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COUNTY OF SAN MATEOInter-Departmental Correspondence |
Human Services Agency |
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DATE: |
May 15, 2003 |
BOARD MEETING DATE: |
June 10, 2003 |
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TO: |
Honorable Board of Supervisors |
FROM: |
Maureen D. Borland, Director, Human Services Agency |
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Glen H. Brooks, Jr., Director, Central Region |
SUBJECT: |
Third Amendment to the Agreement with Peninsula Community Foundation |
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Recommendation |
Adopt a Resolution authorizing the execution of a Third Amendment to the Agreement with the Peninsula Community Foundation to increase the amount of their contract by $100,000 making the total contract obligation $600,000 and to extend the term of the contract to 6/30/04. |
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Background |
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. This Agreement has been amended on two previous occasions to increase the amount of the Agreement, extend the term of the Agreement and to expand the Agreement to cover services for PeninsulaWorks sites at Daly City, San Carlos, Redwood City and Menlo Park. While San Mateo County's SUCCESS Program has had a dramatic effect moving families from welfare to work, securing and maintaining employment, it does not necessarily lead to self- sufficiency without additional support. |
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The IDA program began with 50 participants and has expanded each year due to the success of the program. Currently there are 190 participants enrolled and active in the program. Partners in the original design included Center for Venture Philanthropy and Lenders for Community Development (LCD). Funding was shared with Center for Venture Philanthropy for participants earning 80% of area median income and Temporary Assistance to Needy Families (TANF) incentive funds for those 200% of the poverty level. The Human Services Agency (HSA) assumed the in kind cost of staffing for case management, child care and meeting supplies including food. LCD provides money management, banking services, monitoring and evaluation. Center for Venture Philanthropy is no longer fund raising for the matching funds. |
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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 future. 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. |
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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. |
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Discussion |
The County has identified TANF incentive funds that can be used for an additional twenty-five (25) IDA families in FY 2003-04. These new participants will not exceed 60% of the Area Median Income as established by Housing Urban Development. For FY 2003-04 the IDA program will contribute to TANF goals by focusing on two parent families and enabling these families to build financial assets, learn financial management skills and create financial goals for themselves. These financial skills and goals will contribute to the stability of two parent families and allow linkage of these new IDA participants to the First Time Home Buyers Program. |
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The County so far has provided matching funds of $500,000 for families whose income is below the 200% of the Federal poverty income level, which will come from the Agency's CalWORKs TANF Incentives Funds at no Net County Cost. Matching funds of another $260,000 for families with income below 80% of the County median income has been provided by Center for Venture Philanthropy, also with no Net County Cost. For FY 2003-04 the County will provide matching funds of an additional $100,000 for those new 25 participants for a total match of $600,000. |
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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. |
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County Counsel has reviewed and approved this Third Amendment as to form. Risk Management has reviewed and approved Contractor's Insurance for this Agreement. |
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Performance Measures: |
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Program outcome for families participating in IDA |
Success rate |
Families that will demonstrate a regular savings pattern |
80% |
Families that will attain their asset goal |
75% |
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Families meeting asset goals will show evidence of increase financial literacy and management of family finances, increased self-sufficiency, increased self-esteem and a feeling of hope. |
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Vision Alignment |
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. |
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Fiscal Impact |
This Third Amendment adds $100,000 to the Agreement for a total obligation of $600,000. The term of the Agreement is August 1, 2000 through June 30, 2004. This Amendment is funded through TANF Incentive Funds. There is no Net County Cost. |