Item Description:
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Authorization to utilize set-aside contracting authority for Amd 4 to Agmt CM00000534 with Better Futures Minnesota f/k/a Network for Better Futures, to provide routine exterior property inspections of Hennepin County tax-forfeit properties, 05/01/20-12/31/24, NTE $100,000
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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 to approve Amendment 4 to Agreement CM00000534, with Better Futures Minnesota for routine exterior property inspections of Hennepin County tax-forfeit properties, extending the contract period through December 31, 2024, not to exceed total of $100,000 be approved; that the Chair of the Board be authorized to sign the Agreement on behalf of the county; and that the Controller be authorized to disburse funds as directed.
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Background:
Better Futures Minnesota (“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 Land Information and Tax Services (“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 (“LITS”) staff will manage the proposed contract. LITS performs the statutory functions of Hennepin County Auditor for administration and disposition of State of Minnesota tax-forfeit properties under delegation of authority from the County Board. Tax-forfeit properties are acquired subsequent to absolute forfeiture under laws governing the enforcement of nonpayment of real property taxes. Revenues from sales and leases of these properties are deposited into the Forfeited Tax Sale Fund agency fund. County tax-forfeit property management expenses and related operating costs, including costs under the proposed Agreement, are paid from the fund.
The department seeks to continue contracting with BFM for the routine exterior property inspections of Hennepin County’s tax-forfeit properties, to continue a valued and successful business relationship and to support Hennepin County’s disparities reduction efforts through supporting the BFM enterprise’s program services and mission. This contract was directly negotiated as permitted under the set aside statute (Minn. Stat. § 383B.145, Subd. 5), and not derived from a competitive bid. To date, $69,519.28 has been expended from the contract.
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