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Home My WebLink About65A - UNCLAIMED DEPOSIT TRANSFERREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: JULY 2, 2019 TITLE: APPROVE THE RECOGNITION OF REVENUE AND TRANSFER OF CERTAIN UNCLAIMED DEPOSITS FROM THE CITY AGENCY FUNDS AND THE WATER ENTERPRISE FUND (STRATEGIC PLAN NO. 4, 1) RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1s' Reading ❑ Ordinance on 2"d Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Approve the recognition of $399,606.30 of revenue in the General Fund and $529,796.46 of revenue in the Water Enterprise Fund for certain unclaimed deposits, as allowed by state law. 2. Approve the transfer of active deposits from the Treasurers Trust Fund (Fund 098) to the City Services Fund (Fund 053), and the closure of the Treasurers Trust Fund as of June 30, 2019. DISCUSSION This request for action is a routine item to clean-up the City's trust deposit accounting. For many years, the City has accepted deposits from developers, property owners, and utility companies for City services and the privilege to temporarily utilize City resources or the public right-of-way for private projects. State law allows the City to publish notification of the stale deposits, offering the public an opportunity to claim them. When no claims are made, the City can recognize the stale deposits as revenue. Finance and Management Services Agency (FMSA) staff has identified $399,606.30 of deposits that can be recorded as revenue in the General Fund and $529,796.45 of deposits that can be recorded as revenue in the Water Enterprise Fund. Due Diligence Efforts — Fiscal Year (FY) 2017-18 During the fiscal year 2017-18, FMSA staff conducted extensive research to obtain supporting documentation for the unclaimed deposits by reviewing the City's financial records. FMSA staff worked with the following Departments to identify supporting documentation: • Clerk of the Council • Police Department • Public Works Agency • Planning and Building Agency • Parks, Recreation, and Community Services Agency 65A-1 Approve the Recognition of Revenue and Transfer of Certain Unclaimed Deposits From the City Agency Funds and the Water Enterprise Fund July 2, 2019 Page 12 The Departments noted above confirmed that no records exist to determine the nature of the accounts, and/or to confirm if deposits were accepted to provide a service. To ensure the public was aware of the existence of unclaimed deposits on file with the City, FMSA staff published a Public Notice in April 2018 in accordance with the applicable Government Code Sections. No claims were filed with the City, and staff requested City Council action to recognize these deposits as City revenue in June 2018. However, staff was advised by the City Council to expand its due diligence efforts. Due Diligence Efforts — FY 2018-19 FMSA staff continued working with other departments to gather information during fiscal year 2018-19. The departments confirmed that either the City had provided a service, or due to change in financial software, no corresponding records are readily available. FMSA staff published a second Public Notice in accordance with the relevant Government Code Section on April 27 and May 4, 2019 (see Exhibit 1). The City did not receive any claims (the cut-off was June 11, 2019 or 45 days from Public Notice). As a result, the unclaimed deposits held by the City are now eligible to be recorded as City revenue. In addition, FMSA staff has developed an Unclaimed Funds Policy (Policy) for distribution to all City Staff. The Policy outlines the treatment of funds when they are considered unclaimed, along with the process in notifying the public the existence of the said funds. If City Council approves the staff recommendation, the following actions will be taken Recognize Revenue in the Water Enterprise Fund Unclaimed deposits related to Water Services, in the amount of $529,796.45 will be recorded as revenue in the Water Enterprise Fund. The funds were accepted by the Water Department from contractors to allow the use of City water during a construction project within the City limits. Transfer to General Fund Unclaimed deposits in the amount of $399,606.30 will be recorded as revenue in the General Fund, in accordance with the Government Code section 50053. The funds become property of the City when the funds remain unclaimed after two (2) Public Notice filings. Transfer to City Services Fund (Fund 053) The City Services Fund (Fund 053) was established in July 2017 as a means for City departments to continue accepting deposits on behalf of outside parties commonly referred to as pass-thru activities. The activity previously recorded in the Treasurer's Trust (Fund 098) will be recorded in the City Services Fund going forward. Departments are aware that established accounts within the City Services Fund will require documentation identifying the source of deposits (e.g. date, name of the party, and amount), to avoid the accumulation of stale deposits in the future. Active deposits with proper documentation will be transferred from Fund 098 to Fund 053, and Fund 098 will be closed. 65A-2 Approve the Recognition of Revenue and Transfer of Certain Unclaimed Deposits From the City Agency Funds and the Water Enterprise Fund July 2, 2019 Page 13 STRATEGIC PLAN ALIGNMENT Approval of this item allows the City to meet Goal #4 City Financial Stability, Objective #1 (Maintain a Stable, Efficient, and Transparent Financial Environment). FISCAL IMPACT The following unclaimed deposits maintained in the fund(s)laccount(s) noted below will be reclassified utilizing the balance noted on May 31, 2019 as follows: 1) Reclassify the following: i. Account # 09201001-24029 — Contractor Water Deposit - $529,796.45 to the Water Enterprise account # 06017002-57010 — Miscellaneous recoveries. ii. Balances noted in the Therapeutic Recreation Program Deposits (Fund 091) and Treasurer's Trust (Fund 098) to the General Fund account #01102002-57010 - Miscellaneous recoveries. Fund Account Account Description Dept Amount 091 24000 TrustRAgency PRCSA 690.64 098 24001 Senator Feinstein Function PD 527.63 098 24002 Candidate Statement Fee COTC 13,563.61 098 24005 Hazard Remediation-1300 W Edinger PWA 20,000.00 098 24006 Bicycle Locker Deposits PWA 381.25 098 24008 RecreationlParks-Security Deposits PRCSA 74,681.67 098 24010 Volunteer Firefighter Deposits FIRE 3,700.00 098 24014 Building/Planning In -Lieu Fees(AIPP) PBA 95,751.00 098 24016 World Oil1702 N Broaftay PWA 10,034.00 098 24017 Public Works -Water ServicesApplication PWA 14,400.00 098 24020 Public Works -Cash Deposits PWA 165,847.77 098 24038 O.C. City Clerk Meeting COTC 28.73 Total 399.606.30 65A-3 Approve Appropriate Adjustment To Appropriate Certain Deposits in the General Fund and the Water Utility Fund July 2, 2019 Page 4 iii. Balances noted in the Treasurer's Trust Fund (Fund 098) to the City Services (Fund 053) various balance sheet, revenue and/or expenditures accounts: Fund Account Account Description Dept Amount' 098 24000 Trust & Agency PBA 79.734.54 098 24003 Police -Treasury Agency Fund PD 235,052.24 098 24004 Orange County Downtown Coin Revenue FMSA 8,072.54 098 24011 Police Reward Program PD 177,589.57 098 24015 Building/Planning-Cash Bonds PBA 474,415.02 098 24019 Public Works -Street Work Permits PWA 2,533,970.39 098 24041 Bequest of Mary Muth-COSA Homeless Prgm PD 28,201.96 098 24045 PBA-Accelerated Plan Check PBA 223,806.68 098 24046 Medical Marijuana Dispensaries CAO 34,819.04 Balance as of May 31, 2019 and is subject to change due to transactions through June 30, 2019. p"C• ri Kathryn Downs, CPA Executive Director Finance and Management Services Agency Exhibit: 1. Public Notice — Unclaimed Deposits 65A-4 EXHIBIT 1 CALIFORNIA NEWSPAPER SERVICE BUREAU DAILY JOURNAL CORPORATION Mailing Address: 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (213) 2295300 / Fax (213) 229-5481 Visit us @ W W W.LEGALADSTORE.COM Norma Orozco SANTA ANAICITY CLERK 20 CIVIC CENTER PLAZA M-30 SANTA ANA, CA 92701 COPY OF NOTICE Notice Type: GPN GOVT PUBLIC NOTICE Ad Description PUBLIC NOTICE OF UNCLAIMED MONEY HELD BY CITY OF SANTA ANA To the right is a copy of the notice you sent to us for publication in the THE REGISTER. Please read this notice carefully and call us with any corrections. The Proof of Publication will be fled with the County Clerk, if required, and mailed to you after the last date below. Publication dale(s) for this notice Is (are): 04/27/2019 , 05/04/2019 The charge(s) for this order is as follows. An invoice will be sent after the last date of publication. If you prepaid this order In full, you will not receive an Daily Journal Corporation Serving your legal advertising needs throughout California. Call your local BUSINESS JOURNAL, RIVERSIDE DAILY COMMERCE, LOS ANGELES LOS ANGELES DAILY JOURNAL, LOS ANGELES ORANGE COUNTY REPORTER, SANTA ANA SAN FRANCISCO DAILY JOURNAL, SAN FRANCISCO SAN JOSE POST -RECORD, SAN JOSE THE DAILY RECORDER, SACRAMENTO THE DAILY TRANSCRIPT, SAN DIEGO THE INTER -CITY EXPRESS, OAKLAND CNS 3248001 PUBLIC D NNIAOUYIM MONEY CITY OAFASANTA This Is Na public notice that the City of Santa Ana ("City") Is In possession of certain refuntlable monies in connection with the following list noted below in the total amount of approximately M9ditors These longdepoer are 00 longer . file with the City. The above funds were coilected/received by the City of Santa Ana. The funds have been deposited Into the city's designated financial Insfitufion's cecmunt operating ("Unclaimed Monies"). Pursuant to Government Cade section 50050 ettsse ., it Is proposed 111e Unclaimed Monies shall become the property of the City on June 13, 2019. Anyone who has a legal claim to the Unclaimed Monies must file a written claim with the City (951) 7114-0111 claimed, .. 213 229-5300 grounds ( ) the claim (213)229-5300 The City has the (714) 543-2027 demand (800)640.4829 other roof of if (408)287d866 and alish may� (916) 444-2355 reject a cl claim is (619) 232-3486 t le cl ain (510) 272-4747 complaint within y and III II II II II III II I I III I I I I I I I I II II * A 0 0 0 0 0 5 0 4 9 2 2 7�5A-5 serve a copy of the New Treasurer's complaint and Trust Fund (Public summons upon the Works -Cash City Treasurer. A Deposits) - COPY of the $165,847.77 complaint and New Treasurer's summons must be Trust Fund served within thirty (Volunteer (30) days of Firefighter receiving the Clty's Deposits)-$3,700.00 notice the claim was Bulk Water Deposits rejected. Further (Contractor Water information Deposiit)-S529,796.45 regarding the Therapeutic Unclaimed Monies Recreation Program may be obtained Deposits (Trust & from the City Agency)-$690.64 Treasurer, City of V27,5/4/19 Santa Ana, 20 CIVIC CNS-32430011 Center Plaza, Santa THE REGISTER Ana, California 92702. Claims or further information related to Unclaimed Monies may also be submitted by email to accounting(Osonta- ano.or9. DEPOSITED FUNDS WITH THE CITY: 65A-6