REPORT TO THE CITY COUNCIL
FROM: GEORGEANNE A. WHITE, City Manager,
Office of Mayor & City Manager
BY: SANTINO DANISI, MBA, City Controller/Finance Director
Finance Department
SUBJECT
Title
Approve an agreement with Green Dot Corporation to provide an alternative direct deposit option via a prepaid card program in lieu of a paper check, with no cost to the City of Fresno.
Body
RECOMMENDATION
Staff recommends City Council approve an agreement with Green Dot Corporation to provide an alternative direct deposit option via a prepaid card program for employees electing to participate, in lieu of receiving a paper check.
EXECUTIVE SUMMARY
In March 2023, Bank of America (BofA) notified the City of Fresno that they will be terminating their prepaid card program previously available to all BofA clients. Ten vendors were evaluated and the Green Dot Corporation is recommended given its fee structure and benefits to potential cardholders.
Staff recommends that the Council approve the attached agreement with Green Dot Corporation in the amount of $0.
BACKGROUND
In an effort to reduce expenses, the City of Fresno has continued to encourage and promote an electronic distribution of pay. The City contracted with the Bank of America Cashpay Card program to provide this banking alternative to employees that are unbanked. It has helped save printing costs and has benefited employees by allowing quicker access to financial resources while avoiding fees or charges when cashing their check. In addition, it is more secure and has less risk of theft or loss when compared to receiving a paper check.
In March 2023, Bank of America (BofA) notified the City of Fresno that they will be terminating their prepaid card program previously available to all BofA clients. The last check date that employees will receive pay via direct deposit to the Cashpay Card will be July 21, 2023. To assist with the transition, BofA will continue support for existing cardholders through December 30, 2023, with continued access to funds and ongoing communication assistance to all active cardholders notifying them of impending change.
To continue with the City’s practice of reducing expenses, staff recommends that Council approve the prepaid card service agreement with Green Dot Corporation.
Green Dot Corporation is an American financial technology and bank holding company in Austin, Texas. It is the world’s largest prepaid debit card company. Green Dot is also a payments platform company and is the technology platform used by Apple Pay Cash, Uber and Intuit. In 2001, the company pivoted to serve the “unbanked” and “underbanked” communities.
Upon approval by City Council, the prepaid card service agreement will be executed by the City Manager, or designee.
ENVIRONMENTAL FINDINGS
N/A
LOCAL PREFERENCE
N/A
FISCAL IMPACT
There will be no fiscal impact to the employer.
Attachment: Green Dot Paycard Agreement