HomeMy WebLinkAbout5 Prop 55 Loan Agenda Item #
TRUCKEE N
NER
PF F Public
Utility
District u
Memorandum
To: Board of Directors
From: Mary Chapman, Administrative Services Manager
Date: January 20, 2004
SUBJECT: Authorizing the fiscal agent for the District's Safe Drinking Water Loan Contract
E53311 (Prop 55 Loan) with the State of California, Department of Water Resources to move
the TDPUD Prop 55 Principal and Interest checking account to US Bank
1. WHY THIS ITEM IS BEFORE THE BOARD
We need to move our Prop 55 Principal and Interest checking account from Bank of the West to
US Bank. Only the Board can authorize staff to open a new bank account.
2. HISTORY
In September of 2001, the District moved its general fund and payroll accounts from Bank of the
West to US Bank. We did not move the Prop 55 account because there was such little activity in
the account and we had a bunch of checks.
It is a requirement of our Prop 55 loan that we have this separate account. Twice a year, the
District makes principal and interest payments on the loan. When those checks are issued from
the District's general fund, they are deposited in the TDPUD Prop 55 Principal and Interest
checking account. As fiscal agent, I issue two checks each year from this account to the
Department of Water Resources to make the principal and interest payments.
3. NEW INFORMATION
Since we moved our accounts from Bank of the West to US Bank we have gone through a
several periods where Bank of the West has charged us a monthly service charge on the
account. When this would happen, I would call them and explain the circumstances and ask if
they would reverse the charges and they would. This last time I called, they said they could no
longer reverse the charges because we no longer had a banking relationship with them. I have
spoken to the manager at US Bank and he said they would not charge us a service charge on
this account.
4. RECOMMENDATION
I recommend that the Board adopt the attached resolution authorizing the administrative services
manager acting as fiscal agent to close the Prop 55 Principal and Interest Account checking
account at Bank of the West and open the same account at US Bank.
RESOLUTION NO. 04;
OF THE
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
AUTHORIZA TING THE FISCAL AGENT FOR THE DISTRICTS SAFE DRINKING
WATER CONTRACT E53311 (PROP 55 LOAN) WITH THE STATE OF
CALIFORNIA DEPARTMENT OF WATER RESOURCES TO MOVE THE TDPUD
PROP 55 PRINCIPAL AND INTEREST CHECKING ACCOUNT TO US BANK
WHEREAS, in September of 2001, the District moved its general fund and payroll checking
accounts to US Bank, and
WHEREAS, the District left its TDPUD Prop 55 Principal and Interest Account at Bank of the
West because of the limited amount of activity on the account, and
WHEREAS, the TDPUD Prop 55 Principal and Interest Account is a checking account and is
used solely for the purpose of receiving principal and interest payments from the District's
general fund and for sending principal and interest payments to the Department of Water
Resources two times a year for the repayment of the District's Safe Drinking Water Loan
Contract E53311, and
WHEREAS, the District's administrative services manager was appointed as the fiscal agent for
performing Prop 55 loan administration including processing the semi-annual principal and
interest loan payments, and
WHEREAS, the District is now being charged a monthly service charge on the TDPUD Prop 55
Principal and Interest Account held at Bank of the West; and
WHEREAS, US Bank will waive the monthly service charge to maintain the Prop 55 Principal
and Interest Account so long as the District maintains its general fund checking account with US
Bank.
NOW, THEREFORE, BE IT RESOLVED that the administrative services manager as fiscal
agent is authorized to open a new TDPUD Prop 55 Principal and Interest Account checking
account at US Bank for the purpose of receiving funds and disbursing funds relating to the
repayment of the Prop 55 loan, and
BE IT FURTHER RESOLVED that the administrative services manager as fiscal agent is hereby
authorized to sign on the account, and
BE IT FURTHER RESOLVED that either an electronic signature from the District's
computerized accounting system or a manual signature by the administrative services manager
is acceptable for US Bank to honor payment of a check, and
BE IT FURTHER RESOLVED that the administrative services manager as fiscal agent is
authorized to enter into other electronic banking services offered by the bank such as ACH
transfers, wire transfers, book transfers, stop payments, account reconciliation and other such
services in order to conduct the District's Prop 55 loan administration business.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the
District on the 4th day of February, 2004 by the following roll call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By:
James A. Maass, President, Board of Directors
ATTEST:
Barbara Cahill, Deputy District Clerk