CITY COUNCIL STAFF REPORT
DATE: JUNE 24, 2026 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENT NO. 2 TO AGREEMENT NO. 24I154 WITH YIFTEE, INC., TO PROVIDE ONLINE GIFT CARD MANAGEMENT AND
DISTRIBUTION SERVICES FOR THE SHOP LOCAL PROGRAM
FROM: Scott C. Stiles, City Manager
BY: Economic Development
SUMMARY:
This action will approve Amendment No. 2 to Agreement No. 24I154 with Yiftee, Inc., in the amount of $150,000 for a revised contract amount not to exceed $375,000, and extend the term through July 8, 2027, for online gift card management and distribution services for the shop local (Love Local) program. The Love Local card program has successfully captured consumer dollars by providing the ability to buy gift cards that can be spent at (to date) 130 enrolled businesses.
RECOMMENDATION:
1) Approve Amendment No. 2 (Attachment A) to Agreement No. 24I154 with Yiftee, Inc. to provide online gift card management and distribution services for the shop local (Love Local) program in the amount of $150,000 for a revised contract amount not to exceed $375,000, and extend the contract term through July 8, 2027; and,
2) Authorize the City Manager and City Attorney to make non-substantive changes and execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure form (Attachment B), Yiftee, Inc., is a Delaware corporation.
BACKGROUND:
In June 2024, the Business Retention Subcommittee discussed shop local programs that would enhance off-season sales, particularly in the summer, where sales tend to slow the most. A number of ideas were reviewed, and support was voiced for an online shop local
City Council Staff Report
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gift card. Staff researched shop local gift card management systems that could provide an easy-to-use, free platform for local businesses to participate in and for consumers to spend dollars at local Palm Springs (only) merchants.
In July 2024, the City Council approved the pilot program and Agreement No. 24I154 (Attachment C) with Yiftee, Inc. to establish the Love Local Palm Springs program as a digital gift card and local business support initiative designed to encourage consumer spending at participating Palm Springs businesses. The original agreement authorized $75,000 for a one-year pilot effort. Due to the success of the initial program, a separate pilot program specific to the 2024 holiday season was administratively executed in the amount of $25,000.
In June 2025, the City Manager approved Amendment No. 1 (Attachment D) in the amount of $150,000, extending the program through July 2026, for a revised contract amount not to exceed $225,000 to support expanding the campaign implementation and merchant participation.
The Love Local program primarily operates through bonus-value digital gift cards redeemable at participating Palm Springs businesses. The consumer purchases a Love Local gift card and matching dollars are included 2 for 1. Campaigns have focused heavily on summer economic support, when many local businesses experience seasonal declines in customer activity.
STAFF ANALYSIS:
Program survey data and redemption activity indicate that the Love Local initiative has generated meaningful consumer participation and local business engagement during its first two years of operation.
Consumer survey results showed 49% of respondents participated primarily to take advantage of bonus value incentives; 42% participated specifically to support local businesses; 51% reported discovering new businesses through the program; and 85% of respondents reported being “Satisfied” or “Very Satisfied” with the program overall.
Consumers most frequently utilized the cards at restaurants and cafés, with a smaller percentage spending at retail businesses, reinforcing the program’s role as a local spending catalyst during slower economic periods.
Business survey feedback indicated Summer as the number one time for the program and was supportive of continuation (~66%). Many businesses cited value in increased visibility, customer traffic, and community participation. A majority of respondents (~52%) indicated they would likely or definitely participate again in future campaigns, with another third say they would “probably” enroll again (~26%). At the same time, businesses identified several operational areas requiring improvement, including easier redemption procedures and staff training, improved customer and merchant communication, better visibility and marketing for participating businesses; simplified digital wallet and card-use City Council Staff Report
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processes, and expanded outreach and campaign awareness (64% request more social media). The 2025 survey results are included herein as Attachment E.
FY27 Program Plan
Amendment No. 2 would support continuation and refinement of the Love Local program through the following campaign periods:
1.Summer Love Local Campaign (Primary Program) - $100,000 The Summer campaign would continue to function as the City’s principal seasonal business support initiative during lower-volume summer months. Funding would primarily support bonus-value gift card incentives, merchant onboarding, marketing, outreach, and platform administration.
This program will run July 13, 2026, to October 31, 2026.
2.Festival and Shoulder Season Activation Campaign - $50,000 A smaller portion of funding would support targeted activations during festival and shoulder-season periods (April-May) where strategic consumer spending incentives may help encourage broader local business participation and visitor engagement outside of traditional tourism corridors.
This program will run April 1, 2027, to May 31, 2027.
The FY27 program would also include operational improvements informed by business and consumer feedback, including improved merchant onboarding and training, expanded marketing and communication strategies, enhanced visibility for participating businesses, simplified redemption and customer-use procedures, and additional business outreach to broaden participation across business sectors and geographic areas of the City.
The Love Local gift cards must be spent during designated times. (If the consumer does not spend during the designated time, the base card is still valid for use at Palm Springs enrolled businesses, but City bonus dollars expire.) Yiftee, Inc., manages the entire program on behalf of the City.
ENVIRONMENTAL ASSESSMENT:
The proposed action is not a project under the California Environmental Quality Act (CEQA) pursuant to Section 15378 of the CEQA Guidelines because it constitutes an administrative and organizational activity that will not result in a direct or indirect physical change to the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the City Council Strategic Plan Broad Goal of Economic City Council Staff Report
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Development and with multiple principles, initiatives, and implementation actions contained within the Palm Springs Economic Development Strategic Framework.
FISCAL IMPACT:
Approval of the proposed Amendment No. 2 authorizes an additional $150,000 for FY27 program implementation, increasing the total agreement amount with Yiftee, Inc. to $375,000, and extends the term through July 8, 2027. Funding is available in FY27 Economic Development budget allocation for business retention, economic activation, and local business support programming.
REVIEWED BY:
Economic Development: Dean Grubl
City Manager: Scott Stiles
ATTACHMENTS:
A. Amendment No. 2 to 24I154
B. Business Disclosure Form
C. Amendment No. 1 to 24I154
D. Original Contract 24I154
E. Love Local survey results (2025)