HomeMy Public PortalAbout2018.178 (10-02-18) RESOLUTION NO. 2018.178
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
APPROVING A SERVICE AGREEMENT WITH BMG MONEY, INC. (DBA LOANS
AT WORK) TO ESTABLISH AN EMERGENCY PAYCHECK LOAN FOR FULLTIME
LYNWOOD EMPLOYEES
WHEREAS, the City Council of the City of Lynwood provides voluntary benefit
plans to employees including Flexible Spending Accounts (health and dependent
care), Voluntary life, Cancer, and Accident plan and supplemental short-term
disability; and
WHEREAS, the City seeks to ensure that the voluntary benefits provided to
employees are comprehensive and meet employees' needs; and
WHEREAS, the payday loan industry is considered by many to prey on lower wage
earning individuals, payday loans stores in California are disproportionately located in
African-American and Latino neighborhood and payday loan stores frequently charge
upwards of 300% and 400% for loans, with many customers taking up to ten loans per year;
and,
WHEREAS,. BMG Money, Inc. (DBA as Loans At Work) offers an emergency
employee loan program for unsecured loans with a fixed repayment schedule over a 24-
month period through payroll deductions; and
WHERAS, BMG Money, Inc. offers unsecured emergency loans up to $5,000 at
24.99%, the loan is paid back by the employee through payroll deductions up to 24 months
and an employee can pay-off the loan early without any prepayment penalty; and
WHEREAS, the City Negotiator has met and conferred with both
employee bargaining groups regarding the emergency paycheck loan program;
NOW, THEREFORE the City Council of the City of Lynwood does hereby find,
determine, order and resolve as follows:
Section 1. That the City Council authorizes the Mayor to sign a Service
Agreement with BMG Money, Inc. in a form approved by the City Attorney to provide
an emergency paycheck loan program for fulltime Lynwood employees effective
November 1, 2018.
Section 2. That the City Council authorize the Director of Human Resources
& Risk Management to sign any documents necessary to effectuate the service
agreement with BMG Money, Inc..
Section 3. That the modifications so ordered by this resolution shall become
effective immediately upon its adoption.
PASSED, APPROVED AND ADOPTED this 2th day of October, 2018.
Jo
e Luis Solache, Mayor
ATTEST:
I AIs. / ht...
Maria Quinonez, City Clerk Jos- 'ometeotl, City Manager
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
r. .. i c
Francisco Leaf ity Attorney Cynthia tall: !Director of
Human Resources and Risk
Management
STATE OF CALIFORNIA
) §
COUNTY OF LOS ANGELES )
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do hereby
certify that the foregoing Resolution was passed and adopted by the City Council of the
City of Lynwood at a regular meeting held on the 2nd day of October 2018, and passed
by the following votes:
AYES: COUNCIL MEMBERS CASTRO, MAYOR PRO TEM SANTILLAN BEAS,
COUNCIL MEMBER ALATORRE, AND MAYOR SOLACHE
NOES: NONE
ABSENT: COUNCIL MEMBER HERNANDEZ
ABSTAIN: NONE
Ll n l /L!!is
-Maria Quinonez, City C erk dp
STATE OF CALIFORNIA
) §
COUNTY OF LOS ANGELES ) •
I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, and the
Clerk of the City Council of said City, do hereby certify that the above foregoing is a full,
true and correct copy of Resolution No. 2018.178 on file in my office and that said
Resolution was adopted on the date and by the vote therein stated.
Dated this 2nd day of October 2018.
I IAA / ! ,/voa
aria QuinonezW ity Clem
•