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HomeMy WebLinkAboutApprove the escheatment of $6,494 47 of Unclaimed Funds per Dept ID FN 15-016 Page 1 of 1 Meeting Date 101512015 -7 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 10/5/2015 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A Wilson, City Manager PREPARED BY: Lori Ann Farrell Harrison, Director of Finance SUBJECT: Approve the escheatment of $6,494 47 of Unclaimed Funds per Government Code Sections 50050-50057 Statement of Issue The City is currently holding $6,494 47 in unclaimed funds Per Government Code Sections 50050- 50057, unclaimed funds less than $15 00 which remain unclaimed for over one year become the property of the City In addition, unclaimed funds that are over $15 00 that are not the property of the City that remain unclaimed for over three years and have not been claimed after publication of a notice, become the property of the City Financial Impact This action will result in the deposit of$6,494 47 into the City's General Fund Recommended Action Review and approve the transfer of$6,494 47 of unclaimed funds from the City's Unclaimed Funds Liability Account to the City's Miscellaneous Revenue Account #10000100 48550 in compliance with Government Code Sections 50050-50057 Alternative Action(s) Do not approve the recommendation and direct staff accordingly Analysis The City has developed a procedure based on Government Code Sections 50050-50057 (Attachment 1) for the escheatment of funds Under the procedure (Attachment 2), a list is prepared by the Finance Department of unclaimed funds less than $15 00 which have remained unclaimed for over one year, as of September 30, 2014 Pursuant to Government Code Sections 50050-50057, the Director of Finance published a notice with all unclaimed funds over three years old or greater than $15 00 (Attachment 3) on July 27, 2015, and July 30, 2015, in an adjudicated newspaper, the Huntington Beach Wave Per Government Code Sections 50050-50057, the City released funds on all verified claims which were timely filed The remaining unclaimed funds total the amount of$6,494 47 (Attachment 4) Environmental Status Not Applicable Strategic Plan Goat Strengthen Economic and Financial Sustainability Attachment(s) 1 Government Code Sections 50050 to 50057 2 Escheatment of Funds Procedure 3 Newspaper Publication and Claim Form- 4 Unclaimed Funds List 2015 xB -53- Item 4. - I it ATTACHMENT # 1 � GOVERNMENT CODE -TITLE 5. LOCAL AGENCIES [50001 - 575501 ARTICLE 3. Financial Affairs [Section 50050 - 50057] 50050 For purposes of this article, "local agency" includes all districts Except as otherwise provided by law, money, excluding restitution to victims, that is not the property of a local agency that remains unclaimed in its treasury or in the official custody of its officers for three years is the property of the local agency after notice if not claimed or if no verified complaint is filed and served At any time after the expiration of the three-year period, the treasurer of the local agency may cause a notice to be published once a week for two successive weeks in a newspaper of general circulation published in the local agency At the expiration of the three- year period, money representing restitution collected on behalf of victims shall be deposited into the Restitution Fund or used by the local agency for purposes of victim services If a local agency elects to use the money for purposes of victim services, the local agency shall first document that it has made a reasonable effort to locate and notify the victim to whom the restitution is owed The local agency may utilize fees collected pursuant to subdivision (1) of Section 1203 1 or subdivision (f) of Section 2085 5 of the Penal Code to offset the reasonable cost of locating and notifying the victim to whom restitution is owed With respect to moneys deposited with the county treasurer pursuant to Section 7663 of the Probate Code, this three- year period to claim money held by a local agency is extended for an infant or person of unsound mind until one year from the date his or her disability ceases For purposes of this section, "infant" and "person of unsound mind" have the same meaning as given to those terms as used in Section 1441 of the Code of Civil Procedure (Amended by Stats 2013, Ch 457, Sec 1 Effective January 1, 2014) 50051. The notice shall state the amount of money, the fund in which it is held, and that it is proposed that the money will become the property of the local agency on a designated date not less than forty-five days nor more than sixty days after the first publication of the notice 50052. Upon or prior to publication, a party of interest may file a claim with the treasurer which must include the claimant's name, address, amount of claim, the grounds on which the claim is founded, and any other information that may be required by the treasurer The claim shall be filed before the date the unclaimed money becomes the property of the local agency as provided under Section 50051 and the treasurer shall accept or reject that claim If the claim is rejected by the treasurer, the party who submitted the claim may file a verified complaint seeking to recover all, or a designated part, of the money in a court of competent jurisdiction within the county in which the notice is published, and serves a copy of the complaint and the summons issued thereon upon the treasurer The copy of the complaint and summons shall be served within 30 days of receiving notice that the claim was rejected The treasurer shall withhold the release of the portion of unclaimed money for which a court action has been filed as provided in this section until a decision is rendered by the court 500525 (a) Notwithstanding Section 50052, the treasurer may release to the depositor of the unclaimed money, their heir, beneficiary, or duly appointed representative, unclaimed money if claimed prior to the date the money becomes the property of the local agency upon submitting proof satisfactory to the treasurer, unless the unclaimed money is deposited pursuant to Section 7663 of the Probate Code Item 4. - 2 ATWHB -54-:NT 1 (b) Notwithstanding Section 50052, the treasurer may release unclaimed money deposited with the county treasurer pursuant to Section 7663 of the Probate Code, to any adult blood relative of either the decedent or the decedent's predeceased spouse (c) Notwithstanding Section 50052, the treasurer may release unclaimed money deposited with the county treasurer pursuant to Section 7663 of the Probate Code to the parent who has legal and physical custody of a minor who is a blood relative of either the decedent or the decedent's predeceased spouse without the need to appoint a legal guardian for the minor as follows (1) If the value of the unclaimed money deposited with the county treasurer is five thousand dollars ($5,000) or less, the treasurer may release the money according to Section 3401 of the Probate Code (2) If the value of the unclaimed money deposited with the county treasurer is sixty thousand dollars ($60,000) or less, and the money is not released under paragraph (1), the unclaimed money may be released by the treasurer to the parent who shall, after payment of any costs incurred in making the claim, hold the money in trust, to be used only for the care, maintenance, and education of the minor, and the parent shall be Fable therefor to the minor under the fiduciary laws of this state The money held in trust shall be released to the minor when the minor reaches the age of majority (d) The claim shall be presented to the county treasurer in affidavit form and signed under penalty of perjury Notwithstanding Section 13101 of the Probate Code, the claimant, to be entitled to the entire escheated estate, needs only to establish with documentary proof the existence of a blood relationship to either the decedent or of the predeceased spouse, if any, and the documentary proof, if regular on its face, need not be certified Notwithstanding Section 13101 of the Probate Code, the claimant shall not be required to declare that no other person has an equal or superior claim to the escheated estate The county treasurer may rely in good faith on the sworn statements made in the claim and shall have no duty to inquire into the truth or credibility of evidence submitted In paying out the escheated estate, the county treasurer shall be held harmless to all Payment shall act as total acquittance and shall completely discharge the county treasurer from any liability If the county treasurer rejects any claim made hereunder, the claimant may take his or her grievance to the Superior Court of the county holding the escheated estate Any claim paid hereunder shall be paid without interest 50053. When any such money becomes the property of a local agency and is in a special fund, the legislative body may transfer it to the general fund 50054. Whenever any city or county or city and county renders construction services or constructs public works for any city, county, city and county or any other governmental agency below the level of the state government, the price charged for such services or construction shall be sufficient to reimburse the governmental body performing such services for the full cost thereof including labor, material, equipment costs or rentals and a reasonable allowance for overhead In computing overhead, without limitation on other factors properly includable, there shall be allocated to the overhead cost its proportionate share of indirect labor and administrative costs 50055. Any other provision of this article notwithstanding, any individual items of less than fifteen dollars ($15), or any amount if the depositor's name is unknown, which remain unclaimed in the treasury or in the official custody of an officer of a local agency for the period of one year or upon an order of the court may be transferred to the general fund by the legislative body without the necessity of publication of a notice in a newspaper ATUHB _55_:NT 1 Item 4. - 3 50056. The responsibilities of the treasurer as provided under this article may be delegated by the treasurer to the agency, district, or department that maintains the supporting records of the unclaimed money based on the initial receipt or deposit of that money or both 50057. For individual items in the amount of five thousand dollars ($5,000) or less, the legislative body of any county may, by resolution, authorize the county treasurer to perform on its behalf any act required or authorized to be performed by it under Sections 50050, 50053, and 50055 The resolution shall require that the county auditor be informed of each act performed under the authorization Item 4. - 4 A►MHB _56_:NT1 EAAfTTCHMENT #2 Escheat of Money Gov't Section 50050-50057 Updated December 2014 I. Operating Expenses and Bond Funds — Under Minimum ($15.00) Accounting Services A) At the end of every fiscal year, identify all outstanding checks by check number, date, and name which are under $15 00 and which are over one (1) year old for all bank accounts Provide list to the Director of Finance Cashiering & Collections Division B) Director of Finance or his/her designee to request Council action for approval of the transfer of these funds to revenue in the General Fund II. Operating Expenses and Bond Funds— Equal or Greater Than Minimum ($15.00) Accounting Services A At the end of every fiscal year, identify all outstanding checks by check number, date, and name which are equal to or greater than $15 00 and which are over one (1) year old Send a letter notifying payees of outstanding check that has reached "Abandoned Property Status" allowing three (3) weeks for a response B) Upon receipt of a letter, a party of interest may file a claim with the Director of Finance, which must include claimant's name, address, amount of claim, identification, the grounds on which the claim is founded, and any other information that may be required by the Director of Finance (Copy of "Claim form" attached ) The Cashiering & Collections Division will provide this to the Director of Finance or his/her designee for review and approval If approved, paperwork for issuance of a new check will be processed by Accounting Services C) After the response period has expired, identify these items as stale over one (1) year D) At the end of every fiscal year, identify all remaining outstanding checks over three (3) years old including check number, date, and name and move to Unclaimed Warrants account Provide list to the Director of Finance ATWHB _57_:NT 2 Item 4. - 5 Cashiering & Collections Division E) Director of Finance will direct his/her designee to provide the list of unclaimed moneys to be published in a newspaper notice The notice is to be published once a week for two successive weeks in a newspaper published in the County or the City, and circulated in the City The notice shall state the amount of money and payee name, and that it is proposed that the money will become the property of the City on a designated date not less than forty-five (45) days nor more than sixty (60) days after the first publication of the notice F) Upon publication, a party of interest may file a claim with the Finance Department which must include claimant's name, address, amount of claim, identification, the grounds on which the claim is founded and any other information that may be required by the Director of Finance (Copy of "Claim Form" attached ) The Director of Finance or his/her designee will review and approve If approved, paperwork for issuance of a new check will be processed by Accounting Services G) After the second publication in a newspaper, the Director of Finance or his/her designee will prepare a Request for Council Action and request Council approve the transfer of all amounts in the Unclaimed Warrants account over three (3) years old to the General Fund or if it is restitution collected on behalf of victims, it shall be either deposited into the Restitution Fund or used by the City for purposes of victim services after the expiration of the three- year period H) This procedure shall also be followed for Bond Funds which have been held in trust by the City and released Such outstanding checks are included in the population of checks described in this section Item 4. - 6 ATTIHB -ss-:NT 2 AiTAuo"", m" MLNT #3 AFFIDAVIT OF PUBLICATION Proof of Publication STATE OF CALIFORNIA, ) ss_ ;a County of Orange ) u I am a citizen of the United States and a resident of the County aforesaid, I am over the age of eighteen years,and not a party to or interested in x the above entitled matter I am the principal clerk of of the Huntington Beach Wave, a newspaper that has been adjudged to be a newspaper of ` r general circulation by the Superior Court of the County of Orange,State of California,on July 1, 1998,Case No A-185906 in and for the City of Huntington Beach, County of Orange, State of �s California,that the notice,of which the annexed is a true printed copy,has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates,to wit a�� v July 23,30,2015 -1 certify (or declare) under the penalty of perjury under the laws of the State of California s that the foregoing is true and correct" Executed at Santa Ana, Orange County, \\\J California,on July 30,2015 y�M�C� �•dome$�Y9 ``�a! ctiir Signature dluntington Beach Wave � § _ ® 625 N Grand Ave. °n L i cs3 >!Santa Ana,CA 92701 ! 0 (714)796-2209 �riY UJ G itP4it $ MOD MAN �^ OEM __ ...._.. Min A YAW* , ATT xB -59-uT 3 Item 4. - 7 CITY OF HUNTINGTON BEACH FINANCE DEPARTMENT P.O. BOX 190 HUNTINGTON BEACH,CALIFORNIA 92648-0190 "4 TELEPHONE: (714) 536-5200 FAX: (714)536-5934 www.huntingtonbeachca.gov/unclaimedfunds CLAIM FORM - UNCLAIMED FUNDS Original Payee Name: Claimant Name: Phone#: (if different) Current Address: DL#: SS#/TIN: Phone #: (Individuals: please attach a copy of your driver's license) Address when check was written: Reason for original check issue(if known): Original Check: Date: Amount: In order to process a replacement check and claim these funds, the City of Huntington Beach Finance Director must receive this form no later than September 6, 2015 In consideration thereof, it is agreed that the undersigned, the heirs, executors, successors or assigns of the undersigned,will indemnify and hold harmless the City of Huntington Beach, or assigns, from and against any and all claims, liability, loss, damage, expenses, counsel fees and costs arising through or by reason of any endorsement, presentation, negotiation, collection or any attempt at collection or negotiation of the Original Check or the Replacement Check by the undersigned, the employees, or agents of the undersigned In the event the Original check shall be found, the undersigned agrees to deliver to cause the same to be delivered to the City of Huntington Beach for cancellation and to reimburse the City of Huntington Beach for all expenses incurred by reason of the issuance of the Replacement Check Authorized Signature: Date: Name (Print): Title: Please mail back to City of Huntington Beach Attn Finance Director—Unclaimed Funds P O Box 190 Huntington Beach, CA 92648-0190 11City of Huntington Beach'Use only `f Finance ®Confirmed%em on outstanding checklist Name/Date � 6 kc fo/S at Sunk Input&Processed c1a�m'Name/(date �_; �� Void cheek at bank �Authorize reissue ofchcck z r� RPnlar�m�t�' cck (,'kieClS.� a �:IIeCICI�ate Item 4. - 8 "HB -60- ATTACHMENT #4 UNCLAIMED FUNDS LIST Check Date Name Amount 12/13/13 Chris Ha1ek $ 1442 12/27/13 Huntington Beach Car Wash $ 900 Total Checks 1 year old and under$15 00 $ 23421 09/16/11 2205 Alabama LLC $ 6842 04/22/11 A-1 Mail Stop $ 2298 04/22/11 Emily Andrus $ 2363 12/03/10 Adam Arambula $ 6100 10/22/10 Argonaut Holdings,Inc $ 18345 02/11/11 Paul Austin $ 8658 11/12/10 Mina Azizian $ 5372 09/16/11 Daniel Billiet $ 2800 09/16/11 Brisas Del Mar COA $ 5908 09/02/11 Kristen Camp $ 3208 10/01/10 Pam Canaday $ 4800 09/16/11 Canabis State Consulting,LLC $ 2221 02/18/11 Nirnve Cardenas $ 3576 03/18/11 Tyler Caston $ 2941 09/02/11 Suzanne Cologne $ 10687 07/29/11 Daniel Corpus $ 15000 01/07/11 Max CortiJo $ 4615 10/22/10 William Cray $ 7263 09/02/11 Steven Davis $ 2180 09/02/11 Vernal Day $ 2122 09/02/11 Amy Dobson $ 43 12 09/16/11 Lynda Engebretson $ 2567 07/22/11 Emmett Evans $ 6000 06/10/11 Sam Fali $ 17500 11/12/10 Dan Fennessey $ 4931 11/26/10 Anthony Fiarrow $ 35000 05/13/11 Finesta America Inc $ 17500 02/11/11 Mike Fischer $ 48 03 02/25/11 Maria Flores McRea $ 4400 05/06/11 Josh Florez $ 2047 02/18/11 Giant Gate Group $ 3738 02/11/11 Laren Gregory $ 4546 09/16/11 John Gustafson $ 38 10 11/12/10 Brande Guzak $ 5056 05/06/11 Chandra Hankison $ 20 13 09/02/11 Harbor Point $ 2256 05/06/11 Hargis&Associates $ 67933 07/22/11 HB Pacific Coast/Chevron $ 6305 09/02/11 Lucindo Hernandez $ 1727 03/25/11 Highroad Warehouse Inc $ 3131 12/30/10 Lois E Hightshoe $ 5131 09/16/11 Jon Hofner $ 44 19 01/15/10 Summer Hulsey $ 35 12 12/17/10 Huntington Beach Car Wash $ 12501 02/18/11 Huntington Beach Pacific $ 8632 01/07/11 Casee James $ 4074 10/22/10 Michael Jaramillo $ 6000 05/06/11 Fon Jiang $ 1949 02/18/11 Mansour Khatib $ 3873 01/07/11 James King $ 4686 09/16/11 Steven Kobzeff $ 2105 09/16/11 Kenneth Krause $ 39 13 03/25/11 Yun-Shan Lee $ 10000 02/11/11 Francis Ma $ 6441 HB _6 1- Item 4. - 9 UNCLAIMED FUNDS LIST 10/12/10 Macro-Pro $ 14067 07/22/11 Harvey Martin $ 6342 02/11/11 Fara Marz $ 8807 09/02/11 Fara Marz $ 3456 09/09/11 Trevor McCourt $ 1727 09/02/11 Robert McCowan $ 2243 11/12/10 Scott J Melton $ 5425 09/02/11 John Miller $ 1841 09/02/11 Chad Moninger $ 2104 09/16/11 Tarah Mosely $ 4605 07/01/11 Natascha Moss $ 15000 09/02/11 Milan Nechanicky $ 4672 05/06/11 Yolanda D Ngan $ 5114 09/02/11 Stanley Nguyen $ 16801 01/07/11 Michael Ogan $ 4274 09/02/11 Eren Ozturk $ 3063 10/01/10 Heather Panzella $ 7600 09/16/11 Thuy Vu dba Paradise Nails $ 5747 10/22/10 Elva Pena $ 7148 04/22/11 Alison Pham $ 2364 02/11/11 Vinsin Phan $ 4872 08/26/11 Conception Rankin $ 7749 04/22/11 Ian Revac $ 23 80 05/13/11 Terumi Saeki $ 7934 02/11/11 Marzieh Shanf $ 10757 11/12/10 Lorette Smith $ 5123 09/02/11 Geoff Souli $ 27 16 09/16/11 Jonathan Spiegel $ 28 16 02/11/11 Betty Swan $ 2965 09/02/11 Betty Swan $ 4535 03/18/11 NebalSwedan $ 2873 07/22/11 Barbara Swist $ 1600 09/02/11 Charity Thompson $ 3366 05/13/11 Shannon Todd $ 9353 03/25/11 Nga Tran $ 3075 09/02/11 Phu Tran $ 20 80 02/11/11 Philip Tripoli $ 2430 11/12/10 Peggy Troupe $ 4916 08/26/11 Carlyn Tucker $ 2114 09/02/11 Utica HOA $ 15 62 02/25/11 Wendy Wagner $ 4100 12/17/10 Valerie Ward $ 3368 10/22/10 Wells Fargo Bank $ 195 12 07/22/11 Ray Wersel $ 6229 09/16/11 Shawna Williams $ 1659 09/02/11 Marilyn Worley $ 1834 02/11/11 James Young $ 8677 Total Checks 3 years old and over$15 00 1 $ 6,471 05 Total Escheat $ 6,494 47 Item 4. - 10 xB -62-