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TO: Mayor Richard c. Irvin
FROM: Behati Hart, Director Innovation & Strategy
DATE: April 4, 2022
SUBJECT:
A Resolution approving a new contractual agreement for The Neighbor Project (TNP) to continue as a service partner to the Aurora Financial Empowerment Center (FEC) through December 2022 and to allocate $247,272 of budgeted funds for The Neighbor Project (TNP), with up to two (2) one (1) year extensions.
PURPOSE:
Since 2019, The City of Aurora Financial Empowerment Center, the only existing model in the State of Illinois, has committed to providing free, one-on-one financial counseling to low and moderate income residents, delivered by professionally trained counselors. The Neighbor Project (TNP) has successfully served as our program partner by elevating our FEC program services, developing trusted relationships with their clientele and local community organizations. TNP has also been instrumental to the vision and evolution of our future programming. To alleviate the impact caused by a break in financial counseling services at the FEC, and to sustain our commitment to our resident’s economic mobility, a new contractual agreement has been developed to maintain continuity of FEC services with TNP through December 2024).
BACKGROUND:
On December 17, 2019, City Council approved a resolution to accept a two-year matching grant from the Cities for Financial Empowerment (CFE) to create a Financial Empowerment Center (FEC) in the city of Aurora (ref. R19-412). Under the agreement with CFE, The Neighbor Project (TNP) was identified as the community-based organization to lead CFE counseling standards. In December 2021, council approved an amendment to the original agreement between CFE and FEC to extend grant related services ending the cohort on April 30, 2022 (ref. R21-376). Council also approved an extension of the original contractual agreement with TNP to continue services to the FEC and to allocate $100,485 of budgeted funds for TNP through April 30, 2022 (ref. R21-377). To date, the Aurora FEC counselors have successfully outperformed other cities despite their increasing caseloads, providing over 1000 residents with essential professional counseling services and referral activity to partner agency services. Highlights from the FECs community impact include:
900+ outcomes produced by FEC counselors in first 1.5 year
$1,032,880 combined debt reduction
21.1% clients accessed public support programs
8.5% clients increased savings (totaling over $498,483)
11% clients increased credit score rating by 35 pts
7.3% clients successfully opened safe/affordable bank accounts
31.5% clients reduced delinquent accounts
18.45% clients reduced non-mortgage debt by 10%
The success and importance of FEC services to our community was also featured on Univision and local media.
DISCUSSION:
The two-year pilot cohort under CFE model ends April 30, 2022. The FEC partnership with TNP has exceeded the expectations and grant requirements of CFE to provide City residents free financial counseling and financial literacy services. Recognizing our success as a pilot program, The CFE has granted the City of Aurora the distinguished title as “expert city” to continue operational services and receive CFE’s technical and operational support at no additional cost to the City.
If approved by council, the term of this Agreement will commence as of May 1, 2022 and shall continue through December, 31, 2022 (the “Original Term”), unless terminated sooner as provided in Section 3 herein. This Agreement shall automatically renew for up to two (2) one (1) year terms (which shall start January 1 and end December 31 of 2023 and 2024, respectively) (each, a “Renewal Term”), upon the same terms and conditions as set forth in this Agreement, unless either Party provides the other Party written notice of an intention not to renew, which shall be provided to the other Party not less than 120 days prior to expiration. Provided, however, an automatic renewal is subject to City Budget appropriation and necessary approval as may be required internally by the City.
Contractor agrees to perform the services (“the Services”) in accordance with the Scope of Work, the Financial Empowerment Center Model, to secure and measure outcomes as set forth in Outcome Documentation and Verification, and to adhere to FEC branding standards for the duration of the term set forth herein and for any Renewal Term. The Services provided by Contractor, through its licensed and qualified financial counselors (“Counselors”) shall be provided at no charge to participating residents of the greater Aurora region (“Clients”) and shall be performed on-site at a location approved by the City, or virtually by phone or video conference, as approved by the City and agreed upon by the Parties as specified in Scope of Work
For budget year 2022 a carry-over amount of $142,958 and incoming CDBG grants totaling $150,000 (R21-229 and R22-060) have been secured to support associated cost outlined in the contractual agreement through December 2022 (ref. R21-229; R22-060). Additional grant funding is underway to secure our servicing partner beyond December 2022.
If approved, the estimated cost of the proposed agreement term shall not exceed $247,272 for May 1, 2022 through December 30, 2022. ($150,000 to be paid through CDBG, $97,272 to be paid from the general fund)
If approved, the estimated cost for first Renewal Term, with a modest 3% increase, shall not exceed $382,035 for January 1 through December 31 2023.
If approved, the estimated cost for second Renewal Term, with a modest 3% increase, shall not exceed $393,496 for January 1 through December 31 2024.
Funding for this program will be paid from 101-1304-419.32-20.
IMPACT STATEMENT:
A continuing partnership with TNP as our service provider will allow FEC counselor to link those seeking financial security to educational, employment and business opportunities and capital. Together, we will expand our services from cradle to retirement, decrease the wealth gap and generate equitable economic mobility within the Aurora region for years to come.
RECOMMENDATIONS:
I request approval of a new contractual agreement for The Neighbor Project (TNP) to continue as a service partner to the Aurora Financial Empowerment Center (FEC) through December 2022 and to allocate $247,272 of budgeted funds for The Neighbor Project (TNP), with up to two (2) one (1) year extensions.
cc: Finance Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution approving a new contractual agreement for The Neighbor Project (TNP) to continue as a service partner to the Aurora Financial Empowerment Center (FEC) through December 2022 and to allocate $247,272 of budgeted funds for The Neighbor Project (TNP), with up to two (2) one (1) year extensions.
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, (The Neighbor Project (TNP) was hired as the servicing contractors for the grant agreement with CFE Fund which was executed in January 2020 (ref. R19-412) and CFE Fund issued a second grant amendment to Aurora FEC providing a no-cost extension to the City ending the program grant no later than April 30, 2022 (R21-377); and:
WHEREAS, the City of Aurora, recognizing the TNP partnership exceeded the expectations and grant requirements of CFE to provide City residents free financial counseling and financial literacy service and values the integrity of the program partnership, have prepared a new contractual agreement with TNP to match the new FEC model through December 2022, with up to two (2) one (1) year extensions thereafter.
WHEREAS, if approved, the proposed contract will secure our current servicing partner, TNP, through the new term to alleviate a break in services which are essential to the quality of life for Aurora residents and quality of work for staff of the City;
WHEREAS, 2022 funding will be paid from accounts 101-1304-419.32-20 and $150,000 through CDBG 221-1330-801.43-55.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that a proposed contractual agreement with the Neighbor Project to provide services to the Aurora Financial Empowerment Center as described in this Resolution shall be and hereby is approved; and further
BE IT RESOLVED, that $247,272 of budgeted funds for the Neighbor Project to fulfill the new service agreement with Cities for Financial Empowerment through December 31, 2022, which shall be and hereby are encumbered and authorized for disbursement consistent with the purposes of this Resolution.