HomeMy WebLinkAboutR-10738 - APPROVING THE CITY’S POLICY FOR THE ESCHEATMENT OF UNCLAIMED MONEYRESOLUTION NO. 10738 (2016 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE CITY'S POLICY FOR THE
ESCHEATMENT OF UNCLAIMED MONEY
WHEREAS, from time to time checks issued by the City will remain un -cashed despite
efforts made by City staff to make contact with the payees and re -issue the checks; and
WHEREAS, California Government Code Sections 50050 et seq., establishes the
guidelines for a local agency to follow in order to transfer unclaimed money held by the local
agency, which is not the property of the local agency, to the local agency General Fund.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Obispo,
as follows:
SECTION 1. The Council hereby approves and adopts the City of San Luis Obispo Policy
for the Escheatment of Unclaimed Money as set forth in Exhibit A attached hereto and
incorporated in this Resolution as if fully set forth at this point.
SECTION 2. This Resolution is effective upon its adoption.
Upon motion of Council Member Christianson, seconded by Vice Mayor Carpenter, and on the
following roll call vote:
AYES: Council Members Ashbaugh, Christianson and Rivoire,
Vice Mayor Carpenter and Mayor Marx
NOES: None
ABSENT: None
The foregoing resolution was adopted this 16`h day of August, 2016.
(; - 1�/�
Mayor &
Marx
ATTEST:
Carrie Gallagher
City Clerk
R 10738
Resolution No. 10738 (2016 Series)
APPROVED AS TO FORM:
-11.7 1— -AAA.,,
Page 2
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this 16�day of OLuaus , 20 LCe
Carrie Gallagher
City Clerk
R 10738
Resolution No. 10738 (2016 Series) EXHIBIT A
Finance & Information Technology
990 Palm Street, San Luis Obispo, CA 93401-3249
805.781,7130
slocibj org
Financial Policies — Unclaimed Money
Page 3
The purpose of the unclaimed check policy is to provide the proper mechanism to take possession of long standing
unclaimed monies in accordance with government statutes and to ensure the propriety of the related accounting
transactions.
A. STATE LAW. State law specifies that money that is not the property of a local agency, including cities,
that remains unclaimed for a period of more than three (3) years becomes the property of the City not
less than forty-five days after an initial public notice is published in a newspaper of general circulation
published in the local agency.. (Government Code Secs. 50001, 50050 and 50051.)
B. DATE UNCLAIMED MONEY BECOMES CITY PROPERTY... Money that is not the property
of the City of San Luis Obispo that remains unclaimed for a period of more than three (3) years shall
become the property of the City of San Luis Obispo forty-five(45) days after the initial public notice is
published., except as otherwise specifically provided below. PUBLISHER NOTICES. At any time
after the expiration of the three (3) year period, the Treasurer of the City of San Luis Obispo will cause
a notice to be published once a week for two successive weeks in a newspaper of general circulation
published in the City of San Luis Obispo. (Gov. Code Secs. 50050 and 50051)
NOTICE CONTENTS. The notice shall include the statutorily required information, which is the amount
of money, the fund in which it is held, and that that the money shall become the property of the City of San
Luis Obispo on a date forty-five (45) days after the first publication of the notice. The notice may also, but
is not required to, include the following information: 1. The individual or business name as shown on the
issued check. 2. The check date, number and the amount of money on the issued check. See Exhibit I.
(Gov. Code Sec. 50051)
C. PERMISSIVE WRITTEN NOTICE. At or about the time of the initial published notice, the City may
attempt to send a letter and affidavit form for replacement checks to the address on record for the for
any warrant(s), check or other item issued more than three (3) years prior to evaluation date. Failure to
send the letter and affidavit form or the failure of any person to receive either or both will not prevent
the unclaimed money from becoming the property of the City forty-five (45) days after initial
publication of the notice.. See exhibit II and III
D. PROOF OF PUBLICATION. A proof of publication from the newspaper is to be retained in accordance
with the City's records retention policy as proof that the City published the required notice for two
consecutive weeks.
CLAIM/CONTENTS. Upon or prior to publication, a party of interest may file a claim with the Treasurer,
before the date the unclaimed money becomes the property of the City, seeking to claim all, or a designated
part, of the unclaimed money. The claim which must include the following information:
The claimant's name, address and telephone number. 2. The claimant's Social Security Number or Federal
Employer Identification Number. 3. Proof of identify of claimant such as a copy of a driver's license, social
security card or birth certificate. 4. The amount of the claim. 5. The grounds on which the claim is founded.
The treasurer may accept or reject the claim. See Exhibit III. (Gov. Code Sec. 50052).
Resolution No. 10738 (2016 Series) EXHIBIT A
Finance % Information Technology
990 Palm Street, San Luis Obispo CA 93401-3249
805,781,7130
slocity arg
Page 4
E. RELEASE OF UNCLAIMED MONEY. 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 City upon submitting proof satisfactory to the Treasurer.
(Gov. Code Sec. 50052.5)
F. TRANSFER FROM SPECIAL TO GENERAL FUND. When the unclaimed funds become the
property of the City of San Luis Obispo and are in a Special fund, the City Council may transfer them
by resolution to the General Fund. (Gov. Code Sec. 50053)
G. UNCLAIMED MONEY LESS THAN $15.. Any individual item of less than fifteen (15) dollars, or
any amount if the depositor's name is unknown, which remain unclaimed for a period of one (1) year,
the City Council may transfer them from the funds which the money was originally drawn from to the
General Fund without the necessity of publication of a notice in a newspaper. (Gov. Code Sec. 50055)
H. DELEGATION OF TREASURER'S RESPONSIBILITIES TO DEPARTMENTS. The responsibility
of the Treasurer may be delegated by the Treasurer to the department that maintains the supporting
records of the un -cleared checks or unclaimed money based on the initial receipt or deposit of the
money or both. (Gov. Code Sec. 50056). The Treasurer may delegate its responsibilities for processing
unclaimed money claims to the Accounting Manager in the Finance Department.
I. ACCEPTANCE OF CLAIM. Except otherwise provided in this procedure, if the Treasurer or Finance
or other Department accepts the claim, the City may release to the depositor of an unclaimed check,
warrant, money or other item, or the heir, beneficiary, or duly appointed representative of the depositor,
all or a designated part of the amount of an unclaimed check, warrant or other item, if-
Claim
f
Claim is filed prior to the date the money becomes the property of the City of San Luis
Obispo
Proof substantiating the claim is conveyed in writing, including all items
detailed in items "G" and "H" of this policy.
After proper documentation is secured, payment request is prepared to
release money based upon approved Claim Form.
REJECTION OF CLAIM. If the treasurer or Finance or other Department rejects al or part of a claim
for unclaimed money, (Exhibit III), the claimant may file a verified complaint seeking to recover all,
or a designated part, of the money in a court within San Luis Obispo County. The City Clerk shall be
served with a copy of the complaint and summons which within thirty (30) days of the claimant
receiving notice that the claim was rejected. The City Clerk shall notify the Finance Department or
other department that rejected the claim. The City shall withhold the release of the portion of the
unclaimed money for which a court action has been filed until a decision is rendered by the court. See
Exhibit IV
1. Upon close of business on the forty-fifth (45) day after publication of the first notice, the
unclaimed money amounts revert to the City of San Luis Obispo. See Exhibits V and VI.
Resolution No. 10738 (2016 Series) EXHIBIT A
r Finance & Information Technology
990 Palm Street, San Luis Obispo, CA 93401-3249
805.781.7130
slOdtp nrg
Page 5
L. ACCOUNTING TRANSACTIONS.
1. If a claim for unclaimed money is received prior to the date designated in the Public Notice for
the unclaimed money to become the property of the City„ the Accounting Manager will verify
the claimant's supporting information and obtain an approval to stop payment of the claimed
check for checks over $1,000. If the claimant satisfies all conditions required under this
procedure, the City will void the old check and issue a new check for the claimed amount to
the claimant.
i. Accounts payable checks, and Payroll checks will be voided through the void process.
In addition, a journal entry will be prepared to Debit the original expense account and
Credit the Unclaimed Funds revenue account 100-XXXX.
ii. As of March 31 st, annually, all outstanding checks of less than fifteen (15) dollars from
Accounts Payable and Payroll will be checked to determine those checks that have
issue dates over twelve (12) months. These amounts will then be set into a resolution
for the City Council to approve, transferring these amounts to the General Fund
miscellaneous revenue account. Follow step i, above.
M. POLICY REVIEW
This policy shall be reviewed at least biannually.
Attachments:
Exhibit I - Sample of Public Notice
Exhibit II — Sample Letter
Exhibit III -Sample of Unclaimed Money — Claim Form
Exhibit IV — Sample of Money Claim Rejection Form
Exhibit V — Resolution to transfer unclaimed check funds to the General Fund
Exhibit VI — Resolution to transfer unclaimed funds of checks less than fifteen dollars (15) each or any
amount, if the depositor's name is unknown to the General Fund
Exhibit VII - California Government Code Section 50050-50057
Resolution No. 10738 (2016 Series) EXHIBIT A
Finance & Information Technology
990 Palm Street, San Luis Obispo, CA 93401-3249
805.781 7130
slocity ory
Exhibit I — Sample of Public Notice
PUBLIC NOTICE
Page 6
NOTICE IS HEREBY GIVEN THAT, the Finance Department of the City of San Luis Obispo, County
of San Luis Obispo, State of California, declares that the following monetary sums have been held by
the City of San Luis Obispo 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 San Luis Obispo on the xx the day
of the Month, Year, a date not less than forty-five (45) days after the first publication of this Notice.
Any party of interest may, prior to the date designated herein above, file a claim with the City's Finance
Department which includes the claimant's name, address and telephone number, Social Security
Number or Federal Employer Identification Number, amount of claim, the grounds on which the claim
is founded. The Unclaimed Money Claim Form can be obtained from the City's Administrative office
at 990 Palm Street, San Luis Obispo, CA 93401, or from the City's website at http://www.slocity.org.
Proof of identify such as a copy of a driver's license, social security card or birth certificate must be
provided before funds will be released. With any questions, please contact the City of San Luis Obispo,
Finance Department at (805) 781-7124
This notice and its contents are in accordance with California Government Code Sections 50050-50056.
Check Date Check Number Payee Name Check Amount
Resolution No. 10738 (2016 Series) EXHIBIT A
Finance & Information Technology
l 990 Palm Street, San Luis Obispo, CA 93401-3249
805.781.7130
slocity ory
Exhibit II — Sample Letter
Dear
Our records indicated that check number
in the amount of $
Page 7
issued to you on
by the City of San Luis Obispo, has not
been cashed and is now stale dated. To claim this money, please complete the enclosed
'Stale Dated Check Replacement Affidavit' as indicated and mail to:
City of San Luis Obispo
Finance Department
990 Palm Street
San Luis Obispo, CA 93401
Upon receipt of the properly signed affidavit, a new check will be issued to you. Please
feel free to call at 805-781-7434 if you have any questions or any assistance.
Finance Director
City of San Luis Obispo
Enclosure
Resolution No. 10738 (2016 Series) EXHIBIT A
Finance & Information Technology
990 Palm Street, San Luis Obispo. CA 93401-3249
805 781 7130
Exhibit III — Sample of Unclaimed Money — Claim Form
CITY OF SAN LUIS OBISPO
UNCLAIMED MONEY — CLAIM FORM
Return completed form to:
City of San Luis Obispo Finance Department
990 Palm Street
San Luis Obispo, CA 93401
Page 8
Pursuant to California Government Code Section 50052, I wish to file a claim for a previously
unclaimed check in the amount of $ that was published in the SLO Tribune on
. The grounds on which I file this claim are:
Vendor or Individual Name (Printed)
Vendor or Individual Name (Signature)
Address
City/State/Zip Code
FOR FINANCE DEPARTMENT ONLY
Proof of Identity Verified (check one):
Driver's License Social Security Card
Verified By:
Claim: Approved Rejected
Taxpayer I.D. or Social Security No.
Telephone Number
Reason for Rejection:
Birth Certificate
Date:
Reviewed By: _ Date:
Resolution No. 10738 (2016 Series) EXHIBIT A
Finance & Information Technology
990 Palm Street, San Luis Obispo, CA 93401-3249
805.781.7130
slocity org
Exhibit IV — Sample of Money Claim Rejection Form
CITY OF SAN LUIS OBISPO
MONEY CLAIM REJECTION FORM
The City of San Luis Obispo has rejected the unclaimed property claim of:
Vendor or Individual Name:
Taxpayer I.D. or Social Security Number:
Address:
City/State/Zip Code:
Original Check Date: —
Original Check Amount:
Page 9
The grounds on which this claim has been rejected are:
Under California Government Code Section 50052, you have the right to file a verified complaint
seeking to recover all, or a designated part, of the money in a court of competent jurisdiction within
San Luis Obispo County. A copy of the complaint and the summons issued thereon must be served
within thirty (30) days of receiving this notice of rejection. Upon being served, the Finance Director
will withhold the disputed amount from being released until a decision is rendered by the court.
Resolution No. 10738 (2016 Series) EXHIBIT A
Finance & Information Technology
990 Palm Street, San Luis Obispo. CA 93401-3249
805.781, 7130
slocity org
Exhibit V — Resolution to transfer unclaimed check funds to the General Fund
CITY OF SAN LUIS OBISPO
RESOLUTION NO.
Page 10
RESOLUTION TO TRANSFER UNCLAIMED CHECK FUNDS FROM THEIR RESPECTIVE
FUND(S) TO THE GENERAL FUND PURSUANT TO CALIFORNIA GOVERNMENT CODE
SECTION 50053
WHEREAS, the attached list of checks has been outstanding and unclaimed in special funds for
more than three years; and
WHEREAS, the City has provided public notice as required in California Government Code
Sections 50050 and 50051 and the City's Unclaimed Check Policy,
NOW THEREFORE, BE IT RESOLVED, that in accordance with California Government Code
Section 50053, the unclaimed checks on the attached list in the total amount of $00.00 shall be
transferred from the respective funds(s) to the General Fund's non -departmental revenue account.
PASSED AND ADOPTED by the City Council of the City of San Luis Obispo at a meeting on
by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
City Clerk
Mayor
Resolution No. 10738 (2016 Series) EXHIBIT A
Finance & Information Technology
990 Palm Street, San Luis Obispo, CA 93401-3249
805.781 7130
slocity ory
Page 11
Exhibit VI — Resolution to transfer unclaimed funds of checks less than fifteen (15) dollars each or any
amount, if the depositor's name is unknown to the General Fund
CITY OF SAN LUIS OBISPO
RESOLUTION NO.
RESOLUTION TO TRANSFER UNCLAIMED CHECK FUNDS FROM THEIR RESPECTIVE
FUND(S) TO THE GENERAL FUND PURSUANT TO CALIFORNIA GOVERNMENT CODE
SECTION 50055
WHEREAS, the attached list of checks has been outstanding and unclaimed in special fund(s) for more
than three years; and
WHEREAS, each of the checks listed on the attached summary is less than fifteen (15) dollars or any
amount, if the depositor's name is unknown,
NOW THEREFORE, BE IT RESOLVED, that in accordance with California Government Code Section
50055, the unclaimed checks on the attached list in the total amount of $00.00 shall be transferred from the
respective funds(s) to the General Fund's non -departmental revenue account.
PASSED AND ADOPTED by the City Council of the City of San Luis Obispo at a meeting on
by the following vote:
AYES:
NOES:
ABSTAIN-
ABSENT:-
ATTEST:
BSTAIN:ABSENT:ATTEST:
City Clerk Mayor
Resolution No. 10738 (2016 Series) EXHIBIT A
Finance & Information Technology
990 Palm Street, San Luis Obispo, CA 93401-3249
805.781.7130
sl06bj org
Exhibit VII — California Government Code Section 50050-50057
GOVERNMENT CODE
SECTION 50050-50057
Page 12
5o0o. Unclaimed on in tr u of local a enc or cu fofficers: ubli ation of no i
restitution n of moncy for victim rvic
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.
5oo5l. Unclaimed mgnev: notice; contents
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.
552. Unclaimed money, filing of claim; requisites, acceptance or rejection; court proceedings
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.
Resolution No. 10738 (2016 Series) EXHIBIT A
Finance £r Information Technology
990 Palm Street. San Luis Obispo, CA 93401-3249
805.781, 7130
slocity org
Page 13
Soo -52,S. Unclaimed money; release: value; liability
(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 acquaintance 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.
5oo5n. Unclaimed mon r f r to &tneral fund on acquisition of owner hi
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.
-500,54. Pcl'formance of construction services or construction of public works by governmental body_;charZe
Resolution No. 10738 (2016 Series) EXHIBIT A Page 14
Finance & Information Technology
990 Palm Street, San Luis Obispo, CA 93401-3249
805.781.7130
slocity ary
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.
,go( Unclaimed money: transfer' to genergl fund
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.
00 6. U c1 ' m ne • transfer to uneral fund
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.
Amount of five -thousand dollars or les; authori1y of counV treasurer
For individual items in the amount of five thousand dollars ($5,000) or less, the legislative body of any
county may, by resolution, authorizes 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.