HomeMy WebLinkAboutApprove the escheatment of Unclaimed Funds Per Government Co 7-0
City of Huntington Beach
File #: 18-293 MEETING DATE: 9/17/2018
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Gilbert Garcia, Chief Financial Officer
Subject:
Approve the escheatment of Unclaimed Funds Per Government Code Sections 50050-50057
Statement of Issue:
The City is currently holding $4,538.24 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$4,538.24 into the City's General Fund. The FY 2018/19
Adopted Budget for the General Fund assumes the City will receive a total of $150,000.00 in
miscellaneous revenue. The escheated funds of$4,538.24 in addition to other miscellaneous
revenue sources will assist the General Fund in reaching the budgeted estimate.
Recommended Action:
Review and approve the transfer of $4,538.24 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 June 30, 2018. Pursuant to Government Code Sections 50050-50057, the Chief
Financial Officer published a notice with all unclaimed funds over three years old and greater than
City of Huntington Beach Page 1 of 2 Printed on 9/12/2018
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File #: 18-293 MEETING DATE: 9/17/2018
$15.00 (Attachment 3) on July 19, 2018 and July 26, 2018, 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
$4,538.24 (Attachment 4).
Environmental Status:
Not Applicable.
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 FY 2017/18.
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GOVERNMENT CODE —TITLE 5. LOCAL AGENCIES [50001 — 57550]
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.
Poge60 ATTACHMENT 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.
Page 61 ATTACHMENT 1
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.
Page62 ATTACHMENT 1
Escheat of Money
Gov't Section 50050-50057
Updated May 2018
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
Page 63 ATTACHMENT 2
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
Faye 64 ATTACHMENT 2
PROOF OF PUBLICATION
Legal No. 0011147061
PUBLIC NOTICE
NOTICE IS NEARBY GIVEN THAT, the Chief Firioncial Officer of the City of Huntington
Deacn, CounTy of Vronge, 5TGTe of Callifornlo, clecloreS to The following moneTory sums
hove been held by the Chief Finonciol Officer and have remained unclaimed in the farads
hereafter indicated for a period of over three(3) years and wil I become the property of the
City of Huntington Beach on the 17th day of September, 2018 at 6:0013M, a date not lers
than forty-five (415) days nor more than sixty (60)days after first publication of this Notice.
Any t)nrty of intorpst mov, nrior fri the rintp ripsignolej:4 h;-rq'in nhoup, fih;, n claim with thi?
Chief Financial Officer which includes the claimant's name, address, amount of claim, the
grounds on Financial
the claim is founded and the date, name. amount, and heodinq shown in
this notice, The Chief Financial Officer may ocgpl or reiecl the claim. If reiecteo by the
Chief Financial Officer, the party submitting the c aim may. within 30 days of receiving a no-
tice of relection, tile and serve on the Chlet Financial Officer a verified complaint seeking to
recover all,or o designated Port,71 the unclaimed funds.Claim forms are oval loble at
vvvnv,h,untingtonbc�vlzhcci.goyj'Unc ai_n-tcdP7vnd*
Reference Dote Check No. Amount
YAM MARK I0f4PM2 7914199 E1's17100
LOPEZ ALICIA A 11/1/2013 792227 $30,M
F I RST APAE R ICAN TITLE COMPANY 11"13 792380 $75,00
CHEN SAMANTHA 11 A.V21)i 3 792544 s5n.m
BURMASTER JANELLE 11/22/2013 792936 S34.61
COLLINSTHELMA I I/27J2013 7929AI $15,1 A
MARTIN DALE GEORGE I 1/22/2DI 3 792961 SU,73
MC,CAR I HY CAITLIN I 112wZU13 /YMY 52 1.J'j
METZLER KEITH 11122(2013 792963 S37,14
REYESMILKE 11/72(20I3 792976 $88,71
DANCEWORKS DANCEWEAR, Ila?/2013 7?3177 512&.(j2
HANSON ER I K 1109/2G13 793182 $59.04
MELANCON DAVID 11/29/2013 793188 $58,47
WHITE CAT14PPINP 11/29121)13 791195 s1o9..10
CBM SERVICES INC I 1/12912I)l 3 7930115 S261,00
GARCIA ROSEMARY S I 2JI 312DI 3 793467 $21.79
12/2712gi 79390 3 9
T91 EYReEKE 1"7/2mi -1�
LOVE KRISTEN 12/27/2DI 3 793914 $24.91
MAGSANIDE PATRICIA 112j27120113 793916 S-41.00
SMITH TROY 12/27(2al 3 793935 :38�96
WRIGHT, JOHN G 112W/2013 793980 S106.19
VAN TWIST TYLER 12/27/2013 793939 S123.28
COSTCOWHOLE5ALE 1131=14 7945DO $21.70
LEE INJ IN 2/21/201A 795350 S157.49
NABHANIMO 2/21/2014 795358 S91.m
DRRnRAH MULHOLLAND TRUSTEE A/4/201 d 796U6 S169,27
CLANCY NOEL 4/25/201 A 796933 S25,00
CSULB 5/2/2014 797194 S3(17.00
TORGERSEN TOM 5/9/2014 797503 $120,39
CAPACI'lUR SUPPLY INC 5N/2014 IY7467 s4u.60
HARTSHEILAMARIE 5t23/2014 797796 $45.00
BECK ROBERT 5130V2014 798071 $16.52
FF:RRIS D A V I D 5/3(V2014 7960" S21.22
HELLQVIST KARL 5/30,12014 798098 $19,5A
KARAALPILKER 5/30/201A 798103 S25,81
ROXASALBGRTO V30/2014 798129 517,77
SHINJIYEN 5/30/201A 798133 S23,24
WRIGHT, JOHN G 6/27/2014 798985 S106,19
Published: The Huntington Beoch Wove July 19,26,2018 11147061
Page 65
UNCLAIMED FUNDS LIST
Check Date Payee Name Check Amount
7/8/2016 FRANK ANTONIO $ 5.09
7/8/2016 BANK OWNED WORLD $ 12.47
7/8/2016 KRISTEN KAHN $ 6.11
7/8/2016 HECTOR VILLELA $ 6.66
7/29/2016 MICHAEL EISNER $ 12.50
9/2/2016 ANDREW YEISER $ 6.00
9/2/2016 SHIRLEY YEUNG $ 5.65
11/4/2016 ERICH DELCAMP $ 14.02
11/4/2016 SHANNON LUZANSKY $ 12.26
12/16/2016 DONALD DUKESHIRE $ 10.37
12/16/2016 SHANNON LUZANSKY $ 12.26
12/16/2016 ROBIN NGUYEN $ 8.22
12/16/2016 PETERSON DONALD $ 6.00
1/6/2017 ACKERMAN L S $ 8.66
1/6/2017 BENTO BOX $ 6.44
1/20/2017 DANIEL WARD $ 12.29
3/17/2017 MONIQUE PEREZ $ 9.89
3/17/2017 NAOMI BUENAFLOR $ 6.06
3/17/2017 FARIE ALA ABU $ 14.69
3/17/2017 ROSEMARIE FEIG $ 6.01
3/17/2017 WILL FUKUI $ 5.89
3/17/2017 ROGER GEORGE $ 6.10
3/17/2017 JUSTIN KRAMER $ 5.40
3/17/2017 NICHOLAS KRAUS $ 6.67
3/17/2017 DAVID LOTZ $ 5.30
3/17/2017 LUCKY DONUTS $ 8.94
3/17/2017 SETH MAHLER $ 5.30
3/17/2017 TAMARA NGUYEN $ 6.39
3/17/2017 KRISTEN PARKER $ 5.09
3/17/2017 MIKE SAUCEDO $ 5.71
3/17/2017 TIM SCHAEFER $ 5.55
3/17/2017 NORMAN STANGER $ 5.06
3/17/2017 JAN WENSINK $ 5.58
3/17/2017 JAMES WRIGHT $ 6.60
3/24/2017 SIEGUMUND GROZINGER $ 10.00
4/14/2017 MARY LEIST $ 3.17
4/14/2017 NICHOLE MALONEY $ 10.16
4/21/2017 EVELYN GUTIERREZ $ 5.00
4/21/2017 MATTHEW MONACO $ 5.00
Total checks 1 years and older and under $15.00 $ 298.56
Page 66
Check Date Payee Name Check Amount
10/4/2013 YAM MARK $ 1,517.00
11/1/2013 LOPEZ ALICIA A $ 30.00
11/8/2013 FIRST AMERICAN TITLE COMPANY $ 75.00
11/15/2013 CHEN SAMANTHA $ 50.00
11/22/2013 BURMASTER JANELLE $ 34.61
11/22/2013 COLLINS THELMA $ 15.14
11/22/2013 MARTINDALE GEORGE $ 58.73
11/22/2013 MC CARTHY CAITLIN $ 21.73
11/22/2013 METZLER KEITH $ 37.14
11/22/2013 REYES MILKE $ 88.71
11/29/2013 DANCEWORKS DANCEWEAR $ 126.62
11/29/2013 HANSON ERIK $ 59.04
11/29/2013 MELANCON DAVID $ 58.47
11/29/2013 WHITE CATHERINE $ 198.40
11/29/2013 CBM SERVICES INC $ 261.00
12/13/2013 GARCIA ROSEMARY S $ 21.79
12/27/2013 BERNABE LOUIE $ 68.19
12/27/2013 JONES DARRELL $ 36.63
12/27/2013 LOVE KRISTEN $ 24.91
12/27/2013 MAGSANIDE PATRICIA $ 41.00
12/27/2013 SMITH TROY $ 38.96
12/27/2013 WRIGHT, JOHN G $ 106.19
12/27/2013 VAN TWIST TYLER $ 123.28
1/31/2014 COSTCO WHOLESALE $ 21.78
2/21/2014 LEE INJIN $ 157.49
2/21/2014 NABHANI MO $ 91.30
4/4/2014 DEBORAH MULHOLLAND TRUSTEE $ 108.27
4/25/2014 CLANCY NOEL $ 25.00
5/2/2014 CSULB $ 307.00
5/9/2014 TORGERSEN TOM $ 120.39
5/9/2014 CAPACITOR SUPPLY INC $ 40.60
5/23/2014 HART SHEILA MARIE $ 45.00
5/30/2014 BECK ROBERT $ 16.52
5/30/2014 FERRIS DAVID $ 21.22
5/30/2014 HELLQVIST KARL $ 19.54
5/30/2014 KARAALP ILKER $ 25.81
5/30/2014 ROXAS ALBERTO $ 17.77
5/30/2014 SHIN JIYEN $ 23.26
6/27/2014 WRIGHT, JOHN G $ 106.19
Total checks 3 years and older and over $15.00 $ 4,239.68
Total $ 4,538.24
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