2010-12-15 (Report)ITEM ##H2
HOUSING AUTHORITY OF THE
CITY OF ENCINITAS
AGENDA REPORT
Meeting Date: December 15, 2010
TO: Chairperson and Housing Authority Board
VIA: Phil Cotton, Executive Director
Jennifer Smith, Treasurer
FROM: Patrick Murphy, Planning and Building Director
Ron Barefield, Housing Administrator
Nancy Sullivan, Accountant
SUBJECT: Approval of Wells Fargo Bank Corporate Account Holder Resolution and
Automatic Transfer Authorization for the Housing Authority of the City of
Encinitas monthly loan payment; and Adoption of Resolution No. 2010-01.
BACKGROUND: In 2004, the Housing Authority of the City of Encinitas (Housing Authority)
executed a business loan agreement for the purchase of 16 units at the Pacific Pines
condominium development located at South El Camino Real. This $1,905,338.00 loan is
currently held by Wells Fargo Bank. Payments are made monthly and will continue to March
2034.
ANALYSIS: Wells Fargo Bank has notified the Housing Authority that a direct payment (ACH
debit) can be set-up to make the monthly payment for the Housing Authority owned units from the
City's Union Bank account. There is no charge for this service from Wells Fargo Bank. By
implementing this change, the monthly wire charge from Union Bank would be eliminated.
Housing Authority Board adoption of attached Resolution No. 2010-01 (Attachment A) will
authorize the Executive Director to take any actions and execute any documents to create the
corporate account and implement the ACH debit.
FISCAL AND STAFF IMPACTS: The elimination of the $8.50 monthly administrative fee and
less administrative actions necessary by staff.
RECOMMENDATION: Adopt Resolution No. 2010-01 approving Wells Fargo Bank
Authorization Agreement for Direct Payments (ACH debits) and Corporate Account Holder
Resolution.
ATTACHMENTS:
A - Resolution No. 2010-01 Wells Fargo Bank Authorization Agreement for Direct Payments
(ACH Debits) and Corporate Account Holder Resolution.
10
Attachment "A"
Resolution No. 2010-01
A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF ENCINITAS
TO APPROVE AND IMPLEMENT THE WELLS FARGO BANK AUTHORIZATION
AGREEMENT FOR DIRECT PAYMENTS
WHEREAS, the Housing Authority of the City of Encinitas (Housing Authority) executed a
$1,905,338.00 business loan agreement with Wells Fargo Bank for the purchase of 16 units at the
Pacific Pines condominium development located at South El Camino Real in 2004.
WHEREAS, Wells Fargo Bank can set up a direct payment (ACH debit) to make the monthly
payment for the Housing Authority owned units from the City's commercial bank account.
WHEREAS, NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of
the Housing Authority, as follows:
1. That the above recitations are true and correct;
2. That the Housing Authority approves the Wells Fargo Bank Authorization Agreement
for Direct Payments (ACH debits) and Corporate Account Resolution: and,
3. That the Housing Authority does hereby authorize the Executive Director to take any
actions and execute any documents to create the corporate account and implement the
automatic transfer authorization for the ACH debit.
PASSED, APPROVED AND ADOPTED by the Board of Commissioners of the Housing
Authority this December 15, 2010.
Chairperson
ATTEST:
Deborah Cervone, Secretary
CERTIFICATION
I, Deborah Cervone, Secretary of the Board do hereby certify that the forgoing Resolution was
adopted by the Board of Commissioners of the Housing Authority at the December 15, 2010
meeting by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal this
15ht day of December, 2010.
(SEAL)
Deborah Cervone, Secretary
11