Los Alamitos City Council
July 20, 2026

Rev 12/2025_Ver. 4.1 Page 4 of 11
summonses, search warrants, or requests from
government agencies).
(e) Use of Confidential Service Information. All uses of the Services in accordance with the Security Procedures will be deemed to be authorized by and binding on Client or
the applicable Account owner. Client’s failure to protect Identification Data and Confidential Service Information may allow an unauthorized party to (i) use the Service(s), (ii) access electronic communications and financial data, and (iii) send Orders and communications to Bank or
receive information from Bank. To the maximum extent
permitted by law, Bank shall have no responsibility or
liability whatsoever for any loss due to any unauthorized Order, instruction or other communication from Client,
Client’s Vendor, or any Authorized Individual to Bank,
except to the extent that such loss is determined by an arbitrator in accordance with Section 16 or by a court of competent jurisdiction by a final and non-appealable order to have resulted from Bank’s gross negligence or willful misconduct.
(f) Unencrypted Messages. Client recognizes that
unencrypted messages including email are not secure. If Client chooses to communicate with Bank by email, Client acknowledges that Bank may rely on the contents of the
email as having been authorized by Client, if Bank
accepts and acts on it in good faith. Client agrees that Bank may reply to Client in an email with the requested information. Client assumes the entire risk for any such unencrypted electronic communications.

6. Events of Default.

The occurrence of any of the following shall constitute an “Event of Default”:
(a) Failure to Pay or Perform. If Client fails to pay when due any amount payable, fails to satisfy any condition Client is required to satisfy, or fails to observe or perform any agreement or obligation, under this Master Agreement,
any Service Documentation, or any other agreement
between Client and Bank;
(b) Incorrect or Misleading Statements. If any representation or warranty made by Client in this Master Agreement, any Service Documentation, or any other agreement between
Client and Bank, or any certificate or statement of fact or any other communication from Client to Bank, is found to have been incorrect or misleading on or as of the date
made in any respect Bank considers material;
(c) Insolvency, etc. If Client is or becomes insolvent or bankrupt or is dissolved, liquidated or wound up; or any substantial assets of Client are seized or otherwise
attached pursuant to legal process or other means; or any step or proceeding is taken by or against Client under or in respect of any bankruptcy, insolvency, reorganization or other similar law affecting creditors' rights, including a resolution passed by Client’s directors, partners,
managers, or members; or any assignment is made for
the benefit of Client’s creditors; or in the good faith opinion of Bank the financial condition of Client has become
impaired;
(d) Judgments. If one or more judgments, decrees, or orders is rendered against Client for the payment of money and any of such judgments, decrees or orders would, in
Bank’s opinion, have a material adverse effect and
continue unsatisfied and in effect for a period of more than ten (10) business days without being vacated,
discharged, satisfied or stayed pending appeal; or
(e) Unenforceable Provisions. If any provision of this Master Agreement Bank considers material is determined by an
arbitrator in accordance with Section 16 or a court of
competent jurisdiction to be unenforceable.

7. Termination.
(a) This Master Agreement will continue in full force and effect until all Services have been terminated. Any
Service may be terminated at any time by either Client or Bank upon at least thirty (30) days’ prior written notice to the other party. Only the Service specified in such notice will be terminated, and no other Services will be affected. (b) Bank may, at its option, immediately and without any notice or other action (i) terminate this Master Agreement or any or all Services upon the occurrence and during
continuance of an Event of Default, and (ii) terminate any Service if Bank determines that the Service has not been used by Client for a period of at least 12 months.
(c) Upon termination of any Services under this Master
Agreement:
• Client will immediately return to Bank or destroy the originals and all copies (in all formats and media) of
software programs Bank licensed to Client, all User
Guides, and all security and access devices with
respect to those terminated Services.
• Any licenses granted by Bank to Client with respect
to those terminated Services under the applicable
Service Documentation will automatically terminate.
(d) Even if this Master Agreement or any or all Services are terminated, this Master Agreement shall continue in full force and effect as to all transactions that Bank began processing before such termination and the provisions of Sections 5, 8, 9, 10, 13, and 16 will survive any
termination of this Master Agreement and the relevant
Service.

8. Indemnity.

Client agrees to indemnify Bank, Bank’s Affiliates, and each of their respective officers, directors, employees, agents, and service providers (collectively, “Indemnified Parties”) for, and defend and hold harmless each of the Indemnified Parties from and against, any and all actions, losses, damages, claims, demands, liabilities, costs, or expenses, including court costs and reasonable attorneys’ fees and expenses (collectively “Claims”), resulting directly or indirectly from Bank’s performance under this Master Agreement or Bank’s provision of any Service (including, without limitation, any and all Claims in connection with complying with or responding to subpoenas, summonses, search warrants, or requests or
demands from government agencies), except to the extent that such Claims are determined by an arbitrator in
accordance with Section 16 or a court of competent jurisdiction by a final and non-appealable order to have resulted
from Bank’s negligence or willful misconduct.

Rev 12/2025_Ver. 4.1 Page 5 of 11

9. Limitation of Liability.

IN NO EVENT UNDER ANY THEORY SHALL BANK, OR

ANY OTHER INDEMNIFIED PARTY HAVE ANY LIABILITY

TO CLIENT OR ANY OTHER PERSON OR COMPANY FOR

ANY CLAIM OR DAMAGE OF ANY KIND (WHETHER IN

TORT, CONTRACT OR OTHERWISE) ARISING OUT OF,
OR RELATING TO, BANK’S PERFORMANCE UNDER THIS
MASTER AGREEMENT OR BANK’S PROVISION OF ANY

SERVICE, EXCEPT TO THE EXTENT THAT SUCH CLAIMS

OR DAMAGES ARE DETERMINED BY BINDING
ARBITRATION IN ACCORDANCE WITH SECTION 16 OR A

COURT OF COMPETENT JURISDICTION BY A FINAL AND

NON-APPEALABLE ORDER TO HAVE RESULTED FROM
BANK’S GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT; PROVIDED THAT IN NO EVENT SHALL

BANK OR ANY OF ITS AFFILIATES, OR ANY OF THEIR

RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES,

AGENTS, OR SERVICE PROVIDERS, HAVE ANY LIABILITY

TO CLIENT OR ANY PERSON OR COMPANY FOR

INDIRECT LOSSES, SPECIAL, CONSEQUENTIAL,

INCIDENTAL, OR PUNITIVE DAMAGES, OR DAMAGES

FOR LOST BUSINESS, PROFITS, OR REVENUE,

GOODWILL, OR ANTICIPATED SAVINGS, EVEN IF BANK

OR ANY SUCH OTHER PARTY IS AWARE OF THE

POSSIBILITY OF, OR COULD REASONABLY FORESEE,
SUCH DAMAGES.

TO THE EXTENT THAT PROVISIONS OF APPLICABLE
LAW PROHIBIT AN AGREEMENT TO DISCLAIM A BANK’S

RESPONSIBILITY FOR ITS FAILURE TO EXERCISE
ORDINARY CARE, BANK’S RESPONSIBILITY TO CLIENT

UNDER THIS MASTER AGREEMENT AND THE SERVICE

DOCUMENTATION IS LIMITED TO THE EXERCISE OF

ORDINARY CARE IN PROVIDING THE SERVICES TO
CLIENT. ORDINARY CARE IS TO BE EVALUATED BASED

ON REASONABLE COMMERCIAL BANKING STANDARDS
PREVAILING IN BANK’S INDUSTRY AND LOCATION FOR
SIMILARLY SITUATED COMMERCIAL BANKS.

Bank’s cumulative liability for all loss or damage arising from or relating to this Master Agreement and any Service,
regardless of the form of action, is limited to direct losses attributable to Bank’s gross negligence or willful misconduct and limited to an amount not to exceed twelve (12) times the fees paid by Client during the month immediately preceding the month in which the loss or damage was incurred.

Bank is not liable for any failure or delay in carrying out any of its obligations under this Master Agreement or any Service Documentation if such failure or delay results from Bank acting in accordance with requirements of Applicable Laws or from acts of God, strike or stoppage of labor, power or equipment failure, disruptions in telecommunications systems or the financial markets, adverse weather conditions, or any other cause beyond its control. Bank has no responsibility and will incur no liability for any act or failure to act by any other financial institution, intermediary, or any other third party including any failure, delay or error by any Federal Reserve Bank or other intermediary bank in timely presenting data or checks to Bank.

10. Fees and Charges.

Client agrees to pay fees and other charges for each Service as Bank establishes from time to time or maintain
compensating balances as Bank may permit. Bank may
amend its fees and charges from time to time in accordance with Section 12 below. Client authorizes Bank to access any one or more Accounts to debit fees and other charges, even if doing so creates an overdraft.

Bank may provide Client with monthly compensation
statements indicating the fees owing by Client and debited from one or more Accounts for the Services and the interest paid or charged to Client. Client will verify the statements and notify Bank in writing of any errors, irregularities or omissions within (a) 30 days of the mailing of the compensation
statement to Client, or (b) if not mailed, within 30 days of the delivery or availability of the compensation statement to Client.

At the end of the 30-day period it will be conclusively settled between Client and Bank that the compensation statement is accurate, all fees and amounts charged as set out in the compensation statement are properly chargeable, and Client will not be entitled to be credited with any sum not credited in the compensation statement.

Notwithstanding the foregoing, Bank has the right at any time to make adjustments for any amounts improperly credited and any alleged errors, irregularities, or omissions or to charge back items for which payment has not been received.

Bank may assess finance charges on any amount due to Bank under this Master Agreement that is not paid by Client within thirty (30) days of receipt of Client’s statement or an invoice showing the amount due.

11. Notices.

Except as may be otherwise specified in the Service
Documentation for a particular Service, all notices and other communications by Client or Bank relating to this Master Agreement and/or any Service Documentation generally shall be in writing and:
• if to Client, addressed to Client’s primary address as shown on Bank’s records or, if permitted by law,
delivered electronically;
• if to Bank, addressed to Documentation Analysis and
Control at: BMO Bank N.A., Documentation Analysis
and Control, 320 South Canal Street, 14W, Chicago,
Illinois 60606, or at such other address as Bank may
specify in writing.

Any notice or communication to Bank will be effective when it is actually received, and Bank has had a reasonable time to act on it. Bank is entitled to rely on any written notice or other communication that Bank believes in good faith to be genuine and to have been signed, sent, or authorized by Client’s authorized representative. Bank is permitted, at its sole discretion, to act on email notices from Client sent to [email protected] or otherwise, although Bank shall be under no obligation to do so. Bank reserves the right to give notices and communications to Client in such form or medium as Bank considers reasonable and by such means as are
permitted by Applicable Law.

12. Amendments.

Bank may amend this Master Agreement or the fees and
charges applicable to a particular Service by written notice sent to Client in accordance with Section 11, above. Except

Rev 12/2025_Ver. 4.1 Page 6 of 11
as specifically provided in the Service Documentation for any Service, any amendment to this Master Agreement (including changes in fees and charges) will be effective thirty (30) days after notice of the amendment is sent to Client. This paragraph does not apply to the changes and updates described in
Section 2 of this Master Agreement under “Service Changes”.

13. Representations and Warranties; Agreement to
Provide Information.
(a) Representations and Warranties of Client. In addition to any other representations and warranties herein or in the Service Documentation, Client represents and warrants
to Bank, and agrees with Bank, that:
(i) its execution, delivery, and performance of this
Master Agreement has been duly and properly
authorized by all necessary corporate or other
organizational action and governmental action and
does not violate any provision of law, its certificate or articles of incorporation, by-laws or other
organizational agreement, or any material agreement
binding upon it;
(ii) the person or persons signing this Master Agreement on its behalf are authorized to do so;
(iii) this Master Agreement is its valid, legal and binding obligation enforceable against it in accordance with
its terms; and
(iv) the establishment and maintenance of the Accounts
with Bank and Client’s use of the Services are for
legitimate business purposes only and comply fully
with Applicable Law.
(b) Representations and Warranties of Bank. Bank
represents and warrants to Client, and agrees with Client that:
(i) its execution, delivery, and performance of this
Master Agreement has been duly and properly
authorized by all necessary corporate or other
organizational action and governmental action and
does not violate any provision of law, its charter or
by-laws or other organizational agreement, or any
material agreement binding on it;
(ii) the person or persons signing this Master Agreement on its behalf are authorized to do so; and
(iii) this Master Agreement is its valid, legal, and binding obligation enforceable against it in accordance with
its terms.

EXCEPT AS EXPRESSLY PROVIDED ELSEWHERE IN

THIS MASTER AGREEMENT OR IN ANY SERVICE

DOCUMENTATION, BANK MAKES NO OTHER

REPRESENTATIONS OR WARRANTIES, EITHER

EXPRESS OR IMPLIED, OF ANY KIND WITH RESPECT
TO ANY SERVICE OR BANK’S PERFORMANCE OF

THE SERVICES, INCLUDING, WITHOUT LIMITATION,

THOSE OF MERCHANT-ABILITY AND FITNESS FOR A
PARTICULAR PURPOSE. NO DESCRIPTIONS OR

SPECIFICATIONS CONSTITUTE REPRESENTATIONS
OR WARRANTIES OF ANY KIND.
(c) Agreement to Provide Information. Client agrees that Client shall promptly furnish to Bank such information
respecting Client’s business and financial condition, in such form and manner, as Bank may reasonably request
from time to time. Client represents and warrants to Bank that all such information is true, complete, and correct in all material respects.

14. Affiliates.

If Client has one or more Affiliates, Bank may upon request provide one or more Services to that Affiliate under this Master Agreement. If Bank agrees to allow an Affiliate to access a Service under this Master Agreement, the Affiliate and Client must execute and deliver to Bank an addendum to this Master Agreement or other appropriate documentation required by Bank. Any such Affiliate using Services becomes a party to this Master Agreement, the relevant Service Selection Form and Service Documentation on a joint-and-several basis as “Client”.

15. Other Provisions.
(a) This Master Agreement and the Service Documentation constituting a part of this Master Agreement together with the Account Agreement constitute the entire agreement
between Client and Bank with respect to the Services and supersedes and replaces any previously made proposals,
representations, warranties or agreements, express or
implied, either oral or in writing.
(b) Client may not assign this Master Agreement or any of Client’s rights hereunder without Bank’s prior written
consent. Bank may not assign this Master Agreement
without Client’s prior written consent, except that Bank may assign this Master Agreement, in whole or in part,
without such consent to any of Bank’s Affiliates or in
connection with the merger, consolidation, reorganization or acquisition of substantially all the assets of Bank. Any purported assignment of this Master Agreement by Client without Bank’s written consent is void.
(c) No party’s failure or delay in exercising any right or remedy under this Master Agreement will operate as a
waiver of such right or remedy; and no single or partial exercise by a party of any right or remedy under this
Master Agreement will preclude any additional or further exercise of such right or remedy or the exercise of any other right.
(d) If a provision of this Master Agreement is held to be invalid, illegal, or unenforceable, the validity, legality, or enforceability of the other provisions of this Master
Agreement will not be affected or impaired by such
holding.
(e) This Master Agreement is binding upon and will inure to the benefit of the parties and their respective successors and permitted assigns. Except as explicitly provided
herein, this Master Agreement is not for the benefit of any other person and no other person shall have any right
against Client or Bank hereunder.
(f) Where appropriate, terms defined in this Master
Agreement in the singular shall be deemed to include the

Rev 12/2025_Ver. 4.1 Page 7 of 11
plural and those defined in the plural shall be deemed to include the singular.
(g) This Master Agreement may be executed in multiple
counterparts with the same effect as if Client and Bank had executed the same document, and all counterparts
must be construed together as one instrument. Delivery
of an executed counterpart by facsimile or other electronic means is effective as delivery of a manually signed
counterpart.
(h) This Master Agreement is governed by and must be
construed in accordance with the laws of the State of
Illinois, including the Uniform Commercial Code as in
effect in the State of Illinois from time to time (the “UCC").

The parties acknowledge that certain provisions of the
UCC contain provisions which by the express terms of the UCC may not be varied by agreement of the parties (a
"Non-variable Obligation"). To the extent that any
provision of this Master Agreement purports to vary such Non-variable Obligation, the parties acknowledge that
their respective rights and obligations under this Master Agreement are subject to the Non-variable Obligation.

16. Claims Subject to Arbitration.

Bank and Client agree to arbitrate all disputes or claims between them arising out of or relating in any way to the Services, this Master Agreement, any applicable Service Descriptions, any other agreement related to the Services, or any transactions arising hereunder or thereunder, whether based in contract, tort, statute, fraud, misrepresentation or any other legal theory. This arbitration provision is intended to be broadly interpreted and to cover, without limitation, any claims that arose before the effective date of this Master Agreement or any prior services agreement (including, but not limited to, claims relating to advertising, promotions, or disclosures) and any claims that may arise after the termination of this Master Agreement. This arbitration provision will survive the
termination of the Services and/or this Master Agreement.

This Master Agreement evidences a transaction in interstate commerce, and thus the Federal Arbitration Act, 9 U.S.C. § 1 et. seq., governs the interpretation and enforcement of this provision. An American Arbitration Association (“AAA”)
arbitrator will decide the substance of all Claims in accordance with all Applicable Law, including recognized principles of equity and statutes of limitations, and will honor all claims of privilege recognized by law.

Unless both Client and Bank agree otherwise, each party must bring all related or similar Claims in a single arbitration proceeding. If Client or Bank later initiates a subsequent arbitration asserting Claims that are related or similar to ones that were raised by such party in an earlier-filed arbitration, the AAA or the arbitrator will either: (i) consolidate the subsequent arbitration with the earlier proceeding if it is ongoing or (ii) dismiss the subsequent arbitration if it raises Claims that would be barred by Applicable Law if brought in court.
(a) Notice of Dispute and Arbitration Procedures. A party who intends to pursue a Claim must first send to the other a letter describing the Claim and containing the information described below (a “Notice of Dispute”). Any Notice of
Dispute sent to Bank should be addressed to:

BMO Bank N.A.

Documentation Analysis and Control
320 South Canal Street, Floor 14W
Chicago, IL 60606
Any Notice of Dispute sent to Client by Bank will be sent to the address in Bank’s records that is associated with Client’s Account at the time the Notice of Dispute is sent.

The Notice of Dispute must (a) describe the nature and
basis of the Claim; (b) set forth the specific relief sought; (c) set forth the name and address of the claimant; and (d) include the Services and/or the provision of the
applicable agreement to which the Claim relates. If Bank and Client do not reach an agreement to resolve the
Claim described in the Notice of Dispute within forty-five (45) days after the Notice of Dispute is received, Client or Bank may commence an arbitration proceeding with the
AAA. If Client or Bank attempts to commence arbitration proceedings before providing the requisite Notice of
Dispute, the other party may inform the AAA of this
agreement and direct it to refrain from commencing
administration of arbitration proceedings until the
requisite time period for notice has passed. Neither Client nor Bank will disclose to the arbitrator the existence, amount, or terms of any settlement offers made by either party until after the arbitrator issues a final award
resolving the Claim.

The arbitration will be governed by the AAA’s Commercial Dispute Resolution Procedures, as amended from time to
time (the “AAA Rules”) as modified by this Agreement,
and will be administered by the AAA.

The arbitrator is bound by the terms of this Master
Agreement. All issues are for the arbitrator to decide, except those issues relating to the arbitrability of Claims or the scope, and enforceability of this arbitration
provision, including the interpretation of the prohibition of class and representative actions and non-individualized relief, are for the court to decide. The right to a hearing will be determined by the AAA Rules. Any in-person
arbitration hearing will take place in Chicago, Illinois.

Regardless of the manner in which the arbitration is
conducted, the arbitrator, upon the request of either party made prior to the closing of the hearing (or, if there is no oral hearing, prior to or along with submission of final documents to the AAA), will issue a reasoned written
decision sufficient to explain the essential findings and conclusions on which the award, if any, is based. Unless otherwise agreed by Client and Bank, any award will be
rendered by the arbitrator not later than fourteen (14) days from the date of the closing of the hearing or, if there is no oral hearing, from the date of the AAA’s transmittal of the final statements and proofs to the arbitrator in accordance with the AAA Rules.
(b) Prohibition of Class and Representative Actions and NonIndividualized Relief. The arbitrator may award injunctive relief only in favor of the individual party seeking relief and only to the extent necessary to provide relief necessitated by that party’s individual claim; any injunctive relief must be individualized in nature and cannot affect individuals other than the claimant. CLIENT AND BANK AGREE

THAT EACH MAY BRING CLAIMS AGAINST THE
OTHER ONLY IN CLIENT’S OR BANK’S INDIVIDUAL

Rev 12/2025_Ver. 4.1 Page 8 of 11

CAPACITY AND NOT AS A PLAINTIFF OR CLASS

MEMBER IN ANY PURPORTED CLASS OR

REPRESENTATIVE PROCEEDING, OR AS A PRIVATE

ATTORNEY GENERAL OR ON BEHALF OF THE
GENERAL PUBLIC. Further, unless both Client and Bank
agree otherwise, the arbitrator may not consolidate more than one person’s claims and may not otherwise preside
over any form of a representative or class proceeding. If a court decides that any part of this arbitration provision (other than the prohibition of class or representative
actions and/or consolidation) is invalid or unenforceable, the other parts of this arbitration provision will still apply.

However, if a court decides that this paragraph’s
prohibition of class or representative actions and/or
consolidation is invalid or unenforceable, then the entirety of this arbitration provision will be null and void.
(c) Access to Government Agencies. This arbitration
provision does not preclude Client from bringing issues to the attention of federal, state, or local agencies. Such agencies can, if the law allows, seek relief against Bank on Client’s behalf.
(d) Other Remedies. This arbitration provision and the
exercise of any of the rights Client and Bank have under this provision will not prohibit Client or Bank from
exercising any lawful rights either Client or Bank have to use other remedies available to preserve, foreclose or
obtain possession of real or personal property or exercise self-help remedies, including set-off rights as described in this Master Agreement.
[Remainder of page intentionally blank]

Rev 12/2025_Ver. 4.1 Page 9 of 11
By signing below, Client and Bank agree to the terms and conditions set forth in this Treasury Services Master Agreement, effective as of the date set forth in the space provided under Bank’s signature below.

* Provide second signature if required by Account Resolutions or other authorizing documents accepted by Bank.

X _________________________________ X ______________________________ By: By:

Title: Title:

Tax Identification Number:

BMO BANK N.A.

X _________________________________
Title: Authorized Individual
Dated________________________, ______

Rev 12/2025_Ver. 4.1 Page 10 of 11

SERVICE SELECTION FORM
This Service Selection Form (“Service Selection Form”) is a part of the Treasury Services Master Agreement (as amended from time to time “Master Agreement”) between (“Client”) and BMO Bank N.A. (“Bank”). Capitalized terms used but not defined in this Service Selection Form have the meanings given in the Master Agreement.

Service Selections.

Client hereby elects to receive and requests from Bank the Services identified below in this Service Selection Form. Bank will provide to Client the Service(s) selected by Client upon Bank’s acceptance and approval of this Service Selection Form and the completion of any required setup process.

Representations and Warranties.

In addition to the terms and conditions included in the Master Agreement:
(a) Client represents and warrants to Bank that Client has received and read the Service Documentation for the Services Client selects and Client agrees to be bound by all terms, conditions and procedures included in the Master Agreement, this Service Selection Form, and all applicable Service Documentation. (b) The person executing this Service Selection Form on Client’s behalf certifies to Bank that he or she is an Authorized Individual, and/or is otherwise authorized to act on Client’s behalf, as provided in Client’s authorizing documents, with full power and authority to execute this Service Selection Form on Client’s behalf.

Designated Personnel.

Client acknowledges and agrees that when Client specifies to Bank a person as a Corporate Administrator, Designated Contact, or otherwise, that person has the requisite authority to perform the duties of the position as described in the Master Agreement and/or the relevant Service Documentation on Client’s behalf.

Changes.

If Client wishes to change any of the features or service options for a Service already selected, including changing designated personnel for a particular Service, Client may do so by having an Authorized Individual complete and execute a setup form provided by Bank, or some other form acceptable to Bank. If Client chooses to communicate a change to Bank by any other means, Bank is entitled (but not obligated) to rely on the change communicated to Bank if Bank in good faith believe it was communicated to Bank by someone authorized to do so on Client’s behalf.

Additional Services.

If Client wishes to add a Service, Client must complete a new Service Selection Form for the additional Service and any other setup documentation Bank may require.

Rev 12/2025_Ver. 4.1 Page 11 of 11
SERVICES SELECTED:

By signing below, Client selects the Services indicated above and certifies that Client has received, read and agree to the terms and conditions of the Service Documentation for the selected Services:

X
* Provide second signature if required by Account
Resolutions or other authorizing documents accepted by
Bank.

X
Name:

Title: Name:

Title:

Account Validation Service Foreign Exchange Service
ACH Fraud Control Service Liquidity Portal Service
ACH Origination Service Loan Pay and Drawdown Service
ACH Third Party Servicer/Sender Lockbox Distributed Capture Service Application Programming Interfaces (API) Multicurrency Deposit Account Service Autoconnect Service National Retail Lockbox Service
BMO Sync National Wholesale Lockbox Service
Check Debit Block Service Online Banking for Business Service Check Imaging Service Online Billpay Consolidator Service Cash Vault Service Online Billpay Service
Comprehensive Payables/EDI Origination Service Payments with Zelle Service Comprehensive Payables Service (One or More Pay
Types)
Positive Pay Service
Comprehensive Receivables/EDI Collections Service Real Time Payment Services Controlled Disbursement Service Regional Lockbox Service (Basic Wholesale, Wholesale, Hybrid and Retail Lockbox)
Convenience Pay Service Remote Deposit Service
Corporate Image Cash Letter Service Reverse Positive Pay Service Commercial Sweep to Loan Service Safekeeping Service
Commercial Sweep to Loan and Mutual Fund
Service
Sweep to Corporate Money Market
Commercial Sweep to Mutual Fund Service Tax Payment Service Correspondent Image Cash Letter Service V-PAYO Service
DirectBiller / DirectPay Manager Service Wire Transfer Service File Transfer Facility Service
BMO BANK N.A.

X
Its: Authorized Individual
Accepted on________________________, ______

Dedication, Expertise,
and Reliability for
Today and Beyond
Contact Information:

Thach “Tot” Vang
Vice President, Relationship Manager
Institutional Markets • Government Banking
M: 949-233-9572
[email protected]
Prashant (Shawn) Gandhi
Director, Senior Treasury Consultant
Institutional Markets • Treasury & Payment Solutions
M: 909-298-7499
[email protected]
Proposal for
Comprehensive Banking
Services
Request for Proposals – 2026-01
March 26, 2026
Prepared for:

City of Los Alamitos
Exhibit A

This page left blank intentionally.

PROPOSAL FOR CITY OF LOS ALAMITOS

TABLE OF CONTENTS
INTRODUCTORY SECTION ...................................................................................................... 1 Title Page ................................................................................................................................................ 1 Letter of Transmittal............................................................................................................................... 2 EXECUTIVE SUMMARY........................................................................................................... 4 E. QUALIFICATION EXPERIENCE.............................................................................................. 8 F. RELATIONSHIP MANAGEMENT......................................................................................... 18 G. GENERAL BANKING SERVICES .......................................................................................... 28

1. Deposit Services.........................................................................................................................28

2. Returned Item Processing .........................................................................................................30

3. Availability of Deposits..............................................................................................................32

4. Positive Pay................................................................................................................................34

5. Automated Clearing House (ACH) Processing ...........................................................................41

6. Reconciliation Services..............................................................................................................46

7. File Transfer...............................................................................................................................49

8. Overnight Investment/Investment Sweep................................................................................52

9. Earnings Credit Rates (ECR).......................................................................................................56

10. Merchant Services / Secured E-Payments.................................................................................58

11. Disaster recovery.......................................................................................................................68

12. Dispute Resolution Process.......................................................................................................70 H. CONTROL ........................................................................................................................ 72 I. SERVICE LEVEL AGREEMENT (SLAS) ................................................................................... 76 J. IMPLEMENTATION/CONVERSION..................................................................................... 81 K. NEW SERVICES AND IDEAS............................................................................................... 90 L. CONTRACT/REPORTS TO INCLUDE IN THE PROPOSAL ..................................................... 107 M. LEGAL AND FIRM ISSUES............................................................................................... 109 N. PRICING AND INCENTIVES ............................................................................................. 109 Pricing Forms......................................................................................................................................110 EXHIBITS ........................................................................................................................... 115 Exhibit 1. Funds Availability Schedule ................................................................................................116 Exhibit 2. Account Reconcilement Report Guide ...............................................................................120 Exhibit 3. U.S. Investment Sweeps Rates 03/23/2026 .......................................................................157 Exhibit 4. SOC 2 Report (2024) and Bridge Letter..............................................................................159 Exhibit 5. Bank at Work Employee Flyer ............................................................................................273 Exhibit 6. SkylightOne® Prepaid Card................................................................................................. 280 Exhibit 7. Affordable Lending Program ..............................................................................................287 Exhibit 8. SmartProgress® Flyer..........................................................................................................290 Exhibit 9. Treasury Services Master Agreement ................................................................................292 Exhibit 10. Commercial Account Agreement .....................................................................................304

PROPOSAL FOR CITY OF LOS ALAMITOS
Exhibit 11. Treasury Services / Product Schedules and Addenda .....................................................324 Exhibit 12. Authorized Signer and Resolution Forms........................................................................326 Exhibit 13. Online Banking and Treasury Services User Agreements.................................................328 Exhibit 14. Draft Professional Services Agreement Redlines .............................................................334 Exhibit 15. Contract for Deposit of Public Funds...............................................................................358 Exhibit 16. Sample Online Banking for Business Reports...................................................................362 Exhibit 17. Merchant Card Services Sample Government Agreement ..............................................383 Exhibit 18. Sample Bank Statement ...................................................................................................393 Exhibit 19. BMO Sample Account Analysis Statement and User's Guide...........................................399 Exhibit 20. Business Continuity Management Readiness Disclosure.................................................408 Exhibit 21. Merchant Card Services Sample Reports .........................................................................411 List of Figures
Figure 1. BMO's Physical & Digital Footprint................................................................................................ 8 Figure 2. 2024-2025 Orange County Lending & Community Development Activities ...............................11 Figure 3. 2025 Representative Industry Recognition for BMO...................................................................13 Figure 4. Positive Pay Sample Report .........................................................................................................35 Figure 5. Proactive notifications with Alerts subscription..........................................................................36 Figure 6. Tyler INCODE/BMO Workflow .....................................................................................................41 Figure 7. Spend Dynamics Dashboard ........................................................................................................67 Figure 8. BMO V-PAYO Dashboard .............................................................................................................67 Figure 9. BMO's Business Continuity Framework.......................................................................................69 Figure 10. Shared Administration Responsibilities Structure .....................................................................74 Figure 11. BMO's Onboarding Methodology ..............................................................................................83 Figure 12. Comprehensive Payables: Single-file, multi-payment process..................................................96 Figure 13. DirectBiller Workflow...............................................................................................................100 List of Tables
Table 1. Treasury and Payment Solutions...................................................................................................12 Table 2. BMO's Local Branches...................................................................................................................14 Table 3. BMO Bank N.A. Bank Ratings........................................................................................................15 Table 4.BMO Local Branch Locations..........................................................................................................28 Table 5. ACH Processing Deadlines.............................................................................................................42 Table 6. Account Reconciliation Reports....................................................................................................48 Table 7. OLBB Scheduler Operational Advantages for the City ..................................................................50 Table 8. Investment rates history for the past three years........................................................................54 Table 9. Government and Money Market Mutual Funds...........................................................................55 Table 10. BMOs standard ECR rates for the past two years.......................................................................57 Table 11. OLBB Audit Reports.....................................................................................................................74 Table 12. Wire Cutoff Times .......................................................................................................................78 Table 13. Sample Implementation Approach and Conversion Plan ...........................................................88 Table 14. Service Enhancement Options....................................................................................................91 Table 15. Employee Financial Well-being Service Enhancement Options................................................105

1 PROPOSAL FOR CITY OF LOS ALAMITOS

INTRODUCTORY SECTION
Title Page
RFP Subject Comprehensive Banking Services
Proposer BMO Bank N.A.

Entity Financial Institution
Local Address 4400 MacArthur Blvd., Suite 600, Newport Beach, CA 92660 Office Number 949-797-1946
Contact Thach “Tot” Vang
Vice President, Government Relationship Manager
Government Banking | Institutional Markets
BMO Bank N.A.
4400 MacArthur Blvd., Suite 600
Newport Beach, CA 92660
M: 949-233-9572 | [email protected]
Submission Date March 26, 2026

Letter of Transmittal
March 26, 2026
Attention: Craig Koehler, Finance Director, City Treasurer Attention: Barbara Biscocho, Finance Manager
City of Los Alamitos
3191 Katella Ave
Los Alamitos, CA 90720
RE: Request for Proposals – 2026-01 – Comprehensive Banking Service Dear Mr. Koehler and Ms. Biscocho:

We have read the City of Los Alamitos (the “City”) Request for Proposals – 2061-01 and fully understand its intent. We certify that BMO Bank N.A. (“BMO”) meets the minimum qualifications and offers each of the services listed in Section III (A) and Section III (B) of the proposal.

Our understanding of the City’s required services
The City has expressed a clear and compelling need to modernize its banking services to improve operational efficiency, reduce costs, and enhance the overall financial management experience for City staff. In response to the City’s RFP for Comprehensive Banking Services, our team is presenting a comprehensive, futurefocused solution designed to directly address each of the City’s priority areas, from enhancing digital banking capabilities to delivering responsive customer support and optimizing earnings credit rates.

A modern, technology-based approach
Our proposed approach centers on providing the City with modern, intuitive, and cost-effective banking services that replace outdated processes and remove longstanding operational pain points. By offering a robust integrated ACH module within our Online Banking for Business (OLBB) platform, we support the City’s goal of reducing dependence on manual check printing, improving efficiency, lowering processing costs, and increasing security. OLBB is our user-friendly, internet-based, secure platform that makes account management clearer, faster, and more accessible for City personnel, addressing issues with the difficulty and inconsistency of the current platform.

To further support the City’s effort to streamline Accounts Payable, we recognize that the current process requires separate workflows for each payment type and a manual Positive Pay file upload, creating unnecessary steps. By shifting to a single secure multi‑payment file using Comprehensive Payables, the City can consolidate ACH, check, and wire payments into one automated process while eliminating separate Positive Pay uploads and maintaining strong fraud protection with integrated reconciliation and Payee Positive Pay tools. This unified structure reduces manual effort, enhances audit readiness through centralized reporting, and provides a smoother path as the City continues its transition toward more efficient electronic payments.

Recognizing the City’s concerns regarding reliability and responsiveness, we provide dedicated client support, strengthened service-level commitments, and a proactive relationship management model to ensure timely, knowledgeable assistance. To further reduce the City’s banking costs, our proposal includes a Hybrid account structure with a competitive Earnings Credit Rate (ECR) of 2.85% and an interest rate of

2.75% on excess balances that align with the City’s target range, designed to produce meaningful offsets to monthly service charges.
4400 MacArthur Blvd • Newport Beach • CA • 92660 • www.bmo.com

We also understand the importance of a seamless transition. Our implementation plan aligns with the City’s desired schedule, allowing for a potential transition by July 2026. Our team provides full onboarding support, data conversion assistance, staff training, and risk mitigation strategies to ensure uninterrupted financial operations.

Overall, our proposal is designed to provide the City with a modern, transparent, and service-driven banking partnership, one that is responsive to current needs while scalable for future growth. We look forward to the opportunity to partner with the City and deliver a banking program that enhances daily operations and strengthens financial management for years to come.

The fees and rates proposed will be valid for 90 days after submission, and quoted deposit rates are indicative of market conditions on the date provided and are subject to change.

Building a strong partnership with the City of Los Alamitos is a high priority for us. Thank you for the opportunity to work with you on this very important initiative, and we look forward to meeting with you soon.

Prashant Gandhi is authorized to make representations on behalf of BMO Bank N.A. and has signed the Transmittal Letter accordingly. Please find contact details for Prashant below.

Sincerely,

SERVICE MODEL & LOCAL RESPONSIVENESS IMPLEMENTATION, CONTROLS & RISK MANAGEMENT Why BMO vs. Large National Banks Built for Municipal Operations BMO combines national strength with local
accountability, assigning dedicated, California based
relationship managers, treasury consultants, and
client service advisors. This structure avoids
centralized service queues and rotating contacts,
delivering faster issue resolution, clear escalation, and consistent day-to-day support for City staff.

BMO reduces operational risk through stable staffing
before, during, and after implementation, a structured
onboarding approach, and public sector aligned controls.

Defined service levels, integrated reporting, and disciplined escalation support audit readiness, ERP transition, and predictable financial operations.

Prashant (Shawn) Gandhi
Director, Senior Treasury Consultant
Treasury & Payment Solutions
300 S. Grand Ave., Suite 1200
Los Angeles, CA 90071
M: 909-298-7499 | [email protected]
Thach (Tot) Vang
Vice President, Government Relationship Manager
Government Banking
4400 MacArthur Blvd., Suite 600
Newport Beach, CA 92660
M: 949-233-9572 | [email protected]

4 PROPOSAL FOR CITY OF LOS ALAMITOS

EXECUTIVE SUMMARY
Advancing Operational Efficiency Through Integrated Banking The City of Los Alamitos is seeking a banking partner that can support efficient day‑to‑day operations while enabling continued modernization across treasury and payment functions. As transaction volumes increase and processes evolve, the City requires a streamlined approach that reduces administrative effort, improves visibility, and maintains strong controls without disrupting essential services.

This proposal presents an integrated banking solution that consolidates deposits, ACH, wires, Positive Pay, reconciliation, reporting, and imaging into a single secure platform.

Supporting a Smooth Transition to Tyler INCODE1
The City’s planned implementation of Tyler INCODE represents an important step toward greater automation and efficiency. A successful transition requires a banking platform that integrates seamlessly with the City’s ERP environment and supports electronic payments without introducing additional risk.

Online Banking for Business (OLBB) provides the City with a single secure platform for ACH, wires, Positive Pay, reconciliation, reporting, and imaging. This consolidation reduces manual steps, improves visibility, and supports faster research and month end close.

Strengthening Financial Controls and Risk Management
Safeguarding public funds remains a top priority for the City. As payment activity becomes more electronic, maintaining strong internal controls and consistent oversight is essential to managing risk while avoiding unnecessary administrative burden.

OLBB incorporates layered controls across all payment channels. These include Positive Pay and Payee Positive Pay for checks, ACH debit blocks and filters, dual approvals, user entitlements, real-time alerts, and continuous monitoring. Together, these features support segregation of duties, improve exception management, and align with public sector audit and compliance expectations. A comprehensive, FFIEC aligned disaster recovery and business continuity framework further ensures service availability and resilience.
1 Tyler INCODE® is a registered product of Tyler Technologies, Inc. References to Tyler INCODE within this proposal are provided for informational purposes only and are based on publicly available information and prior implementation experience. Tyler Technologies, Inc. is not affiliated with, and has not reviewed or endorsed, this proposal or the services described herein. Integration capabilities, timelines, and workflows are subject to City configuration, Tyler system requirements, and third-party approvals.

Banking Platform
City Today → With BMO
City Today:

Treasury, payment, and
reporting activities rely on
multiple systems and manual
processes, limiting visibility and
increasing staff effort.

With BMO:

A single, integrated online
banking platform consolidates
deposits, ACH, wires, Positive
Pay, reconciliation, reporting,
and imaging, reducing manual
work and providing timely
access to critical financial
information.

5 PROPOSAL FOR CITY OF LOS ALAMITOS
Maximized return on
cash balances through
premium rates.

Improving Visibility and Timeliness of Information
Timely access to accurate information is critical to effective cash management, reconciliation, and reporting. The City benefits from a platform that delivers clear, consistent data without the delays associated with manual reporting processes.

Through OLBB, City staff have access to balances, transactions, exception items, images, and reports within a single system. Automated alerts and role-based access enhance oversight while reducing the need for manual follow up. These capabilities support faster reconciliation, more efficient month end close, and improved audit readiness.

Delivering Responsive, Locally Based Support
Reliable service and clear accountability are essential to the City’s banking relationship. With a lean finance team, the City values responsive support, local decision-making authority, and clear escalation paths during critical processing periods or unexpected events.

BMO provides a dedicated, locally based government banking team with extensive California public sector experience. Defined service level commitments, proactive communication, and established escalation procedures ensure timely resolution of issues. Local branch access within a five-mile radius of City Hall provides convenient in-person support when required.

Controlled and Predictable Implementation
A successful banking relationship begins with a well-managed conversion process. The City requires an implementation approach that protects ongoing operations and prepares staff for long-term success.

We provide implementation that is delivered through a structured, low risk approach led by a dedicated implementation Project Manager. Account setup, connectivity testing, training, and go live activities are coordinated to minimize disruption. Role-based training, comprehensive testing, and a post implementation stabilization period support a smooth transition and confident adoption of new services.

Competitive Earnings Credit and Pricing
Five-year Price Guarantee: We will guarantee fixed term pricing for 5 years based on the estimated volumes contained in the pricing proposal and with a completed Treasury Services Master Agreement. Please note if the City adds or changes services, prices for those changes may require revised pricing.

Competitive Earnings Credit and Interest Rate: Of particular note is our Earnings Credit Rate (ECR) offering of 2.85% and interest rate of 2.75%. This rate will optimize the use of your balances maintained in the Hybrid checking account to pay for service fees and earn hard dollar interest.

Integrated online
banking platform with
customizable reporting,
single sign-on, and
Bio-authentication.

Advisory Team focused
on helping you streamline
processes for maximum
efficiencies
Onboarding
Digitization saves you
time with an automated
process to securely
open new deposit
accounts and treasury
services.

Guaranteed pricing for
5 years of the contract
term.

6 PROPOSAL FOR CITY OF LOS ALAMITOS
Please note, quoted rates are indicative of market conditions on the date provided and are subject to change.

With the ECR offering of 2.85%, and interest rate of 2.75% under a Hybrid account, the City can offset all its banking-related fees with a peg balance of approximately $500,000.00 and earn interest of approximately $6K/month. If the city chooses not to enroll in a Hybrid account, the excess funds can be swept to the various options outlined below, helping the City earn competitive rates.

Conversion Credit & 6 months analysis fee waiver : $25K conversion allowance to be used towards any transition related cost to BMO and 6 months of account analysis fee waiver, including all cash management setup fees, and initial account supplies (check stock, deposit tickets, deposit bags and endorsement stamps). Conversion allowance can be utilized towards services and supplies to help the City offset any cost. Conversion allowance is valid up to 12 months upon contract execution.

Competitive interest rates and sweep options: We can provide the City investment tools for short-term to long-term solutions; select from an array of products such as investment sweep accounts, collateralized CD’s, or a money market deposit account.

This pricing approach supports budget certainty and long‑term financial stewardship while allowing flexibility as the City’s needs change.

Try a Demo of Online Banking for Business
The City is invited to experience a live demonstration of OLBB to see how an integrated platform delivers real time visibility, streamlined workflows, and intuitive controls that support daily treasury operations and long-term modernization goals. Press the “View Demo” button below. Click “Sign In” for demo.

Summary
Our proposal offers the City of Los Alamitos a secure, efficient, and future ready banking partnership.

By supporting operational efficiency, enabling seamless ERP integration, strengthening controls, improving visibility, and delivering responsive local support, the proposed solution aligns with the City’s near-term priorities and long-term financial stewardship goals. $25,000 conversion
allowance plus
waived account
analysis fees for six
months, including all
cash‑management
set‑up fees and initial
account supplies.

Maximized return on
cash balances through
premium rates.

7 PROPOSAL FOR CITY OF LOS ALAMITOS
City Today → With BMO
At–a–Glance Service Comparison
Banking Platform
City Today: Multiple systems and manual steps
With BMO: One integrated online banking platform
Local Government Banking
City Today: Complex California compliance oversight
With BMO: Locally based California public-sector team
ACH and ERP Integration
City Today: Manual uploads during ERP transition
With BMO: Automated ACH integrated with Tyler INCODE
Card and Virtual Payment Capabilities
City Today: Traditional payments; check‑heavy processes With BMO: Fewer checks, stronger security, simpler reconciliation Reconciliation and Reporting
City Today: After-the-fact spreadsheet reconciliation
With BMO: Real-time reporting and imaging
Fraud Prevention
City Today: Manual review and isolated controls
With BMO: Layered automated fraud controls
Pricing and Earnings Credit
City Today: Ongoing monitoring of fees and balances
With BMO: Predictable pricing and competitive ECR
Implementation and Transition Continuity
City Today: Transition risk without structure
With BMO: Dedicated project manager and local support
Stable Investment Sweep and Daily Liquidity
City Today: Idle balances held overnight; manual liquidity management With BMO: Automated overnight sweeps, liquidity maintained, risk controlled

8 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES E. QUALIFICATION EXPERIENCE
• Provide a general overview, including governmental client service philosophy and a brief history of your organization, including parent and/or subsidiary companies, and the number of employees.
• Describe the bank’s experience in providing services to the public sector. Include a description of exclusive resources dedicated to the public sector, the number of governmental clients in California, types of services offered, and the bank’s knowledge of and adherence to the California Government Code.

Corporate Overview
With BMO, the City will be supported by a
banking partner with an “Outstanding”
CRA rating and more than two centuries of
experience serving communities across
North America. BMO Financial Group was
established in 1817 and is North America’s
eighth largest bank by assets(
1F
2), with total
assets of $1.5 trillion CAD and
approximately 53,000 employees as of
January 31, 2026. In the United States,
BMO Bank N.A. was established in 1882
and operates as a national banking
association headquartered in Chicago,
Illinois. Our United States holding
company, BMO Financial Corp, was
incorporated in Delaware on January 16,
1984, and oversees more than $252 billion USD in assets with more than 17,000 employees across the country. For the City, this scale and longevity translate to financial stability, consistent service delivery, and the ability to support public funds with proven governance and controls.

We serve more than 13 million customers through integrated operating groups in personal and commercial banking, wealth management, global markets, and investment banking. These capabilities allow us to provide the City with both the stability of a major financial institution and the specialized services needed to support public sector operations.

California Public Funds Infrastructure and Compliance
BMO is a qualified public depository for public funds under California Government Code Section 53648 and maintains direct banking relationships with the California State Treasurer’s Office and the State Controller’s Office. As of February 28, 2026, BMO maintains approximately $6 billion in public funds deposits across its national footprint. These public funds deposits are fully collateralized in accordance with applicable federal and state regulatory requirements, using eligible securities and/or Letters of Credit, as required by governing public funds statutes. 2 Source: Bloomberg GICS screen of North American banks by total assets as of January 31, 2026 Figure 1. BMO's Physical & Digital Footprint

9 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES BMO is an established member of the government banking community, and we understand the importance of ensuring that the City's interests remain secure and fully collateralized at all times. In accordance with California Government Code, we maintain various types of collateral allowed under the government code to secure the City's deposit relationship with us.

The City's deposits are collateralized through a pooled account pledged to the Local Agency Administration in Sacramento. Acceptable collateral includes U.S. Treasury Notes and Bills, Government National Mortgage Association (GNMA) securities, Agency MBS Securities, Numi (own state), and Letters of Credit (LOC). The choice of collateralization type is left to the decision of the team.

Our Government Banking team actively monitors and tracks deposits and monitors collateral daily and will make adjustments to pledged collateral as needed at a minimum 110% for pooled deposits held with securities as collateral or 105% for pooled deposits held under a Letter of Credit net of FDIC insurance coverage. If collateral levels fall below required thresholds, our Government Banking team promptly adds additional collateral to restore full coverage.

We understand and fully comply with the California Government Code, 53630 et seq., 53635.2, and 53649, and all other state and local laws governing public deposits.

Local Agency Investment Fund (LAIF) Depository
As a qualified depository for public funds, BMO has a direct banking relationship with the State Treasurer's Office and the State Controller's Office. Payments to LAIF are processed as internal (book) wires transfers through BMO's commercial online platform. Part of the online training provided to the City will include the LAIF wire template setup. BMO will consult with the City to determine the appropriate channel for other State and County apportionments, as necessary.

These capabilities reflect long standing operational fluency with California public fund mechanics and provide assurance that City workflows can be supported without disruption or re-engineering. BMO’s public sector platform is designed to align with the internal controls, reporting requirements, and governance standards expected of California municipalities.

Governmental Philosophy
Our approach to governmental clients is grounded in partnership, transparency, and long-term support.

The City is supported by BMO’s Institutional Markets/Government Banking team of 47 professionals, many of whom specialize exclusively in public-sector clients and understand California statutory, audit, and control requirements. This team is supported by additional lines of business, including public finance, treasury and payment solutions, safekeeping and custody, and risk management. By aligning these capabilities within a single relationship, the City gains clearer accountability, reduced handoffs, and solutions that reflect how municipal operations function in practice rather than in silos.

Public Sector Experience
BMO is not new to California. Through the acquisition of Bank of the West, BMO brings forward a longstanding California banking presence built over decades of continuous service to local communities, public agencies, and residents. The branches, bankers, and operational infrastructure that have supported California municipalities for generations remain in place today, now strengthened by BMO’s North American scale, capital strength, and government banking platform.

10 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES BMO is deeply committed to supporting government and public sector clients, serving more than 1,400 public entities across California and the nation. For more than 25 years, our dedicated Government Banking team has provided comprehensive financial solutions for cities, counties, states, schools, joint powers authorities, local government investment pools, and many other public institutions.

In California, we maintain relationships with more than 75 public sector clients including the State of California. Across these clients, we provide cash management, commercial card programs, broker and dealer services, safekeeping, credit services, and merchant services.

Our dedicated Government Banking team includes Relationship Managers, treasury and payment specialists, solution delivery professionals, and client service advisors, who collectively bring decades of public-sector experience and a deep understanding of the operational, statutory, and audit requirements that public sector agencies must meet. Many team members have long-term tenures with BMO (including predecessor Bank of the West), and prior experience serving in public roles, which helps us anticipate challenges, strengthen internal controls, and support modernization without disrupting essential services. This experience enables us to support the City with solutions, insights, and operational practices that reflect the realities of California municipalities, whether the need involves account structure design, fraud-prevention oversight, or day-to-day treasury operations.

Our coverage model brings together expertise from banking, treasury management, capital markets, and safekeeping under a One Client approach, ensuring that the City receives coordinated guidance rather than fragmented support. With dedicated resources located throughout California and supported by national specialists, our team provides practical insight, responsive service, and reliable escalation paths that align with the needs of public agencies. This structure allows us to help the City improve efficiency, enhance financial oversight, and maintain strong compliance with public-fund requirements.

Community Longevity, Stability, and Commitment
Within the region, BMO operates a network of full-service branches originally established as Bank of the West locations, many of which have served their communities continuously since the 1950s, 1960s, and 1970s. These branches have been long standing fixtures in their neighborhoods for more than half a century, reflecting stability, permanence, and commitment, qualities that are essential for public sector banking relationships. This continuity ensures that local governments continue to be supported by experienced California based banking professionals who understand the operational, regulatory, and community context in which public agencies operate.

BMO’s California presence is further reinforced by the retention of Bank of the West employees who live and work in the communities they serve. Many of these team members and their families have long standing ties to the region, contributing to a deep understanding of local priorities and reinforcing BMO’s role as a community partner rather than a transactional service provider.

Several nearby branches have been part of their neighborhoods for more than 65 years, including locations in South Gate (established 1952), Garden Grove (1954), Long Beach (1954), Stanton (1957), and Lakewood (1959). Additional branches in Westminster (1961) and Cerritos (1970), along with long-standing offices in La Mirada (1969), Huntington Beach (1973), and Anaheim (1974), reflect a sustained and growing presence across the region.

At BMO, public sector clients are not a segment. They are a specialty.

11 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES This longevity echoes the strengths highlighted in our Public Sector Experience section: a team with deep knowledge of public‑fund requirements, long‑standing tenure, and a service model designed for accountability, transparency, and operational resilience. These branches are not simply locations on a map, they are staffed by employees who live nearby, raise their families in these communities, support local organizations, and understand the day‑to‑day responsibilities of serving public agencies. Their proximity enables timely support, meaningful engagement, and a personal commitment to the City’s success.

Together, our history of public‑sector service and our decades‑old local branch network give the City confidence that BMO is not only present today, but is a stable, enduring partner for the long term.

Investing in Our Communities
BMO’s commitment to California communities is demonstrated through strong Community Reinvestment Act (CRA) performance and ongoing community investment. Prior to the acquisition, Bank of the West received an “Outstanding” CRA rating for its California activities. Following the acquisition, BMO Bank, N.A. also earned an “Outstanding” CRA rating, reflecting continuity of community focus and regulatory excellence. The most recent CRA Performance Evaluation dated April 3, 2023, is located here.

BMO is guided by a single purpose: to Boldly Grow the Good in business and life. Our purpose drives our commitment to helping our customers and our communities. The bank’s CRA program is embedded in each line of business with oversight from executive management.

We continue to invest in California communities through lending, charitable giving, and long-term partnerships that support affordable housing, economic development, and community resilience. This commitment aligns closely with the values and responsibilities of public agencies and reinforces BMO’s role as a long-term partner dedicated to strengthening the communities it serves. 2024-2025 Lending and Community Development Activities in Anaheim-Santa Ana-Irvine CA (Orange County)
Figure 2. 2024-2025 Orange County Lending & Community Development Activities

12 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES Through the Bank of the West legacy, BMO offers the City a combination of deep California roots, experienced local bankers, and proven public sector expertise, now supported by the strength, scale, and stability of one of North America’s leading banks. This continuity of people, presence, and public sector focus ensures that the City will be supported by a banking partner with both long-standing local commitment and the resources to serve its needs well into the future.

Treasury & Payment Solutions
The City requires treasury and payment services that are reliable today and capable of supporting continued modernization over time. BMO’s Treasury & Payment Solutions are built on award‑winning solutions recognized for security, innovation, and client experience across the public sector. These solutions combine proven processing stability with modern tools for cash management, payments, reporting, and fraud prevention, allowing the City to strengthen internal controls, improve visibility, and streamline workflows at a pace aligned with its operational priorities. The following page highlights representative industry recognition reflecting BMO’s continued investment in Treasury & Payment Solutions.

TPS Capabilities Built on More Than a Century of Service and Continuous Innovation Table 1. Treasury and Payment Solutions
Providing These TPS Services Since
ACH Transfer 1972
Account Reconciliation Services 1980
Application Programming Interface (APIs) 2020
Balance & Reporting Services 1985
Controlled Disbursements 1981
Depository Services 1882
Electronic Checks (remote deposit) 2005
Electronic Data Interchange (EDI) 1991
Image Services 2003
Lockbox (Wholesale) 1960s
Lockbox (Retail) 1985
Positive Pay 1985
Purchasing Cards 1982
Real-Time Payments 2020
Safekeeping 1960s
Wire Transfers 1981
Zelle® Payments 2019

13 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES Figure 3. 2025 Representative Industry Recognition for BMO • Please disclose and explain any significant negative events the bank has had in the last five years, including criminal charges, civil litigation, or administrative actions involving allegations of securities or banking law violations by the bank or its employees. Please comment on the resolution and/or status of the actions, as well as any necessary remedial actions.

BMO Financial Group and its subsidiaries (including BMO Bank N.A.) are party to proceedings in the ordinary course of business and establish provisions as appropriate. Based on current knowledge, outcomes are not expected to have a material adverse effect on consolidated financial position or results. In the Petters litigation the Eighth Circuit reversed the trial court judgment against BMO Bank N.A. on September 12, 2024, and directed entry of judgment for BMO Bank N.A. The Supreme Court of the United States denied the petition on May 27, 2025, which concluded the matter.

Please refer to the latest BMO Annual Report (BMO Financial Group 2025 Annual Report) for detailed information of these legal proceedings.
• Provide the address of the branch location(s) no farther than a 10-mile radius of the City of Los Alamitos, which will service the account.

The City can access any of the eleven full-service BMO branches located within a 10‑mile radius of City Hall for your weekly manual deposits or any other in‑person banking services. # Branch Location Miles
from City

1. 11051 Beach Blvd., Stanton, CA 90680 4.5

2. 5240 Clark Ave., Lakewood, CA 90712 5.0

3. 17303 Carmenita Rd., Cerritos, CA 90703 5.1

4. 7751 Westminster Blvd., Westminster, CA 92683 5.4
These accolades highlight BMO’s commitment to delivering client-centric, digitally enabled solutions. Additional information can be found here: Awards and Recognition.

14 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES # Branch Location Miles
from City

5. 619 S. Brookhurst Ave., Anaheim, CA 92804 6.6

6. 6881 Warner Ave., Huntington Beach, CA 92647 7.0

7. 496 Long Beach Blvd., Long Beach, CA 90802 7.1

8. 12976 Main St., Garden Grove, CA 92840 7.8

9. 12709 Valley View Ave., La Mirada, CA 90638 8.2

10. 12135 S. Garfield Ave., South Gate, CA 90280 9.6

11. 1330 S. Beach Blvd. Suite A, La Habra, CA 90631 9.8 Table 2. BMO's Local Branches
On March 17, 2026, BMO Bank N.A. announced plans to add more than 130 new financial centers in California. BMO operates more than 220 financial centers across California, and these new centers represent growth of more than 50% as the bank executes its multi-year expansion strategy. For details, please see our press release: https://usnewsroom.bmo.com/2026-03-17-BMO-Announces-NewFinancial-Centers-in-California-and-Arizona. • Disclose if your organization has a government service division and the number of years this division has been in operation.

Yes, BMO has a government service division called Institutional Markets – Government Banking. We have supported governments and public agencies for 40 years with roots that date to 1986. Details demonstrating our commitment to the public sector and the state of California are detailed above in the Corporate Overview section.
• 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.

Bank Ratings (as of February 28, 2026)
Bank of Montreal (parent company)
S&P Moody’s Fitch
Short-term Unsecured Senior Debt A-1 P-1 F1+
Long-term Unsecured Senior Debt A+ Aa2 AA
BMO Bank N.A.

S&P Moody’s Fitch
Short-term Unsecured Senior Debt A-1 N/A F1+
Long-term Unsecured Senior Debt A+ Baa1 AAPage 149 of 685 15 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES BMO Financial Corp (our U.S. holding company)
S&P Moody’s Fitch
Short-term Unsecured Senior Debt A-1 N/A F1+
Long-term Unsecured Senior Debt A+ Baa1 AATable 3. BMO Bank N.A. Bank Ratings • Discuss the firm’s current capital structure, adequacy, and coverage. Provide the following statistics for the last reporting period:

1. Total Risk Based Capital Ratio: 16.9%

2. Tier 1 Risk Based Capital Ratio: 14.8%

3. Tier 1 Leverage Capital Ratio: 4.4%
With BMO, the City benefits from working with a banking partner that maintains strong capital ratios, disciplined risk management practices, and the financial stability required to safeguard public funds. Our capital structure provides reliable support for daily operations, long‑term deposits, and treasury services while meeting stringent regulatory standards for adequacy and coverage. This strength allows the bank to remain focused on service continuity, operational resiliency, and the City’s ongoing modernization efforts without compromising safety or performance.
• Include a website link or an electronic copy of the last two audited annual financial statements
For our most recent audited financial reports, please see our Investor Relations site at:

October 31, 2025: https://www.bmo.com/ir/qtrinfo/1/2025-q4/bmo_ar2025_CFS.pdf October 31, 2024: https://www.bmo.com/ir/archive/en/bmo_ar2024_CFS.pdf • Include a website link or an electronic copy of the last four quarters of FDIC call reports.

Electronic copies of the last four quarters of FDIC Call Reports for BMO Bank N.A. are available at the following links:
• December 31, 2025:
https://cdr.ffiec.gov/public/ViewFacsimileDirect.aspx?ds=call&idtype=id_rssd&id=75633&date= 12312025
• September 30, 2025:
https://cdr.ffiec.gov/Public/ViewFacsimileDirect.aspx?ds=call&idtype=id_rssd&id=75633&date= 09302025
• June 30, 2025:
https://cdr.ffiec.gov/Public/ViewFacsimileDirect.aspx?ds=call&idtype=id_rssd&id=75633&date= 06302025
• March 31, 2025:
https://cdr.ffiec.gov/Public/ViewFacsimileDirect.aspx?ds=call&idtype=id_rssd&id=75633&date= 03312025

16 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES • Provide at least three local governmental references that are of similar size (i.e., scope of service utilization) as the City.

One of the leading indicators of our success as a financial institution are the clients we serve, and how these clients feel about their experience with us. We encourage you to contact each reference to obtain their thoughts on our industry knowledge, collaborative approach, and overall level of professionalism.

Reference 1: City of Fullerton
Contact Name & Title Julio Ortega, Revenue Operations Manager Agency Name & Address City of Fullerton,
303 W. Commonwealth Ave., Fullerton, CA 92832
Telephone 714-738-6532
Email [email protected]
Services Utilized
DDA, ACH origination, ACH Positive Pay, wire services, wholesale and retail lockbox, safekeeping, Image Cash Letter (ICL), Check Positive Pay, check transmission, full reconciliation services, commercial cash vault services, remote deposit capture, Bill.com, and Zero Balance Accounts (ZBAs)
Years as a Customer Since 2010
Reference 2: City of Laguna Hills
Contact Name & Title Eric Hendrickson, Finance Director Agency Name & Address City of Laguna Hills
24035 El Toro Road, Laguna Hills, CA 92653
Telephone 949-707-2623
Email [email protected]
Services Utilized
DDA, Zero Balance Accounts (ZBAs), Online Image Services, Remote Deposit, Online Info Reporting, MTS, ACH, Payee Positive Pay, Cash Vault, Sweep, Online Tax Service
Years as a Customer Since 2022
CONFIDENTIAL INFORMATION – NOT FOR PUBLIC RELEASE

17 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES Reference 3: City of Rancho Palos Verdes
Contact Name & Title Vina Ramos, Director of Finance
Agency Name & Address City of Rancho Palos Verdes
30940 Hawthorne Blvd. Rancho Palos Verdes, CA 90275
Telephone 310-544-5278
Email [email protected]
Services Utilized
DDA, Full Account Reconciliation, Payee Positive Pay, Remote Deposit, Cash Vault, Online Info Reporting, MTS, ACH, Merchant Services, Credit Services, Direct Biller
Years as a Customer Since 2014
A strong banking partnership is built on more than financial expertise. It is anchored in stability, community connection, and a deep understanding of how a city operates. With a locally based government banking team, long‑standing commitment to the region, and a proven history of serving public agencies, we are prepared to support the City with the consistency and personal service it deserves. Our modern treasury tools and dedicated specialists are here to help the City strengthen its financial operations, safeguard public resources, and advance its long‑term vision for a more efficient and resilient future.

CONFIDENTIAL INFORMATION – NOT FOR PUBLIC RELEASE

END OF CONFIDENTIAL INFORMATION
Enduring Strength. Trusted Continuity.

18 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES F. RELATIONSHIP MANAGEMENT

1. Provide the name, title, address, phone 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 to an account.

3. Name the individual who will work with the City on a day-to-day basis. a. Information should include:
i. Biographical information
ii. Experience working with other governmental entities iii. Proposed role concerning the City’s account
iv. Number of years of experience in this field
v. Number of years with your bank
vi. Describe the level of local decision–making authority these individuals have to handle emergency needs of the City as they arise.

4. Will a specific customer service representative/Government Services Division be assigned to handle day‐to‐day transactions for the City? Describe the responsibilities of the customer service personnel, including the chain of command for problem resolutions.
a. Is local customer service support available at the bank’s local branches? b. What are the hours of operation of each customer service unit involved in supporting the proposed services?
c. If the City discovers any error, how would you propose to resolve it (i.e., who should the City contact?
Responses to all questions are numbered accordingly and included on the following pages.

19 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES

1. BMO’s Relationship Management Team Key Contacts
Primary Relationship Manager
With over 20 years of banking experience, Thach “Tot” Vang will serve as the City’s primary Relationship Manager.

Thach “Tot” Vang (she/her)
Vice President, Commercial Banking
Institutional Markets/Government Banking
4400 MacArthur Blvd. Suite 600
Newport Beach, CA 92660
Mobile: 949-233-9572 | [email protected]
Primary Treasury & Payment Solutions
Consultant
In partnership with Thach, Prashant “Shawn” Gandhi will serve as the City’s primary Treasury & Payment Solutions Consultant.

Prashant (Shawn) Gandhi, CTP
Director, Sr. Treasury Consultant
Treasury & Payment Solutions
300 S. Grand Ave. One California Plaza
Los Angeles, CA 90071
Mobile : 909-298-7499 | [email protected]
Dedicated Senior Client Service Advisor
Supporting Tot and Shawn is Maria Sagrero who will serve as the City’s Dedicated Senior Customer Service Advisor. The City will be provided with a direct phone number and email address for Maria.

Maria Sagrego
Senior Client Service Advisor
Treasury & Payment Solutions
13300 Crossroads Parkway North
City of Industry, CA 91746

2. Key Personnel Changes
BMO maintains clear procedures governing any change in the primary contact person assigned to the City’s account. Although staffing changes are infrequent, we recognize that continuity is essential for public‑sector operations. If a personnel transition becomes necessary, the City will be notified promptly and provided with full details regarding the incoming representative. BMO will coordinate a structured transition process that includes knowledge transfer, updated communication points, and defined escalation contacts to ensure uninterrupted service and adherence to the City’s internal control requirements.

Local Decision-Making
When it Matters
 BMO provides named
points of contact
located in Southern
California, with direct
access to operations
and technical teams.

This structure ensures
accountability, timely
issue resolution, and
in‑person support when
required.

20 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES

3. Key Personnel Introductions
To support the City’s goals for modernization, stronger internal controls, and greater operational efficiency, a dedicated, locally based three‑person relationship team has been assigned with the authority and experience to respond quickly and effectively to the City’s needs. This team combines deep public‑sector expertise with practical, hands‑on knowledge of treasury operations, banking technology, and service delivery.

Thach “Tot” Vang, based in Newport Beach, will serve as the City’s primary Relationship Manager, providing oversight of daily banking activities, service coordination, and ongoing operational support.

Prashant “Shawn” Gandhi, located in Los Angeles, will act as the City’s Treasury and Payment Solutions Consultant, delivering specialized expertise in electronic payments, system integration, and technology‑enabled process improvements. Maria Sagrero, based in the City of Industry, will serve as the City’s Dedicated Client Service Advisor, managing day‑to‑day account inquiries, service requests, and issue resolution.

Together, this team brings more than 70 years of combined banking and treasury management experience, including nearly three decades serving public‑sector entities. Their collective background spans environments where technology adoption, workflow redesign, and digital transformation were critical to success, positioning them to support the City’s objectives for efficiency, transparency, and reliable financial operations.

Executive Leadership
For executive oversight and rapid escalation, BMO’s Executive Leadership Team is directly engaged.

Thad Garrison, Western Region Head for Governments, manages BMO’s Government Banking team, and will serve as a strategic escalation contact, and provide executive relationship management.

Thad Garrison
Managing Director, Western Region Head of Governments, Not-for-Profit Healthcare, and Higher Education
Government Banking – Institutional Markets
300 S. Grand Ave.

Los Angeles, CA 90071
O: 323-430-3689 | M: 917-575-9386 | [email protected] Thad leads BMO’s Government Banking team and has over 30 years of institutional banking experience specializing in local government, higher education, corporations and not-for-profit healthcare sectors. Thad joined BMO in 2025 after spending 26 years at Citibank. He previously led Citi’s western region Government Banking team and held prior banking roles in product management and operations. Thad holds a BA from Rutgers University and an MBA in Accounting and Marketing from Fordham University. He also holds FINRA Licenses: Series 7, 63, and 79.

Your Contact for: Executive client relationship management and trusted advisory, delivering the full breadth of BMO’s Treasury Banking, Securities Safekeeping, and Financing solutions.

21 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES

3.a.i-vi. Relationship Management Team Biographical Information Thach (Tot) Vang
Vice President, Commercial Banking
Institutional Markets / Government Banking
4400 MacArthur Blvd, Suite 600
Newport Beach, CA 92660
Mobile: 949-233-9572 | [email protected]

PROPOSED ROLE WITH THE CITY
Tot will serve as the City’s primary point of contact for daily banking needs, coordination of services, and ongoing operational support. She will oversee onboarding, manage communications with City staff, and coordinate directly with BMO’s Treasury and Payment Solutions, operations, and technical teams. Her role includes ensuring responsiveness to service inquiries, maintaining alignment with the City’s workflow requirements, and supporting key treasury functions such as deposits, electronic payments, fraud‑prevention tools, and online banking administration.

INDUSTRY EXPERIENCE
Tot is a Vice President on BMO’s Government Banking team. She has more than two decades of experience spanning business banking, commercial lending, deposits, and treasury services. Tot has been with BMO since 2019 (including predecessor Bank of the West).

Her experience includes supporting organizations through the adoption of new financial technologies and streamlined operational processes. She is fluent in Vietnamese and actively engaged in regional community and business networks.

EXPERIENCE WORKING WITH GOVERNMENTAL ENTITIES
For the past seven years, Tot has worked exclusively with public‑sector clients, including cities, water districts, and school districts. She has supported these entities in the administration of deposit accounts, implementation of treasury services, and the integration of fraud‑prevention and electronic payment tools. Her experience reflects familiarity with public‑sector expectations related to internal controls, transparency, audit preparedness, and compliance with statutory requirements governing public funds.

LOCAL DECISION-MAKING AUTHORITY
As a trusted employee and a Vice President with the bank for the past seven years, Tot has the authority to address service issues that require immediate action and can engage the appropriate operational, technical, and risk‑management teams to ensure timely resolution. She is supported by additional team members who maintain access to the City’s relationship information through BMO’s centralized systems, ensuring continuity of service and responsiveness even when multiple service areas must be coordinated. This structure supports the City’s expectations for reliable operational support, effective escalation pathways, and consistency across all banking services.

22 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES Prashant (Shawn) Gandhi, CTP
Director, Senior Treasury Consultant
Treasury & Payment Solutions
300 S. Grand Ave.

Los Angeles, CA 90071
Mobile : 909-298-7499 | [email protected]

PROPOSED ROLE WITH THE CITY
Shawn will work in partnership with Tot to serve as the City’s primary Treasury and Payment Solutions Consultant. He will support the design, implementation, and ongoing optimization of the City’s treasury services, including electronic payments, payables modernization, receivables solutions, fraud‑prevention tools, and system integrations. He will serve as a technical and operational resource for City staff, ensuring that treasury services align with the City’s requirements for efficiency, reliability, and internal control.

INDUSTRY EXPERIENCE
Shawn joined BMO in 2024, and he is a Director and Senior Treasury and Payment Solutions Consultant. He holds a Bachelor of Science in Computer Science from the University of California, Irvine, with an emphasis in data analysis and software development.

With over 20 years of treasury and banking experience, he delivers customized solutions that enhance operational efficiency, improve cash flow visibility, and ensure compliance with public fund requirements.

EXPERIENCE WORKING WITH GOVERNMENTAL ENTITIES
Shawn serves as a strategic advisor to public sector clients including municipalities, school districts, utilities, and government entities. He has extensive experience leading client implementations, developing treasury solutions across public‑sector and institutional clients, and managing cross‑functional teams to improve processes and reduce technical issues. He pairs strong technical expertise with a client‑first approach and remains active in professional organizations such as CSMFO and CMTA through regular engagement at industry events.

LOCAL DECISION-MAKING AUTHORITY
As a highly educated and seasoned professional, Shawn has the authority to provide guidance on treasury operations, address service‑related issues within his area of responsibility, and coordinate directly with BMO’s operational, technical, and product‑management teams when elevated support is required. As a Director, his expertise and role within BMO enable him to assist the City promptly in resolving technical inquiries, implementing new services, and addressing time‑sensitive treasury matters.

23 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES Maria Sagrero
Dedicated Senor Client Service Advisor
Treasury & Payment Solutions
13300 Crossroads Parkway North
City of Industry, CA 91746

PROPOSED ROLE WITH THE CITY
Maria is a seasoned Client Service Advisor. She will use her deep hands‑on public-sector expertise to support the City’s day‑to‑day banking operations, account servicing and inquiries, with a strong focus on accuracy, responsiveness, and follow‑through. Maria works closely with relationship managers, treasury consultants, and operations teams to resolve service requests, address billing and account analysis questions, and ensure issues are tracked to timely resolution. Her collaborative approach and long tenure enable her to anticipate the City’s needs, maintain continuity of service, and provide reliable support aligned with operational requirements.

Maria uses a partnership approach with your Relationship Management team post-implementation.

She will be an asset to your team, as she will actively monitor your accounts and work with internal bank partners to resolve any issues. She will look for trends that may develop within inquiries and examine ways to eliminate any repeat problems. Your Senior Client Service Advisor’s objective is to cultivate a strong client relationship by keeping the lines of communication open.

INDUSTRY EXPERIENCE
Maria is a Dedicated Senior Client Service Advisor and has been with BMO for 21 years, including predecessor Bank of the West. She holds a bachelor’s degree in business administration from California State University, Los Angeles.

EXPERIENCE WORKING WITH GOVERNMENTAL ENTITIES
With more than 31 years of banking experience, Maria exclusively services BMO’s governmental clients, providing hands‑on support for day‑to‑day account servicing, transaction research, billing and account analysis inquiries, and service request coordination.

LOCAL DECISION-MAKING AUTHORITY
Maria is empowered to assist the City with day-to-day banking operations, including time-sensitive and urgent service matters. As the City’s Dedicated Senior Client Service Advisor, she serves as the primary coordinator for issue resolution and maintains direct, ongoing contact with her manager, City’s Relationship Manager, Treasury & Payment Solutions Consultant, and BMO operations teams.

Maria takes a leadership role in engaging the appropriate internal personnel, prioritizing issues, and driving matters through resolution to ensure timely, accurate, and responsive outcomes. This authority enables the City to receive prompt support without unnecessary escalation delays, supporting continuity, accountability, and reliable daily operations.

24 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES

4. BMO’s Dedicated Public Sector Customer Service Team
Dedicated Client Service Advisor
Maria Sagrero will serve as the City’s dedicated Client Service Advisor. Maria is based in the City of Industry and will manage the day-to-day servicing of the City’s banking relationship. As demonstrated in her bio on the prior page, Maria brings more than 31 years of banking experience and has the public sector expertise to provide dedicated customer service support to the City.

Responsibilities
Our Client Service Advisors serve as the primary advocate within the bank for treasury services, coordinating service requests, research, and issue resolution. They will also participate in periodic relationship review meetings with City staff and the Relationship Management team to ensure ongoing alignment, service quality, and responsiveness.

Dedicated Public Sector Client Services Team
If Maria is unavailable, the City is supported by a team of Client Service Advisors who exclusively serve governmental agency clients. This team’s dedicated public sector focus enables them to apply best practices across similar agencies and respond to issues promptly and effectively. Team members are available by phone and email and have direct access to all operational areas of the bank, allowing them to coordinate resolutions efficiently. The City will be provided with a direct contact number to reach the Client Service Advisor team as needed.

Irene Pinedo
Dedicated Client Service Advisor
Treasury & Payment Solutions
13300 Crossroads Parkway North
City of Industry, CA 91746
Irene has more than 31 years’ experience providing customer service to government clients. She has been with BMO since 2005 (including predecessor Bank of the West). Irene is a vital component to many of our large, complex public entity relationships, and is proud to deliver our award-winning customer service. Irene is well-versed in all treasury and payment products and services and can quickly resolve complex issues.

Ly Huynh
Dedicated Senior Client Service Advisor
Treasury & Payment Solutions
13300 Crossroads Parkway North
City of Industry, CA 91746
Ly has more than 24 years’ experience providing customer service to government clients. She has been with BMO since 2010 (including predecessor Bank of the West). Ly is a vital component to many of our large, complex public entity relationships, and is proud to deliver our award-winning customer service.

Ly is well-versed in all treasury and payment products and services and can quickly resolve complex issues.

25 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES Yolanda Salinas
Dedicated Senior Client Service Advisor
Treasury & Payment Solutions
13300 Crossroads Parkway North
City of Industry, CA 91746
Yolanda has more than 36 years’ experience providing customer service to government clients. She has been with BMO since 2007 (including predecessor Bank of th West). Yolanda is a vital component to many of our large, complex public entity relationships, and is proud to deliver our award-winning customer service.

Yolanda is well-versed in all treasury and payment products and services and can quickly resolve complex issues.

Implementation Solutions Delivery Treasury Professional The City will be supported by a dedicated implementation team led by a Solutions Delivery Treasury Professional who manages the onboarding process from kickoff through go‑live. In partnership with your Relationship Manager and TPS Consultant, this team coordinates closely with City staff to establish timelines, set expectations, and confirm implementation details, including whether a parallel or phased transition best supports the City’s day‑to‑day operations. The approach is designed to ensure a controlled, well‑communicated implementation that minimizes disruption and supports a smooth transition to ongoing services.

Lori Barnes
Solutions Delivery Treasury Professional
Treasury & Payment Solutions
[email protected]
Lori Barnes is a Solutions Delivery Treasury Professional within BMO’s Client Onboarding organization, supporting complex and new client implementations. She partners closely with relationship managers, treasury consultants, and internal operations teams to coordinate onboarding activities, manage timelines, and ensure treasury solutions are implemented smoothly and efficiently. Lori oversees project execution from initiation through go‑live, including status management, issue tracking, and post‑implementation review, providing structured oversight that supports a positive and well‑controlled onboarding experience.

Continuity built for municipal operations. BMO reduces operational risk through stable staffing before, during, and after implementation.

26 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES a. Local Branch Support
The City will have access to local in‑branch support through Christine Cantorna for routine banking and branch service needs.

Christine Cantorna
Branch Manager
Stanton Branch
11051 Beach Blvd
Stanton, CA 90680
Direct: 657-441-3234 | [email protected]
Christine brings more than 20 years of financial services experience, with a strong focus on branch operations, team leadership, and client service delivery. She spent nine and a half years with Bank of the West as an Assistant Branch Manager, where she supported daily branch operations, staff development, and relationship management for individuals and businesses within the local community.

Christine provides reliable, in-person branch support and understands the importance of responsive service, consistency, and accountability for clients. Her operational experience and community-based approach ensure that the City has access to knowledgeable branch leadership. b. Client Support Availability
The City is supported by a locally based Relationship Management and Client Service team that is available during normal business hours to address day-to-day banking needs, service requests, and time sensitive inquiries. The City’s Relationship Manager, TPS Consultant, and Dedicated Client Service Advisor are available by phone during regular business hours and by email after hours, as needed, to ensure continuity of support and timely response.

In addition to the City’s locally based Relationship Management team, the City has access to BMO’s Treasury and Payment Solutions Client Services Group, which provides continuity of support when primary contacts are unavailable. This group has full access to the City’s accounts, processing instructions, and service configuration to ensure uninterrupted assistance. The Client Services Group is available Monday through Friday, excluding bank holidays, from 5:00 a.m. to 4:00 p.m. PT.

For technical and platform related support, the City may also contact the Treasury and Payment Solutions Technical Help Desk, which operates Monday through Friday, excluding bank holidays, from 5:00 a.m. to 5:00 p.m. PT. The Technical Help Desk provides direct assistance with the following services:
• Online Banking for Business (OLBB)
• Remote deposit capture (DepositEdge)
• File transmissions and connectivity
• General troubleshooting and system access issues
The Technical Help Desk works to resolve technical concerns promptly and restore normal operations as quickly as possible. When necessary, City staff may be asked to assist with confirming local system requirements to ensure compatibility and successful resolution.

This combined service model ensures the City has access to knowledgeable local contacts during business hours, extended availability for urgent matters, and dedicated technical support during expanded operating hours.

27 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES c. Error Resolution
If the City identifies an error or discrepancy, the City’s Dedicated Client Service Advisor serves as the primary point of contact and coordinates the resolution process from start to finish. The Client Service Advisor promptly acknowledges the issue, gathers relevant details, and engages the appropriate internal operations, treasury, or technical teams to investigate and resolve the matter.

Throughout the investigation, the City receives clear and timely updates on status, findings, and next steps. When applicable, supporting documentation is provided to assist with reconciliation and audit review. Corrections or adjustments resulting from bank error are processed promptly and without charge to the City.

For matters requiring elevated attention or immediate action, the City may escalate directly to the Relationship Manager or the Treasury and Payment Solutions Consultant, who have local decisionmaking authority and visibility into the City’s full relationship. These individuals remain actively involved to ensure issues are resolved efficiently, escalations are handled appropriately, and service expectations are met.

This coordinated service model provides the City with a clear escalation path, consistent communication, and accountability, ensuring that errors are addressed quickly while minimizing operational impact and staff effort.

Escalation Levels
To ensure timely resolution and clear accountability, the City is supported by a defined, multi‑level escalation structure.

Level One: Dedicated Client Service Advisor
The City’s Dedicated Client Service Advisor, Maria Sagrero, serves as the first point of contact for day-today service inquiries, transaction research, billing questions, and issue coordination. She manages resolution through completion and provides status updates to City staff.

Level Two: Relationship Manager
For matters requiring operational urgency or broader coordination, the City may escalate to the Relationship Manager, Tot Vang. Tot provides oversight, prioritization, and escalation within the bank to ensure timely resolution.

Level Three: Treasury and Payment Solutions Consultant
Issues related to treasury services, payment files, system functionality, or platform configuration may be escalated to the Treasury and Payment Solutions Consultant, Shawn Gandhi, who provides subject matter expertise and technical guidance.

Level Four: Technical Help Desk
For access issues, file transmissions, remote deposit capture, and connectivity support, the City has access to the Technical Help Desk, which provides direct technical assistance and troubleshooting.

Level Five: Senior Operations or Technical Management
For complex or time critical matters, issues may be escalated to senior operations or technical management to ensure rapid decision making and resolution.

Local branch support is also available for in person coordination when needed.

28 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS G. GENERAL BANKING SERVICES

1. Deposit Services
a. Please provide a listing of bank branches within the City limits.

The City may access any of the eleven full-service BMO branches located within a 10‑mile radius of City Hall for your weekly manual deposits or any other in‑person banking services. # Branch Location Miles from
City Hall Hours (Pacific Time)

1. 11051 Beach Blvd.

Stanton, CA 90680

4.5 Mon-Thur: 9:00am - 5:00pm
Fri: 9:00 am – 6:00 pm

2. 5240 Clark Ave.

Lakewood, CA 90712

5.0 Mon-Thur: 9:00am - 5:00pm
Fri: 9:00 am – 6:00 pm
Sat: 9:00 am – 12:00 pm

3. 17303 Carmenita Rd.

Cerritos, CA 90703

5.1 Mon-Thur: 9:00am - 5:00pm
Fri: 9:00 am – 6:00 pm

4. 7751 Westminster Blvd.

Westminster, CA 92683 5.4
Mon-Thur: 9:00am - 5:00pm
Fri: 9:00 am – 6:00 pm

5. 619 S. Brookhurst Ave.

Anaheim, CA 92804

6.6 Mon-Thur: 9:00am - 5:00pm
Fri: 9:00 am – 6:00 pm
Sat: 9:00 am – 12:00 pm

6. 6881 Warner Ave.

Huntington Beach, CA 92647

7.0 Mon-Thur: 9:00am - 5:00pm
Fri: 9:00 am – 6:00 pm

7. 496 Long Beach Blvd.

Long Beach, CA 90802

7.1 Mon-Thur: 9:00am - 5:00pm
Fri: 9:00 am – 6:00 pm
Sat: 9:00 am – 12:00 pm

8. 12976 Main St.

Garden Grove, CA 92840

7.8 Mon-Thur: 9:00am - 5:00pm
Fri: 9:00 am – 6:00 pm
Sat: 9:00 am – 12:00 pm

9. 12709 Valley View Ave.

La Mirada, CA 90638

8.2 Mon-Thur: 9:00am – 5:00pm
Fri: 9:00 am – 6:00 pm
Sat: 9:00 am – 12:00 pm

10. 12135 S. Garfield Ave.

South Gate, CA 90280 9.6
Mon-Thur: 9:00am - 5:00pm
Fri: 9:00 am – 6:00 pm
Sat: 9:00 am – 12:00 pm

11. 1330 S. Beach Blvd. Suite A
La Habra, CA 90631

9.8 Mon-Thur: 9:00am - 5:00pm
Fri: 9:00 am – 6:00 pm
Sat: 9:00 am – 12:00 pm
Table 4.BMO Local Branch Locations

29 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS b. What is the ledger cutoff time for deposits?
The cut-off time for same‑day ledger credit at the branch is their local closing time.

The City’s Digital Check Chexpress CX30 desktop scanner is compatible with BMO DepositEdge (remote deposit capture) enabling the City to continue to scan check deposits.

BMO DepositEdge Mobile Deposit allows the City to seamlessly take a picture of their checks and securely deposit them using their mobile device.

Electronic deposits transmitted through DepositEdge receive same-day credit if submitted by 7:00 pm PT. Deposits transmitted after this deadline are processed the following business day.

DepositEdge®
BMO delivers DepositEdge® as a mature, secure remote deposit capture solution used broadly by public-sector clients to streamline daily deposit activity. Through DepositEdge®, the City can scan and transmit check deposits electronically using approved desktop scanners or mobile devices, with deposits processed through BMO’s established clearing infrastructure and fully integrated with Online Banking for Business reporting.

For the City, this capability reduces reliance on branch visits, minimizes physical handling of checks, and accelerates access to deposited funds. Deposit confirmations, images, and reports are available electronically, supporting timely reconciliation and audit review. DepositEdge® strengthens internal controls through encrypted transmission, user entitlements, and audit trails, while improving staff efficiency and cash visibility.
c. How are deposits credited? Are all items immediately verified? If provisional credit is given, when does verification take place? How will the City be informed if the bank corrects a deposit?
Branch deposits are credited at the time they are received. Cash is verified immediately, and checks are scanned for initial balancing when time permits. For deposits containing a large number of checks, the City may receive provisional credit, with checks verified later that same day or by the close of the next business day following posting.

If discrepancies are identified during the verification process, the bank will automatically debit or credit the designated account. Each correction is documented through an adjusting debit or credit memo that references the original deposit date and amount. Variances under $25 are reflected through a credit/debit advice without modifying the original deposit slip, while variances over $25 are communicated to the City by telephone. All cash and check deposits are verified under dual control, and supporting documentation is provided promptly to assist with reconciliation.

Online Stop Payment Services
In addition to timely posting and verification of deposits, BMO provides the City with online tools to manage deposit account controls efficiently, including electronic stop payment services.

BMO provides Online Stop Payment Services through OLBB, enabling authorized City users to initiate, track, and manage stop payment requests electronically. This capability is supported by BMO’s core

30 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS deposit platform and integrated directly into account reporting, ensuring stop payment activity is visible, documented, and centrally managed.

For the City, online stop payments reduce processing delays and administrative effort associated with manual requests or branch visits. Electronic confirmations and historical tracking support audit requirements and internal oversight, while role‑based access ensures that only authorized personnel can initiate or modify stop payment requests.

2. Returned Item Processing
a. Can items returned for insufficient or uncollectible funds be automatically redeposited? If so, how many times? Yes. Items returned for insufficient or uncollectible funds can be automatically re-deposited. Under Regulation CC, check images may be presented for payment up to two times. ACH debit entries may also be presented up to two times. If an eligible returned check image is converted to an ACH Re-Presented Check Entry (RCK) after only one check presentment, it may be presented two additional times as an ACH entry. BMO offers flexible options that allow the City to tailor redeposit instructions based on operational preferences.

Check Return Items
BMO’s default process is to automatically redeposit all eligible returned checks under $100. At the City’s direction, we can customize redeposit parameters to:
• Automatically redeposit all eligible items, regardless of amount; • Automatically redeposit items above a specified dollar threshold; or • Disable automatic redeposit for all items.

We can also include the deposit location ID in the returned item information or forward returned items to a third-party collection service.

Return check images and reports are available the same day through OLBB Imaging, and the City may also receive advices via U.S. Mail, fax, or secure email.

ACH Return Items
Eligible ACH returns may be re-deposited up to two times. Returned ACH items are charged back to the City’s account on the date of notification, and eligible items can be re-submitted for settlement within two business days. Credit for redeposited ACH items is applied on the settlement date.

The City can access ACH Return/Redistribution Reports through OLBB, via the File Transfer Facility (FTF), or through secure FTP transmission. Returned ACH data is provided exactly as received from the Federal Reserve, including any attached records from the originating institutions.

Return Reporting and Documentation
BMO provides flexible reporting options to meet the City’s reconciliation needs, including:
• Paper Return Item Advices with front/back images delivered by mail, fax, or secure email; • Chargeback Redeposit Return (CRR) Report via OLBB;

31 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS • Seven-year online archive of returned deposited item images accessible through OLBB; • X9.100 formatted Image Item File available via secure internet protocol when electronic transmission is preferred.

These options ensure the City receives timely, accurate information to support prompt recovery efforts and streamline reconciliation workflows.
b. Does the bank offer any options that may increase the collection of NSF checks?
Re-Presented Check Entry
Yes. With today’s faster clearing processes and modern electronic capabilities, most clients simply choose to redeposit items rather than convert them to an ACH entry; however, BMO still provides our Re‑Presented Check Entry (RCK) service for clients who may require it. RCK helps increase the recovery of items returned for Non‑Sufficient Funds (NSF) as it electronically re‑presents eligible returned checks through the ACH network, providing a more efficient and effective alternative to paper redeposit.

RCK functions by converting eligible returned checks into ACH entries after customer notification requirements are met. We review each returned item for eligibility, convert qualifying checks to ACH RCK entries, and warehouse them for delivery based on the City’s chosen timing, such as a specific day of the month, month‑end, or a set number of days after the return. The receiving bank will either process the debit or return the ACH entry. Returned ACH items re‑enter our return‑item workflow and may be re‑deposited again if eligible. Eligibility for RCK includes checks written on consumer accounts under $2,500, checks less than 180 days old, items with a pre‑printed serial number above 100, and checks returned for “Non‑Sufficient Funds” or “Uncollected Funds.” These requirements align with Nacha rules and ensure compliance while optimizing collection potential. c. Can the bank provide online access to electronic images (back and front) of returned items? How soon can these images be accessed?
Check Imaging
Yes. Our Check Imaging service provides quick, easy, and secure online access to high-quality images (front and back) of returned items through OLBB. Check images are available in the Check Imaging service as soon as entered. Returned deposited checks charged back to your account are available in the seven-year image archive and can be viewed online.
d. Can the bank provide a summary report of returned items identifying the payer's name, depositing location, deposit date, and the type of item returned? Yes. BMO can provide a detailed return item transmission that includes the following:
• Checking account and ABA number
• Check number
• Check amount
• Original deposit date (only provided on advices and reports available through our online information reporting system)
• Reason code

32 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS • Full name on check (only provided by viewing an image of the returned deposited item) • Complete address (only provided by viewing an image of the returned deposited item) • Phone numbers (if visible on the front or back of the returned deposited item when viewing an image of the returned deposited item)
• Driver's license number and state (if visible on the front or back of the returned deposited item when viewing an image of the returned deposited item)
• Check date (if visible on the front or back of the returned deposited item when viewing an image of the returned deposited item)
The City can choose to view Return Item Reports and return items images the same day via OLBB.

3. Availability of Deposits
a. Provide a copy of the bank’s availability schedule, including branch deposits.

BMO's availability schedule has been provided as Exhibit 1: Funds Availability Schedule. b. Is the schedule offered to the City the best one for any customer? If not, quantify the difference and explain how the City may obtain the bank’s best availability schedule.

Yes. Our fractional float 100% Next Day Funds Availability schedule is the best schedule available to our clients. There is no extra charge for obtaining this best availability schedule. c. How does the bank determine and calculate the availability of deposited items?
We use fractional float to compute availability. Availability is set by your relationship team. d. Do the availability policies differ from the Federal Reserve Bank availability schedule?
No. Our availability policies follow the Federal Reserve Bank availability schedule. Wires and ACH entries receive immediate availability based on the Settlement Date assigned to each item by the Federal Reserve.

This alignment provides predictability for the City and maintains full compliance with federal requirements.
e. Does the bank give immediate ACH availability for on‐us items? Yes and no. Yes, ACH credits drawn on our institution are posted and made available on the Settlement Date with no delay. No, we do not give immediate availability to on-us checks – those checks are part of the 100% Next Day Funds Availability as mentioned in b. above. If the City requires immediate availability to on-us checks, we can accommodate.

33 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS f. Does the bank calculate the availability by item or formula? Availability is applied in accordance with the schedule described above. The availability assignment is set at the relationship level and tailored to the City’s accounts.

This approach ensures consistent, transparent application of availability rules across all accounts while allowing flexibility for the City’s operating requirements. g. Is the availability assignment made as soon as checks are released for collection, or is the assignment made at specific times during the day? We assign availability through a consistent end‑of‑day process. We do not maintain intra‑day cutoff times for determining the availability of individual checks. All deposited items are forwarded together at the end of the day for collection.

This approach reflects current industry practices, as the former method of clearing items at multiple time slots was eliminated when paper check clearing stopped several years ago. The City receives predictable and uniform availability treatment that aligns with modern electronic processing standards. h. List your cutoff times for giving same‐day value on EFTs (e.g., wire, ACH/bulk) received. How soon after the bank gets incoming funds (e.g., wire /bulk) or notification of incoming funds does the City receive credits in its account? We apply credits to the City’s account as soon as incoming funds are received and posted. After we receive an electronic deposit, our system issues a deposit confirmation email, and the credit appears in the City’s account the same business day. The City may then access reporting through the Account Information service in OLBB to support reconciliation.

Funds for the following deposit types are generally available for use on the same business day we receive the deposit:
• Cash: Same‑day availability upon receipt.
• Incoming domestic wires: Must be received by 7:35 p.m. PT to ensure same‑day credit. • Federal Reserve Bank wire transfers: Must be received by 6:45 p.m. PT for same‑day availability and investment. Wires received after the 6:45 p.m. PT Fedwire cutoff are processed on a bestefforts basis for same‑day availability. • ACH: Same Day ACH enables same‑day settlement for virtually any ACH transaction. This option supports immediate payment scenarios when the City needs to move funds quickly without issuing a wire or check.

These cutoff times ensure predictable posting and allow the City to manage cash flow with confidence.

34 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS

4. Positive Pay
a. Does the bank offer Positive Pay and Payee Positive Pay? Yes. BMO offers a comprehensive Positive Pay and Payee Positive Pay program to protect the City against check fraud and unauthorized disbursements. Under this service, the City transmits an issued check file to the bank for each check run. Presented checks are validated against check number and dollar amount, and exceptions are reported to the City- for review.

Exception items are available for review through OLBB by 7:30 a.m.

PT each business day. The City provides a pay or return decision by 1:00 p.m. PT to ensure timely processing. Optional email alerts may be activated to notify designated staff when exceptions are present.

For additional protection, Payee Positive Pay verifies the payee name on presented checks against the issued‑check file using optical character recognition. This control helps detect altered or counterfeit checks before payment.

BMO also provides fraud prevention controls across ACH and wire channels, including ACH debit blocks, debit filters, dual approvals, user entitlements, dollar limits, and real‑time alerts. These controls support segregation of duties and align with public‑sector audit and internal control expectations.

Same Day Teller Positive Pay
Should the City use our Positive Pay service, we offer Same Day Teller Positive Pay at the teller window.

When the City uploads issue files and creates manual issues and/or voids throughout the day via OLBB, our teller system will recognize them within one hour of receipt. The system will verify the dollar amount and serial number on all checks cashed at the teller line. With payee verification, the system also checks payee name alterations before they are cashed at the teller line.

Stale Date Add-on Service
If your account has both Positive Pay and Account Reconcilement, you have the option of setting up a stale date check timeframe by account. Items presented to the bank beyond the stale date parameter will be returned by the bank as stale dated.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
Check Fraud Prevention
City Today → With BMO
City Today:

Manual review and isolated
controls increase
operational burden as
activity grows.

With BMO:

Layered controls across
checks, ACH, and wires
strengthen oversight and
reduce manual intervention.

35 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS b. Please provide sample reports or a website link.

Positive Pay reports are integrated into the same OLBB platform that the City will use for other online treasury and payment services.

The City can view sample reports through the OLBB demo. Selecting the View Demo button below will take you directly to the Positive Pay exception reports page.

Positive Pay Exception Report
Figure 4. Positive Pay Sample Report
c. Please provide the transmission method and time windows.

The City will receive Positive Pay exception information through OLBB, which provides a reliable and consistent delivery method. Exception items are available each morning at 7:30 a.m. PT, allowing staff to review and act on any issues before the required cutoff at 1:00 p.m. PT.

To strengthen internal controls, the City can activate an optional email alert during implementation. This feature routes exception notifications to a central email inbox or to designated personnel through an automated distribution method. These options ensure that staff receive timely notice whenever an item requires review.

36 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS Figure 5. Proactive notifications with Alerts subscription This approach provides the City with the timely visibility needed to support secure, well‑controlled disbursement operations.
d. Describe the process and deadline for transmitting AP and payroll check issuance information from the City to the bank.

We support the City’s check issuance and direct deposit payroll files through a secure, automated transmission process that ensures timely and accurate payment execution. The City will transmit its payroll file to us by 6:00 p.m. PT one to two days before each payday. The file includes net pay amounts, transit and routing numbers, and employees’ account numbers. File transmission is a reliable and efficient method that reduces manual intervention.

After we receive the file and the City confirms the control totals, we edit the file and route transactions accordingly. Items destined for BMO accounts are forwarded to our posting systems, and items for non-BMO accounts are sent to the local clearing house for distribution to regional ACH clearing houses.

37 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS On settlement day, the regional ACH clearing houses deliver the transactions to the receiving financial institutions. These institutions typically receive the files early in the business day. The City’s employees’ accounts are credited on settlement day, and the City’s account is debited. The City will issue salary statements to employees that outline gross earnings, deductions, and net pay.

If payday falls on a Friday, we must receive the City’s file no later than 6:00 p.m. PT on Thursday. We recommend transmitting the file two days before settlement to allow time to correct any errors. Same Day ACH is also available and provides a near-term option to move funds quickly when immediate payment is required without using wires or checks.

We will cash on-us checks issued from the City’s account at no charge, including for non-account holders.
e. How frequently can transmission files be uploaded to the bank to issue additional checks and recently voided items? Is there a daily limit on the number of files?
The City can upload transmission files as often as needed. There is no daily limit on the number of files. Once the City submits a check issue file, our system sweeps every 30 minutes to retrieve new transmissions, and the cut‑off time for same day processing is 7:00 p.m. PT. File updates typically appear in our systems within minutes and are available for same day use in branches. This process gives the City flexibility to issue additional checks or void items throughout the day while maintaining timely posting and operational accuracy.

Have you considered adopting Comprehensive Payables to eliminate the need for separate check issue file uploads?
Comprehensive Payables allows the City to submit a single multi-payment file for checks, ACH, and wires, which automates check issue creation, reduces manual tasks, and supports your transition toward automated and paperless vendor payments. BMO has implemented Comprehensive Payables for numerous public-sector clients across California and the US, including municipalities that successfully replaced manual workloads with fully automated disbursement processes.
f. Does the bank offer the ability to enter one-time check disbursements issued during the day manually? Please describe.

Yes. The City can manually enter one time check disbursements (or voids) through the Recon Management service in OLBB. This tool allows authorized users to add single check issues during the day, review exception items, and support Positive Pay decisioning.

The Recon Management screen provides clear date range filters, report selections, and inquiry options that make it easy to locate and review check information. The Check Inquiry function displays the status of historical items and reflects updates in real time, which supports operational accuracy and audit readiness.

This capability allows the City to maintain control over day-to-day disbursements, address urgent payment needs, and update issued check information without waiting for batch file processing.

38 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS g. What controls are in place to protect against lost files and duplications of transmissions? If duplicates are sent, is there a penalty or potential issue? We maintain controls to ensure file integrity and protect the City from lost or duplicate file uploads.

For check transactions, our duplicate detection service automatically identifies and returns duplicate items when they are presented within 45 calendar days of the original check clearing. If a duplicate item is identified within this timeframe, we adjust the City’s account, and the reversal appears in the Account Information reporting. Items identified after 45 days are detected during the Positive Pay scrubbing process and are returned as duplicates. These items appear in the Positive Pay Exception Summary report, which gives the City visibility into how they were resolved.

Our banking infrastructure supports these controls through load balanced redundant servers and replication to a secondary data center location. All file data is stored online, which protects the City from file loss.

Controls vary by application:
• Positive Pay: detection of duplicate file transmissions and duplicate items. • ACH Origination: verification of Control Totals that confirm item counts and dollar amounts. • Comprehensive Payables (EDI): ISA and GS Control Numbers are matched against an internal database to prevent duplicate files.
• Check Payments: check numbers are validated against a maintained database to prevent duplicate check activity.

We can also receive an EDI 831 Control Total file to confirm the City’s 820 payables file. If totals match, the 820 files will release for processing. If totals do not match or the 831 file is not received, we contact the City’s authorized representative for guidance.

Additional confirmation methods can be tailored to the City’s requirements, and straight through processing is available for organizations that choose to waive a formal confirmation step.

These controls ensure that duplicate files are identified, resolved, and reported without penalty to the City. They also support accurate payment activity and maintain consistent, audit‑ready records. h. How and when will the City be notified of exception
items? When must the City inform the bank
whether an exception should be accepted or
rejected? Does the bank offer a “do not pay”
default for exception items?
The City can view exception items each day through the Recon Management service in OLBB. Exception information is available by 7:30 a.m. PT, and the City must provide a pay or return decision by 1:00 p.m.

PT. Subscribing to email alerts provides an additional notification method and helps ensure that items requiring review are addressed promptly.

As part of the Positive Pay service, the City submits an issue file for each check disbursement run. We can activate an optional email exception notification during implementation, and we recommend routing these alerts to a central email box with shared access or an automated

OLBB ALERTS
 Faster awareness of
exceptions
 Stronger internal
controls
 Improved day-to-day
efficiency
 Reduced risk of
missed deadlines
 Better alignment
with audit
requirements

39 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS distribution list. If the City does not use a central address, we recommend implementing an internal process to review exceptions each banking day.

During implementation, the City can select a default decision of either pay or return. If the City chooses the return default, we will return all items as Refer to Maker. This allows the bank of first presentment to re‑present the check one additional time and gives the City another opportunity to review the disbursement. If the City chooses the pay default, we will pay all presented checks. Items identified as Paid No Issue are not automatically added to the issue file without authorization.

These options provide the City with timely visibility of exceptions and the flexibility to select a default control structure that aligns with internal processes and risk management needs. i. Will stale-dated checks be reported as exception items? For checking accounts that use Positive Pay or Full Reconciliation, the City can set a stale‑date timeframe by account, from 1 to 999 days. If a check is presented after the selected timeframe, we will return it as a stale dated item. BMO reviews all stale dated exceptions, and only items that require City review are presented in OLBB for decisioning.

Stale dated items are included on the corresponding Full Reconciliation report to support the City’s review and audit needs. If a check is returned as stale, the related issue record remains marked as “staled” in the Account Reconciliation system. The issue is not removed or voided automatically, which preserves a complete history of issued and outstanding items for reconciliation and audit purposes. j. How many days would a check be considered stale-dated? A check may be considered stale dated after the timeframe set by account. The City can choose a stale‑date window from 1 to 999 days when using the Positive Pay or Full Reconciliation service. Once a check exceeds the selected timeframe, it is treated as stale dated and managed according to the City’s established exception handling process.
k. Is Positive Pay required for all demand deposit accounts, even those without check-writing functionality? Can account(s) be designated as “post no checks” to prevent potential fraud? Is there a cost to make this account designation?
Positive Pay is not required on demand deposit accounts. For accounts that do not have check‑writing functionality, we recommend using the Check Debit (check block) service. This service prevents paper checks from being processed on the account. Any paper check presented to a blocked account is returned immediately, while all other account activity continues without disruption.

The check block service is well suited for concentration accounts, and special purpose or settlement accounts. The fee for this service is per account.$8.00 per account By implementing this control, the City significantly reduces the risk of fraudulent or unauthorized checks clearing an account that is not intended for check activity.

40 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS l. Is Teller Positive Pay available? How frequently is check issuance information updated and made available to tellers?
Yes. If the City uses our Positive Pay service, we offer Same Day Teller Positive Pay at the teller window.

Within one hour of receiving check issue file uploads or manual issues and voids entered in OLBB, our teller system recognizes these items. The system verifies the dollar amount and serial number on all checks presented at the teller line. When Payee Positive Pay is used, the system also verifies the payee name before the check is cashed.

This capability provides the City with real-time protection at the teller window and supports accurate and secure check handling.
m. Are there any other fraud protection services that the bank provides or recommends?
Yes. BMO provides a comprehensive set of fraud protection services that support the City’s internal controls and operational security that extends beyond checks. These services include:
• ACH Fraud Control options: ACH Positive Pay and ACH Debit Blocks, which allow the City to monitor and block unauthorized ACH activity.
• Email alerts and exception notifications: support timely review and decisioning of exception items.
• Enhanced Payee Verification and Payee Validation: compare payee information from the City’s issue file to the payee information on the presented check image. • IBM Security Trusteer Rapport: adds an additional layer of protection alongside firewalls and antivirus tools to help ensure secure access to the genuine OLBB site. • Physical, electronic, and procedural safeguards: encryption, firewalls, multifactor authentication, user payment limits, approval levels, and email or SMS alerts. • Fraud awareness resources: educational materials, scam‑prevention guides, fraud event checklists, and annual Fraud Prevention Month materials. These resources are supported by ongoing engagement from the Relationship Management team. • BMO’s Financial Crimes Unit and Fusion Center: provides 24 hours a day, 7 days a week monitoring and response capabilities across fraud management, information security, physical security, and crisis management.
• Guidance for reporting fraud events: steps to notify insurers, law enforcement, and third‑party forensic experts.
• Support for recovery efforts: recall attempts for fraudulent outbound payments and coordination with receiving financial institutions.

These services help protect the City from a wide range of fraud risks while strengthening day- to-day operational security and oversight.

As the City continues building a foundation for smarter, more resilient financial operations, advanced fraud protection becomes an essential part of that journey. Our team understands how important these safeguards are as the City moves toward a more connected treasury environment, and we remain committed to providing technology and expertise that reinforce trust, elevate transparency, and support the City’s long‑term vision for digital readiness.

41 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS

5. Automated Clearing House (ACH) Processing
The City’s transition to Tyler INCODE is a critical step toward automating Accounts Payable workflows and expanding electronic payments. A successful transition requires a banking platform that integrates reliably with the City’s ERP environment and supports straight-through processing without introducing operational risk.

BMO supports municipalities using Tyler INCODE and comparable public-sector ERP platforms by enabling secure, standardized exchange of Nacha-formatted ACH origination files, return files, acknowledgments, and reconciliation data. ACH files generated directly from Tyler INCODE can be transmitted through secure channels such as the File Transfer Facility and secure file transfer options, supporting automation from payment initiation through settlement and reconciliation.

By aligning ACH processing with the City’s ERP workflows, the City reduces manual file handling, minimizes duplicate data entry, strengthens internal controls, and advances its transition away from paper checks while maintaining continuity of daily operations.

Tyler INCODE/BMO Workflow
Figure 6. Tyler INCODE/BMO Workflow
a. Is the bank both a sending and receiving bank of the National Automated Clearing House Association (NACHA)?
Yes. BMO Bank N.A. is a direct member of the National Automated Clearing House Association (Nacha), which enables us to both send and receive ACH transactions. This participation supports the City’s current use of ACH for payroll direct deposit and utility billing collections, and it also aligns with the City’s goal to expand ACH for future vendor payments and reduce reliance on paper check issuance. b. How can the City submit ACH files or initiate ACH via bank software? The City can initiate ACH transactions through the ACH Payments service in OLBB, which provides an online workflow to create, verify, track, approve, and manage ACH activity. This method is one way we can support the City’s ACH needs. Users can build templates to reduce repetitive data entry, schedule payments in advance, and customize approval rights and user entitlements. Security features include user IDs, passwords, 256-bit encryption, and an authentication device for payment authorization.

42 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS Key capabilities of ACH Payments in OLBB include:
• Create templates and batches to streamline repetitive ACH activity
• Schedule payments up to 30 days in advance
• Set recurring payment schedules
• Specify settlement dates
• Assign approvers for templates, payments, and beneficiaries • Customize user profiles with specific entitlements
For higher volume activity, the City can transmit a Direct Send ACH file by generating a Nacha formatted file through its accounting system or ERP software. These files can be transmitted through the File Transfer Facility in OLBB, Secure FTP, or FileAct. Direct Send supports straight through processing from file initiation through settlement.

Direct Send supports:
• High volume payroll and utility billing transactions
• Future expansion into ACH for vendor payments
• Secure file transmission using industry standard protocols • Automated processing from receipt through settlement
This combined set of options provides the City with flexible, secure methods to manage current and future ACH needs as part of the transition to paperless check issuance. c. What are the transmission cut-off times for one-day and two-day ACH files? ACH files are processed in "windows" throughout each business day (Central Time). Processing windows allow time for any file exceptions/issues to be resolved (e.g., exceeded limit, bad file, missing control totals).

Please note our processing deadlines in Table 5 below for originating ACH transactions:

ACH Origination Channel Risk Type Same Day Cut-off Standard Next Day Cut-off
OLBB ACH Payments Module
Settlement Line 12 pm PT 6 pm PT
Pre-fund (Standard) 11:30 am PT 6 pm PT
Pre-fund Deluxe 11:30 am PT 3:30 pm PT
Nacha File Delivery
OLBB File Transfer Facility or
Secure File Transfer Protocol
(SFTP) / Direct Send
Settlement Line 12:15 pm PT 6 pm PT
Pre-fund (Standard) 11:30 am PT 6 pm PT
Pre-fund Deluxe 11:30 am PT 3:30 pm PT
Table 5. ACH Processing Deadlines
ACH and ERP Integration
City Today → With BMO
City Today:

ACH usage is limited, and
file uploads, confirmations,
and reconciliation require
manual handling as the City
prepares to transition to
Tyler INCODE.

With BMO:

Automated ACH origination
and return file integration
with Tyler INCODE
streamlines electronic
payments, reduces manual
touchpoints, and supports a
controlled transition from
checks to ACH.

43 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS Best Practice Recommendations
• We strongly recommend that the City transmit their ACH Payments 30-60 minutes prior to cutoff to avoid unexpected issues. • Control Totals should be submitted within 30 minutes prior to file transmission. • If transactions are not funded by the business day after transmittal, or control totals are not received, the transaction may be cancelled.
d. Describe the procedures used to confirm accurate and secure receipt of the transmission.

BMO requires the City to enter Control Totals through the OLBB portal. Control Totals confirm that the ACH file we receive is complete, correct, authorized, and unchanged from the time the City transmitted it. With ACH Fraud Control, the City can also post Control Totals online. These totals are validated during the ACH collection process, and files with unmatched totals are suspended or rejected based on parameters established in the ACH system.

We can provide an optional Acknowledgement Report in the same manner that the City submits its file, either through the File Transfer Facility or Secure FTP. The City may also subscribe to the ACH Warehouse service through ACH Fraud Control in OLBB. This service allows users to view the status of transmitted files and provides access to batch and transaction level detail. These procedures help ensure that the City’s ACH files for payroll, utility billing, and future vendor payments are transmitted securely and accurately.

Have you thought about enabling Secure FTP for automated file transmission as the City expands ACH usage? Secure FTP supports encrypted, high-volume transfers and reduces manual processing, which aligns with the City’s goal to modernize its AP workflow. BMO has successfully implemented Secure FTP connectivity for numerous public-sector agencies throughout California and nationwide, supporting automation and ERP integration in cities, counties, utilities, and school districts.
e. What would happen to an ACH file if the City exceeds its daily exposure limit? If an ACH file exceeds the daily exposure limit, our ACH Operations team will contact the City’s Relationship Manager to request approval before releasing the file for processing. If the City anticipates seasonal or temporary increases in activity, a higher temporary limit can be established for that period.

The City would notify the Relationship Manager of the requirement, and authorization would be obtained before the limit is adjusted.

To ensure files are processed without issue, sufficient funds must be available in the account to cover the activity. If the City develops a recurring pattern of exceeding its exposure limit, the Relationship Manager will review the account activity and determine whether a permanent limit increase is appropriate. Additional documentation may be required as part of that review. f. How are returned and rejected ACH transactions handled? What information does the bank provide to assist in identifying returned and rejected ACH transmissions? When is this information available?
Returned and rejected ACH transactions are processed through BMO’s ACH return‑processing system, which provides the City with complete originating details for each item. If the return information

44 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS matches the original transaction, the return and any Notification of Change (NOC) details are reported through the Return/Redistribution Report. These reports are available through OLBB for both ACH batch activity and Direct Transmission services and may also be delivered through Electronic Report Delivery (ERD) or secure email. The City can view Return/Redistribution Reports as return items, NOCs, and redeposits are received, which helps support ongoing cash flow management.

The City may also receive a Nacha return file, which includes the batch header record so that the original batch, settlement date, company ID, and other descriptive information can be identified. Return Reports are organized by return code, which allows the City to analyze the reason for the return and take appropriate action. If the City is unable to determine why an item was returned based on the available information, BMO’s client service staff can contact the returning financial institution on the City’s behalf.

If the City chooses to use the redeposit feature, returned items are charged to the account on the date of notification, then redeposited for settlement in two business days. The account is credited on the settlement date.

In addition to the daily Return/Redistribution Report, BMO provides a monthly NOC Manager Report, which summarizes all NOCs created during the prior month and identifies any transactions corrected by BMO to support successful posting at the receiving financial institution. g. Is your bank planning to opt in and participate in processing same-day ACH debits?
Yes. BMO offers Same Day ACH processing as an optional service. If the City is not enabled for Same Day processing, then only payments directed to other BMO accounts will settle on the same day. All other payments will settle on the next business day.

Same Day ACH provides the ability to send or collect funds on the same day and supports immediate payment scenarios where the City may need faster settlement without issuing a wire or check. h. Describe the bank’s procedures for handling debits to the City’s accounts that the City did not authorize. How soon does the bank notify the City of receiving an unauthorized ACH debit?
If the City uses an ACH Debit Block on an account, all ACH debits will automatically be returned to the originator. This control prevents unauthorized debits from posting and ensures that no additional action is required by the City.

If the City does not use an ACH Debit Block or ACH Filter, the City must notify BMO promptly upon identifying an unauthorized ACH debit so that the item can be returned within the timeframes required by Nacha rules. Return entries must be made available to the originating depository financial institution no later than the opening of business on the second business day following settlement of the entry. i. If the bank provides ACH debit blocking, what level of filtering can be applied? BMO provides Electronic Payment Authorization (EPA) / Debit Filters as well as ACH Positive Pay. These services allow the City to establish criteria for which ACH transactions may post to an account, including blocking all debits, allowing only approved transactions, or applying dollar‑amount parameters.

Transactions that do not meet the City’s established criteria are automatically returned.

45 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS Recommendation: BMO’s Electronic Payment Authorization (EPA) / Debit Filters provide an enhanced level of protection for ACH activity. EPA allows the City to define the criteria for ACH transactions that may post to each account, including setting maximum dollar amounts or allowing only preauthorized transactions. Items that do not meet the City’s criteria are automatically returned using the appropriate Nacha return codes (R29 for unauthorized ACH debits or R23 for refused credits). The City also receives detailed reporting for all returned transactions to support timely review and reconciliation.

BMO has implemented EPA controls for public‑sector clients across California and nationwide, including cities, counties, and utilities that require strong ACH oversight as they expand electronic disbursements.
j. Does the bank offer ACH Positive Pay (the ability to make pay/no-pay decisions on unidentified ACH transactions)?
Yes. The Positive Pay/Reconcilement service in OLBB provides the City with the ability to investigate ACH exception items and make pay or no‑pay decisions in an integrated image‑based environment.

Built‑in security features ensure that only authorized individuals can make critical payment decisions, and multiple authorization controls are available for additional security, including the option to require a second approver for exception items over a specified dollar threshold. Manually issued checks and voids can also be entered through the Reconcilement service.

Items requiring decisioning are available daily in OLBB by 5:30 am PT. The City receives an email reminder for any items not yet decisioned by 11:30 am PT, and final decisioning must be completed no later than 1:00 pm PT.
k. Does the City have any experience with a third-party to handle Vendor Payments via ACH?
Yes. BMO has extensive experience supporting public‑sector clients that use third‑party platforms to manage vendor payments via ACH, including ERP systems such as Tyler INCODE. We regularly work with automation providers and municipal ERP systems that generate Nacha‑formatted files for delivery through OLBB’s File Transfer Facility, Secure FTP, or DirectSend. These methods are fully supported by our ACH Payments, ACH Fraud Control, and information reporting services and are commonly used by government clients transitioning to more automated AP workflows.

Recommendation: BMO’s Comprehensive Payables service can complement the City’s planned Tyler INCODE AP automation by consolidating ACH, checks, and wires into a single multi‑payment file. This reduces manual steps, supports the transition away from paper check issuance, and eliminates the need for separate Positive Pay uploads. BMO has implemented Comprehensive Payables for many public‑sector agencies, including cities and counties that integrated the service with their ERP systems to modernize vendor disbursements and improve operational efficiency.

46 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS

6. Reconciliation Services
a. Does your bank offer Account Reconciliation Program (ARP) services? Please discuss options (full, partial, deposit, and serial sort) for reconciliation services, including:

Yes. BMO provides account reconciliation services designed to support timely month‑end close, accurate reporting, and audit readiness. The City can select from paid‑only, deposit, or full reconciliation services based on operational preferences.

The City can choose from several reconciliation options based on workflow needs. Reconciliation data is delivered electronically through OLBB and can be accessed in multiple formats, including BAI, SWIFT, or ISO formats, or downloaded from OLBB in BAI, CSV, or Excel formats. • Paid Only: Allows the City to perform its own detailed reconcilement by receiving information on paid check activity. • Full Plan Reconcilement: Maximizes reconcilement efficiency by allowing the City to send its check issue file to BMO. We match the issue records against paid items and provide a comprehensive reconciliation report that supports audit readiness and internal controls.
• Deposit Plan Reconciliation: Recommended for clients that make deposits from multiple locations into a single account.

This service allows the City to reconcile deposits by location and maintain clear tracking of deposit activity.

Check images and deposited item images are available online, allowing City staff to investigate discrepancies without requesting paper documentation. Historical images and reports are retained in accordance with regulatory record‑retention requirements.

These reconciliation services streamline reconciliation and audit support by replacing manual, spreadsheet‑driven processes with an automated, electronic workflow that improves efficiency, accuracy, and staff productivity.
i. File transmission deadlines
BMO’s cutoff times for receiving issued check files and add/delete records are outlined below and apply to reconciliation and Positive Pay services.

Issued Check Files (Full Reconciliation): At the end of each reconciliation period established by the City, issued check information must be transmitted to BMO by 7:00 p.m. PT on the final day of the reconciliation period.

Issued Check Files (Positive Pay): Issued check information must be transmitted by 7:00 p.m. PT on the business day prior to check issuance. Files must be successfully uploaded and accepted by the bank before checks are deposited or presented for cashing.

Add and Delete Records: Add and delete records must be received by 7:00 p.m. PT to be recognized for next‑business‑day matching.

Reconciliation and Reporting
City Today → With BMO
City Today:

Reconciliation and research
are performed after the fact
using statements and
spreadsheets, increasing
close timelines and staff
workload.

With BMO:

Integrated reconciliation
files, imaging, and real time
reporting support faster
exception identification,
more efficient month end
close, and improved audit
readiness.

47 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS Manual issues and voids can be entered through the OLBB Recon Management service at any time during the month. Items received on or before the reconciliation cutoff date are included in the current reconciliation cycle. Items received after the cutoff date are included in the subsequent reconciliation period.
ii. File layout requirements
Reconciliation data supports automation within the City’s ERP environment and may be delivered in several file structures.

Raw Data Files
Delivered via the File Transfer Facility in OLBB or through OpenText, formatted to support automated loading:
• Format 4: Paid Item (Check) file
• Format 60: Outstanding Stale Items file
• Format 63: Outstanding Check Issue file
• Format 96: All Posted Transactions (checks, credits, and non-check debits) CSV Formatted Files
Available through OLBB’s eStatements service and compatible with common spreadsheet and database tools:
• Paid Only Report
• Miscellaneous Debit Report
• Miscellaneous Credit Report
• Account Reconcilement Statement
• Outstanding Check Detail
• Credit Report
Voided checks place a cancel marker on the corresponding outstanding item in the check register. This marker persists until cycle end, at which point both the check issue record and the cancel clear from the reconciliation reports.

Through OLBB, the City has continuous access to reconcilement information, including the ability to monitor check status, view paid and outstanding items, see exception items, make pay or no‑pay decisions, and retrieve check images. Positive Pay may be added to further enhance fraud mitigation. iii. Imaging capabilities (e.g., paper, electronic)
The City can access images of paid checks, deposited items, and returned deposited items through OLBB’s secure HTTPS portal. A seven‑year image archive supports audit needs and research workflows.

Images may also be delivered through eDelivery with image viewing software or through a bulk XML file for agencies that prefer automated retrieval.
iv. System requirements for the interface.

The City can access reconcilement information through OLBB using standard business technology. A secure HTTPS connection and an up‑to‑date web browser such as Chrome, Firefox, or Safari are

48 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS sufficient. File delivery through the File Transfer Facility, OpenText, or Secure FTP requires authenticated access and follows encryption and security protocols. Supported file formats include BAI, SWIFT, ISO, CSV, and Excel.
v. Provide sample reports for all options.

Full account reconcilement, our most complete plan, provides reports on all paid, outstanding, and adjusted items for the statement period. We match paid items against the City’s check issue data, which may be provided by direct transmission or through the File Transfer Facility (FTF) within OLBB. Account Reconciliation reports are delivered electronically through the eStatements service. Month‑end reconciliation reports are available in PDF format, with many reports also available in CSV format for additional flexibility.

Account Reconciliation Reports
Paid Only Plan Reports
• Paid Only
• Miscellaneous Debit
• Miscellaneous Credit
• Diagnostic Summary – Paid Only
• Recap of Posted Items
Deposit Plan Reports
• Paid Only
• Miscellaneous Debit
• Miscellaneous Credit
• Diagnostic Summary – Paid Only
• Recap of Posted Items
• Credits
Full Reconciliation Plan Reports
• Paid Only
• Unpaid Only
• Outstanding Settlement
• Account Reconciliation
• Recap of Posted Items
• Diagnostic Summary-Unpaid
Only
• Diagnostic Summary-Paid
Only
• Payee Name (for those with
Payee Positive Pay)
• Misc. Debit
• Misc. Credit
• Exception Summary
• Register Exceptions
• Stop Check Detail
• Outstanding Check Detail by Serial
Number
• Outstanding Check Detail by Amount
Additional Optional Reports
• Issued and Paid Check Listing
• Cancel Listing • Stale Dated Checks
Table 6. Account Reconciliation Reports
For more, the City can explore the demo to generate sample reports. Exhibit 2: Account Reconcilement Report Guide also contains sample reports.

49 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS b. Are the systems integrated for checks, ACH, and wire transfers? If so, describe. If not, explain any plans for integration.

Yes. The City can view check, ACH, and wire activity in one place through the Account Information service in OLBB, which brings these payment channels together into a single reporting platform. This integration gives staff a consistent experience across transaction types and supports faster research, easier reconciliation, and improved operational oversight.

For payment initiation, OLBB allows the City to import files, create templates, and initiate both ACH and wire transfers within the same online environment. This helps streamline day‑to‑day processing and reduces the need to manage separate systems for different payment types.

The City can also choose to use Comprehensive Payables, which consolidates checks, ACH, and wire transfers into one multi‑payment file. From this single file, the bank can print and mail checks on behalf of the City and initiate ACH and wire payments. This integrated workflow reduces manual tasks, strengthens internal controls, and supports the City’s long‑term goal of modernizing disbursements and transitioning away from paper check issuance. c. Describe how reconciliation data is transmitted to the City to an eligible ERP system.

Reconciliation data can be delivered to the City through direct transmission in several formats, including BAI, SWIFT, and ISO, giving the City flexibility to select the structure that best aligns with its ERP requirements. Files may also be downloaded from OLBB in BAI, CSV, or Excel formats. These formats allow the City to easily import reconciliation data into its ERP system, streamline research and month‑end close processes, and support the transition to more automated financial workflows.

7. File Transfer
a. How are file transfers initiated? In what
formats is the information available for
retrieval?
BMO provides the City with secure, flexible file-transfer capabilities to support payment processing, reporting,
reconciliation, and ERP integration. Files may be transmitted and retrieved using bank-approved secure delivery channels, including the File Transfer Facility (FTF) and OpenText mailbox options, such as SFTP, VPN, AS2/AS3, and FileAct.

The City may receive files in industry-standard formats, including BAI, CSV, and ISO 20022 camt.052/.053, supporting integration with Tyler INCODE and other financial systems. All file transmissions are protected through authenticated access, encryption, and control-total validation, ensuring data integrity and alignment with public-sector security requirements.

File-transfer services are available 24 hours a day, providing reliable access to balances, transactions, and payment activity as needed to support daily operations and reconciliation
workflows.

Secure File Integration
 Reliable 24‑hour access to
send and retrieve files through
OLBB without workflow delays.
 Flexible secure connectivity
using FTF, Secure FTP, FileAct,
SWIFT, APIs, and other protocols
that align with Tyler INCODE.
 Broad file‑format compatibility
including BAI, CSV, ISO CAMT,
PDF, XLS, and QuickBooks for
seamless ERP integration.
 Automatic confirmations and
alerts that notify the City
immediately of missing,
duplicate, or out‑of‑balance files
to support strong internal
controls.

50 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS Recommendation: To maximize efficiency and reduce manual file-handling, the City is encouraged to use the OLBB Scheduler, which builds on the file-transfer capabilities above by adding automation, timing control, and operational flexibility.

Rather than relying on static or manual retrieval, the Scheduler enables the City to automatically receive Account Information reports in the required formats through the same secure delivery channels, aligned precisely to City workflows.

Operational advantages for the City include:

City Today With Scheduler
Manual or fixed file retrieval Automated, scheduled delivery Limited timing flexibility Early-morning and same-day delivery Manual system updates Automated ERP updates
Basic transaction detail Expanded ACH and wire detail
Table 7. OLBB Scheduler Operational Advantages for the City b. Do the means to connect to the bank’s systems vary by transaction type? Yes. The City can choose from several connectivity methods depending on the transaction type and level of automation desired. OLBB supports manual, browser‑based activity for one‑off payments, while secure file‑based transmission can be used for automated payment workflows. Available connectivity methods include the File Transfer Facility within OLBB, SFTP (SSH/SSL), HTTPS, AS2, VPN, SWIFT FIN, FileAct, API integration, and the OpenText mailbox.

BMO also supports multiple industry‑standard formats and protocols for information reporting and payment origination, including BAI2, CSV, Quicken, QuickBooks, XLS, PDF for reporting and ISO 20022 pain.001/pain.008, EDI 820, Nacha, CPA005, and CSV for payments. This flexibility enables the City to import and export data easily, reduce manual rekeying, and support its transition toward greater AP automation.

These options allow the City to align each payment channel with the appropriate level of security, automation, and internal control. For example, high‑volume ACH files generated from Tyler INCODE can be delivered through Secure FTP or FileAct, while lower‑volume transactions can be managed directly within OLBB.
c. Does your system provide electronic confirmation of receipt for file transmissions?
Yes. The City receives electronic confirmation for daily file transmissions, including Full Reconciliation, Positive Pay, ACH origination, and ACH Control Totals. When the City enters Control Totals through OLBB, the totals for dollar debits, dollar credits, and item counts are validated against the incoming file.

If a file is missing or the totals do not match, the system alerts BMO and the City is contacted immediately to determine whether the file should be resent, corrected, or deleted. This process strengthens internal controls and helps prevent duplicate or incomplete transmissions.

51 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS For EDI Comprehensive Payables, the City receives an ASC X12 997 Functional Acknowledgment confirming that the file was received and an ASC X12 824 Application Acknowledgment confirming acceptance of the file contents or identifying any exception items. A human‑readable EDI 820 Control Report containing transaction and payment totals is also available by email or fax.

For ISO 20022 Comprehensive Payables, several acknowledgements are available:
• Level 1 (pain.002): Within 30 minutes of submitting the payment or debit file, the City receives a technical validation with either Accepted Technical Validation or Rejected status. • Levels 2 and 3: The City may elect to receive Scheduled Acknowledgements or Event‑Triggered Acknowledgements. These provide status information such as Confirmation, Pending, Returns, Rejects or Redistribution, Reject and Expiration, and Settlement.

All machine‑readable acknowledgments are delivered to the same mailbox from which the City’s payment file originated.

For wires submitted through OLBB, the City receives bank and Federal Reserve reference numbers within minutes of completing a payment order, assuming there are no routing or funding issues. An internal sequence number is generated when the wire is created and displayed in OLBB. Wire reporting is updated throughout the day to show detailed incoming and outgoing wire activity, including the FedWire reference number once the payment is released to the Federal Reserve. d. Is there an existing interface with the City’s financial system, Tyler Incode 9 or 10, or would a custom interface need to be developed? Will there be a charge for the interface?
Most interfaces supported by the bank are standard, and the City can transmit and receive files using widely supported formats that align with Tyler INCODE. For services such as ACH, EDI, and Comprehensive Payables, the City may require a custom interface to meet specific file layout or workflow requirements. When a customized connection is needed, the bank works directly with the City to identify the most efficient and cost‑effective method for transmitting and receiving files.

Some interfaces may require a one‑time programming fee, and certain transmission options may involve file upload or monthly charges. The bank will collaborate with the City to determine the best approach that supports INCODE integration, maintains security, and aligns with the City’s modernization goals. e. How is connectivity initiated? What protocols are used to facilitate the interface?
Connectivity can be initiated through several secure channels, giving the City flexibility to align each transmission method with its internal controls and Tyler INCODE workflows. Standard formats such as BAI, CSV, EDI 820, EDI 823, SWIFT, and ISO 20022 XML are supported and can be used to exchange files that integrate directly into the City’s ERP environment. When the City requires a specialized layout or connection method, the bank will customize the interface to ensure secure, reliable data exchange that supports the City’s payment, reporting, and reconciliation requirements. f. Describe the bank's process to verify that all records have been received and processed.

After the City issues checks, the check‑issue file is transmitted to the bank with the check number, dollar amount, and issue date for each item. The City benefits from an automated verification process that

52 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS confirms the file is complete by validating the total number of items and the total dollar amount. These details are printed on a confirmation report sent to the City within two hours of file receipt, giving staff timely assurance that the transmission was received accurately.

Each transmission is tracked from the moment the first record arrives until the final record is delivered to its destination. Duplicate files are automatically detected and not processed, which prevents the risk of multiple issues of the same check. If any file rejects or is out of balance, this information is clearly identified on the City’s confirmation report so corrective action can be taken promptly. g. What controls are in place to protect against lost files and duplicate transmissions? How will the City be notified of a duplicate file? BMO systems contain multiple layers of control that ensure file integrity during transmission and prevent lost or duplicate files. When the City submits files through OLBB or a secure transmission method, the system immediately checks for completeness and confirms receipt. Control Totals entered by the City provides an added safeguard by validating the number of items and the total dollar amounts in each file. If the totals do not match or if a file is missing, the system alerts the bank and the City is contacted right away by the TPS Operations team or the City’s Relationship Manager by phone or email to determine whether the file should be resent, corrected, or deleted.

Duplicate detection is built into ACH Control Totals, Positive Pay, and Comprehensive Payables. If a duplicate file is submitted, the system identifies the duplication and prevents it from processing. The City is notified promptly so corrective action can be taken without delaying payment activity or disrupting daily workflows.

These controls give the City confidence that file transmissions are accurate, complete, and protected from errors that could affect vendor payments, payroll, or reconciliation processes.

8. Overnight Investment/Investment Sweep
The City is considering an automated service that accommodates zero balances in the accounts daily and a sweep or other vehicle for investing excess funds. a. Describe your policy and processes.

BMO offers automated overnight investment sweep services that allow the City to invest excess collected balances while maintaining full liquidity for daily operations. Sweep participation is optional and implemented only at the City’s direction, in accordance with the City’s investment policy and Banking Resolution.

Sweep structures may be configured with either a zero-balance or a defined target balance. At the close of each business day, funds in excess of the target balance are automatically swept into the selected investment vehicle and returned to the operating account the next business day. Daily balances, sweep activity, and investment earnings are available through OLBB and reflected on monthly statements.

Available sweep vehicles include government money market funds and other short-term investment options permitted under California Government Code. These vehicles are selected in coordination with the City and subject to the City’s investment policy requirements. Sweep balances remain fully liquid and accessible for next-day operational use.

53 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS No reserve requirement is applied to sweep balances. Sweep transactions are processed automatically within BMO’s core systems and do not require daily staff intervention. The City retains full control to modify sweep parameters, change investment selections, or discontinue the sweep at any time.

Fees associated with sweep services are disclosed in the pricing proposal and reflected on the monthly account analysis statement.

This structure allows the City to earn a return on idle balances while preserving liquidity, transparency, and control over public funds.
b. What short-term investment vehicle(s) does the bank propose to use for the overnight investment or sweep of the City’s demand deposit accounts? We offer several investment options, including select:
• Government Funds
• Treasury Funds
• Fed Funds for Correspondent Banks only
For a list of short-term investment vehicles and rates, please see Exhibit 3: Investment Sweeps Rates 03/23/2026.
c. Does a reserve requirement apply to these proposed options? BMO's current reserve requirement is 0%. We don't deduct the reserve requirement from the average collected balance before the earnings credit rate is applied.

For investment sweep options, we don't apply a reserve requirement. d. Will the bank assess FDIC, FICO, or other charges to the City? If so, what is the annual fee for a $1 million balance? How is this charge computed? Is it assessed on a ledger or collected balances?
The Balance Administration Fee (BAF) is a charge associated to maintain and service your accounts and includes a small portion of regulatory costs BMO must bear. All major banks charge this fee to their clients and is common across the banking industry. The fee is calculated by taking the average ledger balance from the month and dividing it by 1,000 and multiplying the resulting number by $0.10, which is the current standard.

For example, if the City keeps an average daily balance of $1,000,000 the calculation is:
$1,000,000/$1,000 = $1,000 x $0.10 = $100 for the month e. Provide investment return history for the previous three years for each option proposed. Show the yield for each.

The yields are driven by the value of the underlying securities and are subject to change daily. The chart below shows the lowest and highest APY ranges per month, which provides an idea of the market conditions at that time.

54 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS 3-Year Investment Return History (March 2023 – February 2026) Table 8. Investment rates history for the past three years TPS Investment
Sweep Rates
(Monthly Range)
2023
March 4.17% to 4.69%
April 4.40% to 4.74%
May 4.49% to 4.95%
June 4.71% to 4.98%
July 4.68% to 5.09%
August 4.94% to 5.21%
September 4.95% to 5.23%
October 4.96% to 5.24%
November 4.96% to 5.25%
December 4.98% to 5.25%
TPS Investment
Sweep Rates
(Monthly Range)
2024
January 4.93% to 5.23%
February 4.91% to 5.17%
March 4.91% to 5.19%
April 4.89% to 5.17%
May 4.90% to 5.17%
June 4.90% to 5.17%
July 4.89% to 5.17%
August 4.86% to 5.16%
September 4.57% to 5.13%
October 4.37% to 4.80%
November 4.17% to 4.58%
December 4.14% to 4.49%
TPS Investment
Sweep Rates
(Monthly Range)
2026
January 3.24% to 3.65%
February 3.24% to 3.55%
TPS Investment
Sweep Rates
(Monthly Range)
2025
January 3.92% to 4.25%
February 3.91% to 4.24%
March 3.91% to 4.20%
April 3.88% to 4.21%
May 3.87% to 4.18%
June 3.89% to 4.18%
July 3.87% to 4.19%
August 3.87% to 4.18%
September 3.67% to 4.17%
October 3.73% to 4.01%
November 3.51% to 3.96%
December 3.36% to 3.85%

55 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS f. Describe your policy for crediting interest earned to demand accounts.

Interest accrues daily on interest-bearing accounts based on the closing collected balance using a 365- day year and paid on the last day of the month.
g. What time of day is the sweep deadline? Is it an end-of-day or next-day sweep? The sweep service is an end-of-day sweep, meaning funds are swept to and from the investment at the end of every day to maintain the target balance the City wants to maintain in their account. h. What kinds of fees are charged to sweep funds into the proposed investment vehicle(s)? How is the fee calculated?
The monthly fee for the Money Market Investment Fund Sweep is $50/account. This is a flat fee and applied directly to the City's account analysis. BMO does not charge a per transaction fee. i. If the bank proposes a money market mutual fund, provide a copy of the current prospectus and identify the class of shares, including the ticker symbol or CUSIP.

If the City elects to utilize a money market mutual fund as part of an overnight investment or sweep arrangement, BMO offers access to government and treasury money market mutual funds that are rated in the highest category by a Nationally Recognized Statistical Rating Organization (NRSRO).

Upon request, BMO will provide the current prospectus for any proposed money market mutual fund.

Each prospectus includes full disclosure of investment objectives, risks, expenses, and fund management details.

Representative fund options include, but are not limited to:

Fund Name Share Class Ticker Symbol
Federated Government Money Market Fund Institutional GVIXX Fidelity Government Money Market Fund Class II FNSXX
Goldman Sachs Financial Square Government Fund Institutional FGPXX BlackRock Liquidity Government Fund Institutional TTTXX Table 9. Government and Money Market Mutual Funds
The specific fund, share class, and corresponding ticker symbol or CUSIP will be confirmed during implementation based on the City’s investment policy, Banking Resolution, and due-diligence review.

Prospectuses will be provided prior to enrollment to support informed decision-making. j. What collateral, if any, is provided to protect balances on the investment sweep?
Balances invested through the overnight investment sweep are not collateralized, as sweep balances are invested in money market mutual funds rather than held as bank deposits. Money market mutual funds are investment vehicles and are not subject to public‑fund collateralization requirements under the California Government Code.

56 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS If the City requires collateralized alternatives to a money market sweep, BMO can offer interest‑bearing deposit structures outside of the sweep arrangement that may be collateralized in compliance with the California Government Code and the City’s investment policy. Any such structure would be reviewed and documented during implementation.

9. Earnings Credit Rates (ECR)
a. What are the options for compensating your
bank, i.e., direct fees, compensating balances, or
a combination of both? Is the price the same for
either option? If not, what is the difference? If on
a fee basis, can excess balances be used to
offset activity charges partially? Will earnings
credit on collected balances over those required
to pay expenses incurred in any month be
carried forward to offset future bank charges?
Provide the bank’s ECR for the compensating
balance method of payment.

Our treasury services can be compensated on either a fees-basis (direct fees per the established fee schedule, assessed without regard to account balances) or on a balances-basis (earnings credits generated from eligible account balances using the applicable ECR that may offset service charges on the account analysis statement). There is no price difference between the two. Yes, earnings credits can be carried over. BMO is proposing a premium ECR to the City of 2.85%. ECR compensation is applied at the account level and rolled up to a relationship level. The City defines a relationship in terms of what accounts make up a relationship.
b. How is your bank’s earnings credit determined, adjusted, and applied? Please include in the explanation the impact of the bank’s reserve requirement and the formula for converting service charges to balance requirements.

The ECR is a bank-administered rate reviewed by management and our clients whenever there are triggering events. BMO is always open and flexible in working with the City when it comes to the needs of our clients, as we understand that cash flow, budget, and what's important to them will always be considered before implementing any changes.

BMO’s reserve requirement has been 0% for more than 10 years.

We use this formula to calculate ECR:

Earnings Credit = (Average Monthly Collected Balance) x (EC Rate) x (of Days in Cycle) 365(or 366) Days
c. Provide monthly rate history for the last two years.

BMO’s reserve requirement has been 0% for more than 10 years. On the following page are our standard earnings credit rates for the last two years.

Pricing and Earnings Credit
City Today → With BMO
City Today:

Fees and balances require
ongoing monitoring to
manage costs.

With BMO:

Predictable pricing, a
competitive Earnings Credit
Rate, and flexible sweep
options help offset fees and
optimize balances.

57 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS U.S. Commercial
Banking
2024
January to August 0.60%
September to October 0.40%
November 0.40%
December 2, 2024
December 19, 2024

0.35%

0.30%
2025
January to October 0.30%
November 0.30%
December 0.30%
2026
January to February 0.30%
Table 10. BMOs standard ECR rates for the past two years d. What is the bank’s current earnings credit rate? Are you willing to lock in a “floor” earnings credit rate? If so, for how long?
The current ECR is 0.30%. BMO doesn't offer a floor on its bank-administered rates. This includes both operating interest rates and ECR. BMO will adjust rates as market conditions change. e. Are you willing to link the earnings credit rate to a market index? If so, which index and what spread would you suggest?
No. The ECR is a bank-administered rate reviewed by management monthly. As a bank-administered rate, we don't directly tie it to an external index such as the Federal Funds Rate or U.S. Treasury Bill rates. However, in managing ECR, BMO is as competitive as possible to reflect the prevailing interest rate environment.

ECR compensation is applied at the account level and rolled up to a relationship level. The City defines a relationship in terms of what accounts make up a relationship.

There is no reserve requirement.
f. Using the ECR for December 2025, please calculate the compensating balances (after float and reserves) needed to offset one dollar of the bank services. ($1 in services = $ in compensating balances.) The compensating balance is a function of the Earnings Credit Rate that is applied on your account(s).

The formula for computing the compensating balance is as follows:

Compensating Balance = __________(Service Charge Amount x 365 days)________ (Earnings Credit Rate x # of days in the current month)

58 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS BMO’s standard ECR for December 2025 was 30bps. Based upon the provided formula and BMO’s standard ECR of 30bps, the City would require a compensating balance of $3924.73 to offset $1.00 in services.

Compensating Balance = __________($1.00 x 365 days)________ (0.003 x 31)
BMO is offering the City of Los Alamitos an ECR of 2.85%. With this ECR the City would require a compensating balance of $457.39 to offset $1.00 in services. g. What time frame does your bank use when reviewing balances for deficiency or excess (e.g., rolling 12- month average, calendar quarter, calendar year, etc.)?
Deficiency and excess figures are reported to the City's monthly or quarterly analysis billing cycle. The net result of the Average Positive Collected Balance and the Average Negative Collected Balance equals the Average Ledger Balance minus Average Float.

10. Merchant Services / Secured E-Payments
The City accepts debit cards, Visa, MasterCard, Discover, and American Express, and is also considering e-wallet payments (such as Apple Pay/Google Pay) for various fees and permits. Currently, we are utilizing third- party merchant services and would like to reevaluate our current relationship to include our banking services as the provider. The City has issued approximately 38 Bank credit cards to staff members, with each card having a maximum.

Merchant Services
The banking institution shall supply the appropriate supplies and equipment for online verifications. Please describe:
a. The financial institution’s process.

BMO supports online payment verification by providing the City with secure merchant-service capabilities delivered through its strategic payments partner, Elavon, enabling real-time electronic verification at the point of authorization. Transactions are validated through established card-network and payment-network protocols before approval and settlement, ensuring accuracy, security, and auditability.

Through this process, the City can accept major credit and debit cards, mobile wallet and contactless payments, electronic checks, and other authorized electronic payment types within a controlled, government-appropriate environment. Online verification is supported by gateway services,

59 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS tokenization, and encryption, which protect sensitive payment data while confirming transaction validity.

Elavon maintains the necessary platforms, applications, and connectivity required to support online verification, eliminating the need for the City to manage multiple vendors or separate verification tools.

Configurations are designed to support public-sector use cases, including fee-based payments, service charges, and electronic billing and payment platforms.
b. The Point-of-Sale processing capabilities.

The City will receive flexible point-of-sale (POS) processing capabilities through our strategic payments partner, Elavon, enabling the City to accept payments across multiple channels based on operational needs. Supported payment environments include in-person transactions, internet and payment-page transactions, telephone and mail payments, recurring or installment payments, and QR code-based payments.

To support these use cases, the City may utilize standalone terminals, virtual terminals, and gateway-based solutions, allowing POS configurations to align with specific departments, payment volumes, and staffing models. Mobile and contactless acceptance options are available where appropriate, supporting field-based or remote payment scenarios.

During onboarding, Elavon and BMO’s Relationship Manager works with the City to identify the POS solution or combination of solutions that best fits the City’s requirements, existing workflows, and security expectations.
c. Software provided. Is support and training available? Converge virtual terminal platform, delivered through Elavon, provides secure online payment acceptance and transaction management. Converge enables the City to process electronic payments, integrate with point-of-sale and mobile applications, and connect to existing cashiering, permitting, parking, and recreation systems commonly used by public-sector organizations.

The platform is designed to support flexibility and continuity by allowing the City, where appropriate, to retain existing payment applications or integrations while transitioning merchant services under its banking relationship. Gateway and middleware integrations are supported to align with the City’s operating environment and reduce the need for system replacement or re-engineering.

Support and Training
During implementation, the City’s appropriate support and training needs are identified so that City staff are prepared to use the Converge platform and related merchant-service tools effectively. Initial onboarding includes assistance with setup, verification that required materials and equipment have been received, and training for designated City users. Training is delivered remotely and may include train-the-trainer sessions, user guides, and role-based instruction tailored to City workflows.

Ongoing support and training remain available throughout the relationship. BMO works with its payments partner to provide continued assistance as staff roles change, services expand, or new features are introduced. The City is kept informed of industry rule changes, regulatory updates, and product enhancements, with guidance provided to support timely adoption and continued compliance.

60 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS d. What authorization methods do you support, and which do you recommend? A range of secure authorization methods is supported to accommodate the City’s payment environments and processing needs. Authorization capabilities include internet-based processing through a secure TLS 1.2 gateway, dedicated IP connectivity, and other bank-approved encrypted network options that support reliable, real-time transaction approval.

For most City use cases, internet-based authorization via a secure gateway is recommended. This approach provides strong encryption, high availability, and real-time authorization without requiring specialized network infrastructure, making it well suited for public-facing online payments, virtual terminals, and integrated cashiering systems.

Where specific operational requirements or system architectures warrant alternative connectivity, additional authorization methods may be supported, including dedicated network connections or file-based authorization, subject to review during implementation. Configuration decisions are made collaboratively to align authorization methods with transaction volumes, security expectations, and internal control requirements.
e. Please quote a discount rate and all other applicable charges for the credit card processing described above. Please include rates for both swiped and non-swiped transactions.

Two pricing structures are available for the City’s merchant card processing, allowing the City to select the approach that best aligns with policy preferences, constituent experience, and cost-recovery objectives. Both options support card-present (swiped/contactless) and card-not-present (non-swiped) transactions.

Option 1 – Service Fee Program
Under this model, the City can offset the cost of card acceptance by applying a service fee of 2.75% to credit and debit card transactions, subject to cardholder authorization and applicable regulations. When this option is implemented, merchant processing fees are paid by the cardholder, and the City does not incur processing costs for those transactions.

Option 2 – Interchange and Assessments Plus Pricing
Under this model, Visa, MasterCard, and Discover transactions are priced at the applicable card-network interchange and assessment fees (pass-through at cost), plus a 0.15% processing fee.

This structure applies to both card-present and card-not-present transactions and provides transparency into underlying card-network costs.

Additional Fees
One-Time Fees (per merchant account):
• Set-up / Reprogramming Fee: Waived
• Monthly Fees (per merchant account):
• Monthly Minimum: Waived
• PCI Security Program Fee: $10
• Per-Occurrence Fees:

61 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS • Chargeback / Retrieval Fee: $15
• NSF / Returned Item Fee (not a refund or credit to the cardholder): $20 • Voice Authorization Fee: $0.85
• Per Authorization Fee: $0.10
Pricing options and fee structures are reviewed with the City during implementation to ensure alignment with City policies, operational workflows, and constituent-facing considerations. f. Clearing time lag between deposit and posting.

Card settlement deposits credited to a BMO Bank checking account receive next business day funding, provided settlement files are received by 7:00 p.m. PT. This timing supports predictable cash flow, timely posting, and efficient reconciliation for the City’s merchant payment activity. g. What is the allowable percentage of downtime and notification of downtime periods?
Merchant card processing services are designed to maintain system availability of at least 99.9 percent per calendar month, excluding excused downtime such as scheduled maintenance or events outside the payment platform’s control. This availability standard applies to the ability to receive and respond to transaction authorization requests and supports reliable, continuous payment acceptance for the City.

Planned maintenance activities are communicated in advance through established notification channels to minimize operational impact. In the event of unplanned service interruptions, notification and status updates are provided in accordance with established incident-management and communication procedures, ensuring the City has timely awareness and visibility until service is restored. h. Guarantees against "downtime" with services.

Merchant card processing services are supported through a platform that maintains system availability of at least 99.9 percent per calendar month, measured by the ability to receive and respond to transaction authorization requests. This availability standard excludes excused downtime, such as scheduled maintenance or events outside the payment platform’s control.

This level of availability supports reliable, continuous payment acceptance for the City while aligning with public-sector expectations for service continuity and operational resilience. i. What are the fees associated with debit and credit card transactions? The fees associated with debit and credit card transactions, including rates applicable to card-present (swiped/contactless) and card-not-present (non-swiped) transactions, are fully detailed in Section 10(e) above. That section outlines the available pricing structures, applicable discount rates, and all related per-transaction and per-occurrence fees for merchant card processing services. j. How is the applicable interchange fee determined for each transaction? What does the financial institution recommend for minimizing interchange fees? Interchange fees are established by the card networks (such as Visa, MasterCard, Discover, and American Express) and are determined on a per-transaction basis. The applicable interchange rate depends on factors including card type, transaction method (card-present versus card-not-present),

62 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS data elements provided at authorization, and compliance with card-network qualification requirements. Transactions that meet higher qualification standards generally receive lower interchange rates, while transactions missing required data elements may incur higher rates or downgrades.

To help the City manage and minimize interchange costs, regular account reviews and payment-optimization practices are recommended. These reviews analyze historical processing activity and industry benchmarks to identify opportunities to improve interchange qualification and reduce avoidable fees. Emphasis is placed on improving data quality, aligning transaction flows with card-network requirements, and adjusting acceptance practices where appropriate.

Ongoing preparation for card-network and regulatory updates further supports interchange optimization. Card networks typically introduce program and rule changes periodically, which may affect interchange qualification and fee structures. Proactive testing and system readiness help ensure that transactions continue to qualify at the most favorable rates available when changes are implemented.

To support transparency and informed decision-making, analytics and reporting tools provide visibility into payment activity, interchange qualification results, downgrade reasons, chargebacks, and associated fees. These insights allow the City to monitor trends, allocate costs accurately, and make adjustments that support efficient reconciliation and long-term cost control. k. What is the reporting methodology and the availability of reports? Merchant-services reporting is designed to provide the City with clear, actionable visibility into payment activity while supporting reconciliation, audit review, and cost management. Reporting tools are structured to align with City workflows rather than simply delivering raw data.

The City has access to at-a-glance reporting through the Payments Insider portal, which provides visibility into transactions, monthly statements, and activity by individual locations or City-defined hierarchies. Standard daily and period-end reports are available and include key data elements such as interchange qualification levels, downgrade reasons, chargebacks, exceptions, and fees. Custom reporting periods may be defined to support quarterly or other City reporting cycles.

For deeper analysis and system integration, Payments Core 365 reporting delivers comprehensive transaction and settlement data in universal file formats, enabling direct upload into the City’s reconciliation tools and ERP environment. These reports support deposit verification, cost allocation, interchange analysis, and chargeback tracking, reducing manual effort and improving accuracy.

In addition, the City benefits from executive-level and chargeback-focused reporting, delivered on a recurring basis, which provides insight into industry trends, card-network changes, interchange and assessment impacts, location-level performance, and chargeback activity. These reports are paired with consultative review to support informed decision-making and proactive management of payment operations.

Reports are available on a daily, monthly, and ad-hoc basis, ensuring the City has timely access to information needed for operational oversight, reconciliation, and financial reporting.

See Exhibit 21: Sample Reporting for available reports.

63 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS l. How are adjustments and chargebacks handled? Are chargebacks and other debit adjustments netted from daily proceeds or debited separately? Is the discount fee refunded when a chargeback or refund occurs? What is the rebuttal process?
Chargebacks
Chargebacks and retrieval requests are managed through a structured, centralized dispute-resolution process designed to minimize operational impact and provide the City with timely visibility and response options. Notifications of chargebacks or retrieval requests are delivered through secure electronic channels, including online notification and email, and are coordinated through the City’s designated relationship support team to ensure prompt attention and resolution.

Chargebacks that require documentation from the issuing bank are typically processed within an average of seven business days, while those that do not require documentation are generally processed within an average of three business days. An automated dispute-resolution platform is used to track each case from initiation through resolution, apply card-network rules, and determine whether a chargeback should be represented to the issuing bank or resolved through debit based on reason codes and eligibility.

Debit Adjustments
Chargebacks and related debit adjustments are debited separately and are not netted from daily settlement proceeds. Merchant accounts may be structured to support separate depository accounts for settlements, billing, and chargebacks, allowing the City to clearly track and reconcile activity. When a dispute is received from the card networks, an ACH debit is generated to the designated chargeback account.

Discount Fees and Refunds
Processing fees and discounts are not refunded when a chargeback or refund occurs, consistent with standard card-network practices. Discount and processing fees are typically debited monthly, via ACH, to the designated billing account at the beginning of the month following processing activity.

Rebuttal and Dispute Process
Where applicable, disputes are evaluated using automated decisioning logic based on card-network guidelines to determine whether representment is appropriate. Chargebacks requiring additional review are grouped by network reason code and researched to identify whether the required documentation is available to support rebuttal. If documentation is available, the transaction is represented to the issuing bank. If documentation is not available, the City is notified and provided the opportunity to supply supporting materials within the applicable response timeframe.

Disputes not resolved through representment may proceed to arbitration, which may involve additional fees in accordance with card-network rules. Throughout the process, automated reminders and status tracking help ensure deadlines are met and exposure is minimized.

This approach provides the City with clear separation of funds, predictable reconciliation, and a controlled rebuttal process, while maintaining transparency and alignment with public-sector financial oversight requirements.

64 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS m. What security features are available, including account number encryption and a purging policy?
Merchant card services are supported by a layered security framework designed to safeguard City and cardholder data throughout the payment lifecycle. Security controls include firewalls, intrusion detection systems, data loss prevention tools, file-integrity monitoring, access controls, patch-management processes, and continuous network monitoring to protect systems, applications, and data from unauthorized access or disruption.

Account number protection is achieved through the use of encryption and tokenization, which remove sensitive cardholder data from the City’s environment and limit exposure during authorization, processing, and settlement. EMV-enabled technology is supported for card-present transactions to further reduce fraud risk. Web-facing applications are protected through web application firewalls (WAF) and monitored using a combination of network-based and host-based security controls.

Physical and operational security measures protect facilities and critical systems and include controlled access to buildings and data centers, continuous video monitoring of entry points, secure access credentials, and formal approval processes for privileged system access. All security systems are supported by redundant power infrastructure, including UPS and generator backup, to ensure continuity.

Governance, training, and audits support consistent security practices. Employees complete required background checks and receive initial and ongoing training in data security and privacy. The environment is subject to independent and internal audits, including SSAE 18, PCI DSS, GLBA, and Sarbanes-Oxley compliance reviews, ensuring adherence to regulatory and industry standards.

Data retention and purging practices align with applicable legal, regulatory, and operational requirements. Records are retained only for the period required by law or policy and are securely disposed of when no longer needed. Non-retention documents are destroyed using controlled shredding processes to prevent unauthorized disclosure.

This comprehensive security approach supports confidentiality, integrity, and availability of payment data while aligning with public-sector control, audit, and compliance expectations. n. The bank's efforts to ensure Payment Card Industry (PCI) data security standard compliance and liability.

Merchant card services are delivered within a PCI DSS–compliant environment, with cardholder data protection treated as a core operational priority. All systems involved in payment processing are required to maintain compliance with Payment Card Industry Data Security Standards (PCI DSS), and all participating vendors and partners are held to the same compliance requirements.

PCI compliance is validated through an annual PCI DSS assessment, with a current Attestation of Compliance (AOC) maintained. Compliance assessments are conducted using a Qualified Security Assessor (QSA) to ensure independent verification of controls, processes, and system configurations supporting payment security.

These practices help ensure that cardholder data is protected throughout the payment lifecycle and that merchant services operate in alignment with industry standards, regulatory expectations, and public-sector risk management requirements.

65 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS o. What type of point-of-sale terminals are required? What is the cost or lease options per terminal?
The City may utilize standalone point-of-sale (POS) terminals that support secure, in-person payment acceptance across City departments and locations. Terminal selection is coordinated with the City during onboarding to ensure alignment with transaction volumes, mobility needs, and operational workflows.

As part of the proposed solution, the City will be provided with four (4) POS terminals at no cost. All supported terminals offer the following standard capabilities:
• Acceptance of credit, PIN debit, and Electronic Benefit Transfer (EBT) • Contactless payments, including digital wallets such as Apple Pay • Support for EMV chip and magnetic-stripe transactions • PCI-compliant PIN entry devices (PEDs)
• Encryption and tokenization to protect primary account numbers (PAN) • “No-signature” processing for qualifying transactions • Automated software updates to maintain current functionality and security • Back-lit keypads to support use in low-light environments The following terminal models are available for purchase or monthly rental:

Terminal Model Purchase Price (each) Monthly Rental (each) Ingenico Desk 3500 $270 $10
Ingenico Move 5000 (Bluetooth) $779 $25
Ingenico Move 5000 (Wi-Fi) $779 $25
Wireless Connectivity (Optional):

Wireless Option Purchase Price
(each) Monthly Fee (each)
AT&T Direct SIM Card $20 N/A
Wireless Service N/A $20
This range of terminal and pricing options allows the City to deploy fixed or portable POS devices as needed while maintaining predictable costs, secure processing, and consistent user experience across payment locations.
p. Provide information on rewards or incentive programs associated with a business credit card.

City-issued business credit cards are not part of merchant services and are instead provided under the City’s banking relationship. As such, rewards or incentive programs associated with business credit

66 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS cards are addressed under the Purchasing Card (P-Card) Services section below, which is separate from Merchant Services.

This distinction ensures clarity between card acceptance services (merchant services) and card issuance and spend management (banking services), and avoids commingling pricing, controls, or program features across service categories.

PURCHASING CARD (P-CARD) SERVICES
BMO Commercial Card (Purchasing Card Program)
The BMO Commercial Card program is designed to help the City manage purchasing, travel and entertainment, and fleet expenditures through a single, controlled card platform. This consolidated approach reduces administrative effort, improves visibility into spend, and supports consistent policy enforcement across departments.

Key benefits to the City include:
• Administrative efficiency: A single program to administer and reconcile across multiple spend categories
• Cardholder convenience: One card for eligible purchasing, travel, and fleet expenses • Contactless payments: Tap-to-pay functionality for qualifying transactions, supporting faster checkout and reduced handling
• Improved reconciliation: Integrated reporting and back-end efficiencies that reduce errors and manual processing
• Cash-flow flexibility: Up to 21 days between purchase and payment due date Rewards and Incentives
The program includes a cash-back reward feature for eligible purchases. Under the Mastercard® rewards structure, the City may earn 1 percent cash-back on qualifying spend, credited annually. There is no cap on the amount of cash-back that may be earned, allowing rewards to scale with usage.

Spend Dynamics
All Commercial Card programs are supported by Spend Dynamics®, a web-based program-management and reporting platform available 24 hours a day, 7 days a week. Spend Dynamics provides the City with:
• Advanced policy and authorization controls
• Online approval workflows
• Transaction-level visibility and reporting
• Exportable data to support reconciliation and audit review • Mobile access for authorized users
These tools support effective oversight, cost control, and transparency across the City’s card program.

67 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS Authorization and Spend Controls
The program includes configurable controls to align card usage with City policy, including:
• Merchant category code (MCC) restrictions
• Daily and per-transaction spending limits
• Cash-advance blocking
• Role-based approval and monitoring
Figure 7. Spend Dynamics Dashboard
These controls help ensure appropriate use while reducing the risk of unauthorized or non-compliant spending.

BMO V-PAYOSM
For broader payables automation, BMO
V-PAYO provides an integrated solution
that supports virtual cards, ACH, wires,
and checks through a single payment
file. This capability allows the City to:
• Automate payment decisioning
using defined business rules
• Reduce manual processing and
duplicate workflows
• Improve reconciliation through
consolidated reporting
• Integrate payment activity with the City’s ERP environment V-PAYO supports flexible file formats and secure connectivity options, enabling efficient adoption without re-engineering existing systems.

Why This Matters to the City
Together, BMO’s Commercial Card, Spend Dynamics®, and V-PAYO solutions provide the City with a controlled, transparent, and scalable spend-management framework that improves efficiency, strengthens oversight, and delivers measurable value through rewards and operational savings.

Figure 8. BMO V-PAYO Dashboard

68 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS

11. Disaster recovery
a. Describe the bank’s formal and tested disaster recovery plan.

Disaster Recovery and Business Continuity
BMO maintains a current, fully tested, and enterprise-wide Disaster Recovery (DR) and Business Continuity Management (BCM) program, designed to ensure resilience, rapid recovery, and continued service availability in the event of a system failure, facility outage, or large-scale disruption. The program incorporates business continuity, disaster recovery, and crisis management, and is aligned with applicable regulatory expectations and industry best practices, including FFIEC guidelines.

See Exhibit 20: BMO Business Continuity Management Readiness Disclosure.

Enterprise Disaster Recovery Capabilities
IBM Sysplex-Based Inter-Site Recovery
BMO leverages IBM Sysplex Future technologies to support inter-site recovery without loss of service, with only in-flight transactions potentially affected. These capabilities allow BMO to shift workloads across redundant systems to maintain continuous operations.

Intra-Site Hot-Site Redundancy
In addition to inter-site resiliency, BMO maintains a completely independent hot-site environment that can be activated in the event of an intra-site failure. Service restoration within the hot-site aligns with internal service-level expectations for the associated application or business function.

Data Mirroring & Storage Resiliency
BMO uses RAID 5 mirroring, remote data facility replication, and high-speed file transfer mechanisms to maintain a constant, ready-state recovery environment across its DR architecture.

BMC Monitoring & Backup
BMO employs BMC ProactiveNet Performance Management (BPPM) and BMC Patrol for online, real-time backups every three hours, ensuring data and application availability.

Network Redundancy
BMO uses a fully redundant frame-relay network with multiple termination paths supporting both primary and alternate processing sites. Network routing automatically aligns with the active processing center to support uninterrupted service delivery.

Historical Continuity
BMO has never lost availability at its world-class primary processing site and has never had to invoke full intra-site hot-site activation.

69 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS Business Continuity & Technology Resilience
BMO’s BCM program includes:
• Business Impact Analyses (BIAs) for all business units to determine criticality levels.
• Annual reviews and approvals of Business Continuity Plans (BCPs).
• Technology resilience through secure primary and
secondary data centers with:
− dual utility feeds
− UPS and backup generators
− redundant water supplies
− redundant communication lines
• Contingency sites with fully configured workstations support business recovery and leadership continuity.

Testing & Validation
The BCM program performs:
• Annual integrated disaster-recovery testing for core clearing and settlement functions in accordance with FFIEC guidance.
• Regular joint testing with third parties to confirm Recovery Time Objectives (RTOs). • Annual exercises across critical business lines to validate operational readiness. • Testing includes restoration of functionality and processing of live test transactions through the online systems.

Crisis Management & Communications
BMO maintains a robust crisis-management structure, continuously enhanced based on exercises and real-world events. This structure covers scenarios such as natural disasters, pandemics, civil unrest, cyber events, and utility failures.

Client Communications
• BMO uses a formal incident-notification system to communicate with clients, employees, and stakeholders during a crisis.
• The TPS Status Page provides real-time updates on unplanned service outages or delays, eliminating the need for clients to contact support directly.

The TPS Event Management team posts and updates incident notifications as soon as impacts are confirmed.

Summary
BMO's disaster recovery and continuity framework combines IBM Sysplex advanced redundancy, independent hot-site capabilities, BMC-driven backups, RAID 5 mirroring, redundant networks, and annual FFIEC-aligned testing to ensure resilient, secure, and dependable service delivery. Supported by a mature crisis-management structure and established communication procedures, BMO is fully capable of maintaining operations and restoring services rapidly in the event of a disruption.

Figure 9. BMO's Business Continuity
Framework

70 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS b. How quickly will backup facilities be activated?
Backup facilities are designed to be activated immediately to within several hours, depending on the nature and scope of the disruption, consistent with defined recovery time objectives established through formal business impact analysis. Mission‑critical systems are prioritized for rapid recovery using hot‑site and offsite capabilities, with all essential services recoverable within established timelines and validated through regular testing in accordance with FFIEC guidance. c. Describe the bank’s operating capabilities to assist the City in the event of a disaster or declared emergency.

BMO maintains a formal, tested business continuity and disaster recovery program designed to support the continued availability of banking services during a disaster or declared emergency. Core systems are supported by redundant processing environments and secure data replication, with critical functions such as deposits, disbursements, ACH, wire transfers, online banking access, and information reporting prioritized for restoration and supported by regular testing and established client communication protocols to maintain operational continuity and safeguard public funds.

12. Dispute Resolution Process
a. Describe your process for:
• Positive Pay
• Paper checks
• Payments and Deposits
• Lockbox
• Others
BMO maintains established dispute resolution procedures across all banking services to ensure timely investigation, clear communication, and appropriate resolution of errors or discrepancies. The City’s assigned Relationship Manager and Client Service team coordinate all investigations and serve as the primary point of contact throughout the process.

Positive Pay
If the City identifies a Positive Pay discrepancy, the City notifies its assigned Relationship Manager or Client Service Advisor. BMO reviews issued item data, exception history, and supporting documentation to determine resolution. Any required adjustments are processed on a case‑by‑case basis and reflected on the City’s account analysis statement in accordance with standard industry practices.

Paper Checks
For check‑related discrepancies, the City notifies BMO within 30 days of the statement date. BMO coordinates the investigation, communicates findings, and processes any necessary adjustments in a timely manner.

Payments and Deposits
The City reports errors or discrepancies to its assigned Relationship Manager within 30 days of statement availability. BMO investigates the issue, coordinates with internal teams as needed, and provides updates until resolution.

71 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS Lockbox
Lockbox discrepancies are reported to BMO Client Services. BMO coordinates directly with Lockbox Operations and the Adjustments team to resolve the issue, identify root cause, and process any required corrections.

Others: ACH and Wires
ACH and wire discrepancies are reviewed in accordance with applicable regulatory and network rules.

Upon notification, BMO initiates an investigation, provides a case reference, and coordinates resolution with the appropriate parties. Fraud‑related matters are escalated to BMO’s fraud specialists, with status updates provided throughout the review.
b. Are there any established turnaround times for research and adjustment items? If yes, please specify.

Yes. All inquiries follow established service standards based on complexity and severity. Most issues are resolved or updated within 24 hours, with ongoing communication provided for matters requiring additional research. Provisional credit may be considered when appropriate. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

72 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS H. CONTROL
a. Specify whether the online capabilities are accessible 24/7. If not, list the hours of availability for each service.

Online banking and related treasury services are available 24 hours a day, seven days a week, excluding scheduled maintenance. When maintenance is required, advance notice is provided whenever possible and scheduled outside normal City business hours to minimize operational impact.

Mobile access extends OLBB functionality by providing secure, read-only visibility into balances and transaction activity. Mobile access uses the same security controls, user entitlements, and approval structures as desktop access, does not introduce transaction authority, and supports operational awareness outside normal business hours.
b. Regarding Data Security and Anti-Fraud Procedures, describe your institution’s overall security system to safeguard the City’s funds, prevent fraudulent transactions, and identify and alert the City of irregular/abnormal transactions and transaction patterns. The institution shall partner in the City’s internal control framework for banking/cash handling-related functions.

Please identify technologies you have in place that will assist the City in improving its internal control effectiveness.

Information Security and Fraud Prevention Framework
BMO maintains a layered, FFIEC‑aligned security and fraud‑prevention framework designed to safeguard public funds, prevent unauthorized transactions, and support the City’s internal control environment. Controls are applied consistently across online banking, payment platforms, file‑transmission channels, and supporting infrastructure.

Security governance and standards
The Information Security Program aligns with recognized regulatory guidance and industry frameworks, including FFIEC, NIST, ISO 27001, and applicable federal and state banking regulations. Controls are reviewed regularly to ensure continued effectiveness as threats evolve.

Access controls and authentication
Access to OLBB is restricted to authorized users through role‑based entitlements. Payment activity enforces segregation of duties, dual approvals, and secondary authentication. User access, transaction limits, and approval workflows are administered by the City’s designated administrators within defined control parameters, supporting audit and oversight requirements.

Fraud monitoring and detection
Transaction activity across checks, ACH, wires, and electronic channels is monitored 24-hours a day, seven-days a week. Monitoring tools analyze transaction behavior to identify irregular or suspicious activity. When suspected or confirmed fraud is detected, the City is notified promptly, and investigations are initiated in accordance with established escalation and response procedures.

73 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS Alerts and visibility
OLBB provides configurable alerts for transaction activity, exception items, approvals, balance thresholds, and file transmissions. Alerts may be delivered by email or text message to support timely awareness, escalation, and deadline management.

Data protection and transmission security
All online sessions and file transmissions are protected using 256‑bit encryption or equivalent secure protocols. Data is encrypted in transit and at rest, and secure file‑transfer options use authenticated, encrypted delivery methods consistent with public‑sector security expectations.

Together, these controls support segregation of duties, auditability, fraud prevention, and alignment with the City’s internal control framework.
c. Describe the electronic or manual system that provides the proposed services and backup and recovery capabilities. Who would the City contact to initiate day-to-day banking transactions if online capabilities and functionality are temporarily unavailable?
Treasury and online banking services are supported by redundant systems, geographically diverse data centers, and tested backup and recovery protocols. Disaster recovery and business continuity plans are maintained and tested regularly to ensure service availability during system disruptions or declared emergencies.

If online access is temporarily unavailable, the City may contact its Dedicated Client Service Advisor or Relationship Manager, who have visibility into account structures, processing instructions, and service configurations. This ensures continuity for time-sensitive banking activities until full system functionality is restored.
d. Include a copy of the Service Organization Control (SOC) reports conducted under the Statements on Standards for Attestation Engagements No. 18 (SSAE 18) regarding controls.

Independent assurance over the control environment is provided through SOC reports conducted in accordance with SSAE 18, covering controls relevant to security, availability, processing integrity, and confidentiality. These reports support the City’s audit, risk-management, and compliance requirements and are provided as confidential and included as Exhibit 4: SOC 2 Report (2024) + Bridge Letter. e. Describe the bank’s security procedures for its information reporting system for access and information protection.

Information-reporting systems are protected through role-based access controls, multifactor authentication, encryption, and comprehensive audit logging. User activity, access changes, and report retrieval are recorded and retained to support internal review, external audits, and regulatory examinations.

74 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS f. Is system administration performed by the bank or the customer? What functions does the security administrator perform?
System administration responsibilities are shared. Core platform security and infrastructure controls are managed by the bank, while the City designates authorized administrators to manage user access, entitlements, approval structures, and reporting permissions. This model preserves City control over internal access while leveraging centralized security and monitoring.

Figure 10. Shared Administration Responsibilities Structure This shared model allows the City to retain direct control over internal access and approvals while benefiting from centralized platform security, monitoring, and oversight. g. Is an audit trail report available, showing all activity, by whom, and when for each system?
Yes. OLBB provides comprehensive audit trail reporting that records user access, transaction initiation, approvals, changes, and system activity. These reports support reconciliation, internal controls, and public-sector audit requirements and are available to authorized City administrators.

A list of available audit reports appears below. The demo links directly to the audit reports page, where you can view and generate sample reports.

Audit Reports
Online Banking for Business – Audit Reports
User Access Change Report Shows user ID, action, section, change type, executed by, executed date, approved by, and approved date
User Detail Report Shows user profile, user services, user accounts, and settings for all entitled services
User Activity Audit Report Shows user ID, name, activity – login, navigation, logout, actions, details, date/time
Alert History Report Shows history by user of their alert events for subscribed services, such as incoming transactions, outgoing ACH/wires, pending approvals, balances, etc.

Table 11. OLBB Audit Reports
These reports provide full transparency into system usage, configuration changes, and transaction activity.

75 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS h. Describe the types of insurance and bonding carried.

BMO maintains insurance coverage consistent with financial-industry standards and statutory requirements, including general liability, professional liability (errors and omissions), financial institution bond (crime and employee fidelity), directors’ and officers’ liability, and cyber liability.

Coverage limits are maintained at levels appropriate for a national banking institution serving public-sector clients
Descriptions have been provided as follows:
• Financial Institution Bond: Provides coverage primarily against first party loss arising out of employee dishonesty, fraudulent or malicious acts, loss of property resulting from robbery, burglary, mysterious disappearance (on premises or in-transit), theft, forgery/alteration, loss to contents of safe deposit box, computer manipulation, or extortion. Various sub-limits and policy conditions apply based on loss (or losses). Limits = $400 million. • Errors and Omissions: Program/policy purchased to comply with various regulatory and contractual requirements. Limits = $50 million.
• Insurance policy coverages include cyber (network security and privacy liability) coverage. Policy limits are maintained at a minimum of $25,000,000 (or as statutorily required). i. Include a copy of the bank’s most recent reports issued per the Statement on Standards for Attestation Engagements (SSAE 16) for any processes or systems relevant to the services under this RFP.

Relevant SSAE 18 SOC 2 reports covering applicable systems and processes have been provided as exhibits. These reports provide independent assurance over control design and operating effectiveness for services supporting the City’s banking relationship.

Please refer to our SOC 2 Report that has been provided as Exhibit 4. j. If not already covered in the SSAE 16 report, describe the disaster recovery plans for each proposed service for short- and long-term disaster and power failure recovery.

Disaster recovery and business continuity controls for the proposed services are covered within the SOC 2 reports provided. These controls include redundant processing environments, tested recovery procedures, and defined recovery time objectives aligned with FFIEC guidance. k. Describe any additional security measures available to the City to minimize the risk of unauthorized transactions in its accounts.

In addition to baseline controls, optional, City-configurable security enhancements may be enabled based on risk tolerance and operational preferences. These include enhanced approval structures, transaction-specific authorization rules, payment-channel restrictions, customized alerts, time-of-day processing limits, and user-specific transaction thresholds.

These options allow the City to apply layered, risk-based protections that strengthen oversight while preserving efficiency, auditability, and local control over transaction authorization.

76 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS I. SERVICE LEVEL AGREEMENT (SLAS)
The City of Los Alamitos requires the selected financial institution to meet defined service performance standards to ensure timely, accurate, and secure delivery of banking services. Proposers shall acknowledge and agree to the following minimum Service Level Agreements (SLAs) and describe their ability to meet or exceed them.

Failure to meet the SLAs may result in service credits, fee reductions, or other remedies as outlined below.

1. Availability and System Performance
• Online banking systems shall be available no less than 99.5% of the time, excluding scheduled maintenance.
• Scheduled maintenance shall be communicated to the City at least five (5) business days in advance and performed outside normal City business hours whenever possible.
• Emergency or unplanned outages shall be reported to the City within 30 minutes of detection, with regular status updates until resolution.

BMO acknowledges and agrees to the City of Los Alamitos’ minimum Service Level Agreement requirements and confirms its ability to meet or exceed each standard.

Online banking systems shall be available no less than 99.5 percent of the time, excluding scheduled maintenance. BMO’s standard performance target for OLBB is 99.99 percent monthly system uptime, which exceeds the City’s minimum requirement and has been consistently achieved through a dual-instance architecture that provides automatic failover during unplanned events.

Over the past 24 months, OLBB availability has met or exceeded the City’s SLA threshold, demonstrating sustained performance above the required standard, including the following representative results:
• Q2 2024 (February–April): 100.00%
• Q3 2024 (May–July): 99.61%
• Q4 2024 (August–October): 100.00%
• Q1 2025 (November–January): 100.00%
• Q2 2025 (February–April): 100.00%
• Q3 2025 (May–July): 99.99%
• Q4 2025 (August–October): 100.00%
• Q1 2026 (November–January): 99.965% (as of January 15, 2026) Scheduled maintenance is communicated to the City at least five business days in advance and are planned and executed to minimize operational impact. Maintenance activities are typically performed during weekend maintenance windows and outside normal City business hours whenever possible. BMO communicates scheduled maintenance, system upgrades, and quarterly system enhancements through targeted email notifications and banner messages within OLBB. Updates are available to authorized users upon their next login. For substantial system upgrades, prior versions may remain accessible in a read-only mode for a limited period following migration to support continuity and transition.

77 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS Emergency or unplanned outages are reported to the City within 30 minutes of detection, with regular status updates provided until resolution, in accordance with the City’s SLA requirements.

Service level agreements, including applicable service credits, fee reductions, or other remedies, are administered consistent with the City’s standards. Any service disruption attributable to the bank is reviewed and addressed in accordance with the agreed SLA terms.

2. Transaction Processing and Cutoff Times
• ACH and wire transactions submitted by published cutoff times shall be processed same day, without exception.
• Incoming wires and ACH credits shall be posted and made available to the City within one (1) business hour of receipt.
• Errors resulting in delayed posting or missed cutoff times attributable to the bank shall be corrected same business day, with written explanation provided to the City.

BMO acknowledges and agrees to the City of Los Alamitos’ Service Level Agreement requirements for transaction processing and cutoff times and confirms its ability to meet or exceed each standard.

ACH and wire transactions submitted by published cutoff times are processed for same-day value, without exception. Incoming wires and ACH credits are posted and made available to the City within one (1) business hour of receipt, in accordance with the City’s requirements and Federal Reserve settlement rules.

Funds received through Federal Reserve Bank wire transfers and preauthorized electronic credits are generally available on the same Business Day the deposit is received.

Any errors resulting in delayed posting or missed cutoff times that are attributable to the bank are corrected the same business day, with a written explanation provided to the City.

ACH Processing Deadlines
ACH files are processed in "windows" throughout each business day (Central Time). Processing windows allow time for any file exceptions/issues to be resolved (e.g., exceeded limit, bad file, missing control totals).

As previously noted in Table 5, our processing deadlines for originating ACH transactions are as follows:

ACH Origination Channel Risk Type Same Day Cut-off Standard Next Day Cut-off
OLBB ACH Payments Module
Settlement Line 12 pm PT 6 pm PT
Pre-fund (Standard) 11:30 am PT 6 pm PT
Pre-fund Deluxe 11:30 am PT 3:30 pm PT
Nacha File Delivery
OLBB File Transfer Facility or
Secure File Transfer Protocol
(SFTP) / Direct Send
Settlement Line 12:15 pm PT 6 pm PT
Pre-fund (Standard) 11:30 am PT 6 pm PT
Pre-fund Deluxe 11:30 am PT 3:30 pm PT

78 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS Wire Cutoff Times
Wire transfer requests received after deadlines stated in Table 12 will be handled on the next business day. All times shown below for BMO are in Pacific Time.

Phone Payments Cut-off (Pacific Time)
Domestic wire payment initiation/approval 5:30 a.m. - 2:45 p.m.

International wire payment initiation/approval – U.S. Dollar (for same day value) 5:30 a.m. - 2:45 p.m.

International wire payment initiation/approval – Canadian Dollar & Mexican Peso (for same day value) 5:30 a.m. - 1 p.m.

International wire payment initiation/approval – Euro & British Pound Sterling (for same day value) 6:30 a.m.

International wire payment initiation/approval – other foreign currency (for next day value) 3:35 p.m.

Tax payments 5:30 a.m. - 1 p.m.

Draw down request 5:30 a.m. - 2:45 p.m.

Internal transfer 5:30 a.m. - 3 p.m.

OLBB
Domestic wire payment initiation/approval (for same day value)
3:35 p.m.

International wire payment initiation/approval – U.S. Dollar (for same day value)
3:35 p.m.

International wire payment initiation/approval – Canadian Dollar & Mexican Peso (for same day value)
1:00 p.m.

International wire payment initiation/approval – other foreign currency (for next day value)
3:35 p.m.

Draw down request 3:35 p.m.

Tax payments 1 p.m.

Internal transfer (cut-off is 7 p.m. when using the account transfer module)
3:35 p.m.

Electronic Data Interchange (EDI)
File submission from client for domestic wire payment 3:35 p.m.

File submission from client for international wire payment 1:15 p.m.

Table 12. Wire Cutoff Times

3. Fraud Detection and Resolution
• The bank shall notify the City within one (1) business hour of detecting any suspected or confirmed fraudulent activity involving City accounts. • Fraud investigations shall be initiated immediately upon notification, with provisional credit issued within five (5) business days, where applicable. • Final resolution of fraud-related claims shall occur within ten (10) business days, unless extended by mutual agreement.

79 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS BMO acknowledges and agrees to the City of Los Alamitos’ Service Level Agreement requirements for fraud detection and resolution and confirms its ability to meet or exceed each standard.

The City is notified within one (1) business hour of detection of any suspected or confirmed fraudulent activity involving City accounts. Fraud investigations are initiated immediately upon notification, with provisional credit issued within five (5) business days, where applicable. Final resolution of fraud-related claims occurs within ten (10) business days, unless extended by mutual agreement.

BMO maintains 24/7/365 security monitoring and alerting to detect suspicious activity and potential threats. Fraud events are recorded and managed through a formal case management process, with appropriate controls implemented to prevent further exposure and support recovery efforts when required.

BMO maintains a well-defined incident management program to address fraud and security events.

Impacted parties are notified in a timely manner based on the scope and severity of the incident, and status updates are provided throughout the investigation and resolution process.

BMO’s information security and fraud management practices align with applicable regulatory and industry standards, including ISO 27001, GLBA, SOX, and HIPAA, and are subject to oversight by U.S. and international banking regulators. Independent assurance over relevant control environments is provided through third-party reviews, including SOC reports, which has been provided as Exhibit 4.

4. Research, Adjustments, and Disputes
• Standard research requests (e.g., check copies, ACH trace requests, deposit discrepancies) shall be completed within three (3) business days. • Complex research items shall be resolved within ten (10) business days, with interim status updates provided weekly.
• All adjustments resulting from bank error shall be processed promptly and without charge to the City.

BMO acknowledges and agrees to the City of Los Alamitos’ Service Level Agreement requirements for research, adjustments, and dispute resolution and confirms its ability to meet or exceed each standard.

Standard research requests, including check copies, ACH trace requests, and deposit discrepancies, are completed within three (3) business days. Most inquiries are resolved or updated within 24 hours, with status updates communicated to the City when additional research is required.

Complex research items are resolved within ten (10) business days, with interim status updates provided at least weekly until resolution. All inquiries are tracked through a formal case-management system to ensure timely follow-through, appropriate escalation of urgent matters, and transparency throughout the review process.

If resolution of a financial transaction requires additional time, provisional credit may be reviewed and issued on a case-by-case basis, as appropriate, until a final determination is reached.

All adjustments resulting from bank error are processed promptly and without charge to the City.

Corrections of deposit errors are accompanied by appropriate supporting documentation to assist with reconciliation and audit review.

80 PROPOSAL FOR CITY OF LOS ALAMITOS

SERVICESDEPOSIT

PROCESSRETURNED ITEM

OF DEPOSITSAVAILABILITY

PAYPOSITIVE ACH SERVICES RECONCILIATION TRANSFER FILE INVESTMENTS OVERNIGHT ECR MERCHANT SERVICES E-PAYMENT RECOVERY DISASTER RESOLUTION DISPUTE EXHIBITS

5. Service Credits and Remedies
If the bank fails to meet the SLAs outlined above, the City may, at its discretion:
• Receive service credits or fee reductions equal to the fees associated with the impacted service(s);
• Require corrective action plans;
• Consider repeated SLA failures as a material breach of the banking services agreement.
• Service credits shall be applied automatically and shall not require the City to submit a formal request.
• The City reserves the right to review SLA performance during periodic relationship reviews and contract renewals.

BMO acknowledges and agrees to the City of Los Alamitos’ Service Level Agreement requirements related to service credits and remedies and confirms its ability to administer and apply remedies in accordance with the City’s standards.

If BMO fails to meet the Service Level Agreements outlined in this proposal, the City may, at its discretion, exercise one or more of the following remedies:
• Receive service credits or fee reductions equal to the fees associated with the impacted service(s).
• Require corrective action plans to address and prevent recurrence of the issue. • Consider repeated SLA failures as a material breach of the banking services agreement.

Service credits are applied automatically and do not require the City to submit a formal request. SLA performance is reviewed as part of ongoing relationship management and during periodic service reviews or contract renewals to ensure continued alignment with the City’s expectations. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

81 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES J. IMPLEMENTATION/CONVERSION
a. Please provide a detailed implementation and conversion plan that identifies all tasks, estimated timeframes for the tasks, milestones, roles, and responsibilities for the City and Bank’s personnel. A list of the minimum anticipated deliverables, such as, but not limited to:
i. Configure bank account structure
ii. Implement electronic banking and reporting
iii. Configure and test file transmissions and electronic communication channels
iv. Establish security and encryption protocol
v. Implement ACH debit blocks, where appropriate
vi. Implement other banking services as determined
b. If a conversion team is used, how will the City’s account be transitioned to the ongoing client service team?
c. Indicate your plan for initial and ongoing education and training for City employees using your systems.

Implementation Approach & Conversion Plan
BMO will implement the proposed banking services using a structured, City‑focused conversion approach designed to ensure continuity of operations, accurate data migration, and readiness of City staff. The implementation plan will be aligned to the City’s desired timeline and coordinated closely with designated City personnel throughout the process.

A dedicated implementation Project Manager will serve as the primary point of coordination and accountability from kickoff through post‑implementation stabilization. The project manager will oversee task sequencing, milestone tracking, testing coordination, and issue resolution to ensure timely and successful delivery.

In advance of technical setup activities led by the Project Manager, BMO assigns a dedicated Client Onboarding Advisor (COA) to serve as the City’s primary onboarding contact. The COA provides centralized coordination throughout implementation and remains engaged for 30 days post-go-live to support stabilization and transition to ongoing service.

The COA is responsible for:
• Serving as the single point of contact during onboarding • Confirming onboarding scope, expectations, and readiness • Coordinating required documentation with internal onboarding and compliance teams • Facilitating account opening and service activation
• Aligning testing and training activities
Implementation & Support
City Today → With BMO
City Today:

Transitions introduce
operational risk without
structured coordination.

With BMO:

A dedicated implementation
manager and locally based
support ensure a controlled
transition and responsive
service.

82 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES • Monitoring onboarding tasks and inquiries through resolution • Transitioning the relationship to BMO’s ongoing Client Services team following stabilization This structured onboarding model—combining a Project Manager for execution and a COA for coordination—ensures accountability, continuity, and a controlled transition from implementation through steady-state support.

The implementation process includes defined phases for discovery, planning, configuration, testing, training, and launch. During testing, BMO works collaboratively with the City to validate file transmissions, account structures, payment workflows, reporting, and security controls prior to production use. Where appropriate, parallel processing or phased onboarding is used to reduce risk and support uninterrupted operations.

Training is provided to ensure City staff are prepared to use all services at go‑live. Training sessions are role‑based and coordinated in advance of launch, with supplemental reference materials available to support ongoing use.

Following go‑live, BMO conducts a post‑implementation monitoring period to confirm service performance, resolve any outstanding issues, and ensure billing and reporting accuracy. Once stabilization is complete, responsibility transitions seamlessly to the ongoing service and support team, with continued oversight through regular service reviews.

Implementation and Change Management
BMO recognizes that modernization involves not only new technology but also changes to daily workflows and staff responsibilities. The implementation approach includes structured onboarding, role‑based training, and a post‑go‑live stabilization period to ensure City staff are confident using new tools and processes.

Training focuses on practical, day‑to‑day activities such as ACH processing, exception review, reporting, and approvals. Following go‑live, the stabilization period allows issues to be identified and resolved quickly before transitioning to steady‑state support.

This guided approach helps the City move from manual to automated processes with minimal disruption and long‑term operational confidence.

Governance, Roles and Responsibilities
Implementation of the proposed services is managed through a structured conversion process designed to minimize disruption and ensure readiness prior to go‑live. A dedicated implementation project manager coordinates all onboarding activities, including account setup, file testing, user access configuration, and training.

City staff participate in testing and validation activities to confirm file formats, transmission timing, and reporting outputs. Training is provided by role and focuses on operational tasks such as ACH processing, exception review, approvals, and reporting.

Following go‑live, a stabilization period allows for monitoring, issue resolution, and confirmation that services are functioning as expected before transitioning to ongoing support.

83 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES Structured, PMI-Based Methodology
Our onboarding model follows a Discover, Engage, Define, Build, Launch & Monitor structure, providing the City with clear visibility into timelines, responsibilities, and expected outcomes.

Figure 11. BMO's Onboarding Methodology

1. Implementation Phases, Activities, and Deliverables
Step 1: Discover (Pre-Implementation)
Purpose: Confirm implementation scope and readiness prior to kickoff.

Key activities include: scope, pricing structure, account schematic, supporting documentation, and confirming City contacts for kickoff and status calls.

Deliverables: Implementation request inputs, confirmed City contact list, and preliminary timeline assumptions.

Steps 2 and 3: Engage and Define (Kickoff Call and Data Gathering) Estimated duration: 1 to 3 weeks
Kickoff call agenda includes:
• Confirm number of accounts and required documents and agreements • Review treasury products selected for each account
• Align on target dates for account opening and product go-live • Confirm readiness for connectivity and file format testing • Confirm training requirements and onboarding care session needs • Confirm weekly progress meeting cadence and City availability Deliverables: Finalized scope, confirmed schedule targets, and testing and training plan inputs

84 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES Step 4: Build (Digital Account Opening and Product Setup) Digital account opening: 1 to 5 days
BMO provides a digital process overview and checklist, and the City completes required documentation through the digital portal with electronic signatures.

Set-ups and progress calls: 2 to 12 weeks, depending on complexity Weekly progress meetings are led by the PM, with technical resources added as needed to support service onboarding, connectivity, and file testing.

Deliverables: Accounts opened, OLBB access enabled, service entitlements configured, and initial setup completion confirmations.

Step 5: Launch (Training and Onboarding Care)
Estimated duration: 1 to 3 weeks
The PM coordinates an onboarding care session to support initial OLBB login and schedules role-based training for applicable services.

Training is supported through multiple formats including webinars, live sessions, quick start guides, and self-paced tutorials for OLBB and applicable services such as ACH, wires, Positive Pay, and DepositEdge.

Deliverables: Completed training sessions, validated user access and entitlements, and readiness for go-live.

Step 6: Monitor (Go-Live and Stabilization)
Monitoring period: 30 days post-setup
During this period, the PM remains the City’s primary contact, monitors service inquiries through closure, confirms products are functioning as expected, and then work with the TPS Consultant to transition support to the ongoing service teams.

Deliverables: Stabilization confirmation, issue closure log, and formal transition to ongoing service.

2. Testing Plan (Connectivity and File Validation)
Testing and training on file transmissions are completed prior to go-live to support a smooth transition.

Communications Testing
Communications specialists work with the City’s technical team to select and implement the connectivity method, with testing beginning in the Define and Build stages around the fourth week of implementation.

Format Testing
After communications testing, the City transmits sample files for validation. BMO runs files through translation and mapping checks and works with the City to resolve formatting issues.

85 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES For payment file testing, the City may use BMO’s Payments File Validation Service to test ACH Nacha formats and support ISO 20022 migration scenarios where applicable.

Deliverables: Confirmed connectivity, validated test files, and documented results supporting go-live readiness.

3. Implementation Communications and Status Management
BMO maintains open communication throughout implementation, including weekly progress calls led by the PM and status reporting to monitor milestones and dependencies.

4. Post-Implementation Closeout
Following completion of the onboarding and monitoring period, the City receives a post-implementation survey to capture feedback on the onboarding experience.

5. Transition to the City
BMO’s PM will work with the TPS Consultant to coordinate the transition of all proposed services. Your TPS Consultant, Shawn Gandhi, works closely with our Client Service team to smoothly transition the servicing of your accounts after implementation to your Senior Client Service Advisor.

Please see Table 12: Sample Implementation Project Plan, on the following pages. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

86 PROPOSAL FOR CITY OF LOS ALAMITOS
Table 12: City of Los Alamitos Sample Implementation Approach & Conversion Plan Phase
Target
Dates
(Specific)
BMO Responsibilities City Responsibilities Los Alamitos Products / Scope
Key Deliverables /
Milestones
Pre-Implementation
Discovery
(post-selection)
May 14–
May 22,
2026
Assign dedicated implementation
Project Manager (PM) and confirm
implementation governance; initiate
discovery and collect scope inputs
(accounts, services, controls,
reporting); draft project plan and
dependency log.

Assign City project lead and
technical lead; confirm
stakeholder list (Finance, AP,
IT); provide current-state
overview (payment volumes,
account structure, reporting
needs, Tyler INCODE status).

OLBB access model; ACH
expansion; Positive Pay;
reporting and file transfer
requirements; Tyler
INCODE integration intent.

Selection notification
(City date) and
implementation
readiness package
initiated
Engage & Define
(kickoff and
requirements)
May 26–
June 12,
2026
Conduct kickoff; confirm number of
accounts and products per account;
confirm target go-live aligned to City
timeline; define testing and training
plan; confirm communications
cadence (weekly progress calls).

Provide account and service
requirements; confirm internal
control roles (approvers,
admins); confirm file formats
and transmission preference;
provide test contacts and
availability.

OLBB (roles, entitlements);
ACH (Nacha files from Tyler
INCODE); Positive Pay issue
file workflow; file transfer
method (FTF and/or secure
file transfer options). [
Approved project
plan, requirements
matrix, testing
schedule, training
roster.

Legal Documentation
and Account Opening
Preparation
May 26–
June 12,
2026 (in
parallel)
Coordinate required documentation
and onboarding tasks through digital
onboarding processes; validate
completeness to avoid schedule
delays.

Review and return required
agreements and onboarding
forms promptly (critical path);
confirm authorized signers and
administrators.

Deposit accounts; public
funds collateral processes
(as applicable); OLBB
enrollment prerequisites.

Documentation
package complete
and ready for
execution.

Contract Award and
Final Authorization
June 15,
2026
Confirm implementation start gates
and sequencing following award;
finalize go-live window and resource
allocation
Execute contract award actions
and authorize implementation
commencement
All in-scope products
Contract awarded by
City Council (City
date).

87 PROPOSAL FOR CITY OF LOS ALAMITOS
Phase
Target
Dates
(Specific)
BMO Responsibilities City Responsibilities Los Alamitos Products / Scope
Key Deliverables /
Milestones
Build: Account
Opening and Core
Setup
June 16–
June 26,
2026
Open accounts and configure core
services; enable Online Banking for
Business (OLBB) access and baseline
reporting; set up initial entitlements
and controls.

Confirm user lists, admin roles,
and approval chains; validate
initial access and segregation
of duties.

OLBB, Account Information
reporting, eStatements;
foundational security and
administration.

Accounts
operational; OLBB
access enabled;
baseline
configuration
complete.

Build: Connectivity
Setup (File Transfer)
June 16–
July 3,
2026
Implement communications testing
and establish file transfer channel(s)
for ACH files, reporting, and Positive
Pay issue files (FTF and any agreed
automated secure transfer).

Provide network/IT support for
agreed connectivity; confirm
endpoints and internal file
handling process; identify
backup personnel.

File Transfer Facility (FTF)
and secure file transfer
options to support Tyler
INCODE ACH files and
return/report files.

Connectivity
validated; file
exchange path ready
for testing.

Test: Format and
End-to-End Processing
June 23–
July 10,
2026
(overlaps
build)
Run format testing and mapping
validation; support City test
transmissions; validate confirmations,
acknowledgments, and return/report
files; resolve exceptions and retest.

Generate test files from Tyler
INCODE (or test harness);
transmit test ACH/Positive Pay
files; validate outputs; approve
corrections; document sign-off
results.

ACH origination (Tyler
INCODE Nacha); Positive
Pay and Payee Positive Pay
file workflow; account
reporting and
reconciliation file outputs.

Successful file testing
sign-off; readiness to
proceed to training
and cutover.

Train: Role-Based
Training and
Onboarding Care
July 13–
July 17,
2026
Deliver onboarding care session for
OLBB login and navigation; conduct
role-based training for ACH, Positive
Pay decisioning, reporting, and
approvals; provide job aids.

Attend training by role;
complete internal procedure
updates (who approves, daily
exception review, file
submission timing); confirm
go-live staffing plan.

OLBB operations; ACH
submission and controls;
Positive Pay exception
review; reporting and
reconciliation workflows.

Training completion;
Go/No-Go readiness
checkpoint.

Launch: Conversion
and Go-Live
July 20,
2026
Execute cutover plan; enable
production processing; confirm
first-day processing and reporting;
Execute City cutover checklist;
run first production files;
validate posting, reporting, and
exception workflows; confirm
ACH production via Tyler
INCODE; Positive
Pay/Payee Positive Pay;
Go-Live (target date
supporting
“transition by July
2026”).

88 PROPOSAL FOR CITY OF LOS ALAMITOS
Phase
Target
Dates
(Specific)
BMO Responsibilities City Responsibilities Los Alamitos Products / Scope
Key Deliverables /
Milestones
provide heightened support during
initial production.
internal communications and
escalation.

OLBB reporting;
reconciliation services.

Monitor and Stabilize
(post-go-live)
July 20–
August 19,
2026
PM remains primary contact for
approximately 30 days
post-implementation; monitor issues
to closure; validate production
stability and controls; coordinate final
handoff.

Report issues promptly;
participate in stabilization
check-ins; validate first billing
cycle and reporting outputs;
confirm steady-state owners.

All implemented services
30-day monitoring
complete; issues
closed and
documented.

Transition to Ongoing
Support
August 20,
2026
Transition from PM to ongoing Client
Services support model; confirm
escalation paths and periodic service
review cadence.

Confirm ongoing contacts and
internal ownership; retain
updated procedures and
training artifacts.

Ongoing servicing model Formal transition to
ongoing support.

Table 13. Sample Implementation Approach and Conversion Plan

89 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES Training
BMO will provide comprehensive training to ensure City staff are fully prepared and confident in using all banking systems and services. Training begins during implementation and continues throughout the relationship at no additional cost. We can also provide annual training or refresher sessions upon request.

Training and Consulting Overview
BMO Treasury & Payment Solutions provide a dedicated Training and Consulting team composed of experienced professional trainers and solutions consultants. Each member of the team brings extensive corporate training expertise and deep knowledge of OLBB. As subject matter experts, they ensure that all participants receive clear, relevant, and actionable guidance to optimize their use of OLBB. In addition to scheduled group webinars, the team offers specialized consulting services for clients requiring support with complex solution design.

Training Delivery Approach
As part of the implementation process, BMO provides complimentary training to your designated staff to ensure a smooth and efficient transition to our services. Training sessions are coordinated in alignment with your go-live schedule and are delivered in advance of production use. Instruction is organized by user role, which allows individuals with similar responsibilities and permissions to learn together. This approach enables instructors to tailor content effectively and creates a more focused environment for questions and discussion. To accommodate a variety of learning preferences, BMO offers multiple training formats and support tools.

Upon gaining access to OLBB, your users will have all training resources available in a centralized location, providing a streamlined and convenient learning experience.

Ongoing Learning
BMO provides an extensive suite of training resources to support both initial onboarding and ongoing learning, including
• Live Training: Expert led sessions covering OLBB functionality, payments, reporting, and administration.
• Video Tutorials: On demand demonstrations available around the clock • Quick Start Guides: Step-by-step instructions for essential treasury tasks • Companion Guides: Materials that reinforce live training content • Interactive Tools: Built in OLBB walkthroughs to guide staff through core processes • Help Center: A searchable repository of how‑to videos, FAQs, and detailed instructions Following go-live, BMO conducts a post-implementation monitoring period to confirm service performance, resolve any outstanding issues, and ensure billing and reporting accuracy. Once stabilization is complete, responsibility transitions seamlessly to the ongoing service and support team, with continued oversight through regular service reviews.

90 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES K. NEW SERVICES AND IDEAS
a. Please explain how the bank plans to keep its product line competitive.

Describe the approach the bank is taking in developing new services, what new services and features the bank plans to offer, and the estimated time frame.

Product Development and Innovation Roadmap
BMO maintains a competitive product line through sustained, enterprise-funded investment in its core banking, treasury, and payment platforms, as reflected in audited shareholder and investor disclosures.

The bank’s product strategy is centered on continuous enhancement of platforms already used by public-sector clients, rather than disruptive system replacements.

Near-term enhancements focus on strengthening the capabilities the City will rely on day-to-day, including digital treasury workflows, reporting and data visibility, fraud prevention controls, and performance and resiliency improvements within OLBB and related treasury services. These enhancements are delivered through regular upgrade cycles, allowing improvements to be introduced incrementally without disrupting operations or requiring system conversions or retraining.

Future-state enhancements are directed toward scalable automation and data-driven capabilities, including expanded integration options, advanced reporting and analytics, and responsible use of data and artificial intelligence to improve monitoring, controls, and operational efficiency. Product decisions are governed at the executive level, with dedicated leadership overseeing data, analytics, and AI to ensure innovation remains controlled, transparent, and examiner-ready.

This phased, continuous-improvement approach ensures the City’s services remain current, secure, and reliable throughout the contract term, while preserving continuity of operations and safeguarding public funds.
b. Describe any services, technological enhancements, or otherwise, that the City should consider for improving operational or cash management processes.

New Services and Enhancements
An important part of BMO’s role as the City’s financial services partner is to provide strategic guidance that supports the City’s long-term financial and operational objectives.

As the City continues to modernize its treasury and payment environment, certain Treasury & Payment Solutions may be appropriate for near-term implementation, while others are better suited as longer-term enhancements. The services outlined below are part of BMO’s U.S. Treasury & Payment Solutions platform and are presented to illustrate options that align with the City’s current operations, staffing model, and planned transition to Tyler INCODE. The services described below are presented as optional considerations and may be evaluated by the City when operationally appropriate and aligned with its internal priorities, staffing capacity, and technology readiness.

91 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES Service Enhancement Options
Service Fit for Los Alamitos Indicative Timing
Online Taxpayer
Payments
Directly supports the City’s receivables
operations and degree of automation while
improving constituent payment options.

When operationally
appropriate
Account Validation
Service
Strengthens financial controls and security
protection as ACH usage expands
When operationally
appropriate
ACH Positive Pay
Enhances fraud prevention controls and aligns
with the City’s emphasis on secure payment
processing
When operationally
appropriate
Comprehensive
Payables
Supports long-term automation of accounts
payable workflows once ERP stabilization is
complete
After ERP stabilization
Safekeeping /
Custody Services
Safeguards public funds and strengthens audit
readiness through secure custody, settlement,
and reporting
Near‑term or ongoing,
at the City’s discretion
Card and Virtual
Payment Solutions
Improves payment efficiency and control for
eligible transactions while maintaining audit and
approval requirements
Near‑term or ongoing,
at the City’s discretion
Direct Biller
Applicable where billing volumes and
operational requirements warrant automated
presentment and settlement
Future consideration
Virtual Account
Management
Addresses specific reconciliation and reporting
needs without expanding physical account
structures
Future consideration
API Developer Portal
Supports future integration and automation
initiatives aligned with the City’s evolving
technology strategy
Long‑term
consideration
Table 14. Service Enhancement Options

92 PROPOSAL FOR CITY OF LOS ALAMITOS

QUALIFICATION

EXPERIENCE MANAGEMENT

RELATIONSHIP

BANKING

GENERAL CONTROL SERVICE LEVEL AGREEMENTS IMPLEMENTATION/ CONVERSION NEW SERVICES AND IDEAS CONTRACT/ REPORTS LEGAL PRIDING AND INCENTIVES Online Taxpayer Payments2F
1 Online Taxpayer Payments may be considered when operationally appropriate and aligned with the City’s internal readiness, payment volumes, and constituent service priorities.

Why:
• City already processes receivables and fees
• Clear desire to reduce in-person and paper payments
• Aligns with modernization and constituent convenience goals Key Benefits to the City
• Expands electronic payment options for taxes and fees • Reduces manual cash and check handling
• Improves timeliness of posting and reconciliation
• Supports audit and reporting through electronic records Bank Procedures
BMO supports online taxpayer payment solutions that enable government entities to accept electronic payments for taxes, fees, and other obligations through secure digital channels. The service supports electronic payment acceptance and provides settlement and reporting information that can be integrated into the City’s reconciliation processes. Payment data is delivered electronically to support posting, balancing, and audit review.

The solution is designed to support a transition away from in-person and paper-based payments by enabling electronic payment intake while maintaining visibility into payment status and settlement activity.

City Participation
If the City elects to implement Online Taxpayer Payments, the City would:
• Identify the types of taxes, fees, or obligations to be made available for electronic payment • Coordinate settlement account setup and posting rules • Define reporting and reconciliation requirements to align with existing financial workflows • Provide internal procedures for staff oversight and exception handling City staff primarily monitor activity, review settlement and reporting outputs, and reconcile receipts using the electronic data provided.

Safeguards, Passwords, and Security Controls
Online Taxpayer Payments operate within BMO’s Treasury & Payment Solutions environment and leverage the same security framework used for other electronic payment services. Security controls 1 This information isn’t intended to be tax or legal advice. BMO does not provide legal or tax advice to clients. You should review your circumstances with your independent legal and tax advisors. BMO business checking account required. Banking deposit and loan products and services are provided by BMO and are subject to bank and credit approval. BMO governing agreements contain the complete terms and conditions that apply to the products and services described above. All product and service features are subject to change at any time without notice.