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Home My WebLink AboutFS 2012-10-16 Item 2A - Resolution - 2011 Cancellation of Outstanding Claims and Payroll ChecksTO: ISSUE City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Finance Safety Committee Jim Haggerton, Mayor FROM: Peggy McCarthy, Finance Director BY: Vicky Carlsen, Deputy Finance Director DATE: October 9, 2012 SUBJECT: 2012 Reporting of Abandoned Property to the WA State Department of Revenue Unclaimed Property Section Annual write -off of outstanding and unredeemed General Fund and 411 Foster Golf Fund accounts payable claims, payroll, and Municipal Court checks. BACKGROUND Each year, the City of Tukwila holds abandoned or unclaimed property that is owed either to individuals or business vendors that must be reported by November 1st to the Washington State Department of Revenue Unclaimed Property Section. All local governments are required to report all unclaimed property except unclaimed restitution. Normal restitution is submitted to the County Treasurer each month for the Crime Victims Fund. Unclaimed restitution is then reported each year by the County Treasurer to the State Treasurer. The dormancy or abandonment period of all accounts payable claims and payroll checks is one year and Municipal Court checks have an abandonment period of two years. Current Finance Department policy dictates that all abandoned or unclaimed property be reported annually to the Washington State Department of Revenue Unclaimed Property Section through the Council approved resolution process. This is a change from past practice. Previously, the City would report and remit unclaimed property. DISCUSSION The annual proposed resolution totaling $759.70 reflects amounts deemed as abandoned or unclaimed property. For the 2012 unclaimed property report year, reporting (with option to not remit) of abandoned General Fund Accounts Payable claims checks total $613.00; 411 Golf Fund Accounts Payable checks total $125.00; payroll checks total $13.20; and both reporting and remitting of Municipal Court checks total $8.50. To the extent possible, those individual property owners with unclaimed accounts payable claims, payroll, and /or Municipal Court checks of $50.00 or more, have been notified by the City through the "good faith" effort of being served due diligence letters. These individual property owners have either not responded to the due diligence notifications and /or cannot be located in order to claim their property. 1 2 INFORMATIONAL MEMO Page 2 Previously, Finance Department policy dictated that all abandoned or unclaimed property other than restitution be reported and remitted annually to the State through the Council approved resolution process. Abandoned or unclaimed property included gift certificates /cards sold at the golf course. Upon review of the Washington State Unclaimed Property Local Government Guide provided by Department of Revenue Unclaimed Property Section it was discovered that the City is no longer required to report or remit unredeemed gift cards. Additionally, the City may not enforce an expiration date against the customer if the gift card was issued on or after July 1, 2001. The City also has the option to report but NOT remit certain types of unclaimed property including uncashed checks. Unclaimed property not remitted to the State would be booked as a liability and restricted cash on the financial statements. After 5 years, if the funds still have not been claimed, the City may transfer the funds to the general fund. While the liability would remain with the City and records would need to be retained until the property is claimed, there is no requirement to continue to locate the owner. RECOMMENDATION We are recommending that the City stop reporting and remitting unredeemed gift cards. We are also recommending that the City discontinue the practice of remitting unclaimed property, as allowed by law, to the State. The Resolution to cancel outstanding claims and payroll checks is still required; however, language canceling unused gift cards and remitting unclaimed property to the State is not included in the Resolution. The Council is being asked to consider this Resolution at the October 22, 2012 Committee of the Whole Meeting and the Special Meeting Consent Agenda to follow that same evening. ATTACHMENTS Resolution canceling outstanding claims and payroll checks, with attachment Washington State Unclaimed Property Local Government Guide Minutes from the Finance and Safety Committee meeting of October 2, 2012 CAF T A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE CANCELLATION OF OUTSTANDING GENERAL FUND CLAIMS AND PAYROLL CHECKS, 411 FUND FOSTER GOLF COURSE CLAIMS CHECKS, AND MUNICIPAL COURT CHECKS. WHEREAS, the State of Washington, Department o f R ev e nue i Inclaimerd Property Section, for the reporting and remittance year 2012, requires a one -year dormancy period for outstanding claims and payroll checks issued from the General Government Fund and 411 Foster Golf Course Fund and a two -year dormancy period for Municipal Court checks; and WHEREAS, the City of Tukwila Finance Department has made all reasonable attempts to resolve the outstanding, unredeemed General Fund and 411 Fund claims and payroll checks and Municipal Court checks; and WHEREAS, the City Council of the City of Tukwila wishes to cancel all outstanding, unclaimed General Fund and 411 Fund claims and payroll checks issued prior to July 1, 2011, and Municipal Court checks issued prior to July 1, 2010; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: The Tukwila City Council authorizes the cancellation of General Fund and 411 Fund claims and payroll checks and Municipal Court checks as detailed on Attachment A and the 2012 Unclaimed Property Summary Detail Report. W: \word Processing \Resolutions \Cancellation of outstanding claims and checks 10 -8 -12 LJ:bjs Page 1 of 2 3 4 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of 2012. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Verna Seal, Council President APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney W: \Word Processing \Resolutions \Cancellation of outstanding claims and checks 10 -8 -12 LJ:bjs Filed with the City Clerk: Passed by the City Council: Resolution Number: Attachment A: WA State Department of Revenue 2012 Unclaimed Property Reporting, including 2012 Unclaimed Property Summary Detail Report Page 2 of 2 ID NUMBER 000 General Fund Claims Payroll Court Attachment "A" s WA State Department of Revenue 2012 Unclaimed Pro e Re ortin and Remittance DATE Various Various 1354527 07/19/10 Gah Htoo 355824 10/18/10 Mubarak Hassan 356498 12/30/10 EBC Total General Fund Claims Checks (Reported, not Remitted) Various Various Municipal Various Various VENDOR Aggregate- Various (Claims Checks under 550) Aggregate- Various (Payroll Checks under $50) AMOUNT 123.00 160.00 200.00 130.00 $613.00 $13.20 Total General Fund Payroll Checks (Reported, not Remitted) $13.20 Aggregate Various (Court Checks under 550) $8.50 Total Municipal Court Checks (Required Reporting and Remittance) 58.50 General Fund Grand Total All Checks: 5634.70 411 Foster Golf Course Claims 355713 10/04/10 Harold Fowler $125.00 Total 411 Fund Claims Checks (Reported, not Remitted): 5125.00 $0.00 GRAND TOTAL: $759.70 Reporting and remittance summary Total Claims and Payroll Checks reported, but not remitted to the WA State Dept. of Revenue Unclaimed Property Section $751.20 Total Municipal Court Checks required to both be reported and remitted to the WA State Dept. of Revenue Unclaimed Property Section $8.50 Municipal Court Unclaimed Restitution, Check Nos. remitted to County Treasurer Grand Total to be Reported Remitted to WA State DOR/County Treasurer: 0.00 $759.70 5 6 2012 Unclaimed Property Summary Detail Report Treasurer's Checks: No outstanding treasurer's checks to report for 2011 Unclaimed Property filing year. Total Treasurer's Checks: $0.00 I All Code: CK04 0.00 $0.00 Claims Checks - General 000 Fund: Property Owner: Description: Check No. Date #354255 07/06/10 Abdi Fowzi Witness Fee $ 10.00 354264 07/06/10 Victor m. Reyes Gonzales Witness Fee 10.00 354299 07/06/10 Jeromey Kochen Witness Fee 10.00 354376 07/06/10 Scheer & Zehnder LLP Refund - Records request dupl pmt 3.00 354527 07/19/10 Gay Htoo Pmt for Interpreter Services 160.00 355824 10/18/10 Mubarak Hassan Refund - TCC Damage deposit 200.00 356498 12/30/10 EBC Refund - TCC Damage deposit 130.00 356814 02/22/11 Yatafa Taylor Witness Fee 10.00 357199 04/18/11 Amanda Schellhase Witness Fee 10.00 357561 05/26/11 H & R Block Refund •- Bus Lic fee 20.00 357575 05/26/11 Jose Eber Products Refund •- Bus Lic fee 45.00 357611 05/26/11 Shellice Bartholomew Refund - Bus Lic fee 5.00 Total General Fund Claims Checks: Claims Checks - Golf Course 411 Fund: Property Owner: 355713 10/04/10 Harold Fowler Total 411 Fund Claims Checks: Payroll Checks - General 000 Fund: Check No. Date 523458 01/05/11 523827 03/04/11 Total All Claims Checks: Description: Pmt for golf supplies Property Owner: Description: Brian Allen Jacob Doss Total General Fund Payroll Checks: Municipal Court Checks: Property Owner: Check No. Date 13596 09/30/09 33026 11/16/09 33107 04/12/10 33108 04/12/10 33156 06/18/10 Trinadee Mary Bigwolf Jesse Lee Smith Rudy Webb Eldridge Paul Levy Maye Washington Total Municipal Court Checks: 12/31/2010 Payroll 02/28/2011 Payroll Description: Bail refund Bail refund Bail refund Bail refund Bail refund $ 613.00 General Fund All Code: CK06 $ 125.00} 411 Fund $ 125.00 All Code: CK06 $ 738.00 $ 8.96 l All Code: CK06 4.24 i� General Fund $ 13.20 $ 1.50 1.50 2.00 1.50 2.00 $ 8.50 All General Fund All Code: MS16 lej 10/09/2012 10:28 AM CO 2012 Report Year Summary: Total Claims and Payroll Checks reported, but not remitted to the WA State DOR Unclaimed Property Section: Total Municipal Court Checks required to both be reported and remitted to the WA State DOR Unclaimed Property Section: Municipal Court Unclaimed Restitution, Check Nos. remitted to County Treasurer Grand Total to be Reported and Remitted to WA State DOR /County Treasurer: Checks Reporting Detail - All 2012 Unclaimed Property Summary Report Page 2 $ 751.20 $ 8.50 0.00 $ 759.70 ID Number Date Vendor Amount General Fund: Claims Payroll Various Aggregates- Various (under$50) $ 123.00 354527 07/19/10 Gay Htoo Pmt of Interpreter Svcs 160.00 355824 10/18/10 Mubarak Hassan TCC Damage Deposit Refund 200.00 356498 12/30/10 EBC TCC Damage Deposit Refund 130.00 Total Claims $ 613.00 Various Aggregates- Various (under $50) $ 13.20 0.00 Total Payroll $ 13.20 Municipal Various Aggregates- Various (under$50) $ 8.50 Court 0.00 411 Foster Golf Fund: Various Aggregates - Various (under$50) 355713 10/04/10 Harold Fowler Total Municipal Court $ 8.50 Total General Fund - All Pmt for golf supplies Total 411 Foster Golf Fund $ 634.70 $ - 125.00 $ 125.00 lej 10/09/2012 10:28 AM Washington State UNCLAIMEDPROPERTY All |O[a| governments consisdngofdt�es, towns, coundes. munidlpal and quasi'munidlpal corporabonsho|dingundUnned prop rtymust report �tbvNovember l each year Local govemmerts should report all unc|aimedproperty except unc|aimednestitution and excess foreclosure proceeds, Local governnnentsnnsykeepthe funds for some types ofreported property Most property held bvlocal governmentsispnesumedabandoned after two years, The exceptions are payro|| checks and uti|itydeposits or refunds, These are presumed abandoned after one year: Xou musc repmrcand remiz Unc|a�med court nnnonies Trust accounts UnrefundedutilR deposhs Unc|a�med debt service paynnents Unredeemed bonds and coupons f�u musc reporc 6uc may rec in fun�s for� Warrants Uncashed checks Property tax cwerpayments or refunds Abandoned pub|�ctransport��ion fare cards or passes NOTE: 2DOG legislation namoved the requirement to report excess proceeds from property and irrigation district tax foreclosures. me�e�m�=.. mm�...m� L�a �v mmer� remit �nds to the []epartment of Revenuethat could othervv�se be reta�ned, |ndemnit"ledforremhftec property Not nesponsible for reknds I.tt|e-to-no research orcontac AMBIM |n the 2OO.5 s|afive session, publk transpor��on�recardsand pas�s were inc �n the prope�ytypes that nay be retained Fane card means any pass or instrument. and the value tnepnesents purchased for pub|�c transport��ion fac�l�ties or services, Fare card does not inc|ude''giftcard''or''giftcertit"IczLe.'' A publktransportation aothority that holds funds nepnesentingva|ue on abandonedfarecards maynetain the f�nds unti| the owner notiFiesthe authority and estab|�shes ovvnershp Pubktransportation authority' means a a ne�iona| transit authoritX apubkmass system, ora city transportation aothority Und�medn�aturedbondsandre|ated intenest or coupon payments are considenedabandoned after two years, Each unredeemedcoupon or intenest paymentIsreported two yearsafter Itbecomes payab|e even If the bond has not matuned Ma�l��vmmer�use�e services of the stalLe's Fiscal agent which is the Bank ofNevvYbrk /B[)NYl. for payiii debt service on bonds they issue, Unr bonds |ntenest/Coupons Loca|��vernmenr�usin�B{��hav� owoo�cionsxvhen macured 6on�s and/orcouponsareunre�eeme�� Option One: [)ne year after the last. legal payment date on maturedbonds, local governments may send avvritten requesttothe Fiscal agent: toreLurn any nemainingunnedeemed bonds and coupons According to BONY's contract vvhƒ the state, the loc�governmentmay flort:the earningsthzl: accrue during the one 'year /ormo�) befbne the local government nequeststhe funds7woyears after the last legal p m� aymentdateontheturedbond the local government needs to neport arid nemlt any undaimedmatuned bonds arid all nemainingunneported cou pons or intenestpaymeits, C}ptiomTwo: Loca|governments do not have to nequestthe unnedeemed bonds or coupons firomtheFiscal agent.Ybu can have the Fiscal agent report and remitthe unnedeemedpropertydinect|ytothe state on your be' The unredeemed propertyIspresumed abandoned arid becomes neport able after thneeyears O ther Fiscal n��mm� mm��~~mm��mm�� Trustees While uncommon, local governments ued bonds usin�other may have Iss Fiscal agenlLs.orreceived unredeemed bond monies that vvenenever neported Th�s property I,; reportab|e aft er two years Unclaimed Restitution IDonotreportundarlmedrestitution as undaimed propefty In the p�t.this proli was neport able asundarlmed property The(�ountyTreasuner is nequIred to ne port arid send the fundstothe State 7reasuner for the C rime VIctims Fund each month Restitution Claims P rocess |fyou havene arid pald nestitotion funds to us in the past, You rnv dir returningovvners toUndarlmedPro for reknd, Forfunds sent to the StateTreasuner for the CrimeVictimsFund. you Ml need tonecover the fu ids fil omthe Administratorof the Courts (AO[] and nepay the owl erdirect|y Since any undaimed nestitotion should not reach two yeas abandonment befone you send Ittothe Crime VictimsFund.do not neportundaimed nestitutionasundaimedprope�y/See Cancelled W Unpnesentedvvarr are cancelled bvstatute after oneyear |f the amount Is stiU owed tothe ovvneccanceUation cJavvarnant or checkdoes not preventabandonme it, Theunder|ylii UabiUty due the ovvner�snepo�a�e ��oceon �ecor�san� R��n�c After Five years, alocal government: may transfer neported and retained funds to hsgenera| fund,Hovvever, ir ids must always beavailab|e forir Recordsfbrretanedprolimay be archivecl after Five years. Clalmants ofretaned pro are ��rr the local govrnment irs RCWs r I elated to Unclaimed Property jut Ut E U Unclaimed Property [)iapoaidonvvh�nv4cdm c�o�ornoc�oun6 Lomc�n6�oun6�rop�r�y Refer to RCVV 632 1 0nc|�im�6�rop��y in hon6a ofcicy ��|ic� 0nc|�im�6�rop��y in hon6a ofs�z�� ozroi Refer to RCW 63,35 0nc|�im�6�rop��y in hon6a ofah�r�� Refer to RCVV 63A 0 0nc|�im�6 inmuz� ��raon��rop�r�y Quest 1- M gie Ane w.. r Why do local governments remit some property types and only report other property types? In �99O. the Lens|atuneenabled �ocal governmentstokeepthe f�nds�orundaimedpropertyvvhen apaymentbv check or warrant remained uncashed, Since the names are neportedtoUndaimed PropertXovvners maysti�� search one central ti for abandoned property The�oca|government mayusethefundsunti�aperson _Trust funds, bond monies.deposhs. cred�t balances, arid otherpro that. has not been issued fbrrefund bv the �ooal governmentisnemhted vvith the undaimedpro \«/hat is the best option for dealing with bond momies-- take delivery and report, orlet BONY retain? Thene are obv�ous advantages to allowing thesbste's Fisca|agent BONY toreport arid remitthe undaimed bonds arid couti The�oca|�overnmentisne|ieved from the administirative task of neportJng arid nem�ttJng the funds to the state, AdditionaHXBONY can access the histohoal records on the bonds to answer any da�rnant questions, \«/e. have agolf course and the pro shop issues gNtoertifioatem. Do we need to report the unredeemed giiftoertifioatem? What if we report and remit the property and then discover vve paid the owner? Ybu car) submit:a(Certit"icaLe ofHo|der (C01--d) and provide docun�entaton the ovvnervvas paid arid vveMH issue arefundtoyou, Let us know mmediate|ythat. you have p aid the owner sovveMH not paythe owl ertwice, Unreceernec gift sisc priorto |u�y are required tobereported arid rem�tted, Theon�exce��on vvou�d be certit"IcaLesissuedforamaLeur rizes�na�o�ftournamentThe proshop may not. expinethe winnings gift certit"icates. G1t certit"IcaLes issued |uIy 200 and �aterdo not need tobereportedbotyoumaynot enfbrcean ex date against the cus��mecand you may not char�eanykindof�nactivity or service fee mstthe unused balance, in Phone. 360) 705-6706 �Press "O` for assistance) T6111 Free: 1 -800-435-2429 (Washington State only) Fax: (360) 586-2 163 E-maflL ucp@dor.wa.gov MaflL WasNngton State Department of Revenue UndWmed Property Section PO Box 47489 Olymp�a,WA 98504-7489 l tax assistance or to reqUest this dOCL, in an alternate f6ri-nat, visit F)ttp://dorwa,gc)v or call 1 -800-647-7706, leletype V I Y) Users may call (360) 705 -67l8. Depawywnl ()i r e i I ce v e n u e Pe —i ss:(.)-) s g-cmtec to (.)t )e state g(.) to jse cmc —ioc t') s —mte ci to tl)e: �m't c,j ci )ee, .is civvs. is ccit o o cmy m't t —my )(.)t )e e pro C.. ,jcec t'cms—i ttec cmy o—i o -)v smx —iecms o' ci e e t ),j of profit-making activities R-epai-ec', by the Taxpayei- Sei-vices Division Tt� -)tec on 'ecy m,)e 13K0020 09 1 68H- 86 �Vtx, 68H-� x Od kwadoid PawlEi3tin 12 �-O JqfjI,,,sstx, Cit o Tulzwila Finance and Safety Committee FINANCE AND SAFETY COMMITTEE Meeting Minutes October 2, 2012 5:15p.m.; Conference Room 113 PRESENT Councilmembers: De'Sean Quinn, Chair; Dennis Robertson and Kate Kruller Staff: David Cline, Peggy McCarthy, Vicky Carlsen, Chris Flores, Bob Giberson, Bob Benedicto, Gail Labanara and Kimberly Matej CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:15 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Resolution: Annual Cancellation of Accounts Receivable (Past Due and Returned Checks) Staff is seeking Council approval of an annual resolution to cancel (write -off) account receivables deemed uncollectible. This year's annual account receivable write -off totals 58,777.89. Staff reviewed the process by which Accounts Receivable determines items as uncollectible. This year's write -offs are lower than last year's which can be attributed to: less accidents caused by unknown or uninsured motorists, and a change to the Tukwila Municipal Code which withholds business licenses and /or renewals until such debts are paid to the City. The City is also utilizing a different debt collection agency. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 15 CONSENT AGENDA. B. Resolution: Annual Cancellation of Outstanding Claims and Unredeemed Property At staff request, this item has been moved to the October 16, 2012, Finance Safety Committee meeting. New information has become available that may affect the processing of this annual cancellation. RETURN TO OCTOBER 16 FINANCE SAFETY COMMITTEE MEETING. C. Proposed Facilities Plan Staff is seeking Committee confirmation of the need for a Facilities Plan for the City, as well as input on the proposed Facilities Plan included in the Committee agenda packet. Staff utilized a PowerPoint presentation to provide the Committee with an overview and summary of a proposed Facilities Plan, which outlines options for the replacement and /or retrofit of City buildings. After the presentation, and a brief discussion, the Committee confirmed that there is a need for the City to have a Facilities Plan. Additional comments from the Committee Members are bulleted below: Committee Member Robertson: Believes that a Facilities Plan is the right thing to do; however, it appears to be more logical to wait for the conclusion of the Strategic Plan to ensure the Facilities Plan is supported by the Strategic Plan outcomes. Has some inquiries about prioritization, but relates prioritization back to the conclusion of the Strategic Plan. Committee Member Kruller: Believes there may be some timing concerns in consideration of the current economy. Requested benchmarking to identify what similar and /or surrounding jurisdictions are doing in regard to facilities. 13