COUNTY OF SAN MATEO
Inter-Departmental Correspondence

Human Services Agency

DATE:

January 7, 2002

BOARD MEETING DATE:

January 15, 2002

TO:

Honorable Board of Supervisors

FROM:

Maureen D. Borland, Director, Human Services Agency
Glen H. Brooks, Jr., Director, Central Region

SUBJECT:

Resolution Amending the Agreement with California Check Cashing Stores, Inc.

RECOMMENDATION

Adopt a resolution authorizing the execution of a ninth amendment to the agreement with

California Check Cashing Stores, Inc. This agreement is for the issuance of Food Stamps in San

Mateo County. This amendment corrects a clerical error in the eighth amendment, which raised

the "per transaction fee", but neglected to include a corresponding increase to the maximum

payment. The contract maximum should be increased by $100,000 to compensate contractor for

the increased "per transaction fee."

BACKGROUND

On December 19, 2000 the Board of Supervisors approved the eighth amendment to the

agreement with California Check Cashing, Inc. that raised the rate of payment from $1.26 to

$2.23.

The memo to the Board of Supervisors dated December 11, 2000 showed the increase in the

appropriation to $225,418, however this increase was inadvertently omitted from the eighth

amendment itself.

The Human Services Agency, under State regulation, is responsible for administering the

federally-mandated Food Stamp program in San Mateo County. This regulation involves the

issuance, control, and accountability of Food Stamp coupons. As permitted through State

regulation, the Agency has elected to contract for these services over the last ten years. In 1991

the County contracted with Monetary Management Corporation to provide these services through

December 31, 1994. The Board of Supervisors subsequently approved an amendment of the

agreement based on the Contractor's name change to Fast Cash on January 1, 1993 and another

amendment to the agreement based on another name change to California Check Cashing Stores,

Inc. on December 21, 1999.

DISCUSSION

The Welfare Reform act of 1996, mandates that all States convert to Electronic Benefits Transfer

(EBT) issuance for the Food Stamp program by October 2002. As a result, check cashing

services are being phased out. Approval of the amendment is being requested until the

conversion to EBT is complete.

This amendment also includes the new non-discrimination and equal benefits provisions.

FISCAL IMPACT

This amendment increases the amount of the contract by $100,000 making the contract total

$225,418. The expenditure appropriation for the extended amount was anticipated during budget

development process. Appropriation in the amount of $100,000 has been included in FY01/02

Budget. Therefore, there is no new Net County Cost associated with this amendment for this

fiscal or next fiscal year.