Title
Employee Loans Contract - COOP 23-038 Request for Award (Ordinance S-49704)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Sunrise Banks, N.A., and Employee Loan Solutions, LLC, dba TrueConnect, to provide a resource to secure safe, affordable, small-dollar loans to avert financial emergencies and ease financial stress of employees, for the Human Resources Department. Further request to authorize the City Controller to disburse all funds necessary for this item. 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.
Report
Summary
This contract will provide an employee loan program which can provide City employees with a resource to secure safe, affordable, small-dollar loans (up to $5,000) to avert financial emergencies and ease financial stress. Loan payments are deducted from each paycheck over 12 months. Loans are made with a reasonable maximum interest rate of 19.99 percent and offer an alternative to title loans and payday loans which typically carry extremely high interest rates. There are no origination fees or other fees assessed on the loans. Loan eligibility is not dependent upon personal credit scores, and a borrower's personal credit score is improved upon complete loan repayment. The loan services are supported by a comprehensive employee financial wellness program which can help employees get out of the cycle of debt. This program is provided at no cost or liability to the City.
Procurement Information
In accordance with Administrative Regulation 3.10, standard competition was waived as a result of an approved determination memo based on special circumstances, being a lack of alternative competition. Sourcewell serves as a cooperative purchasing agency for government, education, and non-profit organizations, including the City of Phoenix. Sourcewell issued a competitive solicitation in 2019, Request for Proposal #060519, and awarded a contract to Sunrise Banks, N.A., dba TrueConnect.
Contract Term
The contract will begin on or about July 1, 2023, for a five-year term with no options to extend.
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.
Department
Responsible Department
This item is submitted by Assistant City Manager Lori Bays and the Human Resources Department.