Item Description:
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Amd 5 to Agmt A178204 with Better Futures Minnesota f/k/a Network for Better Futures, to provide lawn care, snow removal and salt/sanding services for maintenance of State of Minnesota tax-forfeit properties administered by Hennepin County, ext end date to 12/31/25 and incr NTE by $500,000
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Resolution:
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BE IT RESOLVED, that the Chair of the Board and County Administrator be authorized to utilize the set-aside contracting authority under Minn. Stat. § 383B.145, Subd. 5 for Amendment 5 to Agreement A178204 with Better Futures Minnesota, to provide lawn care, snow removal, and salt/sanding services for maintenance of Hennepin County’s inventory of State of Minnesota tax-forfeit properties, extending the contract period through December 31, 2025 and increasing the not to exceed amount by $500,000 for a new total not to exceed amount of $1,250,000, a 3% increase in pricing, be approved, that the Chair of the Board be authorized to sign the amendment on behalf of the county; and that the Controller be authorized to disburse funds as directed.
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Background:
This request seeks approval of amendment 5 to the County’s agreement with Better Futures Minnesota (BFM) for lawn care, snow removal, and salt/sanding services at tax forfeited properties managed by the Land Information and Tax Services Department (“LITS”). This amendment adds one year to the contract, adds $500,000 to the not to exceed (“NTE”), and includes a 3% increase in pricing. The additional expenditure authority is needed because there has been an increase in use of this contract that is expected to continue into 2025. The original contract was directly negotiated pursuant to the set aside statute (Minn. Stat. § 383B.145, Subd. 5) and contains provisions consistent with the findings requirement of the statute. To date, almost $750,000 has been expended from the contract.
BFM is a Minnesota nonprofit corporation and social enterprise that, since 2008, has provided employment to hundreds of men who are chronically unemployed or formerly incarcerated, while generating revenues to support its mission, utilizing four fundamental components: jobs, housing, health, and coaching supports. Since 2010, providing services under another contract with LITS, BFM Enterprise Division has enrolled more than 1,000 participants in its workforce development services, employing more than 500 at-risk men to provide lawn services and snow removal.
BFM reports that their participant recidivism rate in 2022 was 8%, compared to the national rate of 25% for individuals that return to prison within their first year of being released. Further, the average annual cost of incarcerating an individual in Minnesota is over $62,800 per year, compared to the average annual cost of $18,626 for each BFM participant. BFM participants are given the opportunities to transform into engaged citizens in their communities, who are able to pay their taxes and child-support payments. BFM has calculated a social return on investment of $3.61 for every dollar invested in the program model.
Land Information and Tax Services staff will manage the proposed contract amendment. LITS performs the statutory functions of the county auditor for administration and maintenance of state of Minnesota tax-forfeited lands under delegation of authority from the County Board. Revenues from sales and leases of tax-forfeit properties are deposited into the Forfeited Tax Sale Fund agency fund. County tax-forfeit property management and related operating expenses are paid from this fund, including the costs under the proposed Amendment 5 of Agreement A178204.
This board action request aligns with Hennepin County disparity reduction efforts by supporting employment and income opportunities for individuals who are chronically unemployed and/or who are returning to the community from the corrections system.
recommendation
Recommendation from County Administrator: Recommend Approval