Title
Report regarding a resolution approving a Professional Services Agreement with YMCA for the administration of the City's Guaranteed Income Pilot Program and approving Budget Amendment Number 21-603 appropriating $200,000 for additional program-related expenses. (Nell Selander, Deputy Director, Economic & Community Development Department)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution to:
1) Approve a Professional Services Agreement with YMCA for the administration of the City's Guaranteed Income Pilot Program and
2) Approve Budget Amendment Number 21-603 appropriating $200,000 for additional Pilot Program-related expenses.
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BACKGROUND/DISCUSSION
On July 14, 2021, City Council adopted Resolution 140-2021 approving the creation of South San Francisco’s Guaranteed Income Pilot Program and approving budget amendment number 22.011 appropriating $1,000,000 in American Rescue Plan Act funds to provide $500 per month for one year for 160 low income South San Francisco residents.
The July 14th staff report outlined YMCA’s role as the intended Pilot Program administrator and included program documents, such as the draft application, disclaimer and informed consent form, and benefits crosswalk. In addition to outreaching to the community, receiving applications, prioritizing applicants, holding lotteries, enrolling selected applicants, and providing case management throughout the Pilot Program, the YMCA will also contract with Community Financial Resources (CFR) to be the fiscal administrator for the program. CFR will dispense the funds monthly to participating South San Francisco residents via a Focus Debit Card or Self Help Credit Union Savings Account Card, depending on whether or not the participant has a Social Security Number, Individual Taxpayer Identification Number, or neither.
The Professional Services Agreement with the YMCA, included as an Exhibit A to the associated resolution, sets out the scope of work the YMCA will complete over the term of the agreement - from its execution to 18 months after the Pilot Program concludes - as well as their payment schedule. The payment schedule provides for four quarterly payments, with the first on August 15, 2021. The City will advance funds in the first payment for those expenses needed from the outset: evaluation incentives, hold harmless fund, and the fiscal administrator’s contract. The City will advance payments for participating households on a quarterly basis. And, finally, the City will advance 50% of YMCA’s administrative fee with the first payment and the remaining 50% with the third quarterly payment.
With 160 households participating, the $1.2 million budget breaks down as follows:
- $960,000 for direct payments to selected households,
- $55,000 for direct payments to households, either through evaluation incentives or the hold harmless fund,
- $35,000 for the fiscal administrator contract, which will process all payments and provide aggregate data on purchases, and
- $150,000 for the program administrator.
FISCAL IMPACT
The total cost of implementing the Pilot Program approved by Council on July 14th is $1.2 million. Council appropriated $1 million in American Rescue Plan Act funds for the bulk of program expenses on July 14th. The proposed resolution appropriates $200,000 in General Fund dollars for program administration, all of which will be offset by grants from the Silicon Valley Community Foundation and the County of San Mateo. When the final grant awards are received (expected in late summer/early fall), staff will bring forward a resolution to Council accepting the grants and appropriating the funds. Ultimately, there will be no net impact to the General Fund.
RELATIONSHIP TO STRATEGIC PLAN
Creation of the South San Francisco Guaranteed Income Pilot Program meets the City’s strategic goals of providing a high quality of life for our residents, Financial Stability, and Economic Vitality.
CONCLUSION
Staff recommends that the City Council adopt a resolution approving a Professional Services Agreement with YMCA for the administration of the City's Guaranteed Income Pilot Program and Budget Amendment Number 21-603 appropriating $200,000 for additional program-related expenses. Adopting the resolution will allow City staff and the YMCA to begin implementing the Pilot Program.