Fremont City Council Meeting: 09/06/22 07:00 PM
3300 Capitol Avenue Div/Dept: Human Services Department Fremont, CA 94538 Category: Agreements and Contracts
SCHEDULED
Sponsors:
STAFF REPORT (ID # 4685) DOC ID: 4685
Updated: 9/1/2022 1:03 PM by Alberto Quintanilla Page 1
CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION (DFPI) CAL MONEYSMART GRANT - Authorize the City Manager and the Human Services Director/President of the Fremont Family Resource Center Corporation to Execute the CalMoneySmart Grantee Agreement for the 2022/23 Fiscal Year and Appropriate $127,195 awarded for this project.
Contact Persons:
Name: Judith Schwartz Suzanne Shenfil
Title: Fam Resource Center Admin Director
Div/Dept: Human Services Department Family Resource Center Phone: 510-574-2007 510-574-2051
E-Mail: [email protected] [email protected]
Executive Summary: The Fremont Family Resource Center Corporation (FRC Non-Profit) has been awarded a CalMoneySmart grant of $127,195 from the California Department of Financial Protection and Innovation (DFPI) for the 2022/23 Fiscal year. This grant will fund the City’s SparkPoint Fremont financial services program to provide free financial education, coaching, and financial services to unbanked and underbanked residents in our commun ity, including new Afghan refugees.
Staff recommends the City Council authorize the City Manager and/or the Human Services Director as President of the FRC Non-Profit, to execute the CalMoneySmart Grantee Agreement on behalf of the FRC Non-Profit; and appropriate $127,195 to the FRC Corporation Fund (Fund 790).
BACKGROUND: United Way Bay Area created the SparkPoint model and now helps support and coordinate over 20 SparkPoint centers in the Greater Bay Area. The SparkPoint model provides financial coaching and education, free tax preparation, asset building tools and access to employment and legal services to low- and moderate-income individuals - assisting with budgeting, credit repair, savings plans and lowering debt.
SparkPoint Fremont began in 2011 and is led by the Fremont Family Resource Center (FRC) Core Team, a division of the City of Fremont Human Services Department. The FRC Core Team is also the lead organization in the FRC Collaborative of 20+ State, County, City and non-profit organizations that are co-located and working together to support families and individuals in need. The FRC Core Team provides all the financial services for SparkPoint Fremont.
In 2019, Senate Bill 455 was signed into law, and requires the DFPI to administer the CalMoneySmart program and offer qualifying nonprofit organizations grants of up to $200,000 to provide financial education and empowerment content to unbanked and underbanked residents, and services that improve their credit, increase their savings, or lower their debt.
The FRC Non-Profit is a 501(c)(3) arm of the City of Fremont that was created in order to accept funding from foundations and other entities for various projects that benefit the Staff Report (ID # 4685) Meeting of September 6, 2022
Updated: 9/1/2022 1:03 PM by Alberto Quintanilla Page 2 public. The FRC Non-Profit is also classified as a Type 1 Supporting Organization under Internal Revenue Code (IRC) Section 509(a)(3) and may accept funding for the City in connection with the FRC and other family, senior and youth related City programs and services.
In its capacity as a supporting organization, the FRC Non-Profit successfully applied for a CalMoneySmart grant in 2022. The proposal to DFPI addressed the influx of Afghan refugees to our community, in need of building a new life and learning an entirely new financial system. The City proposed to hire a bilingual financial coach who speaks Dari and/or Pashto, as well as English.
DISCUSSION/ANALYSIS: SparkPoint Fremont will serve 391 individuals with a financial coaching service, 125 of whom will work with a coach over time. Staff estimates 85% of measurable clients will make positive improvements in one or more financial measures of income, credit score, debt reduction and/or savings. Approximately 60 individuals will participate in financial education classes either online or in person, and over 90% will report the knowledge gained will assist them in reaching their goals.
FISCAL IMPACT: This action has no fiscal impact to the General Fund. The $127,195 grant award would cover the cost of a temporary financial coach, supplies, services and internal services costs, as well as administrative overhead costs. Staff is requesting the City Council recognize the new revenue and appropriate $127,195 in the Family Resource Center Corporation Fund.
ENVIRONMENTAL REVIEW: The action is exempt from the California Environmental Quality pursuant to, without limitation, CEQA Guidelines Section 15378(b)(2), (4) and/or (5) and/or 15061(b)(3), in that it is an administrative or fiscal activity of the City, that will have no possibility of a causing a significant effect on the physical environment. Each of the foregoing provides a separate and independent basis for CEQA exemption.
ATTACHMENTS: None.
RECOMMENDATION: Authorize the City Manager, or the Human Services Director as President of the Fremont Family Resource Center Corporation, to execute the CalMoneySmart Grantee Agreement (DFPI-EOO 101) on behalf of the Fremont Family Resource Center Corporation; and appropriate $127,195 for this project to Fund 790, as described in the report.