$ 400-620-015 283.83$ 404-040-021 788.78$ 400-491-007 283.83$ 400-620-020 384.92$ 404-041-012 283.83$ 400-500-008 788.78$ 400-620-034 788.78$ 404-041-017 788.78$ 400-500-010 788.78$ 400-630-002 788.77$ 404-041-020 750.12$ 400-501-005 283.83$ 400-630-006 402.44$ 404-041-022 283.83$ 400-510-008 283.83$ 400-630-019 788.78$ 404-041-029 643.96$ 400-510-013 295.44$ 400-630-031 283.83$ 404-041-033 788.78$ 400-510-018 307.93$ 400-630-050 283.83$ 404-042-014 283.83$ 400-510-025 788.78$ 400-630-054 814.99$ 404-042-019 435.69$ 400-511-015 283.83$ 400-630-063 716.38$ 404-042-025 392.63$ 400-511-019 503.88$ 400-670-004 561.27$ 404-043-007 788.78$ 400-511-021 788.81$ 400-681-023 283.83$ 404-050-002 283.83$ 400-540-003 664.99$ 402-151-023 283.83$ 404-051-001 283.83$ 400-541-022 512.31$ 402-151-026 522.96$ 404-053-013 655.69$ 400-541-026 305.57$ 402-320-026 788.79$ 404-060-006 788.78$ 400-541-028 381.08$ 402-332-009 788.78$ 404-060-007 788.78$ 400-542-014 926.71$ 402-333-002 788.80$ 404-063-006 283.83$ 400-552-008 924.22$ 402-333-014 788.78$ 404-070-006 359.26$ 400-552-012 283.83$ 402-333-016 788.78$ 404-071-009 788.78$ 400-553-005 788.78$ 402-333-021 788.78$ 404-071-017 353.72$ 400-560-007 788.77$ 402-333-057 984.62$ 404-071-021 392.63$ 400-561-003 926.71$ 402-341-001 634.52$ 404-071-026 283.83$ 400-561-009 788.78$ 402-341-029 392.63$ 404-071-029 398.38$ 400-561-011 788.78$ 402-342-014 283.83$ 404-080-011 283.83$ 400-561-012 1,063.19$ 402-343-008 797.00$ 404-081-004 396.26$ 400-561-013 788.77$ 402-351-010 788.78$ 404-081-009 788.78$ 400-561-031 643.96$ 402-351-016 283.83$ 404-090-005 788.78$ 400-561-049 733.77$ 402-352-001 512.31$ 404-090-008 283.83$ 400-562-003 788.76$ 402-352-006 788.78$ 404-090-012 788.78$ 400-562-013 788.78$ 402-352-011 788.78$ 404-092-011 693.79$ 400-562-017 326.71$ 402-381-003 643.96$ 404-093-004 596.71$ 400-570-037 283.83$ 402-391-009 283.83$ 404-093-009 788.78$ 400-580-020 788.78$ 402-391-023 528.98$ 404-093-042 283.83$ 400-590-005 283.83$ 402-393-002 283.83$ 404-120-008 368.78$ 400-590-027 788.78$ 402-393-007 788.78$ 404-120-012 513.44$ 279
Item 11.

400-590-035 392.63$ 402-402-021 788.78$ 404-120-021 788.78$ 404-121-009 283.83$ 408-101-031 402.31$ 408-160-060 788.78$ 404-121-013 788.78$ 408-101-032 368.47$ 408-170-006 788.78$ 404-121-018 283.83$ 408-101-050 283.83$ 408-170-021 283.83$ 404-150-005 788.78$ 408-101-062 283.83$ 408-180-008 512.31$ 404-151-007 656.78$ 408-101-070 512.31$ 408-180-010 301.52$ 404-160-007 283.83$ 408-102-012 392.63$ 408-180-016 319.29$ 404-160-019 555.84$ 408-102-020 788.78$ 408-180-023 788.78$ 404-161-001 283.83$ 408-102-043 553.45$ 408-190-003 323.96$ 404-161-004 656.78$ 408-102-052 283.83$ 408-190-013 283.83$ 404-161-007 850.06$ 408-102-054 788.78$ 408-190-040 707.82$ 404-170-007 788.78$ 408-102-058 788.78$ 408-190-051 788.78$ 404-170-013 643.96$ 408-111-007 511.09$ 408-190-052 283.83$ 404-180-003 568.78$ 408-111-009 788.78$ 408-200-012 788.78$ 404-183-002 788.78$ 408-111-019 788.78$ 408-200-023 926.71$ 404-211-004 788.78$ 408-111-020 391.89$ 408-201-001 427.90$ 404-211-007 392.63$ 408-111-021 402.31$ 408-201-012 392.63$ 404-213-001 283.83$ 408-111-025 788.78$ 408-201-023 633.46$ 404-213-004 512.31$ 408-111-029 770.09$ 408-201-026 283.83$ 404-213-011 763.65$ 408-111-040 450.41$ 408-202-012 733.20$ 404-213-016 788.78$ 408-111-061 788.78$ 408-202-013 788.78$ 404-220-005 368.13$ 408-111-071 331.31$ 408-210-012 788.78$ 404-220-013 788.78$ 408-111-079 788.78$ 408-210-017 788.78$ 404-220-017 788.78$ 408-112-002 541.28$ 408-211-004 788.78$ 404-222-025 788.78$ 408-112-006 788.78$ 408-211-010 392.63$ 404-223-001 788.78$ 408-112-014 788.78$ 408-211-021 392.63$ 404-223-005 283.83$ 408-112-016 788.78$ 408-213-001 443.60$ 404-223-006 283.83$ 408-112-022 511.44$ 408-213-002 512.31$ 404-223-021 380.43$ 408-112-026 283.83$ 408-220-005 510.49$ 404-224-004 878.36$ 408-112-028 449.28$ 408-220-012 595.18$ 404-224-019 788.78$ 408-112-032 633.88$ 408-220-016 293.72$ 404-225-001 784.19$ 408-112-038 341.81$ 408-222-003 618.04$ 404-225-006 788.78$ 408-112-040 788.78$ 408-222-004 643.96$ 404-225-007 407.62$ 408-112-053 1,063.20$ 408-222-019 283.83$ 404-240-017 788.78$ 408-150-001 283.83$ 408-222-027 788.78$ 404-250-023 599.14$ 408-150-009 283.83$ 408-230-031 788.78$ 404-251-002 926.71$ 408-150-012 788.78$ 408-230-035 655.65$ 404-251-006 788.78$ 408-150-018 788.78$ 408-230-045 392.63$ 406-241-019 283.83$ 408-150-022 392.63$ 408-230-047 283.83$ 406-251-010 564.10$ 408-150-027 512.31$ 408-231-008 788.78$ 406-272-015 283.83$ 408-150-043 356.05$ 408-231-013 774.01$ 408-010-023 681.35$ 408-150-062 788.78$ 408-233-002 677.17$ 408-011-010 283.83$ 408-160-009 283.83$ 408-233-019 292.00$ 408-011-025 283.83$ 408-160-025 283.83$ 408-233-033 283.83$ 408-011-027 404.05$ 408-160-046 512.31$ 408-233-040 362.97$ 408-101-009 695.80$ 408-160-047 283.83$ 408-240-002 283.83$ 408-101-026 392.63$ 408-160-051 1,023.93$ 408-240-005 689.92$ 280
Item 11.

408-101-028 283.83$ 408-160-054 940.26$ 408-240-033 491.25$ 408-241-003 542.21$ 413-500-015 788.78$ 413-582-012 487.18$ 408-242-013 788.78$ 413-500-016 805.72$ 413-582-021 788.78$ 408-242-014 663.45$ 413-501-001 424.04$ 413-650-006 283.83$ 408-242-020 643.96$ 413-501-011 283.83$ 413-651-001 926.71$ 408-242-022 412.32$ 413-501-017 283.83$ 413-651-013 283.83$ 408-242-029 392.63$ 413-510-002 283.83$ 413-651-020 610.56$ 408-243-013 1,053.11$ 413-510-010 283.83$ 413-660-009 788.78$ 408-243-029 283.83$ 413-511-003 392.63$ 413-660-011 788.78$ 408-250-005 283.83$ 413-511-008 283.83$ 413-660-019 788.79$ 408-250-025 788.78$ 413-511-010 515.93$ 413-670-004 788.78$ 408-250-032 788.78$ 413-511-015 315.78$ 413-681-028 788.78$ 408-251-002 788.78$ 413-511-017 498.76$ 413-681-030 512.31$ 408-251-006 283.83$ 413-511-020 283.83$ 413-690-014 788.78$ 408-252-001 788.78$ 413-511-039 788.78$ 413-690-022 788.78$ 408-252-009 283.83$ 413-512-002 788.78$ 413-691-012 283.83$ 408-252-025 283.83$ 413-512-007 283.83$ 413-691-016 926.71$ 408-261-009 1,063.19$ 413-520-009 283.83$ 413-691-028 283.83$ 408-262-001 392.63$ 413-520-010 283.83$ 413-692-001 377.68$ 408-262-002 283.83$ 413-520-021 612.63$ 413-692-002 788.78$ 408-270-017 788.78$ 413-520-039 1,063.22$ 413-692-003 788.78$ 408-271-014 283.83$ 413-520-051 392.63$ 413-692-004 283.83$ 408-271-025 410.53$ 413-521-013 926.71$ 413-700-014 443.65$ 408-271-026 788.78$ 413-531-013 283.83$ 413-700-018 512.31$ 408-280-022 533.96$ 413-532-006 512.31$ 413-700-021 788.78$ 408-281-011 283.83$ 413-540-006 283.83$ 413-700-022 643.96$ 408-282-034 283.83$ 413-541-001 382.34$ 413-700-024 788.78$ 408-282-041 283.83$ 413-541-003 1,030.36$ 413-700-028 384.92$ 408-282-049 392.63$ 413-541-008 283.83$ 413-700-038 283.83$ 408-282-052 392.63$ 413-541-011 283.83$ 413-710-007 283.83$ 408-291-030 283.83$ 413-541-018 506.30$ 413-710-018 926.71$ 408-291-048 318.93$ 413-550-002 788.78$ 413-710-023 674.33$ 408-291-050 382.00$ 413-550-003 788.78$ 413-710-037 788.78$ 408-291-059 283.83$ 413-550-016 283.83$ 413-710-039 512.31$ 408-300-004 788.78$ 413-550-023 392.63$ 413-710-043 788.78$ 408-300-008 283.83$ 413-551-010 788.78$ 413-710-044 678.76$ 408-301-004 283.83$ 413-551-012 283.83$ 413-710-048 283.83$ 408-301-007 283.83$ 413-551-022 519.09$ 413-710-052 392.63$ 408-301-011 750.12$ 413-551-024 788.78$ 413-710-056 314.48$ 408-302-023 788.78$ 413-561-022 512.31$ 413-721-002 788.78$ 408-302-034 283.83$ 413-570-001 283.83$ 413-721-006 284.92$ 408-310-011 788.78$ 413-570-006 283.83$ 413-722-014 788.78$ 408-390-014 283.83$ 413-570-008 291.33$ 413-722-019 788.78$ 408-400-063 392.63$ 413-571-008 283.83$ 413-722-028 894.47$ 408-400-073 392.63$ 413-572-002 392.63$ 413-722-037 283.83$ 408-410-003 788.78$ 413-572-005 491.82$ 413-722-045 788.78$ 413-491-011 512.31$ 413-572-007 283.83$ 413-730-012 567.36$ 281
Item 11.

413-493-004 788.78$ 413-582-010 788.79$ 413-730-026 643.96$ 413-741-002 788.78$ 413-860-001 284.92$ 414-195-010 642.37$ 413-750-013 283.83$ 413-860-041 654.74$ 414-201-003 392.63$ 413-750-015 788.78$ 413-872-004 283.83$ 414-201-015 788.78$ 413-752-005 788.78$ 413-881-006 525.83$ 414-202-005 283.83$ 413-760-012 283.83$ 413-882-013 374.32$ 414-202-008 643.96$ 413-760-018 788.78$ 413-891-001 606.62$ 414-211-008 788.78$ 413-760-020 788.78$ 413-892-005 643.96$ 414-211-015 1,064.12$ 413-760-022 745.21$ 413-892-006 788.78$ 414-212-005 457.40$ 413-760-029 283.83$ 413-892-011 283.83$ 414-212-006 364.76$ 413-761-001 283.83$ 413-892-016 788.78$ 414-212-007 392.63$ 413-761-006 283.83$ 413-893-004 283.83$ 414-212-014 788.78$ 413-761-010 317.76$ 414-032-010 788.78$ 414-212-015 972.50$ 413-761-011 788.78$ 414-033-003 500.35$ 414-220-001 788.78$ 413-770-011 788.78$ 414-033-004 283.83$ 414-220-004 283.83$ 413-771-008 788.78$ 414-033-005 788.78$ 414-220-006 1,757.51$ 413-771-015 788.78$ 414-033-013 788.78$ 414-220-025 788.78$ 413-771-021 788.78$ 414-034-002 283.83$ 414-220-026 788.78$ 413-800-007 283.83$ 414-034-014 788.78$ 414-231-005 283.83$ 413-801-007 551.71$ 414-034-015 788.78$ 414-231-006 788.78$ 413-810-002 283.83$ 414-042-004 283.83$ 414-231-020 283.83$ 413-811-009 283.83$ 414-141-004 643.96$ 414-231-039 788.78$ 413-811-013 788.78$ 414-142-007 373.13$ 414-231-041 643.96$ 413-811-023 788.78$ 414-142-024 788.78$ 414-241-001 788.78$ 413-820-001 926.71$ 414-142-026 788.78$ 414-241-005 788.78$ 413-820-013 446.42$ 414-142-029 283.83$ 414-241-019 506.62$ 413-821-001 283.83$ 414-143-008 788.78$ 414-241-065 518.77$ 413-821-003 569.55$ 414-150-007 788.78$ 414-252-002 283.83$ 413-821-004 788.78$ 414-150-011 788.78$ 414-252-003 788.78$ 413-832-007 329.82$ 414-150-030 314.81$ 414-252-018 356.33$ 413-832-012 283.83$ 414-161-001 788.78$ 414-252-020 283.83$ 413-832-018 313.06$ 414-161-015 643.96$ 414-252-043 283.83$ 413-840-001 643.96$ 414-161-017 284.31$ 414-252-045 391.16$ 413-840-011 392.63$ 414-162-008 381.78$ 414-261-010 484.92$ 413-840-015 894.45$ 414-162-015 643.96$ 414-261-038 788.78$ 413-840-017 283.83$ 414-163-006 283.83$ 414-262-004 788.78$ 413-840-019 283.83$ 414-172-004 392.63$ 414-262-012 391.92$ 413-840-027 283.83$ 414-181-019 512.31$ 414-263-004 384.64$ 413-840-028 283.83$ 414-181-027 283.83$ 414-271-003 347.31$ 413-840-030 294.92$ 414-181-035 283.83$ 414-272-006 643.96$ 413-841-001 283.83$ 414-181-037 788.78$ 414-272-025 283.83$ 413-841-006 283.83$ 414-183-002 392.63$ 414-283-013 487.18$ 413-841-022 283.83$ 414-183-006 788.78$ 414-283-019 788.78$ 413-841-025 512.31$ 414-183-009 788.78$ 414-283-036 788.78$ 413-850-011 401.96$ 414-192-003 788.78$ 414-290-030 788.78$ 413-850-015 862.22$ 414-192-008 458.77$ 414-290-031 283.83$ 413-850-016 286.22$ 414-192-012 788.78$ 414-290-041 643.96$ 282
Item 11.

413-850-023 283.83$ 414-193-012 296.65$ 414-301-008 374.92$ 414-301-025 393.96$ 414-390-029 628.85$ 415-081-010 788.78$ 414-301-037 334.68$ 414-390-035 283.83$ 415-092-005 299.09$ 414-301-042 283.83$ 414-390-048 555.68$ 415-100-006 816.71$ 414-311-001 772.64$ 414-390-050 1,181.96$ 415-100-031 392.02$ 414-311-008 344.28$ 414-400-008 1,011.93$ 415-100-032 658.04$ 414-311-009 283.83$ 414-400-020 283.83$ 415-100-038 788.78$ 414-311-013 788.78$ 414-400-039 283.83$ 415-100-051 660.51$ 414-320-001 283.83$ 414-400-041 788.78$ 415-100-064 788.78$ 414-320-009 293.72$ 414-400-070 283.83$ 415-100-065 926.71$ 414-320-017 283.83$ 414-420-064 852.03$ 415-100-067 788.78$ 414-320-018 788.78$ 414-510-012 788.78$ 415-100-081 283.83$ 414-320-028 788.78$ 414-510-034 940.26$ 415-100-082 579.71$ 414-320-029 788.78$ 414-510-037 283.83$ 415-111-005 788.78$ 414-320-034 283.83$ 414-510-041 318.25$ 415-111-009 788.78$ 414-320-035 384.92$ 414-520-001 1,244.70$ 415-111-012 342.91$ 414-320-036 788.78$ 414-520-004 1,233.68$ 415-111-018 283.83$ 414-320-039 415.70$ 414-520-008 283.83$ 415-112-006 788.78$ 414-320-052 334.04$ 414-520-060 283.83$ 415-121-008 401.96$ 414-320-058 512.31$ 414-520-062 585.69$ 415-121-011 283.83$ 414-320-060 283.83$ 415-031-005 283.83$ 415-121-019 283.83$ 414-330-010 643.96$ 415-031-024 283.83$ 415-121-020 283.83$ 414-330-012 788.78$ 415-042-002 788.78$ 415-121-024 512.31$ 414-330-017 910.60$ 415-042-020 419.10$ 415-122-003 391.31$ 414-330-023 716.17$ 415-042-028 647.33$ 415-122-010 788.78$ 414-330-026 283.83$ 415-042-039 788.78$ 415-122-014 289.13$ 414-331-007 788.78$ 415-042-041 788.78$ 415-130-012 283.83$ 414-331-017 788.78$ 415-042-042 577.96$ 415-130-013 283.83$ 414-340-008 788.78$ 415-042-043 283.83$ 415-130-029 788.78$ 414-340-018 788.78$ 415-043-008 788.78$ 415-130-030 637.15$ 414-340-026 302.32$ 415-043-009 788.78$ 415-130-046 788.78$ 414-341-007 716.76$ 415-043-017 788.78$ 415-142-023 788.78$ 414-341-018 788.78$ 415-043-021 283.83$ 415-150-008 512.31$ 414-341-019 494.67$ 415-043-023 415.48$ 415-150-018 788.78$ 414-350-001 634.63$ 415-050-045 392.63$ 415-150-047 791.03$ 414-350-003 788.78$ 415-050-046 588.25$ 415-150-061 283.83$ 414-350-007 284.92$ 415-050-047 788.78$ 415-161-021 788.78$ 414-350-019 788.78$ 415-050-067 283.83$ 415-162-001 788.78$ 414-350-020 1,026.18$ 415-050-078 297.29$ 415-162-038 283.83$ 414-350-021 788.78$ 415-061-044 1,063.93$ 415-162-045 788.78$ 414-350-028 494.67$ 415-070-003 788.78$ 415-171-002 788.78$ 414-350-035 788.78$ 415-070-008 283.83$ 415-171-004 392.63$ 414-350-045 788.78$ 415-070-011 283.83$ 415-171-013 283.83$ 414-380-022 283.83$ 415-070-014 283.83$ 415-171-019 364.76$ 414-380-035 1,064.61$ 415-070-040 283.83$ 415-171-030 788.78$ 414-380-040 283.83$ 415-071-007 283.83$ 415-172-022 283.83$ 414-380-047 1,093.96$ 415-071-008 283.83$ 415-172-026 529.88$ 283
Item 11.

414-390-024 283.83$ 415-080-009 788.78$ 415-180-005 788.78$ 415-180-029 283.83$ 415-281-017 788.78$ 418-072-051 793.39$ 415-180-032 788.78$ 415-281-021 283.83$ 418-073-002 546.30$ 415-180-037 788.78$ 415-282-002 788.78$ 418-073-005 973.82$ 415-180-041 788.78$ 415-282-026 788.78$ 418-081-013 788.78$ 415-191-003 788.78$ 415-291-026 377.09$ 418-082-005 283.83$ 415-191-005 590.13$ 415-291-032 788.78$ 418-082-017 788.78$ 415-191-029 485.90$ 415-292-020 1,482.55$ 418-083-001 283.83$ 415-191-030 788.78$ 415-293-012 392.63$ 418-083-006 283.83$ 415-191-031 392.63$ 415-301-004 788.78$ 418-083-013 319.88$ 415-191-033 283.83$ 415-302-024 512.31$ 418-084-003 283.83$ 415-192-022 309.45$ 415-321-005 304.54$ 418-084-007 788.78$ 415-200-001 788.78$ 415-321-010 314.78$ 418-084-008 297.86$ 415-200-003 442.72$ 415-321-018 283.83$ 418-084-009 595.88$ 415-200-005 788.78$ 415-322-004 544.60$ 418-084-018 345.62$ 415-200-010 481.66$ 415-332-002 283.83$ 418-092-019 788.78$ 415-200-011 788.78$ 417-052-001 283.83$ 418-093-009 3,041.48$ 415-210-001 502.22$ 417-054-002 623.78$ 418-102-014 788.78$ 415-210-011 788.78$ 417-054-006 1,670.24$ 418-102-019 319.93$ 415-210-015 283.83$ 417-055-003 283.83$ 418-112-006 1,346.97$ 415-210-048 283.83$ 417-056-002 5,066.27$ 418-112-008 402.32$ 415-221-002 788.78$ 417-056-011 578.30$ 418-112-009 788.78$ 415-221-022 788.78$ 417-062-007 788.78$ 418-113-006 406.68$ 415-222-022 1,055.15$ 417-063-002 520.00$ 418-113-010 788.78$ 415-224-010 788.78$ 417-080-004 283.83$ 418-121-002 283.83$ 415-224-011 369.95$ 417-122-007 788.78$ 418-121-004 22,535.09$ 415-224-012 788.78$ 417-123-004 1,063.21$ 418-200-019 3,818.85$ 415-231-015 788.78$ 417-140-011 788.78$ 419-211-002 788.78$ 415-231-019 313.13$ 417-140-026 788.78$ 419-211-010 497.75$ 415-232-006 325.31$ 417-140-029 595.18$ 419-213-003 535.89$ 415-233-012 788.78$ 418-020-006 788.78$ 419-213-020 788.78$ 415-233-015 392.63$ 418-020-018 1,482.55$ 419-213-034 788.78$ 415-233-022 283.83$ 418-020-033 6,362.94$ 419-213-035 788.78$ 415-233-024 788.78$ 418-021-002 318.69$ 419-213-039 514.45$ 415-241-003 283.83$ 418-031-007 392.63$ 419-221-018 788.78$ 415-241-005 584.48$ 418-031-008 788.78$ 419-222-011 788.78$ 415-242-003 788.78$ 418-031-015 418.78$ 419-222-012 283.83$ 415-242-007 643.96$ 418-031-017 364.76$ 419-222-014 364.76$ 415-251-009 283.83$ 418-032-002 283.83$ 419-222-015 364.76$ 415-251-013 294.62$ 418-032-024 788.78$ 419-222-018 472.66$ 415-252-006 454.68$ 418-043-017 1,482.55$ 419-222-023 1,482.55$ 415-252-013 283.83$ 418-051-004 283.83$ 419-260-096 2,811.40$ 415-253-008 788.78$ 418-051-011 555.14$ 419-420-021 283.83$ 415-253-014 345.05$ 418-052-001 1,814.04$ 419-422-004 1,052.22$ 415-262-002 383.96$ 418-052-009 377.09$ 419-423-005 788.78$ 415-262-004 788.78$ 418-052-013 391.61$ 419-423-006 788.78$ 415-271-001 897.80$ 418-062-007 432.45$ 419-431-008 283.83$ 284
Item 11.

415-272-009 283.83$ 418-071-001 556.23$ 419-431-010 788.78$ 419-432-008 370.82$ 419-502-001 788.78$ 419-562-005 788.78$ 419-432-010 525.51$ 419-512-001 788.78$ 419-562-011 283.83$ 419-433-006 568.78$ 419-512-017 283.83$ 419-562-016 788.78$ 419-440-007 788.78$ 419-512-031 784.19$ 419-562-018 283.83$ 419-440-010 788.78$ 419-521-003 367.22$ 419-571-006 788.78$ 419-441-002 533.62$ 419-521-008 788.78$ 419-572-004 283.83$ 419-441-003 385.29$ 419-521-016 788.78$ 419-573-004 283.83$ 419-442-019 284.92$ 419-522-008 788.78$ 419-573-009 788.78$ 419-442-025 392.63$ 419-522-014 283.83$ 419-574-004 485.78$ 419-442-027 283.83$ 419-522-019 283.83$ 419-574-010 788.78$ 419-442-044 788.78$ 419-522-024 788.78$ 419-580-016 283.83$ 419-450-002 510.48$ 419-522-030 488.78$ 419-580-025 788.78$ 419-452-018 512.31$ 419-522-038 643.57$ 419-581-006 283.83$ 419-452-031 440.00$ 419-532-004 643.96$ 419-582-001 788.78$ 419-452-033 788.78$ 419-532-006 506.50$ 419-582-002 365.27$ 419-453-001 788.78$ 419-532-029 788.78$ 419-582-004 417.82$ 419-460-002 871.98$ 419-533-013 788.78$ 419-582-020 788.78$ 419-460-006 283.83$ 419-533-027 788.78$ 419-582-021 788.78$ 419-460-012 624.31$ 419-533-044 283.83$ 419-591-015 788.78$ 419-460-024 788.78$ 419-534-004 788.78$ 419-592-004 788.78$ 419-460-041 926.71$ 419-534-008 512.31$ 419-592-005 392.63$ 419-460-044 788.78$ 419-534-013 283.83$ 419-593-009 283.83$ 419-460-052 643.96$ 419-540-001 283.83$ 419-593-011 621.44$ 419-461-003 283.83$ 419-540-015 788.78$ 419-600-005 392.63$ 419-461-007 788.78$ 419-540-030 283.83$ 419-600-009 788.78$ 419-461-009 643.96$ 419-541-001 284.83$ 419-600-016 788.78$ 419-461-014 283.83$ 419-541-004 795.41$ 419-600-020 392.63$ 419-470-005 283.83$ 419-541-007 788.78$ 419-600-022 788.78$ 419-470-014 389.86$ 419-541-016 409.86$ 419-600-028 283.83$ 419-471-010 391.75$ 419-550-012 482.35$ 419-601-008 543.00$ 419-472-022 389.89$ 419-550-034 788.78$ 419-601-024 788.78$ 419-472-024 283.83$ 419-551-003 283.83$ 419-601-027 485.50$ 419-480-013 354.86$ 419-551-014 755.10$ 419-611-008 283.83$ 419-480-014 589.12$ 419-551-019 412.31$ 419-620-001 643.96$ 419-480-017 283.83$ 419-551-021 392.63$ 419-620-002 788.78$ 419-480-031 283.83$ 419-551-037 788.78$ 419-620-004 643.96$ 419-480-045 392.62$ 419-551-041 462.46$ 419-620-005 512.31$ 419-481-002 788.78$ 419-552-007 283.83$ 419-621-002 643.96$ 419-481-010 283.83$ 419-552-018 788.78$ 419-621-003 293.63$ 419-483-005 788.78$ 419-552-022 283.83$ 419-621-004 283.83$ 419-491-007 788.78$ 419-560-006 788.78$ 419-621-012 283.83$ 419-491-013 1,060.68$ 419-561-001 283.83$ 419-622-002 788.78$ 419-491-015 359.50$ 419-561-002 788.78$ 419-622-004 788.78$ 419-495-009 788.78$ 419-561-004 788.78$ 419-622-006 788.78$ 419-496-007 283.83$ 419-561-010 354.51$ 419-622-012 1,009.84$ 419-500-006 283.83$ 419-561-011 283.83$ 419-622-015 283.83$ 285
Item 11.

419-500-016 283.83$ 419-561-013 392.63$ 419-623-004 995.25$ 419-623-005 283.83$ 419-692-036 788.78$ 428-041-046 283.83$ 419-623-008 283.83$ 419-692-048 283.83$ 428-041-048 283.83$ 419-623-016 788.78$ 419-692-054 788.78$ 428-041-058 283.83$ 419-623-021 589.12$ 419-693-010 788.78$ 428-041-059 454.68$ 419-623-024 788.78$ 419-693-014 283.83$ 428-041-067 283.83$ 419-630-001 788.78$ 419-693-029 283.83$ 428-050-001 788.78$ 419-630-018 433.92$ 419-693-030 926.71$ 428-050-010 788.78$ 419-630-022 414.84$ 419-700-009 283.83$ 428-050-014 788.78$ 419-630-023 454.68$ 419-701-014 283.83$ 428-050-015 446.00$ 419-630-025 788.78$ 419-701-016 507.44$ 428-050-026 926.71$ 419-630-027 284.92$ 419-702-005 788.78$ 428-051-003 926.71$ 419-631-010 283.83$ 419-710-001 788.78$ 428-051-007 305.57$ 419-640-001 788.78$ 419-710-004 283.83$ 428-051-023 283.83$ 419-640-013 788.78$ 419-710-036 788.78$ 428-051-031 417.70$ 419-640-027 510.77$ 419-711-016 352.17$ 428-060-001 788.78$ 419-643-003 788.78$ 419-711-017 283.83$ 428-060-021 926.71$ 419-643-016 926.71$ 419-712-002 341.81$ 428-061-018 589.12$ 419-650-020 788.78$ 419-712-010 458.77$ 428-061-025 643.96$ 419-650-022 512.31$ 419-720-017 553.01$ 428-061-027 788.78$ 419-650-025 788.78$ 419-720-034 283.83$ 428-062-004 788.78$ 419-651-007 457.28$ 419-721-001 788.78$ 428-070-007 283.83$ 419-660-001 788.78$ 419-721-019 332.73$ 428-070-010 391.16$ 419-660-003 643.96$ 419-731-014 1,004.74$ 428-071-011 926.71$ 419-660-008 684.71$ 419-731-023 392.63$ 428-071-030 512.31$ 419-660-011 788.78$ 419-732-023 512.31$ 428-071-033 392.63$ 419-660-014 788.78$ 419-732-027 283.83$ 428-072-009 788.78$ 419-660-018 392.63$ 419-740-015 788.78$ 428-072-011 788.78$ 419-661-034 600.08$ 419-740-021 788.78$ 428-072-015 788.78$ 419-672-002 283.83$ 419-740-034 392.63$ 428-072-026 788.78$ 419-672-007 788.78$ 419-741-011 788.78$ 428-072-030 283.83$ 419-672-009 788.78$ 419-741-012 392.63$ 428-080-007 788.78$ 419-680-006 283.83$ 419-741-024 788.78$ 428-080-010 788.78$ 419-680-011 788.78$ 419-761-020 283.83$ 428-080-021 313.46$ 419-680-012 283.83$ 419-761-032 283.83$ 428-080-041 788.78$ 419-681-002 788.78$ 419-761-038 283.83$ 428-080-044 284.92$ 419-681-006 283.83$ 419-761-054 284.92$ 428-080-045 667.78$ 419-682-003 283.83$ 419-761-057 772.63$ 428-080-053 643.96$ 419-682-009 788.78$ 419-761-070 788.78$ 428-091-010 283.83$ 419-682-014 293.73$ 419-761-090 283.83$ 428-091-022 643.96$ 419-690-019 788.78$ 419-761-094 788.78$ 428-100-015 284.92$ 419-690-023 926.71$ 421-731-040 283.83$ 428-101-001 788.78$ 419-690-028 788.78$ 428-040-020 788.78$ 428-101-005 788.78$ 419-692-007 788.78$ 428-040-035 788.78$ 428-101-008 788.78$ 419-692-013 684.71$ 428-040-036 788.78$ 428-101-011 283.83$ 419-692-025 788.78$ 428-041-009 283.83$ 428-101-024 926.71$ 419-692-030 788.78$ 428-041-018 283.83$ 428-110-005 788.78$ 286
Item 11.

419-692-031 788.78$
428-041-038 392.63$
428-110-009 512.31$
428-110-017 507.07$
428-110-019 788.78$
428-110-020 788.78$
428-111-002 788.78$
428-111-005 435.62$
428-112-012 788.78$
428-112-014 405.22$
428-112-016 788.78$
428-120-023 788.78$
428-120-045 392.63$
428-130-051 283.83$
428-130-069 283.83$
428-130-070 512.31$
428-140-029 283.83$
428-140-050 283.83$
428-140-081 302.04$
428-161-013 337.31$
428-161-033 643.96$
428-162-004 788.78$
428-180-029 643.96$
428-210-056 283.83$
428-240-011 283.83$
428-260-026 292.82$
428-260-027 656.61$
428-260-045 688.78$
428-270-027 360.26$
428-290-024 858.86$
428-310-001 788.78$
428-310-020 283.83$
428-360-017 512.31$
428-360-039 788.78$
428-380-034 283.83$
428-402-002 283.83$
428-420-007 788.78$
428-430-029 283.83$
431-561-006 512.31$
Total 776,224.01$
287
Item 11.

CITY OF BEAUMONT

NOTICE OF PUBLIC HEARING IN CONNECTION WITH THE COLLECTION OF

DELINQUENT SEWER SERVICE CHARGES AND FEES ON THE PROPERTY TAX ROLL

NOTICE IS HEREBY GIVEN that pursuant to Sections 5471 and 5473, et seq. of the Health and Safety Code of the State of California and City of Beaumont Municipal Code Section 13.08.380, the City of Beaumont (“City”) will consider whether to collect delinquent charges and fees for sewer services on the tax roll, in the same manner as general taxes.

City staff has filed a written report with the City Clerk describing each parcel of real property with delinquent sewer charges and fees, and the amount of the charges and fees against that parcel. The City’s report is on file and available for public inspection during business hours at City Hall located at 550 E 6th St, Beaumont, CA 92223.

NOTICE IS FURTHER GIVEN that a public hearing has been scheduled for August 2, 2022, in the Council Chambers of City Hall located at 550 E 6th St, Beaumont, CA 92223. This meeting will be conducted utilizing teleconference communications and will be recorded for live streaming as well as open to public attendance subject to social distancing and applicable health orders. The City of Beaumont will accept testimony and comments in person, via email, and through a phone-in option from all interested persons at which time the City Council will hear and consider all evidence, testimony, objections, or protests by all interested persons, property owners, voters and taxpayers, to the written report proposing to have delinquent sewer charges collected on the tax roll. At the conclusion of the public hearing the City Council will consider whether or not to adopt the report and direct the City Clerk to file said report with the Riverside County Auditor and request the auditor place the delinquent sewer charges and fees as described in the report on the tax roll.

Any questions regarding this notice, the report filed with the City Clerk, sewer charges, or the public hearing may be directed to the Finance Director at (951) 769-8520.

Dated July 18, 2022

288
Item 11.

Staff Report

TO: City Council
FROM: Kari Mendoza, Administrative Services Director
DATE August 2, 2022
SUBJECT: Public Hearing to Consider the Placement of Delinquent Solid Waste Handling Service Charges on The Property Tax Roll

Background and Analysis:

Pursuant to City of Beaumont Municipal Code Section 8.12.240, and Health and Safety Code section 5470 et seq., the City may collect delinquent fees or charges for commercial, single family residential, and multifamily residential solid waste handling services on the property tax roll for those premises.

In accordance with Health and Safety Code (“H&S”) Section 5473, the City has prepared a written report which contains a description of each parcel of real property with delinquent fees and charges. This report is on file with the City Clerk and is attached as Exhibit A to the proposed resolution authorizing the collection of the delinquent fees and charges on the tax rolls. By approving the proposed resolution, the City Council would be authorizing the City to collect delinquent solid waste handling charges and fees on the tax roll in the same manner and at the same time as the general taxes.

Prior to approving the placement of the delinquent service charges and fees on the tax roll, H&S Section 5473 et seq. requires the City Council to conduct a public hearing.

Notice of this public hearing was provided in accordance with H&S Section 5473.1, by publishing a notice of the hearing in the Press Enterprise newspaper on July 22, 2022, and July 29, 2022. The notice of public hearing was also mailed to the owner(s) of each parcel for which charges will be placed on the tax roll.

During the public hearing the City Council shall hear and consider all objections or protests, if any, to the report and the placement of the charges on the tax roll. If the City Council finds that a majority of the parcel owners subject to the charges have submitted protests or appeared to protest, the report shall not be adopted and the charges must be collected separately from the tax roll. Upon the c onclusion of the hearing, the legislative body may adopt, revise, change, reduce or modify any charge or overrule 289
Item 12.

any or all objections. The resolution placing the charges on the tax roll must be approved by a two-thirds vote of the City Council.

Fiscal Impact:

Approval of the resolution and collection of delinquent solid waste handling charges and fees on the Riverside County Auditor tax rolls will allow for the cost recovery of $278,041.50. These fees will be collected and remitted to the contractor Waste Management in accordance with the City’s franchise agreement.

Recommended Action:

Conduct a public hearing, and
Waive the full reading and adopt by title only, “A Resolution of the City Council of the City of Beaumont, California, Authorizing the Collection of Delinquent Solid Waste Handling Service Charges on the Property Tax Roll.” Attachments:

A. Resolution – Delinquent Sanitation Fees
B. Exhibit A to Resolution, 2022 List of Sanitation Fee Delinquencies C. Public Notice
290
Item 12.

Resolution 2022-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEAUMONT,

CALIFORNIA, AUTHORIZING THE COLLECTION OF DELINQUENT SOLID

WASTE HANDLING SERVICE CHARGES ON THE PROPERTY TAX ROLL

WHEREAS, California Health and Safety Code Section 5473 et. seq. authorizes the City to adopt a resolution by two-thirds of the members of the City Council to collect delinquent solid waste handling rates on the tax roll, in the same manner and at the same time as the general taxes; and

WHEREAS, Section 8.12.240 of the City of Beaumont Municipal Code provides that “The City may collect delinquent fees or charges for commercial, single family residential, and multifamily residential solid waste handling services on the property tax roll for those premises”; and

WHEREAS, in accordance with Health and Safety Code Section 5473, City staff has prepared a written report, attached hereto as Exhibit A and on file with the City Clerk, which contains a description of each parcel of real property with delinquent solid waste handling fees and charges, and the amount of the delinquent fees and charges for each parcel; and

WHEREAS, in accordance with Health and Safety Code Section 5473.1, the City provided notice of a public hearing by publishing a notice in the Press Enterprise newspaper on July 22, 2022, and July 29, 2022, and by mailing a copy of the notice to the owner(s) of each parcel for which charges will be placed on the tax roll; and

NOW THEREFORE BE IT RESOLVED, be it resolved, by the City Council of the City of Beaumont, California, as follows:

SECTION 1: The above recitals are true and correct and are incorporated herein.

SECTION 2: The City approves the collection of the delinquent solid waste handling services charges and fees via the tax roll in the same manner and at the same time as the general taxes. The City Clerk is directed to file with the county auditor a copy of the report prepared pursuant to Health and Safety Code Section 5473 attached hereto as Exhibit A, with a statement endorsed on the report over his or her signature that the report has been adopted by the City Council and the county auditor shall enter the amounts of the charges against the respective lots or parcels of land as they appear on the current assessment roll.

291
Item 12.

MOVED, PASSED, and ADOPTED this 2nd day of August, 2022 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

______________________________
Lloyd White, Mayor

ATTEST:

_____________________________
Nicole Wheelwright, Deputy City Clerk

292
Item 12.

Parcel No Total TR
400030033 444.58
400030041 422.46
400040017 579.40
400040037 58.82
400040083 201.20
400050040 444.58
400050046 430.04
400050054 371.50
400060014 338.12
400060040 59.16
400060041 100.86
400060051 156.00
400060055 444.58
400060080 243.78
400070029 59.16
400070042 444.58
400070044 201.10
400070059 70.96
400070076 53.08
400070079 65.06
400070084 444.58
400080036 444.58
400080069 444.58
400080080 444.58
400080081 85.96
400090005 444.58
400100014 444.58
400100036 429.84
400110015 602.72
400110040 195.20
400120002 348.74
400120023 416.56
400120027 444.58
400120037 431.30
400120038 65.06
400130002 422.46
400130022 429.84
400130023 422.46
400130029 444.58
400130051 170.26
400141001 341.36
400141004 35.40
400142013 193.66
400151006 444.58
400151007 59.16
293
Item 12.

400160013 253.52
400161014 444.58
400170002 163.78
400170004 429.84
400171005 416.56
400171006 444.58
400171025 444.58
400171027 581.70
400180033 373.58
400190001 59.14
400190056 422.46
400190063 59.16
400210006 444.58
400260006 439.80
400310033 290.84
400330005 124.22
400340018 314.76
400340060 444.58
400380055 59.16
400390019 59.16
400421002 59.16
400430014 422.46
400431003 561.62
400431011 444.58
400450016 349.28
400461003 201.10
400461005 444.58
400470001 444.58
400470002 189.46
400471002 545.30
400471013 87.40
400482035 118.32
400490001 201.10
400490006 245.24
400490015 628.54
400490020 444.58
400500003 444.58
400500011 328.74
400501001 428.36
400510013 123.90
400511019 105.40
400511021 444.58
400541015 444.58
400542014 444.58
400550002 29.32
400552008 341.36
400561011 444.58
294
Item 12.

400561012 431.30
400561013 581.70
400562003 444.58
400562013 347.26
400570028 229.74
400580010 444.58
400580047 874.42
400590005 464.34
400590041 124.22
400590050 186.46
400600015 348.74
400610005 124.22
400610020 245.46
400610036 422.46
400620006 118.76
400620034 429.84
400630032 65.06
400630054 124.22
400630063 159.96
400681023 83.90
404020008 41.96
404021005 444.58
404022013 266.16
404022016 422.46
404024005 444.58
404030009 347.26
404031002 272.00
404031010 416.56
404031016 444.58
404032007 444.58
404032016 444.58
404032018 429.94
404040004 444.58
404040018 61.14
404040021 444.58
404041017 333.06
404041020 429.84
404041027 59.16
404041033 230.60
404042012 201.10
404042014 422.46
404042019 429.84
404043006 201.10
404043007 444.58
404060006 43.90
404060007 446.38
404063002 416.56
295
Item 12.

404063006 130.12
404070001 422.46
404070006 32.08
404071009 444.58
404071010 444.58
404071021 59.16
404071029 89.10
404081009 444.58
404090005 444.58
404090012 347.26
404092010 310.16
404092011 446.38
404093004 97.52
404093009 165.52
404120008 141.92
404120021 581.70
404121013 444.58
404131011 243.98
404150005 581.70
404150008 207.00
404150022 620.98
404151007 363.46
404160007 581.70
404160019 329.62
404161004 444.58
404170007 444.58
404180003 186.46
404210019 551.82
404211004 416.56
404211007 65.06
404212005 130.12
404213016 444.58
404220011 444.58
404220017 422.46
404222025 444.58
404223001 444.58
404224004 444.58
404225001 429.84
404225006 444.58
404240003 339.24
404240017 340.08
404250023 201.10
404251006 444.58
408101009 134.32
408101062 124.22
408101077 385.74
408102016 195.20
296
Item 12.

408102020 444.58
408102035 581.70
408102037 422.46
408102043 289.70
408102046 444.58
408102054 272.06
408102058 444.58
408111009 422.46
408111046 59.16
408112002 429.84
408112006 257.24
408112014 124.22
408112016 446.24
408112017 82.92
408112040 422.46
408112053 434.04
408150022 157.00
408150027 42.04
408150062 455.88
408160039 59.16
408160051 402.70
408160054 537.56
408170006 581.70
408170031 47.52
408180007 68.48
408180009 347.26
408180010 129.96
408180023 422.46
408180050 321.86
408190040 221.88
408190067 98.54
408200023 347.26
408202013 444.58
408211004 444.58
408211011 422.46
408221008 125.98
408222027 59.16
408222036 78.00
408230023 444.58
408230031 444.58
408233019 140.74
408240004 422.46
408240033 148.16
408241003 190.64
408242001 157.66
408251003 29.50
408252001 444.58
297
Item 12.

408252017 341.36
408252019 266.16
408261009 304.46
408271026 444.58
408282047 59.16
408282049 65.06
408291066 78.00
408302023 444.58
408400063 125.72
408400073 112.14
408410003 422.46
413491011 43.38
413500015 444.58
413500017 101.06
413511010 59.16
413511012 59.16
413511039 422.46
413512001 581.70
413512007 165.80
413520021 59.16
413520051 50.80
413532006 124.22
413541008 347.26
413550003 544.84
413550014 29.50
413550016 71.36
413551022 347.26
413551024 444.58
413561007 65.56
413561022 59.16
413570008 115.22
413572002 65.06
413572005 415.72
413582005 427.58
413582012 59.16
413582021 422.46
413651009 302.82
413660011 124.22
413660019 416.56
413671012 556.82
413681014 156.00
413681030 177.60
413681031 444.58
413681034 113.28
413690012 78.00
413690014 422.46
413690022 444.58
298
Item 12.

413691016 628.46
413692002 444.58
413692003 444.58
413692004 36.14
413692006 444.58
413700015 141.76
413700022 276.46
413700038 65.22
413700052 444.58
413710023 143.76
413710037 444.58
413710043 124.54
413710051 65.06
413710052 124.22
413710054 338.12
413721002 351.68
413722014 444.58
413722019 444.58
413730027 581.70
413741002 444.58
413741011 118.32
413750015 141.64
413751003 338.12
413760010 349.28
413760019 83.90
413760020 444.58
413761002 444.58
413761011 261.10
413761013 79.20
413761019 581.70
413770011 444.58
413771008 581.70
413800014 26.28
413801007 59.16
413811009 444.58
413811023 385.16
413820001 429.84
413820013 59.16
413821004 341.36
413832007 416.56
413832021 581.70
413840001 429.84
413840003 444.58
413840011 124.22
413850003 201.10
413850011 204.52
413860041 269.04
299
Item 12.

413871006 444.58
413881006 435.42
413881012 352.22
413882013 233.74
413891003 352.96
413892005 468.96
413892016 549.36
414033005 444.58
414033013 444.58
414034014 384.10
414034015 118.32
414034020 118.32
414042004 230.68
414052008 134.58
414142026 581.70
414142038 2,162.98
414150007 431.30
414161015 371.36
414163005 422.46
414172028 130.12
414181019 140.32
414181035 53.70
414181037 416.44
414182017 272.06
414183006 444.58
414183009 161.90
414191005 338.12
414192003 347.26
414192012 422.46
414201003 65.06
414202012 59.16
414211015 435.74
414212014 444.58
414220006 671.22
414220025 554.06
414220026 422.46
414220037 284.12
414220046 65.06
414231006 444.58
414231020 416.56
414231039 79.86
414231041 201.10
414241001 431.30
414241005 400.32
414241043 444.58
414241065 106.70
414252003 431.30
300
Item 12.

414252026 30.10
414252033 393.20
414261038 581.70
414263004 58.82
414271003 59.16
414272011 416.56
414272019 444.58
414282007 422.46
414283013 124.22
414283019 581.70
414283021 201.10
414283029 416.56
414283036 444.58
414283037 30.34
414290030 444.58
414290041 201.10
414301008 148.16
414301025 457.86
414311001 266.16
414311013 444.58
414320018 444.58
414320028 564.28
414320029 431.30
414320035 28.20
414320036 444.58
414320052 70.96
414330004 431.30
414330010 341.36
414330012 444.58
414330023 299.88
414331007 431.30
414331017 537.56
414331018 431.30
414340018 444.58
414340035 35.40
414341002 124.22
414341007 266.16
414341018 444.58
414350003 308.64
414350004 429.84
414350011 59.16
414350021 444.58
414350035 543.46
414350045 444.58
414350052 156.14
414380035 124.22
414380040 195.20
301
Item 12.

414380047 59.16
414390029 118.32
414390045 429.94
414400039 124.22
414400041 444.58
414400081 52.58
414440077 25.10
414510034 124.22
414520062 73.48
415042002 444.58
415042028 326.58
415042041 444.58
415042042 30.10
415043008 444.58
415043009 444.58
415043017 584.06
415050047 444.58
415061044 423.64
415070003 782.12
415070014 59.16
415071002 113.28
415071007 321.86
415080009 543.98
415081010 124.22
415091006 351.60
415092004 161.90
415092006 444.58
415100006 89.00
415100013 98.06
415100031 78.00
415100032 295.60
415100051 195.20
415100064 444.58
415100067 444.58
415111001 133.68
415111009 581.70
415112006 543.46
415112017 65.06
415121005 65.06
415122010 434.26
415130029 423.34
415130030 129.12
415130046 545.30
415142010 59.16
415142012 444.58
415150018 545.30
415161021 581.70
302
Item 12.

415162001 722.00
415162009 150.78
415162017 195.20
415162045 59.16
415171002 478.88
415171004 78.00
415180005 29.50
415180010 75.00
415180032 444.58
415180037 423.56
415191003 581.70
415191005 444.58
415191029 431.04
415191030 201.10
415191031 422.46
415200001 326.58
415200003 581.70
415200011 444.58
415210008 444.58
415210011 444.58
415210032 186.46
415210036 118.32
415221002 444.58
415221022 444.58
415222022 191.94
415224010 195.20
415224011 59.16
415224012 251.68
415231013 30.08
415231015 444.58
415233012 124.22
415241003 59.16
415241005 679.52
415241008 580.28
415242003 1,902.90
415242007 195.20
415253008 99.52
415261001 975.48
415262002 59.56
415262015 118.32
415271004 1,308.48
415271010 491.78
415281019 147.96
415282026 444.58
415292020 444.58
415303001 31.00
415303014 156.00
303
Item 12.

415312024 579.40
415313028 452.70
415331013 156.00
417030005 676.44
417046007 889.18
417054002 431.30
417054006 422.46
417055002 889.18
417056011 685.56
417062007 444.58
417066002 679.52
417080028 29.50
417093008 341.34
417100044 29.50
417122007 444.58
417122008 444.58
417130006 112.26
417140011 579.40
417140026 444.58
418020002 78.00
418020006 431.30
418020024 30.26
418020025 416.56
418020038 243.16
418021002 274.32
418031008 422.46
418032013 1,084.28
418032024 444.00
418042008 422.46
418043017 645.68
418051011 581.70
418052007 30.26
418053011 444.58
418072005 45.66
418073005 83.06
418073013 444.58
418073014 24.36
418073017 59.16
418082017 161.80
418084003 59.16
418084007 422.46
418084008 1,536.42
418084014 444.58
418084018 122.38
418091002 422.46
418091016 124.06
418092019 444.58
304
Item 12.

418093005 138.80
418101005 3,741.66
418102007 59.00
418102014 444.58
418102019 161.74
418112006 444.58
418112008 208.58
418112016 1,523.80
418121004 25,526.16
418123006 444.58
418130041 219.20
418260017 118.32
418320009 247.48
419150021 163.78
419202009 59.16
419202011 422.46
419211002 444.58
419211010 236.58
419213003 444.58
419213008 444.58
419213013 416.56
419213020 422.46
419213034 545.30
419213035 558.74
419221018 444.58
419222006 444.58
419222010 118.32
419222011 444.58
419222014 78.30
419232013 422.46
419232020 429.84
419420010 127.78
419422004 155.48
419423006 238.36
419431010 213.06
419432010 59.16
419440010 124.22
419441005 444.58
419441011 444.58
419442019 94.56
419442044 444.58
419450002 418.04
419452007 431.30
419452033 444.58
419460006 444.58
419460012 444.58
419460024 124.22
305
Item 12.

419460032 280.26
419460044 444.58
419461009 149.58
419471011 118.32
419472004 444.58
419472011 229.26
419472012 59.16
419480014 118.60
419491007 248.46
419491013 444.58
419500012 65.06
419502001 444.58
419512001 201.10
419521008 422.46
419522008 444.58
419522030 429.84
419522038 311.84
419533013 444.58
419533017 444.58
419534004 581.70
419534010 59.16
419540015 422.46
419541007 431.30
419550015 310.78
419550050 444.58
419551014 416.56
419551041 226.22
419552007 444.58
419552018 444.58
419561002 722.00
419561006 156.00
419562016 422.06
419563015 118.32
419571003 435.74
419571013 266.16
419573009 444.58
419574010 223.62
419574013 444.58
419580025 422.46
419582001 431.30
419582004 444.58
419582005 59.16
419582020 444.58
419591006 124.22
419591013 444.58
419591015 444.58
419592004 416.56
306
Item 12.

419592005 272.06
419600009 444.58
419600022 347.26
419601027 444.58
419601036 118.32
419601041 357.58
419602005 341.36
419620001 444.58
419620002 431.30
419622002 444.58
419622004 444.58
419622006 581.70
419622012 182.90
419623004 431.30
419623013 444.58
419623016 195.20
419630001 424.82
419630010 267.58
419630022 429.84
419631011 444.58
419640013 422.46
419643003 444.58
419643016 348.74
419650022 183.58
419650024 416.56
419651007 296.44
419660001 444.58
419660002 429.84
419660008 159.96
419660014 444.58
419661001 444.58
419661002 241.90
419661012 444.58
419661018 207.00
419680006 59.16
419680011 59.16
419682003 59.16
419682009 444.58
419683001 444.58
419683009 86.18
419690019 431.30
419690023 59.16
419690028 171.70
419692007 444.58
419692009 46.54
419692030 444.58
419692054 452.80
307
Item 12.

419692057 59.16
419693010 429.84
419693017 118.00
419693030 347.26
419701004 59.16
419701013 59.16
419702005 444.58
419721001 444.58
419721019 47.52
419730017 124.22
419732020 59.16
419740015 321.86
419740021 429.84
419741011 431.30
419741024 348.74
419761015 65.06
419761054 124.40
419761057 124.22
419761070 429.84
419761090 239.56
428040035 444.58
428040036 444.58
428041059 131.62
428041064 266.16
428050001 59.16
428050010 444.58
428050014 616.54
428050026 59.16
428051003 78.00
428051023 235.40
428051030 65.06
428060001 78.00
428060021 444.58
428060024 422.46
428061027 554.56
428062004 444.58
428070010 137.02
428071001 65.06
428071011 59.16
428071030 70.78
428072003 78.00
428072009 543.46
428072015 416.56
428072026 113.72
428080007 444.58
428080010 444.58
428080041 422.46
308
Item 12.

428080045 408.46
428080053 201.10
428091016 444.58
428101001 444.58
428101005 171.42
428101008 608.44
428101024 546.02
428110019 444.58
428111002 444.58
428112012 444.58
428120045 106.48
428140066 444.58
428140083 422.46
428161042 195.30
428162015 580.28
428200005 59.16
428250024 211.26
428260045 202.48
428290054 444.58
428350034 177.72
278,041.50
309
Item 12.

CITY OF BEAUMONT

NOTICE OF PUBLIC HEARING IN CONNECTION WITH THE COLLECTION OF

DELINQUENT SOLID WASTE COLLECTION SERVICE CHARGES AND FEES ON THE

PROPERTY TAX ROLL

NOTICE IS HEREBY GIVEN that pursuant to Sections 5471 and 5473, et seq. of the Health and Safety Code of the State of California and City of Beaumont Municipal Code Section 8.12.240, the City of Beaumont (“City”) will consider whether to collect delinquent charges and fees for solid waste collection services on the tax roll, in the same manner as general taxes.

City staff has filed a written report with the City Clerk describing each parcel of real property with delinquent solid waste collection charges and fees, and the amount of the charges and fees against that parcel. The City’s report is on file and available for public inspection during business hours at City Hall located at 550 E 6th St, Beaumont, CA 92223.

NOTICE IS FURTHER GIVEN that a public hearing has been scheduled for August 2, 2022, in the Council Chambers of City Hall located at 550 E 6th St, Beaumont, CA 92223. This meeting will be conducted utilizing teleconference communications and will be recorded for live streaming as well as open to public attendance subject to social distancing and applicable health orders. The City of Beaumont will accept testimony and comments in person, via email, and through a phone-in option from all interested persons at which time the City Council will hear and consider all evidence, testimony, objections, or protests by all interested persons, property owners, voters and taxpayers, to the written report proposing to have delinquent solid waste charges collected on the tax roll. At the conclusion of the public hearing the City Council will consider whether or not to adopt the report and direct the City Clerk to file said report with the Riverside County Auditor and request the auditor place the delinquent solid waste charges and fees as described in the report on the tax roll.

Any questions regarding this notice, the report filed with the City Clerk, solid waste collection charges, or the public hearing may be directed to the Finance Director at (951) 769-8520.

Dated July 19, 2022

310
Item 12.

Staff Report

TO: City Council
FROM: Elizabeth Gibbs, City Manager
DATE August 2, 2022
SUBJECT: Update from Mayor Pro Tem Martinez on Delivering the Letter Regarding “Failure to Represent the Residents of Beaumont” to the County of Riverside Board of Supervisors

Background and Analysis:

Mayor Pro Tem Martinez will provide an update on delivering the letter regarding “Failure to Represent the Resident of Beaumont” to the County of Riverside Board of Supervisors.

Fiscal Impact:

None.

Recommended Action:

Receive and file.

Attachments:

A. Letter
311
Item 13.

312
Item 13.

313
Item 13.

Staff Report

TO: City Council
FROM: Kari Mendoza, Administrative Services Director
DATE August 2, 2022
SUBJECT: Authorize Employment Contract with City Manager

Background and Analysis:

At a special City Council meeting on Monday April 11, 2022, Elizabeth Gibbs was appointed as Interim City Manager. At the July 19, 2022, regular City Council meeting City Council voted to appoint Elizabeth Gibbs to the position of City Manager and authorized the City Attorney to negotiate the terms of the attached employment agreement. The attached contract has a three-year term, benefits identical to the interim contract terms with the addition of a severance clause.

Elizabeth has served the citizens of Beaumont from 1996 to 2022 in various roles including Interim City Manager in 2015 and lastly Community Services Director. She holds a Bachelor of Arts and Masters degree from California Baptis t University. The City Attorney drafted the employment agreement and Council negotiated the terms and conditions of employment.

Fiscal Impact:

The contract provides for an annual fully loaded fiscal impact of $357,420. City staff estimates the cost to prepare this report was $975.

Recommended Action:

Approve the employment agreement with Elizabeth Gibbs and authorize the Mayor to sign the agreement.

Attachments:

A. Employment Agreement
B. Job Description
C. Municipal Code Powers and Duties
314
Item 14.

1 CITY MANAGER

EMPLOYMENT AGREEMENT

This CITY MANAGER EMPLOYMENT AGREEMENT (hereinafter referred to as the “Agreement”) is entered into and made effective the 19th day of July, 2022 (“Effective Date”), by and between CITY OF BEAUMONT (hereinafter referred to as the “CITY”), and ELIZABETH GIBBS, an individual (hereinafter referred to as “EMPLOYEE”). For purposes of this Agreement, CITY and EMPLOYEE may be collectively referred to as the “Parties” or individually as a “Party.”

RECITALS

Based on EMPLOYEE’s executive and administrative qualifications and ability, the City Council of CITY (“COUNCIL”) desires to appoint EMPLOYEE to serve as the City Manager for CITY; and

EMPLOYEE desires to perform and assume the responsibilities and duties as the City Manager for CITY; and

In consideration of these recitals and performance of the mutual promises, conditions and covenants contained herein, the CITY and EMPLOYEE agree as follows:

1. POSITION, DUTIES AND TERM.

1.1 Position, Duties & Term. EMPLOYEE accepts employment with CITY as its City Manager and shall perform all City Manager functions, duties and services as established under California law and as set forth in the City of Beaumont Municipal Code (“Municipal Code”) as may be amended from time to time. This Agreement is for a three (3) year term from the Effective Date and is subject to the “At-Will” provision in Section 1.2 and termination provision in Section 6 .

Section 2.12.060 of the Municipal Code sets forth the Powers and Duties of the Beaumont City Manager (Powers & Duties). A copy Section 2.12.060 of the Municipal Code is attached hereto as Exhibit “A”.

As City Manager, EMPLOYEE shall function as the Chief Executive Officer of the CITY and shall be responsible to the CITY and its COUNCIL for the proper, lawful and ethical administration of all affairs of the CITY. In the role of the City Manager, EMPLOYEE shall also serve at the pleasure of the COUNCIL as the Director of any sub-entities/agencies of the City of Beaumont.

1.2 Employment with CITY “At-Will ”.

(a) EMPLOYEE’s employment status with CITY shall be at-will and EMPLOYEE shall serve at the pleasure of the COUNCIL. EMPLOYEE acknowledges, understands and agrees that EMPLOYEE may not avail herself of any procedures, provisions or protections set forth under CITY’s Employment Policies, as defined herein, in so far as such procedures, provisions or protections limit, restrict, modify, prohibit or regulate EMPLOYEE’s 315
Item 14.

2 status as an “at-will” employee of CITY or the ability of the COUNCIL to terminate EMPLOYEE’s employment at any time for cause or for convenience and without cause. For purposes of this Agreement, the capitalized term “Employment Policies” means and refers to any ordinance, resolution, regulation, rule, memorandum of understanding, or other written policy of CITY as the same may be amended, modified or supplemented from time-to-time, and any written employment manual of CITY which governs, regulates or otherwise relates to employment with CITY. CITY’s Employment Policies shall not apply to EMPLOYEE in so far as such Employment Policies limit, restrict, modify or regulate (or may be interpreted to limit, restrict, modify or regulate) EMPLOYEE’s status as an “at-will” employee of CITY.

(b) EMPLOYEE shall not be entitled to any pre-termination notice or hearing or other similar proceeding or appeal proceeding as a precondition to any decision or action by the CITY to terminate EMPLOYEE’s employment whether for cause or for convenience and without cause.

(c) Nothing in this Agreement shall confer upon EMPLOYEE any right to any property interest in continued employment with CITY.

1.3 Work Hours. The position of City Manager is an exempt position under state and federal wage and hour laws. EMPLOYEE’s compensation (whether salary or benefits or other allowances) is not based on hours worked and EMPLOYEE shall not be entitled to any compensation for overtime. EMPLOYEE is expected to engage in those hours of work that are necessary to fulfill the obligations of the City Manager’s position. The City Manager does not have set hours of work as the City Manager is expected to dedicate herself on a full-time basis to serving as City Manager and to be available at all reasonable and relevant times.

1.4 Non-CITY Activities. In accordance with Government Code Section 1126, during the period of EMPLOYEE’S employment, EMPLOYEE shall not accept, without the express prior written approval of three or more members of the COUNCIL, any other employment or engage, directly or indirectly, in any other business, commercial, or professional activity, whether or not to pecuniary advantage, that is or may be competitive with her duties as City Manager or that may be competitive with CITY, that might cause a conflict-of-interest with CITY, or that otherwise might interfere with the business or operation of CITY or the satisfactory performance of EMPLOYEE’s duties as City Manager.

2. COMPENSATION BENEFITS AND REIMBURSEMENT .

2.1 Base Salary. Commencing on the date EMPLOYEE commenced full time work with the CITY, EMPLOYEE’s gross annual salary shall be $230,006.40 (hereinafter, the “Base Salary”) to be paid monthly or bi-weekly installments at the same time and in the same manner as other management employees of CITY. EMPLOYEE’s salary shall be subject to customary withholding for taxes and other required deductions. In recognition of EMPLOYEE accomplishing goals and objectives identified by the COUNCIL, the COUNCIL may, in its discretion, grant EMPLOYEE merit increases in her salary and/or benefits.

316
Item 14.

3 2.2 Performance Evaluation. Immediately following the commencement of EMPLOYEE'S employment with CITY, COUNCIL and EMPLOYEE shall discuss the COUNCIL'S goals and objectives for the year. Thereafter, as needed and on the annual anniversary of the commencement of EMPLOYEE'S employment with CITY, COUNCIL and EMPLOYEE shall define the goals and objectives that they determine are appropriate for the proper operation of the CITY. Concurrently with the annual establishment of the goals and objectives for the CITY, the COUNCIL and EMPLOYEE shall establish the performance goals for EMPLOYEE and any specific criteria that shall be used to evaluate EMPLOYEE'S performance. The COUNCIL may in its discretion amend said criteria from time to time, after consultation with EMPLOYEE. The failure of CITY to undertake performance evaluations shall not limit CITY’s ability to terminate EMPLOYEE and this Agreement pursuant to Section 6 (Termination).

2.3 Reimbursement. CITY shall reimburse EMPLOYEE for reasonable and necessary travel, subsistence and other business expenses incurred by EMPLOYEE in the performance of EMPLOYEE’S official duties. All reimbursements shall be subject to and in accordance with any limitations or restrictions set forth under the laws of the State of California or any CITY -adopted reimbursement policies.

2.4 Vehicle Allowance. In lieu of expense reimbursement for mileage, EMPLOYEE shall receive a vehicle allowance of $350.00 per month. EMPLOYEE shall be responsible for payment of automobile and liability insurance, maintenance, repair, replacement costs, all taxes applicable to the vehicle allowance and shall be solely responsible for all expenses associated with her vehicle. EMPLOYEE shall be responsible for maintaining necessary records as may be required by Federal and/or State taxing authorities.

2.5 Cell Phone and Computer. CITY shall provide EMPLOYEE with a monthly cell phone allowance of $100 and a desktop computer for official use in connection with CITY business.

2.6 Benefits. In addition to Base Salary, CITY shall also provide EMPLOYEE with the following benefits:

(a) Cafeteria Plan. CITY shall contribute up to One-Thousand Six Hundred Seventy Five Dollars ($1,675) per month to EMPLOYEE for the cafeteria benefit plan detailed in this section.

(i) Said contribution shall be used to provide for health insurance for EMPLOYEE. EMPLOYEE shall be covered by health insurance with a CITY approved health plan unless EMPLOYEE provides proof to CITY that EMPLOYEE is covered by another acceptable health plan as determined by CITY’s Human Resource Department.

(ii) The balance of the cafeteria plan contribution may be used for any of the following or any combination thereof:
(1) Health Insurance for EMPLOYEE’s spouse and/or
dependents;
317
Item 14.

4 (2) Dental Insurance for EMPLOYEE’s, spouse and/or
dependents;
(3) Eye care plan for EMPLOYEE, spouse and/or dependents;

(4) Supplemental Insurance Options.

(iii) There is no cash-back of the remaining contributions amount, if any, to EMPLOYEE after payment of the selected premiums(s). EMPLOYEE shall be responsible for the remaining payments(s) through payroll deduction, of any premiums selected which are in excess of the monthly contribution amount.

(b) Life and Short Term Disability Insurance. CITY agrees that during the term of employment, it will pay the annual premiums for a term life insurance policy in the amount of $50,000.00. If available, additional coverage may be purchased at EMPLOYEE’s expense and costs. EMPLOYEE shall nominate the beneficiary under such term life insurance policy. Thirty days after commencement of EMPLOYEE’s full time employment, CITY shall provide EMPLOYEE with short term disability insurance coverage consistent with policy terms provided to other non-sworn management level CITY employees.

2.8 Jury Duty. EMPLOYEE will receive Base Salary and benefits while responding to a jury summons or serving on a jury. Any compensation for such jury duty (except travel pay) shall be remitted to CITY.

2.9. Administrative/Personal Leave. EMPLOYEE shall be allocated a maximum of forty (40) hours of administrative/personal leave on July 1st of each CITY fiscal year. The maximum amount of administrative/personal leave that EMPLOYEE may accrue at any given time may not exceed eighty (80) hours total. Accrued but unused administrative/personal leave may not be sold back to CITY.

3. ILLNESS OR INJURY; DISABILITY AND DEATH.

3.1 Cessation of Work Due to Injury or Disability. In addition to any right of termination set forth under Sections 1.3 (Employment With CITY “At-Will”) and Section 6 (“Termination”), CITY also reserves the right to terminate EMPLOYEE’s employment along with this Agreement if EMPLOYEE ceases to work as a result of injury or disability which results in EMPLOYEE being unable to perform the essential duties of the City Manager position, with or without accommodation, for a period of six (6) consecutive months or more, as docum ented by a healthcare provider. The foregoing notwithstanding, CITY may terminate EMPLOYEE if the disability poses a direct threat to CITY, EMPLOYEE or any other employees working for CITY and any reasonable accommodation attempted by CITY would not mitiga te or eliminate such a threat. CITY will not provide a severance payment if EMPLOYEE is terminated under this Section of this Agreement.

3.2 Compensation for Work-Related Illness or Injury. In the event EMPLOYEE suffers a physical or mental illness or disability arising out of the course of employment, EMPLOYEE’s exclusive remedy or remedies against CITY for such illness, injury or disability shall be those legally required under the workers ’ compensation laws of the State of California. 318
Item 14.

5 3.3 Medical Examination. EMPLOYEE agrees to submit to a medical and/or psychological examination by a qualified physician or psychiatrist selected by CITY, in the event a decision must be made under Sections 3.1 through 3.2. CITY and EMPLOYEE shall receive a copy of all medical reports related to the examination.

3.4 Death of EMPLOYEE. This Agreement along with EMPLOYEE’s employment shall terminate automatically upon EMPLOYEE’s death.

3.5 Compensation Upon Termination. Except as otherwise provided under this Agreement, if EMPLOYEE’s employment is terminated pursuant to this Section 3 (Illness or Injury; Disability and Death), CITY shall pay EMPLOYEE all Base Salary, benefits, and compensation due and owing EMPLOYEE through the last day actually worked. If termination is caused by EMPLOYEE’s death, CITY shall provide the compensation and benefits otherwise due EMPLOYEE to EMPLOYEE’s executor, administrator, heirs, personal representatives, successors, and assigns. CITY will not provide for severance pay if EMPLOYEE is terminated under the provisions of Section 3.1 through 3.5, above.

4. HOLIDAY S, VACATION AND SICK LEAVE .

4.1 Holidays. EMPLOYEE shall receive paid holidays in accordance with CITY’s current practices as such practices may be amended or modified from time to time by CITY by action of the COUNCIL. Paid holidays will be those approved by CITY by action of the COUNCIL. Unused holiday leave time shall be accumulated and paid to EMPLOYEE in the last pay check in June of each fiscal year.

4.2 Vacation. EMPLOYEE shall accrue twenty-five (25) days of vacation per year.

EMPLOYEE shall be credited with ten (10) days of vacation upon commencing full time employment with CITY. EMPLOYEE may convert a maximum of eighty (80) hours of accrued vacation time to cash during each year this Agreement is in effect.

4.3 Sick Leave.

(a) Sick leave shall accrue at the rate of 3.69 hours per bi-weekly pay period.

(b) CITY and EMPLOYEE agree to an accumulation cap consistent with other non-sworn management employees’ accumulation cap.

(c) CITY agrees to a service credit of unused sick leave for PERS retirement when EMPLOYEE retires from CITY employment or a lump sum payment of the value of the unused sick leave, as requested by EMPLOYEE and permitted by law.

(d) EMPLOYEE may use accrued paid sick leave for the purposes set forth in Labor Code section 246.5(a).

319
Item 14.

6 (e) Accrued paid sick leave shall carry over to the following year, but no additional paid sick pay will accrue until EMPLOYEE’s accrued paid sick leave falls below the accumulation cap.

(f) CITY will provide EMPLOYEE with written notice of the amount of paid sick leave available. The notice will be provided on the designated pay date with EMPLOYEE’s payment of wages. Sick leave pay will be paid at EMPLOYEE’s hourly rate of pay when sick leave is taken. Sick leave pay will be paid by the payday for the next regular payroll period after the sick leave is taken.

5. RETIREMENT .

5.1 Public Employees Retirement System (PERS). CITY shall provide EMPLOYEE with retirement benefits through the California Public Employees Retirement System (CalPERS).

Such benefits are subject to applicable law and regulations, including but not limited to the Public Employees’ Retirement Law (PERL), the Public Employees’ Pension Reform Act (PEPRA) of 2013, and CalPERS rules. For the purpose of CalPERS retirement benefits, EMPLOYEE shall be a “classic member” under PEPRA. CITY shall pay the CITY’s share of CalPERS contribution and EMPLOYEE shall pay her share for participation in CalPERS.

6. TERMINATION.

6.1 Termination by CITY for Convenience and Without Cause . EMPLOYEE is appointed and serves at the pleasure of the COUNCIL as an at will employee. COUNCIL may terminate EMPLOYEE at any time for convenience and without cause. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the COUNCIL and CITY to terminate this Agreement and the employment of EMPLOYEE, with or without cause or for convenience.

In the event EMPLOYEE is terminated without cause, at or during such time that EMPLOYEE is willing and able to perform her duties under this AGREEMENT, then in that event, CITY agrees to pay EMPLOYEE a severance equal to one (1) year base salary, less any and all applicable or legally required deductions, provided EMPLOYEE has executed a full and final release of any and all actual or potential claims (including Civil Code Section 1542 release) that EMPLOYEE has or could have against CITY, its officials, employees and agents, acceptable to CITY in form and content. Notwithstanding anything herein to the contrary, the maximum severance EMPLOYEE may receive under this AGREEMENT shall not exceed the limitations provided for in Government Code Section 53260-53264 or other applicable law.

6.2 Termination by EMPLOYEE . EMPLOYEE may terminate EMPLOYEE’S employment for any reason, and at any time, with or without cause, by providing CITY with written notice. In such event, CITY shall have the option, in its complete discretion, to make EMPLOYEE’s termination effective upon any date preceding any notice period provided by EMPLOYEE, provided CITY pays EMPLOYEE all compensation due and owing EMPLOYEE through the last day actually worked, plus an amount equal to the Base Salary EMPLOYEE would have earned through the balance of the notice period, which shall no t exceed thirty (30) days.
320
Item 14.

7 6.3 Termination Obligation. EMPLOYEE agrees that all property, including without limitation, all equipment, tangible property, Proprietary Information (as defined below), documents, records, notes, contracts, and computer-generated materials furnished to or prepared by EMPLOYEE incident to EMPLOYEE’S employment are the property of CITY and shall be returned immediately to CITY upon termination of EMPLOYEE’s employment. EMPLOYEE’s obligations under this subsection shall survive the termination of EMPLOYEE’S employment and the expiration or early termination of this Agreement.

6.4 Benefits Upon Termination. All benefits to which EMPLOYEE is entitled under this Agreement shall cease upon EMPLOYEE’s termination in accordance with this Section 6 (Termination), unless expressly continued under this Agreement or unless otherwise required by law.

7. CONFLICT OF INT EREST .

7.1 EMPLOYEE shall not, during the term of this Agreement, individually, as a partner, joint venture, officer or shareholder, invest or participate in any business venture conducting business in the corporate limits of CITY, except for stock ownership in any company whose capital stock is publicly held and regularly traded, without prior approval of the COUNCIL.

EMPLOYEE shall also be subject to the conflict of interest provisions of the Government Code of the State of California, CITY’s Municipal Code, and any other conflict of interest regulations applicable to EMPLOYEE’s employment with CITY. For and during the Term of this Agreement and any extension term, EMPLOYEE further agrees that except for a personal residence or residential property acquired or held for- future use as EMPLOYEE’S personal residence, EMPLOYEE will not invest in any other real estate or property improvements within the corporate limits of CITY without the prior consent of the COUNCIL.

8. GENERAL PROVISIONS .

8.1 Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be effective upon delivery by hand or three (3) business days after deposit in the United States mail, postage prepaid, certified or registered, and addressed to CITY at the address below or at the last known address maintained in EMPLOYEE’s personnel file. EMPLOYEE agrees to notify CITY in writing of any change in EMPLOYEE’S address during EMPLOYEE’S employment with CITY. Notice of change of address shall be effective only when accomplished in accordance with this Section.

CITY’s Notice Address:

City of Beaumont
550 East Sixth Street
Beaumont, CA 92223
Attn: Mayor

321
Item 14.

8 EMPLOYEE’s Notice Address:

ELIZABETH GIBBS
[At EMPLOYEE’s address on file with City]

8.2 Indemnification. Subject to, in accordance with, and to the extent provided by the California Tort Claims Act (Government Code Section 810 et seq. including, but not limited to, Sections 825, 995 and 995.2) CITY will indemnify, defend, and hold EMPLOYEE harmless from and against any action, demand, suit, monetary judgment or other legal or administrative proceeding, and any liability, injury, loss or other damages, arising out of any negligent act or omission occurring within the scope of EMPLOYEE’s employment during the Term of this Agreement or any extension term. CITY shall have the discretion to compromise or settle any such claim, demand or action and pay the amount of any settlement or judgment rendered thereon.

Notwithstanding the foregoing, CITY shall have no duty to indemnify, defend, or hold EMPLOYEE harmless from any criminal proceeding, or with regard to any civil, criminal or administrative proceeding initiated by EMPLOYEE.

8.3 Bonding. CITY shall bear the full cost of any fidelity or other bonds required of the City Manager under any laws or ordinance.

8.4 Entire Agreement. This Agreement is intended to be the final, complete, and exclusive statement of the terms of EMPLOYEE’s employment by CITY. This Agreement supersedes all other prior and contemporaneous Agreements and statements, whether written or oral, express or implied, pertaining in any manner to the employment of EMPLOYEE, and it may not be contradicted by evidence of any prior or contemporaneous statements or Agreements. To the extent that the practices, policies, or procedures of CITY, now or in the future, apply to EMPLOYEE and are inconsistent with the terms of this Agreement, the provisions of this Agreement shall control.

8.5 Amendments. This Agreement may not be amended except in a written document signed by EMPLOYEE, approved by COUNCIL and signed by the City Attorney.

8.6 Waiver. Failure to exercise any right under this Agreement shall not constitute a waiver of such right.

8.7 Assignment. EMPLOYEE shall not assign any rights or obligations under this Agreement. CITY may, upon prior written notice to EMPLOYEE, assign its rights and obligations hereunder.

8.8 Severability. If any court of competent jurisdiction holds any provision, section or sentence of this Agreement to be invalid, unenforceable, or void, the remainder of this Agreement shall remain in full force and effect.

8.9 Governing Law. This Agreement is entered into and to be performed in Riverside County, California and shall be governed by, construed and enforced in accordance with the laws 322
Item 14.

9 of the State of California. The Parties agree that in the event of any dispute or litigation, venue shall be in Riverside County, California.

8.10 Interpretation . This Agreement shall be construed as a whole, according to its fair meaning, and not in favor of or against any party. By way of example and not in limitation, this Agreement shall not be construed in favor of the pa rty receiving a benefit or against the party responsible for any particular language in this Agreement. Captions are used for reference purposes only and should be ignored in the interpretation of the Agreement. This Agreement may be altered, amended or modified only by an instrument in writing; executed by the parties to this Agreement and by no other means. Each party waives their future right to claim, contest, or assert that this Agreement was modified, cancelle d superseded or changed by any oral Agreement, course of conduct, waiver or estoppel.

8.11 Statutory Obligations; Abuse of Office or Position. Notwithstanding anything to this Agreement in the contrary, pursuant to California Government Code Sections 53243, 53243.1 and 53243.2, which became effective on January 1, 2012, if EMPLOYEE is convicted of a crime involving an abuse of EMPLOYEE’S office or position, all of the following shall apply: (1) if EMPLOYEE is provided with an administrative leave pay pending an investigation, EMPLOYEE shall be required to fully reimburse such amounts paid by CITY; (2) if CITY pays for the criminal legal defense of EMPLOYEE (which would be in its sole discretion, as CITY is generally not obligated to pay for a criminal defense), EMPLOYEE shall be required to fully reimburse such amounts paid by CITY; and (3) if this Agreement is terminated, any cash settlement related to the termination of EMPLOYEE by CITY, said amount shall be fully reimbursed to CITY or shall be void if not yet paid to EMPLOYEE. For this Section, abuse of office or position means either: (1) an abuse of public authority, including waste, fraud, and violation of the law under the color of authority; or (2) a crime against public justice, including a crime described in Title 7 commencing with section 92 of the California Penal Code.

8.12 Incorporation of Recitals. The Parties repeat and incorporate the recitals set forth above as if fully set forth herein.

8.13. State & Federal Law. The terms of this Agreement shall be applied only as consistent with State and Federal law.

8.14 Acknowledgment . EMPLOYEE acknowledges that EMPLOYEE has had the opportunity to consult legal counsel in regard to this Agreement, that EMPLOYEE has read and understands this Agreement, that EMPLOYEE is fully aware of its legal effect, and that EMPLOYEE has entered into it freely and voluntarily and based on EMPLOYEE’S own judgment and not on any representations or promises other than those contai ned in this Agreement.

323
Item 14.

10 “CITY”

CITY OF BEAUMONT

By:________________________
Lloyd White, Mayor
“EMPLOYEE”

ELIZABETH GIBBS

By:________________________
Elizabeth Gibbs
ATTEST:

By:________________________
Steven Mehlman, City Clerk

APPROVED AS TO FORM:

By:___________________________
John O. Pinkney, City Attorney

324
Item 14.

Exhibit “A”

CITY MANAGER

EMPLOYMENT AGREEMENT
(Elizabeth Gibbs)

Exhibit “A”

City Manager Job Description
(Beaumont Municipal Code Section 2.12.060 (Powers & Duties)

325
Item 14.

CITY OF BEAUMONT

CITY MANAGER

Class specifications are intended to present a descriptive list of the range of duties performed by employees in the class. Specifications are not intended to reflect all duties performed within the job.

SUMMARY DESCRIPTION

Under policy direction, plans, directs, manages, and oversees the activities and operations of the City of Beaumont; serves as chief executive officer of the City ensuring that public services are delivered in an efficient and effective manner; implements policy decisions made by the City Council; facilitates the development and implementation of City goals and objectives; and provides highly complex administrative support to the City Council.

REPRESENTATIVE DUTIES The following duties are typical for this classification. Incumbents may not perform all of the listed duties and/or may be required to perform additional or different duties from those set forth below to address business needs and changing business practices.

1. Assumes full management responsibility for all City operations; plans, directs, manages, and oversees the activities and operations of the City of Beaumont; recommends and administers goals, objectives, polices, and procedures.

2. Directs and participates, with department head cooperation, in the development and administration of the City budget; prepares long-term plans of capital improvements including financing plans; approves the forecast of funds needed for staffing, equipment, materials, and supplies; approves expenditures and implements budgetary adjustments as appropriate and necessary.

3. Establishes, within City policy, appropriate service and staffing levels; monitors and evaluates the efficiency and effectiveness of service delivery methods and procedures; a llocates resources accordingly.

4. Plans, directs, and coordinates, through department heads, the work plan for the City; assigns projects and programmatic areas of responsibility; reviews and evaluates work methods and procedures; meet with management staff to identify and resolve issues.

5. Assess and monitor workload, administrative support systems and internal reporting relationships; identify opportunities for improvement and implement as appropriate.

6. Provide staff assistance to the City Council; prepare, submit, and present staff reports and other necessary correspondence to the City Council including reports of finances and administrative activities; keep City Council advised of financial conditions, program progress, present and future needs of the City; prepare recommendations and advise the Council on matters requiring legislative action.

7. Confer with and represent the City to all departments, residents, taxpayers, businesses, and other individuals, groups, and outside agencies having an interest or potential interest in affairs of City concern; coordinate City activities with those of other cities, counties, outside agencies and organizations in accordance with the City Council policies. 326
Item 14.

CITY OF BEAUMONT
City Manager (Continued)

8. Respond to and resolve difficult, complex and sensitive citizen inquiries and complaints; contact departments involved; provide direction and delegate authority as necessary to correct issues; interpret, analyze, defend, and explain City policies, procedures, programs, and activities; negotiate and resolve sensitive and controversial issues; handle public relations dealing with the news media.

9. Attend and participate in professional group meetings; stay abreast of new trends and innovations in the field of municipal management and public administration.

10. Performs related duties, as assigned.

QUALIFICATIONS
The following generally describes the knowledge and ability required to enter the job and/or be learned within a short period of time in order to successfully perform the assigned duties.

Knowledge of:

Advanced principles and practices of public administration, including the organization, functions, and problems of municipal government.

Operations, services, and activities of a municipality.

Government, council, and legislative processes.

Principles and practices of municipal budget, preparation, and administration.

Current social, political, and economic trends and operating problems of municipal government.

Principles and practices of program development and administration.

Advanced principles and practices of organization, management, and supervision.

Principles and practices of strategic planning.

Methods of analyzing, evaluating, and modifying administrative procedures.

Decision making techniques.

Pertinent federal, state, and local laws, codes, and regulations.

Principles of effective public relations and interrelationships with community groups and agencies, private businesses and firms, and other levels of government.

Methods and techniques of research, statistical analysis, and report presentations.

Ability to:

Serve effectively as the administrative agent of the City Council.

Provide effective leadership and coordinate the activities of assigned municipal organization.

Develop and administer City-wide goals, objectives, and procedures.

Analyze and define problems, identify alternative solutions, project consequences of proposed actions, and implement recommendations in support of goals.

Identify and respond to sensitive community, organizational, and City Council issues, concerns, and needs.

Research, analyze and evaluate new service delivery methods and techniques.

Plan, organize, direct, and coordinate the work of staff.

Select, supervise, train, and evaluate staff.

Prepare clear and concise administrative and financial reports.

Prepare and administer large and complex budgets.

Interpret and apply federal, state and local policies, laws and regulations.

Negotiate and resolve complex issues.

Make effective public presentations.

Delegate authority and responsibility.

Communicate clearly and concisely, both orally and in writing.

Establish and maintain effective working relationships with those contacted in the course of work. 327
Item 14.

CITY OF BEAUMONT
City Manager (Continued)

Education and Experience Guidelines - Any combination of education and experience that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities would be:

Education/Training:

A Bachelor’s degree from an accredited college or university with major course work in public administration, business administration, planning, or a related field. A Master’s degree in a related field is desirable.

Experience:

Ten years of progressively responsible administrative or staff experience in municipal government with at least four years of experience in a high level administrative or executive capacity involving responsibility for planning, organizing, directing, and financing a varied work program.

PHYSICAL, MENTAL, AND ENVIRONMENTAL REQUIREMENTS: The conditions herein are representative of those that must be met by an employee to successfully perform the essential functions of this job.

Reasonable accommodations may be made to enable individuals with disabilities to perform the essential job functions:

Must be found to be free from any physical, emotional or mental conditions, as determined by a qualified physician and/or psychologist, which with or without accommodation might affect the ability of the employee to perform essential job functions. The position may require prolonged sitting, standing, walking, reaching, twisting, turning, kneeling, bending, squatting, and stooping in the performance of daily office activities.

Additionally, the position requires grasping, repetitive hand movement, and fine coordination in retrieving and entering data using a computer keyboard. Near and far vision is required in order to read work related documents and use the computer. Acute hearing is required when providing phone and personal service. The position requires lifting, carrying, pushing, and/or pulling objects weighing up to 25 pounds. Incumbent must be willing to work shift work, including nights, weekends, and holidays.

This classification is not intended to be all-inclusive. An employee may be required to perform other reasonable duties as assigned by management. The City reserves the right, with the concurrence of the department head, to revise or change classification duties and responsibilities as the need arises and as consistent with the meet and confer process. 328
Item 14.

2.12.060 - Powers and duties.

The City Manager shall be the administrative head of the City government under the direction and control of the City Council, except as otherwise provided in this chapter. He shall be responsible for the efficient administration of all the affairs of the City which are under his control. In addition to his general powers as administrative head, and not as a limitation thereon, it shall be his duty and he shall have the power:

A.To see that all laws and ordinances of the City are enforced, and that all franchises, permits and privileges granted by the City are faithfully observed;B.To control, order and give directions to all head of departments, subordinate officers and employees of the City, except the City Clerk, City employees from one department to another; and to consolidate or combine offices, positions, departments or units under his direction;C.To appoint, promote, demote and remove any officers and employees of the City except the City Clerk, City Treasurer, City Attorney, and members of the planning commission;D.To exercise control over all departments of the City government and over all appointive officers and employees thereof, except the City Clerk, City Treasurer, City Attorney, and members of the planning commission;E.To attend all meetings of the City Council and planning commission unless excused there from by the Council, except when his removal is under consideration by the Council;F.To recommend to the City Council for adoption such measures and ordinances as he deems necessary or expedient;G.To keep the City Council at all times fully advised as to the financial conditions and needs of the City:H.To prepare and submit to the City Council the annual budget; Council approval of the annual budget or schedule of anticipated expenditures constitutes approval to the purchasing agent to procure any items therein listed; provided, however, no purchase shall be made of an item exceeding in cost the sum of $1,000.00, or as amended from time to time by resolution, without first obtaining approval of the City Council; any items not so listed must first have approval from the City Council before purchase can be authorized by the City Manager; no expenditures shall be submitted or recommended to the City Council, except on report or approval of the City Manager;I.To make investigations into the affairs of the City, and any department or division thereof, and any contract, or the proper performance of any obligations running to the City;J.To investigate all complaints in relation to matters concerning the administration' of the City government and in regard to the service maintained by public utilities in the City, and to see that all franchises, permits and privileges granted by the City are faithfully performed and observed;K.To exercise general supervision over all public buildings, public parks and other public property which are under the control and jurisdiction of the City Council and not specifically delegated to a particular board or officer;L.He shall devote his time diligently to the duties of his office and the interest of the City;M.The services and facilities of the City Clerk, City Treasurer, and the City Attorney shall be made available to the City Manager to the same extent, in the same manner, and to the same effect they are available to the City Council;N.To perform such other duties and exercise such other powers as may be delegated to him from time to time by ordinance or resolution of the City Council. (Ord. 484 §1, 1977; Ord. 363 §6, 1965)
329
Item 14.

Staff Report

TO: City Council
FROM: Elizabeth Gibbs, City Manager
DATE August 2, 2022
SUBJECT: Approval of Compensation Plan and Salary Table

Background and Analysis:

This item was tabled by City Council on February 15, 2022, until such time when City staff could provide additional information and complete negotiations. The City compensation plan and salary table were adjusted to account for all 2022 minimum wage requirements, negotiated salary increases between bargaining units, individuals and the City of Beaumont. Those bargaining units and individuals included the Police Officers Association approved January 4, 2022, Managers Professional Technical Unit approved January 18, 2022, Police Managers approved February 15, 2022, and SEIU approved July 19, 2022.

New positions proposed during FY 2022 and 2023 budget processes have been studied and added to the compensation plan and salary table. These positions include the Assistant Director of Finance, Assistant Planner (vacant), Community Services Officer (2 vacancies), Deputy City Manager, Environmental Compliance Manager, General Manager of Utilities, GIS Analyst (vacant), Grounds Parks Facilities Superintendent, Management Analyst I, Police Captain (vacant), Procurement and Contracts Specialist (vacant), Recreation Superintendent, Senior Engineer (vacant), and Wastewater Collections Supervisor.

In addition to the negotiated labor agreement increases, City staff also proposes adjustments to some executive contract staff based on the compensation study. These positions include the Administrative Services Director, Chief of Police, Community Services Director and the Finance Director based on the compensation study. These proposed changes are predicated on the same median base concept outlined in the five-year plan that was utilized in negotiations with the City’s bargaining units. 330
Item 15.

Fiscal Impact:

All the new proposed positions, all negotiated benefits and salary adjustments have been captured in the FY 2023 budget process. The fully burdened fiscal impact to the personnel budget is approximately $4,553,340. City staff estimates the cost to prepare this staff report to be $675.

Recommended Action:

Approval of the Compensation Plan and Salary Table.

Attachments:

A. Compensation Plan and Salary Table
331
Item 15.

332
Item 15.

333
Item 15.

334
Item 15.

Staff Report

TO: City Council
FROM: Jennifer Ustation, Finance Director
DATE August 2, 2022
SUBJECT: Annual Resolution Directing the Riverside County Auditor-Controller to Place the Levy of Special Taxes for the City's Community Facilities Districts on the Fiscal Year 2022-2023 County Tax Roll

Background and Analysis:

Beaumont is required to direct the Riverside County Auditor-Controller to place its levy of special taxes for the Community Facilities Districts (CFDs) on the County tax roll. For FY2022-23 this must occur prior to August 10, 2022. The resolutions before Council are required to complete the annual enrollment and collection of the City’s Community Facilities District (“CFD”) special taxes needed to meet all financial and contractual obligations.

City staff has prepared the Fiscal Year 2022-23 Special Levy for the City’s various improvement areas (“IA”) of CFD No. 93-1, CFD Nos. 2016-1, 2016-2, 2016-3, 2016-4, 2018-1, 2019-1 and 2021-1. The calculations incorporate various assumptions as applicable for each IA or CFD, including:

1. The expected annual debt service costs;

2. The expected costs of providing services such as the landscaping, maintenance, and lighting of City-owned parks, parkways, streets, roads, and open space;

3. The expected costs of providing public safety services such as police, f ire, and ambulance and paramedic services;

4. The expected administrative costs; and

5. The collection of funds for future facilities.

Over the past several years the City has implemented measures to reduce special tax rates for all applicable IAs of CFD No. 93-1 and recently formed CFD’s for which the final series of bonds has been issued. The City’s developing CFDs, for which the final series of bonds has not been issued, are not yet eligible for a reduction. Historically, the reduction in special tax rates has been accomplished through two forms i) bond refinancing, and ii) bond issuances to fully bond CFDs/IAs. For Fiscal Year 2022-23 the 335
Item 16.

City and finance team have reviewed available funds for services and are recommending enrollment of an amount that is less than the FY 2022-23 Maximum Special Tax for Services and Public Safety. Cumulatively, this leads to a projected savings of approximately $738,451 across 29 IAs and 8 CFDs.

Approval of the following resolutions establishes the levy of all IAs/CFDs listed in Attachment A and authorizes the County of Riverside to place the levy upon the property tax roll for Fiscal Year 2022-23. Detailed parcel calculations will be provided to the County of Riverside to levy and collect such special taxes on behalf of the City.

The aggregate Fiscal Year 2022-23 projected CFD levy will show an increase over FY 2021-22, primarily as the result of building permits being issued and increased development within the City. In some cases, certain IAs/CFDs have seen an increase in their levies because the IA was not eligible for reduction and the special tax escalated annually per the requirements of the RMA and/or debt service requirements for bonds outstanding. Staff will continue to make all efforts possible to continue to reduce the special tax rates in future years for all eligible IAs/CFDs.

Multiple resolutions are provided for individual consideration. This will allow individual City Council members to recuse themselves for consideration of those IAs/CFDs for which they own property.

Fiscal Impact:

The fiscal impact on the City's general fund is indirect, as the administration and maintenance portions of assessments collected are the funding source for the administration of the CFD processes and maintenance of the various applicable geographic regions.

Recommended Action:

Waive the full reading and adopt by title only “A Resolution of the City Council of the City of Beaumont, California, Levying the Special Tax in Community Facilities Districts No. 93-1, 2016-1, 2016-2, 2016-3, 2016-4, 2018-1, 2019-1 and 2021-1 and Directing the County Auditor to Collect the Same on the Tax Rolls (93-1, 2016- 1, 2016-2, 2016-3, 2016-4, 2018-1, 2019-1 and 2021-1).”

the Tax Rolls (IA 18)”

Waive the full reading and adopt by title only “A Resolution of the City Council of the City of Beaumont, California, Levying the Special Tax in Community Facilities Districts No. 93-1 (IA 14 and 14B) and Directing the County Auditor to Collect the Same on the Tax Rolls (IA 14 and 14B).”

Waive the full reading and adopt by title only “A Resolution of the City Council of the City of Beaumont, California, Levying the Special Tax in Community Facilities Districts No. 93-1 (IA 9) and Directing the County Auditor to Collect the Same on the Tax Rolls (IA 9).”

Waive the full reading and adopt by title only “A Resolution of the City Council of the City of Beaumont, California, Levying the Special Tax in Community Facilities Districts No. 93-1 (IA 17A) and Directing the County Auditor to Collect the Same on the Tax Rolls (IA 17A).”
Attachments:

A. Resolution for Annual Levy 2022 (Balance)
B. Resolution for Annual Levy 2022 (Santos and Fenn recusal – IAs 14, 14B) C. Resolution for Annual Levy 2022 (Martinez recusal – IA 9) D. Resolution for Annual Levy 2022 (Santos recusal – IA 17A) E. Resolution for Annual Levy 2022 (White recusal – IA 18) F. Summary of CFD Special Tax Enrollment
G. PowerPoint Presentation
337
Item 16.

1 RESOLUTION NO. 2022-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

BEAUMONT, CALIFORNIA, LEVYING THE SPECIAL TAX IN
COMMUNITY FACILITIES DISTRICTS NO. 93-1, 2016-1, 2016-2, 2016-3, 2016-4, 2018-1, 2019-1 & 2021-1 AND DIRECTING THE COUNTY

AUDITOR TO COLLECT THE SAME ON THE TAX ROLLS
(93-1, 2016-1, 2016-2, 2016-3, 2016-4, 2018-1, 2019-1 & 2021-1)

WHEREAS, The City Council (the "City Council") of the City of Beaumont is the legislative body of Community Facilities Districts No. 93-1, 2016 -1, 2016 - 2, 2016 -3 , 2016 -4 , 2018 -1, 2019 -1 & 2021 -1 (collectively or individually "District "), which District was established pursuant to the provisions of the Mello- Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the G overnment C ode of the State of California (the "Act"); and

WHEREAS, on June 29, 1993 the City Council adopted Resolution 1993- 13 establishing the District, including separate improvement areas therein (each an Improvement Area, and collectively, the "Improvement Area") and providing for the Special Tax within each such Improvement Area; a n d

WHEREAS, on August 11, 1993 the City Council enacted Ordinance No. 721 in accordance with Section 53340 of the Act authorizing the levy of the Special Tax on the property located within Improvement Areas No's. 1 thru 7 (including 6A and 6B) and 10 thru 12 of the District. (Fund Code 68-2109 thru 68-2130); and

WHEREAS, on January 18, 2005 the City Council adopted Ordinance No. 873 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 6Al. (Fund Code 68-2088 & 68-2183); and

WHEREAS, on May 3, 2005 the City Council adopted Ordinance No's. 882 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 7B. (Fund Code 68-2139 & 68- 2095); and

WHEREAS, on May 3, 2005 the City Council adopted Ordinance No's. 883 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 7C. (Fund Code 68-2094 & 68- 2146); and

WHEREAS, on May 3, 2005 the City Council adopted Ordinance No's. 884 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 7D. (Fund Code 68-2179 & 68- 2180); and

WHEREAS, on December 16, 2014, the City Council adopted Ordinance No. 1053 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 7A1. (Fund Code 68-1811 & 68-1812); and

338
Item 16.

2 WHEREAS, on February 19, 2002 the City Council adopted Ordinance No. 825 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area No. 8. (Fund Code 68-2127 & 68- 2129); and

WHEREAS, on November 2, 2004 the City Council adopted Ordinance No. 871 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 8A. (Fund Code 68-2136 & 68-2101); and

WHEREAS, on June 6, 2006 the City Council adopted Ordinance No. 896 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 8B. (Fund Code 68-2140 & 68-2102); and

WHEREAS, on June 6, 2006 the City Council adopted Ordinance No. 897 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 8C. (Fund Code 68-2141 & 68-2149); and

WHEREAS, on May 1, 2007 the City Council adopted Ordinance No. 913 amending Ordinance 897 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 8C. (Fund Code 68-2141 & 68-2149); and

WHEREAS, on August 21, 2007, the City Council adopted Ordinance No. 915 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 8D. (Fund Code 68-2147 & 68-2150); and

WHEREAS, on July 21, 2015 the City Council adopted Ordinance No. 1056 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 8E. (Fund Code 68-2104 & 68-2161); and

WHEREAS, on July 21, 2015 the City Council adopted Ordinance No. 1057 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 8F. (Fund Code 68-2162 & 68-2163); and

WHEREAS, on May 22, 1995 the City Council adopted Ordinance No. 752 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area No. 13. (Fund Code 68-2120); and

WHEREAS, on November 5, 2002, the City Council adopted Ordinance No. 836 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 14A. (Fund Code 68-2181); and

WHEREAS, on May 21, 2002 the City Council adopted Ordinance No. 830 in accordance with Section 53340 of the Act authorizing the levy of the Special Tax on the property located within Improvement Area No. 15. (Fund Code 68-2128); and

WHEREAS, on July 20, 2004 the City Council adopted Ordinance No. 868 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on 339
Item 16.

3 the property located within Improvement Area 16. (Fund Code 60-2093 & 68-2134); and

WHEREAS, on December 5, 2006 the City Council adopted Ordinance No. 905 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 17B. (Fund Code 68-2089 & 68- 2142); and

WHEREAS, on August 7, 2012, the City Council adopted Ordinance No. 1022 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 17C. (Fund Code 68-2098 & 68-2144); and

WHEREAS, on December 7, 2004 the City Council adopted Ordinance No. 872 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 19A. (Fund Code 68-2096 & 68-2135); and

WHEREAS, on December 20, 2005 the City Council adopted Ordinance No. 889 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 20. (Fund Code 68-2091 & 68-2143); and

WHEREAS, on August 15, 2006 the City Council adopted Ordinance No. 899 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 23. (Fund Code 68-2138); and

WHEREAS, on June 7, 2016, the City Council adopted Ordinance No. 1073 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within CFD 2016-1 (Fund Code 68-1818 & 68-1819); and

WHEREAS, on February 21, 2017, the City Council adopted Ordinance No. 1081 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within CFD 2016-2 (Fund Code 68-0043, 68-0045 & 68-0046); and

WHEREAS, on February 21, 2017, the City Council adopted Ordinance No. 1082 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within CFD 2016-3 (Fund Code 68-0204, 68-0205 & 68-0206); and

WHEREAS, on February 21, 2017, the City Council adopted Ordinance No. 1083 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within CFD 2016-4 (Fund Code 68-0047, 68-0048 & 68-0049).

WHEREAS, on September 18, 2018, the City Council adopted Ordinance No. 1 103 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within CFD 2018 -1 (Fund Code 68-0208).

WHEREAS, on March 5, 2019, the City Council adopted Ordinance No. 1 105 in 340
Item 16.

4 accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within CFD 2019 -1 (Fund Code 68-0209, 68-0210 & 68-0211).

WHEREAS, on June 15, 2021, the City Council adopted Ordinance No. 1133 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within CFD 2021-1 (Fund Code 68-0425, 68-0426 & 68-0427).

NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Beaumont as follows:

Section 1: The preceding recitals are true and correct.

Section 2: The City of Beaumont hereby determined to Levy the Special Taxes in the Fiscal Year 2022-2023 (and each subsequent Fiscal Year) in Improvement Area No's. 1-7 (including 6A ), 10-12, 6A1, 7B, 7C, 7D, 7A1, 8, 8A-F, 13, 14B, 15, 16, 17A-C, 19A, 19C, 20, and 23 of CFD 93 -1 and CFDs 2016 -1, 2016 -2, 2016 -3 , 2016 - 4 , 2018 -1 , 2019 -1 & 2021 -1 and to each parcel therein, as provided in the schedule of Special Taxes, a copy of which has been presented to the City Council and lodged with the City Clerk.

Section 3: The rate of each Special Tax utilized in the preparation of the Report does not exceed the amount previously authorized by Ordinance and is not in excess of that approved by the qualified electors of the applicable Districts and Improvement Areas.

Section 4: As to a District and/or an Improvement Area, the proceeds of the Special Tax shall be used to pay, in whole or in part and as applicable, the costs of the following for the subject Fiscal Year as provided in the City of Beaumont Community Facilities District No. 93-1 Indenture of Trusts and the City of Beaumont CFDs 2016-1, 2016 -2, 2016 -3 , 2016-4 , 2018-1, 2019-1 & 2021 -1 Indenture of Trust (collectively the "Indenture of Trust"):

A. The Administrative costs and other incidental expenses of the applicable District and/or Improvement Area; and
B. The Interest scheduled for collection on the outstanding bonded indebtedness related to the applicable District and/or Improvement Area; and C. The principal scheduled for collection on the outstanding bonded indebtedness related to the applicable District and/or Improvement Area; and D. The sinking payments scheduled for collection on the outstanding bonded indebtedness relating to the applicable District and/or Improvement Area; and E. Amounts, if any, needed to replenish the applicable Reserve Account of the Bond Fund to the level of the Reserve Requirement; and
F. Amounts, if any, required to bring the amount on deposit in the Rebate Fund to the required level; and
G. Amounts for approved services.

Section 5: The Auditor-Controller of the County of Riverside is hereby 341
Item 16.

5 d irected to apply to each real property statement for each parcel in such County in the applicable District and/or Improvement Area for the Fiscal Year listing the Special Tax due opposite each parcel of land affected, in a line item designated "CFD Special Tax," or any other suitable designation, in accordance with this Resolution.

Section 6: All Special Taxes collected will be paid to the trustee for deposit in the applicable Special Tax fund upon receipt by the City of Beaumont from the Auditor- Controller pursuant to the terms of the Indenture of Trust.

Section 7: The Auditor-Controller shall, at the close of the tax collection period, promptly render to the Director a detailed report showing the amounts of Special Tax installments, penalties, interest, and fees collected, and from which properties collected. Any expenses to be paid to the Auditor-Controller for carrying out the forgoing responsibilities shall be in accordance with a contract, if any, entered into between the District and the Auditor-Controller, pursuant to Section 29304 of the Government Code of the State of California or as otherwise provided by law.

Section 8: This resolution shall take effect immediately upon its passage and adoption.

MOVED, PASSED, and ADOPTED this 2nd day of August , 20 2 2 , by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:

Lloyd White, Mayor

ATTEST:

__
Nicole Wheelwright, Deputy City Clerk
342
Item 16.

1 RESOLUTION NO. 2022-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

BEAUMONT, CALIFORNIA, LEVYING THE SPECIAL TAX IN
COMMUNITY FACILITIES DISTRICT NO. 93-1 (IA 18) AND

DIRECTING THE COUNTY AUDITOR TO COLLECT THE SAME ON

THE TAX ROLLS
(IA 18)

WHEREAS, Council Member Lloyd White has recused himself from any participation related to this Resolution;

WHEREAS, The City Council (the "City Council") of the City of Beaumont is the legislative body of Community Facilities District No. 93-1 ("District "), which District was established pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the G overnment C ode of the State of California (the "Act"); and

WHEREAS, on June 29, 1993 the City Council adopted Resolution 1993- 13 establishing the District, including separate improvement areas therein including Improvement Area 18 (the “Improvement Area”) and providing for the Special Tax within such Improvement Area; and

WHEREAS, on February 3, 2004 the City Council adopted Ordinance No. 853 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 18. (Fund Code 68-2097 & 68-2132).

NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Beaumont as follows:

Section 1: The preceding recitals are true and correct.

Section 2: The City of Beaumont hereby determined to Levy the Special Taxes in the Fiscal Year 2022-2023 (and each subsequent Fiscal Year) in Improvement Area No. 18 and to each parcel therein, as provided in the schedule of Special Taxes, a copy of which has been presented to the City Council and lodged with the City Clerk.

Section 4: As to the District and/or an Improvement Area, the proceeds of the Special Tax shall be used to pay, in whole or in part as applicable, the costs of the following for the subject Fiscal Year as provided in the City of Beaumont Community Facilities District No. 93-1 Indenture of Trusts (the "Indenture of Trust"):

A. The Administrative costs and other incidental expenses of the Improvement Area and/or District; and
343
Item 16.

2 B. The Interest scheduled for collection on the outstanding bonded indebtedness related to the applicable Improvement Area and/or District; and C. The principal scheduled for collection on the outstanding bonded indebtedness related to the applicable Improvement Area and/or District; and D. The sinking payments scheduled for collection on the outstanding bonded indebtedness relating to the applicable Improvement Area and/or District; and E. Amounts, if any, needed to replenish the applicable Reserve Account of the Bond Fund to the level of the Reserve Requirement; and
F. Amounts, if any, required to bring the amount on deposit in the Rebate Fund to the required level; and
G. Amounts for approved services.

Section 5: The Auditor-Controller of the County of Riverside is hereby d irected to apply to each real property statement for each parcel in such County in the applicable Improvement Area of the District for the Fiscal Year listing the Special Tax due opposite each parcel of land affected, in a line item designated "CFD Special Tax," or any other suitable designation, in accordance with this Resolution.

Section 8: This resolution shall take effect immediately upon its passage and adoption.

MOVED, PASSED, and ADOPTED this 2nd day of August, 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

RECUSED: WHITE

344
Item 16.

3 APPROVED:

Lloyd White, Mayor

ATTEST:

__
Nicole Wheelwright, Deputy City Clerk

345
Item 16.

1 RESOLUTION NO. 2022-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

BEAUMONT, CALIFORNIA, LEVYING THE SPECIAL TAX IN
COMMUNITY FACILITIES DISTRICT NO. 93-1 (IA 14 & 14B) AND

DIRECTING THE COUNTY AUDITOR TO COLLECT THE SAME ON

THE TAX ROLLS
(IA 14 & 14B)

WHEREAS, Council Members Rey Santos and David Fenn have recused themselves from any participation related to this Resolution;

WHEREAS, on June 29, 1993, the City Council adopted Resolution 1993- 13 establishing the District, including separate improvement areas therein including Improvement Area 14 and 14B (singly or collectively “Improvement Area”) and providing for the Special Tax within each such Improvement Area; a n d

WHEREAS, on January 11, 2000, the City Council adopted Ordinance No. 800 in accordance the Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area No. 14. (Fund Code 68-2122 & 68-2125); and

WHEREAS, on November 5, 2002 the City Council adopted Ordinance No. 836 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 14B. (Fund Code 68-2182).

NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Beaumont as follows:

Section 1: The preceding recitals are true and correct.

Section 2: The City of Beaumont hereby determined to Levy the Special Taxes in the Fiscal Year 2022-2023 (and each subsequent Fiscal Year) in Improvement Area Nos. 14 and 14B and to each parcel therein, as provided in the schedule of Special Taxes, a copy of which has been presented to the City Council and lodged with the City Clerk.

Section 4: As to the District and/or an Improvement Area, the proceeds of the 346
Item 16.

2 Special Tax shall be used to pay, in whole or in part and as applicable, the costs of the following for the subject Fiscal Year as provided in the City of Beaumont Community Facilities District No. 93-1 Indenture of Trusts (the "Indenture of Trust"):

A. The Administrative costs and other incidental expenses of the Improvement Area and/or District; and
B. The Interest scheduled for collection on the outstanding bonded indebtedness related to the applicable Improvement Area and/or District; and C. The principal scheduled for collection on the outstanding bonded indebtedness related to the applicable Improvement Area and/or District; and D. The sinking payments scheduled for collection on the outstanding bonded indebtedness relating to the applicable Improvement Area and/or District; and E. Amounts, if any, needed to replenish the applicable Reserve Account of the Bond Fund to the level of the Reserve Requirement; and
F. Amounts, if any, required to bring the amount on deposit in the Rebate Fund to the required level; and
G. Amounts for approved services.

Section 5: The Auditor-Controller of the County of Riverside is hereby d irected to apply to each real property statement for each parcel in such County in the applicable Improvement Areas of the District for the Fiscal Year listing the Special Tax due opposite each parcel of land affected, in a line item designated "CFD Special Tax," or any other suitable designation, in accordance with this Resolution.

Section 8: This resolution shall take effect immediately upon its passage and adoption.

MOVED, PASSED, and ADOPTED this 2nd day of August , 202 2 , by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
347
Item 16.

3 RECUSED: FENN, SANTOS

APPROVED:

Lloyd White, Mayor

ATTEST:

__
Nicole Wheelwright, Deputy City Clerk

348
Item 16.

1 RESOLUTION NO. 2022-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

BEAUMONT, CALIFORNIA, LEVYING THE SPECIAL TAX IN
COMMUNITY FACILITIES DISTRICT NO. 93-1 (IA 9) AND DIRECTING

THE COUNTY AUDITOR TO COLLECT THE SAME ON THE TAX
ROLLS
(IA 9)

WHEREAS, Council Member Julio Martinez recused himself from any participation in this Resolution;

WHEREAS, The City Council (the "City Council") of the City of Beaumont is the legislative body of Community Facilities District No. 93-1 ("District "), which district was established pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government C ode of the State of California (the "Act"); and

WHEREAS, on June 29, 1993 the City Council adopted Resolution 1993- 13 establishing the District, including separate improvement areas therein (the "Improvement Areas") and providing for the Special Tax within such Improvement Area; and

WHEREAS, on August 11, 1993, the City Council enacted Ordinance No. 721 in accordance with Section 53340 of the Act authorizing the levy of the Special Tax on the property located within Improvement Area No. 9 of the District (“Improvement Area”). (Fund Code (68-2116 & 68-2124).

NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Beaumont as follows:

Section 1: The preceding recitals are true and correct.

Section 2: The City of Beaumont hereby determines to Levy the Special Taxes in the Fiscal Year 2022-2023 (and each subsequent Fiscal Year) in Improvement Area No. 9 and to each parcel therein, as provided in the schedule of Special Taxes, a copy of which has been presented to the City Council and lodged with the City Clerk.

Section 4: As to the District and/or Improvement Area, the proceeds of the Special Tax shall be used to pay, in whole or in part and as applicable, the costs of the following for the subject Fiscal Year as provided in the City of Beaumont Community Facilities District No. 93-1 Indenture of Trusts ("Indenture of Trust"):

A. The Administrative costs and other incidental expenses of the Improvement Area and/or District; and
349
Item 16.

2 B. The Interest scheduled for collection on the outstanding bonded indebtedness related to the Improvement Area and/or District; and
C. The principal scheduled for collection on the outstanding bonded indebtedness related to the Improvement Area and/or District; and
D. The sinking payments scheduled for collection on the outstanding bonded indebtedness relating to the Improvement Area and/or District; and E. Amounts, if any, needed to replenish the applicable Reserve Account of the Bond Fund to the level of the Reserve Requirement; and
F. Amounts, if any, required to bring the amount on deposit in the Rebate Fund to the required level; and
G. Amounts for approved services.

Section 8: This resolution shall take effect immediately upon its passage and adoption.

MOVED, PASSED, and ADOPTED this 2nd day of August, 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

RECUSED: MARTINEZ

350
Item 16.

3 APPROVED:

Lloyd White, Mayor

ATTEST:

__
Nicole Wheelwright, Deputy City Clerk

351
Item 16.

1 RESOLUTION NO. 2022 -

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

BEAUMONT, CALIFORNIA, LEVYING THE SPECIAL TAX IN
COMMUNITY FACILITIES DISTRICT NO. 93-1 (IA 17A) AND

DIRECTING THE COUNTY AUDITOR TO COLLECT THE SAME ON

THE TAX ROLLS
(IA 17A)

WHEREAS, Council Member Rey Santos has recused himself from any participation related to this Resolution;

WHEREAS, on June 29, 1993 the City Council adopted Resolution 1993- 13 establishing the District, including separate improvement areas therein including Improvement Area 17A (the “Improvement Area”) and providing for the Special Tax within such Improvement Area; and

WHEREAS, on November 18, 2004 the City Council adopted Ordinance No. 851 in accordance with Section 53340 of the Act authorizing the levy of Special Tax on the property located within Improvement Area 17A. (Fund Code 68-2090 & 68- 2131).

NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Beaumont as follows:

Section 1: The preceding recitals are true and correct.

Section 2: The City of Beaumont hereby determined to Levy the Special Taxes in the Fiscal Year 2022-2023 (and each subsequent Fiscal Year) in Improvement Area No. 17A and to each parcel therein, as provided in the schedule of Special Taxes, a copy of which has been presented to the City Council and lodged with the City Clerk.

A. The Administrative costs and other incidental expenses of the Improvement Area and/or District; and
352
Item 16.

Section 8: This resolution shall take effect immediately upon its passage and adoption.

MOVED, PASSED, and ADOPTED this 2nd day of August 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

RECUSED: SANTOS

353
Item 16.

3 APPROVED:

Lloyd White, Mayor

ATTEST:

__
Nicole Wheelwright, Deputy City Clerk

354
Item 16.

EXHIBIT F

SUMMARY OF CFD SPECIAL TAX ENROLLMENT
FISCAL YEAR 2022-2023

Fund
Number District Name Parcels (for FY
22-23)
Actual FY 2021-22
Levy
Proposed FY
2022-23 Levy
68-2109 CFD No. 93-1 IA 1 79 $198,437 $202,651
68-2110 CFD No. 93-1 IA 2 1 $32,916 $33,575
68-2111 CFD No. 93-1 IA 3 511 $242,398 $242,200
68-2123 CFD No. 93-1 IA 3 SERVICE 511 $190,194 $190,204 68-2112 CFD No. 93-1 IA 4 3 $321,889 $329,367
68-2113 CFD No. 93-1 IA 5 983 $291,635 $298,189
68-2114 CFD No. 93-1 IA 6A 2 $7,269 $7,415
68-2183 CFD No. 93-1 IA 6A1 953 $2,369,700 $2,369,709
68-2088 CFD No. 93-1 IA 6A1 SERVICE 954 $340,578 $340,582 68-1811 CFD No. 93-1 IA 7A1 485 $703,321 $701,725
68-1812 CFD No. 93-1 IA 7A1 SERVICE 537 $191,677 $191,686 68-2139 CFD No. 93-1 IA 7B 234 $294,452 $292,837
68-2095 CFD No. 93-1 IA 7B SERVICE 283 $101,014 $101,019 68-2146 CFD No. 93-1 IA 7C 318 $129,735 $124,533
68-2094 CFD No. 93-1 IA 7C SERVICE 391 $139,564 $139,571 68-2179 CFD No. 93-1 IA 7D 296 $231,747 $233,750
68-2180 CFD No. 93-1 IA 7D SERVICE 296 $105,755 $105,757 68-2127 CFD No. 93-1 IA 8 944 $663,817 $668,737
68-2129 CFD No. 93-1 IA 8 SERVICE 946 $346,577 $346,579 68-2136 CFD No. 93-1 IA 8A 408 $513,953 $513,471
68-2101 CFD No. 93-1 IA 8A SERVICE 178 $65,390 $65,392
68-2140 CFD No. 93-1 IA 8B 192 $449,043 $450,180
68-2102 CFD No. 93-1 IA 8B SERVICE 192 $70,341 $70,345
68-2141 CFD No. 93-1 IA 8C 686 $1,495,337 $1,520,415
68-2149 CFD No. 93-1 IA 8C SERVICE 689 $252,491 $252,501 68-2147 CFD No. 93-1 IA 8D 279 $462,140 $469,467
68-2150 CFD No. 93-1 IA 8D SERVICE 279 102,242 $102,247 68-2104 CFD No. 93-1 IA 8E 372 $672,846 $689,450
68-2161 CFD No. 93-1 IA 8E SERVICE 372 $142,297 $142,303 68-2162 CFD No. 93-1 IA 8F 294 $618,099 $630,100
68-2163 CFD No. 93-1 IA 8F SERVICE 294 $112,461 $112,465 68-2116 CFD No. 93-1 IA 9 69 $60,200 $59,200
68-2124 CFD No. 93-1 IA 9 SERVICE 69 $15,561 $15,561
68-2117 CFD No. 93-1 IA 10 146 $168,998 $165,600
68-2126 CFD No. 93-1 IA 10 SERVICE 147 $33,151 $33,152
68-2118 CFD No. 93-1 IA 11 140 $113,649 $116,650
68-2121 CFD No. 93-1 IA 11 SERVICE 140 $34,012 $34,012
68-2119 CFD No. 93-1 IA 12 106 $113,649 $116,650
355
Item 16.

68-2130 CFD No. 93-1 IA 12 SERVICE 108 $39,567 $39,567
68-2120 CFD No. 93-1 IA 13 107 $42,732 $42,733
68-2122 CFD No. 93-1 IA 14 1899 $626,797 $632,673
68-2125 CFD No. 93-1 IA 14 SERVICE 1941 $642,725 $642,758 68-2181 CFD No. 93-1 IA 14A 1251 1,136,626 $1,135,944
68-2182 CFD No. 93-1 IA 14B 310 $304,829 $303,309
68-2128 CFD No. 93-1 IA 15 71 $27,510 $27,510
68-2134 CFD No. 93-1 IA 16 240 $597,415 $592,213
68-2093 CFD No. 93-1 IA 16 SERVICE 241 $86,023 $86,027
68-2131 CFD No. 93-1 IA 17A 484 $744,975 $745,667
68-2090 CFD No. 93-1 IA 17A SERVICE 488 $174,187 $174,196 68-2142 CFD No. 93-1 IA 17B 388 $730,645 $736,766
68-2089 CFD No. 93-1 IA 17B SERVICE 390 $139,214 $139,217 68-2144 CFD No. 93-1 IA 17C 215 $479,523 $492,125
68-2098 CFD No. 93-1 IA 17C SERVICE 216 $80,654 $80,657 68-2132 CFD No. 93-1 IA 18 193 $413,422 $411,244
68-2097 CFD No. 93-1 IA 18 SERVICE 194 $69,246 $69,250
68-2135 CFD No. 93-1 IA 19A 542 $1,527,345 $1,529,663
68-2096 CFD No. 93-1 IA 19A SERVICE 599 $210,530 $211,126 68-2137 CFD No. 93-1 IA 19C 667 $1,695,631 1,665,660
68-2099 CFD No. 93-1 IA 19C SERVICE 669 $240,760 $240,773 68-2143 CFD No. 93-1 IA 20 106 $248,506 $250,317
68-2091 CFD No. 93-1 IA 20 SERVICE 106 $38,147 $38,149
68-2138 CFD No. 93-1 IA 23 65 $26,875 $26,876
68-1818 CFD No. 2016-1 372 $576,634 $576,538
68-1819 CFD No. 2016-1 SERVICE 372 $132,797 $132,803
68-0045 CFD No. 2016-2 527 $666,894 $669,100
68-0043 CFD No. 2016-2 SERVICE 527 $195,823 $195,828
68-0046 CFD No. 2016-2 PUBLIC SERVICE 527 $268,391 $268,400 68-0204 CFD No. 2016-3 373 $486,922 $598,869
68-0205 CFD No. 2016-3 SERVICE 373 $26,178 $32,881
68-0206 CFD No. 2016-3 PUBLIC SERVICE 373 $151,256 $189,968 68-0047 CFD No. 2016-4 346 $275,672 $272,475
68-0049 CFD No. 2016-4 SERVICE 346 $27,410 $27,413
68-0048 CFD No. 2016-4 PUBLIC SERVICE 346 $176,211 $176,217 68-0208 CFD No. 2018-1 PUBLIC SERVICE 510 $195,587 $259,771 68-0209 CFD No. 2019-1 118 $144,636 $143,288
68-0210 CFD No. 2019-1 SERVICE 118 $35,578 $35,579
68-0211 CFD No. 2019-1 PUBLIC SERVICE 118 $60,102 $60,104 68-0425 CFD No. 2021-1 201 $0 $520,000
68-0426 CFD No. 2021-1 SERVICE 201 $0 $41,205
68-0427 CFD No. 2021-1 PUBLIC SERVICE 201 $0 $102,309
Total 31,218 $26,142,510 $27,092,415

356
Item 16.

CFD Annual Levy
August 2, 2022
FY 2022-2023
357
Item 16.

Annual Enrollment
36 Improvement Areas of CFD 93-1
62 Separate Taxes
Each year Council approves the annual enrollment
resolutions. The FY 2022-23 Special Tax Levy includes:

CFD Nos. 2016-1, 2016-2, 2016-3, 2016-4, 2018-1, 2019-1, & 2021-1 18 Separate Taxes
Includes reductions to the Proposed Services Special Tax Levy 358
Item 16.

Purpose of the Enrollment
The Special Taxes collected each year
pay for the following:
•Annual debt service on bonds
•Costs of providing maintenance services
•Costs of providing public safety services
•Administration costs
•Collection of Future Facilities funds (for CFD’s
which are developing or have not issued the final
series of Bonds)
359
Item 16.

Master Budget Summary
Budget Line Items FY 2021-22
Actual
FY 2022-23
Proposed Total Change % Change
Debt Service Payment $19,291,415 $19,358,916 $67,501 0.3% Maintenance Services $4,074,485 $4,115,160 $40,675 1.0% Public Safety Services $766,416 $951,091 $184,675 24.1% Administrative Expenses $1,553,653 $1,612,374 $58,721 3.8% Delinquency Reserve $0 $0 $0 N/A
Future Facility $456,922 $1,058,869 $601,947 131.7%
Total Expenses $26,142,892 $27,096,410 $953,519 3.7%
There are approximately 33,690 separate charges
proposed for enrollment on 14,705 individual parcels within the City 360
Item 16.

Changes this Year
The proposed services special tax
enrollment for FY 22-23 provides for a
savings to property owners
FY 2022-23 Savings vs. Maximum Rates
•Projected savings of approximately $738,451
•29 IAs and 8 CFDs
•13,919 Parcels
361
Item 16.

Savings Summary for Changes this Year
Reduction in Services
Special Tax
CFD Total Parcel Count –14,705
93%
362
Item 16.

Aggregate Savings Summary
13,113 Parcel Count
Pay-Go Reduction
10,098 Parcel Count
Refinancing
654 Parcel Count
No Changes
CFD Total Parcel Count –14,705
Totals above intentionally do not add up to CFD Total. Parcels may be counted in more than one category. 4%
69%89%
363
Item 16.

FY 2022-2023 CFD Annual Levy
August 2, 2022364
Item 16.

Staff Report

TO: City Council
FROM: Jeff Hart, Public Works Director
DATE August 2, 2022
SUBJECT: Award a Public Works Agreement to Kemcorp Construction Inc. for Construction of Westside Fire Station CIP 2018-028

Background and Analysis:

On January 19, 2022, CIP 2017-028 Westside Fire Station (Project) was publicly advertised soliciting construction bids. On March 11, 2022, ten (10) bids were received and publicly opened. A bid protest was received on April 24, 2022; subsequently, the two lowest bidders were deemed non-responsive, and on June 21, 2022, City Council rejected all bids and authorized staff to readvertise for construction bid.

Pursuant to City Council’s direction, the Project was readvertised on June 22, 2022. On July 18, 2022, seven (7) bids were received and publicly opened. The following is a summary of the received bids:

1. Kemcorp Construction Inc. (Kemcorp) $7,475,000

2. AMG $7,565,000

3. Archico $7,780,000

4. Robert Clapper Construction $7,791,000

5. Dalke & Sons $7,964,890

6. Horizons Construction $8,081,747

7. Newman Midland $10,612,198

Kemcorp was the apparent low bidder. The City received two bid protests, and in coordination with the City Attorney’s Office reviewed the protest. It was determined that Kemcorp’s bid substantially conforms to a call for bids and may be accepted as the variance does not appear to have affected the amount of the bid, or given the bidder an advantage or benefit not allowed other bidders.

365
Item 17.

Kemcorp possesses the appropriate contractor’s license, has provided all requested information and bid bonds, and provided requested references as required by the contract documents

Therefore, staff is recommending the City Council waive all minor bid irregulates and award a public works agreement to Kemcorp for construction of the Project.

Fiscal Impact:

Project funding is based on the approved 5-Year CIP for various years as summarized below:

FY17/18 DIF $1,000,000
FY18/19 DIF $3,100,000
FY20/21 Bond Proceeds $3,984,954
FY20/21 General Fund Reserves $565,045
Total $8,649,999

The following table is a summary of the project budget prior to the award of the public works agreement to Kemcorp:

The public works agreement for construction is in an amount not to exceed $7,475,000.

Staff is recommending a contingency of $638,500, or approximately 9% of the public works agreement, to allow for incidental expenses, for a total construction budget of $8,113,500. The construction budget will be established from the available CIP budget as shown in the preceding table.

Project Components Budget Encumbered Paid to Date Remaining Budget Project Management $ 2,500 $ (2,317) $ 2,317 $ 183 Preliminary Services $ 7,500 $ (7,500) $ 7,500 $ - Environmental $ 150,000 $ (146,559) $ 63,977 $ 3,441 Design $ 270,000 $ (270,101) $ 237,273 $ (101) Construction $ 8,113,500 $ 8,113,500 Construction Management $ 40,000 $ 40,000 Permits $ 66,499 $ 66,499 Equipment
Project Accounting Summary Totals 8,649,999$ (426,477)$ 311,067$ 8,223,522$ 2017-028 Project Accounting Summary
366
Item 17.

Recommended Action:

Waive all minor bid irregulates and award a public works agreement to Kemcorp Construction Inc. for construction of Westside Fire Station CIP 2018-028 in an amount not to exceed $7,475,000; and, authorize the City Manager to sign change orders up to an additional $638,500 for a total construction budget of $8,113,500.

Attachments:

A. Public Works Agreement (Kemcorp)

367
Item 17.

Page 1 of 13 ends

CITY OF BEAUMONT

PUBLIC WORKS AGREEMENT

This PUBLIC WORKS AGREEMENT (“Agreement”) is made and effective August 02, 2022 by and between the City of Beaumont, a municipal corporation (“CITY”), and KEMCORP Construction Inc. (“CONTRACTOR”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

I. SCOPE OF WORK

The CONTRACTOR shall perform within the time set forth in Article 2 of this Agreement and shall furnish all labor, materials, equipment, tools, utility services, and transportation and perform and complete all work required in connection with the Westside Fire Station CIP 2017-028 (hereinafter “Project”). CITY’s Invitation for Bids (“Invitation”) for the Project, dated June 22, 2022, and CONTRACTOR’s Bid in response to the Invitation, dated July 18, 2022, are attached hereto as Exhibits A and B, respectively and incorporated herein by this reference. The Scope of Work for the Project is set forth in the Invitation. In the event that any terms of the Bid are different from the Invitation for Bids, the Invitation for Bids shall control. Any additional terms in the Bid that purport to bind the City to any additional terms not contained in this Agreement and related attachments shall not be binding on the City.

By entering into this Agreement, CONTRACTOR acknowledges that there may be other contractors on the site whose work will be coordinated with that of its own.

CONTRACTOR expressly warrants and agrees that it will cooperate with other contractors and will do nothing to delay, hinder, or interfere with the work of o ther separate contractors, the CITY, the Construction Manager, the Engineer, or utilities. CONTRACTOR also expressly agrees that, in the event its work is hindered, delayed, interfered with, or otherwise affected by a separate contractor, its sole remedy will be a direct action against the separate contractor. To the extent allowed by law, the CONTRACTOR will have no remedy, and hereby expressly waives any remedy against the CITY, the Construction Manager (if any), and the Engineer on account of delay, hindrance, interference or other events.

II. TIME FOR PROJECT COMPLETION

All of CONTRACTOR’s work on the Project shall be completed within durations established for the individual activities. All work shall commence ten (10) calendar days after receiving a written Notice of Award from the CITY or Construction Manager, if a Construction Manager is employed by CITY on the Project.

CONTRACTOR shall refer to the invitations for bids, and Project Plans and Specifications, all of which, as set forth below, are incorporated herein by reference, for contractual obligations regarding individual activity durations.

368
Item 17.

Page 2 of 13 ends

III. THE CONTRACT SUM

The CITY shall pay to the CONTRACTOR for the performance of this Agreement, subject to any additions and deductions provided in the Project documents, the sum of seven million four hundred seventy-five thousand dollars ($7,475,000.00).

IV. PROGRESS PAYMENTS

Based upon Applications for Payment submitted to the Engineer by the CONTRACTOR and Certificates for Payment issued by the Engineer, the CITY shall make progress payments on account of the Contract Sum to the CONTRACTOR as provided in the General Conditions, which are fully incorporated into this Agreement by this reference.

This Agreement is subject to the provisions of Article 1.7 (commencing at Section 20104.50) of Division 2, Part 3 of the Public Contract Code regarding prompt payment of contractors by local governments. Article 1.7 mandates certain procedures for the payment of undisputed and properly submitted payment requests within 30 days after receipt, for the review of payment requests, for notice to Contractor of improper payment requests, and provides for the payment of interest on progress payment requests which are not timely made in accordance with that Article. This Agreement hereby incorporates the provisions of Article 1.7 as though fully set forth herein.

V. INDEMNITY, DEFENSE AND HOLD HARMLESS AGREEMENT

CONTRACTOR shall indemnify, defend with legal counsel approved by CITY, and hold harmless CITY, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection wit h CONTRACTOR’s negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the CITY. Should conflict of interest principles preclude a single legal counsel from representing both CITY and CONTRACTOR, or should CITY otherwise find CONTRACTOR’s legal counsel unacceptable, then CONTRACTOR shall reimburse the CITY its costs of defense, including without limitation reasonable legal counsels fees, expert fees and all other costs and fees of litigation. The CONTRACTOR shall promptly pay any final judgment rendered against the CITY (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the CONTRACTOR’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.
369
Item 17.

Page 3 of 13 ends

CONTRACTOR obligations under this section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of CITY under any provision of this agreement, CONTRACTOR shall not be required to indemnify and hold harmless CITY for liability attributable to the active negligence of CITY, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisd iction. In instances where CITY is shown to have been actively negligent and where CITY active negligence accounts for only a percentage of the liability involved, the obligation of CONTRACTOR will be for that entire portion or percentage of liability not attributable to the active negligence of CITY.

VI. PREVAILING WAGES

A. Contractor shall comply with all applicable laws and regulations relating to prevailing wages. Wage rates for this Project shall be in accordance with the “General Wage Determination Made By the Director of Industrial Relations Pursuant To California Labor Code, Part 7, Chapter 1, Article 2, Sections 1770, 1773 and 1773.1”, for Riverside County. Wage rates shall conform with those posted at Beaumont City Hall and the Project site.

B. The following Labor Code sections are hereby referenced and made a part of this Agreement:

1. Section 1775 - Penalty for Failure to Comply with Prevailing Wage Rates.

2. Section 1777.4 - Apprenticeship Requirements.

3. Section 1777.5 - Apprenticeship Requirements.

4. Section 1813 - Penalty for Failure to Pay Overtime.

5. Sections 1810 and 1811 - Working Hour Restrictions.

6. Section 1775 - Payroll Records.

7. Section 1773.8 - Travel and Subsistence Pay.

VII. RECORD AUDIT

In accordance with Government Code, Section 8546.7, records of both the CITY and the CONTRACTOR shall be subject to examination and audit by the Auditor General for a period of three (3) years after final payment.

VIII. FINAL PAYMENT

Final payment, constituting the entire unpaid balance of the Agreement Sum, shall be paid by the CITY to the CONTRACTOR no sooner than thirty-five (35) days after a Notice of Completion has been recorded, unless otherwise stipulated in the 370
Item 17.

Page 4 of 13 ends

Notice of Completion, provided the work has then been completed, the Agreement fully performed, and a final Certificate for Payment has been issued by the Engineer.

IX. CONTRACTOR’S FAILURE TO PROCURE COMPLETION OF PROJECT

In the event CONTRACTOR fails to furnish tools, equipment, or labor in the necessary quantity or quality, or fails to prosecute the work or any part thereof contemplated by this Agreement in a diligent and workmanlike manner, and if the CONTRACTOR for a period of three (3) calendar days after receipt of written demand from CITY or its designated representative to do so, fails to furnish tools, equipment, or labor in the necessary quantity or quality, and to prosecute its work and all parts thereof in a diligent and workmanlike manner, or after commencing to do so within said three (3) calendar days, fails to continue to do so; then the CITY may exclude the CONTRACTOR from the premises, or any portion thereof, and take possession of said premises or any portion thereof, together with all material and equipment thereon, and may complete the work contemplated by this Agreement or any portion of said work, either by furnishing the tools, equipment, labor or material necessary, or by letting the unfinished portion of said work, or the portion taken over by the CITY to another contractor or by a combination of such methods. In any event, the procuring of the completion of said work, or the portion thereof taken over by the CITY, shall be a charge against the CONTRACTOR, and may be deducted from any money due or becoming due to CONTRACTOR from the CITY, or the CONTRACTOR shall pay the CITY the amount of said charge, or the portion thereof unsatisfied. The sureties, provided for under this Agreement shall become liable for payment should CONTRACTOR fail to pay in full any said cost incurred by the CITY.

X. INSURANCE

Prior to the beginning of and throughout the duration of the Project, CONTRACTOR and its subcontractors shall maintain insurance in conformance with the requirements set forth below. Attached hereto as Exhibit C are copies of Certificates of Insurance and the waiver of subrogation endorsement as required by Section 6.B.1. CONTRACTOR will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth herein, CONTRACTOR agrees to amend, supplement or endorse the existing coverage to do so.

CONTRACTOR acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to CONTRACTOR or its subcontractors in excess of the limits and coverage identified in this Agreement and which is applicable to a given loss, claim or demand, will be equally available to CITY.

A. Types of Insurance
371
Item 17.

Page 5 of 13 ends

Without limiting CONTRACTOR’s indemnification of CITY, and prior to commencement of Work, CONTRACTOR shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to CITY:

1. General liability insurance. CONTRACTOR shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $2,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.

2. Automobile liability insurance. CONTRACTOR shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the CONTRACTOR arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.

3. Umbrella or excess liability insurance. If CONTRACTOR is using umbrella coverage to meet part of its liability insurance requirements under Paragraph 1 of this Section, CONTRACTOR shall obtain and maintain an umbrella or excess liability insurance that will provide bodily injury, personal injury, completed operations and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability.

Such policy or policies shall include the following terms and conditions:

 A drop down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectable in whole or in part for any reason;  Pay on behalf of wording as opposed to reimbursement;  Concurrency of effective dates with primary policies;  Policies shall “follow form” to the underlying primary policies; and  Insureds under primary policies shall also be insureds under the umbrella or excess policies.

4. Workers’ compensation insurance. CONTRACTOR shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for CONTRACTOR’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, 372
Item 17.

Page 6 of 13 ends

CONTRACTOR shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees.

CONTRACTOR shall submit to CITY, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of CITY, its officers, agents, employees and volunteers.

5. Pollution liability insurance. Environmental Impairment Liability Insurance shall be written on a CONTRACTOR’s Pollution Liability form or other form acceptable to CITY providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this Agreement shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the project site to the final disposal location, including non-owned disposal sites.

Products/completed operations coverage shall extend a minimum of three (3) years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent con tractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The CITY, its officials, officers, agents, and employees, shall be included as insureds under the policy.

6. Builder’s risk insurance. Upon commencement of construction and with approval of CITY, CONTRACTOR shall obtain and maintain builder’s risk insurance for the entire duration of the Project until only the CITY has an insurable interest. The Builder’s Risk coverage shall include the coverages as specified below.

The named insureds shall be CONTRACTOR and CITY, including its officers, officials, employees, and agents. All Subcontractors (excluding those solely responsible for design Work) of any tier and suppliers shall be included as additional insureds as their interests may appear.

CONTRACTOR shall not be required to maintain property insurance for any portion of the Project following transfer of control thereof to CITY.

The policy shall contain a provision that all proceeds from the builder’s risk policy shall be made payable to the CITY. The CITY will act as a fiduciary for all other interests in the Project.

373
Item 17.

Page 7 of 13 ends

Policy shall be provided for replacement value on an “all risk” basis for the completed value of the project. There shall be no coinsurance penalty or provisional limit provision in any such policy. Policy must include: (1) coverage for any ensuing loss from faulty workmanship, Nonconforming Work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the Project; (4) Ordinance or law coverage for contingent rebuilding, demolition, and increased costs of construction; (5) transit coverage (unless insured by the supplier or receiving contractor), with sub-limits sufficient to insure the full replacement value of any key equipment item; (6) Ocean marine cargo coverage insuring any Project materials or supplies, if applicable; (7) coverage with sub-limits sufficient to insure the full replacement value of any property or equipment stored either on or off the Site or any staging area. Such insurance shall be on a form acceptable to CITY to ensure adequacy of terms and sublimits and shall be submitted to the CITY prior to commencement of construction.

B. Other provisions or requirements

1. Proof of insurance. CONTRACTOR shall provide certificates of insurance to CITY as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers ’ compensation. Insurance certificates and endorsements must be approved by CITY’s risk manager prior to commencement of performance. Current certification of insurance shall be kept on file with CITY at all times during the term of this contract. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.

2. Duration of coverage. CONTRACTOR shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by CONTRACTOR, his agents, representatives, employees or subcontractors. CONTRACTOR must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. CITY and its officers, officials, employees, and agents shall continue as additional insureds under such policies.

3. Primary/noncontributing. Coverage provided by CONTRACTOR shall be primary and any insurance or self-insurance procured or maintained by CITY shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and 374
Item 17.

Page 8 of 13 ends

umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non -contributory basis for the benefit of CITY before the CITY’s own insurance or self-insurance shall be called upon to protect it as a named insured.

4. CITY’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these requirements or is canceled and not replaced, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY will be promptly reimbursed by CONTRACTOR or CITY will withhold amounts sufficient to pay premium from CONTRACTOR payments. In the alternative, CITY may cancel this Agreement.

5. Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the CITY’s risk manager.

6. Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against CITY, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow C ONTRACTOR or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss.

CONTRACTOR hereby waives its own right of recovery against CITY, and shall require similar written express waivers and insuran ce clauses from each of its subconsultants.

7. Enforcement of contract provisions (non estoppel). CONTRACTOR acknowledges and agrees that any actual or alleged failure on the part of the CITY to inform CONTRACTOR of non-compliance with any requirement imposes no additional obligations on the CITY nor does it waive any rights hereunder.

8. Requirements not limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. 375
Item 17.

Page 9 of 13 ends

If the CONTRACTOR maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the CITY.

9. Notice of cancellation. CONTRACTOR agrees to oblige its insurance agent or broker and insurers to provide to CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.

10. Additional insured status. General liability policies shall provide or be endorsed to provide that CITY and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies.

This provision shall also apply to any excess/umbrella liability policies.

11. Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to CITY and approved of in writing.

12. Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that CONTRACTOR’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions.

13. Pass through clause. CONTRACTOR agrees to ensure that its subconsultants, subcontractors, and any other party involved with the project who is brought onto or involved in the project by CONTRACTOR, provide the same minimum insurance coverage and endorsements required of CONTRACTOR. CONTRACTOR agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. CONTRACTOR agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to CITY for review.

14. CITY’s right to revise requirements. The CITY reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the CONTRACTOR a ninety (90) day advance written notice of such change. If such change results in substantial additional cost to the CONTRACTOR, the CITY and CONTRACTOR may renegotiate CONTRACTOR’s compensation.

376
Item 17.

Page 10 of 13 ends

15. Self-insured retentions. Any self-insured retentions must be declared to and approved by CITY. CITY reserves the right to require that self- insured retentions be eliminated, lowered, or replaced by a deductible.

Self-insurance will not be considered to comply with these specifications unless approved by CITY.

16. Timely notice of claims. CONTRACTOR shall give CITY prompt and timely notice of claims made or suits instituted that arise out of or result from CONTRACTOR’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies.

17. Additional insurance. CONTRACTOR shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work.

XI. CONTRACTOR’S LICENSE

CONTRACTOR must possess at the time of commencing work and throughout the Project duration, a Contractor’s License, issued by the State of California, which is current and in good standing. CONTRACTOR shall ensure that any subcontractor working on the Project possesses at the time of commencing work and throughout the Project duration, a Contractor’s License, issued by the State of California, which is current and in good standing.

XII. REGISTRATION REQUIREMENTS

A. Pursuant to Section 1771.1(a) of the Labor Code:

“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in this chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.”

B. CONTRACTOR must be registered with the Department of Industrial Relations (DIR) of the State of California in order to be eligible to work on public works projects. CONTRACTOR must ensure registration with the DIR that is active and in good standing.

377
Item 17.

Page 11 of 13 ends

C. No contractor or subcontractor may be listed on a bid proposal for a public works project (submitted on or after March 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].

No contractor or subcontractor may be awarded a contract for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5.

This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

D. The CONTRACTOR is not subject to public works requirements (including registration with the DIR) if the public works project is under $1,000, unless the CITY knows that the same CONTRACTOR will be awarded total project costs in excess of $1,000 for a given year.

378
Item 17.

Page 12 of 13 ends

XIII. CORPORATION IN GOOD STANDING

If CONTRACTOR is a corporation, the undersigned hereby represents and warrants that the corporation is duly incorporated and in good standing in the State of California, and that David Van Dyke whose title is President is authorized to act for and bind the corporation.

XIV. PROVISIONS REQUIRED BY LAW

Each and every provision of law and clause required by law to be inserted in this Agreement shall be deemed to be inserted herein and the Agreement shall be read and enforced as though it were included herein, and if through mistake or otherwise any such provision is not inserted, or is not currently inserted, then upon application of either party the Agreement shall forthwith be physically amended to make such insertion or correction.

XV. SUBSURFACE HAZARDOUS MATERIALS

A. In the event trenches or other excavations extend deeper than four (4) feet below the surface, the CONTRACTOR shall promptly, and before the following conditions are disturbed, notify the CITY in writing of any:

1. Material that the CONTRACTOR believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code that is required to be removed to a Class I, Class II or Class III disposal site in accordance with the provisions of existing law.

2. Subsurface or latent physical conditions at the site differing from those indicated.

3. Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in the Work or the character provided for in the CONTRACT.

B. Upon receipt of said notification the CITY will investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in the CONTRACTOR’s cost of or the time required for performance of any part of the work, the CITY will issue a change order under the procedures described in the General Conditions.

C. In the event that a dispute arises between the CITY and the CONTRACTOR whether the conditions materially differ, or involve hazardous waste or cause a decrease or increase in the CONTRACTOR’s cost of or time required for performance of any part of the work, the CONTRACTOR shall not be excused from any scheduled completion date provided for by the Agreement, but shall proceed with all work to be performed under the 379
Item 17.

Page 13 of 13 ends

Agreement. The CONTRACTOR shall retain any and all rights provided either by Agreement or by law which pertain to the resolution of disputes and protests between the contracting parties.

XVI. COMPONENT PARTS OF THE CONTRACT

This Agreement entered into consists of the following CONTRACT DOCUMENTS, all of which are component parts of the Agreement as if herein set out in full or attached hereto:

Notice Inviting Bids
Scope of Work Summary
Information for Bidders
Bid Form
Non-Collusion Affidavit
Site Visit Certification
Faithful Performance Bond
Labor and Materials Payment
Bond
General and Supplemental
Conditions
Special Conditions
Project Construction Schedule
Proposed Subcontractors
Bid Bond
Information Required of Bidder
Construction Services Agreement
Certificate Regarding Worker’s
Compensation
Drug-free Workplace Certification
Plans and Specifications
Addenda
Drawings
Change Orders
Shop Drawing Transmittals
Contractor’s Certificate Regarding
Non-Asbestos Containing
Materials

All of the above named CONTRACT DOCUMENTS are intended to be complementary. Work required by one of the above named CONTRACT DOCUMENTS and not by others shall be done as if required by all.

XVII. ENTIRE CONTRACT

This Agreement constitutes the entire contract of the parties. No other agreements or contracts, whether oral or written, pertaining to the work to be performed, exists between the parties. This Agreement can be modified only by an amendment in writing, signed by both parties.

[Signatures on following page.]
380
Item 17.

14 SIGNATURE PAGE TO

CITY OF BEAUMONT

PUBLIC WORKS AGREEMENT

CITY:

CITY OF BEAUMONT

By:
________________________________
Mayor
CONTRACTOR:

KEMCORP Construction Inc.

By: ______________________________

Print Name: _______________________

Title:
_____________________________

381
Item 17.

15 CITY OF BEAUMONT

PUBLIC WORKS AGREEMENT

EXHIBIT “A”

CITY’S INVITATION FOR BIDS

(Insert behind this page.)

382
Item 17.

16 CITY OF BEAUMONT

PUBLIC WORKS AGREEMENT

EXHIBIT “B”

CONTRACTOR’S Bid

(Insert behind this page.)

383
Item 17.

17 CITY OF BEAUMONT

PUBLIC WORKS AGREEMENT

EXHIBIT “C”

Insurance Certificates and Endorsements

(Insert behind this page.)

384
Item 17.

City of Beaumont
Request for bid
Westside Fire Station
CIP 2017-028

NOTICE INVITING BIDS
1 NOTICE INVITING BIDS

The City of Beaumont, Public Works Department (“City”) is soliciting bids for:

CIP 2017-028 WESTSIDE FIRE STATION

BID DATES, TIMES, & LOCATIONS:

Bid Published: June 22, 2022
Bids Must Be Received By: July 18, 2022 @ 11:00 AM
Place Of Bid Receipt: 550 E. Sixth Street (City Hall) Beaumont, CA 92223
Questions In By: July 6, 2022 @ 11:00 A.M.

Bid Opening Date: July 18, 2022 @ 11:15 AM
Bid Opening Location: 550 E. Sixth Street (City Hall), Room 4 Beaumont, CA 92223

Bids received after this time will be discarded. Bids shall be valid for 60 calendar days after the bid opening date. Bids must be submitted on the City’s Bid Forms. Bids must be prepared on the approved Bid forms and in the manner pre scribed in the Instructions to Bidders. Bids must be submitted with the following subject:

“BID FOR CIP 2017-028 WESTSIDE FIRE STATION”

LOCATION OF WORK:

The work to be completed is located on a City-owned parcel at the northeast corner of Potrero and Olivewood, in the City of Beaumont. APN 414-120-042.

DESCRIPTION OF WORK:

The proposed work shall be performed in accordance with the Contract ; General, Special, and technical Specifications and Drawings.

In general, the work includes construction of a new Fire Station with a 4,730 sq ft offices, day room, Dormitories, kitchen, and weight room wing and a 4,790 sq ft apparatus bay.

Site development of the ~4.09 ac parcel includes grading, drainage devices, paving, utility construction, utility connections, driveways, sidewalks, block walls, water quality features, and landscaping.

CONTRACT LENGTH:

The work for this contract shall not exceed 360 calendar days. Contract time shall commence based on the contractor’s lead time of construction material. Appliances are excluded from contract time commencement negotiations.

AWARD OF CONTRACT:

The City shall award the Contract for the Project to the lowest responsive, responsible 385
Item 17.

City of Beaumont
Request for bid
Westside Fire Station
CIP 2017-028

NOTICE INVITING BIDS
2 bidder as determined from the base bid. Th e City reserves the right to reject any or all bids or to waive any irregularities or informalities in any bids or in the bidding process.

The City of Beaumont hereby affirmatively ensures that minority business enterprises will be afforded full opportunity to submit Bids in response to this Notice, and that minorities nor minority business enterprises will not be discriminated against on the basis of race, color, national origin, ancestry, sex, or religion in any consideration leading to the awar d of contract. For further information, please see the form titled “Notice of Requirement for Affirmative Action to Ensure Equal Employment Opportunity (Executive Order 11246)” within the Bid Documents.

CONTRACT DOCUMENTS AND SPECIFICATION:

Copies of the Contract Documents and Specification are available for inspection at no cost to the bidder at City Hall. The documents can also be downloaded from the City’s Website ( https://www.beaumontca.gov) and WWW.PUBLICPURCHASE.COM and reviewed at no cost.

BID & BIDDER:

Bids must be accompanied by cash, a certified or cashier’s check, or a Bid Bond in favor of the City in an amount not less than ten percent (10%) of the submitted Total Bid Price.

Each bid shall be accompanied by the security referred to in the Contract Documents, the non-collusion affidavit, the list of proposed subcontractors, and all additional documentation required by the Instructions to Bidd ers.

The successful bidder will be required to furnish the City with a Performance Bond equal to 100% of the successful bid, and a Payment (Labor and Materials) Bond equal to 100% of the successful bid, prior to execution of the Contract. All bonds are to be secured from a surety that meets all of the State of California bonding requirements, as defined in Code of Civil Procedure Section 995.120, and is admitted by the State of California.

Each bidder shall be a licensed contractor pursuant to the Bu siness and Professions Code and shall be licensed in the following appropriate classification(s) of contractor’s license(s), for the work bid upon, and must maintain the license(s) throughout the duration of the Contract:

• Class “A” and/or Class “B”

FOR FURTHER INFORMATION CONTACT:

Public Works Department
Tel: (951) 769-8522
E-mail: [email protected]

386
Item 17.

City of Beaumont
Request for bid
Westside Fire Station
CIP 2017-028

INSTRUCTIONS TO BIDDERS
3 INSTRUCTIONS TO BIDDERS

AVAILABILITY OF CONTRACT DOCUMENTS:

Bids must be submitted to the City on the Bid Forms which are a part of the Bid Package for the Project. Prospective bidders may obtain one (1) complete set of Contract Documents at no cost. Contract Documents may be obtained from the City at the location(s) and at the time(s) indicated in the Notice Inviting Bids. Prospective bidders are encouraged to telephone in advance to determine the availability of Contract Documents. Any applicable charges for the Contract Documents are outlined in the Notice Inviting Bids. The City may also make the Contract Documents available for review at one or more plan rooms, as indicated in the Notice Inviting Bids. Please Note: Prospective bidders who choose to review the Contract Documents at a plan room must contact the City to obtain the required Contract Documents if they decide to submit a bid for the Project.

EXAMINATION OF CONTRACT DOCUMENTS:

The City has made copies of the Contract Documents available, as indicated above.

Bidders shall be solely responsible for examining the Project Site and the Contract Documents, including any Addenda issued during the bidding period, and for informing itself with respect to local labor availability, means of transportation, necessity for security, laws and codes, local permit requirements, wage scales, local tax structure, contractors’ licensing requirements, availability of required insurance, and other factors that could affect the Work. Bidders are responsible for consulting the standards referenced in the Contract. Failure of Bidder to so examine and inform itself shall be at its sole risk, and no relief for error or omission will be given except as required under State law.

INTERPRETATION OF CONTRACT DOCUMENTS
Discrepancies in, and/or omissions from the Plans, Specifications or other Contract Documents or questions as to their meaning shall be immediately brought to the attention of the City by submission of a written request for an interpretation or correction to the City.

Such submission, if any, must be sent to the Project Manager by faxing (951)769 -8526 or emailing to [email protected]. Any interpretation of the Contract Documents will be made only by written addenda duly issued and mailed or delivered to each person or firm who has purchased a set of Contract Documents. The City will not be responsible for any explanations or interpretations provided in any other manner. No person is authorized to make any oral interpretation of any provision in the Contract Documents to any bidder, and no bidder should rely on any such oral interpretation. Bids shall include complete compensation for all items that are noted in the Contract Documents as the responsibility of the Contractor.

INSPECTION OF SITE:

Each prospective bidder is responsible for fully acquainting itself with the conditions of the Project Site (which may include more than one site), as well as those relating to the 387
Item 17.

City of Beaumont
Request for bid
Westside Fire Station
CIP 2017-028

INSTRUCTIONS TO BIDDERS
4 construction and labor of the Project, to fully understand the facilities, difficulties and restrictions which may impact the cost or effort required to complete the Project.

ADDENDA:

The City reserves the right to revise the Contract Documents prior to the bid opening date.

Revisions, if any, shall be made by written Addenda. All addenda issued by the City shall be included in the bid and made part of the Contract Documents. Pursuant to Public Contract Code Section 4104.5, if the City issues an Addendum which includes material changes to the Project less than 72 hours prior to the deadline for submission of bids, the City will extend the deadline for submission of bids. The City may determine, in its sole discretion, whether an Addendum warrants postponement of the bid submission date.

Each prospective bidder shall provide City a name, address and facsimile number to which Addenda may be sent, as well as a telephone number by which the City can contact the bidder. Copies of Addenda will be furnished by facsimile, first class mail, exp ress mail or other proper means of delivery without charge to all parties who have obtained a copy of the Contract Documents and provided such current information. Please Note:

Bidders are responsible for ensuring that they have received any and all Addenda. To this end, each bidder should contact the Public Works Department to verify that he has received all Addenda issued, if any, prior to the bid opening.

ALTERNATE BIDS
If alternate bid items are called for in the Contract Documents, the lowest bid wil l be determined on the basis of the base bid only. However, the City may choose to award the contract on the basis of the base bid alone or the base bid and any alternate or combination of alternates. The time required for completion of the alternate bid items has been factored into the Contract duration and no additional Contract time will be awarded for any of the alternate bid items. The City may elect to include one or more of the alternate bid items, or to otherwise remove certain work from the Proje ct scope of work, accordingly each Bidder must ensure that each bid item contains a proportionate share of profit, overhead and other costs or expenses which will be incurred by the Bidder.

COMPLETION OF BID FORMS
Bids shall only be prepared using copies of the Bid Forms which are included in the Contract Documents. The use of substitute bid forms other than clear and correct photocopies of those provided by the City will not be permitted. Bids shall be executed by an authorized signatory as described in these Instructions to Bidders. In addition, Bidders shall fill in all blank spaces (including inserting “N/A” where applicable) and initial all interlineations, alterations, or erasures to the Bid Forms. Bidders shall neither delete, modify, nor supplement the printed matter on the Bid Forms nor make substitutions thereon. USE OF BLACK OR BLUE INK, INDELIBLE PENCIL OR A TYPEWRITER IS REQUIRED. Deviations in the bid form may result in the bid being deemed non - responsive.

388
Item 17.

City of Beaumont
Request for bid
Westside Fire Station
CIP 2017-028

INSTRUCTIONS TO BIDDERS
5 MODIFICATIONS OF BIDS:

Each Bidder shall submit its Bid in strict conformity with the requirements of the Contract Documents. Unauthorized additions, modifications, revisions, conditions, limitations, exclusions or provisions attached to a Bid may render it non -responsive and may cause its rejection. Bidders shall neither delete, modify, nor supplement the printed matter on the Bid Forms, nor make substitutions thereon. Oral, telephonic and electronic modifications will not be considered, unless the Notice Inviting Bids authorizes the submission of electronic bids and modifications thereto and such modifications are made in accordance with the Notice Inviting Bids.

DESIGNATION OF SUBCONTRACTORS:

Pursuant to the funding regulation, the Bidders must designate the name and location of each subcontractor who will perform work or render services for in the amount in excess of one-half of 1 percent of the prime contractor’s total bid , as well as the portion of work each such subcontractor will perform on the form provided herein by the City . No additional time will be provided to bidders to submit any of the requested information in the Designation of Subcontractor form.

LICENSING REQUIREMENTS:

Pursuant to Section 7028.15 of the Business and Professions Code and Section 3300 of the Public Contract Code, all bidders must possess proper licenses for performance of this Contract. Subcontractors must possess the appropriate licenses for each special ty subcontracted. Pursuant to Section 7028.5 of the Business and Professions Code, the City shall consider any bid submitted by a contractor not currently licensed in accordance with state law and pursuant to the requirements found in the Contract Document s to be nonresponsive, and the City shall reject the Bid. The City shall have the right to request, and Bidders shall provide within five (5) calendar days, evidence satisfactory to the City of all valid license(s) currently held by that Bidder and each of the Bidder’s subcontractors, before awarding the Contract. Please also note that, pursuant to Public Contract Code Section 20676, sellers of "mined material" must be on an approved list of sellers published pursuant to Public Resources Code Section 2717(b) in order to supply mined material for this Contract.

SIGNING OF BIDS:

All Bids submitted shall be executed by the Bidder or its authorized representative.

Bidders may be asked to provide evidence in the form of an authenticated resolution of its Board of Directors or a Power of Attorney evidencing the capacity of the person signing the Bid to bind the Bidder to each Bid and to any Contract arising therefrom. If a Bidder is a joint venture or partnership, it may be asked to submit an authenticated Pow er of Attorney executed by each joint venturer or partner appointing and designating one of the joint venturers or partners as a management sponsor to execute the Bid on behalf of Bidder. Only that joint venturer or partner shall execute the Bid. The Pow er of Attorney shall also: (1) authorize that particular joint venturer or partner to act for and bind Bidder in all matters relating to the Bid; and (2) provide that each venturer or partner shall be 389
Item 17.

City of Beaumont
Request for bid
Westside Fire Station
CIP 2017-028

INSTRUCTIONS TO BIDDERS
6 under the Bid and under any Contract arising therefrom. The Bid shall be executed by the designated joint venturer or partner on behalf of the joint venture or partnership in its legal name.

BID GUARANTEE (BOND):

Each bid shall be accompanied by: (a) cash; (b) a certified check made payable to the City; (c) a cashier’s check made payable to the City; or (d) a bid bond payable to the City executed by the bidder as principal and surety as obligor in an amount not less than 10% of the maximum amount of the bid. Personal sureties and unregistered surety companies are unacceptable. The surety insurer shall be California adm itted surety insurer, as defined in Code of Civil Procedure Section 995.120. The cash, check or bid bond shall be given as a guarantee that the bidder shall execute the Contract if it be awarded to the bidder, shall provide the payment and performance bonds and insurance certificates and endorsements as required herein within ten (10) calendar days after notification of the award of the Contract to the bidder. Failure to provide the required documents may result in forfeiture of the bidder’s bid deposit or bond to the City and the City may award the Contract to the next lowest responsive, responsible bidder, or may call for new bids.

SUBMISSION OF BIDS:

Once the Bid and supporting documents have been completed and signed as set forth herein, they shall be mailed or hand delivered to the City at the place and to the attention of the person indicated in the Notice Inviting Bids. No oral or telephonic bids will be considered. No forms transmitted via facsimile, or any other electronic means will be considered unless specifically authorized by City as provided herein.

Only where expressly permitted in the Notice Inviting Bids, may Bidders submit their bids via electronic transmission pursuant to Public Contract Code Sections 1600 and 1601.

The acceptable method(s) of electronic transmission shall be stated in the Notice Inviting Bids. City reserves the right to not accept electronically transmitted bids where not specifically authorized in the Notice Inviting Bids, and may reject any bid not strictly complying with City’s designated methods for delivery.

DELIVERY AND OPENING OF BIDS
Bids will be received by the City at the address shown in the Notice Inviting Bids up to the date and time shown therein. It is the Bidder’s sole responsibility to ensure t hat its Bid is received as specified. Bids may be submitted earlier than the dates(s) and time(s) indicated.

Bids will be opened at the date and time stated in the Notice Inviting Bids, and the amount of each Bid will be read aloud and recorded. All Bid ders may, if they desire, attend the opening of Bids at the address specified in the NIB. The City may in its sole discretion, elect to postpone the opening of the submitted Bids. City reserves the right to reject any or all Bids and to waive any informality or irregularity in any Bid. In the event of a discrepancy between the written amount of the Bid Price and the numerical amount of the Bid Price, the written amount shall govern.
390
Item 17.

City of Beaumont
Request for bid
Westside Fire Station
CIP 2017-028

INSTRUCTIONS TO BIDDERS
7 WITHDRAWAL OF BID:

Prior to bid opening, a Bid may be withdrawn by the Bidder only by means of a written request signed by the Bidder or its properly authorized representative.

BASIS OF AWARD; BALANCED BIDS:

The City shall award the Contract to the lowest responsive, responsible Bidder submitting a responsive Bid. The City may reject any Bid which, in its opinion when compared to other bids received or to the City’s internal estimates, does not accurately reflect the cost to perform the Work. The City may reject as non-responsive any bid which unevenly weights or allocates costs, including but not limited to overhead and profit to one or more particular bid items.

DISQUALIFICATION OF BIDDERS; INTEREST IN MORE THAN ONE BID:

No bidder shall be allowed to make, submit or be interested in more than one bid.

However, a person, firm, corporation or other entity that has submitted a subproposal to a bidder, or that has quoted prices of materials to a bidder, is not thereby disqualified from submitting a subproposal or quoting prices to other bidders submitting a bid to the City.

No person, firm, corporation, or other entity may submit subproposal to a bidder, or quote prices of materials to a bidder, when also submitting a prime bid on the same Project.

INSURANCE REQUIREMENTS:

The successful bidder shall procure the insurance in the form and in the amount specified in the Contract Documents.

AWARD PROCESS:

Once all Bids are opened and reviewed to determine the lowest responsive and responsible Bidder, the City Council may award the contract. The apparent successful Bidder should begin to prepare the following documents: (1) the Performance Bond; (2) the Payment (Labor and Materials) Bond; and (3) the required insurance certificates and endorsements. Once the City notifies the Bidder of the award, the Bidder will have ten (10) consecutive calendar days from the date of this notification to execute the Contract and supply the City with all of the required documents and certifications. Regardless whether the Bidder supplies the required documents and certifications in a timely manner, the Contract time will begin to run ten (10) calendar days from the date of the notification.

Once the City receives all of the properly drafted and executed documents and certifications from the Bidder, the City shall issue a Notice to Proceed to that Bidder.

FILING OF BID PROTESTS
Bidders may file a “protest” of a Bid with the City’s City Engineer. In order for a Bidder’s protest to be considered valid, the protest must:
• Be filed in writing within five (5) calendar days after the bid opening date; • Clearly identify the specific irregularity or accusation; • Clearly identify the specific City staff determination or recommendation 391
Item 17.

City of Beaumont
Request for bid
Westside Fire Station
CIP 2017-028

INSTRUCTIONS TO BIDDERS
8 being protested;
• Specify, in detail, the grounds of the protest and the facts supporting the protest; and
• Include all relevant, supporting documentation with the protest at time of filing.

If the protest does not comply with each of these requirements, it will be rejected as invalid. If the protest is valid, the City’s City Engineer, or other designated City staff member, shall review the basis of the protest and all relevant information. The City Engineer will provide a written decision to the protestor. The protestor may then appeal the decision of the City Engineer to the City Manager.

WORKERS COMPENSATION:

Each bidder shall submit the Contractor’s Certificate Regarding Workers’ Compensation form.

SUBSTITUTION OF SECURITY:

The Contract Documents call for monthly progress payments based upon the percentage of the work completed. The City will retain five percent (5%) of each progress payment as provided by the Contract Documents. At the request and expense of the successful Bidder, the City will substitute securities for the amount so retained in accordance with Public Contract Code Section 22300.

PREVAILING WAGES:

Pursuant to Section 1773 of the Labor Code, the general prevailing wage rates, including the per diem wages applicable to the work, and for holiday and overtime work, including employer payments for health and welfare, pension, vacation, and similar purposes, in the County of Riverside in which the work is to be done, have been determined by the Director of the Department of Industrial Relations, State of California. These wages are set forth in the General Prevailing Wage Rates for this project, available from the California Department of Industrial Relations’ Internet web site at www.dir.ca.gov . Future effective prevailing wage rates which have been predetermined, and are on file with the California Department of Industrial Relations, are referenced but not printed in the general prevailing wage rates. Pursuant to SB 854, which amended the Prevailing Wage Laws, this Contract is subject to compliance monitoring and enforcement by the DIR. Beginning March 1, 2015, with very limited exceptions, no contractor or subcontractor may be listed on a bid proposal for this Contract unless registered with the DIR pursuant to Labor Code section 1725.5. Beginning April 1, 2015, no contractor or subcontractor may be awarded this Contract unless registered with the DIR pursuant to Labor Code section 1725.5. The DIR registration number for each contractor and subcontractor must be identified on the bid proposal - failure to identify this number could result in the bid being rejected as non - responsive. It is each bidder’s responsibility to ensure that they have fully complied with SB 854. The City will report all necessary contracts to the DIR as requi red by the Prevailing Wage Laws.

392
Item 17.

City of Beaumont
Request for bid
Westside Fire Station
CIP 2017-028

INSTRUCTIONS TO BIDDERS
9 DEBARMENT OF CONTRACTORS AND SUBCONTRACTORS:

In accordance with the provisions of the Labor Code, contractors or subcontractors may not perform work on a public works project with a subcontractor who is ineligible to perform work on a public project pursuant to Section 1777.1 or Section 1777.7 of the Labor Code. Any contract on a public works project entered into between a contractor and a debarred subcontractor is void as a matter of law. A debarred subcontractor may not receive any public money for performing work as a subcontractor on a public works contract. Any public money that is paid to a debarred subcontractor by the Contractor for the Project shall be returned to the City. The Contractor shall be responsible f or the payment of wages to workers of a debarred subcontractor who has been allowed to work on the Project.

PERFORMANCE AND PAYMENT BOND REQUIREMENTS:

Within the time specified in the Contract Documents, the Bidder to whom a Contract is awarded shall deliver to the City four identical counterparts of the Performance Bond and Payment (Labor and Materials) Bond in the form supplied by the City and included in the Contract Documents. Failure to do so may, in the sole discretion of City, result in the forfeiture of the Bid Guarantee. The surety supplying the bond must be an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, authorized to do business as such in the State of California and satisfactory to the City. The Performance Bond and the Payment (Labor and Materials) Bond shall be for one hundred percent (100%) of the Total Bid Price.

REQUEST FOR SUBSTITUTIONS
The successful bidder shall comply with the substitution request provisions set forth in the Special Conditions, including any deadlines for substitution requests which may occur prior to the bid opening date.

SALES AND OTHER APPLICABLE TAXES, PERMITS, LICENSES AND FEES Contractor and its subcontractors performing work under this Contract will be required to pay California sales tax and other applicable taxes, and to pay for permits, licenses and fees required by the agencies with authority in the jurisdi ction in which the work will be located, unless otherwise expressly provided by the Contract Documents.

EXECUTION OF CONTRACT
As required herein the Bidder to whom an award is made shall execute the Contract in the amount determined by the Contract Documents. The City may require appropriate evidence that the persons executing the Contract are duly empowered to do so.

END OF INSTRUCTIONS TO BIDDERS

393
Item 17.

394
Item 17.

395
Item 17.

396
Item 17.

397
Item 17.

398
Item 17.

399
Item 17.

400
Item 17.

401
Item 17.

402
Item 17.

403
Item 17.

404
Item 17.

405
Item 17.

406
Item 17.

407
Item 17.

408
Item 17.

409
Item 17.

410
Item 17.

411
Item 17.

412
Item 17.

413
Item 17.

414
Item 17.

415
Item 17.

416
Item 17.

417
Item 17.

418
Item 17.

419
Item 17.

420
Item 17.

421
Item 17.

422
Item 17.

423
Item 17.

424
Item 17.

Staff Report

TO: City Council
FROM: Doug Story, Community Services Director
DATE August 2, 2022
SUBJECT: Update on Veterans and First Responders Memorial Plaza Improvement Project

Background and Analysis:

After the success of the inaugural Veterans Day Parade and Ceremony City staff was instructed to re-establish the First Responder and Veterans Memorial Committee to begin discussions on renovating the current plaza area in front of City Hall. The committee consisted of city staff and community stakeholders such as:

Councilmember Mike Lara
Anita W orthen
Jim Lillibridge
Bob Tinker
Michael Granada

The committee began meeting on December 9, 2021. At this time discussions began and direction was given to solicit the services of a landscape architect who could redesign the current layout of memorial plaza and address the needs for ADA accessibility, future expansion, and to provide areas for community members to remember and pay respects to Beaumont residents who had served this country in the armed forces or served this community as a first responder.

On February 10, 2022, a Professional Services Agreement was executed between the City of Beaumont and Architerra Design Group in the amount of $15,825 for conceptual plans of an expanded and remodeled memorial plaza area.

The conceptual plan includes:

o New hardscape areas around plaza to address accessibility and expansion,
425
Item 18.

o Water features,
o New lighting,
o New landscape and turf ,
o New electrical and lighting,
o Relocation of flags,
o Preservation of current memorial monuments,
o Security cameras, and
o Additional seating.

Once design and construction documents are complete, public bids will be released and a contract will be awarded for construction of the memorial plaza.

Fiscal Impact:

The estimated cost to prepare this report is $175. Funding for this project is allocated through the Five-Year Capital Improvement Plan (CIP) Fiscal Year 2023-2027. Project No. P-14 has designated $1,750,000 for design and construction and Project No. P -15 has designated $50,000 for security cameras in the plaza.

Memorial Plaza Improvement Project
Project Components Budget Encumbered Paid to Date
Remaining
Budget
Project Management
Preliminary Services
Environmental
Design $95,000.00 $(15,825.00) $5,367.85 $79,175.00 Construction $1,643,000.00 $1,643,000.00
Construction Management $12,000.00 $12,000.00
Permits
Equipment
Project Accounting Summary
Totals $1,750,000.00 $(15,825.00) $5,367.85

$1,734,175.00

Recommended Action:

Receive and file the concept plans and digital renderings. Make any suggestions or remarks pertaining to the improvement plans of the Veterans and First Responders Memorial Plaza, and
Direct staff to proceed with a Request for Proposal for Professional Services of a Landscape Architect for full design of the plaza to include engineered plans and complete construction documents.
426
Item 18.

Attachments:

A. Concept Plans
B. Digital Renderings
427
Item 18.

428
Item 18.

429Item 18.

430Item 18.

431Item 18.

432Item 18.

Staff Report

TO: City Council
FROM: Jennifer Ustation, Finance Director
DATE August 2, 2022
SUBJECT: Banking Services Contract

Background and Analysis:

The City of Beaumont has used Citibank for its general operating banking services for many years. City staff has been happy with the services but was notified on March 24, 2022, that they would no longer support deposits that require collateral above the FDIC coverage. Government Code section 16521 requires banks to deposit securities as collateral with the State Treasurer valued at 110 percent of the uninsured portion of the collected funds deposited with the banks.

City staff issued a Request for Proposals (RFP) on May 6, 2022, with an original proposal due date of June 1, 2022. Due to a lack of submitted proposals, the RFP proposal due date was extended to July 8, 2022. The objective of the RFP was to ensure fair, competitive procurement of cost-effective banking services that not only maintained the high quality of cash management support to the City but also supported continued technology enhancements that will further improve the payment process for residents and businesses.

The minimum qualifications within the RFP included: being a federally or State of California chartered financial institution, a member of the Federal Reserve System, a qualified depository for public funds, a full service bank in good standing capable of providing services sought by the City, sufficient capitalization to accommodate cash/investment management needs, and having an established office within close proximity to the City and dedicated staff committed to servicing the City’s account.

The City received four (4) responses from interested banking institutions. The proposals received and proposed estimated fees based on activity detail provided, excluding any earnings credits proposed are included below:

433
Item 19.

Bank of America (estimated $8,848.05 monthly fees)
Bank of the West (estimated $9,600.53 monthly fees)
US Bank (estimated $7,777.50 monthly fees)
Wells Fargo (estimated $5,372.59 monthly fees)

Each of the proposals were reviewed and scored by the Finance and Administrative Services Departments and sent to the City Treasurer for review. While all of the banks that responded met the minimum qualifications, the two banks that had the strongest proposals (based on understanding of scope of work, quality of proposal, pricing considerations and perceived quality of service) were invited for interviews.

Upon completion of the interviews, it was determined that Wells Fargo would be the most ideal fit for the City of Beaumont going forward.

Some of the highlights of Wells Fargo’s offerings include:

1. Competitive monthly fees and earnings credit rate,

2. $35,000 transition allowance to be used in first 12 months,

3. Locked pricing for a five-year term with option for two additional two-year extensions, and

4. Personal service with representative located close to city offices.

Fiscal Impact:

This contract provides for services based on volume of transactions processed. Costs incurred are offset by an earnings credit provided by the bank upon the average daily positive collected balance (investable balance). The proposal submitted by the bank estimated that credits on the average bank balance would likely offset most, if not all, of the monthly banking costs. The initial term of the agreement is for five years with a renewal option for two additional two-year extensions.

Recommended Action:

Authorize the Mayor to sign the contract and authorize the City Manager to sign any associated agreements between the City and Wells Fargo to provide continuity of banking services needed to ensure timely processing of financial activities.
434
Item 19.

Attachments:

A. Request for Proposals
B. Well Fargo Response to RFP
C. Wells Fargo Acceptance of Services
D. Wells Fargo Amendment to Master Agreement Pricing
E. Wells Fargo Authorization Certificate
F. Wells Fargo Certification of Official Custodian
G. Wells Fargo Presentation
435
Item 19.

CITY OF BEAUMONT

REQUEST FOR PROPOSALS

BANKING &

MERCHANT SERVICES
PROPOSAL DUE DATE:

June 1, 2022 before 4:00 PM
436
Item 19.

2 REQUEST FOR PROPOSAL (RFP)
FOR: BANKING SERVICES

TIMETABLE
Issue RFP May 6, 2022
Written Questions Due May 20, 2022 by 4:00 PM
Responses to Questions May 25, 2022
Proposals Due June 1, 2022
Possible Interviews June 8, 2022
Bid Reviews (Trustee Finance Sub-Committee
Meeting) June 13, 2022
Award bid-Selection (City Council Meeting) June 21, 2022 Implementation/Go-live TBD
CONTACT PERSON: Jennifer Ustation, Director of Finance [email protected]
City of Beaumont
Finance Department
550 E. 6th Street
Beaumont, CA 92223
437
Item 19.

3 NOTICE FOR PROPOSALS
The City of Beaumont is requesting proposals for banking services from all financial institutions with full-service branches located within the corporate limits of Riverside County, with a preference inside the City of Beaumont limits.

One (1 ) original proposal and five (5) copies on the thumb drive shall be delivered to the City of Beaumont Finance Department at the above indicated address and by electronic submission via email to [email protected] , with a “subject” title - “City of Beaumont Banking & Merchant Services RFP” on or before 4:00 PM, Monday, May 20, 2022. It is the respondent’s responsibility to ensure that proposals are received prior to the 4:00 PM proposal closing time as late proposals will not be accepted. The City of Beaumont reserves the right to award or reject proposals in part or in whole and on any basis, it deems in the best interests of the City.

BACKGROUND

The City of Beaumont is a general law city incorporated in 1912 currently serving a population of approximately 55,000, located in Western Riverside County. The City operates under a council- manager format of government which consists of a Mayor, Mayor Pro-Tem, three Councilmembers and the City Manager. The positions of Mayor and Mayor Pro-Tem are rotated among the elected Councilmembers. City Clerk and Treasurer are elected positions, each for a four-year term.

In addition to its function as the governing body of the City, the City Council acts as the governing body for other separate entities: Beaumont Financing Authority, Beaumont Public Improvement Authority, Beaumont Transit System, Beaumont Wastewater Systems, and the Beaumont Utility Authority. The City’s management also has custodial, accounting and financial reporting responsibility for the Successor Agency to the City of Beaumont Redevelopment Agency. There is no requirement for separate financial reporting for these separate entities with one exception (Beaumont Transit System).

Official accounting records are on-site in the Finance Department, while some supporting information may be located in other departments within the City. Beaumont uses the Tyler Incode 10 accounting software. Payroll is processed through Incode 10 as well.

CURRENT BANKING SERVICES
The City of Beaumont currently maintains a primary commercial banking and merchant services relationship with Citibank. The City has determined that a review of the services offered by qualifying institutions is appropriate at this time. It is the City’s preference to maintain commercial banking services for its operating account to maximize cash flow, maintain efficiency and minimize administrative costs. The City of Beaumont seeks proposals from financial institutions interested in providing banking and services for the City. We encourage financial institutions to submit comprehensive proposals which offer the highest quality of service while providing opportunities for improving the current management of cash flow. The City is looking for improved integration with its systems; a clear and fair charging structure; a full-service and easy -to-use configurable online portal; ease of access to banking data and transactions; and high levels of customer service with single points of contact. The City is also interested in any technological advances and pilots that could improve the overall banking experience. 438
Item 19.

4 In 2022, the average monthly balance in the operating account was approximately $17 million.

The most current client account analysis statements and bank statements can be obtained from Finance via email ([email protected]) illustrating the volume of the transactions for all the City’s operating accounts.

The City also maintains two (2) merchant IDs that process credit card transactions through an “Online Point of Sale Terminal”. One of the merchant IDs is used for utility related credit card transactions while the other merchant ID is used for non-utility related credit card transactions.

This RFP does not cover institutional custody services or corporate trust services.

The City will attempt to administer the proposal process in accordance with the terms and dates outlined in this RFP, however, the City reserves the right to modify the activities, timeline, or any other aspect of the process at any time, as deemed necessary. By requesting proposals, the City is in no way obligated to award a contract or pay the expenses of proposing banks in connection with the preparation or submission of a proposal. The award of any contract shall be contingent on the requisite staff and City Council approvals. Determination of best value to the City shall be based upon, but not limited to, the following considerations: cost; the ability, capacity, and skill of the proposer to provide the services; the ability of the provider to deliver timely services; the character, integrity, reputation, judgment, experience, social responsibility, and efficiency of the provider; and the quality of the provider’s performance on previous contracts with the City. No single factor will determine the final award d ecision. It is recommended that all proposers provide fully comprehensive proposals since all aspects will be considered in the determination for the award.

All costs directly or indirectly related to the presentation of a response to the Request for Proposal (RFP), any oral presentations required to supplement and/or clarify a proposal, and/or reasonable demonstrations which may, at the discretion of the City, be required of the proposer shall be the proposer’s sole responsibility.

PRE-SUBMITTAL QUESTIONS
The City will accept pre-submittal questions from RFP participants in the interest of clarity and complete responses to the RFP. The RFP participants are encouraged to cover all questions in one request so that City staff can provide timely and effective responses.

All pre-submittal questions will only be accepted via email or until May 20, 2022. Responses to all questions will be emailed to all RFP participants. RFP questions are to be submitted to Jennifer Ustation at [email protected]. In order to assure that the City has one contact person per bank, please provide this contact information when submitting the proposal. The City will conclude the banks that do not provide contact information do not want to be included in the Pre-Submittal information sharing.
439
Item 19.

5 I. PROPOSAL CONTENT
All proposals submitted must include the Proposal Submission Package provided in Section VII of this RFP. Other information concerning the qualifications of the bank may also be included with the proposal (as determined solely by the bank), such as:

The bank's philosophy regarding its relationship with the client.  Experience of the bank in providing services to major commercial or governmental accounts.  A maximum of three references that have a current banking relationship with the bank.

Governmental agency references are required. Please list contact person, phone number, email, and years of banking service.
 Identification of staff capabilities, along with resumes of key personnel who will be working with the City of Beaumont at the corporate and branch level.  Samples of reports to be provided to the City. (Monthly Statements, Analysis Reports, etc.)
 Other information the bank believes to be appropriate.

Any supplemental information provide d will be reviewed and considered during the selection process. The City will not consider proposals for partial services. The required documents are the Proposal Submission Package, which will include the last three years Financial Statements.

II. PROPOSAL TERMS AND CONDITIONS

1. Each proposal must meet all the specifications discussed in this RFP. All information provided to the City in response to the RFP will become public information. If a proposal is submitted, it is assumed that the proposal meets or exceeds the requirements as stated.

If a required service cannot be met by the bank, then the phrase "NO PROPOSAL" should be entered on the proposal form for that service. In the case of a "NO PROPOSAL" Statement, the bank may offer an alternative service, which must be described in detail on a supplemental attachment. Any non -substantial deviations may be considered by the City, provided the bank submits a full description and justification for the proposed deviation(s). The final determination regarding any proposed deviation or alternative will be made by the City.

2. All questions or requests for information submitted via pre-submittal process email will receive an email response from the City, which will be shared with all other banks providing email contacts. However, it is an explicit provision of this RFP that any communication is not binding on the City's proposal process or selection of the successful bank.

3. Proposers must be a federally or State of California chartered institution during the term of the contract.

4. Proposers must maintain a full-service branch within the corporate limits of the County of Riverside during the term of the contract.
440
Item 19.

6 5. The “Monthly Activity Detail” (page A-2) is to be used as a basis for responding to bank service fees. The “Monthly Activity Detail” is a summary of a sample month of all transactions on all City accounts included in this RFP. It is believed to be a reliable estimate of the volume of the City's banking activities; however, the actual number of transactions may vary, and no guarantees are provided by the City regarding minimum or maximum volumes. All applicable, one-time set up or service charges related to any of the services covered in a bank’s proposal must be individually disclosed in the proposal, with a cost on each one- time service/fee (or a no charge reference), as well as a description of the service(s).

This information should be considered an addendum to the standard bank service fees that should be submitted based on the “Monthly Activity Detail” of standard services and fees. If an addendum on one-time services/fees is not included in the proposal, the City will consider the proposal complete, with all applicable onetime or any other services being no charge to the City.

6. Each bank submitting a proposal will include one (1) set of their annual audited financial reports for the past three (3) years.

7. Any RFP submitted to the City becomes the property of the City. The City reserves the right to waive non-substantial irregularities in any proposal, to reject any or all proposals, and to reject one part of a proposal and accept the other, except to the extent that proposals are qualified by specific limitations by the bank.

8. The Proposal Submission Package must be completed in its entirety. The extensions of unit price figures for the estimated quantities as well as lump-sum prices must be disclosed on the Bank Service Fee Sc hedules, with standard monthly fees based on volumes listed in the “Monthly Activity Detail,” with one-time or other service fees listed on an addendum to that report. If the unit price and total amount quoted by any bank for any item are not in agreement, the unit price alone will be considered as representing the bank's intention, and the total will be corrected to conform to the specified unit price. Proposal Submission Package unit price amounts for all required services must be included in the Package, as well as any one-time service fees. Unit prices must also be included for proposed optional and/or additional services included in the Proposal Submission Package.

9. Banks may withdraw their proposals, without prejudice, prior to the date and time specified for proposal submission, by sending a written request or email to Jennifer Ustation, Director of Finance. No proposal received after the closing date or at any location other than the location stated in the RFP will be considered.

10. After notice of the award has been sent by mail to the address provided in the bank's proposal, the bank to whom an award is made will execute a written contract with the City no later than July 5, 2022.

11. If the bank to whom the award is made fails to enter into the contract, the award will be annulled and an award will be made to the next best proposer as determined by the City; and that bank will fulfill every stipulation as if it were the party to whom the first award was made. 441
Item 19.

7 12. The successful bank will not assign, transfer, convey, or otherwise dispose of the contract, or right, title of interest, or power to execute such a contract to any person, any other bank, firm, or corporation without previous consent in writing by the City Council of the City of Beaumont.

13. In the performance of the terms of this RFP, the bank agrees that it will not engage in, nor permit agents or employees of the bank, or such subcontractors as the bank may employ, to engage in unlawful discrimination in the employment of persons because of race, age, color, ancestry, national origin, religious creed, political opinion or affiliations, sex, marital status, disabilities, or applicable state or federal employment laws.

14. The contract will provide that the City reserves the right to terminate the contract at any time upon sixty (60) days prior written notice of the City's intent to terminate the contract.

15. The bank will immediately notify the City should the bank fail to meet the collateral requirements set forth in the State Banking Financial Code Section 53630 through 53684.

16. Causes for termination of the contract may include any one of the following: failure to promptly and faithfully provide the services required in this RFP; violation of any law governing any municipal depository; failure to cooperate upon receiving any reasonable request for information or service; and improper actions of the institution's officers or employees which, in the opinion of the City, would adversely affect the City's interest or endanger the safety or liquidity of municipal funds.

III. SCOPE OF SERVICES
The following section details the services to be provided to the City. Ex cept for non- substantial deviations or acceptable alternatives, all services listed in this section are mandatory. The City will not consider proposals for partial services.

The following required services include:

1. The bank must be a member of the Federal Reserve System. The bank must be a Federal or State of California chartered commercial banking institution with at least one full-service branch located within County of Riverside limits.

2. The bank must be a qualified depository for public funds pursuant to the applicable federal and state laws and regulations, statutes and policies. All balances must be fully collateralized through the pool collateral system required under the State of California.

3. The bank must fulfill orders for currency and coin through the City’s courier upon request.

4. The bank will engage a team or specific relationship coordinators for the life of the contract.

5. The bank will provide full account reconciliation, positive pay, electronic fraud protection, electronic deposits and disbursement, online wire entry, and online stop-payment placement.
442
Item 19.

8 6. Online reporting includes prior day transactions (no later than 8:00 a.m. Pacific Standard Time the next day) and current day transactions.

7. Compensating balances and sweep accounts are preferred.

8. Provide key measures of the bank’s financial strength, including ratings from nationally recognized rating service(s) and banking rating service(s). Include one copy of the bank’s most recent audited financial statements and one copy of the bank’s rating from a nationally recognized rating service.

9. Provide the financial institution’s current level of public funds deposited and related collateral market value.

10. The ability to accept multiple file submissions from our payment processing financial system.

11. Provide the City with a check scanner for deposit of checks directly from City Hall as well as a “smart-safe” for deposit of cash.

12. Image of deposited items and provide online access for deposit reconciliation including images of deposited items.

13. Provide online and email notification of deposit issues within 24 hours.

14. Possible off -site credit card payments on City -issued mobile devices.

15. Provide positive pay service s with online transmission of check details.

16. Provide positive pay exception item review and correction online.

17. Provide online stop -payment services.

18. Provide all canceled checks daily (by 8 a.m. next day) and monthly, sorted in check number order. Provide an electronic file of paid/cleared check images (front and back), in addition to any alternative electronic archival system used by the bank.

19. Provide online access to cashed check images.

20. Method of reversal of automatic direct d eposits for errors.

21. Accept and send ACH transactions.

22. Accept ACH payment files from 3rd parties.

23. Provide ACH debit blocking services.

24. Provide a secure electronic method to initiate intra -bank transfers.

25. Provide a secure electronic method with dual authorization for wiring funds.

26. Provide online balance reporting services
443
Item 19.

9 27. Allow approximately 5 City employees with different levels of authorization to access the bank’s online reporting system.

28. Provide account reconciliation services for disbursements (full, partial or positive pay, depending on account).

29. Provide monthly activity statements and reports by the 10th day of the following month or sooner.

30. Provide a detailed monthly account analysis statement for each individual account and a consolidated statement showing charges for all account services.

31. Collateralize all collected balances, in excess of balances insured by the FDIC as required by applicable Federal/California Government Codes.

32. The city requires a daily deposit pick-up from City Hall with additional pick-up available upon request via an armored car service provider.

I V . INFORMATION REQUESTED
A. QUALIFICATIONS AND EXPERIENCE

1. Provide a general overview and brief history of your organization, including parent and/or subsidiary companies and the number of employees.

2. Provide the address of the office location(s) that will service the account.

3. Describe the experience of the financial institu tion in providing similar services for other cities and institutions.

4. Complete the following table with current credit ratings by Standard & Poor's Rating Services and Moody's Investor Services. If the proposer is not rated by these rating organizations, p rovide other evidence of the institution's financial strength .

Financial Institution
Standard & Poor's Rating Moody's Investor Services
Short-term Unsecured
Senior Debt

Long-term Unsecured
Senior Debt

Financial Institution Holding Company

Standard & Poor's Rating Moody's Investor Services
Short-term Unsecured
Senior Debt

Long-term Unsecured
Senior Debt

444
Item 19.

10 5. Discuss the firm's current capital structure, adequacy, and coverage. If applicable, provide the firm's risk-based capital classification (Well Capitalized, Adequately Capitalized, Under Capitalized, Significantly Undercapitalized).

6. Include an electronic copy of the most recent audited financial statement and the latest 10-k report with the proposal.

7. Provide the bank’s Community Reinvestment Act (CRA) rating.

8. Be sufficiently capitalized to accommodate the City’s cash management needs and ensure collateralization of funds.

B. PERSONNEL

1. Provide the name, title, address, phone number, fax number and email address of the primary contact person(s) assigned to this account.

2. Describe your firm’s policy on changing the primary contact person on an account.

3. Name the individuals who will work with the City on a day-to-day basis. Information should include:
a. Experience working with other City and or government institutions. b. Proposed role with regard to the City’s account.
c. Number of years of experience in this field
d. Number of years with your firm
e. Describe the level of local decision-making authority these individuals have to handle emergency need of the City as they arise.

4. Will a specific customer service representative or a customer service department be assigned to handle day-to-day transactions for the City? a. Describe the responsibilities of the customer service personnel, including the chain of command for problem resolutions. b. Is local customer service support available at the bank's local branches?
c. What are the hours of operation of each customer service unit involved in supporting the proposed services?
d. If an error is discovered by the City, how would you propose to resolve it (i.e. who should the City contact first, etc.)?

5. IT Resources: Will the bank provide dedicated IT liaison(s) to work on set-up, file transfer, testing and troubleshooting/issue resolution? During what hours is technical support available?

C. GENERAL BANKING SERVICES

1. Deposit Processing
a. Please provide a listing of bank branches, noting the address and distance of the branch closest to the City.
b. For deposits collected and transported by the City, which branch location do you propose the City use to deposit funds?
c. Please describe the bank’s deposit requirements. How should the coin and currency deposits be prepared? How should un-encoded check deposits be prepared?
d. What is the ledger cutoff time for deposits?
e. How are deposits created? Are all items immediately verified? If provisional credit is given, when does verification take place? If the financial institution corrects a deposit, how with the City be informed of this change?

445
Item 19.

11 2. Remote Deposit Capture
a. Describe the financial institution’s ability to process checks by RDC. b. Is there a limit on the number of checks that can be contained in a single deposit?
c. Does your service allow for multiple deposits in a single day? d. How will we be notified of deposit corrections and/or adjustments? e. Describe the process used for balancing and correcting deposits transmitted to your institution.
f. Does your service offer the ability to adjust data using recognition technology that was not captured correctly by the scanner? If yes, please describe. If not, does the service allow the addition, deletion, and rescannin g of checks during both the correction and balancing functions?
g. What equipment does the financial institution recommend for RDC and what is the price for this equipment?
h. Can checks be automatically endorsed with the financial institution's RDC service? Is the automatic endorsement an electronic image or printed on the check?
i. Are checks cleared as ACHs or image replacement documents? How does the financial institution's software determine the clearing mechanism?
j. Is there a difference in legal standing for items clearing by ACH or image replacement documents (IRDs)? If so, please describe.

3. Coin/Currency Ordering Services
a. Does the financial institution have an automated coin/currency ordering service? Describe the deposit and change order procedures, cutoff times, security and other features of this system.
b. Describe change order procedures and restrictions for branch pick up.

4. Returned Item Processing
a. Can returned items be automatically re-deposited? If so, how many times? b. Does the financial institution offer any options that may increase the collection of NSF checks?
c. Can the financial institution provide online access to electronic images (back and front) of returned items? How soon after an item is returned can these images be accessed?
d. Can the financial ins titution provide a summary report of returned items identifying the payer's name, depositing location, deposit date, and the type of item being returned?

5. Positive Pay
a. Does the financial institution offer Positive Pay and Payee Positive Pay? b. How would the City transmit check issuance information to the financial institution?
c. What is the deadline for the transmission of check issuance files to the financial institution?
d. How frequently can transmission files be uploaded to the financial institution for the issuance of additional check, and/or recently voided items? Is there a limit to the number of files per day?

446
Item 19.

12 e. Does the financial institution offer the ability to manually enter one-time check disbursements issued during the day? Please describe
f. What controls are in place to protect against lost files and duplications of transmissions? If duplicates are sent, is there a penalty or potential issues? g. How will the City be notified of exception items? What time will the City receive the information on exception it ems? What time does the City have to notify if an exception should be accepted or rejected? Does the financial institution offer a "do not pay" default for exception items?
h. Will stale date checks be reported as exception items? i. Is Positive Pay required for all demand deposit accounts, even on accounts with no check writing functionality? Can accounts be designated as "post no checks" to prevent potential fraud? Is there a cost to make this account designation?
j. Is Teller Positive Pay available? How frequently is check issuance information updated and available to tellers?
k. Are there any other fraud protection services that the financial institution provides and/or recommends?

6. Stop Payments
a. How are stop payment orders placed? Can stop payments be placed online? b. Are stop payment requests effective immediately? If not, how long does it take for a stop payment request to be effective?
c. Will the system verify if a check has been paid before processing the stop payment request?
d. What term options are available for stop payments?
e. Can Stop payments be automatically renewed? If so, for how long? What is the associated fee for each renewal?

7. ACH Processing
a. What ACH file transmission options are available?
b. What are the transmission deadlines for ACH files? When does t he financial institution need the file from the City and when are the funds debited from the City’s accounts?
c. How are returned and rejected ACH transactions handled? What information does the financial institution provide to assist in identifying returned and rejected ACH transmissions? When is this information available?
d. Describe the financial institution's procedures for handling debits to the City's accounts that were not authorized by t he City. Does the financial institution notify the City of the receipt of an unauthorized ACH debit? e. If the financial institution provides ACH debit blocking, what level of filtering can be applied?
f. Does the financial institution offer ACH Positive Pay (ab ility to make pay/no pay decisions on unidentified ACH transactions)? g. Does the financial institution offer Universal Payment Identification Codes (ability to mask visible account numbers to reduce the risk of unauthorized direct debits)?

447
Item 19.

13 8. Wire Processing
a. Describe the process of initiating wire transfers including USD domestic wires, repetitive wires, USD international wires, and foreign currency international wires.
b. During what hours is the wire transfer system available? c. If wire transfers can be initiated online, describe the system’s security features. Can varying degrees of authorization be set (i.e. multiple authorizers, maximum dollar amounts, etc.)?
d. Does the financial institution offer dual control release options (secondary approval levels) for electronically initiated transfers? If so, describe. e. What is the cutoff time for same-day wire transfers? f. What is the financial institution's maximum retention period for future dated transactions? For future dated transactions, at what time are warehoused wire transfers automatically released on the transaction date? What types of wire transfers can be warehoused? Are there warehousing charges?
g. Describe the financial institution's procedure for providing payment confirmation information (e.g., reference numbers) upon acceptance and execution of the wire transfer request, including the availability and method of delivery of internal confirmation/sequence number and clea ring system reference number.
h. Describe the financial institution’s policy for handling a failed wire transfer.

How and when would the City be notified?

9. Bank Compensation
a. Can the City compensate the bank for services with fees, balances, or a combination of the two at its own election? Please describe any differences in related costs to the City with either option.
b. Can the City choose between paying for analysis deficiencies by check, auto debit, or ACH credit?
c. What is the bank’s Earning Credt Rate (ECR) based on, and how is it calculated each month?
d. List the bank’s average ECR for each the last six months (October 2021 thru March 2022).

10. Utility Billing services
The city currently utilizes lockbox service for utility bill payment processing. Utility bills are printed and mailed bimonthly and average 17,000. Lockbox transactions processed average 1,900 per month.
a. Does the bank have the capability to provide lockbox and electronic lockbox payment processing service? If so, please describe the service and any costs associated.

11. State Activity/LAIF Transfers
The city transacts State of California Local Agency Investment Fund (LAIF) transfers on a regular basis and receives State electronic payments. a. Please describe the LAIF transfer process. Are the transfers done by telephone, email, fax, wire transfer, etc.? How is the accuracy of transfers assured?
b. What is the charge per transfer to LAIF? From LAIF?
448
Item 19.

14 c. Does the bank have an office in Sacramento that maintains a direct DDA banking relationship with the State Treasurer’s office and the State Controller’s office?
d. Is the bank an approved State of California depository? e. What is the charge for the deposit of State electronic payments? State warrant?
f. What is the bank’s position on past issuance of IOU’s by State of CA? Does the bank accept IOU’s for deposits?

12. Overdrafts
a. What are the fees and interest charges associated with overdrafts? How are these charges calculated?
b. Is there a fee per check or per occurrence when there is an overdraft? c. Is there a daily cap on fees?

13. Describe the financial institution security procedures for its information reporting system, both for access and information protection.

14. Is system administration performed by the financial institution or the customer? What functions does the security administrator perform?

15. Is an audit trail report available, showing all activity, by whom and when, for each system?

16. Describe the types of insurance and bonding carried.

17. Include a copy of the financial institution’s most recent reports issued in accordance with the Statement on Standards for Attestation Engagements (SSAE 16) for any processes or systems relevant to the services under this RFP.

18. If not already covered in the SSAE 16 report, describe the disaster recover plans for each proposed service for short- and long-term disaster and power failure recovery.

19. Describe any additional security measures available to the City to minimize the risk of unauthorized transactions in its accounts.

D. IMPLEMENTATION/CONVERSION

1. Provide a conversion plan for transitioning each of the proposed services to your financial institution.

3. Indicate the financial institution’s plans for initial and ongoing educating and training City employees in the use of your systems?

4. Will the City be allotted a fixed number of hours and training?

E. NEW SER VICES AND IDEAS

1. Describe any new services or ideas that will enhance the City’s utilization of financial institution services described.

2. Please provide any additional information that your financial institution believes to be pertinent, but not specifical ly requested elsewhere in the RFP.

F. REFERENCES

1. Provide at least three references (government entities, if possible), including client name, contact person, address, phone number, services provided, and the length of time your financial institution has worked for the entity. 449
Item 19.

15 2. How many governmental client s has the proposed relationship manager gained and lost in the last five years?

G. SAMPLE CONTRACT

1. Provide a sample of the proposed contract for your financial institution’s services. Please also provide samples of all other documents which will need to be signed/entered into relat ed to the provision of the services requested in this RFP, including any documents referenced or incorporated into the contracts/agreements.

2. It is the intention to incorporate t he RFP and your financial institution’s proposal response as part of the overall contract. Is this acceptable? If not, why?

H. PRICING AND ACCOUNT ANALYSIS

1. For how long is the financial institution willing to guarantee the proposed fees?

2. Can fees be debited direct from the City’s account rather than billed to the City?

3. Provide a complete fee schedule for all the services described in your financial institution’s proposal using Association of Finance Professionals (AFP) Service Codes, is possible.

Fees related to all services described in the proposal must be listed, even if the service is not shown on the schedule. Also, include any one -time or set - up charges, research fees, minimum fees and all other fees that will be charged. Include any incentiv es or price breaks offered bason on volume, timeliness of payment, rebates or other measures.

4. Are you willing to offer any transition or retention incentives?

5. Are there any additional price breaks or incentives?

ADDITIONAL SERVICES
The bank may desire to offer the City additional services not otherwise specified in this RFP. In this event, a supplemental attachment should be prepared and included with the proposal describing the additional services offered in detail and indicating the cost, if any, for these services.

V. PRICING OF BANKING SERVICES

OVERVIEW
The City requires banks to offer the following options for payment of service charges:

Direct Payment of Service Charges (Option 1) - Under this approach, no compensating balance will be maintained by the City. The City will pay for actual charges for services provided on all City accounts. If the City elects this option, payment will be made by bank debit against the City's general checking account.

The bank will link all City accounts for analysis and provide individual as well as a summary report on the charges and fees on a monthly basis. The bank will provide information identifying the volume of service transactions, unit prices and total 450
Item 19.

16 amounts owed, and an account analysis which will be submitted to the City within fifteen (15) working days of the end of the month. The City will receive an earnings allowance that will be used to reduce the monthly service charges.

Variable Compensating Balance Method (Option 2) - Under this approach, the compensating balance required to be maintained by the City will vary monthly based on the City's transaction volumes for the previous month and the bank's unit prices for services, reserve requirement and earnings allowance. The earnings allowance rate to be utilized is the three-month U.S. Treasury Bill average weekly auction results (coupon equivalent yield) for the previous month. Written notification to the Director of Finance will be required to adjust the compensating balance amount.

The City reserves the right to select either of the two options or a combination of both options as the method of payment for banking services. The City also reserves the right to change from one option to another.

ALTERNATIVE METHOD
Banks may desire to propose an alternative to the two options described above. In this event, a supplemental attachment should be prepared and included with the proposal describing in detail the alternative method along with computation detail.

VI. PROPO SAL EVALUATION AND SELECTION

OVERVIEW
Proposals will be evaluated by the City's Finance Committee, with a recommendation to be made to the City Council for consideration. The selection of the successful bank will be made by the City Council and subsequent award of contract will be based on a combination of the following criteria:
 Bank stability measures
 Banking philosophy
 Understanding scope of work
 Quality and responsiveness of the proposal
 Ability to meet service requirements including state-of-the-art electronic banking services that the City may require
 Related experience of the bank and references (Maximum of five references with governmental references required)
 Information on the Bank’s “Business Continuity” plans  Information on the Bank’s “Community Involvement”
 Anticipated compensating balance requirements or direct charges for required services
 Availability and price of required and additional services 451
Item 19.

17 INTERVIEWS AND AWARD OF CONTRACT
Based on an evaluation of the proposals received using the above criteria, it is anticipated that the top candidates will be scheduled for interviews with the Finance Committee on June 8, 2022. The Finance Committee's final recommendation will then be submitted to the City Council on June 21, 2022 for approval and award of contract.

Following is the proposed timetable for the evaluation and selection process. In order to provide enough time to review and sign contracts, the effective date of the agreement will be within four weeks from the date of the approval by City Council.

TIMETABLE FOR PROPOSAL EVALUATION AND SELECTION
Issue RFP 05/6/2022
Written Questions Due 05/20/2022
Responses to Questions 05/25/2022
Proposals Due 06/1/2022
Possible Interviews 06/8/2022
Bid Reviews (Trustee Finance Sub -Committee
Meeting)
06/13/2022
Award bid -Selection (City Council Meeting ) 06/21/2022 Implementation/Go -live TBD
VII. BANKING SERVICES ADVERTISEMENT
The City of Beaumont is requesting proposals for banking services from all financial institutions with full-service branches located in Riverside County. Additional information may be obtained by contacting:

Jennifer Ustation, Director of Finance
Finance Department
City of Beaumont
Telephone (951) 572-3236
[email protected]
VIII. PROPOSAL SUBMISSION PACKAGE

OVERVIEW
The Proposal Submission Package should be indexed with page numbers and contain the following documents:
 Banking Services Proposal Cover Sheet
 Required Services/Pricing of Banking Services (including any addendums)  Additional Services  References
 Bank “Business Continuity” Plan
 Annual Financial Statements (Last Three Years Audited Reports)

452
Item 19.

18  Rating agency rating report (Veribanc, Highline, etc.) at the expense of the submitting bank. The report is to be sent directly from the rating agency to the City of Beaumont to be received no later than 4:00 p.m. on June 1, 2022. (If mailed, the report is to be addressed to the same address as the proposal). The City will accept Bank Rating Research Reports if sent via email directly from the rating agency. Report sent via email should be sent to Jennifer Ustation, Director of Finance at [email protected] and must be received prior to the closing deadline.

To be a complete proposal, all the above documents must be submitted via email to the City of Beaumont, with a “subject” title “City of Beaumont Banking & Merchant Services RFP” by 4 p.m. on June 1, 2022 closing date.

In addition, the following attachments may be required as part of the original document package:
 If the bank is proposing alternatives or non-substantial deviations to the Required Services, a full description and justification for the proposed alternative or deviation must be included with the proposal.
 If the bank is proposing to provide Additional Services, a full description of the service must be included with the proposal along with the cost detail.

Transaction indicators and estimated quantities have been provided with the standard “Monthly Activity Detail” list. It is assumed that the itemization of costs provided in this submittal will fully compensate the bank for all required services. In the event that additional itemization of transactions is required by the bank in order to be fully compensated for required services, an addendum should be completed in full by the bank. If estimated transaction volumes are required to complete the submittal form for additional items, the City should be contacted by email during the pre-submittal process for this information. The City's response to any question(s) will be distributed to all firms via email.
453
Item 19.

A-1

CITY OF BEAUMONT

BANKING SERVICES PROPOSAL

SUBMITTAL COVER SHEET
BANK NAME:

LOCAL BRANCH ADDRESS:

CONTACT PERSON:

PHONE NUMBER:

EMAIL ADDRESS:

CORRESPONDING BANK:
(If Applicable)

CORRESPONDING BANK

CONTACT PERSON /
PHONE NUMBER:

The proposed term of agreement for the services and costs quoted in this submittal is for a period of five (5) years, with the ability to extend for two (2) additional two-year periods. The undersigned hereby certifies that this proposal meets or exceeds all of the requirements as specified in the City's Request for Proposal (including the Notice Requesting Proposal, Proposal Terms and Conditions, Scope of Services, Pricing of Banking Services, and Proposal Submission Package Sections) except as otherwise indicated and supported by supplemental schedules or attachments included with this proposal.

Signed by Bank Signatory:

Bank Signatory (Print Name):

Bank Signatory Title:

Date:

Address:

Phone Number:

Email Address:
454
Item 19.

A-2
BANKING SERVICES PROPOSAL – REQUIRED SERVICES
Estimated Monthly Activity Detail
Unit Activity Unit
Service Description Volume Price Total
General Account Services:

Account Maintenance 1
Checks Returned with Statements 7
Depository Services
Deposits 350
Checks Paid 40
Deposited Items - On Us 60
Deposited Items – Local Clearing 90
Deposited Items – Other 100
Currency Deposited $5,000,000
Returned Item Debit 10
ACH Returned Item Debit 5
Returned Item Reclear Fee 0
Returned Item Special Handling 0
Controlled Disbursement Services
Checks Paid (on Accounts Payable) 40
Positive Pay Package 1
Cash Reporter/Information Reporting 1
ACH Services
File Input 0
Credit - Incoming 10
Debit – Incoming 25
Notification of Change 1
Wire Transfer Services
Incoming Domestic Wire 2
Outgoing Domestic Wire 2
Non-PC Repetitive Outgoing Domestic Wire 0
Wire Notification (Phone) 1
Information Reporting Services
Basic Online A/C Maintenance 1
Basic Online Detail Transactions 500
Online CM ACH Maintenance (Stand Alone) 1
ACH Upload Expense 1

Grand Total $

455
Item 19.

A-3

Please submit information on any standard monthly service charges that are not listed in the Monthly Activity Detail and use the same format shown in the Monthly Activity Detail. If any service charges are one-time set-up or service charges, or are to be no charge to the City, please make note of this.

All proposals for additional service must be accompanied by supplemental attachments describing in full the services offered along with monthly cost detail.

BANKING SERVICES PROPOSAL – ADDITIONAL SERVICES
COST

ITEM NO. SERVICE DESCRIPTION SUMMARY Per Unit Monthly
456
Item 19.

Deposit products are offered through Wells Fargo Bank, N.A., Member FDIC. Wells Fargo Bank, N.A. is a banking affiliate of Wells Fargo & Company.

City of Beaumont
Response to Request for Proposal for Banking and Merchant Services July 8, 2022
Submitted by:

Wells Fargo Bank, N.A.

Government Banking Division
Jamie O’Connell
Relationship Manager
951-295-7482
[email protected]
Todd Reed
eReceivables Consultant
619-857-3855
[email protected]
Gurleen Pannu
Treasury Management Sales Consultant
206-833-4083
[email protected]
457
Item 19.

A-1

CITY OF BEAUMONT

BANKING SERVICES PROPOSAL

SUBMITTAL COVER SHEET
BANK NAME:

LOCAL BRANCH ADDRESS:

CONTACT PERSON:

PHONE NUMBER:

EMAIL ADDRESS:

CORRESPONDING BANK:
(If Applicable)

CORRESPONDING BANK

CONTACT PERSON /
PHONE NUMBER:

Signed by Bank Signatory:

Bank Signatory (Print Name):

Bank Signatory Title:

Date:

Address:

Phone Number:

Email Address:

Wells Fargo Bank, N.A.

Jamie O'Connell
Senior Commercial Relationship Manager
334 W. Third St.

First Floor
San Bernardino, CA 92401-1828
951-295-7482
[email protected]
6/29/2022
Not applicable
499 E. 6th St.

Beaumont, CA 92223
Catherine Ramos
951-845-2605
[email protected]
458
Item 19.

Jamie O’Connell
Vice President
Relationship Manager
Wells Fargo Bank, N.A.
334 W. Third St.

First Floor
San Bernardino, CA 92401-1828

July 1, 2022

City of Beaumont
Attention: Jennifer Ustation
Finance Department
550 E. Sixth St.

Beaumont, CA 92223

Dear Ms. Ustation,

We would like to thank you for the opportunity to review the banking services for the City of Beaumont (the City). We are excited to share our technologies, best practices, and experience with you and hope you see the value in choosing Wells Fargo.

As your local relationship manager, I am responsible for helping ensure you are up to date with the latest trends by providing ongoing review of current services, and ultimately, being your advocate for any financial services you request from Wells Fargo. With 26 years of banking experience, and 16 years focusing on Government customers, I take pride in the relationships that we have built over the years and believe great customer service is most important in building that foundation. It is my goal to show you the value in our efficiencies, and that Wells Fargo is the best choice for all your financial needs. In addition, I am a resident of Yucaipa, allowing for in-person meetings as often as requested.

Why change banks?
Your current growth requires the use of today’s latest technology, and you need a banking partner that specializes in treasury management and focuses on your financial success. Wells Fargo is a leader in innovation, always striving to develop new services that meet our customers’ needs — today and tomorrow.

When the City is comfortable doing so, we want to offer you a Business Process Review (BPR). This means you will collaborate with Wells Fargo treasury management experts who will evaluate your processes and offer ideas to streamline and create efficiencies and help your staff with their day-to-day tasks.

Our services work well together, and by having one bank process your collections, payables, and electronic billing, you get the added benefit of offsetting service charges with an earnings credit rate (ECR) based on collected balances.
459
Item 19.

In addition, we have a dedicated merchant services team that can consolidate your departments with one gateway and manage your credit card processing for your customers. This service provides one system for all online, phone, and face-to-face transactions. We offer a robust all-in-one commercial card system that keeps track of receipts and out-of-pocket expenses.

We also welcome the opportunity to show you a demo of Commercial Electronic Office® (CEO®), our online banking platform, and all the tools you receive as our customer.

Managing your relationship
The City would be assigned to our local Government Banking Division in San Bernardino for all mail correspondence. My office is located at 334 W. Third St., San Bernardino, CA 92401. Your relationship is assigned to me, and I will meet with you in person, or virtually, for any upcoming projects, discussion of relationship goals, and ideas to improve your current position on all financial services. Your relationship associate, Anna Gonzales, is responsible for service requests. Anna also serves as my back up when I am away. Your dedicated treasury management sales consultant, Gurleen Pannu, works to serve your treasury management need. Depending on the services you choose, we work with a team of government experts in their fields and will provide the City with a strategic plan for financial growth while optimizing your internal resources.

We also have two Beaumont branch locations: 499 E. Sixth St., and 1494 E. Second St.; with a Wells Fargo branch right across the street from City Hall for convenience.

Please reference my “Message to the City” page that is inserted in Appendix Tab A, before the pricing documents. We asked a lot of questions during this process to come up with scenarios and recommendations that the city will find most valuable.

What’s next?
Our proposal for banking services as requested in the RFP follows. After your request for proposal (RFP) period has closed, we hope to further our conversations about how Wells Fargo can potentially help take your banking to the next level. We look forward to working with you.

Sincerely,

Jamie O’Connell, Vice President
Relationship Manager
Local Government Banking Division
460
Item 19.

Table of contents
III. Scope of services ........................................................................................................ 1 IV. Information requested .................................................................................... 16 A. Qualifications and experience ............................................................................................... 16 B. Personnel ......................................................................................................................................... 22 C. General banking services ......................................................................................................... 28 D. Implementation/conversion .................................................................................................. 81 E. New services and ideas ............................................................................................................. 96 F. References ................................................................................................................................... 124 G. Sample contract ........................................................................................................................ 125 H. Pricing and account analysis ............................................................................................... 125 Additional services .............................................................................................................................. 126 V. Pricing of banking services .......................................................................... 127 Overview .................................................................................................................................................. 127 Alternative method ............................................................................................................................ 128

461
Item 19.

Appendix
Pricing .......................................................................................................................... Tab A Information security program letter ............................................................. Tab B Business continuity program letters ............................................................. Tab C Merchant services information ........................................................................ Tab D Community involvement ..................................................................................... Tab E Disclosures ................................................................................................................. Tab F Account agreements and service descriptions ......................................... Tab G 462
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 1

III. Scope of services
The following section details the services to be provided to the City. Except for nonsubstantial deviations or acceptable alternatives, all services listed in this section are mandatory. The City will not consider proposals for partial services.

Acknowledged. Wells Fargo meets these requirements. We provide further details in this section as warranted.

The following required services include:

Wells Fargo meets this requirement. Wells Fargo is a federal reserve bank and we have full access to all Federal Reserve services.

Wells Fargo Bank, N.A., originally chartered on November 30, 1870, is a national banking association organized under the National Bank Act and is not incorporated under the laws of any state. Rather, it operates pursuant to a certificate of authority issued by the U.S. Comptroller of the Currency.

Wells Fargo Bank, N.A maintains two full-service branches within Beaumont’s city limits.

Wells Fargo Bank N.A. is an eligible public depository in the State of California. All public entities in California are entered into the pooled collateral program administered by the State. We will comply with all collateral requirements set forth in the California Government Code.

3. The bank must fulfill orders for currency and coin through the City’s courier upon request.

The City can place change orders through our online banking portal, CEO, to be delivered to your location on the date and time selected. You must have this service included with your courier contract, but Wells Fargo can accommodate this request with the authorized users you select at the City. In addition to online change orders, with enough notice, change orders may be placed with the local branch as well, if required.

463
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 2

Cash vault services
You can place change orders online, by touch-tone order service, through a standing order, by transmission, or through DTS Connex®. Your contracted armored courier delivers change orders from a Wells Fargo vault to your location. For cash vault services, we will work with you during implementation to review cash vault restrictions and help you to compare our suite of services to identify the best option for you.*
* Some services are available subject to applicable product eligibility.

The City should contract directly with, and pay fees directly to, an armored courier of your choosing from our approved list of courier companies.

4. The bank will engage a team or specific relationship coordinators for the life of the contract.

Your relationship manager, Jamie O’Connell, and the treasury management sales consultant, Gurleen Pannu, are part of our Government Banking group, a team of seasoned professionals dedicated exclusively to serving the unique banking needs of the public sector. This team provides consultative, analytical, and qualitative service — your needs are our first priority. We enlist the help of our subject matter experts, should the need arise.

5. The bank will provide full account reconciliation, positive pay, electronic fraud protection, electronic deposits and disbursement, online wire entry, and online stop-payment placement.

Acknowledged and agreed. Wells Fargo meets these treasury service requirements. We provide service details in our response to section C, General banking services.

6. Online reporting includes prior day transactions (no later than 8:00 a.m. Pacific Standard Time the next day) and current day transactions.

The City can access both prior business day and current business day account information through our electronic banking system.

We update previous day information by 3:30 a.m. Pacific Time Tuesday through Friday and by 5:30 a.m. Pacific Time on Saturday.

We update current day (intraday) information multiple times throughout the day. The exact times vary depending on the specific transaction types and report. We report transactions and update the current ledger and available balances on a near real-time basis.

7. Compensating balances and sweep accounts are preferred.

We accept compensation in fees, balances, or a combination of the two. The same price schedule applies, regardless of the compensation method.
464
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 3

Wells Fargo & Company is a nationwide, diversified financial services company. We’re headquartered in San Francisco, but we’re decentralized, so every local Wells Fargo office is a headquarter for satisfying all our customers’ financial needs and helping them succeed financially.

We identify key measures of our financial strength in the following table.

Key facts Measure
Capital ratios
Total equity to assets1
Risk-based capital2
• Common equity Tier 1
• Tier 1 capital
• Total capital
Tier 1 leverage2

9.51%

11.85 13.54

16.75 8.36
Market value of stock3,4 $161.8 billion
Total assets2 $1.9 trillion+
Customers3 70 million
Digital (online and mobile) active
customers3

32.9 million
Households3 1 in 3

1. Wells Fargo. 2021. wellsfargo.com > About Wells Fargo > Investor Relations > Annual Reports and Proxy Statements > 2020 Annual Report.

2. Wells Fargo. 2021. wellsfargo.com > About Wells Fargo > Investor Relations > SEC and Other Regulatory Filings > Q1 2021 Form 10-Q.

3. Wells Fargo. 2021. wellsfargo.com > About Wells Fargo > Who We Are > Quarterly Fact Sheet.

4. Based on sales, profits, assets, and market value as of March 31, 2021.

9. Provide the financial institution’s current level of public funds deposited and related collateral market value.

As of 05/31/2022, public funds deposits were $4,009,119,794.93 and market value in collateral was $4,824,368,608.81.
465
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 4

10. The ability to accept multiple file submissions from our payment processing financial system.

Consolidated payables file transmission
You can initiate ACH payments directly from your treasury workstation, enterprise resource planning (ERP) platform, or accounts payable (AP) system when you use our consolidated payables service. Saving you time, our service groups ACH transactions and multiple other payment types in a single file.

The service supports the following payment types.

Payment types for consolidated payables
U.S. ACH transactions in U.S. dollar (USD)
USD and Canadian Dollar (CAD)* paper checks
Global ACH transactions in foreign currencies
USD wires
Foreign currency wires
Requests for transfer (SWIFT MT101 messages)
Wells Fargo virtual card transactions
Disbursements with Zelle®†
* CAD paper checks are available only for off-us accounts. † Zelle® and Zelle®-related marks are wholly owned by Early Warning Services, LLC, and are used herein under license.

Our consolidated payables service separates payments by type and processes them accordingly, sending traditional or human-readable remittance information to payees as appropriate.

11. Provide the City with a check scanner for deposit of checks directly from City Hall as well as a “smart-safe” for deposit of cash.

Your treasury management sales consultant, Gurleen Pannu, helps you select and purchase equipment that best suits your business needs.

Our remote deposit service is compatible with Panini, Canon, and Digital Check scanners.

Check scanners are ordered through our vendor Superior Press, and may be applied to analysis and the transition allowance we are offering if used within the first 12 months.

Prior to installation, the smart safe vendor you select will arrange for an installation specialist to conduct a site readiness inspection at your locations. The vendor will typically install the safes on a concrete base and use bolts that secure the safes to the floor.

The smart safe is a contract between the City and an armored courier of your choice. We are only on the receiving end of the transmission, and those contracts are held separately from ours and are not included in our proposal. The safe purchase or lease is an agreement with a different vendor and not subject to our response, but we include information about the cash received related to this service.

466
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 5

12. Image of deposited items and provide online access for deposit reconciliation including images of deposited items.

Acknowledged and confirmed. Once captured, images are available for viewing through our online banking service within two hours of your deposit cutoff time.

13. Provide online and email notification of deposit issues within 24 hours.

You can choose from several options to receive returned entries and notifications of change (NOCs).

You can receive them by:
• Online
• Email
• Transmission
• Your ERP, accounting platform, or payment system
• Fax
You can choose the option that best suits your needs. The ACH Return/NOC report is available through our online information reporting service. This report provides a settlement summary and full detail about each return. The report includes:
• NOCs
• Dishonored returns
• Contested or corrected dishonored returns
• Redeposits
• Refused NOCs
• Administrative returns
You can view this report in HTML or PDF format and download it in BAI V2, CSV, or Excel format.

14. Possible off-site credit card payments on City-issued mobile devices.

With Clover Go, the City can use your mobile phone or tablet to accept payments wherever you do business. You download an app to your iOS or Android device. Then, with the use of one card reader, cardholders can dip or tap to pay. The card reader, which connects using Bluetooth, is EMV chip card enabled. The service can capture signatures for card transactions. In addition, you can record cash and check transactions for reporting purposes.

You connect using your device’s cellular data plan or Wi-Fi supported with a wireless router or hotspot. Please refer to the response to section E. New services and ideas, Wells Fargo Merchant Services, for more details.

Security and fraud protection tools
With all devices, encryption and tokenization help protect card data, while EMV chip card t echnology helps prevent in-person fraudulent transactions.
467
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 6

To help potentially reduce your payment card industry (PCI) compliance scope, you can configure the Clover Station Solo, Clover Station Duo, Clover Mini, and Clover Flex devices to provide point - to-point encryption (P2PE) and PCI P2PE-certification at no additional cost.* * Because Clover Go uses a Bluetooth card reader linked to your own mobile device, the solution cannot be PCI P2PE -certified and you cannot accept PIN-debit transactions.

15. Provide positive pay services with online transmission of check details.

Positive pay is an important tool for reducing losses due to check fraud or check processing errors.

With our same-day and next-day positive pay services, we identify checks that may be fraudulent or unauthorized by matching checks presented against your account for payment to the check issue information that you provide us.

Please see the response to section C, question 5, for details.

16. Provide positive pay exception item review and correction online.

Our balance reporting system integrates positive pay reports, both online and through our mobile service. You can view a list of positive pay exception items, view check images, and submit pay and return decisions.

All exceptions will post to your account; however, we do not include MICR errors and misreads with positive pay exceptions. Our Operations group will reverse MICR errors and misreads, and then repost them with the correct information on the following business day.

17. Provide online stop-payment services.

You can submit stop payment orders online or by electronic transmission in your account reconciliation or positive pay check issue file. With both methods, you can place stop payments 24 hours a day, seven days a week, from multiple locations. We process stop payments in real time.

Please see the response to section C, question 6, for details.

You can request front and back paid check images and receive them promptly through our online Transaction Search service. Images are available by 6:00 a.m. Pacific Time the business day after posting. Some images may also be available on an intraday basis.

Our image transmission service, Image File Import (IFI), provides a daily, weekly, semi-monthly, or monthly file of paid check images, and related index information. Image files are available as early as 8:00 a.m. Pacific Time the day after posting.

When processing paper items, check truncation is our standard service. We image these items. The City can search for images of disbursement checks posted to your account for up to seven years. 468
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 7

19. Provide online access to cashed check images.

You can receive check image detail online or through image transmission.

Online
You can retrieve, view, print, and download disbursed check images through our online banking portal using our Transaction Search service. Images are available by 6:00 a.m. Pacific Time the business day after posting. Some images may also be available on an intraday basis. Images are available for seven years.

Image transmission
Our image transmission service provides a daily, weekly, semi-monthly, or monthly file of paid check images, and related index information. Image files are available as early as 8:00 a.m. Pacific Time the day after posting. Through our secure transmission platform, you can download files into your internal archives, or to our viewing software. During implementation, you will choose which format, XML or PDF, you want to use for your files.

20. Method of reversal of automatic direct deposits for errors.

You can choose from the following options for initiating an ACH transaction or batch reversal:
• Include a reversal transaction in your next ACH file
• Submit a reversal request online
• Email or fax your reversal request to us
Per National Automated Clearing House Association (Nacha) guidelines, you must notify receivers of any reversals and submit your reversal requests within five business days after settlement. Our deadline for reversal requests is 1:00 p.m. Pacific Time on the fourth day after the entry’s posting date. For same-day transactions initiated online, through email, or through fax, reversal requests must be received before 5:00 a.m. Pacific Time.

Security procedures
ACH file
Individuals who can originate ACH transmission files at the City can include reversal entries in the file.

Online
Only your authorized users can initiate reversal requests through our online banking portal. Your company administrator can grant or restrict user access.

Email or fax
If you choose to use our secure email or fax option, we provide you the required forms. You control who has access to these forms at the City. We accept all emailed and faxed forms, as long as all required fields are complete, and an authorized user has signed the form. 469
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 8

Notification
We offer the following options for notification of reversal results:
• Call our ACH Customer Service group for confirmation
• Receive a confirmation when you initiate a reversal online • Receive a CNote when you send a reversal file or batch • Receive one or both of the following end-of-day processing reports by fax or transmission:

Delete/Reversal Summary report and Delete/Reversal Item report • View ACH reports on our online banking portal

21. Accept and send ACH transactions.

Our electronic link to the ACH network allows us to receive and initiate any payment type available through Nacha. We have no processing window restrictions. You can initiate same-day, one-day, and two-day ACH transactions that settle to U.S. accounts through all of our input methods. When using our online initiation service, you can require dual approval for outgoing ACH payments. Our ACH Fraud Filter service further helps to protect your accounts with options to review or stop unauthorized debit and credit transactions.

You can increase your accounting efficiency with detailed treasury reporting, and you can gain a more predictable cash flow — versus using paper checks — because settlement options let you know when payments will clear. Streamlining your business, you can use our ACH services to:
• Deposit employees’ wages directly into their checking accounts • Pay vendors
• Convert paper checks to ACH debits for electronic processing • Make state and federal tax payments
• Make international payments
• Handle cash concentration and disbursement transactions • Make other direct deposits and direct payments
.

22. Accept ACH payment files from 3rd parties.

We receive files from hundreds of vendors who process payroll files for our customers. During implementation, we ask for a contact from the City whom we contact in the event that there are any production issues when processing your ACH transactions. We also ask for a technical contact from your third-party processor.

During implementation, we:
• Coordinate the transmission setup with your technical contact • Discuss various transmission protocols we support
• Require acceptable test files before moving into production 470
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 9

Once in production, we process the files from your vendor as if you sent them to us directly. Because your processor sends your payroll file to us, the processor receives the CNote file confirmation. You can choose for us send your returned items either to your processor or the City.

23. Provide ACH debit blocking services.

We offer two options that block ACH debits to your account.

We can automatically return transactions that you did not preauthorize* and process all that you preauthorized. Alternatively, we can block all ACH activity from posting to your account. * ACH reversals bypass the ACH Fraud Filter service and post to your account automatically.

24. Provide a secure electronic method to initiate intra-bank transfers.

Online banking portal
Our online banking portal is available 24 hours a day, seven days a week, providing you with single sign-on access to account information and a wide range of financial services. By tailoring your user preferences on the portal home page, you can view your account balances and transaction information at a glance. Transfers are secure, requiring dual control on all money movements between accounts.

The services you can access through our online banking portal are listed in the following table.

Online services
Treasury Management
ACH Payments
Alerts
Basic Banking
Bill Manager
Cash Concentration
Cash Vault
Centralized Disbursements
Deposit Maintenance
Desktop Deposit®
Electronic lockbox (E-Box®) Decisioning
Electronic Document Delivery
Fraud Manager
• Positive Pay
• Check Issues1
• ACH Fraud Filter
Healthcare Claims Payments
Healthcare Supplier Payments
Lockbox
Payments
Payment Manager®
Treasury Information Reporting
• Pooling and Intercompany Loans
WellsOne® Expense Manager
WellsOne Virtual Card Payments
WellsTax® payments
Wire Transfer
International Services2
Canadian Treasury Services
CyberSuite
Foreign Exchange (FX)
CEO Trade
Credit, Loan, and Finance
Capital Finance
Commercial Mortgage Servicing View
Credit Management
Customer Online Management System
Trust and Investment3
Allspring Funds®
Commission Management System
Derivatives Access
Fed Funds
471
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 10

Online services
Payment Manager File Validation Tool
Receivables Manager
Returned Item services
Reverse Positive Pay
SAFE Transmission
CEO Administration
Statements & Notices
Sweep Statements and Confirmations
Transaction Search
• Search transaction history
• Images
• ACH Deletes and Reversals
• Stop Payments
Institutional Investing: Reporting
Institutional Investing: Trading
Mutual Fund Reporting
Mutual Fund Trading
Prime Services
Security Valuations
Trust Information Delivery
Trust Portfolio Reporting
Wells Capital Management
Wells Cap Portfolio Reporting

1. Add new checks, cancel existing checks, or place stop payments.

2. Deposits held in non-U.S. branches are not Federal Deposit Insurance Corporation (FDIC) insured.

3. Investment products are not FDIC insured, are not deposits of, or guaranteed by the bank, and may los e value. Deposit and credit products are offered by Wells Fargo Bank, N.A. Member FDIC.

Features and capabilities
With our online banking portal, you can:
• Sign on for services, including alerts by email or text • Centralize your payment and disbursement capabilities • Place stop payments, research transactions, and view images • Customize and download current and previous day reports • Initiate domestic and international ACH payments, wire transfers, FX, trade, credit, and trust transactions
• Help mitigate fraud and operational risk with advanced monitoring tools • Set and manage user authorizations, transaction limits, and assign administrators To see a demonstration of our online banking portal, please contact your treasury management sales consultant, Gurleen Pannu.

Security features
User security
All users must enter a company ID, user ID, and password to access our online banking portal.

In order to access transaction-based or user-management services, a user must enter a PIN and token code. This second level of authentication helps ensure that the individual performing an activity on your account is authorized to do so.
472
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 11

Dual custody
To help reduce your fraud risk, we require dual custody (separate users to initiate and approve) to release online payment transactions, and for any administration services related to transaction- based services.

Dual custody is an industry standard and best practice. This feature helps protect against fraud that could originate inside or outside your company.

For maximum effectiveness, dual custody should involve two users on different computers or mobile devices. You can choose to add dual custody to other online features such as user setup and password resets. By separating user tasks to initiate and approve a payment or make changes to user access, you are better positioned to help prevent fraud.

Additional security measures
We offer extensive security measures to help safeguard your information when you access any of our online services. From physical security of our data centers to encryption of data transmissions to sophisticated access controls, we take precautions to help ensure that your information is safe.

The security of our online banking portal includes:
• Computer network security
• Data center security
• Round-the-clock monitoring
• Data integrity
• Access controls
• Internal controls

25. Provide a secure electronic method with dual authorization for wiring funds.

We offer multiple methods for electronically initiating transfers. All methods provide the ability to require dual control release capability. This includes wires sent to other Wells Fargo customers and beneficiaries at other banks. The City may also set up a dual control wire template for vendors like LAIF and preapproved agencies.

26. Provide online balance reporting services.

Previous day
Our previous day reporting includes all transaction types that post to your accounts. Our standard data storage provides access to seven calendar days of history. We also offer optional extended storage of 30, 60, 90, or 120 calendar days for balances and transaction details.

We update previous day information by 3:30 a.m. Pacific Time Tuesday through Friday, and by 5:30 a.m. Pacific Time on Saturday, though it is often available sooner. 473
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 12

Online and mobile information reporting
Previous day reports With this report you can:

ACH Customer Activity Access ACH settlement information and adjustment details by account, as well as a summary of return activity so you can make more informed decisions about managing your accounts.

Express Balance Receive a quick snapshot of your previous day account balance information as well as your current available balance.

Month-to-Date Balance View a daily summary of account balances — including averages, aggregate float, and total transactions — posted to your account for month-to-date, prior month, or a specific date range.

Previous Day Posting Status View this report throughout the day to see when your accounts’ previous day information is available. This report can include information for Wells Fargo accounts and accounts at other financial institutions.

Previous Day Composite Receive a comprehensive view of previous day posted account information, including balances, transaction summaries, and transaction details. You can also view images of each check transaction and view full detail for wire transfers and received ACH transactions.

Previous Day Return Item View details of paper returns after they are charged to your account. You can also view images of each returned item.

Sweep Account Position* Monitor your line of credit, view your investment position for the next day, see how sweep activity impacts your line of credit, and track dividend accruals. * For Money Market Mutual Fund Stagecoach Sweep® and Credit 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.

Current day
Our current day reporting includes balance information and the following transaction types:
• ACH debits and credits
• Cash letter deposits with availability
• Incoming and outgoing domestic and international wire transfers • Lockbox deposits with availability and detail
• Remote deposits with detail
Our standard data storage provides access to seven calendar days of transaction history. We also offer optional extended storage of 30, 60, or 90 calendar days.

We update current day information multiple times throughout the day. The exact times depend on the specific transaction. We report transactions that post, and we update current ledger and available balances, on a near real-time basis.
474
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 13

Online and mobile information reporting
Intraday reports With this, report you can:

ACH Origination View ACH-originated transactions and confirm that Wells Fargo received and processed them.

ACH Receive View timely information for all received ACH transactions that will post to your account at the end of the current day.

ACH Return/NOC Receive detailed information for all ACH transactions that were returned for any reason, as well as NOC information for items that processed successfully but may require additional action.

Deposit Detail View your electronic deposits for the day, including the items in each deposit and whether the items were processed as checks or converted to electronic transactions.

E-Box Review and post payments that originate through an online bill pay service. View information needed to match payments to your accounts receivables (AR).* EDI Payment Detail Obtain detailed ACH and EDI payment data with addenda translations from your trading partners in a comprehensive format.

Intraday Composite Receive a comprehensive view of intraday information, including balances, transaction summaries, and transaction details.

Intraday Position View total balances across multiple accounts with summarized debit and credit information, helping you determine your intraday cash position, and make daily investment and borrowing decisions.

Intraday Return Item Detail Access details of returned paper items before your account is charged for the returns.

Lockbox Availability Determine your funds availability for all lockbox deposits.

Lockbox Detail View detailed information about received lockbox payments from your customers. You can also view images from each deposit, including checks and remittance documents.

Wire Transfer Detail Receive complete details for all outgoing and incoming wire transfers, including book transfers, domestic U.S. wires, and cross-border wires. * Standard report storage is 60 days. We do not offer extended storage for this report . 475
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 14

27. Allow approximately 5 City employees with different levels of authorization to access the bank’s online reporting system.

Your company administrator can perform a variety of functions through our online administration service, including:
• Creating, maintaining, and deleting user access, including password resets • Restricting user access to services and accounts and setting transaction dollar limits • Creating account or user lists to better organize your users and accounts — lists can be used throughout the administration service to easily select multiple accounts or users to administer
• Setting up multiple users with similar access controls at the same time • Establishing additional controls for specified transactions and functions that require review and approval by a one or more approvers before the request is executed* • Setting up forced dual controls for all tasks performed through the online administration service* • Running management reports that show current user entitlements for a rolling 365 days of administration activity history
* We require dual custody for money movement transactions and changes to user access.

28. Provide account reconciliation services for disbursements (full, partial or positive pay, depending on account).

We offer our disbursement customers the option of either full or partial account reconciliation plan (ARP) services.

We work with you to help you choose the service option that best meets your requirements.

29. Provide monthly activity statements and reports by the 10th day of the following month or sooner.

Monthly statements are available online for the current month and the previous 12 months.

The following table lists the mailing dates and online availability of statements and optional reports.

Service option Business days after cutoff:
online
Business days after cutoff:
mailed
Demand deposit account (DDA)
statements
1 day 3 days
Full reconciliation statement and
reports (with or without positive
pay)
Month-end cutoff
Non-month-end cutoff

4 days
4 days

6 days
4 days
476
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 15

Service option Business days after cutoff:
online
Business days after cutoff:
mailed
Partial reconciliation statement
and reports (with positive pay)
Month-end cutoff
Non-month-end cutoff

4 days
4 days

6 days
4 days
Partial reconciliation statement
and reports (without positive
pay)
Month-end cutoff
Non-month-end cutoff

1 days
1 days

2 days
1 days
.

30. Provide a detailed monthly account analysis statement for each individual account and a consolidated statement showing charges for all account services.

Our interactive account analysis statement is available online.

The City can select individual or multiple items to trend up to 13 months of analysis history, giving you a quick overview of changes in your activity and pricing.

31. Collateralize all collected balances, in excess of balances insured by the FDIC as required by applicable Federal/California Government Codes.

Agreed. We will comply with all collateral requirements set forth in the California Government Code.

32. The city requires a daily deposit pick-up from City Hall with additional pick-up available upon request via an armored car service provider.

The City should contract directly with, and pay fees directly to, an armored courier of your choosing from our approved list of courier companies.

We will assist you in identifying local courier services. 477
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 16

IV. Information requested
A. Qualifications and experience

1. Provide a general overview and brief history of your organization, including parent and/or subsidiary companies and the number of employees.

Our history
On March 18, 1852, our founders — Henry Wells and William G. Fargo — began an innovative start- up company dedicated to helping customers build businesses and manage money in a rapidly changing world. Wells and Fargo used their hands-on experience making deliveries by steamship and stagecoach to develop a network of offices from California to New York and around the world.

Wells Fargo agents in thousands of communities provided financial services to local businesses, including money orders and funds transfers by telegraph as well as delivery of valuable goods and mail.

Much has changed since 1852. New communities and industries have emerged and grown. Evolving technology has made communication and financial transactions faster. Across time, and for every generation, Wells Fargo has continued helping customers go further by providing innovative financial services to get ahead. In times of prosperity, depression, or war, people and businesses have turned to Wells Fargo for the solutions they need to survive and thrive. We’re committed to continuing this legacy of providing essential services, innovative soluti ons, and removing barriers so that we help enable consumers and communities achieve prosperity and success.

Our footprint
Wells Fargo & Company is a nationwide, diversified financial services company with $1.92 trillion in assets. We provide banking, insurance, investment, mortgage, and consumer and commercial finance services through more than 7,200 locations, 13,000 ATMs, as well as, 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 more than 70 million customers and one in three U.S. households. We have approximately 254,000 employees.* * As of August 2021.

The list of Wells Fargo & Company subsidiaries is included in the annual 10-K filing at https://www.wellsfargo.com/about/investor-relations/filings/ We have approximately 254,000 employees.*
* As of August 2021.
478
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 17

2. Provide the address of the office location(s) that will service the account.

For local convenience, we have two Beaumont branch locations:

Beaumont branch 2nd Street Marketplace branch
499 E. Sixth St. 1494 E. Second St.

Beaumont, CA 92223 Beaumont, CA 92223
Your relationship manager, Jamie O’Connell, will house the City’s relationship with our local Government Banking group, and her office is in San Bernardino. She works with the City on all projects and requests directly, and visits you onsite at City Hall as requested.

3. Describe the experience of the financial institution in providing similar services for other cities and institutions.

Wells Fargo Government Banking
For almost 170 years, Wells Fargo has been a trusted
financial institution. We’re a leading national bank ranked third in assets by the FDIC in 2022. The strength of our balance sheet helps us serve our government customers
across the country.

Government Banking is part of our Specialized Industries group. Through this group and its resources, we strive to provide the high level of service that you expect and
deserve from your banking provider.

Our more than 300
Government Banking team
members work with nearly
5,500 government customers
across our footprint of 39
states and the District of
Columbia, with $42 billion in
deposits and $21 billion in
commitments.

A dedicated government team
Our Government Banking group aligns sales, specialized banking teams, investment banking professionals, and tax-exempt fixed-income trading and distribution capabilities.

The team itself consists of more than 300 banking, credit, and treasury management professionals including relationship managers, treasury management sales consultants, treasury management sales analysts, customer service representatives, and implementation consultants who work together as one team in order to help provide you with industry knowledge and expertise.

Our 79 relationship managers are tenured professionals who are local to their markets. A dedicated relationship manager oversees your relationship, with your treasury management sales consultant further supporting your relationship by sharing new ideas and consulting with you about your services.

Customers like you
We support approximately 5,500* government customers with our coast-to-coast, national GB practice, giving your local team access to industry intelligence and innovative best practices. * Wells Fargo internal reporting, as of 2021.
479
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 18

In the State of California, our dedicated Government Banking team of local relationship managers provides solutions for 801 government organizations who hold an average balance of $4 billion.

Our customer relationships include federal, state, county, and city governments, as well as government agencies, authorities, and municipal utilities. In addition to the regional support provided by our teams, we also specialize in key subsectors of the industry including public power, transportation, and state housing finance authorities.

Helping you meet your challenges
We understand the different needs and challenges facing our government customers. Our employees work with you to help you maximize efficiency and take advantage of cost-saving options. They can also help you navigate the strict guidelines and technology challenges unique to government customers. Whether advice on how to raise capital, manage assets, or increase operational efficiencies, we constantly share the knowledge we’ve gained from other government customers that have similar challenges.

An enhanced customer experience
We regularly monitor our service levels to validate and help ensure the consistent quality of the customer service that we provide you. We also offer educational sessions on current treasury management topics to keep you aware of industry best practices and regulatory changes.

Why Wells Fargo?
We help make it convenient to use our services. As one of the first banks in the U.S. to offer web- enabled treasury management services, Wells Fargo is recognized as a leader in online and mobile services, as shown below.

Global Finance* Best Corporate/Institutional Digital Bank in North America (2020)
• Best Online Portal
• Best Online Investment Management Services
• Best Trade Finance Services
• Best Integrated Corporate Banking Site
• Best Information Security and Fraud
Management
Best In Social Media Marketing and Services
• Best Open Banking Application Programming
Interfaces (APIs)
Keynova Mobile Banking Scorecard† #1 in Overall Performance, tied with Bank of America and Chase
#1 in Mobile Web Banking Experience and Privacy and
Security (March 2020)
Keynova Small Business Banking Scorecard† #1 Overall Performance — Small Business Banking Experience through Digital Channels (2020)
* Global Finance. August 12, 2020. “World’s Best Digital Bank Awards 2020 Press Release.” † Wells Fargo. 2021. wellsfargo.com > About Wells Fargo > Who We Are > Quarterly Fact Sheet. 480
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 19

4. Complete the following table with current credit ratings by Standard & Poor's Rating Services and Moody's Investor Services. If the proposer is not rated by these rating organizations, provide other evidence of the institution's financial strength.

Wells Fargo subscribes to DBRS, Fitch, Moody’s, and Standard & Poor’s ratings agencies. We include our current ratings in the following table.*
Wells Fargo &
Company
DBRS
Morningstar
Fitch Moody’s S&P Global
Long-term Issuer
Rating
AA (low) A+ A1 BBB+
Short-term Issuer
Rating
R-1 (middle) F1 P-1 A-2
Senior Unsecured AA (low) A+ A1 BBB+
Subordinated A (high) A- A3 BBB
Preferred Stock A (low) BBB Baa2 BB+

Wells Fargo
Bank, N.A.

DBRS
Morningstar
Fitch Moody’s S&P Global
Long-term Issuer
Rating
AA AA- Aa2 A+
Short-term Issuer
Rating
R-1 (high) F1+ P-1 A-1
Bank Deposits AA AA Aa1 A+
Senior Unsecured AA AA- Aa2 A+
Subordinated AA (low) A Aa3 BBB+
* The information provided can be found on our Investor Relations site 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 before using or relying on information on or available through this site. Potential investors in our securities should seek professional advice before they invest.

5. Discuss the firm's current capital structure, adequacy, and coverage. If applicable, provide the firm's risk-based capital classification (Well Capitalized, Adequately Capitalized, Under Capitalized, Significantly Undercapitalized).

Wells Fargo Treasury Management

City of Beaumont | 20

We identify key measures of our financial strength in the following table.

Key facts Measure
Capital ratios
Total equity to assets1
Risk-based capital2
• Common equity Tier 1
• Tier 1 capital
• Total capital
Tier 1 leverage2

9.51%

11.85 13.54

16.75 8.36
Market value of stock3,4 $161.8 billion
Total assets2 $1.9 trillion+
Customers3 70 million
Digital (online and mobile) active
customers3

32.9 million
Households3 1 in 3

1. Wells Fargo. 2021. wellsfargo.com > About Wells Fargo > Investor Relations > Annual Reports and Proxy Statements > 2020 Annual Report.

2. Wells Fargo. 2021. wellsfargo.com > About Wells Fargo > Investor Relations > SEC and Other Regulatory Filings > Q1 2021 Form 10-Q.

3. Wells Fargo. 2021. wellsfargo.com > About Wells Fargo > Who We Are > Quarterly Fact Sheet.

4. Based on sales, profits, assets, and market value as of March 31, 2021.

Capital adequacy and risk coverage
Wells Fargo manages a variety of risks that can significantly affect our financial performance and our ability to meet the expectations of our customers, shareholders, regulators and other stakeholders.

We continue to monitor our business, including our loan portfolios, for potential direct, indirect, and macro-economic impacts.

For additional information about how we manage risk, see the “Risk Management” section in our 2021 10-k annual report, link below.

6. Include an electronic copy of the most recent audited financial statement and the latest 10- k report with the proposal.

You can locate Wells Fargo & Company’s most recent annual report through the following site:
wellsfargo.com/invest_relations/annual.

You can locate Wells Fargo Bank, N.A.’s last four quarterly call reports through the following site:
https://cdr.ffiec.gov/public/ManageFacsimiles.aspx by using the Wells Fargo Bank, National Association FDIC Certificate No. 3511.
482
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 21

7. Provide the bank’s Community Reinvestment Act (CRA) rating.

Community Reinvestment Act rating
The Community Reinvestment Act (CRA) of 1977 requires banks to meet the credit needs of all the communities where they do business, especially low- and moderate-income communities. In its most recent CRA Performance Evaluation, which covers the years 2012-2018, the OCC gave Wells Fargo an overall CRA rating of “Outstanding.”
The CRA Performance Evaluation notes that Wells Fargo is a “leader in making community development (CD) loans,” and makes “significant use of innovative and flexible loan products” to meet credit needs. The Performance Evaluation also noted that our retail banking options are accessible in a majority of the areas surveyed and that we serve our customers through full-service ATMs, phone banking, online and mobile banking, and mobile payments. On the individual components of the Performance Evaluation, Wells Fargo received an “Outstanding” on the Lending Test, a “High Satisfactory on the Investment Test, and a “High Satisfactory” on the Service Test.

The OCC also rated our performance in the State of California as “Outstanding,” which reflects our strong track record of lending to, investing in, and providing service to low- and moderate-income communities, both in the State of California and nationwide.

We are deeply committed to economic growth, sustainable homeownership and neighborhood stability in low- and moderate-income communities and expects to invest above and beyond what is required by the CRA. Community reinvestment is an integral part of our business culture. We have long understood that we can be no stronger, nor more successful, than the neighborhoods and communities where we do business. Supporting our communities allows us to better meet our customers' financial needs and helps us to achieve our goal to be one of America's best companies.

You can find our most recent CRA performance evaluation at the following link:
wellsfargo.com/about/community/wfcra/perf_evaluation.

The California evaluation starts on page 245.

8. Be sufficiently capitalized to accommodate the City’s cash management needs and ensure collateralization of funds.

Wells Fargo meets this requirement. Our public funds deposit collateralization program complies with all applicable statutes and regulations governing public funds deposits, including the pledge and perfection of collateral. Identifier codes — used on public funds accounts — trigger collateralization.

We determine collateral needs based on the prior day’s close of business account balance. However, we can accommodate same-day collateral requests upon sufficient, advanced notification of an incoming deposit.

The Public Fund Database generates daily reports that allow us to monitor daily balances, and FDIC and collateral requirements. We collateralize deposits by using securities that maximize the bank’s liquidity while meeting all applicable collateralization requirements. Wells Fargo obtains market value from established third-party services. The collateral value is market-to-market daily. 483
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 22

We closely monitor deposit balances to ensure they are operational in nature and support the ongoing business needs of our customers. For deposit balances consistently in excess of a customer’s operational needs during periods of elevated liquidity, we offer off-balance sheet solutions through our sweeps to money funds and fixed income platform to accommodate a customer’s needs. We reserve the right to assess a monthly deposit balance fee based on average positive collected balances that we determine are in excess of a customer’s operational cash needs.

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE B. Personnel

1. Provide the name, title, address, phone number, fax number and email address of the primary contact person(s) assigned to this account.

Your Wells Fargo Government Banking team understands your business objectives and has the experience to provide the City with the solutions and relationship support you deserve and expect of your financial service partner. Your core relationship team is led by relationship manager, Jamie O’Connell, and treasury management sales consultant, Gurleen Pannu. Together your team looks forward to working with you as your primary banking partner and are committed to bringing you innovative, efficient solutions to enhance your treasury management processes.

We center our business on the needs of our customers. We take pride in approaching each relationship individually and, as one team, leveraging our resources to create the most value for our customers. We create value through providing industry knowledge and expertise, strength and stability, and an enhanced customer experience.

Jamie O’Connell
Relationship Manager
334 W. Third St.

First Floor
San Bernardino, CA 92401
951-295-7482
866-205-4778 (eFax)
[email protected]
Gurleen Pannu
Treasury Management Sales Consultant
999 Third Ave.
42nd Floor
Seattle, WA 98104
206-833-4083
[email protected]
Biographies of your full Wells Fargo relationship team follow.

2. Describe your firm’s policy on changing the primary contact person on an account.

We consider your preferences when assigning a relationship manager to your relationship and make a concerted effort to keep the existing relationship assignments in place and unchanged. However, there are cases, mostly due to natural attrition, where a new relationship partner is assigned to replace a departing employee.

In the event that your relationship manager exits their role, we provide you with as much advanced notice as possible, and also make a good-faith effort to replace the individual with someone equally qualified and experienced.
484
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 23

We facilitate a full knowledge transfer, as well as a warm handoff, so that you’re comfortable with the transition and feel confident that your services will continue without interruption.

In addition, our top priority is to provide all members of our Customer Care for Businesses (CC4B) Service Office with equal training, so that in the event of staff turnove r the City will receive the same high level of attention and customer service.

Local, dedicated relationship team
Our relationship-focused approach to our diversified set of products and services helps ensure you have solutions that are right for you — at the right time. We are your advocate, and our goal is to exceed your expectations and establish an interactive relationship. The following chart contains the biographies with pertinent information of your t eam.

Your relationship manager, Jamie O’Connell, and her leadership team have full local decision-making authority to handle emergency needs of the City as they arise.

Relationship Manager
Jamie O’Connell, Vice President

.
334 W. Third St.

Fourth Floor
San Bernardino, CA 92401
.
[email protected]
951-295-7482 mobile
Jamie offers the City consultative financial and banking guidance and coordinates the team of specialists that support your banking relationship. Jamie is your advocate at the bank and assists with all financial services you request from the bank.

She began working for Wells Fargo in 1996 and has been a relationship manager since 2012, but has focused on
Government customers for the past 15 years. She is celebrating her 26th work anniversary at Wells Fargo this year.

She is an active member of the Wells Fargo Volunteer Chapter and is on the advisory board for the Inland Empire Ronald McDonald House. She also organizes volunteer groups for Habitat for Humanity and the Community Action Partnership of San Bernardino County. Jamie is also very involved with CSMFO’s annual conference, and local chapter meetings.
.

485
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 24

Relationship Associate
Anna Gonzales

.
333 S. Grand Ave.

Seventh Floor
Los Angeles, CA 90071
.
[email protected]
213-253-7304, ext. 7304 office
Anna supports your relationship manager, Jamie O’Connell, and helps to enhance your customer service experience. She serves as your liaison with other areas of the bank. She also assists with questions related to account analysis statements and
overdrafts.

Anna has been in banking since 2008 and a relationship
associate since 2019.

She received her business management degree from Mount
San Antonio College.
.

Treasury Management Sales Consultant
Gurleen Pannu, Assistant Vice President

.
933 Third Ave.
42nd Floor
Seattle, WA 98104
.
[email protected]
206-833-4083 mobile
Gurleen offers her treasury management expertise to the City.

She shares best practices and product and service information to guide you in developing your treasury management program.

Gurleen has worked in banking since 2011, where she began her career with the Wachovia and Wells Fargo merger. With more than 11 years in finance, Gurleen’s background spans from retail to business, and Government Banking. Gurleen has been
working with government entities since 2018.

Gurleen received her bachelor’s degree in human services from The George Washington University.
.

486
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 25

Treasury Management Sales Analyst
Jessie Volz, Assistant Vice President

.
1350 Fashion Valley Rd.

Fourth Floor
San Diego, CA 92108
.
[email protected]
619-688-2850 office
Jessie supports your treasury management consultant, Gurleen Pannu. She works with you to begin new service
implementations and can assist with treasury management questions when Gurleen is unavailable.

Jessie brings more than 14 years of banking experience to her current position.

Jessie earned her B.S. in business management from San Diego State University in 2008.
.

Lead Merchant Services Product Sales Consultant
Todd Reed

.
1350 Fashion Valley Rd.

Fourth Floor
San Diego, CA 92108
.
[email protected]
619-857-3855 office
Todd recommends payment processing solutions to fulfill the City’s processing needs. He shares best practices and product and service information to guide you in developing your eReceivables program. He can also assist you with other receivables and print services products.

Todd has worked in banking since 2000. He began working for Wells Fargo in 2017 as an eReceivables consultant. He is a Six Sigma Black Belt, an Enterprise Content Management
Professional (ECMP), and a Management Action Program
(MAP) graduate.

Todd received his B.S. in business administration from the Rochester Institute of Technology.
.

4. Will a specific customer service representative or a customer service department be assigned to handle day-to-day transactions for the City? The City will contact our industry award-winning* CC4B Service Office for assistance with your inquiries related to online services. For all other requests, you will contact your relationship team; relationship manager, Jamie O’Connell, and your relationship associate, Anna Gonzales. * 2020 American Business Awards silver winner for Customer Service Department of the Year. 487
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 26

a. Describe the responsibilities of the customer service personnel, including the chain of command for problem resolutions.

The City will contact our CC4B Service Office for assistance with your services. Client service officers assist you until your issues are resolved. They take ownership to navigate your inquiry through any needed solutions and assist with any simple or complex issues you encounter. They are service experts who understand treasury management from your perspective and quickly understand your questions and concerns. Your relationship team prefers to be included on any issues related to signer changes, maintenance on accounts, and escalated inquiries.

Continuity of service
Our client service officers do not have an assigned number of customers. They are trained to understand and respond to the City’s needs without interrupting your service.

Escalation process
If you have an issue our client service officers can’t solve, they will escalate it on your behalf. It is the responsibility of our client service officers to use the leadership structure to assist with escalations.

They may also engage technical support and key product and operational associates. b. Is local customer service support available at the bank's local branches? The City may conduct transactions using the local branch, but due to the many customized needs of our Government customers, it is important to always include your relationship manager, Jamie O’Connell, for any of these requests. She can coordinate an appointment for a branch need with the local manager, but all maintenance on accounts is conducted with the local government team. Jamie is located 15 minutes away and can support local meetings at your request.

In the rare occurrence a branch transaction is needed, Jamie can introduce the City to the local branch manager, Catherine Ramos, for additional support. Most of your needs will be met with our treasury management solutions, local government expertise, and online maintenance with your relationship team.
c. What are the hours of operation of each customer service unit involved in supporting the proposed services?
Our CC4B Service Office representatives are available Monday through Friday from 4:00 a.m. to 7:00 p.m. Pacific Time and Saturday from 6:00 a.m. to 12:30 p.m. Pacific Time.

Your relationship team can be reached between normal business hours Monday through Friday from 8:00 a.m. to 6:00 p.m. Pacific Time, holidays excluded. 488
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 27

d. If an error is discovered by the City, how would you propose to resolve it (i.e. who should the City contact first, etc.)?
If an error is discovered, your relationship manager, Jamie O’Connell, and relationship associate, Anna Gonzales, prefer to be the first notified of the issue. For any technical support issues, or online banking support, they may refer you to our CC4B Service Office team that can provide more in- depth training or assistance.

When you contact our CC4B Service Office with an inquiry that requires research, the client service officer who works with you logs your issue and provides you with a case number and an expected resolution time. Your client service officer may also engage additional resources as needed.

5. IT Resources: Will the bank provide dedicated IT liaison(s) to work on set-up, file transfer, testing and troubleshooting/issue resolution? During what hours is technical support available?
Yes. In most cases, client service officers can diagnose your problem and provide a solution on the first call. However, if there is a problem that our customer care representatives can’t resolve, they act as your liaison to escalate the issue to our CC4B Technical Support.

Hardware and software issues
While we can’t provide support for the City’s hardware and software, we will assist in any way we can.

For instance, we can help to troubleshoot an issue with a scanner but won’t troubleshoot an area that your IT department is more suited to support; we won’t put your systems at risk.

Transmissions issues
Our Wholesale Transmissions department focuses primarily on communication issues related to data transmission. Customers who exchange information with Wells Fargo using our data transmission service will also have the help of dedicated support staff.

Hours
Our CC4B Service Office representatives are available Monday through Friday from 4:00 a.m. to 7:00 p.m. Pacific Time and Saturday from 6:00 a.m. to 12:30 p.m. Pacific Time.

Our CC4B Technical Support group is available during the same hours as our CC4B Service Office team: 4:00 a.m. to 7:00 p.m. Pacific Time and Saturday from 6:00 a.m. to 12:30 p.m. Pacific Time.

Again, customer care representatives contact CC4B Technical Support on your behalf and communicate the issue back to you.
489
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 28

C. General banking services

1. Deposit Processing
a. Please provide a listing of bank branches, noting the address and distance of the branch closest to the City.

Wells Fargo has two locations in the City of Beaumont. Our closest branch to the City’s main office is located at 499 E. Sixth St.

The branches identified in this table are closest to your locations and can support your commercial deposits for cash and checks.

Your location Branch Branch hours
(local time)
Branch deposit
deadline
(local time)
Distance
City of Beaumont
550 E. Sixth St.

Beaumont, CA 92223
Beaumont
499 E. Sixth St.

Beaumont, CA 92223
951-845-2605
Mon-Fri: 9:00 a.m. –
5:00 p.m.

Sat: 9:00 a.m. –
12:00 p.m.

Mon-Fri: 5:00 p.m.

0.09 miles
2nd Street Marketplace
1494 E. Second St.

Beaumont, CA 92223
951-769-2973
Mon-Fri: 9:00 a.m. –
5:00 p.m.

Sat: 9:00 a.m. –
12:00 p.m.

Mon-Fri: 5:00 p.m.

2 miles
.
.
b. For deposits collected and transported by the City, which branch location do you propose the City use to deposit funds?
We propose the City use our Wells Fargo branch located at 499 East Sixth St., conveniently located across the street from City Hall.
c. Please describe the bank’s deposit requirements. How should the coin and currency deposits be prepared? How should un-encoded check deposits be prepared? Deposit preparation requirements vary based on the deposit method.

Deposits using post verify service
If you use our post verify service — so that we verify your cash deposit after you leave the branch — we require the City to make your deposit in a secure, plastic, tamper-evident, dual-pouch bag. Each bag must contain a bar code, as well as a unique 10-digit serial number on a tear strip, that you retain as a record.

Insert cash in the tamper-evident portion of the bag (top section). Place checks and the deposit ticket in the resealable portion of the bag (bottom section). 490
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 29

You can deposit loose coin in amounts less than $10 at all branches. Most branches accept rolled coin for deposit amounts between $10 and $50. You should use FED standard coin bags for amounts greater than $50. You may include checks and currency on the same deposit ticket.

Night depository
The procedures for night deposits are the same as those for post verification. the City will make your deposit in a secure, plastic, tamper-evident, dual-pouch bag. Each bag must contain a bar code, as well as a unique 10-digit serial number on a tear strip, that you retain as a record.

Insert cash in the tamper-evident portion of the bag (top section). Place checks and the deposit ticket in the resealable portion of the bag (bottom section).

Deposits to a cash vault
Deposits made to a cash vault require a secure, plastic, tamper-evident deposit bag. Each bag must contain a bar code, as well as a unique 10-digit serial number on a tear strip, that you retain as a record.

If you’re submitting split deposits, you insert cash in the top section of the bag. Place checks and the deposit ticket in the bottom section. If you’re submitting mixed deposits, you insert cash, checks, and the deposit ticket in the deposit bag.

You can deposit both loose and rolled coin in any amount. Special coin bags may be required for weight purposes. We recommend that you deposit checks and currency on separate deposit tickets, but it’s not required at most of our cash vault locations.

Deposits to ATM
Using your business ATM deposit card, the City can deposit cash and checks at any of our Wells Fargo deposit-enabled ATMs. The deposit preparation steps are as follows:
• Make deposits in batches of up to 30 items (cash and bills together) • Deposit cash and checks directly into the ATM — you do not need to use an envelope or deposit ticket
Remote cash capture
You receive detailed deposit preparation requirements and procedures during implementation. The requirements and procedures vary based on the safe model that the City selects. You can deposit loose coin in amounts less than $10 into the safe as a manual deposit. 491
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 30

d. What is the ledger cutoff time for deposits?
Our cutoff times for same-day ledger credit vary based on how you make your deposit.

Branch deposit services
• Deposit-enabled ATM — ATM deposits made before 9:00 p.m. local time will be posted on the same business day. You receive credit the next business day for deposits you make after the deadline, on weekends, and on federal holidays.
• Night depository — Once we process your deposit, you receive same-day credit for cash and check deposits made prior to the cutoff time.
• Teller line — You receive same-day ledger credit for both cash and check deposits made by branch closure, local time.

The branch deposit deadline for your local Beaumont branches is Monday through Friday, 5:00 p.m.

Pacific Time.

Remote cash capture (smart safe)
Most customers choose to receive provisional deposit credit the next business day through our standard or premium remote cash capture service, SafeVantage®.

We can provide provisional same-day credit to the City’s account. However, this level of service requires establishing a cutoff time that is before the end of a typical business day, which can cause reconciliation problems. In anticipation of matching transaction data, we post on the same day your deposits were made or prior to the cutoff time. We then post the deposits that you make after the cutoff time to the next business day.

The following table shows the cutoff times in local time.

Service level Cutoff time
(local time)
Provisional credit
received*
Standard 4:00 a.m. Next business day
at end of day
Premium intraday† 4:00 a.m. Next business day
by 8:00 a.m.
* At implementation, we can discuss questions you may have concerning receipt of provisional credit. † Additional fees apply.

For check deposits that the City makes in the smart safe’s manual drop slot, you will receive credit after the deposit is physically picked up and delivered to Wells Fargo for verification. These deadlines for pickup are the Cash Vault cutoff times.

Cash vault by armored courier service
Different deadlines apply for cash only, check only, and mixed deposits of cash and checks. You receive same-day credit for deposits received by the deposit deadline. 492
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 31

You can place coin and currency orders 24 hours a day, seven days a week — using our online banking portal, automated touchtone phone system, or direct file transmission services. Your armored courier normally delivers your change orders the next day; remote locations may require two days in transit. Contact your armored courier to confirm your delivery times for change orders.

The following table lists our cutoff times for deposits and change orders, in local time.* Cash vault site Deposit deadline Order deadline
Cash-only Check-only Mixed Touch tone Online or
Transmission
California
Los Angeles 7:30 p.m. 7:30 p.m. 6:00 p.m. 10:30 a.m. 10:00 a.m. *Cash Vault Locations, Deadlines, and Touch-Tone Quick Reference Guide. Your relationship manager, Jamie O’Connell, can provide this guide. You may also download it from our online banking portal, in the cash vault service section.

Wholesale lockbox
The following table lists our deadline for the Los Angeles site. At sites with more than one deadline, you can choose the time that best meets your internal balance reporting or transmission requirements.

We include payments received after your established deadline (including any payments processed during the weekend or on a holiday), in the following business day’s work.

Lockbox site Deposit time*
Los Angeles 4:50 a.m., 10:00 a.m., 5:00 p.m., 7:00 p.m. *All times are local.
e. How are deposits created? Are all items immediately verified? If provisional credit is given, when does verification take place? If the financial institution corrects a deposit, how with the City be informed of this change?
The City uses many different deposit methods today, and depending on the service used, the cutoff times may vary. The City may have branch deposits, cash vault deposits, lockbox deposits, and items submitted through remote deposit or our E-Box solution.

No matter the solution, we start the verification process right away and will notify you of any items or transactions that may be subject to return. If something is returned, we notify the City upon our knowledge, and the City can set preferences to obtain returns based on your desired al ert settings.

Branch deposit services
You will receive a receipt for the amount listed on the deposit ticket and provisional credit at the time you hand the deposit to the teller.
493
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 32

Based on the branch’s proximity to a cash vault location, we verify the cash either at the branch or at one of our cash vault locations. If we complete our verification at the branch, we verify it within 48 hours. If we complete it at a cash vault, we verify it within 72 hours.

You receive an adjustment notice by U.S. mail or email. The notice includes the amount, reason for the adjustment, and location code (if applicable).

Remote cash capture (smart safe)
The smart safe holds your deposit until your armored courier picks it up.

Each smart safe is equipped with a built-in bill validator and counterfeit detection technology. The bill validator verifies the authenticity of each bill and confirms deposits note by note.

The City will receive provisional expedited credit to your account on all cash deposits made by the service cutoff time.

The City has two options to receive provisional credit:
• Standard — You receive credit for your deposits on the next business day in the evening after the cash has been deposited and you can view transactions on previous day reports. • Premium intraday — You receive next business day credit by 8:00 a.m. local time and view transactions on both intraday deposit and previous day reports.

Deposit adjustments
The safe vendors’ guarantee programs cover nearly all deposits that their safes validate; however, the process for reimbursement differs by vendor.*
Brinks
The Brinks guarantee covers cash in safe and counterfeit items. Wells Fargo will post adjustments for out-of-balance conditions. For reimbursements, the City must work directly with Brinks.

Garda
The Garda guarantee doesn’t cover cash in the safe or counterfeit items. Wells Fargo will post adjustments for out-of-balance conditions. For reimbursements, the City must work directly with Garda.

Loomis
The Loomis guarantee covers cash in the safe and counterfeit items. This vendor doesn’t make adjustments, if the discrepancy is under $100. Wells Fargo will post an adjustment to your account for all out-of-balance conditions greater than $100. You can initiate research requests directly with the bank. Upon request, we may handle the claims process with Loomis. * The process is subject to change by Brinks, Garda, and Loomis. Please contact your armored courier for the vendor’s most cu rrent safe guarantee program information.

Cash vault
Deposit procedures begin once your armored courier transports your deposit. Your armored courier transfers the deposit from the vehicle to the cash vault and documents the deposit contents in a manifest.
494
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 33

Our tellers process the deposit* and credit your account for the total declared on the deposit slip.

You receive same-day credit for deposits received by the vault deadline. * Tellers work under video surveillance and follow dual custody procedures.

Deposit verification
Within 48 hours of receipt of your deposit, tellers count and verify the cash against the amount shown on your deposit slip.

The City can review deposit and adjustment transaction information using these sources:
• Daily balance reports*
• Monthly bank statements
• Cash vault reports*
• Cash Vault Activity Summary
• Deposit Activity
• Deposit Adjustment Activity
• Online cash vault service
* Additional fees apply for reports.

Deposit adjustments
You can use our standard adjustment amount or opt to adjust all discrepancies. We generally do not disclose our dollar limit. You can choose to receive a phone call notification for all adjustments of more than $100.

For any deposit discrepancy, we send a deposit adjustment notice by email or U.S. mail. Notices include the deposit date, declared amount, verified currency t otal by denomination, and location number (if applicable). When you use our online Cash Vault service, you can also see the deposit adjustment online.

Wholesale lockbox
Operators create a file that contains the MICR data, check amount, and a digital image of each deposited check, then transmits the file to our processing department. We then clear the checks electronically.

After your scheduled lockbox deposit deadline passes, we generate your lockbox output that includes both images and data. You can receive your reports and images online or by transmission.

You can also request to receive a paper package by mail.* We will gather any unprocessed or rejected items and deliver them to you based on your instructions. Because we credit all deposits processed through our lockbox network into Wells Fargo accounts, we are responsible for handling all adjustments and resolving any errors. This prevents you from having to work with multiple institutions to resolve inconsistencies. * Additional fees may apply.
495
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 34

Deposit corrections
If errors are discovered, we will notify the City of the issue and it will be notated on the previous day report. However, we don’t identify and adjust all discrepancies.

We reserve the right to write off check adjustments and cash adjustments based on dollar thresholds that we set internally. As a matter of policy, we don’t disclose these thresholds to customers.

If your account is a commercial deposit account or an analyzed business deposit account, then you may arrange for us to adjust all discrepancies identified during any verification without regard to our standard adjustment amount. Please contact your relationship manager, Jamie O’Connell, to make this request.

When we adjust a deposit amount, we make a separate debit or credit entry to your account. We also provide an adjustment notice and relevant backup documents.

If you use our subaccounting service, then your adjustment notice will include your location number and location name (if applicable).

Reporting
We provide deposit adjustment notices inform you about discrepancies. Our procedures vary based on where we process your deposits. You can also review adjustments on your bank statements, online reports*, and file transmissions. Gurleen Pannu, your treasury management sales consultant, can discuss timeframes with you at service implementation. * Additional fees apply for reports.

2. Remote Deposit Capture
a. Describe the financial institution’s ability to process checks by RDC.

Remote deposit
You can potentially save both time and money by using our remote deposit service to deposit checks into your Wells Fargo account electronically. Our service eliminates the need for your employees to make trips to the bank to deposit checks. In addition, an extended deposit deadline of 7:00 p.m. Pacific Time for same-day ledger credit may mean faster notice of returned items.

Our service can also help you consolidate your banking relationships, since you no longer need to maintain accounts at local banks that have physical branches near your locations. Fewer banking relationships can help you save money on account maintenance fees and reduce the time spent reconciling multiple bank accounts.

How it works
With our remote deposit service, you scan checks for deposit by using an approved check scanner and computer with internet access. Next, you confirm the check dollar amounts and verify the deposit balances. Then, you submit the deposit to us and receive a prompt confirmation. 496
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 35

If you enroll in our Alerts service, we send authorized users a deposit confirmation notice by email or text message.

The following diagram shows the remote deposit process flow.

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 and also available online through our Transaction Search service for seven years.

Custom fields
Using multiple discretionary data fields, you can enter customized information about the checks that you receive; this feature lets you search for checks using your own criteria and makes it easy to upload data into your AR 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.

Report name Description
Deposit Report This report contains general information (including deposit amount, number of checks included, and submission date) for deposits completed within the past 90 days. It is available in HTML, PDF, CSV, and Excel formats.*
Deposit Report with Item Details This report contains general deposit information (including deposit amount, number of checks included, and submission date) and item details (including item amount, item status, and check number) for each deposit completed within the past 90 days. It is available in HTML, PDF, CSV, and Excel formats.* The HTML format includes links to display item images.

Deposit Report with Check Images This report contains general deposit information and item details for each deposit. It is available in PDF format. You can select the number of images (up to four per page) that you would like to see, including the option to include the back of the check image.

Deposit detail transmission We offer a deposit detail transmission that can include discretionary data that you manually entered, in addition to check detail. This feature allows you to receive an electronic file for posting your receivables. * CSV, Excel, and HTML formats contain keyed discretionary data. 497
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 36

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 scan-only 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 batching helps to simplify balancing when you have checks for multiple entities in the same deposit. To help simplify how you reconcile individual batches, our deposit reports show the name and subtotal of each batch.

Mobile deposit
You can capture check images and deposit funds* to your account with the camera of a mobile device.† Mobile users, such as on-the-road personnel, can accept customer checks and deposit them immediately.
* One check per deposit.
† Requires an iPhone, iPad, or iPad Mini running iOS version 11 or later or an Android device running 7.0 or later.

Updates
If you use our remote deposit service through our online banking portal, you don’t need to install any software (other than a scanner driver). Any updates and enhancements we make are promptly available to you when you access the system. If you use our remote deposit service through your mobile device, you need to download the latest version of our mobile application to access all of the latest features and enhancements.

Quality control
✓ Before submitting a deposit, you will have a chance to review the scanned items, and make corrections (such as rescan images, enter missing data, and verify item amounts) to balance the deposit. ✓ 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 approximately 1% or less of all items we process*), we follow a standard process for handling them.
✓ If we cannot clear an item, we follow an adjustment process and notify you accordingly. * Internal reports, April 2021.
b. Is there a limit on the number of checks that can be contained in a single deposit? Yes. If you use our remote deposit service, you can include up to 1,000 checks in a single deposit.

You need to create multiple deposits if you have more than 1,000 checks to deposit. 498
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 37

c. Does your service allow for multiple deposits in a single day? Yes. There are no limits on the number of deposits you can make in a day. d. How will we be notified of deposit corrections and/or adjustments? We provide deposit adjustment notices that you can view online through our Statements and Notices service. You can access updates Monday through Friday through our online banking portal at 11:00 a.m., 3:00 p.m. and 8:00 p.m. Pacific Time.

You can also choose to receive email or text message notifications that let you know when deposit adjustment notices are available for viewing. If you prefer, we can send notices to you by mail. e. Describe the process used for balancing and correcting deposits transmitted to your institution.

After the City submits a deposit for processing, our Electronic Deposit Center reviews it and attempts to resolve any exception items.

When a correction is necessary, we resolve it by making a separate debit or credit entry to your account and provide you with an adjustment notice and associated documentation.

If your deposit includes 25 or more exceptions, or if exceptions comprise more than 50% of your deposit, we do not process it. We contact you by email and ask you to correct the problem for each exception and resubmit the deposit.
f. Does your service offer the ability to adjust data using recognition technology that was not captured correctly by the scanner? If yes, please describe. If not, does the service allow the addition, deletion, and rescanning of checks during both the correction and balancing functions?
Yes. During the review process, authorized users can correct data that the scanner did not capture correctly. Authorized users can perform the following functions to correct data and balance your deposits:
• Rescan an item if the image is not legible or if the information is not captured correctly from the MICR line
• Manually enter missing data, such as the deposit amount and other transaction information • Manually key in MICR data
• Scan additional deposit items
• Delete one or more items from a deposit
499
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 38

g. What equipment does the financial institution recommend for RDC and what is the price for this equipment?
Your treasury management sales consultant, Gurleen Pannu, helps you select and purchase equipment that best suits your business needs.

Our remote deposit service is compatible with Panini, Canon, and Digital Check scanners. The following table lists the specifications by manufacturer.

Suggested daily
check volume
Scanner type Check-processing
speed and volume
Connection interface and
dimension
Fewer than 20 iPhone, iPad and
Android smartphone
• CEO Mobile® deposit
Digital Check
CheXpress CX 30-IJ
Single feed • USB 2.0 (recommended)
• Backward-compatible with USB

1.1, with performance limitations
• 9.5” Lx4.0”Wx7.0”H
• Weight: 3.5 lbs.

Fewer than 500 Digital Check TS240-
50 50 documents per
minute
• USB 2.0 (recommended)*
• Backward-compatible with USB

1.1, with performance limitations*
• 11.1”Lx5.1”Wx7.5”H*
• Weight: 5.2 lbs.

Panini X 50 50 documents per
minute
• Mac compatible
• USB 2.0 (recommended)
• Backward-compatible with USB

1.1, with performance limitations
• 10.39” Lx5.43”Wx6.88”H
• Weight: 5.5 lbs.

More than 500 Canon CR190i II† 190 documents per
minute
• USB 2.0 (recommended)
• 10.7”Lx18.7”Wx8.4”H
• Weight: 18.5 lbs.

Digital Check TS 240-
100
100 documents per
minute
• USB 2.0 (recommended)*
• Backward-compatible with USB

1.1, with performance limitations*
• 11.1”Lx5.1”Wx7.5”H*
• Weight: 5.2 lbs.
* Applicable to all Digital Check TS240 scanner models. † Allow five to seven extra business days for delivery.

At this time, we do not offer a multi-tray feeder solution for high-volume scanners.

If you have low volume, the City can consider using our mobile deposit service or purchasing a single-feed scanner to capture and deposit checks.

With average use, all of the scanner models have an expected life cycle of approximately four years. 500
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 39

Mobile deposit
Mobile deposit service users with scan and balance authorizations can deposit checks* from a camera-enabled iPhone, iPad, or Android smartphone† through the downloadable CEO Mobile app available from the Apple App Store® and Google PlayTM store. * One check per deposit.
† Download the latest version of the CEO Mobile app available for your device from the Apple App Store or Google Play store.

We have included pricing on scanner equipment, maintenance fee, necessary supplies, and set -up fees in the Appendix section of our proposal.
h. Can checks be automatically endorsed with the financial institution's RDC service? Is the automatic endorsement an electronic image or printed on the check? Though scanners cannot print the City’s endorsement on checks, our remote desktop service can overlay a virtual, preformatted endorsement on the back of each check image. If you choose to use this feature, you don’t need to endorse your checks prior to scanning them. Through our reporting services, you can view this virtual endorsement.

We offer a standard virtual endorsement format that is not customizable. i. Are checks cleared as ACHs or image replacement documents? How does the financial institution's software determine the clearing mechanism? We clear more than 99% of items by image exchange, and less than 1% by image replacement document (IRD).
j. Is there a difference in legal standing for items clearing by ACH or image replacement documents (IRDs)? If so, please describe.

No.

Yes. You can place automated coin and currency orders. We debit your account the day that we fill your orders and include your location numbers (if applicable) on your electronic reports and statements.
501
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 40

Online tool for cash management
the City can create, track, and manage cash deposits and change orders online across multiple banks using the DTS Connex Online Cash Management Tool.* You make deposits and place coin and currency orders that we provision with our cash vault by armored courier and cash vault by mail services. International Financial Services requires a separate enrollment to use this tool. * DTS, DTS Connex, and corresponding logos are registered trademarks or service marks of International Financial Services, Inc. IFS is not a subsidiary or affiliate of Wells Fargo. The DTS Connex Tool and any other products or services provided by IFS to you are separate from the services you receive from us, and we make no representations or warranties and will have no liability to you in connection with products and services provided to you by IFS.

Security features
The DTS Connex tool features:
• Account lockout — The system locks out a user account, if there are too many invalid password attempts.
• Password expiration — The system requires users to update their password every 90 days. • Timed sign-off — The system automatically signs off users during periods of inactivity.

Standing, automated order
During your cash vault service implementation, you can provide details to receive change orders on a predetermined delivery schedule (recurring orders). As a security measure, such standing orders eliminate the need to place an order manually, which can reduce the likelihood of inaccurate or fraudulent orders.

Deadlines
Different deadlines apply for cash only, check only, and mixed deposits of cash and checks. Coin and currency orders vary according to the cash vault that provisions your order. b. Describe change order procedures and restrictions for branch pick up.

You can call your branch, 24 hours in advance, to place a change order. Depending on the settlement method that you choose, restrictions may apply for pickup. If you use a third-party courier for order pickup, then bank preapproval is required prior to initiating a relationship with the local branch.

Additional restrictions — relative to the size and frequency of change orders — vary depending on the branch’s location. We will work with you during implementation to review any restrictions and identify the best option for you.

Cash vault services
You can place change orders online, by touch-tone order service, through a standing order, by transmission, or through DTS Connex. Your contracted armored courier delivers change orders from a Wells Fargo vault to your location. For cash vault services, we will work with you during implementation to review cash vault restrictions and help you to compare our suite of services to identify the best option for you.*
* Some services are available subject to applicable product eligibility. 502
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 41

4. Returned Item Processing
a. Can returned items be automatically re-deposited? If so, how many times? Yes. We can automatically redeposit items returned for nonsufficient funds (NSF) or uncollected funds (UCF) one time. We cannot redeposit items returned for any other reason. Our redeposit service is optional by location.
b. Does the financial institution offer any options that may increase the collection of NSF checks?
Yes. We offer a re-presented check service that provides a highly automated process for electronically re-presenting checks returned for NSF or UCF. Our Electronic Returns service converts your returned check to an electronic ACH debit. This conversion allows us to make up to two re-presentment attempts (instead of only one with the paper deposit process), which can help increase your collection rates.

Consumer checks of less than $2,500 that are returned for NSF or UCF are eligible for this service.

Wells Fargo began offering our electronic returns (RCK) service in 2000 when Nacha rules began allowing banks to convert eligible paper returns to ACH debits. c. Can the financial institution provide online access to electronic images (back and front) of returned items? How soon after an item is returned can these images be accessed? Yes. As shown in the following image, you can access returned items images and detailed information the next business day after we receive the items.

Images are available for up to 180 days. If you enroll in our online decisioning service, you can view images of returned items the same day we receive them.

. .
503
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 42

d. Can the financial institution provide a summary report of returned items identifying the payer's name, depositing location, deposit date, and the type of item being returned? Yes. You can receive a detailed returned item transmission that includes returned checks, converted ACH transactions, and redeposited items.

The file includes a separate record for each returned item with the following details (if available):
• Checking account and ABA number
• Check number
• Check amount
• Original deposit date
• Reason code
• Full name on check*
• Complete address*
• Phone numbers*
• Driver’s license number and state*
• Check date*
The transmission does not identify the type of item being returned, but it can identify the depositing location either by subaccount or by the location identifier on the deposit ticket.† * We can manually key these fields if they are present on the check. † Deposits made using a counter ticket or a deposit ticket that does not include the location code on the MICR line may not con tain the location identifier for returned item reporting purposes.

5. Positive Pay
a. Does the financial institution offer Positive Pay and Payee Positive Pay? Yes. Positive pay is an important tool for assisting with reducing losses due to check fraud or check processing errors. With our positive pay services, we identify checks that may be fraudulent or unauthorized by matching checks presented against your account for payment to the check issue information that you provide us. We report positive pay exceptions to you through our fraud manager tool on our online banking portal. You view exceptions — including images — then make decisions to pay or return.

You can send your check issue information to Wells Fargo by transmission or through our online banking portal. When you use our online service, you can upload an Excel file or manually enter the check information.* We accept issue information 24 hours a day, seven days a week. If we receive your check issue information prior to 8:00 p.m. Pacific Time, then we update your check issue information in our system that day. We can update your check issue information more than 50 times each day.

You can view exception images quickly and easily and then make pay or return decisions using our online banking portal or mobile service.†
* For current system requirements, see wellsfargo.com/ceosystemrequirements. † Download the latest version of the CEO Mobile app available for your device from the Apple App Store or Google Play store. 504
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 43

Payee Validation
Optionally, you can add our Payee Validation service to a positive pay service.

You include payee names in your check issue file exactly as they appear on your checks. We validate payee names on all checks presented for cashing at our teller windows and on deposited checks above the threshold dollar amount.

We pay payee matches and report payee mismatches to you through our online fraud management tool. As with our positive pay services, you make your pay or return decisions through the online banking portal or mobile service.
b. How would the City transmit check issuance information to the financial institution? We offer two options for providing your issue files to us:
• Transmit check issue information to us through one of our secure file transfer protocols • Upload check issue information using our online fraud management tool c. What is the deadline for the transmission of check issuance files to the financial institution?
You will receive next-day exception reporting with check images by 7:00 a.m. Pacific Time. You will make your pay and return decisions by 12:00 p.m. Pacific Time. The City accesses the reports and enters decisions using our online banking portal.
d. How frequently can transmission files be uploaded to the financial institution for the issuance of additional check, and/or recently voided items? Is there a limit to the number of files per day?
You can transmit multiple issue files to us on the same day. As a general guideline, we prefer that issue files contain 500,000 or fewer records that include issues and registers, stop payments, cancels and voids. If the file will exceed this guideline, we ask that the City contact our CC4B Service Office so that we can monitor the file processing.
e. Does the financial institution offer the ability to manually enter one-time check disbursements issued during the day? Please describe.

Yes. The City can send manual check issue information, including voids and cancels, using our online fraud management tool. You can update your check issue records 24 hours a day, seven days a week. f. What controls are in place to protect against lost files and duplications of transmissions? If duplicates are sent, is there a penalty or potential issues? Controls for file transmission
When you transmit a file to us using one of our supported transmission protocols, you can receive an email notification to confirm that we received your file. The email includes the time the bank received the file and indicates whether your file loaded successfully or failed. This process helps to identify instances of file loss and reduce duplicate transmissions. 505
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 44

Controls specific to ARP
Our ARP solution rejects duplicate records, preventing them from posting to the account. Various confirmation options identify the items rejected as duplicates.

Confirmation reports
Our ARP File Confirmation service, in conjunction with your own internal controls, helps to prevent issues such as file loss and duplicate transmissions. Summary and detail confirmation reports indicate:
• Number of register items received
• Register items captured
• Total dollar amount of captured items
• Each rejected register item
• Rejected data line as sent to the bank
• Reject reason
The Detail ARP File Confirmation transmission additionally lists each item by serial number and includes stop payment data for stop payments included on your ARP issue file.

Duplicate returns
You cannot send a return request for positive pay exception by file transmission. Instead, the City will use our fraud management tool on our online banking portal or mobile service* to review all positive pay exception items. If a check was previously paid and is received a second time, it will be a positive pay exception that you will return with a reason of ‘duplicate.’ * Download the latest version of the CEO Mobile app available for your device from the Apple App Store or Google Play store. g. How will the City be notified of exception items? What time will the City receive the information on exception items? What time does the City have to notify if an exception should be accepted or rejected? Does the financial institution offer a "do not pay" default for exception items?
Notifications
Our optional Alerts service can provide the following information through email, text message, or fax. Additionally, you can view the alerts on our online banking portal.

Alert type Description
ARP File Confirmation • Wells Fargo has received a check issue file through transmission or the online banking portal.
• Wells Fargo has received an individual check you entered through the ‘Add Check Issues’ option in the CEO Fraud Manager service.

Account Processing Complete • Wells Fargo has completed the daily exception processing for your positive pay accounts.
.
506
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 45

Deadline
You will receive next-day exception reporting with check images by 7:00 a.m. Pacific Time. You will make your pay and return decisions by 12:00 p.m. Pacific Time. The City accesses the reports and enters decisions using our online banking portal.

Default decision
To take full advantage of positive pay, we recommend a return default disposition. All items that you do not decision will be returned to the bank of first deposit. These items can be redeposited by the payee provided the bank of first deposit permits it. If you are sending issue records to us in a timely manner, there should be few exception items.
h. Will stale date checks be reported as exception items? We do not generally review the dates on checks. However, you can subscribe to our stale-date service, which is available with full account reconciliation and Positive Pay services. You will specify a stale-date period that can range from one to 99 months.

With one of our next-day Positive Pay services, stale-dated checks will post to your account.

During your implementation, you can choose whether you want us to include your stale -dated checks with your positive pay exceptions. If so, then you can make pay or return decisions for each one.

If you choose to return a stale-dated check, then we will reverse the paid transaction and return the check the following day.

If you choose not to include stale-dated checks as exceptions, we will automatically reverse the paid transactions and return the stale-dated checks the following day. i. Is Positive Pay required for all demand deposit accounts, even on accounts with no check writing functionality? Can accounts be designated as "post no checks" to prevent potential fraud? Is there a cost to make this account designation? We recommend positive pay with payee validation for all accounts with check writing activity. For accounts with zero check writing activity, we recommend placing payment authorization on those accounts to prevent paper items from clearing.

Payment authorization
Our Payment Authorization service helps prevent unauthorized check cashing by:
• Placing dollar limits on specific transactions
• Preventing the encashment of checks by individuals at the teller line 507
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 46

To protect your accounts, you set all, or any of, the following fraud control options.

Fraud control options

1. Maximum over-the-counter
amount*
You can establish the maximum dollar amount for non-check, over- the-counter activity at our branches (such as a change order request).

2. Maximum check amount† With this option, you can limit the dollar amount of all checks drawn against your Wells Fargo account. This includes checks deposited to other Wells Fargo accounts, deposited at other financial institutions, and checks cashed at Wells Fargo locations. If you will not issue any checks from the account, you can choose to have this limit set to $0.00 to prevent all checks from hard posting to the account. We will then return checks as “refer to maker”.

3. Maximum check cashing amount† You can determine the maximum dollar amount paid in cash at our branches. If a payee presents a check over that dollar amount, our teller will not cash the check. However, the teller can accept the check as a deposit to the payee's Wells Fargo account.

4. Checks to individuals† You can prevent the encashment of checks made payable to individuals at our branches. If an individual presents a check for encashment, our teller will not cash the check. However, the teller can accept the check as a deposit to the payee's Wells Fargo account.
* Available if the account has positive pay.
† Not available if the account has positive pay.

We include all pricing information in the Appendix section of our response. j. Is Teller Positive Pay available? How frequently is check issuance information updated and available to tellers?
Yes. Ensuring check verification at the teller window is one of the most important ways to help minimize the risk of fraud associated with making payments by check.

For all positive pay services, Wells Fargo captures check issue files more than 50 times a day, seven days a week. Your positive pay check issue information reaches our tellers in all of our branches within 30 minutes of receipt. Tellers validate checks pr esented at our teller windows by matching the serial number and dollar amount to your check issue information. k. Are there any other fraud protection services that the financial institution provides and/or recommends?
Fraud protection services
We offer many solutions that put controls in place as fraud protection measures.

Our Payment Authorization service, for example, helps prevent unauthorized transactions by placing dollar limits on checks and over-the-counter withdrawals. Our service prevents individuals from cashing checks at the teller line.
508
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 47

We offer positive pay services that systematically compare checks presented for payment to the check issue information you provide to us. The bank makes the comparison in order to detect mismatched serial numbers and dollar amounts, which can be evidence of fraud. To stop thieves from passing legitimate checks with altered payee names, we offer an optional payee validation service. We pay payee matches. Through our fraud manager tool on our online banking portal, we provide images of payee mismatches for you to view and make decisions on unresolved exceptions to pay or return them.

You have better control over the ACH debits that post to your account when you use our ACH Fraud Filter service. You can choose our stop option so that you automatically stop all ACH debits — except those that you specifically preauthorize — from posting to your accounts. An alternative is our review option, which presents the transactions for you to make pay or return decisions by deadline. We describe our ACH Fraud Filter service in more depth in upcoming paragraphs.

The City can use our Perfect Receivables® service to establish proxy account numbers to route incoming ACH and wire payments. Substituting your account number with a proxy account number makes your actual account number unavailable to thieves, which helps to deflect fraud before a thief attempts to steal the account information.

Our cyber fraud measures include several layers of monitoring and multiple systems that secure your account and transaction information. For example, we require secondary authentications for all high-risk transactions such as online payments, FX, and online administration services.

Your treasury management sales consultant, Gurleen Pannu, will discuss your Fraud Protection Service Report will you and help you determine which services will best help to protect the City against fraud.

Account Validation services
To help reduce transaction fraud and returns, we partner with Early Warning Services to offer Account Validation services that provide real-time account ownership and account status screening functionality.

You can use our services for ACH, check, and wire transactions. Account Validation services can help you enhance productivity, save time, and prevent unnecessary losses while maintaining a high level of customer service.

Solutions
Our services use analytics, a large network of contributed intelligence, and cross-industry data from hundreds of financial services organizations. With our Account Status and Account Ownership services, the City receives advance notification of both low-risk and potentially high-risk transactions.
509
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 48

Our services work with payments received in the mail, over the telephone, through the internet, or in person, and they provide validation for both business and consumer accounts. To determine whether to accept a payment for processing, the City extracts and transmits information through an inquiry to Early Warning Services. The service then compares the inquiry against the National Shared Database™ and provides a response. You receive results in real time.

Account Status This service confirms whether a deposit account (checking or savings) is open and active and if there is a risk of an ACH or check return. The Account Status service is best suited for your customer-initiated online payments and internal real-time systems such as those supporting call centers or stores.

Account Ownership This service performs identity-to-account validation, including such key owner elements as name, address, Social Security number, and phone number. It supports enrollment for recurring ACH payments and screening of one-time ACH, wires, and check payments.

How it works

Inquiry submission types
You can choose the type of submission process that works best for your organization.

Inquiry type Purpose Submission channel
Real-time validation This service lets you submit a real-time account inquiry. It returns a response
in one second or less.

You submit the inquiry through the
Wells Fargo Gateway API channel.

Batch files This service provides back-office
support of your high-volume batch
payments.

You send a file of inquiries directly to
Early Warning Services through a
Virtual Private Network or
Dedicated Circuit (MLPS).

Graphical User Interface (GUI) This service is a user interface for low- volume payments where the account
status or account owner data is
entered manually and an immediate
response is desired. It is most
applicable for walk-up bill payment
windows or call center agents.

You send an inquiry to an Early
Warning Services URL (web
address).
510
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 49

Full account reconciliation
With our ARP and automated reporting services, you can reconcile your disbursement accounts quickly and efficiently with your internal accounting records. Our Full ARP service helps you identify checks and electronic transactions as paid or outstanding — saving you time. In addition, the service helps you detect and reduce your exposure to check fraud.

Potential benefits
• Reduces accounting costs and increases productivity
• Improves cash control and provides faster, accurate payables information • Increases your audit control
• Minimizes your internal and external fraud losses
Our Full ARP service reconciles your paid checks to your issued checks then sends a detailed statement. First, you provide us with your issued check information* by one of three methods:
• Direct transmission
• Uploading a file to our online fraud manager tool†
• Manually entering check information online
* Your check issue information also includes stops, voids, and cancels. † The file you load to the online tool can contain up to 1,500 registers in a single batch, and you may submit multiple batches daily.

Within 90 minutes of your submission, you can receive an optional file confirmation for the check issue information or stop payments. We update check issue information more than 50 times each day, seven days a week.

On a weekly or monthly basis (according to your preference), we make comprehensive statements available for your account. You can request a variety of optional reports including Paid Checks, Outstanding Checks, and Stop Payments. You can receive these reports daily, weekly, or monthly in PDF, Excel, CSV, flat file text (transmission), and paper formats. The PDF and paper formats can include sorting and subtotaling by location or high-order prefix.

Optional reports
You can easily access reports through our online banking portal. With our Full ARP service, you can customize your reporting to match your accounting needs. 511
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 50

Choose from the following 14 optional reports.

ARP optional reports
• Bank Originated Entries
• Credits
• Deposit Location
• Issue Notices Not Received†
• Issues This Cycle*
• Matched Paid Items†
• Outstanding Checks*
• Paid Checks
• Posted Items
• Prior Payments*
• Reversed Checks†
• Stop Payments
• Unpaid Checks*
• Voids and Cancels*
* Only available with Full ARP.
† Only available with Full ARP or Partial ARP with Positive Pay.

Electronic fraud protection
Our ACH Fraud Filter service helps protect your accounts by identifying potentially fraudulent transactions and allowing you to review these transactions, and decide what to return, stop, or allow.

You can access our service through both our online banking portal and mobile service,* so you always have a convenient way to make pay or return decisions. * Download the latest version of the CEO Mobile app available for your device from the Apple App Store or Google Play store.

Convenient and customizable
More than debit blocking, our service allows you the option to review and stop debits, credits, or all transactions. You can preauthorize the ACH transactions that you want to post to your account without review. You can also customize your preauthorizations, setting dollar thresholds and date ranges. You will also receive all ACH payment information, so you know who is attempting to send transactions to your account.

You will have 24 hours to make a return request. And since we filter through the transactions for you, we present only the ones we feel may be a threat.

How it works
Review option: You decide what to return

1. Review: You preauthorize ACH transactions to post to your account. You can review and make decisions on all, just credit, or just debit transactions. You can further look at transactions that exceed a dollar amount, date range, or number of occurrences.

2. Decision: Through our online fraud manager tool, we notify you of any transactions that are not preauthorized. You review those transactions and tell us whether you want them paid or returned.* When you tell us to return a transaction, we create a reversing adjustment and then return it as unauthorized.
* If you do not make a pay or return decision on an item by the specified deadline, the item is automatically paid or returne d based on the default action you select during implementation.
512
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 51

Best practice: Monitor your transactions daily
We recommend that you log in once a day to monitor your ACH transactions. You can also receive a notice by email or text* when an unauthorized ACH transaction posts to your account. You can request that we inform you about:
• All ACH transactions posted to your account
• All ACH transactions that exceed a predetermined dollar amount • ACH credit or ACH debit transactions only
• ACH credit or debit transactions that exceed a predetermined dollar amount • ACH credit or debit transactions outside a specified date range • ACH credit or debit transactions that exceed a specified maximum number of occurrences * Our alerts service has an additional fee.

Stop option: Automatically stop unauthorized transactions With our stop option, we automatically return transactions that you did not preauthorize.* You can request that we stop and return:
• All ACH transactions
• All ACH transactions that exceed a predetermined dollar amount • All ACH credit or debit transactions only
• ACH credit or debit transactions outside a predetermined dollar range • All ACH credit or debit transactions outside a specified date range • All ACH credit or debit transactions that exceed a specified maximum number of occurrences We recommend that you log in once a day to monitor your ACH transactions. You can also receive a notice by email or text† when an unauthorized ACH transaction posts to your account. * Excludes transactions originated by internal Wells Fargo originators, such as Account Analysis fees and settlement entries, that you’ve authorized to the account.
† Our alerts service has an additional fee.

Block converted checks
Our electronic check (eCheck) option, for no additional fee, helps you monitor converted check entries for business-sized checks that have an auxiliary on-us field in the MICR line. This service includes eCheck Post and eCheck Stop options for accounts receivable check (ARC), back office conversion (BOC), and point-of-purchase (POP) transactions. eCheck Post
If you use the eCheck Post option in conjunction with our next-day positive pay service, you can see unmatched items that will post to your account. You use our online fraud manager tool to indicate your decision to pay or return them.

If you use the eCheck Post option with our same-day positive pay service, we do not match ACH converted checks against your check issue records. Instead, we call you for instructions to pay or return the converted checks.
513
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 52

eCheck Stop
If you choose the eCheck Stop option, we automatically stop all ineligible items inadvertently converted before they post to your account.

6. Stop Payments
a. How are stop payment orders placed? Can stop payments be placed online? You can submit stop payment orders online or by electronic transmission in your Account Reconciliation or Positive Pay check issue file. With both methods, you can place stop payments 24 hours a day, seven days a week, from multiple locations. We process stop payments in real time.

Online stop payments are effective immediately when successfully initiated through our Transaction Search service. The system automatically reviews the previous 180 days and intraday teller-cashed activity to determine whether a requested check has paid.

You can submit a stop payment by transmission as late as 8:00 p.m. Pacific Time and still receive same-day processing. The system automatically reviews the previous 90 days and intraday teller- cashed activity to determine whether a requested check has paid. b. Are stop payment requests effective immediately? If not, how long does it take for a stop payment request to be effective?
Yes. Stop payments are effective immediately after you successfully initiate the request online or by electronic transmission.
c. Will the system verify if a check has been paid before processing the stop payment request?
Yes. The system automatically reviews the previous 180 days and intraday teller-cashed activity to determine whether a requested check has paid.
d. What term options are available for stop payments?
Stop payments remain in effect for six months. You can renew an individual stop payment on an as - needed basis through our online service or choose to use our automated renewal option.

The renewal option lets you:
• Extend a stop payment for up to an additional six years (in 12-month increments) • Predetermine a dollar threshold for automatic stop payment renewals • Limit the number of times a stop payment is automatically renewed e. Can Stop payments be automatically renewed? If so, for how long? What is the associated fee for each renewal?
Yes. Please see the response to the previous question d. We include all fee related information in the Appendix section of our response.
514
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 53

7. ACH Processing
a. What ACH file transmission options are available?
The City can use direct origination, send consolidated payables files, or upload files to our online banking portal. Based on the business case you’ve outlined, we recommend direct origination for the City.

Direct origination
With our direct origination service, the City sends us Nacha-formatted files that contain required ACH transaction information such as routing and transit number, account number, dollar amount, and effective date.

Our customers use our direct origination service to originate ACH transactions through 33,608 ACH Company IDs. This count represents 32.84% of our ACH Company IDs.* Consolidated payables origination
The City can send a consolidated payables file with multiple payment types and remittance information directly from your ERP, treasury management, or AP system. Using our Payment Manager service, we accept almost any type of file format that your system generates and provide you with formatting instructions during implementation.

Our customers use this service to originate ACH transactions through 18,594 ACH Company IDs.

This count represents 18.17% of our ACH Company IDs.*
Online origination
Our online ACH payment service allows the City to initiate ACH transactions without needing to create Nacha-formatted files.

Our customers use our online ACH services to initiate ACH transactions through 43,506 ACH Company IDs. This count represents 42.51% of our ACH Company IDs.* Origination with ACH Payments API
You can use our ACH Payments API service to initiate requests one at any time — with no batch requirements — from your ERP, account platform, or payment system. Transactions using application programming technology originate through 296 ACH Company IDs. This count represents less than one half of one percent of our ACH Company IDs.* * Internal reports on ACH Company IDs, April 2022.
515
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 54

b. What are the transmission deadlines for ACH files? When does the financial institution need the file from the City and when are the funds debited from the City’s accounts? The following table lists the cutoff times for our ACH initiation methods.

ACH file deadlines (Pacific Time)
Input method Two-day
settlement
(day cycle)
Next-day
settlement
(night cycle)
Same-day
book transfer
(on us)*
Same-day
settlement
(transit)†
Direct origination 9:00 p.m. 6:00 p.m. 6:00 p.m. 6:00 a.m. 10:00 a.m.
12:00 p.m.

Consolidated
payables file
5:30 p.m. 5:30 p.m. 5:30 p.m. 6:00 a.m.
10:00 a.m.
12:00 p.m.

Online 6:00 p.m. 6:00 p.m. 6:00 p.m. 6:00 a.m.
10:00 a.m.
12:00 p.m.

ACH API 5:00 p.m. 5:00 p.m. 5:30 p.m. 6:00 a.m.
10:00 a.m.
12:00 p.m.
* Both the originating and receiving accounts must be Wells Fargo accounts. The $1,000,000 transaction limit for Nacha’s Same Day Rule does not apply to on-us transactions.
† Transactions for more than $1,000,000 and international transactions (IAT) are not eligible for same-day settlement. Funds from incoming credits are available by 5:00 p.m. local time. c. How are returned and rejected ACH transactions handled? What information does the financial institution provide to assist in identifying returned and rejected ACH transmissions? When is this information available?
We list returned entries individually through our information reporting services. We consolidate the settlement of returned transactions before posting them to your account.

Our proprietary ACH return processing system matches returns automatically with your originating transactions. This effort can simplify your reconciliation process and save your staff the time and effort to handle unresolved returns.
516
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 55

Information provided
Regardless of the delivery method you choose, the return information includes the details listed in the following table.

Information provided
Individual ID and name Dollar amount
Effective date and descriptive date Return reason and return description Receiving bank and account number Original sequence number Original entry description and return sequence
number
Correction (NOCs only)
Account (demand deposit or savings) and
transaction type (debit or credit
Comments (if applicable)
To assist you further in reconciling returned entries, we can include optional information from the following fields (imported from the original entries) with your ACH returns and NOC reporting:
• Company discretionary data
• Original descriptive date
• Original effective entry date
Report options
We post ACH rejects as a separate settlement item on reports and statements.

We consolidate rejects from the same file with the same settlement date as a lump sum before posting them to your account.

To reconcile your rejects, the City can receive returned entries and NOCs online, by transmission, and by fax.*
* Return status is a feature of ACH Payments API. You track and manage any ACH returns using your existing methods, not by the ACH Payments API service.
d. Describe the financial institution's procedures for handling debits to the City's accounts that were not authorized by the City. Does the financial institution notify the City of the receipt of an unauthorized ACH debit?
We offer two options that block ACH debits to your account.

We provide notification of unauthorized ACH debits through our online banking portal and mobile service. Additionally, our optional Alerts service sends notification of unauthorized transactions proactively. You receive alerts by email and text at the frequency you choose. 517
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 56

e. If the financial institution provides ACH debit blocking, what level of filtering can be applied?
You can request that we inform you about:
• All ACH transactions posted to your account
• All ACH transactions that exceed a predetermined dollar amount • ACH credit or ACH debit transactions only
• ACH credit or debit transactions that exceed a predetermined dollar amount • ACH credit or debit transactions outside a specified date range • ACH credit or debit transactions that exceed a specified maximum number of occurrences f. Does the financial institution offer ACH Positive Pay (ability to make pay/no pay decisions on unidentified ACH transactions)?
Yes. Using the review option of our ACH Fraud Filter service, you review ACH transactions that you did not preauthorize and then make a pay or return decision for each item through our online banking portal or mobile service. When you return an item, we create a reversing adjustment to your account and return the transaction to the originator.
g. Does the financial institution offer Universal Payment Identification Codes (ability to mask visible account numbers to reduce the risk of unauthorized direct debits)? Yes. We support Universal Payment Identification Codes (UPICs) for business-to-business transactions.

Our Perfect Receivables service is similar to UPICs, but offers additional features that help you to reconcile accounts more efficiently. You can:
• Assign a unique account number for each originator or sender • Group incoming ACH and wire payment transactions into a single settlement credit

8. Wire Processing
a. Describe the process of initiating wire transfers including USD domestic wires, repetitive wires, USD international wires, and foreign currency international wires.

Outgoing wires
We process outgoing wire transfers on a straight through basis according to your instructions. We manually review, correct, and verify a wire that does not pass our initial screening and that our system cannot correct automatically.

Our wire system confirms your available funds automatically and verifies that wires are not going to a country or beneficiary on the U.S. Treasury’s Office of Foreign Assets Control (OFAC) Specially Designated Nationals Blocked Persons list. If a wire meets these requirements, we release it. 518
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 57

Initiation methods
Method
Online and mobile You can sign on to our online banking portal to initiate repetitive or free-form domestic and international wires.

Consolidated payables You can send one file with multiple payment types (including wires, ACH payments, credit card payments, and USD and CAD paper checks) and remittance information. You can send a file directly from your treasury workstation or your ERP, AP, or other internal system.

We accept most file formats and offer several file transmission protocols, as well as an option to upload your file online.

Telephone1 You can call a single toll-free number and provide an account number, personal identification number (PIN), and voiceprint. We validated these credentials through a voice response unit (VRU).

In person2 You can go to any Wells Fargo branch to initiate a wire. You must have signing authority on the account to initiate the request.

Online foreign exchange You can manage your FX transactions and reporting online.3 Our service combines the advantages of our live market FX rates with the convenience of sending payments online throughout the world.

SWIFT4 If your organization is a member of SWIFT, you can submit your wire payment instructions for processing using SWIFT FIN messages.

Wire Payments API For domestic and international transactions, you can initiate free-form or template wires (including book transfers) from your ERP, account platform, or payment system.

Foreign Exchange API You can book, validate, and offset FX contracts, process wire settlement instructions, and receive FX rates and static rate sheets — transmitting requests directly to our FX system.

1. Book transfer initiation option is not available by telephone.

2. Book transfer initiation option is not available in person.

3. While our online system is available 24 hours a day, seven days a week, FX markets close at 5:00 p.m. Pacific Time on Friday and reopen at 2:30 p.m. Pacific Time on Sunday.

4. SWIFT bills membership and volume fees.

Wire processes
In the following paragraphs, we describe the initiation and approval process for each of our wire service options. In the last paragraph of this response, we describe the release process, which is the same for all wire initiation methods.

Telephone
Initiation
Users call a single toll-free number and provide an account number, PIN, and voiceprint. We validate the information using our VRU.

You can complete repetitive wires set up on our system through the VRU. You will be connected to a Wells Fargo employee in the wire department to complete free-form wires and repetitive wires. 519
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 58

Approval
To help ensure the safety and accuracy of your telephone-initiated free-form wire transfers, you can choose to use our optional callback approval procedure. We call a designated approver prior to releasing telephone-initiated free-form wires. We release the wire after the approver provides his or her PIN and voiceprint.

Online and mobile wire transfer
Initiation
To sign on to our online banking portal or mobile service, you use a company ID, user ID, and password. Then, you enter a PIN and token code. Once authenticated, you can perform wire functions based on your authorizations. Functions include initiating repetitive or free-form wires and approving wires. We include the steps to create and submit wires in the following table.

Repetitive wires* Free-form wires

1. Access the appropriate template by searching or
selecting from a drop-down list.

2. Enter information not built into the template (for
example, the value date or amount).

3. Submit the wire. You receive a confirmation that you can print.

1. Input all required wire transfer fields.

If needed, you can use our bank lookup feature to
search for financial institution information — for
example the beneficiary bank identifier routing
number — and insert it into the appropriate field.

2. Submit the wire. You will receive a confirmation that you can print.
* For repetitive wires, you must set up the wire template in advance.

Approval
You can approve free-form and repetitive wires through our online and mobile wire transfer services. You can customize your setup to require up to four approvers. You can also require an additional approver for wires over a specific dollar amount.

We display items that require approval in the Pending Payments queue. From that screen, you see all pending wires for your authorized accounts. You can approve or reject one or more wires from the Pending Payments summary list based on your approval authority. Before approving or rejecting a wire, you can also review full wire details and modify the wire (if you have the authority). After all required approvals are in place, we release the wire.

Consolidated payables transmission or upload
Initiation
You can transmit or upload a consolidated payables file in a standard or custom form at to initiate wires.

Approval
You can choose to require secondary approval for some or all of the wires you send by consolidated payables file. You can require an approval at the file or transaction level through our online consolidated payables service.
520
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 59

Our consolidated payables service sends emails to each approver when:
• We receive your file
• Payments remain awaiting an approval
• Payments expire without an approval
We describe the approval steps at the file and transaction level in the following table.

Approval steps at file level Approval steps at transaction level

1. Select the file ID to view the details of the file

2. Select to approve or delete the file

3. Select submit or cancel

1. Select the file ID to view the details of a file

2. View the transactions

3. Select the checkbox next to the transaction to
approve or delete

4. Select submit or cancel
Automatic standing transfer (Standing Order)
Initiation
You complete paper setup forms for standing repetitive wire transfers and drawdowns. On the specified dates and times, we automatically initiate outgoing or drawdown wire transfer requests.

Approval
Once you have completed the setup forms authorizing your scheduled transactions, we require no further intervention or approval from the City.

Release process
Our wire transfer system, regardless of initiation method, automatically verifies there are adequate funds available to process the wire, and performs all standard security and risk checks. For example, our system verifies that the transfer is not going to a country or beneficiary on the U.S. Treasury’s OFAC Specially Designated Nationals and Blocked Persons list. Once approved, our system releases the wire immediately.
b. During what hours is the wire transfer system available? We accept incoming Fedwires until 4:00 p.m. Pacific Time and, incoming CHIPS wires until 3:00 p.m.

Pacific Time, for same-day credit. We process incoming SWIFT transactions for same-day credit until 4:00 p.m. Pacific Time.

The City can initiate wires 24 hours a day, seven days a week. Wires are however subject to business- day outgoing wire processing deadlines.

Please also see the upcoming response to question e.
521
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 60

c. If wire transfers can be initiated online, describe the system’s security features. Can varying degrees of authorization be set (i.e. multiple authorizers, maximum dollar amounts, etc.)?
Our required and recommended levels of security safeguards for initiating and releasing wires vary by method. We do not offer fax, PC, or LANed PC wire initiation services.

Internet
Your company administrator assigns user functionality and account access through our online self- administration service. We require a second administrator to approve access to our online wire service. Your administrator also establishes wire initiation and approval dollar limits by payment type for each user. We require two-factor authentication to access our online services. Each user must enter the following information:
• Company ID
• User ID
• Password
• PIN and token code
We require dual approval for all free-form wire origination and template creation or modifications.

Additionally, the City can set controls to require up to four approvals. Users can’t approve wire or templates that they originate. Additionally, if multiple approvals are required, the same p erson can’t perform more than one approval.

Mobile
With the optional use of biometric technology, you can use a compatible mobile device to scan your face or fingerprint as a replacement to entering a password when signing on to our mobile banking service.* As with using the online banking portal, you will need to carry a token for mobile transactions that require two-factor (strong) authentication, such as releasing a payment.

Biometric solutions use your unique physical characteristics to identify you, making spoofing difficult.
* Download the latest version of the CEO Mobile app available for your device from the Apple App Store or Google Play store.

CPU to CPU
Automated consolidated payables
Within your ERP, treasury workstation, or AP system, the City establishes the levels of authority you require for transmissions sent directly to us.

Unless you choose to use secondary approval, we consider any wires initiated and transmitted to us by the City as ready for release. If you use the secondary approval option, we release wires after your secondary approver approves the file. Each approver (you can require up to three) reviews, modifies, approves, or deletes the wires online.
522
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 61

Files you transmit to us are authenticated and encrypted. Security elements vary according to the internet protocol you choose and may include:
• Digital certificates issued by us
• ID
• Key
• Password
• PIN and token code
• PGP encryption
• Connect:Direct (NDM) with Secure+
Manual consolidated payables
You can upload your wire payment file and perform secondary approvals for uploaded or transmitted files through our online banking portal.

If you use the secondary approval option, we won’t release wires until we receive an approval. Each approver (you can require up to three) reviews, modifies, approves, or deletes the wires online.

We require two-factor authentication to access our online services. Each user must enter the following information:
• Company ID
• User ID
• Password
• PIN and token code
d. Does the financial institution offer dual control release options (secondary approval levels) for electronically initiated transfers? If so, describe.

Yes. We offer multiple methods for electronically initiating transfers. All methods provide the ability to require dual control release capability. This includes wires sent to other Wells Fargo customers and beneficiaries at other banks.
e. What is the cutoff time for same-day wire transfers? The following table includes the opening times and cutoff times — by transfer type — for same-day execution of initiated wires on U.S. accounts. The same times apply for all of our wire initiation methods, including the internet, mobile service, file trans mission, and telephone service. 523
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 62

Pacific Time
Wire type Opening time
(PT)
Cutoff time (PT)
Fedwire 5:00 a.m. 3:15 p.m.

CHIPS 5:00 a.m. 2:00 p.m.

Drawdown request 5:00 a.m. 2:30 p.m.

SWIFT 5:00 a.m. 2:30 p.m.

Request for Funds
Transfer (RFT)
5:00 a.m. 2:30 p.m.

U.S. Federal tax
payments
5:00 a.m. 2:00 p.m.

Within
Wells Fargo*
5:00 a.m. 5:00 p.m.
* Transactions within Wells Fargo are moving funds from one Wells Fargo account to another. You can originate these from all origination channels to all our available accounts.
f. What is the financial institution's maximum retention period for future dated transactions? For future dated transactions, at what time are warehoused wire transfers automatically released on the transaction date? What types of wire transfers can be warehoused? Are there warehousing charges?
Our system can warehouse instructions for future value dated USD wire transfers, up to 60 calendar days in advance of the value date, through all of our initiation channels.

Our FX channel can warehouse instructions for future value dated wire transfers in foreign currencies, up to two years in advance of the value date.

We execute (release) future value dated wires automatically as systems come online in each of our available regions. Typically, this occurs by 5:30 a.m. Pacific Time on the value date. The City cannot request a specific release time.

We do not charge a fee for warehousing these instructions. 524
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 63

g. Describe the financial institution's procedure for providing payment confirmation information (e.g., reference numbers) upon acceptance and execution of the wire transfer request, including the availability and method of delivery of internal confirmation/sequence number and clearing system reference number.

All wire origination channels
For all wire origination channels, you can find wire transfer confirmation information through our online Wire Transfer Detail and Intraday Composite reports. Both reports contain timely information about outgoing wire transfers and include the internal bank and Federal Reserve reference numbers.

Additionally, SWIFT users can receive debit confirmations, which includes information on wire transfers sent from your accounts.

Online wire initiation
If you initiate wires online, you can view our Wires Payment report, which shows all wires processed online, and includes our internal confirmation or sequence number. It also includes the Federal Reserve reference number.

Consolidated payables file
If you send wires in a consolidated payables file, you can receive confirmation of your wire transfer instructions by transmission, secure email, or both. The confirmation includes our internal confirmation or sequence number and the Federal Reserve reference number. h. Describe the financial institution’s policy for handling a failed wire transfer. How and when would the City be notified?
Reports
If the receiving bank rejects a wire transfer, it returns the wire to Wells Fargo. We report the returned wire to the City as an incoming wire on your current and prior day information reporting.

We make this reporting available to you online or by transmission.

Online
We update current day reporting multiple times throughout the day, and previous day information reporting at 3:30 a.m. Pacific Time each business day.

Transmission
You can receive current day transmission files at various times throughout the day based on prescheduled times that you specify at the time of setup. Previous day transmission files are available to the City at 3:30 a.m. Pacific Time each business day.

We also offer a detailed, intraday wire return report. This report provides details on each originated wire returned to the bank along with the matching original transaction and the reasons the return occurred. We deliver the wire return report twice daily at 10:00 a.m. Pacific Time and 5:00 p.m.

Pacific Time through transmission or using Electronic Document Delivery. 525
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 64

Notifications
You can receive optional notifications* (immediately or at specific time intervals) about inco ming wires by email, fax, and text message. These notifications let you know when to sign on to our online banking portal to retrieve information about an incoming wire. * Additional fees may apply.

Yes. We accept compensation in fees, balances, or a combination of the two. The same price schedule applies, regardless of compensation method. We can take all your collected balances that are not part of your sweep program and apply the earnings credit for all accounts in the City relationship.
b. Can the City choose between paying for analysis deficiencies by check, auto debit, or ACH credit?
Yes. The City can pay your fees through direct account debit, or pay an invoiced amount by ACH or check each month. We prefer automatic billing after the statement cycle.

Wells Fargo Merchant Services fees are billed monthly and directly debited from your account. c. What is the bank’s Earning Credit Rate (ECR) based on, and how is it calculated each month?
We set our standard earnings credit rate (ECR) internally each month after evaluating a combination of factors including changes in the Fed Funds Target rate and competitor ECRs. We do not use indexes, such as the Treasury Bill (T-Bill), to set the standard rate.

We set the rate at our discretion and may adjust it during the month to react to market changes.

We use the following formula to calculate the earnings allowance:
(Investable balance (also called average daily positive collected balance)) × (number of calendar days in the month) × (ECR) ÷ actual number of days in the year
We do not deduct a reserve requirement prior to calculating the ECR. We calculate your earnings allowance based on 100% of your investable balance (also called average daily positive collected balance).
d. List the bank’s average ECR for each the last six months (October 2021 thru March 2022).

The government ECR rate for the past 6 months has been 0.25%. The ECR went up to 0.32% on June 1, 2022, and increased to 0.49% on July 1, 2022.
526
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 65

Wholesale lockbox
Yes. You can streamline your payment processing by directing payments accompanied by non- scannable remittance documents (mostly business-to-business) to a wholesale lockbox at Wells Fargo for processing.

By using our wholesale lockbox to process your payments, you may be able to accelerate collection of funds and reduce in-house processing expenses. You may also be able to meet early deposit deadlines and benefit from improved cash forecasting with intraday availability of funds.

How it works
The following workflow shows the wholesale lockbox process flow.

Our network
You can choose from several image-enabled sites strategically located across the United States. 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.

The following table shows the lockbox sites in our network.

Wholesale lockbox sites
Atlanta Los Angeles
Charlotte Minneapolis
Dallas Philadelphia
Denver Seattle
Site recommendation
Based on the information you provided, we recommend you use our Los Angeles lockbox site. 527
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 66

Post office pickup schedule
The following table lists the post office pickup schedule (in local time) for your recommended site.

Holiday schedules vary by location. During the implementation phase of this project, we will provide you with the holiday schedule for the location or locations you select.

Post office location Weekdays Saturday Sunday
Los Angeles
Main Postal Facility
AM
12:00, 2:00, 4:00,
6:00, 8:00, 11:00
PM
1:30, 3:30, 10:00
AM
12:00, 2:00, 4:00,
6:00, 8:00, 11:00
PM
10:00
AM
12:30, 2:00, 4:00,
6:00, 8:00, 11:00
PM
10:00
Deposit deadlines
The following table lists our deadlines for the Los Angeles site. At sites with more than one deadline, you can choose the time that best meets your internal balance reporting or transmission requirements.

We include payments received after your established deadline (including any payments processed during the weekend or on a holiday), in the following business day’s work.

Lockbox site Deposit times*
Los Angeles • 4:50 a.m., 10:00 a.m., 5:00 p.m., 7:00 p.m. *All times are local.

Reports
Lockbox reports help you track and manage your cash flow more effectively. You can view availability and detail reports online.

When you’re not near your computer, you can use your smartphone to access the availability report and view deposit totals for each of your accounts.

Image options
When you use our image service, you’ll have less paper to store and access to the information you need to research and apply payments without the hassle of storing paper documents. You can view images of all lockbox documents, including checks, remittance documents, correspondence, and envelopes. Online and transmission are available.

Online
Your images are available within two hours of your
deposit deadline. As a standard, we archive images for
seven years. However, we do offer shorter retention
periods (90 days, one year, or two years) to customers
who don’t have a business need to access images for
seven years.

Our online image service is the
quickest option to help resolve
exceptions and satisfy
customer needs.
528
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 67

You can search for transactions using various criteria (including keyed data) by entering either a single value or a range of values. Additionally, you can assign a payer name to a unique account number and routing transit number combination, which lets you search for payments from a particular payer.

Transmission file
We post a daily transmission file on our secure website that contains images of your lockbox checks and any corresponding documents. You can download the file from our website and archive the images on your internal system. You have the option of intraday or next-day file transmissions. • Intraday - A separate image file for each batch of work we process is available within two hours of your deposit cutoff in either a zip or a PDF file. • Next day - A consolidated zip file containing all of your images from the previous day is available by 4:00 a.m. Pacific Time the following business day.

Optional features
Accounts receivable transmission
To help eliminate errors associated with manual keyed entry, you can receive an electronic transmission of your remittance detail. You can use it to update your AR system, treasury workstation, or ERP platform automatically. Your file can include data from other sources, such as wire and ACH.

We generate transmissions to your specifications for frequency and format, including standard BAI V2 and EDI layouts. We offer customization for non-standard formats for an additional fee.

Multiple deposit processing
Using a single lockbox, you can collect payments efficiently and cost-effectively by using multiple deposit accounts. We sort your payments by location, business, or other criteria that you select, and prepare separate deposits for each of your accounts.

Credit card processing
If your customers provide credit card information, we’ll process their payments by keying the information into our credit card processing application. They can use any card with the Visa®, Mastercard®, American Express®, or Discover logo.

Exception processing
Using our online decision tool, you can submit additional processing information for payments that would normally be returned. We present images of each payment to you and give you the following options:
• Accept the payment and enter any additional processing information (such as invoice data required to balance a transaction or missing required keyed data) • Reject the payment and mail it to you
• Reject the payment and mail it back to the remitter’s name and address that you provide to us; we’ll include a City-specific letter template to detail the reason for rejection 529
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 68

Virtual lockbox
You can scan and send us images of checks, correspondence, and invoices you receive at your location. We can then process and deposit them like your other lockbox payments. We’ll include these items in the image and data transmission files we send you for uploading to your AR system.

We include all pricing information in the Appendix section of our response.

Electronic lockbox
Online bill payments provide a convenient, simple, and paperless way for your customers to pay you.

However, many bill payments initially submitted online can still end up as mailed paper checks by bill service providers. These check payments create exceptions and often have incomplete or inaccurate remittance details, which can result in processing delays for you.

With our E-Box service, you can increase your straight-through processing rate of receivables and minimize your staff’s time spent handling exceptions — so that you achieve your goal to simplify bill payments. Our E-Box service repairs exceptions and merges all your customers’ online bill payments into a consolidated electronic remittance file. You use the file to automatically update your AR system and apply credits to your customers’ accounts. Our service accepts payments from all major bill service providers and walk-in bill payment providers. • Convenient • Simple • Paperless
How it works
When you sign up, we notify the bill service providers in our network that you can receive payments through our E-Box service. The following graphic shows the flow of a bill payment through the various channels using our E-Box and Receivables Manager services.

The City receives a single ACH credit to your deposit account. 530
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 69

Automated payment validation
To improve the quality and standardization of the remittance file you receive, you can instruct us to use one or more validation routines to identify, filter, and repair invalid payments or other exceptions. We suspend payments that include errors or exceptions. You have the option to review the suspended payments online and decide what to do with them. You can also instruct us to reject and return payments that don’t meet your validation routines to the originator.

The following table provides descriptions of the validation routines the City can choose from.

Validation routine Description
Account mask Confirms that the inbound account number matches your billing account number structure
Check digit* Uses a mathematical equation to determine if an account number is valid Cross-reference database processing 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 customers enter and can make account number changes that may occur due to a merger, acquisition, or system change.)
Positive file processing Compares inbound account numbers to a file of valid account numbers you provide
Stop file processing Compares inbound account numbers to a file of unacceptable accounts you provide
* Applies to credit card billers.

Online payment management and research
Manage payments
With our E-Box service, you can perform the following
functions online:*
• View exception payments
• Initiate returns on exception and processed
payments
Dual control
For added security, a second
person can review and approve
all changes initiated by another
user.
• Update processed payments requiring account number changes for future processing • Make decisions about exception transactions, including repairing payments with invalid account numbers
• Update your cross-reference database with valid account numbers and generate NOCs to payment originators
* The functions you can perform depend on the features you select during implementation.

Research
The City can view and research processed payments and access information for reporting and trend analysis.
531
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 70

Payment history
You can locate transactions using the search criteria in the following table.

Account number Consumer name or account number
Amount Processed date
Biller ID Trace number
You can access all successfully processed payments for the previous 180 days. You can view and print full record-level data in HTML and PDF formats, and you can export data for manipulation and analysis in XLS and CSV formats.

Reporting
Our Return and Repair report provides a detailed, payment-level audit of all user activity performed during the past 180 calendar days. You can tailor it to show only payments that meet your search criteria.

You can view and print activity in HTML and PDF formats, or export in CSV and XML formats.

We include all pricing information in the Appendix section of our response.

11. State Activity/LAIF Transfers
The city transacts State of California Local Agency Investment Fund (LAIF) transfers on a regular basis and receives State electronic payments.
a. Please describe the LAIF transfer process. Are the transfers done by telephone, email, fax, wire transfer, etc.? How is the accuracy of transfers assured? The City can originate a direct wire transfer to and from the Local Agency Investment Fund (LAIF).

LAIF transfers are handled as follows:
• Funds transfer to LAIF — The City will contact the State of California LAIF office to advise of a funds transfer. A LAIF representative will provide a transfer confirmation number. The deadline is 10:00 a.m. Pacific Time. You will initiate the funds transfer electronically by wire. • Funds transfer from LAIF — Contact the State of California LAIF office to request a withdrawal. The deadline is 10:00 a.m. Pacific Time. The funds will be transferred into your Wells Fargo account by wire transfer the same day.
b. What is the charge per transfer to LAIF? From LAIF?
Each outgoing wire transfer will be charged $4.00 and assessed through your account analysis.

The funds will be transferred into your Wells Fargo account by wire transfer the same day and be available immediately provided that it’s received by Wells Fargo before the Federal Reserve closes. 532
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 71
c. Does the bank have an office in Sacramento that maintains a direct DDA banking relationship with the State Treasurer’s office and the State Controller’s office? Yes. Wells Fargo maintains a direct DDA banking relationship the State of California’s Controller and Treasurer.
d. Is the bank an approved State of California depository? Yes. Wells Fargo is an approved California State depository of public funds in compliance with Sections 53635.2 and 53649 of the California Government Code. e. What is the charge for the deposit of State electronic payments? State warrant? If the items are collected as an incoming ACH, these items should post as an electronic payments received. If the items are posted as an incoming wire, then an incoming wire fee will be charged.

We include all pricing information in the Appendix section of our response. f. What is the bank’s position on past issuance of IOU’s by State of CA? Does the bank accept IOU’s for deposits?
In years past, we obtained a temporary agreement with the State of California to accept IOU’s for a brief period of time. Should the need arise in the future, we would have to review the legal agreements presented to negotiate those items for deposit based on current laws and procedures.

12. Overdrafts
a. What are the fees and interest charges associated with overdrafts? How are these charges calculated?
We do not charge for daylight overdrafts, though we reserve the right to do so.

We charge for both overdrafts and the use of UCF. We change overdraft fees on a per item basis. (Today, the overdraft fee is $35 per item with a max of four fees charged per day.) For UCF, the standard interest rate is based on the prime lending rate +3%. The formula for our UCF fee uses that interest rate basis as the overdraft rate, applying this formula:
(average daily negative collected balance × overdraft rate × days in period) ÷ (360) = uncollected funds fee
We can offset these fees (overdraft and UCF) by the earnings credit allowance. b. Is there a fee per check or per occurrence when there is an overdraft? Wells Fargo charges per item, with a max of four fees per day. Should additional items be presented on the following business day, the four-item max will be charged per items presented. 533
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 72

c. Is there a daily cap on fees?
Wells Fargo will set overdraft fees on a per item basis. We do have a daily cap on overdraft fees with a maximum of four overdraft fees per account per day.

13. Describe the financial institution security procedures for its information reporting system, both for access and information protection.

Our online banking portal uses the following access and information protection security features.

Authentication
The system requires multiple sign-on identifiers, including:
• Company ID, user ID, and password
• Strong or two-factor authentication for all online payment and administration services using a PIN and token code
Internal access violations
We record operating system sign ins and access violations, and monitor system logs for exceptions and suspicious activity. The system will lock out a user account when there are invalid password attempts.* We investigate these activities and take appropriate actions, as necessary, to protect your banking information.

If an account becomes locked, the user must contact the City’s administrator or a representative in our CC4B Service Office to reissue and reset the password. * Our online banking portal suspends a user after five unsuccessful sign-on attempts.

Automatic signoff
We automatically sign users off from your online and mobile banking session after a period of inactivity. This security feature reduces the risk of others accessing information from an unattended computer or mobile device.

Access control
You determine who can access protected resources and which resources are available for access. We can set up entitlements for each user, or, using our online administration service, your administrators can create user IDs and assign privileges.

Dual custody
To reduce your fraud risk, we require dual custody (separate users to initiate and approve) to release online payment transactions and for administration actions related to transaction-based services.

Dual custody is an industry standard best practice that helps protect against fraud attempts that could originate inside or outside your organization. For maximum effectiveness, dual custody should involve two users on different computers or mobile devices. You can choose to add dual custody to other administration features such as user setup and password resets. 534
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 73

Encryption and browser requirements
We conduct user sign-ons and all session activities using 256-bit encryption. During sign-on or when using two-factor authentication, we mask passwords, PINs, and token codes for security reasons. Additionally, the system stores all passwords using one-way hashing. Our services only support browsers that adhere to our encryption standards.

Security audits and assessments
Wells Fargo Audit Services performs regular reviews of our online banking portal and issues findings and audit summaries. Our management and technical partners review each finding. If changes are necessary, management prioritizes and schedules them for implementation. Audit Services tracks and monitors findings and completed changes.

We use internal resources to perform penetration testing on our online banking portal and mobile service on a regular basis. In addition, we leverage external resources to perform penetration testing on a periodic basis. Management reviews the results and makes appropriate changes to strengthen our existing security controls.

Virus detection
Our security policies require that we deploy and maintain virus detection software on our servers, email gateways, desktops, laptops, and other devices.

14. Is system administration performed by the financial institution or the customer? What functions does the security administrator perform?
Your company administrator can perform a variety of functions through our online administration service, including:
• Creating, maintaining, and deleting user access, including password resets • Restricting user access to services and accounts and setting transaction dollar limits • Creating account or user lists to better organize your users and accounts — lists can be used throughout the administration service to easily select multiple accounts or users to administer
• Setting up multiple users with similar access controls at the same time • Establishing additional controls for specified transactions and functions that require review and approval by a one or more approvers before the request is executed* • Setting up forced dual controls for all tasks performed through the online administration service*
• Running management reports that show current user entitleme nts for a rolling 365 days of administration activity history
* We require dual custody for money movement transactions and changes to user access. 535
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 74

Audit features
We offer an online audit report that lists:
• Authorization activities performed by your administrators • Access assigned to each user
We also internally log and monitor customer events that occur on our online system. The service event logs provide information about your user activities, including sign-in, user profile updates, and transactional activity. The logs identify the user, date and time of event, and other information relevant to the activity performed.

15. Is an audit trail report available, showing all activity, by whom and when, for each system? Yes. We internally log and monitor events that the City initiates through our online banking portal and mobile banking service.

The City reports
Audit trail
We provide audit trail reporting for many of our online banking portal services. You can access these online audit reports that show authorization activity and user access. The following screenshot is a sample from our online wire initiation service showing creation and approval audit history.

536
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 75

Your treasury management sales consultant, Gurleen Pannu, will be happy to discuss additional audit reporting capabilities for your specific services.

Online administration reports
You can also retrieve online audit reports that show authorization activities performed by your company administrators and the entitlements assigned to each user. We’ve included sample reports in the following screen shots.

Administrator activity: Company preferences

User access: User profile activity

537
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 76

Our internal reports
We record information about user activities, including sign-on history, profile updates, and transactions made. Reports identify users, dates and times of events, and other details.

We do not typically share our internal reports with customers. However, if there is a need to view a report, we would evaluate the request on a case-by-case basis.

We use audit controls to log, monitor, and report the key activities of our online banking portal.

Audit logs provide transaction and activity records of events, including internal user activity related to customer accounts.

Our enterprise records management requirements determine our audit log retention periods. At a minimum, we retain logs for one year.

16. Describe the types of insurance and bonding carried.

Protection for our customers and business partners with respect to theft or misappropriation of their assets is provided by the financial strength, integrity and contractual obligations of Wells Fargo.

The Wells Fargo & Company Corporate Insurance programs include, but are not limited to, Professional Liability insurance (also known as Errors and Omissions policy), Financial Institutions Bond coverage, which includes Fidelity (also known as Employee Dishonesty) coverage, and Commercial General Liability, and Automobile Liability insurance.

If you select Wells Fargo as your preferred provider for treasury management services, we will provide Certificates of Insurance as required by contract.

Wells Fargo Treasury Management contracts for an annual SSAE 18 examination. Results are issued in an SOC 1 report.

We can provide a copy of our SOC 1 reports upon receipt of a signed non-disclosure agreement. If we are chosen as a finalist in the City’s selection process, we will obtain required signatures as needed.

Please refer to Tab B in the Appendix section of our response for our Information Security program letter.
538
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 77

18. If not already covered in the SSAE 16 report, describe the disaster recover plans for each proposed service for short- and long-term disaster and power failure recovery.

Business continuity and resiliency
Recent history shows us that having a solid business continuit y plan in place, no matter the cause of the disruption, can be critical to business success. Wells Fargo seeks to manage this risk in accordance with our Business Resiliency and Disaster Recovery Risk Management policy and business procedures to achieve business goals and comply with laws, rules, regulations, and regulatory guidance to protect our customers and ourselves.

Please refer to Tab C in the Appendix section of our response for our Business Continuity Plan Program letters.

We have formal teams dedicated to managing disruptions to our services. Our Enterprise Business Continuity Resiliency Planning office sets the standards for our organization. Each business, in conjunction with operational risk management partners, helps ensure preparedness and compliance at the organizational levels.

Standard elements of our business continuity and resiliency programs include:

Annual plan review, testing, and maintenance
Identification of alternate strategies and recovery procedures Identification of internal and external dependencies including regular review of third party service providers
Identification of potential risks and controls for mitigation Prioritization of business functions and technology
Procedures for communication with customers, suppliers, and essential staff Recovery of technology and data
General program elements for our enterprise
Testing recoverability
We update and test our recovery procedures regularly, with the frequency and timing varying by business function or application. We exercise essential business recovery procedures and systems at least annually.

Critical functions
After a disruption, we prioritize restoring and maintaining normal service levels for our critical functions.
539
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 78

Components of our recovery plans vary based on the potential business disruption, such as a loss of facility, loss of technology, or significant reduction to our staff or of third party providers. We identify the main areas most commonly affected and then provide our general approach to each.

Data and operation centers
We’ve dispersed our data and operation centers strategically across multiple locations to minimize potential disruption within a specific geographic region.

We engage our technology teams quickly when we detect a disruption at a primary data center. Our technology teams assess the situation and determine next steps based on the nature of the disruption. If we need to shift processing to an alternate data center, we can because we maintain redundant platforms for our business critical services. All alternate sites have sufficient capacity to maintain processing for an extended period. In most situations, we can restore service at a primary data center for critical services within 12 hours.*
If a disruption occurs at one of our primary operation centers, we use an identified backup site to take over day-to-day processing and support. We use our backup site until the primary site returns to normal conditions.
* This zero to 12 hour goal does not guarantee that certain events will not affect Wells Fargo systems or that we will achieve specific recovery times in the event of a disruption.

Third party providers
We use third-party service providers and contractors to support a variety of functions. We evaluate each of them prior to the execution of a contract for services, and beyond. Our evaluation uses a risk-based approach to assess providers as we review, select, and monitor their performance.

Our Vendor Management Program conducts service provider validation and joint testing of our essential providers. It includes an assessment of the service provider’s ability to meet our disaster recovery standards for service level agreements and recovery time objectives.

Program elements specific to treasury management
In addition to our enterprise program elements, we’ve incorporated the following elements into our business continuity resiliency plans for our treasury management services.

Communication
Notification methods to inform you of a service disruption include:
• Front-end messages from our CC4B Service Office advising the City about system issues when you contact us through our toll-free number
• System status alerts displayed on the homepage of our online banking portal
The method we use to communicate with you depends on the nature of a disruption.

If a disruption prevents you from accessing your information, your relationship team can help. They have access to bank systems and can provide the account information, balances, and other data you need to continue operating.

Client service officers are on call
24 hours a day, seven days a
week, ready to respond to a
disruption.
540
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 79

Backup strategies for online channels
Online banking portal
If the online banking portal experiences a disruption, we use our backup environment. The backup environment is a duplicate of our online banking portal and is in a separate location from the primary site.

Mobile service
We have a backup environment for our mobile platform* in the event of a system outage. Our mobile service and online banking portal channels use different web addresses and user interfaces.

This arrangement means that, depending on the nature and root cause of an outage, users may be able to access services through the mobile service if our online banking portal ex periences a disruption.

Additionally, our mobile token feature allows users to use their mobile devices in place of physical tokens to access secure services. This access can be helpful in instances when a disaster event separates users from their physical tokens.
* Download the latest version of the CEO Mobile app available for your device from the Apple App Store or Google Play store.

Backup strategies for core services
ACH payments
When we invoke our ACH recovery plan, processing diverts to a backup site. We can recover with minimal down time because we run ACH production simultaneously at our primary data center and at our backup sites.*
The diverse geographic locations of our processing centers help to minimize potential disruption.

However, the severity or nature of a specific event may require use of manual backup procedures.

As a contingency step, we recommend that you establish an alternate method of initiating payments, such as our online ACH services,† to upload files or manually key in payment information. * Running simultaneous ACH production does not guaranty that certain events will not affect Wells Fargo systems or that we will achieve specific recovery times in the event of a disruption.
† You will need to enroll in our online ACH service separately from the direct origination service and plan for implementation prior to an emergency.

Wire transfer
When we invoke our business continuity resiliency plan, processing diverts to a backup site. Each backup site has the ability to accept transferred wire processing workloads, including wires initiated by telephone.

We maintain redundant connections to two different Federal Reserve Banks, which minimizes potential disruption within a geographic region. We conduct comprehensive joint testing with the Federal Reserve Bank on a quarterly basis.

You can also enroll in a backup wire transfer channel. For example, you can choose from telephone- initiated wires or our mobile service to access select functions of our wire transfer service.* * You will need to enroll in backup wire services separately and plan for implementation prior to an emergency. 541
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 80

Account reconciliation plans and positive pay
If you're unable to access our online banking portal or send files using data transmission because of a business interruption, you can key small-volume issues, cancellations, and voids through our mobile service.*
* You do not need to enroll in the mobile service in advance of a disruption. Download the latest version of the CEO Mobile app available for your device from the Apple App Store or Google Play store.

Transmission service
We have a backup environment for our browser-based transmissions service. It includes an alternate website in case our online banking portal is unavailable. As a best practice, we recommend that customers leverage URLs if using automation scripts and not IP addresses, which are subject to change.

Commercial card
Our business continuity resiliency plan includes contingency planning and routine data backups. We are on call 24 hours a day, seven days a week during incident response. In most situations, restoration of commercial card processing can occur within 12 to 24 hours, and restoration of our expense management service can occur within four hours of disaster declaration.* * The forgoing does not constitute a representation or warranty that certain events will not affect Wells Fargo systems or that Wells Fargo will achieve specific recovery times in the event of a disruption.

ACH Fraud Filter
Business disruptions can create opportunities for fraud. It’s important that during a disruption you can continue to view details and make decisions on your ACH transactions. You can access our ACH Fraud Filter service online or through our mobile service. Alternatively, you can obtain ACH information by calling our CC4B Service Office.

Cash vault
If a primary cash vault site is unable to accept, deliver, or process cash, we work through a backup site. We disperse our cash vault sites strategically so that we minimize potential disruption within a specific geographic region. Transportation issues and the additional distance between you and the backup site may cause delay of the cash delivery during a disaster or emergency. If such an event occurs, we take reasonable action to resume our normal cash delivery service levels as soon as possible, given the available transportation options.

Remote deposit
We automatically store checks that you capture through our remote deposit service on our servers.

If a power outage or other disruption prevents you from completing a deposit, it remains in a pending deposit status. It remains in this status until you can access the system again. You can view a summary of all your deposits that require review prior to completion. As a backup, you can make deposits using a mobile device with a camera through our CEO Mobile application or by taking your deposit to a Wells Fargo branch.
542
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 81

Lockbox
If we invoke our business continuity resiliency plan, lockbox processing at the affected site diverts to a backup site, as needed. The specific location of the backup site will depend on the impact of the disruption. Alternative processing may include diverting mail delivery from the affected primary site to the backup site.* In such a case, after we receive mail at the backup site, we follow customer- specific instructions to process checks, capture AR data, and image checks and invoices. We notify customers and couriers (as appropriate) about their impacted processing site or procedures. * Depending on the severity of a disaster, delayed mail delivery may affect processing time, which could impact normal service level agreements.

Image cash letter
Image cash letter processing moves between two main locations. We mirror and back up all image cash letter files in a separate location. Because we back up and store your account data, we can provide it to you in an emergency.

If you’re unable to make deposits through our image cash letter service, as an alternative, you can make deposits at any Wells Fargo branch.

Keeping current
To keep current with changes in the business continuity resiliency and disaster recovery industry, we’re active in forums that discuss and share best practices.

The forums include:
• Disaster
Recovery
Institute
International
• Financial
Industry
Regulatory
Authority
• Global Financial
Markets
Association
• The Institute of
International
Finance

19. Describe any additional security measures available to the City to minimize the risk of unauthorized transactions in its accounts.

Please refer to the previous response to question 13.

D. Implementation/conversion

1. Provide a conversion plan for transitioning each of the proposed services to your financial institution.

Our experienced team will meet with the City. Together, we will discuss the process, set expectations, and document any potential issues that the team may encounter during the transition.

In addition, we will conduct follow-up meetings as necessary.

We will assign an implementation consultant to the City and coordinate an implementation kickoff meeting. Your implementation consultant acts as your single point of contact throughout the implementation and help determine timelines and responsibilities. 543
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 82

This regular communication will help develop the relationship that’s required to achieve a smooth transition to your new banking or treasury management solutions.

Your implementation consultant collaborates with you and your staff to develop the schedule and document the process we will follow. A sample schedule for our product implementation follows.

While the sample schedule shows many crucial tasks, it is not comprehensive. After we meet with you to discuss your needs, we will customize it.

The implementation lead time represents the length of time it takes to make the service available to the City once:
• Your relationship team completes all required know your customer due diligence processes* • Your implementation consultant gathers all necessary information from you and our internal sources needed to implement your services
• The City completes the required agreements and returns them to Wells Fargo * Due diligence processes can take up to 30 days to complete.

Sample implementation schedule
Online banking portal and information reporting
Approximate time frame* Wells Fargo actions Your actions 9-day lead time to establish services
in online banking portal
7-day lead time to establish
information reporting service
• Review and confirm services
• Coordinate training
• Set up online administration for
reports, and related services
• Review and confirm services
• Attend training
• Review and sign forms
* The implementation time can be shorter (or longer), depending on the products being implemented.

Account opening
Approximate time frame* Wells Fargo actions Your actions 1-day lead time • Identify all accounts to be
opened
• Provide account numbers
• Provide MICR specifications
• Order deposit tickets, check
stock, and other supplies
• Validate setup
• Identify all accounts to be
opened
• Order deposit tickets, check
stock, and other supplies

544
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 83

ACH direct transmission
Approximate time frame* Wells Fargo actions Your actions 13-day lead time* • Review and confirm services
• Provide file layout specifications
• Determine transmission
method and issue IDs
• Issue transmission ID
• Review test file format
• Perform transmission testing
(additional time may be needed
for outbound transmission
testing, such as for a returned
item)
• Move transmission IDs into
production
• Validate and finalize setup
• Review and confirm services
• Determine transmission
method and issue IDs
• Create test file
• Perform transmission testing
(additional time may be needed
for outbound transmission
testing, such as for a returned
item)
* The implementation time can be shorter (or longer), depending on transmission testing.

ARP and Positive Pay
Approximate time frame* Wells Fargo actions Your actions 36-day lead time* • Review and confirm services
• Coordinate training
• Provide file layout specifications
• Issue transmission ID
• Perform transmission testing
• Move transmission ID into
production
• Validate and finalize setup
• Activate Positive Pay
• Review and confirm services
• Complete training
• Perform transmission testing
* The implementation time can be shorter (or longer), depending on transmission testing. Also, adding ARP or Positive Pay to an existing account is cycle dependent and can only be done at the beginning of a statement cycle.

545
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 84

Payee Validation
Approximate time frame* Wells Fargo actions Your actions 30-day lead time* • Review and confirm services
• Share manual review fee with
the City†
• Share key implementation
requirements, guidelines, and
video tour
• Request customer limits check
stock order
• Confirm checks are ready to
monitor
• Set up for production
• Begin monitoring test checks
• Review check stock and monitor
issue file for three weeks
• Address any issue file
corrections
• If checks pass three weeks of
testing, there is no further
follow-up
• Validate and finalize setup
• Review and confirm services
• Acknowledge understanding of
requirements
• Request customer limits check
stock order
• Confirm checks are ready to
monitor
• Begin monitoring test checks
• Review check stock and monitor
issue file for three weeks
• Address any issue file
corrections
• If checks pass three weeks of
testing, there is no further
follow-up
• If checks fail testing, you have
60 days to fix issues†
* Dependent upon results of check stock monitoring.
† If checks still fail, the manual review fee will be assessed.

ACH Fraud Filter
Approximate time frame* Wells Fargo actions Your actions 9-day lead time* • Review and confirm services
• Coordinate training
• Set up service on ACH platform
• Set up optional 30-day review
(before considering stop option)
• Implement stop option if
needed
• Review and confirm services
• Complete training
• Identify default decisions and
preauthorizations
* This service becomes active after users complete training. The City’s responsiveness will affect the implementation lead time; delays in completing training can increase the implementation time frame.

546
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 85

Bank Administration Institute (BAI) transmissions
Approximate time frame* Wells Fargo actions Your actions 27-day lead time • Review and confirm services
• Determine transmission
method
• Issue transmission ID
• Perform transmission testing
• Move transmission ID into
production
• Validate and finalize setup
• Review and confirm services
• Develop capacity to receive and
parse BAI file and data
• Perform transmission testing
.

Remote deposit
Approximate time frame* Wells Fargo actions Your actions 13-day lead time • Review and confirm services
• Order supplies
• Complete and validate setup
• Send fulfillment package
• Review and confirm services

Remote deposit with detail reporting
Approximate time frame* Wells Fargo actions Your actions 21-day lead time • Review and confirm services
• Provide transmission
specifications
• Set up transmission and test
connectivity
• Issue transmission ID
• Provide test results
• Move transmission ID into
production
• Monitor live files
• Validate setup
• Review and confirm services
• Review and approve forms
• Send test file
* A Deposit Detail Report can be set up for both our remote deposit and image cash letter services. The timeframe for either requires at least a 21-day lead time to establish, create, and test IDs for transmission.

547
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 86

Image File Import (non-lockbox)
Approximate time frame* Wells Fargo actions Your actions 20-day lead time* • Review and confirm services
• Provide reference guide
• Determine transmission
method
• Issue transmission ID
• Send live files
• Validate and finalize setup
• Review and confirm services
• Download test file and confirm
connectivity and format
* The implementation time can be shorter (or longer), depending on transmission method and testing.

Returned Items
Approximate time frame* Wells Fargo actions Your actions 11-day lead time • Review and confirm services
• Issue transmission IDs
• Implement instructions
• Validate setup
• Review and confirm services
• Send test file
* The implementation time can be shorter (or longer), depending on transmission testing.

Sweep accounts
Approximate time frame* Wells Fargo actions Your actions 7-day lead time • Review and confirm services
• Implement sweep
• Establish sweep statement
access
• Validate setup
• Review and confirm services

548
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 87

WellsImage® Media
Approximate time frame* Wells Fargo actions Your actions 13-day lead time* • Review and confirm services
• Provide MICR check
specifications
• Perform check testing (MICR
and image)
• Finalize setup
• Review and confirm services
• Provide test checks
* The implementation time can be shorter (or longer) depending on check testing. It is also cycle dependent and can only be added at the beginning of a statement cycle if adding WellsImage Media to an existing account.

Wholesale Lockbox
Approximate time frame Wells Fargo actions Your actions 10-day lead time • Review and confirm services
• Perform invoice testing
• Provide lockbox number and
live date
• Finalize setup
• Coordinate image training
• Review and confirm services
• Provide sample invoices (for
image)
• Complete image training

Wholesale Lockbox with transmission
Approximate time frame Wells Fargo actions Your actions 30 to 40-day lead time • Review and confirm services
• Provide file layout
specifications
• Perform invoice testing
• Issue transmission ID
• Perform transmission testing
• Provide lockbox number and
live date
• Move transmission ID into
production
• Finalize setup
• Review and confirm services
• Provide sample invoices (for
image)
• Perform transmission testing
* The implementation time can be shorter (or longer), depending on transmission testing. Lockbox can begin receiving deposits 10 business days after the lockbox number is assigned; however, we cannot provide remittance details electronically until transmission testing is complete.

549
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 88

Zero balance account (ZBA)
Approximate time frame* Wells Fargo actions Your actions 7-day lead time • Review and confirm services
• Implement ZBA
• Validate setup
• Review and confirm services

Consolidated receivables service
Approximate time frame* Wells Fargo actions Your actions 14- to 42-day lead time* • Complete setup forms
• Begin setup of all treasury
management-related products
• Finalize setup
• Test transmission
• Move services into production
• Coordinate training
• Complete training
* The implementation time can be shorter (or longer), depending on transmission testing

Consolidated payables service
Approximate time frame* Wells Fargo actions Your actions 48-day lead time • Review and confirm services
• Determine use of manual or
automation process and
method of transmission
• Provide user guides and
coordinate training, if using
Payment Manager Online
(PMOL)
• Develop statement of work
• Approve and sign statement of
work
• Validate SIT/UAT test files
• Add any additional accounts
• Move services into production
• Transmit and monitor
production files
• Verify and finalize setup
• Review and confirm services
• Determine use of manual or
automation process and
method of transmission
• Establish automation
connection
• Validate SIT/UAT test files
• Add any additional accounts
• Transmit and monitor
production files
* The times for all action items can vary depending on your choice of a standard or custom format and the availability of your internal resources for development and testing.

550
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 89

Wires (online initiation)
Approximate time frame* Wells Fargo actions Your actions 4-day lead time • Review and confirm services
• Implement and validate services
• Coordinate training
• Review and confirm services
• Complete training
Commercial card implementation
The following schedule includes a description of each implementation phase. It includes approximate timeframes for completion and actions required of both parties. Factors that can affect the estimated time needed to implement our services include the City’s requirements, preferred file format (standard versus custom), technical capabilities and testing requirements.

Pre-implementation
Prior to your commercial card program implementation, your Wells Fargo relationship team gathers information to satisfy credit, legal, and regulatory requirements for the service. We also work with you to collect signatures for the required agreements. The lead time for this information gathering is typically one to three weeks.

During implementation
During implementation, your commercial card program implementation consultant gathers additional details for your program and cardholders, coordinates any necessary technical resources, and develops a training plan for your program administrators.

Once your setup is complete, your commercial card payables account manager works with you to develop your customized program rollout and training for cardholders and approvers.

Sample implementation schedule
Implementation begins once we complete all pre-implementation activities.

Pre-implementation
Approximate time frame Wells Fargo actions Your actions 1 to 3 weeks • Finalize services and pricing
• Complete any credit or
regulatory requirements
• Complete necessary
commercial card contracts
• Finalize services and pricing
• Complete any credit or
regulatory requirements
• Gather additional commercial
card details

551
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 90

Implementation
Approximate time frame Wells Fargo actions Your actions 3 to 4 weeks lead time standard
4 to 6 weeks with transmission
• Gather additional commercial
card details
• Provide GL interface file
format detail
• Train administrators and
provide cardholder training
material
• Rollout cardholder training and
card distribution
• Gather additional commercial
card details
• Provide cardholder list and
profile details
• Complete merchant category
code (MCC) template
worksheet
• Complete GL mapping
spreadsheet
• Provide GL interface file
format detail
• Complete internal cardholder
agreement and application
• Rollout cardholder training and
card distribution

Virtual card payments
Completion of a new standard implementation of our Virtual Card Payments and consolidated payables services can take four to six weeks. Factors that can affect the estimated time needed to implement our services include:
• The City’s requirements
• Preferred file format (standard versus custom)
• Technical capabilities
• Testing requirements
Sample implementation schedule
The following schedule includes a description of each implementation phase. It includes approximate timeframes for completion and actions required of both parties. 552
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 91

Pre-implementation*
Approximate time frame Wells Fargo actions Your actions 1 to 3 weeks • Provide standard file format
specifications
• If you will use a custom file
format:
• Provide you with a data matrix
of required fields
• Analyze and approve your file
specification format
• Provide template for your
suppliers
• Segment and profile suppliers
for enrollment
• Provide signature card and
card agreements
• Reserve account numbers
• Complete credit approval
• Assign project manager(s)
• Review Wells Fargo standard file
and document format
specifications
• Self-validate that input file meets
standards using our file validation
tool
• If you will use a custom file
format:
• Return completed data
matrix
• Produce file
specification and sample
file
• Return supplier list
• Update ERP system to take new
payment type
• Sign and return completed
documents
* All pre-implementation actions run concurrently.

Implementation kick off and Business Requirements Document (BRD)* Approximate time frame Wells Fargo actions Your actions 1 to 3 weeks • Provide standard file format
specifications
• If you will use a custom file
format:
• Provide you with a data
matrix of required fields
• Analyze and approve
your file specification
format
• Provide template for your
suppliers
• Segment and profile suppliers
for enrollment
• Provide signature card and
card agreements
• Reserve account numbers
• Complete credit approval
• Assign project manager(s)
• Review and approve BRD
• Review and approve the
supplier enrollment strategy
• Return signed agreements
* All implementation actions run concurrently.
553
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 92

Development*
Approximate time frame Wells Fargo actions Your actions 2 to 4 weeks • Establish services
• Provide training for our
consolidated payables and
online services
• Contact targeted suppliers and
provide a weekly enrollment
report
• Complete training
• Update ERP or AP system
weekly, to reflect changes in
supplier enrollment
• Confirm all setups and test
specifications
*All development actions run concurrently.
.

User acceptance testing*
Approximate time frame Wells Fargo actions Your actions 2 weeks • Conduct connectivity testing
and validation. We also make
file update recommendations
and repeat testing until all
issues are resolved
• Produce system-generated file
and receive test files with
acknowledgments and
confirmations
* All user acceptance-testing actions run concurrently.

Go live
Approximate time frame Wells Fargo actions Your actions • Coordinate any additional
training needed
• Move your services to a live
environment with your
approval
• Monitor the first live file that
you send to us
• Introduce you to our customer
service team, CC4B Service
Office
• Complete any additional
training
• Modify transmission scripts to
send the first live file
Merchant services implementation
To successfully implement your merchant services, several important tasks need to take place in a timely manner. In the following paragraphs, we provide an overview of the steps and responsibilities involved with implementing your merchant services solution. We will create a customized plan and share it with you during the implementation process.
554
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 93

Wells Fargo steps and responsibilities
Pre-implementation phase
During pre-implementation discussions with you, we will determine which merchant processing solutions will best meet your needs. Additionally, we will work with you to finalize your solution and requirements, complete and sign any required documentation, and gather additional details.

Implementation phase
We will assign a merchant services implementation consultant who will guide you through the implementation process. He or she will be your main contact throughout the implementation process.

Your merchant services implementation consultant will provide an overview of the implementation experience, gather additional details review the Statement of Work (if applicable), and provide additional resources and support for your internal technical setup, including issue resolution.

Merchant account and product setup
We will build and configure your merchant processing solution to meet your needs.

Testing
As your implementation progresses, you will submit test transactions to help ensure a successful setup.

Training
Your merchant services implementation coordinator will provide you with training, so you will be ready to use your new merchant solution.

Start date and monitoring
You and your merchant services implementation consultant will coordinate a go -live date for your new services. We will monitor your account for the first 30 days to help ensure transactions are processing correctly. Upon receipt of your first monthly merchant account statement, your implementation manager will conduct a statement review and introduce you to your ongoing support team.

The City’s steps and responsibilities
One of the ways to help ensure we meet your merchant services needs is through a customized implementation process and timeline. We build this based on information you provide. We will depend on you before and during the implementation process to do the following:
• Provide additional information that may be needed to complet e the implementation as requested
• Help ensure your technical and financial resources are available and prepared to participate as needed
• Be prepared to discuss your reporting and reconciliation requirements • Partner with your implementation consultant to coordinate your setup, training, test transactions, and go-live date
555
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 94

Timeframes
Implementation timeframes for our merchant services solutions vary based on the type of processing you require and the size and scope of your implementation. In the following tab le we list general implementation timeframes.* Once we establish your specific needs, we will present you with a mutually agreed upon timeframe for implementation.

Service Time to implement*
Terminal 1 – 20
Terminal 21+
• 2 – 4 weeks
• 4 – 8 weeks
Clover Go • 4 – 6 weeks
Clover POS 1 – 20
Clover POS 21+
• 2 – 4 weeks
• 4 – 8 weeks
Decision Manager • 2 – 4 weeks
Direct Connect • 8 – 10 weeks
FD gift card • 12 – 14 weeks
Independent software vendor (ISV) • 4 weeks
Wells Fargo Payment Gateway® API integration • 8 – 12 weeks Wells Fargo Payment Gateway Secure acceptance • 4 – 8 weeks Wells Fargo Payment Gateway Virtual terminal • 2 – 4 weeks *Actual timeframe of implementing may vary by individual merchant or vendor.

2. Who will be responsible for coordinating the transition for each of the proposed services? If a conversion team is used, how will the City’s account be transitioned to the ongoing client service team?
Your assigned implementation consultant will act as your single point of contact throughout the implementation and help determine timelines and responsibilities. This regular communication will help develop the partnership that’s required to achieve a smooth transition to your new banking and treasury management solutions.

After your implementation is complete, you can call or email our CC4B Service Office who can help you and your staff with questions about your new services. CC4B Service Office representatives are available Monday through Friday from 4:00 a.m. to 7:00 p.m. Pacific Time and Saturday from 6:00 a.m. to 12:30 p.m. Pacific Time.

3. Indicate the financial institution’s plans for initial and ongoing educating and training City employees in the use of your systems?
During implementation, we will work with you to determine your training needs. Based on your needs, we can create a customized plan that consists of a variety of solutions. In the following paragraphs, we describe the training options available to you. 556
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 95

Online learning resources
Training for services provided through our online banking portal is available to the City during all phases of your implementation. You will also have access to these tools on an ongoing basis once implementation is completed. Training includes on-demand modules and a variety of self-paced learning tools.

On-demand modules
We provide on-demand training modules that are available through our online banking portal 24 hours a day, seven days a week. This approach offers greater flexibility so that your users can train when it is most convenient for them.

Self-paced learning tools
If you prefer to learn at your own pace, we offer the following resources:
• User guides — provide an overview of your services, along with detailed information about your services
• Quick reference guides — offer you at-a-glance information about specific tasks related to your services
• Online demo tool — allows you to become familiar with and practice navigating our online banking portal
Training with your implementation consultant
Your implementation consultant can provide additional training options, as needed, and will supplement online learning solutions so you receive full training support.

Post-implementation training
After your implementation is complete, you can call or email our CC4B Service Office who can help you and your staff with questions about your new banking services. CC4B Service Office representatives are available Monday through Friday from 4:00 a.m. to 7:00 p.m. Pacific Time and Saturday from 6:00 a.m. to 12:30 p.m. Pacific Time.

The CC4B Service Office has a centralized structure with a presence in all time zones. It’s our goal to answer your call within 30 seconds; we resolve most questions on the first call.* We hold the same high standards across our organization; all client service officers follow the same policies and procedures.

Our Treasury Management Client Delivery teams, along with other customer support teams, are the recipients of many prestigious awards and accolades judged by industry professionals. *Automatic Virtual Contact Center (VCC) system calculation based on total queue (wait time for both answered and abandoned calls), divided by calls answered.

4. Will the City be allotted a fixed number of hours and training? No. Training hours are not counted. Your assigned implementation consultant will ensure that the City is comfortable with using services before transitioning support to our CC4B Service Office. 557
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 96

E. New services and ideas

1. Describe any new services or ideas that will enhance the City’s utilization of financial institution services described.

We put our customers at the center of every decision we make. We keep these key points in mind as we enhance our services:
• Focus on the customer
• Stay current with technology
• Keep things simple
• Make services easy to implement
• Help customers keep pace globally
Through ongoing conversations, we hear what customers want from their treasury services — and how they want to use and access them.

Sweep accounts
Sweep accounts provide you with an automated solution for optimizing funds and earning interest on balances invested overnight. Because investments are either overnight or short-term, the City has daily access to your money.

We also offer a credit sweep service that allows you to use bank account balances to pay down a line of credit. You can use the line of credit to fund a bank account that has fallen below a target balance amount. You can also choose to tie an investment sweep to the credit sweep account structure.

Once you determine a target amount (which you can set to zero), we sweep excess collected balances over the target amount from your checking account to an investment. Alternately, we sweep excess collected balances over the target amount to pay down a line of credit, depending on your cash flow needs.

Benefits
Automated investment of funds By sweeping automatically each night, our service eliminates the need for costly and time-consuming manual funds movement to and from investment accounts.

Accuracy of funds transfer Sweep transfers occur after all the day’s debits and credits post to your account. Transferring funds after debits and credits post helps ensure that the sweep won’t accidently overdraw your account.

Consolidated reporting You receive a monthly statement that includes information on your balances and the interest or dividends paid on your investment. Our confirmations provide you with sweep transaction activity and daily rates. You can monitor your sweep activity online using our information reporting service. We can also deliver your statements and notifications electronically. 558
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 97

Money Market Mutual Fund Sweep
Our Money Market Mutual Fund* automatically sweeps excess collected balances into one of our Allspring Money Market Mutual Funds:
• Government Money Market Fund
• Treasury Plus Money Market Fund
* Not FDIC insured, no bank guarantee, and may lose value.

Because funds stay invested until you need them, you can generate earnings without sacrificing access to your cash.

If your checking account balance is above your target balance at the end of the day, we automatically sweep the excess balance from your account into an FDIC-insured omnibus account* at the bank. At the beginning of the next business day, we transfer the funds to the money market mutual fund custodian. The custodian invests funds in a non-FDIC insured, non-bank guaranteed money market mutual fund.†
* Funds transferred to the omnibus account are eligible for FDIC insurance up to the allowable limit. Additionally, governmen t deposits remain collateralized in accordance with state or federal law. We hold funds in the City’s name until released for investment the fo llowing business day.
† This statement is just a summary. For complete information, please see the Wells Fargo Stagecoach Sweep Service Description and the current prospectus for the Allspring Funds ALLSPRING FUNDS MANAGEMENT, LLC, A WHOLLY OWNED SUBSIDIARY OF ALLSPRING GLOBAL INVESTMENTS HOLDINGS, LLC (“ALLSPRING GLOBAL”), PROVIDES INVESTMENT ADVISORY AND ADMINISTRATIVE SERVICES FOR THE ALLSPRING FUNDS. OTHER SUBSIDIARIES OF ALLSPRING GLOBAL PROVIDE SUB-ADVISORY AND OTHER SERVICES FOR THE FUNDS. THE FUNDS ARE DISTRIBUTED BY ALLSPRING FUNDS DISTRIBUTOR, LLC, MEMBER FINRA/SIPC, A SUBSIDIARY OF ALLSPRING GLOBAL. Your investment in a money market mutual fund will be pooled with funds belonging to other investors in an omnibus investment account in the name of Wells Fargo as agent on behalf of all its customers invested in the money market mutual fund. An investment in a money market mutual fund is not insured by the FDIC or any other government agency.

Although the mutual funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by i nvesting in a money market mutual fund. In addition, mutual funds are not guaranteed by Wells Fargo and may lose value. For more information regarding the money market mutual fund investment sweep option, obtain a current prospectus for the money market mutual fund by visiting allspringglobal.com, by calling 1-800-260-5969, or by contacting your Wells Fargo relationship manager. Consider the investment objectives, risks, charges, and expenses of the investment carefully before investing. This information can be fou nd in a current prospectus.
559
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 98

Rate report
Money Market Fund Rate Report - Allspring Global Investments

Remote cash capture (smart safe)
The remote cash capture process through our SafeVantage service provides daily provisional credits to your bank accounts. The smart safe holds your deposit until your armored courier picks it up. The service can help the City accelerate cash flow by one to two days.

The deposit procedures increase employee efficiency and productivity, improve deposit accuracy, and improve employee safety.

How it works
To implement our remote cash capture solution, the City will choose an armored courier (Brinks, Garda, or Loomis) to install bill validating and counterfeit detecting safes in your locations. Your employees will simply insert currency into the bill validators. The safe counts the cash, examines the bills, and rejects any bills suspected of being counterfeit. It also tracks deposits by employee PIN.

The smart safe prepares your deposits and then reports them to Wells Fargo. You receive provisional credit for the cash in the safe before it physically reaches the bank.

The safe holds your cash until your armored courier picks it up for delivery to the courier’s cash vault.

The courier also brings the coin and currency you ordered to your safe.* Depending on your safe’s capacity and cash volume, you may be able to reduce the number of courier pick-ups that you need per week.
* Smart safes do not dispense coin or currency.
560
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 99

In addition to currency deposits, the remote cash capture safe handles:
• Manual deposits — used for unfit and rejected bills as well as occasional checks or travelers’ checks
• Change order deposits — used to allocate a deposit to offset the debit charge for a change order made, which simplifies your reconciliation process Reporting
You can access transaction information either directly from the safe or through the armored courier’s online portal.

You can program your safe to print deposit reports in amounts by employee, shift, and day. Reports identify each type of deposit — currency and manual — by a different description on your reporting services, which helps simplify reconciliation.

Deposit cutoff times
The City receives provisional credit for check and cash deposits that you make in the safe’s manual drop slot. The service level determines the (local) cutoff time, as noted in the following table.

Service level Cutoff time (local
time)
Provisional credit received*
Standard 4:00 a.m. Next business day at end of day
Premium intraday† 4:00 a.m. Next business day by 8:00 a.m. * At implementation, we can discuss questions you may have about receipt of provisional credit. † Premium intraday is available to customers who contract with Loomis. Additional fees apply.

Advantages
Our remote cash capture solution offers many potential benefits to the City.

Increased staff efficiency
Because the safe counts cash, your employees can focus on customer and business needs. They’ll spend less time handling cash, preparing deposits, and making trips to the bank.

Improved safety and fraud prevention
Criminals may target operations where cash is unsecured. Remote cash capture:
• Reduces the risk of losses for cash in transit
• Reduces the risk of fraud because a point-of-sale system tracks funds — the totals shown on the system should equal the amount deposited
• Provides an audit trail with the reporting of deposit data by location and employee Expedited credit
You receive provisional credit and faster access to working capital without being dependent upon a daily armored courier pickup.
561
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 100

Easy reconciliation
All transactions flow through our regular information reporting channels, including direct BAI file transfer and our online reporting service. Several reports provide detailed information about your deposits and your coin and currency orders.

Lower transportation and supply costs
Because we credit deposits to your account through an electronic data transmission from the safe, the City can reduce the number of armored car pickups and trips to the bank. Our remote cash capture service also reduces your need for deposit bags and tickets.

Flexibility
You can choose from a variety of safe models to meet the size requirements of your locations and suit your business processes.

Wells Fargo Merchant Services
The City wants to offer your consumers the latest, most efficient payment methods in a cost - effective manner. To achieve your goals, you need to work with an electronic payments provider that understands your business model.

Serving 105,000 customers in the U.S., Wells Fargo Merchant Services has experience working with organizations of all sizes in a variety of sectors. As of January 2022, we supported 9.3 billion annual credit and debit transactions and $738 billion in total sales volume.* We’re the second largest eCommerce (card-not-present) merchant acquirer in the country.† A number of prominent fintech companies choose to process transactions with us.*
* Information based on internal reporting.
† The Nilson Report, March 2022.

Industries and sectors
Government Restaurants Technology and telecoms
Higher education Hospitality Media
Healthcare Business-to-business Energy and utilities
Nonprofit Payment facilitators Commercial real estate
Retail Financial services

Our team draws on this depth and breadth of experience to support you with strategies designed to help you control cost, manage risk, and offer consumers convenient payment options. 562
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 101

Manage working capital
Manage cash flow effectively by accessing your funds faster. You can receive funds as soon as the next business day to your Wells Fargo commercial account.*
* When depositing into a Wells Fargo commercial account. Please refer to the Merchant Services Terms and Conditions and Operating Rules for additional information.

You may settle your Merchant Services funds to an account at the financial institution of your preference. When you use a Wel ls Fargo account for settlement or other Merchant Services purposes, you must use a Wells Fargo business deposit account. We settle by ACH to other institutions, and projected funding may vary. The actual time could be longer than two days, depending on the financial institution’s status with the Federal Reserve.

Deposit products offered by Wells Fargo Bank, N.A. Member FDIC.

Merchant Services are provided by Wells Fargo Merchant Services L.L.C. and Wells Fargo Bank, N.A. Merchant Services are not d eposit products. Wells Fargo Merchant Services L.L.C. does not offer deposit products, and its services are not guaranteed or insured by the FDIC or any other governmental agency. Merchant Services are subject to application, credit review of the business and its ow ners, and approval.

Help control cost
Card processing costs are complex and impacted by many variables. Interchange can be affected by merchant category codes (MCCs), file transmission times, availability of transaction data, and transaction security. A payment environment that includes inefficiencies, such as redundant systems and outdated solutions, can also impact overall costs. We can help you manage costs by suggesting processes you can implement to help optimize interchange clearing and streamline your payment environment.

Identify ways to help reduce risk
Meeting Payment Card Industry Data Security Standard (PCI DSS) requirements can be complex and costly. Our teams work to understand your PCI scope and educate you about steps you can take to achieve and maintain PCI compliance. To help you transact securely, our solutions support security protocols, such as encryption and tokenization.

Anticipate consumer needs
Consumer payment options continue to multiply; we can help you understand these changes and provide guidance to help make effective use of solution technology. Whether the City requires online or in-person payments, we can support you with payment gateways, electronic bill presentment and payment solutions, point-of-sale and mobile technologies, and fraud management tools.*
* Additional fees apply for these services.

If you choose to use your own or a third-party solution, we can typically support you with core processing. Our processor’s system is compatible with thousands of ISVs (independent software vendors). The majority of third-party gateways and point-of-sale systems are certified to the processing platforms we use.*
* Your eReceivables consultant, Todd Reed, can provide additional information.

To help you reconcile and track transactions, we also offer detailed reporting and convenient dispute management tools, at no additional cost.

Funding as soon as the
next business day*
563
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 102

Get support
Our customer service model is designed to provide the City with consistent support based on a solid understanding of your organization and industry.

An implementation project manager will help guide you through your transition. Our customer service center will be your day-to-day point-of-contact for merchant services. They can also provide resources to help you address PCI DSS compliance concerns, regulatory requirements, consumer payment preferences, and technology changes. Your eReceivables consultant, Todd Reed, can provide guidance as your payment acceptance requirements evolve.

Our treasury management and commercial banking teams work in coordinati on with our merchant services team. Your treasury management sales consultant, Gurleen Pannu, and relationship manager, Jamie O’Connell, will also offer insights to create a comprehensive receivables strategy.

Market rate competitive pricing
The payment networks govern and periodically update interchange and assessments; however, the interchange and assessments are only one pricing component for merchant services.

We provide competitive pricing based on a number of other factors, including the following:
• Sales volume
• Average transaction amount
• Number of locations
• Processing needs
• Card acceptance environment
• Connectivity method
Clover Go
Card reader paired to your mobile device
With Clover Go, you can use your mobile phone or tablet to accept payments wherever you do business. You download an app to your iOS or Android device.

Then, with the use of one card reader, cardholders can dip or tap to pay. The card reader, which connects using Bluetooth, is EMV chip card enabled. The service can capture signatures for card transactions. In addition, you can record cash and check transactions for reporting purposes.

You connect using your device’s cellular data plan or Wi-Fi supported with a wireless router or hotspot.

Security and fraud protection tools
With all devices, encryption and tokenization help protect card data, while EMV chip card technology helps prevent in-person fraudulent transactions.
564
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 103

To help potentially reduce your PCI compliance scope, you can configure the Clover Station Solo, Clover Station Duo, Clover Mini, and Clover Flex devices to provide point-to-point encryption (P2PE) and PCI P2PE-certification at no additional cost.* * Because Clover Go uses a Bluetooth card reader linked to your own mobile device, the solution cannot be PCI P2PE -certified and you cannot accept PIN-debit transactions.

Customize the service with the apps you need
The Clover App Marketplace offers more than 500 apps and is continually growing*. This helps you customize the software to meet your business needs. You can tailor the service to include apps for managing inventory, employee scheduling and time cards, menus, sales tax management, and more. * Additional fees apply for usage of Clover apps from the Clover App Market. Please refer to the Clover App Market terms and conditions for details.

Accept a variety of payment types
You can potentially help increase sales and customer satisfaction by accepting a variety of payment types, including:
• Credit and signature-debit transactions
• PIN-debit transactions1,2
• EBT cash benefit cards2
• Gift cards2,3
• Mobile payments — Apple Pay, Google Pay, and Samsung Pay2,4 • Checks3

1. PIN-debit transactions are available with the Clover Station Duo, Clover Mini, and Clover Flex devices.

2. Not available with Clover Station Solo and Clover Go.

3. Not available with Clover Go.

4. Mobile payment products are trademarked by their respective owners.

Apple, the Apple logo, Apple Pay, Apple Watch, Face ID, iPad, iPad Pro, iPhone, iTunes, Mac, Safari, and Touch ID are tradema rks of Apple Inc., registered in the U.S. and other countries. Apple Wallet is a trademark of Apple Inc. App Store is a service mark of Apple Inc.

Android, Chrome, Google Pay, Google Pixel, Google Play, Wear OS by Google, and the Google Logo are trademarks of Google LLC.

Samsung, Samsung Pay, Galaxy S (and other device names) and Samsung Knox are trademarks or registered trademarks of Samsung Electronics Co., Ltd.
565
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 104

Receive fast funds availability
If you deposit into a Wells Fargo commercial account1 for settlement, you will typically receive funds as soon as the next business day2 for Visa, Mastercard, and Discover Network transactions received before the established cutoff time of 11:00 p.m. Pacific Time.

If you settle transactions for these cards to another financial institution, your funds are typically available in two business days.3
Funds availability for American Express transactions depends on the City’s contractual arrangements with the card issuer.

1. Deposit products offered by Wells Fargo Bank, N.A. Member FDIC.

Merchant services are provided by Wells Fargo Merchant Services, L.L.C. and Wells Fargo Bank, N.A. Merchant services are not deposit products. Wells Fargo Merchant Services, L.L.C. does not offer deposit products and its services are not guaranteed or insured by the FDIC or any other governmental agency.

2. Please refer to the Merchant Services Terms and Conditions and Operating Rules or Program Guide for additional information .

3. For ACH deposits, projected funding may vary. The actual time could be longe r depending on the financial institution’s status with the Federal Reserve.

Electronic lockbox
Online bill payments provide a convenient, simple, and paperless way for your customers to pay you.

However, many bill payments initially submitted online can st ill end up as mailed paper checks by bill service providers. These check payments create exceptions and often have incomplete or inaccurate remittance details, which can result in processing delays for you.

Wells Fargo Treasury Management

City of Beaumont | 105

The City receives a single ACH credit to your deposit account.

The following table provides descriptions of the validation routines the City can choose from.

Validation routine Description
Account mask Confirms that the inbound account number matches your billing account number structure
Check digit* Uses a mathematical equation to determine if an account number is valid
Cross-reference database processing 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 customers enter and can make account number changes that may occur due to a merger, acquisition, or system change.)
Positive file processing Compares inbound account numbers to a file of valid account numbers you provide
Stop file processing Compares inbound account numbers to a file of unacceptable accounts you provide
* Applies to credit card billers.
567
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 106

Research
The City can view and research processed payments and access information for reporting and trend analysis.

Payment history
You can locate transactions using the search criteria in the following table.

You can view and print activity in HTML and PDF formats, or export in CSV and XML formats.

Virtual lockbox
Our virtual lockbox service integrates payments that arrive at your location with those we receive in your lockbox.

Using an approved scanner, you’ll scan and submit payments that arrive at your location and we’ll integrate them with those we receive in your lockbox.
568
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 107

You’ll receive same-day ledger credit for payments we receive prior to your submission deadline, which you will establish during the implementation process. We process transactions we receive after your deadline (including any items we process during the weekend or on a holiday) in the following business day’s work.

Your lockbox reports and transmissions will include payments you submit using the virtual lockbox service. Images are available for viewing through the same image channel you use for your lockbox.

Data entry capabilities
Each payment you submit undergoes the same lockbox processing currently in use, including data entry, deposit windows, and special instructions.

Remittance document imaging
You can scan checks, invoices, coupons, envelopes, and correspondence (up to 8½” x 11” in size). We store all check and remittance document images — regardless of source — in a convenient, searchable electronic archive.

Remittance file integration
We combine the payments we receive into your lockbox with those you submit to us using our virtual lockbox service and provide you a single electronic transmission of your remittance detail.

The file is in the same format as your current transmission file.

How virtual lockbox works
.

E-Bill Express
Our electronic bill presentment and payment
service* is designed to provide secure and
convenient options for your customers to view
and pay their bills.

It may help you reduce:

A turnkey solution that works with your
existing systems and doesn’t require
webpage development or extensive
support from your information
technology resources.
• Collection time
• Manual exception processing
• Days’ sales outstanding
• Receivables processing costs
Convenient email and mobile wallet notifications remind your enrolled customers that payments are due. Additionally, the service may help lower your print and mail costs because fewer customers may require paper bills.
* Standard bill presentment and payment fees apply. Additional fees may apply for optional services. 569
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 108

The service, which hosts the bill payment webpages, is designed to be cost-effective, easy to implement, and branded to your identity.

Flexible bill presentment and payment options
At implementation, you choose the configuration options that are most efficient for your organization and designed to meet your customers’ expectations. This may increase the likelihood that your customers will choose to view and pay their bills electronically.

Decide how much information your customers see
You can provide your customers with detail or summary bill presentment in HTML format or you can provide PDF bill presentment.

The payment page displays:
• A list of open bills
• Amount due
• Due date
• Invoice number
• Other optional fields, for example, a purchase order number or invoice line item details Detail presentment
We offer more than 50 billing information fields, including several fields that you can customize. The fields include line item details about items ordered and shipped, unit price, and the previous balance that is past due.

Biller information fields
• Invoice number
• Invoice date
• Minimum amount due
• Due date
• Previous balance
• Current balance
• Total amount due
Summary presentment
With the summary presentment option, you can provide high-level billing information such as the information fields listed in the following table. In addition to the standard fields, there are several customizable fields.

PDF presentment
If you’d like your customers to view an exact replica of your invoice, the service can present the invoice in PDF format. We offer several options for providing invoices in PDF format. We will discuss the options with you during implementation.*
* Additional fees may apply based on your choice of PDF storage options.

Sending us your data
You can use batch files or an API to provide your billing data. 570
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 109

Batch files
You can submit your bill files in comma-separated values (CSV) format using one of our secure internet transmission protocols or through the service’s administrative portal.

If we receive your bill files by 8:00 p.m. Pacific Time, your customers can view their billing information the next business day.

API
You can provide your billing data in real time through an API that uses:
• Representational State Transfer (REST) for communication • JavaScript Object Notation (JSON) messaging format
• Auth 2.0 authorization protocol
Your customers can view their billing information immediately, 24 hours a day, 7 days a week, depending on the City’s internal system configuration.

Notifications help encourage prompt payments
When your customers enroll for electronic bill presentment and payment, they’ll receive notifications that remind them to view and pay their bills. Notifications are available by e mail, text, or through your customer’s mobile wallet.

Email notification
We offer the following types of email notifications for enrolled users:

Ready-to-view bills
Scheduled payments
Processed payments, including confirmation number
Expiring credit cards
Upcoming bill date
Past due bills
The email includes a link to the sign on screen. Once the customer signs on, they can view billing information.

Choose the payment channels available to your customers Online
Your customers will access our service through a link on your website, or by bookmarking our online presentment and payment URL. We host the website and it’s branded with your logo. 571
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 110

When customers access the website, they can select one of three languages: English, Spanish, or French. This may increase customer engagement and reduce the number of calls to your customer service representatives.

Telephone payments made through your customer service representatives Your customer service representatives can accept payments over the phone and process them through the administrative portal of the bill presentment and payment service.

Accept payments from enrolled users and one-time payers You can choose to accept payments from customers enrolled in the online service and those making one-time online payments.

Enrolled users
Enrolled users can save payment methods, set up recurring or future-dated payments, and view their online payment history.

One-time payments
Customers can make one-time online payments, including future-dated payments, but they cannot save their payment methods or setup recurring payments. These customers won’t have access to online payment history.

Accept multiple payment types
With our electronic bill presentment and payment service, you can accept:
• eCheck payments
• Major credit cards (Visa, Mastercard, Discover, or American Express) • Debit cards (with the Visa or Mastercard logo)
• Corporate and purchasing cards (Level III data supported) Keep card information up to date
Maintaining updated card information for electronic bill presentment and payment users can help increase customer satisfaction and potentially minimize declined transactions. However, even if prompted by email, the customer may not update their card expiration date or card number.

You can take advantage of our Account Updater service*, which automatically updates information for Visa and Mastercard cards. Once per month, the service updates information for cards used within predetermined number of days in the past, or cards that are expiring within a predetermined number of days in the future.
* Additional fees apply for the Account Updater service. 572
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 111

Receive funds as soon as the next business day
Funds for payments processed before the cutoff time are typically available in your Wells Fargo commercial account1 as soon as the next business day.2,3 You can choose a cutoff time of 5:00 p.m., 3:00 p.m., or 2:00 p.m. Pacific Time.4

1. You can settle your merchant services funds to an account at the financial institution of your preference. When you use a Wells Fargo account for settlement or other merchant services purposes, you must use a Wells Fargo commercial account.

Deposit products offered by Wells Fargo Bank, N.A. Member FDIC.

2. Please refer to the Merchant Services Terms and Conditions and Operating Rules for additional information related to card transactions.

3. Visa, Mastercard, and Discover card transactions and eCheck only. American Express card transactions settle in one to three business days depending on the City’ contract with American Express.

4. You choose the cutoff time when we implement your service.

Online reports and search capability
Reports
Through the administrative portal, you can access a variety of reports, including:

User reports that provide information about your customers’ payment activity, status, and enrollment Financial reports that provide information about deposits and payment batches Bill payment and management reports that show payments, recurring payments, suspended payments, and stops File management reports that show the status of your billing files Online reports are available 24 hours a day.* You can download reports in CSV, Excel, and PDF formats. In addition, you can customize the columns and filters for further analysis.

You have access to 12 months of payment and invoice history as a standard part of the service.

However, you can request that we set you up for extended history of up to seven years.† * Availability exclusive of unplanned outages.
† There is an additional monthly fee for extended history.

Search capabilities
To assist with customer inquiries, the City’s customer service representatives can search and query by date range, customer ID, payment amount range, and invoice number. 573
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 112

Streamline receivables posting
You will receive all of the information you need to post and reconcile payments, including:
• Your internal customer reference number, for example a customer or account number • Payer’s name
• Invoice number
• Amount paid per invoice number
• Fee amount (if applicable)
• Total amount paid, includes multiple invoices and fee amounts (if applicable) • Payment method and channel
In the following paragraphs, we describe the options you can choose for receiving this information.

Receive a daily accounts receivable file
To streamline receivables posting and reconciliation, you receive a daily* AR file that automatically uploads to your ERP or financial system. The file, which includes remittance information for all payment types, provides details of your electronic bill payment activity for eCheck payments and returned items and credit and debit card payments.

The AR file is available in a fixed-width flat file or in a pipe-delimited flat file. If you need a customized file to integrate with your system, you can use our consolidated receivables service.

You will receive this file by secure file transmission. As an alternative, you can download it in CSV format through the online administrative portal of our bill presentment and payment service. Your AR file is available four hours after your daily cutoff time. * Excludes federal holidays and weekends.

Memo post payments with real-time payment notification*† Using an API, you can receive real-time payment data that your representatives can use to help provide a better customer service experience for your payers.

Our system sends the data to a URL that you provide, letting you automatically memo post payments to your receivables system. The real-time data includes the same information you will receive in the daily AR file.
* Payments can be cancelled up to 15 minutes before your daily cutoff time. Therefore, we recommend that you use the real -time data only to memo post payments and use the daily AR file for final posting and reconcilement. † Additional fees apply.
574
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 113

Consolidated receivables (Receivables Manager)
With our consolidated receivables service, you can post payments automatically to your ERP platform or AR system when you receive an electronic receivables file from us. This consolidated file helps accelerate cash application while reducing the number of errors caused by manual data entry.

Your file can contain receivables data from any combination of the payment sources listed in the following table.

Payment types for online origination
• ACH
• Electronic billing service
• Foreign currency wires
• Image cash letter
• International letters of credit
• Lockbox
• Online bill payments
• Real-time payments
• Remote deposit
• Wells Fargo Payment Gateway
• Wires
How it works
We translate your receivables data and deliver it to you in a format compatible with your ERP platform or AR system. Our service is compatible with most accounting and ERP solutions, including Oracle and SAP. We can also accommodate many custom and proprietary file formats.

Your customers can forward their emailed remittance details sent separately from their ACH and wire payments to Wells Fargo; the remittance details can be automatically matched to payments as they’re received. If we can’t match payments to the remittance automatically, we will flag exceptions in our online banking portal. You can then manually match payments to remittance details based on system suggestions. Finally, we can transmit all transactions with remittance data to you for automated upload to your ERP system.

Flexible file options
Delivery
We deliver an electronic receivables file to you by transmission.

Our transmission platform offers a variety of communication protocols including:
• SFTP
• FTPS
• HTTPS
• AS2
575
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 114

The following tables describe the formats we support.

Formats
Standard formats Using a standard format can minimize your implementation cost and time, and you can choose a different format for each payment type.

Flat file formats We 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 20022 XML When you receive your information in this format, it streamlines the City’s integration and reconciliation process because you are receiving the same information from all banks that use the ISO 20022 XML format.

Custom formats If you cannot work with one of our ERP-specific formats, we can develop a custom format for you.*
* Additional fees may apply.

Formats
ANSI X12 820 (Payment Order or Remittance Advice)
ANSI X12 823 (Lockbox)
BAI 80/300 (Lockbox)
ISO 20022 XML format
Modified Nacha
Proprietary and custom formats (by request)
Wells Fargo standard file format
Wells Fargo flat file formats
• Simplified
• Universal
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.

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. 10:00 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.
* Certain times may take longer than one hour.
576
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 115

Consolidated receivables through our online banking portal Advice matching
Advice matching offers the ability to match payments to remittance advices, which are sent separately from the payments. These separate advices are typically sent by the payer through email.

Our service automatically matches payments to existing payer profiles. We can automatically generate a new payer profile for payments that don’t have an existing profile. You can maintain payer profiles through our online banking portal.

Remittance repair
ACH and wire repair correct improperly formatted
remittance data sent within an ACH or wire payment. We
automatically repair remittance data based on your
business rules. If we are unable to repair the data, the payment is available to you through our online banking
portal as an exception for you to manually decision.

Automate more of your AR
processing and manage
exceptions through our online
banking portal.

Decisioning
The City can perform a return or repair for payment transactions through our online banking portal.

Commercial card
One card, one workflow
Help maximize convenience, efficiency, and control with one card and one platform that handles your employee spending, travel, general procurement, AP disbursements, and more. When you consolidate expenses into one program, the City gains access to comprehensive information for smart decision making. You have the potential to realize significant savings in time, transaction- processing costs, and internal resources required to support the program. A single -card platform integrates multiple processes and creates a solid foundation for future growth.

Additionally, you will gain an ally with more than 28 years of experience in the card industry and knowledge to help make your program successful.

Accepted almost everywhere
We issue both Visa and Mastercard, with both platforms boasting millions of global acceptance locations.*† This coverage means your employees can make purchases almost everywhere cards are accepted. We will help you determine which issuer best meets your needs. * Visa. 2021. “ Visa Annual Report 2021.” Visa > Investor Relations > Annual Reports & Meeting. † Mastercard. November 10, 2021. “Mastercard Investment Community Meeting.” Mastercard > Investor Relations > Events and Presentations.
577
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 116

Corporate liability: A best practice
Organizations typically choose a corporate liability program because it’s designed to:
• Increase visibility of spending across the entire organization • Decrease costs, losses, and risk
• Eliminate individual liability and unnecessary burdens on employees Corporate liability also means that your earned revenue share doesn’t depend on cardholder reconcilement — giving you the potential to earn more.

Online program management
For low IT burden and flexibility, manage your program through our expense management service, which offers self-administration functionality and customizable components. There is no need to install hardware or software on your system. Our service provides:
• Intuitive coding of common expenses
• Real-time online card management
• Comprehensive standard, custom, and ad hoc reports
• Customizable transaction fields
• Secure multi-level approvals
You can upload expense data from the application to most ERP and treasury workstation platforms, which eliminates any manual data entry to your general ledger.

Your employees can use our expense management service to:
• Review and approve transactions
• View and upload receipts
• Input cash expenses
• Reclassify line items to multiple cost centers
Handle tasks on the go
Employees can manage their expenses when away from their desks using our end-to-end mobile service.* Cardholders and approvers can complete almost all of their card-related activities using their mobile devices. For example, they can snap receipt images at the time of purchase, manage charges and expenses, approve transactions, and view available credit and declines.

To help keep accounts secure, cardholders can receive text alerts† when transactions are complete or when nearing their card limit. They can set notifications by dollar threshold. * Functionality for our WellsOne Expense Manager mobile application requires a WellsOne Commercial Card, use of our WellsOne Expense Manager service, and access to the CEO portal. Download the latest version of the application for your device from the Apple App Store or Google Play store.
† Your mobile device’s coverage area can affect availability. Your mobile carrier's message and data rates may apply. 578
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 117

Digital business-to-business payments
Don’t miss the potential time and cost savings of digital payments. With our Virtual Card Payments service, you can pay suppliers using unique virtual card numbers. Initiate a payment through our online application or by API file transmission. We produce a unique virtual card number and send it, along with transaction details, to your supplier in a secure email. Use an electronic transaction detail file to close transactions within your accounting system. For added control and ease of reconciliation, you can additionally limit payments to an exact dollar amount or make the payment available for a limited time.

Help make it easier for suppliers to accept your payments With our Straight Through Processing* solution, you can make it easier for your suppliers to do business with you. Suppliers can arrange to receive your card payments in their bank accounts instead of processing the payments themselves.
* We offer our Straight Through Processing solution as part of a relationship wit h Mastercard, and in conjunction with our WellsOne Virtual Card Payments service. Additional fees and restrictions apply.

One file for all payments
To help simplify your payables process even further, send us an electronic payment file directly from your treasury workstation, ERP, or AP system. You can consolidate multiple payment types — check, ACH, wire transfer, and virtual card transactions — in a single file. Upon receipt of the file, we separate payments by type, process them accordingly, and send human-readable remittance information to the payee.

We help onboard your suppliers
Our experienced Supplier Analysis and Onboarding team can help strengthen your supplier trading partner relationships through a single program that covers both commercial card and ACH payments. We use proprietary analysis tools to analyze your supplier base and then create a customized strategy and targeted outreach campaign specific to your needs.

Help protect yourself from fraud
It’s important to have the best fraud protection for your cardholders and accounts. We use proprietary fraud mitigation technology, customized transaction monitoring, and convenient reconciliation tools to help keep your cardholders and accounts safe.

Enhanced fraud alerts are just one of the capabilities we use to fight fraud. We send your cardholders alerts by email or text* when we identify a suspicious purchase. They can confirm whether or not the transaction is fraudulent by simply responding to our email or text. Their responses help us detect and prevent fraud almost instantly. * Your mobile device’s coverage area can affect availability. Your mobile carrier's message and data rates may apply. 579
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 118

Additionally, our commercial cards adhere to the
rigorous security protections of the Visa and
Mastercard networks.

Full implementation support
We approach implementation as a partnership. We
commit our full-time resources and experienced
members of our commercial card team to guide the
design, installation, and rollout of your program.

Liability protection through Visa
and Mastercard
Each commercial card program is
eligible for a liability waiver offered
through Visa and Mastercard up to
$100,000. This waiver can help
protect your organization from
certain employee misuse or other
unauthorized charges.

Dedicated account manager
We assign a dedicated account manager to new card programs to provide ongoing guidance and support. Your account manager meets with you regularly to track program statistics and measure them against your key goals. In addition to this benchmarking, your account manager updates you on industry developments and best practices that promote card use.

Around the clock support
We have two commercial card service centers within the U.S. dedicated exclusively to serving our commercial card customers. Our representatives assist with card maintenance services, such as reporting a card as lost or stolen and answering questions about cardholder transactions. The City can call our service team for support, 24 hours a day, seven days a week.

Virtual card payments
With our Virtual Card Payments service, the City can make payments to your suppliers using unique, virtual card numbers. When you initiate a payment file, we assign a unique virtual card number to that specific transaction. The City can specify the transaction amount and payment tolerances — percentages above or below the amount or both — that allow for variation in the actual transaction amount. Your recipient has a specified number of days to use the virtual card number. You can also initiate payments within our Virtual Card Payments service application instead of sending a transmission file. This option gives you the flexibility to make off-cycle payments when needed.

Our Virtual Card Payments service sends the unique virtual card number and transaction details to your recipient automatically by secure email. Your recipient processes your payments just like any other credit card payments. Alternatively, with our Straight Through Processi ng service, you can make it even easier for suppliers to do business with you. Suppliers can arrange to receive your card payments in their bank accounts instead of processing the payments themselves.* * We offer our Straight Through Processing in conjunct ion with our WellsOne Virtual Card Payments service. Additional fees may apply.

The City can access all settled transactions through our expense management service. You also have the option of receiving an electronic remittance file to expedite the reconciliation of transactions in your system.
580
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 119

Help getting your suppliers on board
Our dedicated Supplier Analysis and Onboarding team helps analyze your supplier base and strategically targets them for card payment acceptance. Based on our findings, we strategize with you on payment methods and terms to offer each supplier. Then, we onboard your suppliers by explaining the benefits and helping them understand the value of digital payment acceptance.

On-demand payments
Our On Demand payments service uses API technology to connect your system to ours. When you initiate an API call, your system connects to our bank systems through secured credentials so that we can provide the virtual card numbers you want, when you need them. You use these virtual card numbers to facilitate individual payments to your recipients.

We send each virtual card number, along with transaction details, by secure email to your recipients or make the virtual card number available for delivery using an alternative process you choose. You don’t need to wait long for batch processing; each transaction is almost instantaneous — helping improve processing efficiency.

Consolidated payables (Payment Manager)
Our consolidated payables service, Payment Manager, can help you streamline and automate your payment and remittance processes, help strengthen trading partnerships and drive working capital, and help improve operational efficiencies.

By reducing the use of paper documents and manual data entry, you can minimize mistakes and increase efficiency.

Payment types
In a single file, you can provide payment instructions and include all related remittance information.

Your file can include multiple payment types; we separate the payments by type and process them accordingly.

Your file can include the following payment types:
• USD and CAD* paper checks
• U.S. ACH transactions in USD
• Global ACH transactions in foreign currencies
• USD wires
• Foreign currency wires
• Requests for transfer (SWIFT MT101 messages)
• Wells Fargo virtual card payments
• Disbursements with Zelle®†
* CAD paper checks are available only for off-us accounts. You must be the owner of the account. † Zelle and Zelle-related marks are wholly owned by Early Warning Services, LLC and are used herein under license. 581
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 120

Online services
Through our online banking portal, you can:
• Upload a payment file
• Perform additional approvals after sending the file
• Access acknowledgments and optional confirmations
• Generate reports on payment files
• Run an audit report on settings and user entitlements Compatibility
Our service is compatible with the treasury workstations, ERP systems, and AP systems listed in the following table. We can also work with additional systems outside of this list.

Treasury workstations and ERP systems
GTreasury PeopleSoft
JD Edwards SAP
Kyriba SunGard
Lawson Wall Street Systems
Microsoft Dynamics Great Plains Yardi
Oracle*
* If you use Oracle, you can use our software solution to manage data translation to the file.

Flexible file options
Delivery
Transmit your payment file using a variety of communication protocols (including multiple internet options) or upload it online.

Formats
Our service accepts:
• Standard Wells Fargo flat file (delimited or positional) • Wells Fargo XML
• ANSI X12 820 version 4010
• Lawson AP 161
• Excel CSV
• SAP IDoc – Extended Payment Order (PEXR 2002)
• ISO 20022 (CGI common XML standard)
• Custom and proprietary formats
Our service accepts and
acknowledges your file for
initial processing, 24 hours
a day, seven days a week
582
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 121

Processing deadlines
Depending on the payment type you send, we process your file the same business day if we receive it by our cutoff time. For a file that arrives after our cutoff time, we process it on the next business day. If you require secondary approval, it must be completed by the applicable deadline for same- day processing. If a file includes multiple payment types, the earliest applicable deadline applies to the entire file.

Cutoff times (Pacific Time)
Payment type File cutoff time
Checks
Standard
Same day1

7:00 p.m.
9:00 a.m.

ACH
On-us same-day settlement
Transit same-day settlement
One-day settlement
Two-day settlement

5:30 p.m.
6:00 a.m., 10:00 a.m., and 12:00 p.m.
5:30 p.m.
5:30 p.m.

Wires
Fedwire
SWIFT
CHIPS
Drawdown request
Request for Funds Transfer (RFT)
U.S. Federal tax payments
Within Wells Fargo2

3:15 p.m.
2:30 p.m.
2:00 p.m.
2:30 p.m.
2:30 p.m.
2:00 p.m.
5:00 p.m.

Wells Fargo virtual card payments Accepted when received Zelle® payments3 Accepted when received

1. Subject to volume limitations and additional fees.

2. Transactions within Wells Fargo are moving funds from one Wells Fargo account to another. You can originate these from all origination channels to all of our available accounts.

3. For Zelle® payments with the check completion option, if an electronic payment fails to originate, transactions will change over to checks. Checks are mailed on the next business day.

Safety and security
Secondary approval
You can make optional secondary approvals for some — or all — of your payments after we receive your file. The system can hold an entire file of payments or an individual payment for an authorized user to approve or delete. We then generate the payments and send remittance information based on your instructions.
583
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 122

History
You can search for payment information, view standard reports, create custom reports, and schedule report reminders. Data is available for 90 calendar days after we receive your payment file .

Users with administrative authority have access to an audit report, which provides snapshots of setups and user entitlements. You can also view all changes made to setups and user entitlements within the last 90 calendar days.

Acknowledgments
We let you know by transmission, secure email, or both that your file has reached our system and undergone initial processing. You can choose from the following formats:
• XML
• ANSI X12 997 (standard EDI)
• ISO 20022
• Human-readable report
If you’d like delivery by both transmission and email, each can be in a different format. You can also view and download acknowledgments online.

Confirmations
You have the option to receive payment confirmations for wire transfers, virtual card, and ACH payments by transmission, secure email, or both. You can also view and download confirmations online. You can choose from the following formats:
• XML
• ANSI X12 824 (standard EDI)
• Excel CSV
• ISO 20022
• Human-readable report

2. Please provide any additional information that your financial institution believes to be pertinent, but not specifically requested elsewhere in the RFP.

We’re in one of the most exciting times in our history, with rapid technological advancements leading the progress in so many areas that touch our daily lives. That’s why we’ve invested heavily in innovation and strengthening our digital foundation while reducing risk and transforming our business to meet evolving customer needs.

Our approach to innovation
We focus on ideas that make banking faster, easier, and safer. We start with the solution — how we can leverage a new capability to make customers’ lives easier. We don’t implement technology just for technology’s sake. With that mindset, we’re explore emerging technologies such as distributed ledger technology and predictive personalization. We think creatively to understand how it can help us deliver transformative customer experiences. For example, we’re using artificial intelligence to help simplify processes for both our employees and customers. 584
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 123

Innovation also includes thinking beyond our walls. The future of banking relies on investing in critical partnerships such as those with fintechs. Leveraging the data and scale of Wells Fargo with the nimbleness and precision of fintechs and technology firms can help create results that are better than the sum of its parts.

People to drive change
We have a dedicated group serving as the catalyst for transformational change across Wells Fargo.

This group focuses on fostering the growth of big ideas that influence business models, processes, and programs throughout our organization. With this structure in place, we are better positioned to manage our digital foundation and transform our business models to meet evolving customer needs and grow.

Our priorities include:
• Delivering better
customer experiences
faster
• Enhancing our end-to-
end mobile experience
• Advancing the use of
APIs to personalize
customer experiences
Mobile first
As the pandemic has proven, we’ve reached the tipping point for the way customers manage their money, with digital adoption growing at an unprecedented rate. And if you’re like many others, you live on your smartphone — you accomplish every task and plan your next important life moment using the tool in your pocket. You expect your banking app to not just keep up, but possibly even anticipate your needs. That’s why we’ve invested in personalizing your mobile experience — to take it from banking app to lifestyle money manager.

Integrated financial services
Imagine viewing your Wells Fargo account balance in an online retailer’s checkout flow without having to open our mobile app or sign into your online bank account. That’s Embedded Banking in action and a key area of interest for us as we look to the future.

Additionally, we will continue to build upon our Wells Fargo Gateway — our award-winning* API channel. The Wells Fargo Gateway allows customers and third parties to integrate customer - persmissioned financial information into their own digital environments. APIs can transform how you do business by allowing services to be delivered online and on demand. For example, customers can leverage APIs to:
• Initiate banking transactions
• Receive real-time responses with banking data or the status of payments • Supplement the batch processing of more time-sensitive payments by originating them at any time
* Celent. March 9, 2021. “Winner of Celent Model Bank 2021 Award for Embedded Finances.” celent.com > Reports and Insights > Wells Fargo: Enabling Customers to Offer Financial Products. 585
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 124

F. References

Based on our current understanding of your needs, we have chosen references with services that most closely resemble the setup we have proposed for the City. We provide contact information for these references in the following table.

References
Sylvia Molina
Finance Department
Beaumont Cherry Valley Water District

951-845-9581
[email protected]

560 Magnolia Ave.

Beaumont, CA 92223
The Beaumont Cherry Valley Water District uses the
following Wells Fargo services:
• ACH
• Desktop Deposit
• Previous day reporting
• Wires
Lorena Rocha
Finance Director
City of Hemet

951-765-2387
[email protected]

445 E. Florida Ave.

Hemet, CA 92543
The City of Hemet transitioned to Wells Fargo in
August 2021 and uses the following Wells Fargo
services:
• ACH
• Cash Vault
• Desktop Deposit
• Previous day reporting
• Wires
Cheryl Stafford
Accountant II
City of Banning

951-849-2414
[email protected]

99 E. Ramsey St.

Banning, CA 92220
The City of Banning uses the following Wells Fargo
services:
• Cash Vault
• Desktop Deposit
• E-Box
• Lockbox
* Reference information is confidential.

2. How many governmental clients has the proposed relationship manager gained and lost in the last five years?
In the last five years, your relationship manager, Jamie O’Connell, has acquired eight new government relationships and lost one due to pricing terms. 586
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 125

G. Sample contract

1. Provide a sample of the proposed contract for your financial institution’s services. Please also provide samples of all other documents which will need to be signed/entered into related to the provision of the services requested in this RFP, including any documents referenced or incorporated into the contracts/agreements.

2. It is the intention to incorporate the RFP and your financial institution’s proposal response as part of the overall contract. Is this acceptable? If not, why? Wells Fargo has included with our response copies of our account and service documentation for the deposit and treasury management products and services requested in the RFP, which we require to serve as, or be incorporated into, any final agreement. Wells Fargo is willing to discuss the order of precedence of any of the City’s additional documents upon award of the contract.

Our disclosures and legal exceptions can be found in Appendix Tab F.

The account and service agreements appear in Appendix Tab G.

H. Pricing and account analysis

1. For how long is the financial institution willing to guarantee the proposed fees? The price schedule that we include in this proposal is valid for 180 days from the date the proposal is submitted to you.

2. Can fees be debited direct from the City’s account rather than billed to the City? Yes. The City can pay your fees through direct account debit or pay an invoiced amount by ACH or check each month. We prefer automatic billing after the statement cycle.

3. Provide a complete fee schedule for all the services described in your financial institution’s proposal using Association of Finance Professionals (AFP) Service Codes, is possible.

Fees related to all services described in the proposal must be listed, even if the service is not shown on the schedule. Also, include any one-time or set- up charges, research fees, minimum fees and all other fees that will be charged. Include any incentives or price breaks offered bason on volume, timeliness of payment, rebates or other measures.

Please refer to Tab A in the Appendix section of our response for pricing. 587
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 126

4. Are you willing to offer any transition or retention incentives? Yes. Wells Fargo wants to earn the City’s relationship. Should you move your full relationship to Wells Fargo, we will grant the City a conversion allowance of $35,000 to be used in the first 12 months upon account opening.* It would be to the City’s benefit to implement new technology offered and to try those services you have been considering. If the City implemented lockbox, E-Box, or other high-tech solutions, the conversion allowance could pay for the City to initially try the solutions at no cost — and transition for free to Wells Fargo. The 12-month cycle begins after the first month cycle following the new account opening.
* Wells Fargo Merchant Services fees are not subject to this conversion credit and are billed separately.

5. Are there any additional price breaks or incentives? We have tailored pricing according to our assumptions of the City’s volumes. If Wells Fargo is chosen as the finalist, we can work with the City to reassess the services to ensure that they are the best fit and the best priced.

Additional services
The bank may desire to offer the City additional services not otherwise specified in this RFP. In this event, a supplemental attachment should be prepared and included with the proposal describing the additional services offered in detail and indicating the cost, if any, for these services.

If the City would like additional pricing quotes for our high-tech solutions, we may need additional data from the City to complete the quote.

As we were reviewing your statements, there are a number of technology improvements we would like to offer the City, if interested. If chosen as a finalist, we can share these ideas and supply a proposal for services you find value in.
588
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 127

V. Pricing of banking services
Overview
The City requires banks to offer the following options for payment of service charges:

Direct payment of service charges (option 1)
Under this approach, no compensating balance will be maintained by the City. The City will pay for actual charges for services provided on all City accounts. If the City elects this option, payment will be made by bank debit against the City's general checking account. The bank will link all City accounts for analysis and provide individual as well as a summary report on the charges and fees on a monthly basis. The bank will provide information identifying the volume of service transactions, unit prices and total amounts owed, and an account analysis which will be submitted to the City within fifteen (15) working days of the end of the month. The City will receive an earnings allowance that will be used to reduce the monthly service charges.

Acknowledged. This is an option for the City.

Please refer to Tab A in the Appendix section of our response for pricing.

Variable compensating balance method (option 2)
Under this approach, the compensating balance required to be maintained by the City will vary monthly based on the City's transaction volumes for the previous month and the bank's unit prices for services, reserve requirement and earnings allowance. The earnings allowance rate to be utilized is the three-month U.S. Treasury Bill average weekly auction results (coupon equivalent yield) for the previous month. Written notification to the Director of Finance will be required to adjust the compensating balance amount.

Acknowledged. At this time, Wells Fargo is only offering a managed rate based on the current market conditions. With this flexibility, you can maximize your earnings potential on balances as you transition. We are offering the City an ECR of 0.70% which is variable based on market conditions and bank discretion. In addition, we offer investment sweep options for excess balances. Should the City elect a sweep option, those balances do not earn an earnings credit nor are charged recoupment fees, but sweep interest is paid directly to the City’s checking account. Fees are posted and debited monthly. The City may also elect to keep some funds in the checking acco unt and sweep the rest. The funds not swept are subject to an earnings credit to offset fees.

Please refer to Tab A in the Appendix section of our response for pricing. 589
Item 19.

Wells Fargo Treasury Management

City of Beaumont | 128

Alternative method
Banks may desire to propose an alternative to the two options described above. In this event, a supplemental attachment should be prepared and included with the proposal describing in detail the alternative method along with computation detail.

Acknowledged.

Please see the proposal included in the pricing Appendix Tab A.

The City can elect to go with a managed rate that is variable and subject to market conditions and bank discretion. All collected balances are subject to this rate as an earnings credit to offset fees.

The City may look at adding a sweep option to your checking account. You may choose to sweep all balances, or leave some collected balances that will earn ECR and offset bank fees. All swept balances are subject to earn dividends at the current rate, and those are paid monthly. Swept balances are not charged recoupment fees, as those balances are part of the investment options chosen by the City. Balances that are swept are money market funds Please see the link that follows for prospectus information.

Rate report
Money Market Fund Rate Report - Allspring Global Investments 590
Item 19.

We provide our pricing and fees in this section. Pricing and fees are valid for 180 days. All pricing information is confidential.

A Message from your Relationship Manager, Jamie O’Connell

Thank you for the opportunity to review banking services for the City. This is a big decision for you and I want to make sure that I have fully explained Wells Fargo’s position on our quotes, services included, and enhancements that we can offer you in the future. Our goal is to earn your business and show you that Wells Fargo is the obvious choice for Beaumont.

Wells Fargo is offering the City a transition allowance of $35,000 to be used in the first 12 months after account opening. This credit may be used at your discretion and can be applied to analysis fees or banking supplies. (Merchant services fees are excluded.) Implementing our lockbox solution could potentially cover the first year of services for transitioning to Wells Fargo. You also have the opportunity to maximize your balances by investing them with one of our sweep options. With the transition allowance offered, you will have the peace of mind to transition to Wells Fargo and not have to worry about being charged fees at two banks.

The pricing elements offered are locked for the three-year term you requested and the ECR is a variable rate subject to change based on market conditions. We are offering an ECR rate of 0.70% upon new account opening, which is a managed rate and variable based on current market conditions and bank discretion. As rates fluctuate, your analysis fees may be covered with the average balances you maintain today. If the City would like to set up quarterly analysis statements, that period reviews activity and balances on a three-month basis and months with excess allowance can cover months with a deficit within the same quarter. We are confident you will find value in our technology and automation services.

If the City chooses Wells Fargo, we can look at other areas in finance to assist. You mentioned the payroll account being processed at another bank, utilizing a third party to pay your vendors by ACH, and having to put all your checks in the cash vault bag for processing. As a city with utilities, we can help streamline incoming bill payments with an electronic file for processing. We are excited to share our best practices and offer the technology available to our customers today.

We have two branches located in the city to serve the residents and employees of Beaumont.

Wells Fargo offers many services and webinars that can assist your community in succeeding financially. If City employees do not bank with Wells Fargo, we will waive the check cashing fee as long as the City is our customer and provides positive pay check information on the checks the employees are cashing.

Catherine Ramos is the local manager of the Wells Fargo branch across the street from the City.

Over the years, the local banking team has been involved with community support initiatives and volunteer activities. From teaching hands on banking and financial literacy to students at Beaumont High School and the Beaumont library — to donating artifacts previously owned by generations of Beaumont residents to the San Gorgonio Pass Museum — giving back to our communities is important and part of Wells Fargo’s vision and values.
592
Item 19.

Every customer is unique and with that they have unique needs. At Wells Fargo, we understand that.

Our job is to build a strong foundation of services that focus on efficiency and risk management, and from there introduce new ideas to strategize and address areas of opportunity. Because our government banking team only works with municipalities like the City, we can pull from experiences, challenges, and efficiencies of other city customers and be true consultants for you.

Banking services including remote deposit, cash vault, ACH, and fraud tools This proposal is based on the numbers you provided and information from the bank statements. We included enhancements you were looking for in the RFP, and want to ensure the totals are correct.

This includes:
•Balances: We used $17MM in balances based on the average provided in the RFP. When reviewing the statements submitted, the balances were much higher than this, but we noticed there is an opportunity for the City to review other liquidity options on the excess balances. The City could potentially sweep all balances if desired, and once the transition allowance has concluded, we can review balances and activity to strategize the best solution for the City.
•Account structure: We priced one account to compare with what you have today; however, there are many benefits to having your relationship at one institution, and if chosen as a finalist, we would like to explore consolidating your payroll account as well. •Remote deposit: This was an important area of focus for the City and an area we have highlighted in the response. Depositing paper check items daily through a scanner is more efficient and cost effective which can reduce your armored pick-ups at the City. Our Desktop Deposit solution has a scanner driver that is linked to our website for installation and updated on our platform. We inserted the 250 items in this scenario to show you how much that would be.
•Cash vault: When reviewing this section, it is important to note that our cash vault volumes look at the actual cash and currency being deposited. Per your analysis statements, this was approximately $25,000 per month, so that is the amount we adjusted it to. Submitting checks through cash vault counts as a paper item deposit through analysis. We assumed 350 deposits per month to our cash vault in Los Angeles, but this amount could be greatly reduced by having your checks submitted through remote deposit or another option. We also included access to request change orders from our online banking platform; these change orders can be delivered by your armored courier during your scheduled pick up. •Lockbox services: We used the 1900 items requested in the RFP to come up with the estimate. There may be some additional need to adjust your payment coupon per lockbox specifications, but we can explore that if chosen as a finalist. This quote includes the price for images, documents scanned, reporting, and other elements related to lockbox. Our lockbox center is in El Monte, California, and is serviced multiple times per day. The City has access to reports online and can sort by many fields relevant to your reconciling needs. •Returned items with redeposit instructions: We can accommodate your returned item instructions and offer images and a report so you can respond quickly to items that are being returned unpaid.
593
Item 19.

• Positive Pay with Payee Validation: The City will send us your check file so we can pay items that match your issue file. Payee Validation will also review the payee information to help prevent fraud. If you have any unmatched items, we notify the City to make a pay or return decision. You will also set a default decision for items that aren’t decisioned. For your protection, we recommend a default decision to return items. • ACH Fraud Filter: We offer ACH Fraud Filter (stop) and ACH Fraud Filter (review) options. If the City expects no vendor activity on the account, we can block all debits from posting. If an account has approved vendors listed, we can add our review option and all unfamiliar ACH attempts would be presented to the City to decision (pay or return). We recommend you set a default decision to return items.
• ACH services: We entered one ACH ID in place today and completed the expected activity for your ACH items. We recommend sending your transmission file one to two days using prepaid settlement, but offer same day for individual items less than $100,000. We disclose the elements as a possibility should they occur.
• Wire transfers: All of your incoming, outgoing and LAIF wire activity will be found in this section. Wires are sent through our online banking portal and require dual custody. • Reports: We are giving quotes for previous day and intraday reporting with 120 days of storage, wire transfer, remote deposit, and lockbox reporting, and access to search online for transactions.
• Set up charges: We are waiving all set up charges for services quoted in the Treasury Management Pro forma. There will be some development and programming hours for the setup of lockbox services, but the City may use the transition allowance for this cost. • Merchant Services and Wells Fargo Payment Gateway: Thank you for providing the statements. Please refer to the Merchant Services pricing pages attached.

Enhancements to consider in the future
During the Q and A period, we asked many detailed questions and appreciate your responses. Some of our services require additional information to propose, but we would like to explore those if chosen as a finalist. These include:
• Commercial card: Please refer to section E, New services and ideas. With a completed vendor analysis from the City, we can identify an annual spend. Card payments are also a payment channel offered with our Payment Manager solution.
• Payment Manager: Wells Fargo can automate your payables by sending us one file for all of your payments — ACH, wire, credit card and check. We welcome the opportunity to review this service in more detail and perhaps provide the City a demo if chosen as a finalist. We can offer the City a full payables analysis if the vendor match template is completed. We match the data against the Visa or Mastercard database to identify the vendors taking card or ACH payments, which will help the City move to an electronic payables environment, decreasing checks over time. There is also a new feature that allows the City to pay electronically through Zelle®. This would allow you to pay constituents by email address or phone number, rather than wait for small dollar items to clear.
594
Item 19.

• E-Bill Express: This service takes your utility billing file and presents the bill online through the City’s website for payment. Your residents can view their bill and pay online by credit card, debit card, or directly through their bank account. The City gets a detailed report outlining who paid and provides many reconciling tools. To provide a quote, we require additional billing information. We are happy to discuss this further if you have interest in this solution. • E-Box: As your residents pay their bill through their bank provider, we can make the City an electronic receiver in the bill pay network. We work with 26 bill pay service networks a nd can send the City one file of the payments received and provide online decisioning to identify those payments that are not recognized. Once the City gives instructions on where to apply the payment, the next time it arrives, the payment will be automatically matched to that customer. We will need more information on the number of bill pay items that are sent to the City today to provide a quote, but we would like to follow up on this conversation. • Virtual lockbox: Since the City is looking to relocate your lockbox facility, you can incorporate our virtual lockbox service for the over-the-counter checks you receive. This is one option to get the paper check items received at City Hall deposited to Wells Fargo. Virtual lockbox takes a file from the City and incorporates those items into the lockbox file we receive today.

For reporting purposes, this will mirror your lockbox report for consistency — whether the items are received at City Hall or our lockbox facility in Los Angeles. • Wells Fargo Electronic Deposit: This service is another option to process your check payments in-house. It is our version of image cash letter and can process check payments at a higher speed.
• Remote cash capture (smart safe): We work with preferred vendors Garda and Loomis to install safe(s) at your locations. Cash is dropped in the safe at night and picked up by your armored courier on your schedule. The bank receives a daily transmission total from the safe, and it offers other fraud prevention tools as well. The contract with the City and armored courier is separate from the contract between the City and Wells Fargo. • Sweep options: We provide a lot of details and information about the sweep options that can be added to your checking account. These options are only offered to municipalities and adhere to government investment codes. Please review options for excess cash and let me know if you would like more information.

If you choose Wells Fargo, you are choosing an innovator in banking technology. We will provide the City, a complimentary business process review to identify ways to help streamline your efficiencies further. As your relationship manager, it is my honor to grow our relationship over time and assist with future enhancements the City needs. As technology progresses, so will your payment options.

For convenience, I am very local to the City of Beaumont and have expertise in many financial needs of the public sector.

Once this RFP period has closed, it would be my pleasure to go over any of these details or address additional questions you have regarding our services. We look forward to working with the City of Beaumont.

Thank you!

595
Item 19.

Treasury Management Pro Forma
City of Beaumont Pricing as of June 2022

ANALYSIS SUMMARY
Average Positive Collected Balance $17,000,000.00
Reserve Requirement @ 0.00%$0.00
Investable Balance Available for Services $17,000,000.00 Monthly Analyzed Charges $5,372.59
Earnings Allowance @ 0.70%$9,780.82
Net Monthly Analyzed Charges (EXCESS)$4,408.23
*Monthly Fee Based Charges $0.00
Total Monthly Analyzed Charges $0.00
*Charges not offset by balances

SERVICE DETAILS
WF AFP Service
Code Code Service Description Unit Price Volume Charges

BALANCE & COMPENSATION INFORMATION
IAMTH 000230 RECOUPMENT MONTHLY 0.12750 17,000 2,167.50 BALANCE & COMPENSATION INFORMATION Subtotal 2,167.50

GENERAL ACCOUNT SERVICES
22051 010000 ACCT MAINTENANCE 10.00000 1 10.00
CK021 010100 DEBITS POSTED 0.10000 25 2.50
15007 010101 DESKTOP DEPOSIT-DEPOSIT CREDITED 0.55000 21 11.55 GENERAL ACCOUNT SERVICES Subtotal 24.05

LOCKBOX SERVICES
03302 050400 LBX TRANSMISSION BASE 125.00000 1 125.00
36709 05011R LBX WHOLESALE BASE 220.00000 1 220.00
36755 050100 LBX STANDARD CHECK PROCESSED 0.20000 1,900 380.00 03905 05011R LBX DOCUMENT SCANNED 0.03500 3,800 133.00
34222 05031Z LBX CEO TIR REPORT PER ITEM 0.05000 21 1.05 LOCKBOX SERVICES Subtotal 859.05
This proposal is based on our understanding of your requirements and the services in the RFP. This proposal includes volumes provided in your Estimated Monthly Activity Detail with anticipated line items and volumes for the products requested in the RFP. Please see the conversion allowance in the RFP response that can be used to offset the fees and setup costs below.

Pro Forma 1 of 13 596
Item 19.

WF AFP Service
Code Code Service Description Unit Price Volume Charges

DEPOSITORY SERVICES
08173 100100 CASH VAULT DEPOSIT 3.00000 350 1,050.00
CK061 100400 RETURN ITEM - CHARGEBACK 10.00000 10 100.00 CK069 100401 RETURN ITEM SPECIAL INSTRUCTIONS 0.60000 0 0.00 CK075 100402 RETURN ITEM REDEPOSITED 5.00000 0 0.00
08110 100144 CASH VAULT COIN ROLLS FURNISHED 0.12000 27 3.24 08416 100199 CASH VAULT CURRENCY FURNISHED 0.00130 9 0.01 08290 100199 CASH VAULT CURRENCY/COIN DEPOSITED 0.00130 25,000 32.50 08160 100501 CASH VAULT DEP - ADJUSTMENT 6.50000 20 130.00 08025 100015 MISCELLANEOUS CREDITS POSTED 0.55000 21 11.55 706 100224 DESKTOP DEPOSIT-DEPOSITED ITEM 0.06000 250 15.00 311 100225 WHOLESALE LOCKBOX - DEPOSITED CHECK 0.14000 1,900 266.00 DEPOSITORY SERVICES Subtotal 1,608.30

Beaumont City CouncilAugust 2, 2022

Beaumont City Council
August 2, 2022