Recommendation to Execute an
Agreement with Usio Inc. to Serve as the
Financial Partner for Rise Up Alameda
(Guaranteed Income Pilot Program)
Presentation to the Alameda City Council
July 5, 2023
Tonight I will cover:
• Background on City Council decisions regarding guaranteed income pilot program
• Usio Inc. agreement
Agenda
• May 17, 2022 City Council approved guaranteed basic income pilot program. • $1,000 per month for 150 low income households for two years • $4.6 million of ARPA Funds
• City staff to identify program partners and define roles and responsibilities • City staff to return to City Council for approval of contracts for project partners
• November 15, 2022 City Council approved contracts with two program partners:
• Operation Dignity to serve as Implementing Partner
• Abt Associates to serve as Research Partner
Background
• Benefits for Recipients
• Economic stability for low-income residents
• Increased self-determination and agency; creates capacity for goal setting and empowers people to improve their circumstances
• Removes material barriers to full time employment and increases expenditure on education and training
• Enhances physical and mental well-being and reduces stress and anxiety. • Broader benefits for enhancing healthy communities
• Positive spillover to recipient households and networks • Economic benefits to local businesses and Alameda community Benefits of Guaranteed Income
• City released Requests for Proposals (RFPs) on August 8, 2022 • City received six (6) proposals from local and out-of-state organizations to serve as Financial Partner
• Financial Partner to be responsible for facilitating payments to program participants over 24-month duration of the pilot program. Scope of work to include all operational, compliance, and customer service activities necessary to support the prepaid card for Rise Up Alameda
Financial Partner
• Cloud based, integrated FinTech electronic solutions provider • Has helped implement guaranteed income pilot programs in the cities of Compton, Chicago, New York, Phoenix, Denver, and Arlington (VA) Financial Partner: Usio Inc.
• $2,987.50 for disbursement services
• $3,600,000 passthrough funds for payments to program participants • Passthrough funds to be transferred to Usio in eight (8) quarterly payments • Usio will then disburse directly each month to the program participants Usio Inc. Agreement
Program Budget Overview
Item Total Budgeted Amount
Program Partners (OD, Abt & Usio) $912,887.50
Passthrough Funds for Payments to Program Participants
(included in Usio agreement)
$3,600,000
Benefits Conservation Fund $50,000
Contingency $37,112.50
Total $4,600,000
• Summer/Fall 2023
• Secure income exemptions for CalWorks, CalFresh, and housing benefits • Application opens; random selection of 150 participants • Launch program (begin monthly payments)
• Summer/Fall 2024
• 12-month survey conducted by Abt Associates
Next Steps
• Fall/Winter 2024
• Interim Report presented to City Council
• Summer/Fall 2025
• End of pilot program & 24-month survey conducted by Abt Associates • Spring 2026
• Final report presented to City Council
• Report to include in-depth summary of data gathered
• Data to inform not only future guaranteed income programs but other future City priorities
Next Steps (continued)
Authorize the City Manager to execute an agreement with Usio Inc. to serve as the Financial Partner for the City of Alameda’s Guaranteed Basic Income Pilot Program (Rise Up Alameda) in the amount of $2,987.50 for disbursement services and passthrough funds of $3,600,000 to be used for direct payments to program participants for a total of $3,602,987.50 with funding from American Rescue Plan Act of 2021 funds.
Recommendation
THANK YOU!
Program Update
• Ongoing research and development
• Branded pilot program: Rise Up Alameda
• Formulation and leveraging of Advisory Board
• Weekly meetings with program partners
• Conversations with other guaranteed income programs
• Monthly meetings with Bay Area & CA communities of practice • Benefits waivers
• Secured grant from Y+H Soda Foundation
• Application to State for CalWorks and CalFresh waivers and housing benefits waivers included in AHA Move to Work (MTW)
Program Update
• Program outreach and promotion
• Discussions with community stakeholders
• Secured application and computer center locations
• Series of informational sessions
• Riseupalameda.org to launch
• Design and distribution of flyers
• Promotional video
Administrative Costs
Item Amount % of Total Budget
Payments to Program Participants $3,600,000 78%
Administration / Implementation $602,988 13%
Research & Evaluation $309,940 7%
Benefit Conservation Fund $50,000 1%
Contingency $37,073 1%
Total $4,600,000 100%