HERCULES CITY COUNCIL
RESOLUTION 22-
APPROVE THE PROGRAM DESIGN FOR YIFTEE DIGITAL GIFT CARD PILOT PROGRAM WHEREAS, the COVID-19 worldwide public health pandemic has resulted in numerous detrimental impacts on a global scale and includes national, regional, and local impacts; and WHEREAS, the City of Hercules, its residents and business community have experienced these impacts which includes significant impacts on Hercules’ business community; and WHEREAS, the Mayor and the City Council seek to assist the City of Hercules’ business community in their recovery from the impacts of the pandemic; and WHEREAS, On April 26, 2022, the City Council authorized the City Manager to execute an agreement with Yiftee for a Shop Local/Gift Card program utilizing the approved allocation of $65,000 funded by American Rescue Plan Act (ARPA); and WHEREAS, Yiftee has no set-up or monthly costs, and the approved budget of $65,000 of ARPA monies will pay for:
The $1+5% eDelivery fee (purchaser fee) plus a $1 bonus gift fee per card.
A bonus gift card to incentivize the use of the program and provide a benefit to all community members.
Branding costs associated with the development of the “shop local Hercules” campaign.
Marketing costs for advertisement and promotion of the program and related point-of-sale signage and posters for participating businesses.
WHEREAS, for eligible businesses, the following parameters is recommended for business participation in the Pilot Program:
Is a for-profit business in one of the following categories:
Retail
Restaurant/Cafe
Personal Services limited to the following only:
hair stylists
barbers
estheticians
massage therapists
gyms
nail salons
dry cleaners
tanning salons
pet groomers
fitness/specialty studios including martial arts, yoga, dance, and music Operates from a physical storefront (home-based businesses are not eligible) Maintains a current City business license
Has no open code enforcement actions
Has 20 or fewer full time equivalent employees as of December 1, 2021 Is either independently owned/operated or a locally owned chain (i.e., local outlets of chains or franchises headquartered outside of Hercules are not eligible) WHEREAS, the Mayor and the City Council may consider an additional allocation of APRA funding based on the Program's success. Metrics to measure the success of the Program could include:
The rate of sales of gift cards verses the rate of expenditure of cards (are the cards being used?) The total amount of gift cards sold (is marketing the program effective?) The breakdown in gift card value/denominations (what values are most popular? Perhaps bonus gift money could be adjusted to encourage sales) Where the cards are being spent (are they all in certain business categories, or distributed throughout the community?) Total cash infusion into the local economy
WHEREAS, staff also recommends that the bonus gift cards expire after six months (120 days) of the initial purchase to circulate the funds into the local economy. Expired bonus gift card funds then can be recirculated to the community.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hercules hereby approve the program design considerations for Yiftee Digital Gift Card Pilot Program.
The foregoing Resolution was duly and regularly adopted at a regular meeting of the City Council of the City of Hercules held on the 24th day of May, 2022 by the following vote of the Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________
DION BAILEY, Mayor
ATTEST:
________________________________
LAUREN BERGES, City Clerk/PIO
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