25Q - MEMORANDUM OF UNDERSTANDING

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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 2, 2009 TITLE: MEMORANDUM OF UNDERSTANDING WITH THE OFFICE OF THE GOVERNOR AND ORANGE COUNTY UNITED WAY - BANK ON SANTA ANA r ~i~' CITY MANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 15f Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER Approve entering into a Memorandum of Understanding with the Office of the Governor and Orange County United Way for the Bank on Santa Ana initiative. DISCUSSION In 2008, Governor Schwarzenegger launched Bank on California, a program to help Californians enter the financial mainstream. Half of all Californians do not have a savings account and one in five does not have a checking account. According to the PEW Charitable Trust, there are 23,800 households in Santa Ana that do not have a bank account with a financial institution. Bank on California is a partnership between the Office of the Governor, financial institutions, financial regulatory agencies, community organizations and Mayors. The Governor's Office and Orange County United Way (OCUW) want to bring this initiative to Santa Ana. OCUW will convene partners to focus on helping unbanked Santa Ana residents open starter bank accounts and enter the financial mainstream. Financial institutions will look at improving access to bank accounts by providing no cost or low cost banking services, accepting international identification cards and providing financial literacy courses. This will enable Santa Ana residents to begin saving, protect their money, build a credit history, gain access to lower-cost sources of credit and build wealth and assets. Bank on California programs have been successful in San Francisco, Los Angeles, San Jose, Oakland, and Fresno. A series of meetings with local partners have taken place to gauge the interest of local financial 25Q-1