Title
Supplemental Agreement with International Rescue Committee, Inc. for the Financial Empowerment Center
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FileID
File ID: 2024-01178
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Location
Location: Citywide
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Recommendation
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute Supplemental Agreement No. 6 to City Agreement No. PRC000666 with International Rescue Committee, Inc. (IRC), for an amount not-to-exceed $450,000 for a new total not-to-exceed agreement amount of $2,109,214.
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Contact
Contact: Amy Williamson, Financial Empowerment Manager, (916) 808-1046, awilliamson@cityofsacramento.org; Leslie Fritzsche, Economic Development Investment Manager, (916) 808-1540, lfritzsche@cityofsacramento.org; Lynette Hall, Community Engagement Manager, (916) 808-1955, lhall@cityofsacramento.org; City Manager’s Office of Innovation and Economic Development
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Presenter
Presenter: None
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Attachments
Attachments:
1-Description/Analysis
2-Supplemental Agreement
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IssueDetail
Description/Analysis
Issue Detail: The City of Sacramento (City) Financial Empowerment Center (FEC) is part of a national network of 30+ active FECs through a Bloomberg-funded initiative known as the Cities for Financial Empowerment Fund (CFE Fund). The FEC provides free, professional, one-on-one financial coaching for local residents aged 18 and over. Key metrics for FEC clients are safe/affordable bank and credit union account access, establishing/improving credit, reducing debt, and building savings.
Cities are required to contract with a lead community-based organization for FEC operations. Through an RFP process in early 2019, the City selected the Sacramento office of IRC as its contract partner. As also required by the CFE Fund, in September 2019 the City hired an FEC Manager in the Office of Innovation and Economic Development.
In December 2019, IRC’s contract for FEC operations began, and the City’s FEC Manager worked with IRC to hire, train, and certify the financial coaching staff. The FEC launched its work at the beginning of the coronavirus disease 2019 (COVID-19) pandemic - a soft launch with selected community partners in early-April 2020, and a public launch in late-May 2020. The FEC has been operating continuously since then, and the team has been building strong integrations with several community-based partner organizations and with City-based initiatives, especially relating to housing stability, workforce, and small business.
CFE Fund’s FEC model is to provide matching financial and substantial technical assistance support to its partner cities for approximately the first two years of FEC operations, which in the City’s case ended in the spring of 2022. The Council’s approval of the FY23 FEC budget ask indicated its interest in continuing the work of the FEC past this initial phase, in keeping with CFE Fund’s sustainability model. The request outlined in this report is to amend the IRC contract until June 30, 2025, for that continued purpose. Additional funding beyond FY25 will be evaluated and considered as part of future budget actions. A new and continuing provision that began last year for FY24 requires IRC to contribute 10 percent of the project budget, as outlined in the attached agreement.
Policy Considerations: The FEC initiative is consistent with the 2019 Inclusive Economic Development Framework goal of prioritizing investments that strengthen business, people, and place capacity to stimulate economic growth and quality of life for all residents.
Economic Impacts: Ensuring economic opportunities exist for all can result in greater economic growth for the residents and businesses of Sacramento.
Environmental Considerations:
California Environmental Quality Act (CEQA): The recommendation in this report is not a project under the California Environmental Quality Act (CEQA) because it relates to government fiscal activities that do not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Section 15378(b)(4) of the CEQA Guidelines (Cal. Code Regs., tit. 14, §15000 et seq.), and is, therefore, not subject to CEQA pursuant to Section 15060(c)(3) of the CEQA Guidelines.
Sustainability: None.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: Through multiple actions, the City Council has made clear its commitment to prioritize and implement strategies, programs, and projects that increase inclusive community and economic growth capacities throughout our City. Maintaining its FEC is one way the City can help its residents improve their financial stability and strengthen their economic future.
As of May 31, 2024, the FEC has served 1,331 clients from local households with an average income of $40,000. The client base is representative of the local resident population around age, race, and ethnicity. Clients have achieved 1,025 outcomes, the most common being accessing public support programs, opening safe and affordable bank or credit union accounts, increasing savings, reducing non-mortgage debt, reducing delinquent accounts, increasing credit score, and establishing credit. Clients have also achieved 1,547 milestones, which are interim steps toward personal outcome goals. The most common milestones are creating a budget, reviewing credit reports, filing past-due taxes, and opening new lines of credit. Collectively, clients with savings goals have accumulated $645,582 and clients with debt-reduction goals have cleared $1,373,442 in obligations. The FEC team’s goal for FY25 is to significantly increase the number of clients served to a total of 1,200 for the calendar year.
IRC has been the contractor implementing this work and amending their contract will provide them the resources to continue supporting the team of four FEC coaches and one manager to do the work described above.
Financial Considerations: The current contract with IRC expires on June 30, 2024, and additional funding is needed to continue the work until June 30, 2025. The not-to-exceed amount for Supplemental Agreement No. 6 to City Agreement PRC000666 with the International Rescue Committee, Inc. through June 30, 2025, is $450,000 for a new total contract not to exceed amount of $2,109,214.
As part of the FY2024/25 adopted budget, $450,000 in new funding was allocated to the Financial Empowerment Center Multi-Year Operating Project (I021820000). Sufficient funding is available to support this supplement.
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