Title
Employee Loans - COOP-23-038 - Amendment (Ordinance S-53308) - Citywide
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Contract 158533 with Sunrise Banks N.A., to extend the contract term. Further request to authorize the City Controller to disburse all funds related to this item. No additional funds are needed, request to continue using ordinance S-49704.
Report
Summary
This contract provides a short-term loan program to support employees with personal financial needs. Eligible employees may apply for a loan of up to $5,000 or 8% of their gross income, whichever is less. Repayments are made through payroll deductions, and the program operates at no cost to the City.
The cooperative agreement between Sourcewell, a service cooperative, and Sunrise Banks is set to expire on June 30, 2028. The City plans to enter into a new linking agreement through Sourcewell once the services are re-solicited. In the interim, Sunrise Banks has agreed to a one-year extension, ensuring continuity of services while the next Sourcewell agreement is finalized.
Contract Term
Upon approval the contract will be extended through June 30, 2029.
Financial Impact
This program is provided at no cost or liability to the City of Phoenix, and there is no impact to the General Fund. The costs for these services are paid by monthly payroll deductions from participants in the loan program.
Concurrence/Previous Council Action
The City Council Previously reviewed this request:
• Employee Loans COOP-23-038 - Contract 158533 (Ordinance S-49704) on May 31, 2023.
Department
Responsible Department
This item is submitted by Deputy City Manager David Mathews and the Human Resources Department.