Human Services Agency
May 22, 2002
BOARD MEETING DATE:
June 4, 2002
Honorable Board of Supervisors
Maureen D. Borland, Director, Human Services Agency
Glen H. Brooks, Jr., Director, Central Region
Second Amendment to the Agreement with Peninsula Community Foundation
Adopt a resolution authorizing the execution of an amendment to the agreement with the Peninsula Community Foundation to increase the amount of their contract by $100,000 making the total contract obligation $500,000 and to extend the term of the contract to 6/30/03.
The County and contractor entered into an Agreement on August 1, 2000, for the purpose of administering the Individual Development Account (IDA) Pilot Project at PeninsulaWorks Daly City. While San Mateo County's SUCCESS Program has a dramatic effect moving families from welfare to work, securing and maintaining employment, it does not necessarily lead to self- sufficiency without additional support.
The IDA program gives low-income families additional income they can allocate to a savings account to be used as reserves for financial emergencies or to invest in their futures. IDAs reward low-income families for saving money by enabling them to further their education, start small businesses, acquire a home down payment or start a retirement fund.
Upon successful training and a demonstrated pattern of savings, the IDA program uses private or public funds to match family savings at a rate of two dollars for each dollar saved. When savings plus matched funds reach the goal amount, the financial institution administering the IDA account makes payment directly to the vendor of business equipment, the seller of the home or the approved educational institution.
The original contract was for the amount of $100,000 and for the term of August 1, 2000 through June 30, 2001. The original agreement covered services to the Daly City PeninsulaWorks site. The First amendment increased the amount of the agreement by $300,000 and extended the term to June 30, 2002. This Second Amendment increases the amount and extends the term of the contract which will cover services for PeninsulaWorks sites at Daly City, San Carlos, Redwood City and Menlo Park.
In the first year of the expanded project, 50 families were enrolled in the Northern Region of San Mateo County. In the fourth year the last 50 families that enrolled in the first year will finish their participation in the program by completing their three year savings period. During the second year of the expanded project, 115 addition families in Northern, Central and Southern regions will be enrolled in the program. These 115 families will complete their three-year savings plan in the fifth year.
Upon successful completion of their three- year savings plan with the project, the 165 families will each have their $2,000 in savings matched with $4,000 from the project, requiring a total of $660,000 in matching funds.
Matching funds of $500,000 for families whose income is below the 200% of the Federal poverty income level will come from the Agency=s CalWORKs incentives funding at no Net County Cost. Matching funds of another $260,000 for families with income below 80% of the County median income will be provided by Center for Venture Philanthropy, also with no Net County Cost.
For families that do not save their $2,000 during the project period, unused matching funds will be returned at the end of the project to the Human Services Agency and/or the Center for Venture Philanthropy respectively.
County Counsel has approved this Agreement as to form.
Families that will demonstrate a regular savings pattern
Families that will attain their asset goal
Families meeting asset goals will show evidence of increase financial literacy and management of family finances, increased self-sufficiency, increased self-esteem and feeling of hope.
The Agreement with Peninsula Community Foundation keeps the commitment of Creating opportunities for every household to participate in our prosperity and goal number 17: All households experience real gains in income. The Agreement with Peninsula Community Foundation contributes to this commitment and goal by providing a savings program for low- income individuals/families in San Mateo County, enabling participants to obtain homes, businesses and other gains.
This Second Amendment adds $100,000 to the Agreement for a total obligation of $500,000.This Amendment is funded through CalWORKs incentive funds. There is no Net County Cost.