Item Coversheet
 STAFF REPORT
For Meeting of December 10, 2018
MAYOR AND MEMBERS OF THE CITY COUNCIL
Agenda Item # 9.B.

TITLE:  Ordinance No. 2270-Reqires Finders of Lost Property to be Notified of Rights Under ORS 98.005 
Subject

Surrender of Found Property to the City

Summary and Background

The police department has expressed a concern that the current city policy about found property may create an unintended consequence of discouraging people from acting as good Samaritans. Under the current policy, a person who turns in property to the police department surrenders or forfeits “any claim of right, title, or interest therein” which the finder may have.

Hermiston Code of Ordinances (HCO), Section 33.02 provides:  

"Any person who surrenders found property to the custody of any officer or employee of the city thereby surrenders and waives any claim of right, title, or interest therein which might otherwise be asserted."

While, ORS 98.005 provides:  

"(1) If any person finds money or goods valued at $250 or more, and if the owner of the money or goods is unknown, such person, within 10 days after the date of the finding, shall give notice of the finding in writing to the county clerk of the county in which the money or goods was found. Within 20 days after the date of the finding, the finder of the money or goods shall cause to be published in a newspaper of general circulation in the county a notice of the finding once each week for two consecutive weeks. Each such notice shall state the general description of the money or goods found, the name and address of the finder and final date before which such goods may be claimed.”

“(2) If no person appears and establishes ownership of the money or goods prior to the expiration of three months after the date of the notice to the county clerk under subsection (1) of this section, the finder shall be the owner of the money or goods.”

When HCO 33.02 is compared with ORS 98.005 we see a difference between how the finder of lost property is treated. Under ORS 98.005: (i) When the owner of lost property is unknown and the lost property is worth less than $250, the finder becomes the owner of the lost property because the statute does not require him or her to give any  notice.  (ii) When the owner of lost property is unknown and the lost property is worth more than $250, the finder becomes the owner of the lost property if he or she meets certain notice requirements.

Under HCO 33.02, if the finder notifies the city of finding lost property and turns the property over to the city, the finder has surrendered the lost property to the city. Although, under ORS 98.005 the finder has a superior right of possession to the lost property than the city, but the finder loses that right when the finder turns in the lost property to the city.

Thus, an unintended consequence is created. For example, if someone finds less than $250 and turns it into the police department to facilitate locating the owner and no owner is found, the city keeps the $250. Instead, if that person just kept the money, it would have been his or hers and the opportunity to find the owner would have been lost.

The purpose of the amendment is to encourage finders to notify the police department of their finds and encourage them turn in the lost property to the department without losing their right to claim ownership if the owner is not found.

It creates a balance of knowledge between the parties by requiring the city to advise finders in writing of their rights under ORS 98.005. The finders can leave the property with the police department and if the department is unable to find the owner, the property will be returned to the finder. Or, if the finder chooses, he or she can waive their ORS 98.005 rights and of surrender the property to the city in writing.

A finder may choose to waive and surrender the property to the city, especially  where the finder is required to publish the notice required by ORS 98.005. If a finder surrenders the found property to the police department, the department can follow the procedure in ORS 98.245 or HCO 33.05 regarding disposition of unclaimed property. If the property is not claimed after following the ORS 98.245 procedure, title to the property passes to the City.


Tie-In to Council Goals:

While this ordinance does not tie-in directly to the 2018 Council Goals, encouraging the return of lost property to an owner is a worthy goal.

Fiscal Information

The fiscal impact of Ordinance 2270 should be neutral.

Alternatives and Recommendation
Alternatives

The City Council may choose to adopt the ordinance or not.

Recommendation

The City Attorney recommends adoption of the ordinance to ensure an orderly and fair process for handling found property.

Requested Action/Motion

Motion to adopt Ordinance No 2270.

Submitted By:  Gary Luisi
ATTACHMENTS:
DescriptionType
Ordinance No. 2270Ordinance