Alternative Currency for Oakland Residents & Neighbors (The Path to a prosperous and unified...
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Transcript of Alternative Currency for Oakland Residents & Neighbors (The Path to a prosperous and unified...
Alternative Currency for Oakland Residents & Neighbors
(The Path to a prosperous and unified community.)
ACORN
Coalition Proposal presented to Councilmember Quan
City Council Finance Committee in May
City of OaklandLegislative File Number 09-0321 (version 1)
TitleSubject: Municipal Identification CardsFrom: Vice Mayor Ignacio De La Fuente
Recommendation: Adopt An Ordinance Amending Chapter 2.34, Title 2, Of The Oakland Municipal Code Authorizing A Municipal Identification Card Program To Provide For The Issuance Of Municipal Identification Cards To Residents Of The City Of Oakland For The Purposes Of Improving Public Safety,
Increasing Civic Participation, And Supporting Local Commerce
City Council direction to staff in June
City Clerk Report for Finance Committee meeting on October 13
Intent Letter to Councilmember Quan from Vendor 1
“The specific objective of this gift for use of our Company’s unique technology services to the City of Oakland is to enhance the capabilities and benefits of Oakland’s Resident ID Card. Through the donation of Company services, the Resident ID Card may be activated by the individual cardholder to serve as a “Universal/Mobile Services Card” which will allow for a variety of basic financial services such as direct deposit of wages, electronic bill payments (including City fees and services), and domestic/international remittances, among other service options.”
Vendor 1’s stated intent to Cost Cover & bring additional revenue to
the City“Company will prepare an overall business plan that will take into
consideration and project all costs associated with the production, distribution, marketing and operation of the Cards, as well as calculations of all the net cost savings to be realized from the use of the Card for Oakland residents and businesses as well as Oakland government agencies. In addition, the business plan will provide recommended charges relating to the purchase of the Card as well as charges for transactions through the Card. Projected revenue to be generated by the City as well as projected cost savings realized by the City will be included. The intent of course is for the City’s projected revenue and cost saving to equal or exceed the projected costs of such production, distribution, marketing and operation and for the resident cardholders’ projected cost savings to equal or exceed the charges assessed upon purchase and use of the Cards.”
Layout schematic from Vendor 2
Card Processing Bank Web
Application
Card Processing
Mobile Banking Processing
System
Card Issuing Bank Inter. Remittance
Gateway
City of Oakland Debit/Remittance Card Distribution
(Employees, Employers, Merchants,
Banks)
Oakland Debit Card Registration
and Loads
Card Issuing Bank
Local Currency Bank
Local Currency Settlement
International Remittance
Partners
Mobile Network
CardHolder Access Registration, Inquiries,
Money Transfers
IVR
Cust Service
Web Acces
City of Oakland, Local Currency
Bank Cash Loads
Card Issuing Bank and Processor Servicing
Sending Cardholder & Mobile
Oakland Merchant
POS Network
Global Payout
Channels
Payroll Direct Deposit from Cardholder Employers
Federal Banking Privacy Act
Benefits & Responsibilities
Workers, Residents, & Students:
*purchase ID/currency card for $10 - $15, *receive ACORN currency worth $50 - $60 to start
*receive banking account associated with the card
*get discounts for the use of the card with merchants and the City
*manage the account by cell phone or over the internet
*load ACORN e-money on the card at local stores
*get 50% reduction in the cost of sending remittances to other countries
*freely convert US$ to ACORN
*receive part of pay in ACORN
*get official public ID recognized by the Police Department, banks, and other agencies
Merchants:
*accept the ACORN
*negotiate to partially pay employees in ACORNs
*give discounts for customers that use the ACORNs
*get discounts for all fees and costs to the City when merchant pays with ACORNs
*become eligible for 0% merchants loans in both ACORNs and US$
*receive advertising and promotion from the marketing of the City to attract ACORN customers
Benefits & Responsibilities
City of Oakland:*sanction official ID/currency card*contract with financial institution to mange the card and associated accounts*make agreements with vendors and other agencies like the Peralta College District and the Oakland
Public School District*give discounts for all City fees and charges if paid in ACORNs*negotiate with unions and partially pay City employees in ACORNs*spend income (part of the 1.75% industry standard for use of electronic cards) from the use of the
card on major publicity/marketing of the participating businesses and promote card to residents, students, and neighbors
Financial Institution:*become financial institution of record, take jurisdiction over ACORN accounts*contract with electronic card service*charge a flat fee, and 0% interest, for short term business loans of US$ that were converted to
ACORN to participating merchants and 0% interest on individual loans made in ACORNs*charge a "parking fee" on ACORN spending accounts to encourage ACORN currency circulation
rather than hoarding*receive additional accounts from participant individuals and merchants because of the convenience
Worgl Schillings
'It was the fact that the community or regional money could be used to pay taxes that made it acceptable and successful'
GoLocal Cooperative in Sonoma County
The Path to a prosperous and unified community.
Tell people something they know already and they will thank you for it.
Tell them something new and they will hate you for it.