HomeMy WebLinkAbout7 Resolution 2018-15 Unclaimed FundsTo: Board of Directors
From: Regina Wise
Date: July 18, 2018
Subject: Consideration of Adopting Resolution 2018=15, Updating Unclaimed
Funds Process
1. WHY THIS MATTER IS BEFORE THE BOARD
Board Resolution 8912 (Attachment 1) states that only the Board can authorize the
retention of unclaimed funds. The Boards policy aligns with Government Code
Sections 50050 through 50056 (Attachment 2) that governs the District's method by
which funds can be retained that are owed to customers who cannot be located.
However, in reviewing the Resolution and current Government Code, Staff found
Resolution 8912 is outdated. Staff is presenting this item for Board review of the
current process and consideration of rescinding resolution 8912. Staff further
recommends implementing current Government Code regulations into the process.
2. HISTORY
The District has historically had low volume of unclaimed funds. Below is a summary
of the last three actions by the Board over more than a 5 year period to approve the
retention of unclaimed funds:
Date
11/2/2016
12f 18/2013
9/5/2[}12
# of Stale Dated Checks
14
6
6
Total $ Value
$1,396
$341
$346
The District will advertise in the Sierra Sun noticing 2018 unclaimed funds totaling
$21259 (Attachment 3).
3. NEW INFORMATION
The most notable difference between the current Resolution 8912 and current
Government Code sections 50050-50057 is that Resolution 8912 allows for amounts
less than $10 to be immediately transferred to the General Fund that have been on
hand for three years or more.
Current Government Code section 50055 was revised to allow for amounts of $15 or
less that have been on hand for a period of one year or more to be immediately
transferred to the General Fund.
The remaining current process as stated in Resolution 8912 and Government Code
are aligned. Staff will continue to comply with Government Code and plans to
incorporate this policy into the District Code Title 3 - Finance and Accounting for Board
consideration as well.
4. FISCAL IMPACT
Stale dated checks are recorded as Miscellaneous Revenue to the Electric and Water
Utilities respectfully.
5. RECOMMENDATION
Staff recommends the following adopting Resolution 2018-15 as presented in
Attachment 4, related to unclaimed funds
q e% �N 6( J,
Lisa Hall
Administrative Services Director
Michael D. Holley
General Manager
Attachment 1
RESOLUTYON N0. 6912
OF THE
TRULKEE DONNER PUBLIC UTxLITY DISTRICT
AUTHORIZING THE RETENTION OF FUNDS
REPRESENTED BY UNPROCESSED CHECKS
WHEREAS, the Truckee Danner Public Utility District has issued
certain checks that have not been deposited; and
WHEREAS, Government Code Sections 50050 through 50056 govern the
method by which the Truckee Donner Public Utility District can
retain funds that are owed to customers who cannot be located,
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Truckee Donner Public Utility District that the General Manager
shall cause the following procedure to be followed in accordance
with the Government Code:
For amounts less than $10, or for any amount if the
depositor's name is unknown, the District can immediately
transfer into its General Fund those funds which have been
on hand for three years or more. Any amounts of $10 or
greater that have been on hand for at least three years can
be deposited in the District's General Fund after a notice
has been published in the Sierra Sun for two successive
weeks. The notice shall identify the amount, the name of
the person entitled to the funds, and state that the funds
will become the property of the District if they are not
claimed by a date that is not less than 45 nor more than
60 days after the first publication. If not claimed by the
deadline printed in the notice, those funds also become the
property of the District upon formal action by the Board
to transfer such funds.
FASSED AND ADOPTED by the Board of Directors of the Truckee Donner
Public gtility District at a meeting duly called and held within
the District by the following roll call vote:
AYES: Aguera, Corbett, Sutton, White and Maass.
NOES; None.
ABSENT: None.
TRUCKE$ DONNER PUBLIC UTILITY DISTRICT
By Vk �
i � J es A. Maass, presiden
ATTEST
B San M. Craig, Deputy D 'tr ct Cleik
Mc
6l2512018 Codes Display Text Attachment 2
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II / LEGISLATIVE INFORMATION
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GOVERNMENT CODE - GOV
TITLE 5. LOCAL AGENCIES [50001 - 575501 { Title 5 added by Slats. 1949, Ch. 61. }
DIVISION 1. CITIES AND COUNTIES [50001 - 52203] ( Division 1 added by Stals. 1949, Ch. 81, )
PART 1. POWERS AND DUTIES COMMON TO CITIES AND COUNTIES (50001 , 51298o5] (Pad 1 added by Slats.
1949. Ch, 81,)
CHAPTER 1. General [50001 - 502901 (Chapter J added by 5fafs. J949, Ch. 8J )
ARTICLE 3. Financial Affairs (50050 - 50057j (Article 3 added by Slats. 1449, Ch. 81. )
50D50, 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.
(Amended by Slats. 2013, Ch. 457, Sec. 1. (AB 934) Effe.rtive January 1, 2014.)
5051. The notice shall state the amount of money, the fund in which It is held, and that it Is proposed that the
money w111 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.
(Added by Stats. 1949, Ch. 81.)
0052o
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.
(Amended by Slats. 1984, Ch. 866, Sec. 2.)
9
(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
https:/lleginfo leg lslature.ca.gav/faces/codes_dlsplayText,xh1m171awCode=GOVtidivislon=l.&title=5 &part=l.8chapter--1 _&article=3. 1,'3
6/2512018 Codes Display Text
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) [f the value of the unclalmed 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 unclalmed money deposited with the county treasurer is sixty thousand dollars ($60,OOp) 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.
(Amended by Stat>. 2000, Ch, 333, Se:. 1. Effective January 1, 2001.)
50063
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.
(Added by Stats 1949, Ch 81.)
nn
� 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.
(Added by Stals 1971, Cir. 558 )
00559
Any other provision of this article notes:thsCanding, 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.
(Amended by Slats 1996, Ch, 89, Sec. 1. Effective July 1, 1996.1)
5005ti. 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.
(Added by Slats 1984, Ch 866, Sec. 4 )
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6/25/2018 Codes Display Text
$045L 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.
(Amended by Stats. 2011, Ch. 382, Sec. 2. (SB 194) Effective January 1, 2012.)
hlips;//leginfo,legisiature.ca.govlfaceslcodes displayText xhtm171awCode=GOV&division=l &title=5.3part=1.&chapter--1.&arUcie=3 313
Attachment 3
The Truckee Donner Public Utility District has held for over three years the
following funds, in the names of the following persons, who can not be located.
Check Date Name on check Check Amount
7/18/2013 NELSON, WILLIAM T 165,89
8/8/2013 KING, BETH 44.83
11/7/2013 HACKLEY, MICHAEL C 181.10
5/14/2014 VOSLER, BRANDIE 55.55
6/6/2014 GYULASSY, ATTILA 19103
8/7/2014 MALDONADO, GUSTAVO 55.40
9/5/2014 PACE, CHADWICK 222.47
2/13/2015 MEADOW PARK PLAZA 2 1,305.21
5/15/2015 REMMEL, VINCENT 35.52
Subtotal 21259.00
Attachment 4
Resolution No. 2018 - '10
Authorizing the Retention of Funds Presented by Unprocessed
Checks
WHEREAS, Resolution 8912 states that only the Board can authorize the retention of unclaimed
funds;
WHEREAS, the Board's policy established with Resolution 8912 aligns with Government Code
Sections 50050 through 50056 that govern the District's method bywhich funds can be retained that
are owed to customers that cannot be located; and
WHEREAS, Resolution 8912 prevents the ability for staff to follow changes made in government
code, and in reviewing staff has noticed the changes in Government Code in comparison to the
Boards policy would be more efficient for the District reducing costs incurred in this process; and
WHEREAS, the policy for retention of unclaimed funds will be implemented into District Code
reflecting that the District policy is aligned with Government Code Sections 50050 through 50056 in
processing any unclaimed funds
NOW THEREFORE BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE TRUCKEE
DONNER PUBLIC UTILITY DISTRICT THAT:
Section 1. All previously adopted resolution and ordinances related to retention of unclaimed funds
are hereby rescinded.
Section 2. The General Manager will direct the process of unclaimed funds in accordance with
Government Code sections 50050 through 50056
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the
District on the eighteenth day of July, 2018 by the following roll call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
Tony Laliotis, President
ATTEST:
Shanna D. Kuhlemier, CMC, District Clerk