HomeMy WebLinkAboutEscheatment of $9,124.46 Of Unclaimed Funds over $15.00 to t Council/Agency Meeting Held:
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Council Meeting Date: October 15, 2012 Department ID Number: FN 12-021
CITY OF HUNTINGTON BEACH
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$9,124.46 Of Unclaimed Funds over$15.00 to the
General Fund Per Government Code 50050-50057
Statement of Issue: The City is currently holding $9,124.46 of unclaimed funds. Per
Government Code Sections 50050-50057, unclaimed funds greater than $15.00, which
remain unclaimed for over one year 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$9,124.46 into the City's General
Fund.
Recommended Action: Motion to: Review and approve the transfer of $9,124.46 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 Sections 50050-50057.
Alternative Action(s): Deny transfer of funds and provide alternative direction
Analysis: The City has developed a procedure based on Government Code Sections
50050-50057 (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 one year as of
September 17, 2012. Pursuant to Government Code Sections 50050-50057, the Director of
Finance published a notice with all unclaimed funds greater than $15.00 on August 2, 2012,
and August 9, 2012, in an adjudicated newspaper, the Huntington Beach Independent.
There were no unclaimed funds less than $15.00. The City released funds on all verified
claims which were timely filed. The remaining unclaimed funds total the amount of
$9,124.46.
HB -53- Item 3. - I
REQUEST FOR COUNCIL ACTION
MEETING DATE: 10/15/2012 DEPARTMENT ID NUMBER: FN 12-021
Environmental Status: Not Applicable
Strategic Plan Goal: Improve long-term financial sustainability
Attachment(s):
1. I 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 3. - 2 HB -54-
ATTACHMENT # 1
iiu .. .. Item 1. - 3
CA Codes (gov:50050-50057) Page 1 of 3
GOVERNMENT CODE
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. Money representing
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 three-year period.
However, 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.
50052.5. (a) Notwithstanding Section 50052, the treasurer may
release to the depositor of the unclaimed money, their heir,
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CA Codes (gov:50050-50057) Page 2 of 3
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.
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
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3. - 5
Item
CA Codes (gov:50050-50057) Page 3 of 3
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.
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i
xB -59- Item 3. - 7
ATTACHMENT #2
Escheat of Money
Gov't Section 50050-50056
I. Operating Expenses—Under Minimum ($15.00)
Accounting 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
one (1) year old for all bank accounts. Provide list to City Treasurer.
City Treasurer Department:
B) City Treasurer to request Council action for approval of the transfer of
these funds to revenue in the general fund.
II. Operating Expenses—Equal or Greater Than Minimum($15.00)
Accounting 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.
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 Director of Administrative
Services for review and approval. If approved, paperwork for issuance of
a new check will be processed by accounting.
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, name and fund and
move to Unclaimed Warrants account. Provide list to City Treasurer.
City Treasurer Department:
E) 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
HB -61- Item 3. - 9
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.
F) Upon publication, a party of interest may file a claim with the City
Treasurer 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 Director of Administrative
Services for review and approval. If approved, paperwork for issuance of
a new check will be processed by accounting.
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 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.
III. Bond Funds—Under Minimum ($15.00)
Accounting 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 1
year. Provide list to City Treasurer.
City Treasurer Department:
B) City Treasurer to request Council action for approval of the transfer of
these funds to revenue in the general fund.
IV. Bond Funds—Equal or Greater Than Minimum ($15.00)
Accounting Department:
B) 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.
B) Upon receipt of a letter, a party on interest may file a claim with the City
Treasurer which must include claimant's name, address, amount of claim,
Item 3. - 10 HB -62-
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 Director of Administrative
Services for review and approval. If approved, paperwork for issuance of
a new check will be processed by accounting.
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, name and fund and
move to Unclaimed Warrants account. Provide list to City Treasurer.
City Treasurer Department:
E) 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.
F) Upon publication, 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 Director of Administrative
Services 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 amounts
in the Unclaimed Warrants account over three (3) years old to the General
Fund.
xB -63- Item 3. - It
ATTAC H M E N T #3
Notice for Newspaper:
NOTICE IS HEREBY GIVEN THAT, 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 171h day of September, 2012, a date not less than
forty-five (45) days nor more than sixty(60) days after first publication of this Notice.
Any party of interest may, prior to the date designated herein above, file 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.huntinQtonbeachca.gov/UnclaimedFunds.
HB -65- Item 3. - 13
ATTACHMENT #4
Item 3. - 16 Hy .66.
City of Huntington Beach
Check Date Check Amount Payee Name
3/7/2008 25.00 ACTION GAS&WELDING
11/16/2007 40.00 AISH KATHERINE
10/12/200.7 50.00 AYSO REGION 55
4/4/2008 18.04 BALLARD DANIEL
5/2/2008 17.74 BARRY LAURA
3/28/2008 42.29 BIRKHOLM VIRGINIA
6/6/2008 33.97 BOUDREAU SCOTT-1372743
11/28/2008 15.00 BRADLEY LESLIE
2/13/2009 103.61 BROWNLEE,DIANE T
5/23/2008 1,344.00 CORVEL CORPORATION
2/15/2008 30.00 CPOA REGION X
12/12/2008 142.99 CRAWLEY,JESSE J
12/7/2007 35.00 CUTAJAR JACQUELINE
3/28/2008 97.48 DREESEN JEROME
5/2/2008 26.53 EARDLEY KART-1375758
12/5/2008 504.90 FOREMAN,JOHN R
5/2/2008 38.18 GARCIA MELISSA R
5/2/2008 73.63 GILLASPY BRIAN
8/15/2008 20.00 GOMES FABIANA
3/27/2009 68.99 HAMBORG,ANDERS M
7/18/2008 38.00 HENNEN TIMOTHY
3/7/2008 75.00 HSU WENTANG-1374752
8/1/2008 40.00 JENSEN TERI
9/12/2008 40.00 JENSEN TERI
1/4/2008 60.62 KNOX,JAKE A
4/24/2009 362.21 KRIER,AMY B
5/2/2008 40.74 LESSARD RAELYNNE
2/29/2008 343.00 LVA-HV
3/21/2008 343.00 LVA-HV
4/24/2009 120.73 MC LAUGHLIN,MARK R
11/30/2007 63.37 MOVIUS,HILARY A
8/1/2008 40.00 MURRAY AUDREY
12/5/2008 1,350.34 NGAN,YOLANDA D
10/19/2007 20.00 ORANGE COUNTY SHERIFFS DEPARTMENT
10/19/2007 1,294.01 PETERSON TOM
5/2/2008 59.92 R W REED COMPANY
2/29/2008 236.22 RANNIE SR,LAMES M
8/29/2008 780.00 RIVERSIDE CNTY SHERIFF'S DEPT
11/13/2007 47.66 RONALD JENKINS
9/30/2008 47.66 RONALD JENKINS
12/4/2007 62.50 RYAN JOHNSTON
2/15/2008 40.00 SAULSON ELIZABETH
11/30/2007 63.43 SOULE,ANDREA M
4/10/2009 192.28 WATSON,MARY ANN G
3/21/2008 75.00 WESTMINSTER HIGH SCHOOL
2/13/2009 230.82 WOODWORTH,ERIC L
11/30/2007 42.73 YOUNG,CHEYNA E
1/16/2009 162.87 YOUNKIN,WILLIAM J
8/15/2008 125.00 ZENG XIAOYAN YU
Tota 1: 9,124.46