City Council Report
915 I Street, 1st Floor
Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2022-01038 June 28, 2022
Title: Supplemental Agreement with International Rescue Committee, Inc. for the Financial Empowerment Center
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or the City Manager’s designee to execute Supplemental Agreement No. 4 to City Agreement No. PRC000666 with International Rescue Committee, Inc., for an amount not to exceed $450,000 for a new total agreement not-to-exceed amount of $1,209,214.
Contact: Amy Williamson, Financial Empowerment Manager, (916) 808-1046, [email protected]; Leslie Fritzsche, Economic Development Investment Manager, (916) 808-1540, [email protected]; Office of Innovation & Economic Development
Presenter: None
Attachments:
1-Description/Analysis
2-Supplemental Agreement
Description/Analysis
Issue Detail: The City of Sacramento (City) Financial Empowerment Center (FEC) is part of a national network of 34 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 International Rescue Committee, Inc. (IRC) as its contract partner. As also required by the CFE Fund, in September 2019 the City hired an FEC Manager.
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 some 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 has ended as of spring 2022. At this time, should the City wish to continue FEC operations, it will assume primary funding responsibility for the FEC. The request outlined in this report is to amend the IRC contract until June 30, 2023 for that purpose. Additional funding beyond FY23 will be evaluated and considered as part of future budget actions.
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 Financial Empowerment Center is one way the City can help its residents improve their financial stability and strengthen their economic future.
To date, the FEC has served over 800 clients from local households with an average income of $31,873. The client base is representative of the local resident population around age, race, and ethnicity. Clients have achieved 563 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 994 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. The FEC team’s goal for FY23 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.
Financial Considerations: The current contract with IRC expires on June 30, 2022, and additional funding is needed to continue the work until June 30, 2023. The not-to-exceed amount for Supplemental Agreement No. 4 to City Agreement PRC000666 with the International Rescue Committee, Inc. through June 30, 2023, is $450,000.
Sufficient funds are available in the Financial Empowerment Center MYOP (I02182000) to support this supplement. This includes $424,029 from the FY2022/23 adopted budget, which was approved on June 14, 2022, and $25,971 from the most recent supplemental grant to the City from Cities for Financial Empowerment Fund for the eviction prevention pilot.
As of July 1, 2022, the City’s Financial Empowerment Manager position will convert to the status of a currently vacant Community Engagement Administrative Analyst position in the Office of Innovation & Economic Development (OIED). The position has been housed with OIED since the start of the FEC initiative.
Local Business Enterprise (LBE): None.