For City Council Meeting May 28, 2024
TO: Honorable Mayor and City Council
FROM: G. Michael Milhiser, Interim City Manager
AUTHOR: Mark P. Kling, Chief of Police
Title
Request City Council to 1) Adopt Budget Resolution No. 8239, Amending the 2023-2024 Fiscal Year Budget, 2) Recognizing Revenue from Monies not Claimed Within 60 Days to Become Property of the City; 3) and Appropriating Budget in the Amount of $949,432.23 for Police Department’s Information Technology Infrastructure.
(ACTION)
Body
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt Budget Resolution No. 8239, amending the 2023-2024 Fiscal Year Budget,
2. Recognize revenue from monies not claimed within 60 days to become property of the city,
3. Appropriate budget in the amount of $949,432.23 for Police Department’s information technology infrastructure.
BACKGROUND
Section 2.54 of the Rialto Municipal Code authorizes disposal of unclaimed property, including unclaimed money, by the Chief of Police. After following all the applicable Federal, State, and local laws, the property may then be transferred to the Department of Administrative Services by City Council resolution for distribution.
Annually the Property and Evidence Bureau conducts an audit of the Property and Evidence account to identify money ready for distribution. Staff identified unclaimed money from January of 1993 through July of 2019.
ANALYSIS/DISCUSSION
Beginning in October of 2023, letters were sent to the last known address of claimants to notify them of the unclaimed property. Of the letters sent out only two (2) responses were received.
On January 18, 2024, the Property and Evidence Bureau completed an audit identifying unclaimed money that is ready for publishing. This process of providing notice regarding long standing unclaimed money is required by State Law and was recommended by the City’s independent auditors in 2019.
Section 50055 of the California Government Code allows for unclaimed money less than fifteen (15) dollars, or any dollar amount where an owner cannot be identified, which remain unclaimed for a period of one (1) year to be transferred from the funds which the money was originally deposited by the City to the City Fund without publication of a notice in a newspaper.
Section 50053 of the California Government Code allows for unclaimed money held over three (3) years in a special fund to be transferred to the general fund after notice is published and monies are not claimed, or no verified complaint is filed and served.
As required by section 50050 of the California Government Code, notice was published for two consecutive weeks in the San Bernardino Sun on February 5, 2024, through February 18, 2024. In the notice of publication all claims were to be received by April 10, 2024, a date not less than forty-five (45) days after the first publication of the notice. All claims received by the date were verified and processed as per sections 50051 and 50052 of the California Government Code which describes the publication requirements and the claiming process by a party of interest.
Money on the attached list remain outstanding and unclaimed and meet the criteria of sections 50053 and 50055 of the California Government Code which allows the legislative body to transfer these funds from their respective funds to the City.
Any monies not claimed within 60 days after publication of the first notice, will become property of the City and transferred to the Miscellaneous Revenue Account in the General Fund. It is staff’s recommendation approve this transaction and appropriate funds for expenditures associated with the new police department building project.
ENVIRONMENTAL IMPACT
The proposed action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
The City of Rialto has outlined key goals and objects relating to public safety transaction is consistent with meeting this objective.
Goal 5-8: Provide effective and comprehensive policing services that meet the safety needs of Rialto.
LEGAL REVIEW
The City Attorney's Office has reviewed the staff report and resolution and approved it as to form.
FINANCIAL IMPACT
Operating Budget Impact
Currently funding of $949,432.23 is in the Evidence Monies Account No. 28300000 23900. Staff will process a journal voucher transferring $949,432.23 to the General Fund Police Revenue Account No. 10106150 47799 for unclaimed property and appropriate budget of $949,432.23 in the Police Department Information Technology Capital Account No. 33006151 53001 PDSTN 33, project PDSTN. Funding of $949,432.23 will then be available for expenditures associated the police department’s information technology infrastructure.
Capital Improvement Budget Impact
This staff report will impact the Capital Improvement Budget by appropriating budget in the Information Capital Account No. 33006151 53001, project PDSTN.
Licensing
This staff report does not require a City of Rialto Business License.