ITEM 8-A

City Council Meeting  4-26-94           Santa Monica, California

                               STAFF REPORT

TO:       Mayor and City Council

FROM:     City Attorney

SUBJECT:  AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA
          MONICA AMENDING SANTA MONICA MUNICIPAL CODE SECTIONS
          2.32.210 to 2.32.260 REGARDING DISPOSITION OF UNCLAIMED
          PROPERTY

     The Santa Monica Municipal Code currently provides a
procedure for the disposition of unclaimed property by the Chief
of Police.  The current law provides procedures and time periods
which exceed the requirements of state law.  The purpose of this
proposed ordinance is to conform the City's requirements to those
imposed by state law.  

     A.  Summary of Proposed Ordinance.

     This proposed ordinance would amend the Santa Monica
Municipal Code to make the procedures and time periods consistent
with state law in the following manner:

               (1) Section 2.32.210 would permit
          unclaimed property to be placed in the
          custody of the Police Department and provides
          that the owner of the property or money has
          90 days, rather than 120 days, to provide
          proof of ownership.

               (2) Section 2.32.220 sets forth the
          procedures to follow if the true owner does
          not claim the property.  If the value of
          property is more than $250.00, the Police
          Department shall: 

                    (a)  Wait 90 days for the true owner to claim
                         the property; 

                    (b)  If no owner appears, publish a notice
                         once in a newspaper of general
                         circulation and if the owner does not
                         appear in the seven (7) days after
                         publication, ownership vests in the
                         finder upon payment of the cost of
                         publication;  

                    (c)  If a public employee is the finder of
                         the property, it   shall be sold at a
                         public auction.   

          If the value of the property is less than
          $250.00, the Police Department shall:
     
                    (a)  Wait 90 days for the true owner to claim
                         the property;
                    (b)  If no owner claims the property within
                         the 90 days, title vests in the finder
                         of the property; 
                    (c)  If a public employee is the finder of
                         the property, it   shall be sold at a
                         public auction.   

               Property which remains unclaimed is to
          be sold at public auction to the highest
          bidder and if no bid is received, the City
          can destroy or otherwise dispose of the
          property.  If any property subject to auction
          is needed by the City, it may be retained by
          the City and not put up to bid.

               (3)  Section 2.32.230 provides that
          money which is held by the Police Department
          or a combination of the Transportation
          Department and the Police Department for six
          months is to be turned over to the Finance
          Director for deposit into the general fund.

               (4)  Section 2.32.240 provides
          procedures for receipt of lost money or
          property by the Police Department.

               (5)  Section 2.32.250 provides
          procedures for receipt of lost money or
          property by the Transportation Department.

               (6)  Section 2.32.260 provides for a
          summary procedure if the property is in
          danger of perishing; losing the greater part
          of its value; or if the lawful charges amount
          to two-thirds of the value of the property.  

     B.  Changes From Current Municipal Code.

     The main changes to the Municipal Code are shortening the
time period for holding property from 120 days to 90 days;
elimination of the requirement of putting property up for public
auction twice before it can be destroyed or otherwise disposed of
by the City; and elimination of requirements of publishing a
notice after the 90 day period if the property is less than
$250.00 in value.  The ordinance also updates the code so that it
refers accurately to the departments which have duties under
these provisions.  

                              RECOMMENDATION

          It is respectfully recommended that the accompanying
ordinance be adopted.

PREPARED BY:   Marsha Jones Moutrie, City Attorney
               Martin T. Tachiki, Chief Deputy City Attorney


                   ORDINANCE NUMBER ______(CCS) 
                     (City Council Series)

              AN ORDINANCE OF THE CITY COUNCIL OF THE
            CITY OF SANTA MONICA AMENDING SANTA MONICA 
           MUNICIPAL CODE SECTIONS 2.32.210 to 2.32.260 
            REGARDING DISPOSITION OF UNCLAIMED PROPERTY

     THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:

     SECTION 1.  Santa Monica Municipal Code Section 2.32.210 is
amended to read as follows:

               2.32.210  Custody of Chief of the Police
          Department.
               The person to whom such money or
          property is delivered shall cause the same to
          be delivered to the custody of the Chief of
          Police Department, which who shall care for
          and protect all such money or property, or
          any other lost money or property delivered
          into the custody of the Police Department,
          coming into its his possession. Said Chief
          shall restore such property or money to its
          If the true owner or the one entitled to
          possession of the money or property appears
          within 90 days of receipt of the money or
          property by the Police Department, the Police
          Department shall restore such property or
          money upon proof of ownership or right to
          possession satisfactory to them him and upon
          the payment of all necessary costs incurred
          in the care and protection of such property.
           
               SECTION 2.  Santa Monica Municipal Code Section
2.32.220
is amended to read as follows:

          2.32.220  Notice of sale.
         
          Should any such property, other than
         money, remain unclaimed by its true owner,
         the Chief of Police Department shall follow
         the procedures set forth below: cause the
         same to be sold at public auction to the
         highest bidder, provided that: 
          (1)  If the reported value of the
         property is two hundred fifty dollars
         ($250.00) or more and no owner appears and
         proves his or her ownership of the property
         within 90 days, the Police Department shall
         cause notice of the property to be published
         at least once in a newspaper of general
         circulation in the City.  If, after seven
         days following the first publication of the
         notice, no owner appears and proves his or
         her ownership of the property and the person
         who found or saved the property pays the cost
         of the publication, the title shall vest in
         the person who found or saved the property
         unless the property was found in the course
         of employment by an employee of a public
         agency, in which case the property shall be
         sold at public auction to the highest bidder. 
         Title to the property shall not vest in the
         person who found or saved the property or in
         the successful bidder at the public auction
         unless payment of all necessary costs
         incurred in the care and protection of such
         property, including the cost of publication,
         is first paid to the City of Santa Monica.  
          (2)  If the reported value of the
         property is less than two hundred fifty
         dollars ($250.00) and no owner appears and
         proves his or her ownership of the property
         within 90 days, the title shall vest in the
         person who found or saved the property unless
         the property was found in the course of
         employment by an employee of a public agency,
         in which case the property shall be sold at
         public auction to the highest bidder.
          (3)  If personal property is not claimed
         under subsections (1) or (2) above, the
         Police Department shall cause the personal
         property to be sold at public auction to the
         highest bidder.  The Police Department shall
         have a notice of sale given at least five (5)
         days before the public auction by publication
         once in a newspaper of general circulation
         published in the City.  The notice shall
         contain a statement of the time and place
         fixed for such auction, together with a
         schedule of property to be offered for sale.
         Immediately after the completion of any such
         sale, the Police Department shall report to
         the Finance Director the necessary expenses
         of such sale actually incurred and a
         statement of the proceeds thereof and shall
         forthwith pay to the Finance Director for
         deposit in the general fund, the proceeds
         remaining after the payment of the expenses
         actually incurred.
          (4)  Any property remaining unsold after
         being offered at such public auction may be
         destroyed or otherwise disposed of by the
         City.      (5) If the City determines that any
         property which could be put up for public
         auction is needed for a public use, such
         property may be retained by the City and need
         not be sold.
          1. Such unclaimed property, except
         unclaimed bicycles, shall be held in the
         custody of the Chief of Police for a period
         of at least four months  prior to such sale;
         and
          2. That unclaimed bicycles shall be held
         in the custody of the Chief of Police for a
         period of at least three months prior to such
         sale.
          Notice of such sale shall be published
         two days in a newspaper published daily and
         of a general circulation in the city; the
         first publication shall be at least five days
         prior to the time fixed for said auction.
         Said notice shall contain a statement of the
         time and place fixed for such auction,
         together with a schedule of property to be
         offered for sale. Immediately after the
         completion of any such sale, said Chief of
         Police shall report to the City Controller
         the necessary expenses of such sale actually
         incurred and a statement of the proceeds
         thereof and shall forthwith pay to the City
         Controller for deposit in the general fund,
         the proceeds remaining after the payment of
         the expenses actually incurred. If there be
         no bids for any such property offered for
         sale at such auction, the property again
         shall be offered for sale together with other
         such unclaimed property at the next auction
         sale. If such property is not sold at the
         second auction sale, it shall be turned over
         to the City Manager who shall make such
         disposition thereof in the public interest as
         he shall deem fit.
         
          SECTION 3.  Santa Monica Municipal Code Section
2.32.230 is
amended to read as follows:
               2.32.230  Finance DirectorCity
          Controller.
               Any such money in the custody of the
          Chief of Police Department or the
          Transportation Department under Section
          2.32.250, which remains unclaimed by its true
          owner for a period of six months from the
          date of finding shall be turned over to the
          Finance Director City Controller for deposit
          in the general fund.
          
               SECTION 4.  Santa Monica Municipal Code Section
2.32.240 is
 amended to read as follows:
     2.32.240  Receipt.
               Whenever any lost money or property is
          delivered to the custody of the Chief of
          Police Department by other than a person
          mentioned in Section 2.32.200 hereof, a
          receipt for such money or property shall be
          given to such person. Said receipt shall
          state upon what conditions the Police
          Department will receive such money or
          property and that such property may be
          disposed of in accordance with the provisions
          of this Chapter. Any such property, bicycle
          or money which remains in the custody of the
          Chief of Police Department, unclaimed by its
          true owner, for the period provided for such
          item in Section 2.32.220 or Section 2.32.230
          shall be disposed of in the manner provided
          by such Sections. In no event, however, shall
          such a sale of property or deposit of money
          in the general fund be made unless the person
          who delivered such money or property into the
          custody of the Chief Police Department, if
          known, shall have been given at least ten
          five days written notice that such money is
          to be turned over to the City Controller
          Finance Director for deposit in the general
          fund or that such property is to be put up
          for sale at public auction, and if within
          said ten five day period said person shall
          claim such money or property and establish
          that he or she delivered the same into the
          custody of said Chief of Police Department,
          the same shall be returned to him or her. 
          
               SECTION 5.  Santa Monica Municipal Code Section
2.32.250 is
amended to read as follows:
               2.32.250  Buses.
               Not withstanding anything to the
          contrary contained in Section 2.32.200
          hereof, any lost money or property found in
          or upon any bus belonging to the City or in
          or upon any building occupied by the
          Transportation Department of the City shall
          be delivered into the custody of the head of
          the Transportation Department of the City,
          which person shall care for and protect all
          such money or property coming into his or her
          possession. Said department head shall
          restore such property or money to its true
          owner or the one entitled to possession upon
          proof of ownership or right to possession
          satisfactory to said department head and upon
          the payment of all necessary costs incurred
          in the care and protection of such property.
          Should any such property or money be not
          restored within a period of ninety days from
          the date of finding, said department head
          shall cause such property or money to be
          delivered into the custody of the said Chief
          of Police Department, which shall follow the
          procedures set forth at Sections 2.32.220 and
          2.32.240 for the sale of personal property
          or, if money remains unclaimed for an
          additional 90 days, the deposit of money into
          the general fund pursuant to Section
          2.32.230. who shall hold and dispose of such
          property or money as provided for in this
          Chapter. 
          
               SECTION 6. Santa Monica Municipal Code Section
2.32.260 is
amended to read as follows:
               2.32.260  Summary sale.
               Should any such property mentioned in
          Sections 2.32.200 and 2.32.210, while in 
          hereof coming into the custody of the Chief
          of Police Department be in danger of
          perishing or losing the greater part of its
          value or should the lawful charges as a
          finder of such property amount to two-thirds
          of its value, the same may be sold
          immediately by said Chief the Police
          Department in the same manner as the sale of
          a thing pledged and the provisions of Section
          2.32.220 hereof shall not apply to the sale
          thereof. 
          
               SECTION 7.  Any provision of the Santa Monica
Municipal Code
or appendices thereto inconsistent with the provisions of this
Ordinance, to the extent of such inconsistencies and no further,
are hereby repealed or modified to that extent necessary to
effect the provisions of this Ordinance.

     SECTION 8.  If any section, subsection, sentence, clause, or
phrase of this Ordinance is for any reason held to be invalid or
unconstitutional by a decision of any court of any competent
jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The City Council hereby
declares that it would have passed this Ordinance, and each and
every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether
any portion of the Ordinance would be subsequently declared
invalid or unconstitutional.

     SECTION 9.  The Mayor shall sign and the City Clerk shall
attest to the passage of this Ordinance.  The City Clerk shall
cause the same to be published once in the official newspaper
within 15 days after its adoption.  This Ordinance shall become
effective after 30 days from its adoption.

APPROVED AS TO FORM:

____________________________
MARSHA JONES MOUTRIE
City Attorney