FINANCIAL_SERVICESAPPROVED

City of South Gate Agenda Item No. 19 2026-05-26

South Gate Awards Long-Term Banking Services to BMO Bank

Projected annual service charges approximately $59,771; one-time $25,000 Loyalty Credit; six-month waiver of account analysis charges (estimated additional one-time savings of approximately $29,885)City of South GateBMO BANK N.A.May 26, 2026

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Description

The City of South Gate is entering into a Professional Services Agreement with BMO Bank, N.A. to serve as its primary depository and treasury management institution following RFP FIN-2026-01. The initial five-year contract, with up to five one-year renewals, includes fixed unit pricing, an earnings credit structure designed to offset approximately $59,771 in annual service charges, a 3.00% hybrid account interest rate, and a one-time $25,000 loyalty credit plus six months of waived account analysis fees. The agreement also incorporates extensive insurance, cybersecurity, data residency, and collateralization provisions to safeguard public funds.

Contract Details

Contract Amount

Projected annual service charges approximately $59,771; one-time $25,000 Loyalty Credit; six-month waiver of account analysis charges (estimated additional one-time savings of approximately $29,885)

Vendor

BMO BANK N.A.

Agency

City of South Gate, CA

Contract Type

FINANCIAL_SERVICES

Document Date

May 26, 2026

Contract Term

Initial five (5) years from May 26, 2026, with up to five (5) additional one-year extensions; total term not to exceed ten (10) years

Renewal Date

2031-05-26

Renewal Info

Initial five-year term from May 26, 2026, with up to five (5) additional one-year renewal options at the City’s sole discretion, for a maximum total term of ten years. Unit pricing is fixed during the initial term; pricing for renewal years may be changed only by mutual written agreement. Either party may terminate without cause on 30 days’ written notice.