HomeMy WebLinkAboutEscheatment of $12,612.05 of Unclaimed Funds greater than $1 Council/Agency Meeting Held: zz
Deferred/Continued to:
*A pro le <' Signa re
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Council Meeting Date:
October 3, 2011 Department ID Number: FN 11-022
CITY OF HUNTINGTON REACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Lori Ann Farrell, Director of Finance
SUBJECT: Escheatment of$12,612.05 of Unclaimed Funds greater than $15.00
to the General Fund per Government Code 50050
Statement of Issue:
The City is currently holding $12,612.05 of unclaimed funds. Per Government Code Section
50050, unclaimed funds greater than $15.00, which remain unclaimed for over three years,
become the property of the City. In addition, funds 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$12,612.05 into the City's General Fund.
Recommended Action: Motion to:
Review and approve the transfer of $12,612.05 of unclaimed funds from the City's
Unclaimed Funds Liability Account to the City's Miscellaneous Revenue Account
#10000100.48550.10025201 in compliance with Government Code Section 50050.
Alternative Action(s):
Deny transfer of funds and direct staff accordingly.
HB -193- Item 10. - 1
REQUEST FOR COUNCIL ACTION
MEETING DATE: 10/3/2011 DEPARTMENT ID NUMBER: FN 11-022
Analysis:
The City has developed a procedure based on Government Code Section 50050
(Attachment 1) for the escheatment of funds (Attachment 2).
Under the procedure, a list (Attachment 4) is prepared by the Finance Department of
unclaimed funds greater than $15.00, which have remained unclaimed for over three years
as of August 2, 2011. Pursuant to Government Code Section 50050, the Director of Finance
published a notice on June 16, 2011, and June 22, 2011, in an adjudicated newspaper, the
Huntington Beach Independent, with all unclaimed funds greater than $15.00. There were no
unclaimed funds less than $15.00. The City released funds on all verified claims that were
timely filed. The remaining unclaimed funds total the amount of$12,612.05.
Environmental Status:
Not applicable
Strategic Plan Goal:
Maintain financial viability and our reserves.
Improve internal and external communication.
Attachment(s):
P
1. Copy of Government Code Sections 50050 to 50057
2. Escheatment of Funds Procedure
3. Newspaper Publication and Claim Form
4. Listing of Unclaimed Funds Greater Than $15.00
Item 10. - 2 HB -194-
ATTACHMENT # 1
Hu -195- Item 10. - 3
IL,vuk;zy kgk)v,jvkj-)V--)Vv-3/) vage i oh i
(1-110VERNMENT CODE
SECTION 50050-50057
50050. For purposes of this article, "local a1q(--,ncy,, includes all
districts. Except as otherwise provided by law, money, excluding
restitution to vict.i.ms, that is not. the property of a local agency
ghat remains unclaimed in its treasury or .in the official custody of
its officers f-or three years is the property of the local agency
aft-er notice if not claimed or if no verified comp-laint. is filed and
served- At any t.iirle 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 succe.ssive weeks in a newspaper of general.
cl-rculation published in tbe local agency. Money represent.ing
restitution collected on behalf' of victims shall be either, deposited
into the Restitution Fund or used by the local agency for purposes of
victim services after the expiration of the (.lucre:-year period.
However, with respect to moneys deposited with the county treasurer
pursuant. to sec.t.ion 1663 of the Probate Code, this three-year period
t,o claim money held by a local agency i,�� extended for an infant or
Por'son of unsound mind until. one year from the date his or her
di.,-.-5abj.)J.t.y ceases.
For purpo.,ief5 of 1-hi-s, section, "infant" and "pfersc-n of' unsound --nind"
have the sarae meaning as given to those terms as used J-11 "."ection
1.441. of the Code of Civil Procedure.
15005 1 . The notice shall state 1-ho amount oI- irioney, the fl.11)d i.rl
which it i-s he J.d, and that. it is proposed i.hat- (:Ii(- money will become
the property of the. local agency on a designated datl(-:r not less than
forty-five days nor inore than sixty days aEu--�r. Lho first pub-fication
of the notice.
,i 0 05 2. upon or. prior (:o publication, a party of interest r ay e
("li,13111 wit;h the t.reasurer which must includo the_; claimant's name,
address, amotiriL of claim, the grounds on which the claim .is founded,
ar)d any Other infOrillation that may be required by the, treasurer. 'Phe
c.*,,I.ailli shall be filed before tile datc> the unclaimed money becomes the
property of the, Tocal agency as provided under Sec-tior) 5005I and the
tr--easurer, shai,l accept or i-eject, that c1ciim. If the claim is
by the treasurer, t:lie party who submitted the claim inay file a
verifj.ed complaint soc,>kinq to recover all, or a desiqriat(--id part, of
tkie money in a court. of competent jurisdiction within tho county in
wliich the notice is published, and serves a copy of the complaint and
tl-ie summons issued thereon upon the treasurer. 'I'lie copy of the
complai.rit, and summons shall be served within 30 days of reCei.Vi.Tlg
rl(atice that the claim was rejected- The treasurer shal.1 withhol,d the
rcalease of the portion of unclaimed money for which a court action
Yrss been filed as provided in this section kiritil. a decision is
r(:aTldered by the court.
50052.5. (a) NoLwithsLaridJnq Seck-Jon 50052, the: treasurrr. IlLay
r C
.lease to the depositor of the unclai.mod money, their heir,
bcynefl.cj.ary, or duly appointod representative, unclainied moli(�.!y if
claimed prior to tho date the money taecornr s the property of the Jocal
a(loncy upon ,.;ubnd.Lt:i.Yiq proof satA..',factory to time tre'asurer, unless
IJ)e unclaj.mcd money is, deposited pursuant t(.,; Section '7663 of the
Probate Code.
(b) Notwith.-.-jt.ariding Section 50052r the treasuror may r(--A-ease
unclailued luorley cj(.>posited with the county pursuant:. to
1-it.l-n://Illfo.<;en.ca.i7ov/ciyl-blii/disnlaveodc'?se(.-tioti.-=t ov&grotin-�-50001-51000&-file--50050-.., 6/2.3/2010
Item 10. - 4 HB -196-
kgtj I-age Or ..5
Section 7663 of'. the Probate Code, to any adult blood relative of
ei.ther the decedent or th(..e decedent's predeceased spouse.
((.-) Notwiths-Landing Secti.011 50052, 1:110, tFCaSUK-Cr Miy r0leaSe
unclaimed money deposited with the county treasurer pursuant to
'7663 Of the Pr(A)ate Code to the parent who has legal and
j_-)hysi.cal custody of a minor who is a blood relative of eithex, the
decedent or the decedent's predeceased spouse without the need to
apl:)oint a legal. guardian for the minor as follows:
(1) if Lhe value Of the unclaimed money deposited with county
treasurer is five thousand dollars ($5,000) or less, the treasurer
iitzly release the money according to Section 3401 of. the Probate Code.
(2) Tf the value of the unclaimed money deposited with the county
treasuy.er is sixty thousand dollars ($60,000) or. less, and the money
is not released under paragraph (1) , the, uncl.aiwe_d 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
bC; Used only for the care, maintenance, and education of the minor,
and the parent sball be liable therefor to the minor tinder the
fiduciary laws Of.,. tliis 'Phe, money held in trust shall. be
rc-A..oased to the minor, when I ho mirior reaches the age of majority.
(d) The claim sliall be presented to the county treasui:er in
a f f id�, o f:ivit form and signed under penalty . perjury_ Notwithstanding
Section :1.31.01. of the Probate Code, the claimant., to be entitled to
the oi)tire i.-ischeated estate, needs only to establ.!,sh with documentary
proof the existence off a bl.00d relationship to either the decedent.
or- of the predeceased spouse, if any, and the docuja(,nLar.-y proof, if
r(-?gki:tFir. on its face" need not- be corLified- Notwithstanding Soction
1.3101 of the Probate Code, the claimant. Shell. riot. be required to
d(:eclare that no otli(,?r person an equcil or., superior claim to the
e.scheated estEIte..
The county
y treasurer may rely in good faith on the sworn
Statements Made iri the claim and shal.l. have no duty to inquive Into
the truth or, credibility of evidence. slibmitted.
Uri paying out the e.,,cheated estate, the county treasurer. shawl.
L e 1. b
li<-eId harmless to all . Payment shall act- as total. acquittance and
shall completely discharge the county treasurer. from any liability.
If. Lhe Coullk-Y re-Ject.s any claim mad(:e horeundcr, the,
c1aimant may takt- his or her grieWInCe to the Super.i.or. Court of.' the
cc)urity holding tho esc.heated estate.
Any claim paid hereunder shall. be paid without interest.
500.53. When any such mor;ey becomes the property of a local aq(-:!ncy
and is in a special fund, the legis.lative body may transter it to the
gcz=neral. fund.
!)0 0!i 4. Whenever any cil.y or county or city and county renders
cc)],istruction 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
cx)rlstruc.tion sllall be sufficient to rej,itiburse the governmental body
pc,irformi.nq such services for the ful.l. cost thereof including labor,
1(u:lLerial, equipment, t.osts or rentals and a reasonable allowance for
Overhead. In computing overhead, without: limitat.i.on on other. factors
p-r o, - ) erly includable, there sh-.A.T be al located to the overhead cost
its3 proportionat<e share Of 1,11)01 Mid 8dMinisLrative costs.
`.)0 05 5. Any otlresr. provision of, this article notwithst-,andj rig, arty
irldi.vidlial. items, of les Lhan f:ifteeli dollars ($1.5), Or any amount iA'
the deposit.orls name is unknown, whi.ch iortiain unclaimed in the
L.-rua.._:Llry or in the official custody of an Officer of a local agency
f. the per."I.Od Of Ol'le YOi.11. OL 111.)Orl an 01-dt:I_ Of the court may bee
t x.an,,A.exred to the general fund by the legislative body without. the
h1jn-//1T1fh q(-.n (,.,I 6011N)1
HB -197- Item 10. - 5
�6v V. I) I-agc Ol 5
t.y of pu b I i c-a t ion of a noti.ce in a newvaper-
5 0056. 'I'lle of tht� provided uiider thi�,5
clrticle may be delogatled by the treasurer to t-jjc, jjq(ajjc:y,
or. department that maintai-ns the supporting r<cords of 1-he unclaimled
niciley based on the initial. reccJ.pt or deposit of Lhat: money or. both.
5005'7. For individual. items in the amount:.
of one thousand dollars
(,'1,000) or less, the legj.slaLive body of any county may, by
resolution, authorize the- county treasurer to perform on its belialf
any act required or authorized t.o be performed by it under. Sect.ions
50W)O, 50053, and 50055. The resolution shall, require that the county
auditor be informed of <-iach act performed undcz: the authori.zation.
http://info.sen.ca.gov/cgi-bin/displaycod0section= gov&group:=5000 1-51 000M.-Ile:=5 0050-... 6/23/2010
Item 10. - 6 HB -198-
ATTACHMENT #2
Escheat of Money
Gov't Section 50050-50056
I. Operating Expenses — Under Minimum ($15.00)
FinanceDepartment:
A) At the end of every fiscal year, identify all outstanding checks by check
number, date, name and Ibnd which are under $15.00 and which are, over
one (1) year old for all bank accounts. Provide list to CityTreasurer.
City"Treasurer Department:
B) City Treasurer to request Council action For approval of the transfer of
these funds to revenue in the general fund.
11. Operating Expenses —Equal or Greater Than Minimum ($15.00)
Finance:
A) After the response period has expired, identify these items as stale over
one (1) year and remove them from the bank reconciliation and transfer
them into another JD171 account entitled Unclaimed Warrants
11) At the end of every fiscal year, identify all remaining outstanding checks
over three (3) years old including check number, date, narric and fund and
move to Unclaimed Warrants account. Provide list to City Treasurer.
City Treasurer Department:
A) At the end of every fiscal year, identify all outstanding checks by check
number, date, name and fund which are equal or greater than $15.00 and
which are over I year old. Send a letter notifying payees of outstanding
check that has reached "Abandoned Property Status" allowing three (3)
weeks for response.
B) Upon receipt of a letter, a party of interest may file a claim with the City
'Treasury which must include 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 City Treasurer. (Copy of"Claim form" attached.)
The City Treasurer will provide this to the Finance Officer for review and
approval. If approved, paperwork for Issuance of a new check will be
processed by accounting.
office of the City Treasurer
policies\escheat.doc 05/08/2008
Item 10. - 8 HB -200-
C) City Treasurer will provide list to City Clerk to publish unclainied moneys
in a newspaper notice. The notice is to be published once a week for two
successive weeks in a newspaper of general circulation published in the
City. 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
City on a designated date not less than forty-live (45) days nor more than
sixty (60) days after the first publication of the notice.
D) Upon publication, a party of interest may' file a claim with the City
"1 reasurer which must include 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 City Treasurer. (Copy of"Claim Form" attached.)
The City Treasurer will provide this to the Finance Officer for review and
approval. If approved, paperwork for issuance of a new check will be
processed by accounting.
L) Alter the second publication in a newspaper, the City Treasurer will
prepare an RCA and request Council take action. to 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 vict.hn , 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 perio(1.
HL Bond Funds— Under Mininruira $15.00)
Finance Department:
A) At the end of every fiscal year, identify all outstanding; checks by check
number, date, name and fund which are under $15.00 and which are over I
year. Provide list to City 'Treasurer.
City 'Treasurer Department:
B) City Treasurer to request Council action for approval of the transfer of
these fiends to revenue in the general fund.
IV. Bond Funds--Equal or Greater Than Alinimum ($1.5.00�
Finance Department:
A) After the response period has expired, identify these items as stale over
one (1) year and remove from the bank reconciliation and move into .)DE
E
account Unclaimed Warrants
01-fice of*the City Treasurcr
policiesleschea(Am 05/08/2008
xB -201- Item 10. - 9
13) At the end of every fiscal year, identify all remaining; outstanding; checks
over three (3) years old including check number, date, name and hand and
move to Unclairiied Warrants account. Provide list to City Treasurer.
City Treasurer Department:
A). At the end of every fiscal year, identify all outstanding checks by check
number, date, name and fund 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 response.
1.3) Upon receipt of a letter, a party on interest may file a clairn with the City
"Treasurer which must include claimant's name, address, arnount of claim,
the grounds on which the claim is founded and any other information that
may be required by the City "Treasurer. (Copy of"Claim Forrn" attached.)
The city Treasurer will provide this to the finance Officer for review and
approval. it' approved, paperwork for issuance of a new check will be
processed by accounting.
C) City "treasurer will provide list to City Clerk to publish unclaimed moneys
in a newspaper notice. The notice is to be published once a week for two
successive weeks in a newspaper of general circulation published in the
City. 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
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;.
1�) Upon publication, a party of interest may file a claiin with the City
Treasury which must include claimant's name, address, amount of clairn,
the grounds on which the claim is founded and any other information. that
may be required by the City "Treasurer. (Copy of"Claim Form" attached.)
The City Treasurer will provide this to the Finance Officer for approval. If
a claim is approved, a new check will be issued and the amount removed
from the Unclaimed Warrants account.
G) .After the second publication in a newspaper, the City "Treasurer will prepare
an RCA and request Council take action to approve the transfer of all a.n3ounts
in the Unclaimed Warrants account over three (3) years old to the General
Fund.
011-ice of the City'i reasurer
poiicieslescheat.doc 05/08/2008
Item 10. - 10 HB -202-
Notice for Paper*
NOTICE IS HEREBY GIVEN THAT, the "Treasurer of the City of l luntington Beach,
County of Orange, State of California, declares that the following monetary sums have
been held by the City Treasurer and have remained unclaimed in the funds hereafter
indicated for a period of over three (3) years and will become the property of the City
of Huntington Beach on the l I"' day of November,2002,a date not less than forty-five
(45)days nor more than sixty(60)days after first publication on this Notice.
Any party of interest may, r�ior to the date designated herein above, file a claim with the
City Treasurer which includes the claimant's name, address, amount of claim, the
grounds on which the claim is founded and the date, name, amount, and heading shown in
this notice. The City Treasurer may accept or reject the claim. If rejected by the City
'Freasurer,the party submitting the claim may, within 30 days of receiving notice of
rejection, File and serve on the City 'Treasurer a verified complaint seeking to recover all,
or a designated part, of the: unclaimed funds.
Office of life City Treasm-cr
policiesleschcat.cloc; 05/08/2008
1413 -203- Item 10. - 11
ATTACHMENT #3
R CITY OF-HUNTINGTON BEACH
. FINANCE DEPARTMENT
LORI ANN FARRELL,FINANCE DIRECTOR
B:.It;1SNA:y. a
P.O. BOX 190
HUNTINGTON BEACH, CALIFORNIA 92648-0190
TELEPHONE: (714)536-5200 FAX: (714)374-1603
www.huntiiigtoubeaclica.gov/unclaiinedfunds
CLAIM FORM - UNCLAIMED FUNDS
Original Payee Name:
Claimant Name: Phone 4:
(if different)
Current Address:
DL#: SS#/TIN: Phone 9:
(Individuals: please attach a copy of your driver's license)
Address when check was written:
Reason for original check issue:
Fund (leave blank if not known): 11 General ❑ Trust
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 August 2, 2011
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 clairns, 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 sanie 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 rail back to: City of Huntington Beach
Attn: Finance Director - Claim
P.O. Box 190
Huntington Beach, CA 92648-0190
aty o .11unrlG iron l3each Use Dilly
r tiirinee ;i (�iv 1_ __i__essur,
Co�attrmed ttent oit�at�istaaadutg,�lieek list Naute/gate93ec? rf 0/S.at hBiik
lar�ut 8cj 1'r�Gessed claret T*7ame/l���e ; �Vasil ettcek at ba��k
ReplaeeitteutClieel Ckz ck# �lecit 1�nte _ �l�,u#hor�ze reissue of click
xB -2os- Item 10. - 13
NOTICE IS HEREBY GIVEN 'I-HAT, the finance Director of the City of Huntington Beach,
County of Orange, State of California, declares that the following monetary sums have been held
by the Finance Director and have remained unclaimed in the funds hereafter indicated for a
period of over three (3) years and will become the property of the City of Huntington Beach
on the 2nd day of August, 2011, a date not less than forty-hive (45) days nor more than sixty
(60) days after first publication of this Notice.
Any party of interest may, pjigr to the date designated herein above, bile a claim with the Finance
Director which includes the claimant's name, address, amount of claim, the grounds on which
the claim is founded and the date, name, amount, and heading shown in this notice. The finance
Director may accept or reject the claim. if rejected by the Finance Director, the party submitting
the claim may, within 30 days of receiving notice of rejection, file and serve on the Finance
Director a verified complaint seeking to recover all, or a designated part, of the unclaimed funds.
Claim forms are available at www.huntingtonbeachea.gov/tJnclaimedFunds.
Item 10. - 14 HB -206-
ATTACHMENT #4 _
SUMMARY OF FUNDS OVER$15 TO BE ESCHEATED
Date Amount Check#
General Checking Account
10/6/2006 1,481.50 696822
10/20/2006 35.00 697346
12/8/2006 30.00 699201
12/15/2006 32.00 699379
12/15/2006 51.98 699411
12/15/2006 135.75 699572
1/5/2007 56.67 700208
1/5/2007 78.20 700265
1/5/2007 227.59 700277
1/5/2007 118.75 700347
1/26/2007 18.50 701005
1/26/2007 35.99 701071
3/2/2007 44.21 702584
3/16/2007 300.00 703116
3/30/2007 40.00 703649
3/30/2007 98.34 703675
4/6/2007 150.00 703939
5/4/2007 90.83 705199
5/4/2007 214.21 705421
5/4/2007 381.22 705450
5/4/2007 276.00 705626
5/11/2007 811.89 705950
5/18/2007 75.00 706127
5/18/2007 75.00 706250
6/8/2007 40.00 707088
6/8/2007 60.10 707306
6/15/2007 100.00 707619
6/29/2007 90.83 708019
6/29/2007 43.61 708036
7/27/2007 90.83 709200
7/27/2007 288.75 709256
8/10/2007 160.09 709815
8/10/2007 902.00 710062
8/10/2007 55.00 710108
8/31/2007 23.53 710872
8/31/2007 17.69 710882
8/31/2007 24.51 710888
8/31/2007 15.67 710995
8/31/2007 360.13 710999
8/31/2007 22.86 711033
8/31/2007 23.47 711034
8/31/2007 23.00 711113
8/31/2007 16.40 711212
9/7/2007 103.26 711328
9/14/2007 45.00 711733
9/14/2007 22.50 711772
9/14/2007 18.00 711949
9/14/2007 45.00 711953
9/21/2007 39.32 712208
9/21/2007 73.69 712217
9/21/2007 33.32 712227
9/21/2007 86.29 712228
9/21/2007 29.99 712288
9/21/2007 48.18 712292
Q/91/2007 53.39 712296
Item 10. - 16 HB -208-
9/21/2007 57.48 712311
9/21/2007 30.40 712314
9/21/2007 41.73 712323
9/21/2007 134.53 712364
9/21/2007 67.03 712367
9/21/2007 36.48 712387
9/21/2007 29.85 712451
9/21/2007 50.12 712496
9/21/2007 50.67 712547
9/28/2007 26.50 712727
10/10/2006 216.69 50424
4/24/2007 25.00 52991
9/4/2007 47.66 54798
9/4/2007 91.59 54801
10/13/2006 125.37 596923
10/27/2006 17.10 597147
10/27/2006 87.52 597279
1/19/2007 21.88 598682
2/16/2007 1,239.44 598990
2/16/2007 50.74 599038
5/11/2007 140.68 600175
5/25/2007 72.61 600358
6/22/2007 30.69 600711
6/22/2007 15.81 600722
6/22/2007 15.34 600733
7/6/2007 74.10 600966
8/1/2007 2,000.00 10160
Total: 12,612.05
xs -209- Item 10. - 17