REPORT TO THE CITY COUNCIL
November 20, 2014
FROM: MICHAEL A. LIMA, Controller/Finance Director/(ex-officio)Treasurer
Finance Department
BY: KAREN M. BRADLEY, Assistant Controller
Finance Department
GREGORY S. WILES, Treasury Officer
Finance Department
SUBJECT
Title
Claim $18,497.13 in funds for uncashed checks dated January 5, 2010 through December 27, 2010 and one bond deposit dating from 2003, and transfer said funds from the "Special Fund" 63539 to the General Fund 10101
1. RESOLUTION - Claiming funds for stale-dated (uncashed) checks dated January 5, 2010 through
December 27, 2010 and one bond deposit from 2003 and transferring said funds from the special unclaimed funds - Fund 63539 to the General Fund 10101
Body
RECOMMENDATION
Approve the Resolution herein attached as Attachment 1 to claim and transfer the funds appropriated for the City-issued checks and one bond deposit listed in Exhibit A to Attachment 1 from Fund 63539 to the General Fund 10101.
EXECUTIVE SUMMARY
State law and City Policy allow the City to recover unclaimed monies in the City Treasury and transfer them into the General Fund for use as Council sees fit. Uncashed checks issued by the City that are older than three years qualify as unclaimed funds. Bond deposits that have never been claimed by prospective contractors also qualify. The City followed the notification procedures outlined in State law, and received no response from the individuals and companies to whom the checks were issued. Upon approval of the attached Resolution, Council may claim and transfer $18,497.13 into the General Fund.
BACKGROUND
Under the City of Fresno Policy and Procedures for Claiming Unclaimed Money in the City of Fresno Treasury for the General Fund (the "Policy"), originally adopted on August 27, 2002, and revised/adopted on January 17, 2013, the City may claim unclaimed funds held in the City's Treasury for more than three years and transfer these funds to the City's General Fund. This unclaimed property includes uncashed checks and deposits for various purposes. This practice is permitted under Government Code Sections 50050-50053 and 50055.
Uncashed checks are checks that have been issued by the City, but for reasons unknown, have never been negotiated, deposited, or cashed by the recipient. These checks have been issued for payroll, Worker's Compensation claims, or in payment for goods or services received. The payee has never notified the City that payment was not received or that the check was lost. Deposits that may be claimed might include bid deposits on various contracts that have never been reclaimed by the bidders for one reason or another.
The Treasury Section generally prepares this Resolution annually to claim property that has been held for more than three years. This year's Resolution includes checks that were written prior to December 31, 2010 and a deposit that has been held since 2003.
State law requires that a list of unclaimed funds (checks or deposits) for amounts of $15 or more be published in a newspaper of general circulation in the City of Fresno for two successive weeks. There is a forty-five (45) day period from the date of the first publication of the list, during which individuals have the right to contact the City and claim the funds on deposit. Any funds that are not claimed become the property of the City of Fresno on the 45th day. The Council may then transfer that money from the fund in which it currently resides, a "Special Fund," to the City's General Fund.
Consistent with the Policy and State Law, the Assistant Controller has published a list of uncashed checks and a deposit older than three years in a newspaper of general circulation in the City of Fresno, once per week, for two successive weeks (See Attachment 2, hereto). The published notice listed the payees for the checks as well as the amount of each check, and the depositor of the single deposit. Prospective claimants were invited to contact the City to obtain instruction as to how to file a claim for the funds. Also, notification that funds could be claimed before the 45th day from the date of first publication was included in the notice.
In addition to meeting the minimum legal requirement for claiming these funds, publishing the amounts in the Business Journal, staff performed additional due diligence by sending letters to each one of the payees and the single depositor at their last known address. Also, the City's worker's compensation claims administrator, American All Risk Loss Administrator ("AARLA"), also sent letters to its payees as well. The letter notified the payee of the existence of the funds, and invited them to submit a claim, including a request for the City to process a reimbursement.
Attachment 2 is a photocopy of the notification published in the Business Journal on April 28, 2014 and May 5, 2014. The list included uncashed accounts payable vendor checks of $8,872.15, uncashed payroll checks of $5,537.67, uncashed workers compensation checks of $204.19, and one bond deposit of $3,800.00. Checks for less than fifteen dollars ($15) each totaled $83.12. There was no requirement to publish these checks, and so the total amount of checks published was $18,414.01.
No claims were submitted. The total amount to be transferred to the General Fund, therefore, is $18,497.13.
The attached list of checks and one deposit, (Exhibit A to Attachment 1), shows the funds that were unclaimed. Upon passing the attached Resolution, these funds will be transferred to the General Fund. The Controller certifies that all of the requirements of the Policy and State law have been met and the City may therefore transfer the funds appropriated for these checks as well as the bond deposit to the General Fund.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines Section 15378 this item does not qualify as a "project" and is therefore exempt from the California Environmental Quality Act requirements.
LOCAL PREFERENCE
Local preference was not considered because this Resolution does not include a bid or award of a construction or service contract.
FISCAL IMPACT
The Cash Balance of the General Fund will be increased by $18,497.13. These funds may be appropriated as the Mayor and Council choose.
Attachments:
Attachment 1: Resolution transferring $18,497.13 to the General Fund
Exhibit A: List of funds to be transferred to the General Fund
Attachment 2: Photocopy of Business Journal Notice