Agenda Item No: 2.a
PLACENTIA CITY COUNCIL AGENDA REPORT
Meeting Date: February 18, 2025
Submitted by: Jennifer Lampman
From: Finance
Subject:
Transfer of Unclaimed Payroll and Accounts Payable Checks to the General Fund Financial Impact:
Fiscal Impact:
General Fund Revenue: $25,393.67
Summary:
Unclaimed payroll and accounts payable checks that remain unclaimed after three (3) years may become property of a local agency per Government Code Section 50050 following the requisite noticing. Noticing requirements include publishing the list of unclaimed checks in a newspaper of general circulation published in the local agency once a week for two successive weeks. The City published the list in the Orange County Register on December 15, 2024 and December 22, 2024.
In addition, the notice must include the amount of money, the fund in which it has been 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 (45) days after the first publication of the notice.
The City’s Policy No. 447 Unclaimed Payroll and Accounts Payable Checks describes the process to be used and closely follows the requirements of the government code. The City has not completed this process in at least ten (10) years, with checks dating back to 2014.
Recommendation:
Recommeded Action: It is recommended that the City Council take the following action:
1. Open the Public Hearing concerning the transfer of unclaimed payroll and accounts payable checks to the General Fund, consider all public testimony, ask questions of staff, and close the public hearing; and
2. Adopt Resolution 2025-05 a Resolution of the City Council of the City of Placentia, California, amending the City’s FY 2024-25 Budget.
Strategic Plan Statement:
This item is consistent with the City Council approved 5-Year Strategic Goal to Ensure Long- Term Fiscal Sustainability, under Objective #1.6 Update the existing 10-Year Financial Plan.
1 Discussion:
Unclaimed payroll and accounts payable checks that remain unclaimed after three (3) years may become property of a local agency per Government Code Section 50050 following the requisite noticing. Noticing requirements include publishing the list of unclaimed checks in a newspaper of general circulation published in the local agency once a week for two successive weeks. The City published the list in the Orange County Register on December 15, 2024 and December 22, 2024.
In addition, the notice must include the amount of money, the fund in which its been 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 (45) days after the first publication of the notice.
The City’s Policy No. 447 Unclaimed Payroll and Accounts Payable Checks follows the requirements of the government code, including outlining the process for which a claimant to submit a claim to the City Treasurer for the unclaimed check. Recently, the City posted a listing of all unclaimed checks on the City’s website, including instructions and a claim form to submit to the City Treasurer for review, with a check to be reissued if approved. In addition, the Finance department reached out individually to current employees whose name appeared on the list and successfully reissued checks to them.
Policy No. 447 goes beyond the requirements of the government code and recommends conducting a public hearing to give owners of the unclaimed checks a final chance to be heard before the City acquires the funds.
The City has not completed this process in at least ten (10) years with unclaimed checks dated from 2014. No claimants have come forward since publication of the City’s intent to acquire the funds pursuant to Government Code Sections 50050-50052.
Fiscal Impact Summary:
Fiscal Impact:
General Fund Revenue: $25,393.67
Attachments
PM 447 Unclaimed Payroll and Accounts Payable Checks Policy 7-3-16.docx Unclaimed Checks Oct 24.pdf
Attachment_1_-_Resolution_R-2025-05_Unclaimed_Property.docx 2 INTERDEPARTMENTAL PROCEDURES/POLICIES POLICY NO. 447
POLICY MANUAL CITY ADMINISTRATOR
UNCLAIMED PAYROLL AND ACCOUNTS PAYABLE CHECKS 08/01/2016
UNCLAIMED PAYROLL AND ACCOUNTS PAYABLE CHECKS
Purpose
To establish procedures for unclaimed payroll and accounts payable checks.
To insure that unclaimed payroll and accounts payable checks are not susceptible to fraudulent claims.
Definition of Terms
A payroll or accounts payable check which has been outstanding for more than ninety days is an unclaimed check.
Policy
The City of Placentia’s policy is to hold unclaimed payroll and accounts payable rather than escheating the unclaimed funds to the State of California.
Guidelines for unclaimed payroll and accounts payable checks are as follows:
a. Within the first week of every quarter, any payroll or accounts payable check that has been unclaimed for ninety days will be identified. Every means available will be made, by the Finance Division, to locate the payee including sending notice to the payee’s last known address, if available.
After all efforts have been exhausted, the unclaimed check will be added to the Unclaimed Check Listing and the funds will be set aside an account for Unclaimed Checks and listed on a subsidiary ledger.
b. After three years from the check date, if the check remains unclaimed, the check may become the property of the City, after notice is given to potential claimants (Gov. Code Section 50050). Any time after three years, the City’s Treasurer may publish a notice once a week for two successive weeks in a local Placentia newspaper of general circulation. Notice must 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 between forty-five (45) and sixty (60) days after the first publication of the notice(Gov. Code Section 50051).
c. Before or after the notice, and before the date the unclaimed money becomes the City’s property, any interested party may file a claim for the money with the City’s Treasurer (Gov. Code Section 50052). The claim must include the claimant’s name, address, amount of the claim, the grounds on which the claim is founded, and any other information that the Treasurer requires.
3 INTERDEPARTMENTAL PROCEDURES/POLICIES POLICY NO. 447
POLICY MANUAL CITY ADMINISTRATOR
UNCLAIMED PAYROLL AND ACCOUNTS PAYABLE CHECKS 08/01/2016
d. The Treasurer may either accept or reject the claim. However, even if the procedures listed above are not followed, the Treasurer has the discretion, upon submission of satisfactory proof to the Treasurer, to release unclaimed money to the depositor of the unclaimed money or their heirs, beneficiaries, or duly appointed representatives, if the money is claimed before it becomes the City’s property (Gov. Code Section 50052.5).
e. If the Treasurer rejects the claim, the claimant may file a verified complaint in an Orange County Court seeking to recover all or a dedicated part of the money (Gov. Code Section 50052). A copy of that complaint must be served on the City Treasurer within thirty (30) days of receiving notice that the claim was rejected. When a complaint has been filed, the Treasurer must withhold the release of the portion of unclaimed money until a court renders its decision.
f. When the funds become the property of the City (see Section 3.1 2.), the City Council may transfer the money to the General Fund (Gov. Code Section 50053).
g. Although it is not required by statue, it is advisable for the City to notice a public hearing before the City Council before acquiring the unclaimed checks. This will give the owners of the funds one final opportunity to be heard before the City acquires the funds.
Attachment 1 - Claim For Property Held Unclaimed
4 INTERDEPARTMENTAL PROCEDURES/POLICIES POLICY NO. 447
POLICY MANUAL CITY ADMINISTRATOR
UNCLAIMED PAYROLL AND ACCOUNTS PAYABLE CHECKS 08/01/2016
Attachment 1
City of Placentia
Claim For Property Held Unclaimed
Name of Claimant: ___________________________________________________________(print name) Claimant’s Address: ___________________________________________________________________ (Number) (Street Name) ____________________________________________________________________________________(City) (State) (Zip Code) Amount Being Claimed: $_________________________________ Grounds on which the claim is founded:
____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ Other information that may be relevant to this claim:
____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________I certify that the information stated on this form is true and correct:
____________________________________________________(Signature of Claimant) ____________________________________________________(Dated Signed) Approved / Rejected (Circle One) By City Treasurer: _________________________________________________________ (Signature)
_Kevin Larson______________________________________________ (Print Name)
Check Number Issued:______________________________ Check Dated:__________________________________ (Form revised: July 3, 2016)
5 CITY OF PLACENITA
UNCLAIMED CHECKS
For the Month of October 2024
1/7/2022
DATE
ISSUED
CHECK
NUMBER PAYEE CHECK
AMOUNT
6/30/2014 1926866 CALDERON, ERIC 121.34
6/30/2014 1926877 OSBORN, BRANDON 1,260.93
6/30/2014 1926888 WINFIELD, BENNET 35.83
7/15/2015 1927269 KUHSE, JENNIFER 836.87
9/30/2015 1927355 AVILA, GARRET 22.89
2/1/2018 100395 ZACH KING 8.00
3/1/2018 100750 CLEAR CHOICE LIEN SALES INC 257.50
5/31/2018 1928348 STABILE, SIERRA 976.83
6/30/2018 1928404 STUBER, CHRISTOPHER J 32.28
11/1/2018 99657 LA SERNA HIGH SCHOOL BAND REVIEW 75.00
4/1/2019 101046 ORANGE COUNTY GANG INVESTIGATORS ASSOCIATION 25.00 5/1/2019 101257 JOSHUA SHERIDAN 25.00
6/1/2019 101504 HOYT ROOFS INC 100.00
7/2/2019 1928643 REINKER, MARIA 213.01
7/3/2019 1928658 PETRELLA, ASHLEY 420.20
8/1/2019 102153 PACSUN 629.63
9/1/2019 102358 AYSO 1398 375.00
11/1/2019 102936 ORANGE COUNTY SHERIFF'S DEPT 15.00
11/1/2019 102942 MARIA REINKER 426.24
12/1/2019 103185 JEFFREY IRVINE 47.20
12/1/2019 103195 MAC PROS & SALES INSTALLATION INC 100.00 12/1/2019 103218 KRISTIAN RAMIREZ 47.20
12/1/2019 103219 MARIA REINKER 157.08
12/1/2019 103338 VALENCIA HIGH SCHOOL 200.00
1/9/2020 103356 JOHN ADGER 165.00
2/4/2020 103631 PCEA C/O NORTH ORANGE CO 39.00
2/6/2020 103692 SARAH SHIRVANY 28.76
2/27/2020 103878 RIVERSIDE COUNTY SHERIFF/BEN CLARK TRAINING CENTER 369.00 3/26/2020 104121 KIRAN RATHOD 125.00
4/30/2020 104357 JAMES C DOWER 100.00
6/5/2020 104601 ALTURA'S HOA 420.00
6/5/2020 104612 EMANUEL COLOSO 150.00
6/19/2020 1928910 DE PEREZ, BRANDON 227.00
7/23/2020 105063 MARIA GOMEZ 170.00
7/24/2020 105202 LEGAL SERVICE BUREAU 4,000.00
8/21/2020 105486 MISSION LINEN SUPPLY 193.00
9/18/2020 105679 RUDY ELIZARRARAS 10.00
10/13/2020 105901 BENITO RAMIREZ 35.00
10/13/2020 105905 RIVERSIDE COUNTY SHERIFF/BEN CLARK TRAINING CENTER 252.00 10/29/2020 106095 HOTSY OF SOUTHERN CALIFORNIA 211.65
1/20/2021 106671 CENTURY BUSINESS SERVICES INC 3,315.92 1/29/2021 1929087 ORTEGA, QUINTILIANO 388.58
2/3/2021 106804 ALEJANDRA CONTRERAS 34.69
3/5/2021 107136 STEPHAN TANG 100.00
4/6/2021 107453 EMILY CONSUELO ALATORRE 43.00
4/6/2021 107459 KIM BENNETT 43.00
4/6/2021 107469 ROSA ISELA ESCATELAMADOR 86.00
4/6/2021 107475 NESTOR GENUINO 43.00
4/6/2021 107486 ROLAND DANIEL LOPEZ 43.00
4/6/2021 107488 JENNIFER LY 43.00
4/6/2021 107489 KELLYE ERIN MACLEOD 43.00
6 CITY OF PLACENITA
UNCLAIMED CHECKS
For the Month of October 2024
1/7/2022
DATE
ISSUED
CHECK
NUMBER PAYEE CHECK
AMOUNT
4/6/2021 107501 CHANELLE JOYCE NATIVIDAD 43.00
4/6/2021 107504 STANLEY J NELSON 43.00
4/6/2021 107524 JORGE LUIS STREMBERT 43.00
4/6/2021 107527 ISSAC SALVADOR VALENZUELA 43.00
4/6/2021 107532 ANGEL VILLASENOR 43.00
4/30/2021 107774 SPARKLETTS 5,710.35
5/20/2021 107888 YOLANDA GONZALEZ 100.00
6/18/2021 108212 LIFE WATER POOLS 1,122.25
7/30/2021 1929181 LEGARRETA, PAUL 98.55
9/28/2021 109019 AMERICAN MARTIAL ARTS ACADEMY 731.25
10/8/2021 1929245 ROBIDEAU, CONNOR 24.64
11/5/2021 109391 MARTIN JARSON 150.00
11/19/2021 109512 ACD CORP INC 155.00
Total 25,393.67
DATE
ISSUED
CHECK
NUMBER PAYEE CHECK
AMOUNT
12/31/2021 1929321 GILLIS, JOSEPH 8.41
1/14/2022 109982 FORTIN LAW GROUP 328.25
2/4/2022 110179 AMERICAN SUPREME ROOFING 100.00
2/4/2022 110203 FORTIN LAW GROUP 45.00
2/25/2022 110463 TINT PLUS 270.00
3/11/2022 110538 BNSF RAILWAY COMPANY 3,700.00
3/11/2022 110563 KOSMONT COMPANIES 951.60
4/1/2022 110777 MICHAEL MACCUBBIN 209.29
4/15/2022 110911 ARMANDO MARTIN 600.00
4/22/2022 110992 KARINA ORTIZ 100.00
5/13/2022 111227 FABIAN VALDEZ 62.87
6/3/2022 111430 U.S. SPRINT COMMUNICATIONS CO/SPRINT 444.40 6/30/2022 111638 ADAMSON POLICE PRODUCTS 457.94
8/5/2022 124225 CHAD P. WANKE 180.00
8/19/2022 124329 MAACO COLLISION REPAIR & AUTO PAINTING 2,433.46 8/26/2022 124448 DANIEL MILES 29.75
9/23/2022 124660 AMERICAN OFFICE FURNITURE 408.34
9/23/2022 1929589 CONLON, ISABELLA L.291.49
10/7/2022 124864 SHEILA RODRIGUEZ 9.99
11/4/2022 125137 HYUN CHUNG 41.75
11/4/2022 1929621 SARUWATARI, RYAN Y.49.27
11/10/2022 125254 TUFFREE MIDDLE SCHOOL VOCAL ENSEMBLE 100.00 11/10/2022 125256 YORBA LINDA MIDDLE SCHOOL VOCAL ENSEMBLE 100.00 12/2/2022 125442 RIO HONDO COLLEGE 75.00
2/14/2023 126159 CALPERS 326.40
3/23/2023 126525 JASON ALCALA 26.78
3/24/2023 1929698 SODEN, JONATHAN J 49.27
3/30/2023 126608 MATTHEW BRAND 349.89
4/20/2023 126880 YORBA LINDA WATER DISTRICT 251.91
5/25/2023 127223 GOLDEN STATE WATER COMPANY 910.48
7/20/2023 127849 CAREN CAMBRE 185.00
7 CITY OF PLACENITA
UNCLAIMED CHECKS
For the Month of October 2024
1/7/2022
DATE
ISSUED
CHECK
NUMBER PAYEE CHECK
AMOUNT
9/7/2023 128352 CREATIVE BRAIN LEARNING 682.50
9/21/2023 128499 PRINCIPAL LIFE 4,365.90
10/5/2023 128714 ITT INDUSTRIES HOLDINGS INC 91.00
10/12/2023 128852 RTORREZ FINANCIAL CONSULTING SERVICES CORP 1,125.00 11/2/2023 129118 TUFFREE MIDDLE SCHOOL VOCAL ENSEMBLE 100.00 11/2/2023 129121 YORBA LINDA MIDDLE SCHOOL VOCAL ENSEMBLE 100.00 11/15/2023 129245 MCFADDEN ACCESSORIES 19.61
12/13/2023 129609 THE SHERWIN WILLIAMS COMPANY 430.18
1/25/2024 129946 TESLA ENERGY OPERATIONS INC 1,433.73
2/22/2024 130219 RHA LANDSCAPE ARCHITECTS-PLANNERS INC 1,145.00 3/21/2024 130499 MAGIC JUMP RENTALS ORANGE COUNTY LLC 735.35 4/4/2024 130606 CREATIVE BRAIN LEARNING 364.00
4/11/2024 130700 PACIFIC ARCHITECTURAL WOODWORKING INC 1,242.00 4/11/2024 130705 PRESTIGE COLLISION AUTO BODY 2,453.42
6/6/2024 131306 JOE BACKFLOW CO.80.00
6/20/2024 131406 JACE EVERTSEN 81.93
6/27/2024 131523 UNA ESTRELLA EN EL CAMINO 72.00
7/11/2024 131609 CHARTER COMMUNICATIONS 1,352.08
7/18/2024 131786 TAYLOR REVARD 36.00
7/25/2024 131835 ELEANA ARRIZON 158.00
7/25/2024 131854 MAKE IT FIT 67.00
7/25/2024 131867 RIO HONDO COLLEGE 75.00
8/1/2024 131897 MAKE IT FIT 10.00
8/1/2024 131906 STANLEY PEST CONTROL 76.00
8 Resolution R-2025-05 ATTACHMENT 1
RESOLUTION NO. R-2025-05
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PLACENTIA, CALIFORNIA AUTHORIZING A BUDGET
AMENDMENT IN FISCAL YEAR 2024-25 IN COMPLIANCE
WITH CITY CHARTER OF THE CITY OF PLACENTIA
SECTION 1206 PERTAINING TO APPROPRIATIONS FOR
ACTUAL EXPENDITURES
A. Recitals.
(i). The adopted budget for the 2024-25 Fiscal Year sets out estimated appropriations for City expenses throughout the year.
(ii). From time to time the adopted budget must be adjusted when precise revenues and/or expenditures are finally determined, when estimated expenditures exceed projected costs allocated and/or when unanticipated revenues are received. (iii).City Charter of the City of Placentia § 1206 authorizes the City Council to amend or supplement the budget by motion adopted by the affirmative votes of at least three members so as to authorize the transfer of unused balances appropriated for one purpose to another purpose, or to appropriate available revenues not included in the budget. All other legal prerequisites to the adoption of this Resolution have occurred.
B. Resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLACENTIA DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS:
1. In all respects as set forth in the Recitals, Part A., of this Resolution.
2. The adopted budget for Fiscal Year 2024-25, Resolution No. R-2024-38, is hereby amended to reflect the change in the account listed below.
Fund Description Department GL Account Amount Type
101 Unclaimed Checks N/A 100000-4710 $25,393.67 Revenue
4. The Mayor shall sign this resolution, and the City Clerk shall attest and certify to the passage and adoption thereof.
9 Resolution R-2025-05 ATTACHMENT 1
PASSED, ADOPTED AND APPROVED THIS 18th DAY OF FEBRUARY 2025. _____________________________
Kevin Kirwin, Mayor
ATTEST:
____________________________
Robert S. McKinnell, City Clerk
STATE OF CALIFORNIA
COUNTY OF ORANGE
I, Robert S. McKinnell, City Clerk of the City of Placentia, do hereby certify that the foregoing resolution was adopted at a regular meeting of the City Council of the City of Placentia held on the 18th day of February 2025 by the following vote:
AYES:Councilmembers:
NOES:Councilmembers:
ABSENT:Councilmembers:
ABSTAIN:Councilmembers:
__________________________________
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
______________________________
Christian Bettenhausen, City Attorney
10