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.