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Report to Redevelopment Agency Board regarding Establishing RMED Deposit Account Page 2 of 2 the Agency to review and authorize expenses associated with the management of its Rancho Mediterrania properties and provide earlier accounting to the Agency following each month end and at year end. In addition, separation of financial activity should help to eliminate the possibility of the property management company incorrectly allocating expenses from the HOA trust account and the Agency trust account. Reconciliation of the existing Agency trust account and the transfer of funds into the account for which authorization is sought, can be completed by June 30, 2004. Elite will continue to collect rent and make rental deposits into the proposed deposit account, but will have no ability to make withdrawals from the account. Rental revenues received will be used for the operation of the Agency's properties including but not limited to payment of HOA dues, management fees, lot maintenance on Agency owned properties and other like expenses. Due to the reduced number of Agency owned properties, which is expected to continue to diminish, there will be nominal activity on the account. The Agency Redevelopment Manager and Assistant Finance Director will be the primary authorized signatories on the account, FINANCIAL IMPACT Funds for the management of the Agency's assets have been allocated in the Rancho Mediterrania Operating Fund 870. The Agency Board approves the annual budget for the Rancho Mediterrania Operating Fund as part of its Annual Report and budget adoption process each year ENVIRONMENTAL IMPACT None CONFLICT OF INTEREST — Gift Disclosure Requirements None CONSISTENCY WITH IMPLEMENTATION PLAN Section 4.0 of the Agency's Implementation Plan describes the Agency's housing activities and requirements to increase, improve and preserve the community's supply of low and moderate -income housing units. The Agency purchased Rancho Mediterrania in 1993 for the purposes of converting it to resident ownership for persons of low and moderate income, consistent with the Agency's Implementation Plan. RECOMMENDATION Approve Agency Resolution No. 833, establishing a Deposit Account with Bank of America for the purposes of paying Rancho Mediterrania Operating Account expenses directly by the Agency. Attachments: Agency Resolution 833 Report Prepared by: Judith Clarke, Project Manager II REVIEW TEALY City Attorney: Finance Director: M City Manager: Agency Special Counsel: RAS11areRDA\Meetings\2004 MeetingsNay 18, 2004\Staff Report Establishing Checking Acct for RMED Operations.doc