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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Escheatment for Unclaimed Checks and Deposits
1. Motion to escheat unclaimed checks and deposits held by various City funds pursuant to Government Code Sections 50050-50057.
COUNCIL ACTION
Item Type: Consent Calendar
Approved for June 23, 2026 calendar
EXECUTIVE SUMMARY
On an annual basis, the Finance Departments presents the City Council a list of unclaimed property that meet the requirements mandated by Government Code Sections 50050-50057 to escheat funds. As required by the Government Code, the City has made multiple efforts to return these outstanding funds to their rightful owners by attempting to contact them through a variety of different means. Through these attempts, at the time of preparing this report on May 15, 2026, we have resolved forty- six outstanding checks totaling $65,796.67. We have also received forty-seven claim forms for outstanding deposits totaling $441,344.60, which were under review at the time this report was being prepared. After multiple outreach efforts, the remaining unclaimed property as of May 15, 2026, is $73,748.59 for outstanding checks and $645,730.00 for outstanding deposits. Claims continue to be accepted until today (June 23, 2026), and the actual remaining unclaimed property balance may be less due to additional claims received.
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RECOMMENDATION
Authorize the Director of Finance to escheat unclaimed checks and deposits held by various funds pursuant to Government Code Sections 50050-50057 and transfer the escheated funds into the general fund.
ANALYSIS
California Government Code Sections 50050-50057 provide the legal framework for local agencies to handle unclaimed funds, such as uncashed checks or unclaimed deposits. These laws allow local governments to take ownership of and transfer unclaimed money to their general fund after three years for funds over fifteen dollars ($15), following a defined public notification process. The notification process requires the list of unclaimed checks and deposits to be published as public notice once a week for two successive weeks in a local newspaper. Then any remaining unclaimed funds become the property of the City on a designated date not less than forty-five days nor more than sixty days after the first publication of the notice. Any individual check under fifteen dollars ($15) that remain unclaimed for one year can be transferred to the general fund without public notice.
Outstanding Checks:
In February 2026, Finance Department staff obtained a list of all outstanding checks from the City Treasurer’s office which included checks issued in 2022 and earlier. Staff, from multiple departments, and AdminSure, the City’s workers’ compensation third-party administrator, worked collectively to contact each payee to notify them of their unclaimed funds by phone, e-mail, and U.S. mail. Multiple attempts were made to contact each individual, after which the City per state requirements published the list of unclaimed funds in the local newspaper on May 7 and May 14, 2026. The City took additional measures, beyond the general requirements, by issuing a press release, posting notifications on the City’s website and the City’s different social media platforms.
In addition, with the help of Information Technology Department, the City launched a new online portal allowing claimants to search and submit a claim for their funds directly through the City’s online portal.
The outstanding checks can be reissued by Accounts Payable once a replacement check affidavit is submitted to the City Treasurer’s Office. Once the affidavit is reviewed and approved, the City Treasurer’s Office will then process a stop payment with the bank for the original check then forward the completed packet to Accounts Payable for a check to be reissued.
As of May 15, 2026, the date this report was prepared, staff were able to resolve forty- six outstanding checks totaling $65,796.67 with the remaining unclaimed checks being 179 checks, totaling $73,748.59.
In accordance with federal regulation Title 45, Subtitle B, Chapter II, Part 201, Subpart B, Section 201.67, if a check remains uncashed beyond a period of 180 days from the date it was issued, i.e., the date of the check, it will no longer be regarded as an amount expended because no funds have actually been disbursed. If the State (or local) agency 5f3
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has claimed and received Federal Financial Participation (FFP) for the amount of the uncashed check, it must refund the amount of FFP received. As of the date of this report being prepared, $34,685 of the uncashed checks falls within this federal regulation.
Outstanding Deposits:
Also in March 2026, Finance Department staff worked with Public Works and Community Development staff for the list of outstanding deposits. Public Works and Community Development staff contacted each payee through variety of methods including phone, e-mail, and U.S. Mail. Currently, there are forty unclaimed deposits in the amount of $25,800.00, which are associated with the Excavation Permits administered by Public Works Department. In addition to the forty unclaimed deposits, there are ninety-three unclaimed deposits in the amount of $619,930.00, which are associated with the Construction and Demolition (C&D) Debris Bond administered by Community Development Department.
To obtain excavation permit refund, applicants must submit an application. Public Works staff reviews the inspection document to verify the eligibility. Once all requirements are met, Public Works staff request the issuance of the refund through Accounts Payable.
To obtain a C&D Debris Bond refund, applicants must divert 65% of the project’s estimated debris to a certified mixed debris recycling facility and submit Waste Reduction and Recycling Plan Compliance Report within six months of certificate of occupancy. Community Development staff request the issuance of the refund through Accounts Payable once all the requirements are met.
Construction permits associated with the C&D Debris Bond deposits often remain active for more than three years. By the end of a five-year period from issuance, the permits are either expired, or construction projects are completed. Thus, C&D Debris Bond deposits older than five years are subject to the escheatment.
On July 30, 2019, Council approved the amendment of Chapter 8 of the Glendale Municipal Code, related to Construction and Demolition Debris, transferring enforcement, responsibility, and administration of the Ordinance from Public Works Department, Integrated Waste Management, to the Community Development Department, Building and Safety Division. The amendment applies to the C&D Debris Bond deposits processed subsequent to the adoption date. Six out of ninety-three outstanding C&D Debris Bond deposits in the amount of $104,900.00, were processed prior to the amendment adoption date, and thus, shall be retained by the City to promote waste diversion efforts in the community. (Ord. 5895 §1, 2017). The remaining eighty-seven outstanding C&D Debris Bond deposits in the amount of $515,030.00, shall be retained by the City in the General Fund.
After extensive outreach over the past few months, staff received forty-seven claim forms for unclaimed deposits totaling $441,344.60 as of May 15, 2026, the date this report was prepared. These forty-seven claims were being reviewed by CDD staff to verify refund 5f4
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eligibility, and refunds would be issued once the verification process is complete. The remaining one-hundred and thirty-three unclaimed deposits total $645,730.00.
STAKEHOLDERS/OUTREACH
The City of Glendale has taken measures beyond the state minimum notification requirements utilizing variety of different outreach methods. First, City staff and AdminSure attempted to contact each payee directly by phone, e-mail, and U.S. mail.
Next, detailed notices were published in the Glendale Independent on May 7 and May 14, 2026. A press release was also published providing instructions on how to claim these funds by directing any party of interest to the City’s website and the City’s new unclaimed funds portal. Similar notices have also been posted on the City’s website and various social media platforms. Staff will continue to work with the public and accept any new claims until the timeframe per Government Code Section 50050-50057 is met and per City Council approval to escheat any remaining unclaimed funds.
FISCAL IMPACT
If approved by the Council, the escheated funds up to $719,478.59 will be transferred to the General Fund ($579,893.59), the Housing Assistance Fund ($34,685.00), and the Refuse Fund ($104,900.00). This amount is as of May 15, 2026, the date this report was prepared. The final escheated amount may be lowered based on the number of checks and deposits claimed between May 15, 2026, and the date of the City Council meeting this report is presented.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
This item is not subject to CEQA/NEPA review.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
1: Do not authorize to escheat the checks and deposits held by various funds pursuant to Government Code Sections 50050-50057.
2: Consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Jack Liang, Director of Finance
Prepared by:
Steve Kwon, Accounts Payable Supervisor
Steve Kim, Accounting Supervisor
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Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1: Outstanding checks and deposits to be escheated Exhibit 2: Copy of Press Release
Exhibit 3: Proof of publication in the Glendale Independent