RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LANCASTER CONFIRMING THE “SHOP. DRIVE. EARN.”
ECONOMIC INCENTIVE PROGRAM AS A VALID
MUNICIPAL AFFAIR
WHEREAS, on April 27, 2010, the voters of the City of Lancaster ratified the Charter of the City of Lancaster; and
WHEREAS, as a Charter City, the City of Lancaster is authorized to exercise plenary authority over municipal affairs, free from any constraint imposed by the general law and subject only to constitutional limitations; and
WHEREAS, the City of Lancaster is committed to fostering economic growth, supporting local businesses, and ensuring the retention and creation of jobs within the community; and WHEREAS, on November 8, 2022, the City Council authorized the appropriation of $500,000.00 for the Shop Local, Shop Lancaster Program using the Open Rewards platform with the purpose of job retention, economic revitalization, and ensuring the continued success of small businesses in light of the continuing COVID-19 pandemic; and
WHEREAS, the Shop Local, Shop Lancaster Program has generated over $3 million in economic impact and resulted in an 8x Return on Investment (ROI) directly to the City of Lancaster since its inception; and
WHEREAS, automobile sales represent a significant source of local sales tax revenue, which is essential for funding critical public services such as public safety initiatives and community programs; and
WHEREAS, the intention of the “Shop. Drive. Earn.” Economic Incentive Program is to create a multiplier effect that encourages spending at businesses located within the City limits, increasing the City of Lancaster’s sales tax revenue and bolstering activity for businesses that provide employment and contribute to the economic vitality of the City of Lancaster; and WHEREAS, any individual who makes a valid purchase or lease of a new or used vehicle at a participating dealership that sells both new and used vehicles in the City of Lancaster will be eligible to receive funds through the Open Rewards platform; and WHEREAS, the “Shop. Drive. Earn.” Economic Incentive Program will be funded through general fund dollars available in Fiscal Years 24-25 and 25-26; and WHEREAS, the terms “gift card,” “gift card funds,” and “Gift Card Program” are defined herein as funds made available in the Open Rewards platform for the purposes of the “Shop.Drive.Earn” Economic Incentive Program; and
WHEREAS, the “Shop. Drive. Earn” Economic Incentive Program will have accounting procedures that will ensure proper documentation and participating businesses will be required to provide consumers with eligibility instructions and provide them to the City of Lancaster upon request; and
WHEREAS, the appropriation of funds for the “Shop. Drive. Earn.” Economic Incentive Program serves the valid public purpose of stimulating the local economy and providing economic and community benefits to the residents of the City of Lancaster and makes certain that funds remain local in the City of Lancaster;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LANCASTER DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.
Section 2. Proclamation of Appropriations as Valid Municipal Affairs. The City Council hereby proclaims that appropriation of funds for the “Shop. Drive. Earn.” Economic Incentive Program represents a valid municipal affair, and therefore subject to the City of Lancaster’s plenary authority free from any constraint imposed by the general law.
Section 3. Direction to Establish Program Controls. Staff is directed establish program parameters and controls to address the following:
a.Ensure funds are spent directly at participating businesses. b. Ensure that any community partners have policies and procedures that align with applicable city guidelines.
c. Ensure gift card funds are issued and used only for the purposes stated herein and the value distributed to each recipient does not exceed the per person limit. d. Maintain accountability for all gift cards/funds distributed through the Gift Card Program that are purchased and distributed.
e. Designate separate personnel responsible for each stage of the handling and transfer of gift card funds, such as monitoring, eligibility, distribution, usage, and inventorying of the gift cards.
f. Review and reconcile any gift card policy forms.
g. Ensure appropriate documentation is always maintained and available for review by designated personnel.
h. Maintain complete and accurate inventory records.
i. Implement a policy to report lost, stolen, or abused gift cards/gift card funds. j. Ensure immediate reporting of any shortages, discrepancies, suspected fraud, or abuse to management for review and investigation.
k. Restrict access to gift card inventory records to authorized employees. l. Maintain a log of individuals who access gift card inventories. m. Maintain documentation to allow the Gift Card Program to be audited, which would include:
a. Identity of the recipients of gift cards;
b. Back up documentation showing how the recipients qualified; c. Documentation provided by recipients to show proof of qualification. d. Consider retaining all documentation for no less than five years. n. Prevent diversion via app security breaches.
o. Maintain confidentiality of gift card recipient tax ID numbers. p. Protocols for the proper reporting of gift card disbursements in accordance with applicable tax laws.
q. Inform participating businesses that California law prohibits businesses from charging service fees on gift cards.
Section 4. Effective Date of Resolution. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED and ADOPTED this _______ day of _________, 2025, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVED:
ANDREA ALEXANDER R. REX PARRIS
City Clerk Mayor
City of Lancaster City of Lancaster
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES }ss
CITY OF LANCASTER }
CERTIFICATION OF RESOLUTION
CITY COUNCIL
I, ________________________________, ___________________________________ City of Lancaster, California, do hereby certify that this is a true and correct copy of the original Resolution No. , for which the original is on file in my office.
WITNESS MY HAND AND THE SEAL OF THE CITY OF LANCASTER, on this _________ day of ________________, ________.
(seal)
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