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Item C17BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: April 18, 2012 Division: Employee Services Bulk Item: Yes X No Department: Human Resources Staff Contact Person/Phone #: Teresa Aguiar, Ext. 4458 AGENDA ITEM WORDING: Approval to make available to employees a voluntary loan program with BMG Money, Inc. ITEM BACKGROUND: This program provides employees with the opportunity to obtain loans from $500 to $5000 to cover unexpected or emergency expenses with repayment through payroll deduction. The interest rate would be between 23.75% to 29.75% (depending on the amount of the loan) and there is no credit check of the employee applying for the loan. To be eligible for a loan, the employee must be employed for at least one year, must not currently be in bankruptcy, and have the ability to afford the loan payments. PREVIOUS RELEVANT BOCC ACTION: None CONTRACT/AGREEMENT CHANGES: None STAFF RECOMMENDATIONS: Approval Staff time TOTAL COST: None INDIRECT COST: _approx 1-3 hrs a month_ BUDGETED: Yes _No DIFFERENTIAL OF LOCAL PREFERENCE: N/A COST TO COUNTY: N/A SOURCE OF FUNDS: N/A REVENUE PRODUCING: Yes _ No X (AMOUNT PER MONTH Year APPROVED BY: County Atty OMB/Purchasing Risk Manageme �1 DOCUMENTATION: DISPOSITION: Revised 7/09 Included X Not Required AGENDA ITEM # MONROE COUNTY BOARD OF COUNTY COMMISSIONERS CONTRACT SUMMARY Contract # Contract with BMG Money, Inc Effective Date: April 19, 2012 Expiration Date:N/A Contract Purpose/Description: Payroll Deduction Plan Agreement Contract Manager:Teresa A uiar (Name) for BOCC meeting on 4458 Employee Services (Ext.) (Department) _Agenda Deadline: Aprii 3, 2012 CONTRACT COSTS Total Dollar Value of Contract: $0 Current Year Portion: $0 Budgeted? Yes® No ❑ Account Codes: - - Grant: $ County Match: $ ADDITIONAL COSTS Estimated Ongoing Costs: $0/yr For: (Not included in dollar value above) (eg. maintenance, utilities, janitorial, salaries, etc CONTRACT REVIEW Changes Date Out Date In Needed R viewer Division Director 4vO-\ Yes❑ Nooj ��jp�Risk Manage ent t It), Yes❑ Nod � a . O.M.B./Purc ing �' J�7/ Yes[—] No® C County Attorney Yes[:] NoQ/ t✓ �' '� Comments: Li us rorm Kevlsea wi 1/yJ m ;Y 112 C UNTY fo�MONROE KEY WESTLORIDA 33040 (305)294-4641 Office of the Employee Services Division Director The Historic Gato Cigar Factory 1100 Simonton Street, Suite 268 Key West, FL 33040 (305) 292-4458 — Phone (305) 292-4564 - Fax TO: Board of County Commissioners FROM: Teresa E. Aguiar, Employee Services Director IV SUBJ: Voluntary Employee Loan Program DATE: March 9, 2012 BOARD OF COUNTY COMMISSIONERS Mayor David Rice, District 4 Mayor Pro Tem Kim Wigington, District 1 George Neugent, District 2 Heather Carruthers, District 3 Sylvia J. Murphy, District 5 This item requests approval to make available a voluntary loan program through BMG Money, Inc. This program provides employees with the opportunity to obtain loans from $500 to $5000 to cover unexpected or emergency expenses with repayment through payroll deduction. The loans are based on the employee's take home pay and their ability to repay. The program provides employees with little or no credit the ability to be approved for unsecured loans. BMG's municipal clients include the City of Miami Beach, Doral, Hialeah Gardens and Sweetwater as well as the Town of Surfside. They have a number of private company clients as well. Currently, the County offers our employees the ability to apply for loans through both Keys Federal Credit Union and Southernmost Credit Union and provides them the ability to pay off these loans through payroll deduction. The differences with BMG are that the interest rate with BMG is much higher (23.75% to 29.75%) and there is no credit check (see attached comparison spreadsheet). The program does however provide the opportunity for the employee to build good credit because the loans are reported to the credit reporting agencies when paid off. There is nothing out in the market that does exactly what BMG does. The only other similar company would be Payday Loans and those loan limits are not as large nor do they allow recurring payments. If the BOCC approves the program, the Human Resources office would need to coordinate with BMG and the Clerk's office to set up any necessary procedures for payroll deductions. Human Resources will then provide a list of active employees with name, address and salaries of the employees to BMG and verify employment of those employees with outstanding loans every pay period. Participation of employees is at no cost to the County and would be an added voluntary benefit for employees to take advantage of if they wish to do so. The County would not be held liable in any way if the employee defaults on the loan. If you have any questions on this item, please do not hesitate to contact me at X4458. �t .,���i,it�iS$ � tt:-'tluS�`i �t,,J A r� <s�.1f-,F4.,,! »�!<(){3„e }�,r{'( t ;t ;� �r,; {,fir �? tl�� � � , r2��.+, ,) l� 1��L�l�" ,,C4�» f�1 �,(�j�l, SS+t,'�t�, ,ii{>,1 .Z. td, ): .\h,71�Si 3!} is�i! tir 1 } tY(1� \i, 4,,, ,t t.l,�,l< (y, r , ���}t,�+��r i)r�v}Yg a� r��'V, �5��� ',r+1,li,i� ,.� ,�Itrl:rz,��,,,,1 �`.1,�, 5, wt �,�t,>Ir Credit Check Required Unsecured/Signature i,,, 7r', 1{;r, �l)i� rt.ilr. }S �t,� �\t„it•i�,f,,i; a +, t,� t ,, + r,r,.i a r-, \i r r s�, ,, �) (+Q 7 t1� �S t 4, (5�}�) rr't Sre:si ,�,1� ?,, 1�i7? ¢r lt,� � ;Y \� � +, ��� r J� +t„1 ,; ,t3,�},, �t � � ,��� �t $}„ r =' {� ,�11tst,r �t (�� }„t, ��tl r,T,,S.ti\��„v1 �,s,,,, iSt i t 1, e ,t,ri,, , ,, 1{ t,. tt,t}( \tr, , �ir�ir�� ,, T't � i� t jltn£, ly �� „�,Ir>EY„CU' s 't r , SOUTHER , ,r« 1rr+ r NMCIST FCLI Yes Yes No Loans Yes Yes Yes Minimum employment Application required ON line application None Yes 6 month Yes 1 year Yes available Yes No Yes Application Fee Membership required No No Yes $30 Yes $10 Yes $25 N/A Interest Rate depending on Credit rate Yes Yes No Based on amt of loan Interest rate: Good credit Bad Credit Depends on credit rating 7% may not qualify Depends on credit rating 15% 18 to 20% only from 23.75% to 29.75% N/A N/A No credit Shared secure loan on their own money. Shared secure loan on their own money. No credit check Term of Loan 12-72 months Up to 3 yrs. 6,12,18or24 months Max amount of Loan Turn around time Must disclose reason Term up to EE $20,000 2 business days Term up to EE $5,000 2 to 3 business days Term up to EE $5,000 24 hours for loan Yes No No PAYROLL DEDUCTION PLAN AGREEMENT THIS PAYROLL DEDUCTION PLAN AGREEMENT (this "Agreement') is entered into on (Effective Date), by and between the Monroe County Board of County Commissioners ("County"), and BMG Money, Inc., a Delaware corporation ("BMG Money"). County desires to offer as a benefit to its employees easy and convenient loans and BMG Money desires to loan money to such employees, in each case to be evidenced by a promissory note with the applicable employee (collectively, as amended or otherwise modified from time to time, the "Notes"). County Acknowledgment. County acknowledges and agrees that it will comply with its employees' requests set forth in the Notes to (a) deduct from their wages, salary, commissions or other similar compensation (collectively, "wages') the amounts to be so deducted as described in the respective Notes and (b) remit such amounts to BMG Money, in each case, solely to the extent of the maximum available wages of the applicable employee and in accordance with applicable laws, rules, regulations and orders (the "Program"). Payment Instructions. County agrees to remit available funds to BMG. All amounts will be deducted from employees' wages in accordance with the applicable Notes on, or as promptly as practicable after, the date the applicable wages are payable. Marketing. County agrees to provide BMG Money with opportunities to market the Program to eligible employees and to educate such employees about the Program. Subject to applicable law, marketing opportunities may include, without limitation, in person meetings with employees, direct mail to employees, bulletin board postings, information made available through the Internet and emails to employees. Notwithstanding any provision hereof, it is expressly understood that BMG Money shall not solicit any employees of the County to participate in the Program by telemarketing. County hereby authorizes BMG Money to disclose County's participation in the Program in any marketing materials prepared by or on behalf of BMG Money. Under no circumstances shall BMG Money state, indicate, imply or lead the employee to reasonably infer an official relationship between it and County or that the loan is being made directly by County. Furthermore, prior to accepting applications from County employees, BMG Money shall disclose to such applicants, in both electronic and audio formats, that: (i) the County does not endorse the Program; and (ii) applicants should consider whether their local credit union might have lower cost loan programs available to them. Notice. County shall notify BMG Money as soon as reasonably practicable if any employee requests revocation of his or her payroll deduction request, ceases to be employed by County or changes his or her employment status. Further Assurances. Each party shall execute and deliver, or cause to be executed and delivered, such additional instruments or documents and take all such actions as the other may reasonably request for the purposes of implementing or effectuating the provisions of this Agreement. County also agrees to provide BMG Money with access to all records (or copies thereof) necessary for BMG Money to implement or effectuate the provisions of this Agreement and/or the Program.-, provided, however, that the County shall have no obligation to provide and/or otherwise disclose any records deemed exempt from disclosure pursuant to applicable laws, including without limitation Chapter 119, Florida Statutes. Public Records. County is a political subdivision of the State of Florida and as such is subject to Chapter 119 of the Florida Statutes, otherwise known as the Public Records Act. This Agreement and all other documents and agreements flowing therefrom, including those executed by any employee, are subject to disclosure to the extent required by such Chapter 119, provided, however, that the County shall have no obligation to disclose any documents and agreements deemed exempt from disclosure under Chapter 119, Florida Statutes. Indemnification. BMG Money agrees to indemnify County against, and hold it harmless from, any and all losses, liabilities, claims, costs, expenses and damages of any nature (including but not limited to attorneys' fees) in any way arising out of any breach of its obligations under this Agreement. Notwithstanding the foregoing, BMG Money shall not be liable to County for any special, indirect, exemplary or consequential damages. The indemnification obligation under this paragraph shall survive termination of this Agreement. Assignment. BMG Money and its assignees may assign all or any of BMG Money's rights, but none of its obligations, under this Agreement in connection with any financing of Notes or of the loans evidenced by such Notes or otherwise, provided, however, that County shall, notwithstanding any such assignment, be entitled to deal solely and directly with BMG Money in connection with County's rights and obligations under this Agreement. This Agreement shall be binding upon the parties hereto and their respective successors and assigns. Notwithstanding any such assignment, County's obligations, rights and responsibilities shall be governed exclusively by this Agreement. Termination. The initial term of this Agreement shall commence upon the Effective Date. County and BMG Money may terminate this Agreement upon 60 days prior written notice to the non -terminating party at the address shown below. Notwithstanding any termination of this Agreement, this Agreement shall survive as to any Notes outstanding as of such termination until final payment in full of such Notes. Miscellaneous. This Agreement supersedes any prior agreements with respect to the subject matter hereof and may only be amended or otherwise modified by a writing signed by both parties. If any provision of this Agreement is found to be unenforceable, this will not affect the validity or enforceability of any other provision. Any provision of this Agreement that conflicts with any mandatory provision of applicable law shall be deemed to be amended to conform with such applicable law. Time is of the essence under this Agreement. Waiver of Trial By Jury. Each party, as a crucial and material inducement to the other to execute this Agreement, hereby on behalf of itself, its agents, successors and/or assigns waives trial by jury of any and all matters triable by right arising from, through or as a result of this Agreement. Disclosure and Conflict of Interest. BMG Money states that it has retained Southern Strategy Group of Miami to identify potential business opportunities with respect to the subject matter of this contract. Other than as stated above, BMG Money warrants that, in respect to itself, it has neither employed nor retained any other company or person, other than a bona fide employee working solely for it, to solicit or secure this Agreement and that it has not paid or agreed to pay any person, company, corporation, individual, or firm, other than a bona fide employee working solely for it, any fee, commission, percentage, gift, or other consideration contingent upon or resulting from the award or making of this Agreement. For the breach or violation of the provision, BMG Money agrees that the County shall have the right to terminate this Agreement without liability and, at its discretion, to offset from monies owed, or otherwise recover, the full amount of such fee, commission, percentage, gift, or consideration. Ethics Clause. BMG Money warrants that he/it has not employed, retained or otherwise had act on his/its behalf any former County officer or employee in violation of Section 2 of Ordinance No. 10-1990 or any County officer or employee in violation of Section 2 of Ordinance No. 10-1990 or any County officer or employee in violation of Section 3 of Ordinance No. 10-1990. For breach or violation of this provision the County may, in its discretion, terminate this contract without liability and may also, in its discretion, deduct from the contract or purchase price, or otherwise recover, the full amount of any fee, commission, percentage, gift, or consideration paid to the former County officer or employee. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF FLORIDA (WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES PROVIDING FOR THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION). VENUE FOR ANY ACTION UNDEER THIS AGREEEMENT SHALL BE IN MONROE COUNTY, FLORIDA. BMG Money, Inc. 1221 3r1CBce ve S"ft 10D0 MidAi LEI 33/31 By: L' 2�'ltdld A- Awuyi 14 • 0412 f%l{5 Attest: By: (0rM: County of Monroe Board of Commissioners 1100 Simonton Street, Room 268 Key West, FL 33040 Attn: Human Resources LI-A Attest: LIM MONROE COUNTY ATTORNEY A ROYfD 4S,TO,FORM: ASSIST NET C UNT�Y ATTORNEY Date a z; ms�'+ v k lion 1 � nmrii�d do.{u. 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