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HomeMy WebLinkAboutApprove the escheatment of Unclaimed Funds in the amount of Dept.ID FN 17-001 Page 1 of 2 Meeting Date: 1/17/2017 rm+- rT— CITY OF HUNTINGTON BEACH �s REQUEST FOR. CITY COUNCIL ACTION MEETING DATE: 1/17/2017 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A.Wilson, City Manager PREPARED BY: Lori Ann Farrell Harrison, Chief Financial Officer SUBJECT: Approve the escheatment of Unclaimed Funds in the amount of$5,722.48 per Government Code Sections 50050-50057 Statement of Issue: The City is currently holding $5,722.48 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 $5,722.48 into the City's General Fund. The FY 2016/17 Adopted Budget for the General Fund assumes the City will receive a total of $140,000.00 in miscellaneous revenue. The escheated funds of $5,722.48 in addition to other miscellaneous revenue sources will assist the General Fund in reaching the budgeted estimate. Recommended Action: Approve the transfer of$5,722.48 of unclaimed funds from the City's Unclaimed Funds Liability Account to the City's Miscellaneous Revenue Account#10000100.48550.10035209 in compliance with the 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, 2015. Pursuant to Government Code Sections 50050-50057, the Chief Financial Officer published a notice with all unclaimed funds over three years old or greater than $15.00 (Attachment 3) on December 1, 2016 and December 8, 2016, 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$5,722.48 (Attachment 4). Environmental Status: Not Applicable. Item 4. - 1 H -22- Dept.ID FN 17-001 Page 2 of 2 Meeting Date: 1/17/2017 Strategic Plan Goal: 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 2016. HB _23)_ Item 4. - 2 ATTACHMENT # 1 GOVERNMENT CODE—TITLE 5. LOCAL AGENCIES [50001 —575501 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. 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. Item 4. - 3 AMHB -24-:NT 1 50052.5. (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. (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 liable 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. ATWH _2>_:NT 1 Item 4. - 4 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. 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. - 5 ATWHB _26_:NT 1 ATTACHMENT #2 Escheat of Money Gov't Section 50050-50057 Updated November 2016 I. Operating Expenses — Under Minimum ($15.00) Accounting Services: A) At the end of every fiscal year, identify all outstanding checks by check number, date, name which are under $15.00 and which are over one (1) year old for all bank accounts. Provide list to Chief Financial Officer. Cashiering & Collections Services Division: B) Chief Financial Officer 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, name which are equal or greater than $15.00 and which are over 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 Chief Financial Officer, 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 Chief Financial Officer. (Copy of "Claim form" attached.) The Cashiering & Collections Division will provide this to the Chief Financial Officer 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 Chief Financial Officer. 1 AMHB _27_:NT 2 Item 4. - 6 Cashiering & Collections Services Division A) Chief Financial Officer 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 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. B) 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 Chief Financial Officer. (Copy of "Claim Form" attached.) The Chief Financial Officer or his/her designee will review and approve. If approved, paperwork for issuance of a new check will be processed by Accounting Services. C) After the second publication in a newspaper, the Chief Financial Officer 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. D) 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. 2 Item 4. - 7 AM HB -28-:NT 2 ATTACHMENT #3 AFFIDAVIT OF PUBLICATION Proof of Publication STATE OF CALIFORNIA, PUBLIC UOVPS�,�;,MMVI ) 114PTiCE 15 h{EPt BY GISEN TIIAT th Chief Fnanrtnl Ctlflcer of£he t rry o(h untlnRt n; -CoUf2t�r Of Orange ) Bekh,Gaimir o1_K}ranga Slate of California,d-otar&Thai the fd1laiairlg rnoi ataxy,ame tii If been,he b ythe Gtiiaf Financ al Officer and have rernetn6d unda mta 1{ri`theltunds I #ntivat�Jol,a:poi'p,o&6f nv„ar three J3)yaarta and vftlf"6ocarne thii" nil p t§t,the 01tv of Heintington B ah pia t to-17th slay of Janetesy,20i aX sl100: I am a citizen of the United States and a resident 'PM,,a dale no te'ss than folly-rtve'j�5t days not,more€hen skly(6D1 rfa}s alter first,publ# cation i t this Notlap: of the County aforesaid; I am over thee e of Ants party ot!tntere-st me Prior to the date doatcjn lied i,eraln about f'��c1alm e ilh rhe`' g Ghlea Rnsn�risl Officer which includes the cfainA r n-aisle;oridre s name,'arn6 aarspurt of�lelrn,Ftrri; ar node on wtrle h➢the e(etni r�#ounx{ad and the datrt mi ind hea mq hnvn' eighteen years, and not a a to or interested-III n Iliia nottc Ttaa Chief Fnanoia#;tDH e r ma ao aPt or rejerf the 61-k'U e+W61ed b4 the -� }' party`I - ';G#fief Ftnanciai Offiaer;.thc 5z.�iy sGlrntt rp ft e c#sim may,4vrthrrr t0 d.y of r®c uia r=4y irn (ice otI retr'c8bn rife mid erve o the Chia Financial Officer a i 3ntiad eoinplamt seek na to the above entitled matter. 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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: i Name(Print): Title: Please mail back to: City of Huntington Beach Attn: Finance Department—Unclaimed Funds P.O. Box 190 Huntington Beach,CA 92648-0190 City of lluntington Beech Use Only Finange z ®Confirmed item on outstanding check list Name/Date: ®Check of O/S at bank ® Input&Processed claim NawiDate: 13 Void check at bank' d Replacement Check: Check# Check Date: El Authorize`:reissue of check Item 4. - 9 HB -30- ATTACHMENT #4 UNCLAIMED FUNDS LIST Check Date I Name Amount 9/26/2014 Nick Billow $ 11.68 5/30/2014 Thomas Cessario $ 13.89 5/30/2014 Julie Denworth $ 12.05 5/30/2014 Bethany keyes $ 10.83 5/9/2014 Joyce Kotrys $ 3.84 9/26/2014 Eric Meyers $ 11.13 5/30/2014 Kusumben Patel $ 12.51 4/11/2014 Vince Ransom $ 3.25 9/12/2014 Diane Starbuck $ 6.00 Total checks 1 year old and under$16.00 $ 85.18 3/30/2012 Iman Aal $ 34.40 8/31/2012 Barbara Ashbury $ 86.00 9/21/2012 Colleen Bailey $ 16.07 9/28/2012 Beach Cities Realty Exist $ 18.68 9/21/2012 Stephen Calderon $ 26.10 8/31/2012 Kimberly Callender $ 54.55 11/4/2011 Chander Inv Property $ 1,301.00 5/25/2012 Lindsay Cooper $ 40.46 8/31/2012 Mike Dearborn $ 70.78 2/3/2012 Sumi Dra $ 65.00 10/14/2011 Fabshow Inc $ 89.02 4/13/2012 First American Title $ 75.00 8/17/2012 Morgan Taylor Foster $ 30.00 9/28/2012 Sylvia Franklin $ 23.10 10/28/2011 Jerry Freedom $ 44.00 9/21/2012 Karyn Gallagher $ 18.15 10/28/2011 Carla Gentile $ 56.14 7/27/2012 Grandpoint Bank $ 46.71 9/21/2012 Joseph Gurzi $ 20.11 11/4/2011 Lorie Hamilton $ 48.00 12/2/2011 Samantha Haugh $ 189.00 9/14/2012 Ellen Haywood $ 34.83 9/21/2012 Heidi Holllstein $ 26.34 8/31/2012 Peter Hughes $ 49.96 9/14/2012 Huntington Beach State Beach Junior $ 150.00 8/24/2012 Renarda Kakowski $ 102.52 9/21/2012 Kimberly Karkkainen $ 16.24 9/28/2012 Delores Lacko $ 39.91 8/24/2012 Annette Lujan $ 108,96 7/27/2012 Kenny Ly $ 87.06 2/3/2012 Louis Maechler $ 159.92 8/24/2012 Fred McBurnett $ 119.31 12/2/2011 Daniel Morgan $ 361.99 7/27/2012 Mystery Inc $ 40.49 8/17/2012 Rick Neil $ 34.30 9/21/2012 Laura Nelson $ 15.44 9/7/2012 Dung Nguyen $ 57.00 9/28/2012 Michael Panuschka $ 75.00 9/21/2012 Howin Park $ 24.86 1/27/2012 Tai Pham $ 25.94 12/2/2011 James Poon $ 205.01 4/6/2012 Precision Electronic Fabrication $ 143.12 9/28/2012 Stephen Quattrocchi $ 17.48 9/7/2012 R P Oil Inc $ 58.11 8/31/2012 Scott Reierson $ 17.74 12/16/2011 Robert Renfrow $ 161.92 9/21/2012 John Rice $ 18.30 2/3/2012 Sandra Roberts $ 150.00 9/14/2012 Robert Rooks $ 36.80 9/21/2012 Jason Sarafin $ 26.23 8/24/2012 Ranto Silva $ 116.31 5/25/2012 Roberta Smith $ 150.32 2/10/2012 Sprague Trust $ 75.00 3/23/2012 Erick Ken Strong $ 82.00 12/9/2011 Dan Thompson $ 15.92 9/28/2012 Barbara Torpin $ 36.30 11/11/2011 Anthony Tran $ 57.00 9/7/2012 Ashley Watt $ 45.42 9/21/2012 Stacey Wilson $ 23.41 4/27/2012 John G.Wright $ 106.19 5/25/2012 John G.Wright $ 106.19 7/27/2012 John G.Wright $ 106.19 Total checks 3 years and older and over$16.00 $ 5,637.30 Total Escheat $ 5,7 KB l- Item 4. - 10