City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01669 10/29/2024 Consent Item 4.
City Council COVID-19 Response: ARPA Framework and Funding Priorities: Contract Amendment for Citywide e-Gift Card Program “Shop916 Local” File ID: 2024-01669
Location: Citywide
Recommendation: Pass a Motion authorizing the City Manager or City Manager’s designee to execute Contract Amendment No. 1 to City Contract Number PRC002625 with Yiftee Inc. for an amount not to exceed $147,500 for a new total not-to-exceed amount of $300,000.
Contact: Valerie Mamone-Werder, Development Project Manager, (916) 808-5451, [email protected]; Leslie Fritzsche, Community Investment Manager, (916) 808-5450, [email protected]; Office of Innovation and Economic Development Presenter: None
Attachments:
1-Description/Analysis
2-ARPA Reinvestment Fund Programs
3-Amendment No. 1
Description/Analysis
Issue Detail: On October 19, 2021, City Council adopted Resolution No. 2021-0313, which authorized the City Manager or City Manager’s designee to accept $112.2 million of American Rescue Plan Act of 2021 (ARPA) funding; establish the ARPA Reinvestment Fund (Fund 1003); allocate $112.2 of ARPA funds to provide government services and budget the resulting available resources in the ARPA Reinvestment Fund to assist with the recovery and reopening resulting from the impacts of COVID-19; and establish grant, multi-year, and capital improvement projects and establish the necessary revenue and expenditure budgets in the appropriate funds or projects to properly track and report on the use of the ARPA funding for specified programs, including $8.2 million for small business priorities. Resolution No. 2021-0313 allocated $250,000 toward Citywide Reopening of the E-gift card program. The Sacramento e-Gift Card program allows an unlimited number of businesses Citywide to register to participate at no charge. Customers purchase e-Gift cards online for usage at participating City of Sacramento businesses.
File ID: 2024-01669 10/29/2024 Consent Item 4.
In November 2021, the Office of Innovation and Economic Development requested proposals from service providers to administer a local gift card program to assist City of Sacramento businesses by bolstering sales and encouraging shopping at eligible local businesses. The goal of the program is to generate revenue and encourage shopping at local participating businesses. The City evaluation team reviewed the proposals received and determined that Yiftee, Inc. (“Yiftee”) offered the best value to the City. In December 2021 the Office of Innovation and Economic Development entered into Contract No. 2021-1368 with Yiftee establishing a budget of $200,000 for the program. Contract No. 2021-1368 expired on June 30, 2023.
In November 2023, contract number PRC002625 was executed with Yiftee for continued support of the e-Gift card program. The initial request for proposals allowed the City to award an additional contract when deemed necessary to meet the City’s need. A budget of $152,500 was established for the program under this contract. To date, the City has invested $257,000 toward the e-Gift card program which has leveraged $796,000 in total gift card sales benefiting over 120 businesses in the City. The city’s investment has gone towards promotions that have incentivized gift cards sales. The most recent promotion during the 2023 holiday season generated $258,000 in gift card sales. At this point, 84% of the 12,100 gift cards have been redeemed. This number will increase as cards continue to be redeemed.
Staff recommends Council pass a motion authorizing the City to execute Contract Amendment No. 1 to City Contract Number PRC002625 with Yiftee to continue program funding through December 2026 and align with City Manager authority for contracts exceeding $250,000.
Policy Considerations: The proposed action is consistent with both the adopted ARPA Framework and Resolution No. 2021-0313.
Economic Impacts: The proposed action will further promote economic recovery and growth in the City of Sacramento.
Environmental Considerations: The proposed action is not a project under CEQA because it relates to government fiscal activities that do not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment. (Cal. Code Regs., tit. 14, §§15060(c)(3), 15378(b)(4)). Even if the proposed action is a project, it is not subject to CEQA because it can be seen with certainty that there is no possibility that it may have a significant impact on the environment (Cal. Code Regs.,tit.14, §15061(b)(3)).
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
File ID: 2024-01669 10/29/2024 Consent Item 4.
Rationale for Recommendation: Approving the motion authorizing Contract Amendment #1 to City Contract Number PRC002625 with Yiftee will continue program funding through December 2026 and allow the City to incentivize consumers’ purchases of electronic gift cards for use at local businesses that have signed up for the Program. The goal of the Program is to mitigate negative economic impacts of COVID-19 by encouraging people to shop and dine at local participating small businesses.
Financial Considerations: There is sufficient funding available (ARPA Reinvestment Fund, Fund 1003) in the ARPA Small Business Support Project (I02612000) to complete the recommended action.
Local Business Enterprise (LBE): Although Yiftee is not an LBE, the beneficiaries of the program are all City of Sacramento businesses. All $147,500 of increased funds will go to local Sacramento businesses.
Attachment 2
ARPA Reinvestment Fund (Fund 1003) $113,782,879
Program Description Approved
Expenditure Category
Aggie Square Job Center 1,000,000 3
Al Fresco Dining Program Development 189,139 1
Animal Services for the Homeless (ASHR) Response Team 529,520 2 ARPA Grant Liaison Consulting Services 1,049,943 5
Arts and Cultural Nonprofits Grant Matching Funds 2,000,000 4 Arts Journalism Grant Program 250,000 4
Business Compliance Unit (BCU) Night Team 1,473,669 5
Center for Workers' Rights 550,000 3
Childcare Services 1,500,000 3
Children and Youth Services Program 720,000 3
Citywide Equity Study 250,000 1
Code Enforcement 205,683 2
Community Response Staffing Expansion 201,340 2
Comprehensive Siting Plan - Location Buildout 1,568,236 2 Comprehensive Siting Plan - Meadowview Acres Tree Removal 224,999 5 Comprehensive Siting Plan - Property Acquisition 12,312,624 2 Continuation of Existing Homelessness Programming 6,735,807 2 COPS Hiring Program Grant Matching Funds 4,044,804 5
COVID-19 Homeless Response Program 2,900,000 2
Creative Businesses 1,750,000 4
Creative Economy Focused Youth Workforce Development 1,250,000 4 Cultural Arts Awards 250,000 4
Digital Equity Response Program 250,000 3
Direct Investment Program 750,000 3
Downtown Core and Old Sacramento Revitalization 3,225,403 1 Downtown Ice Rink Piping Replacement 286,395 1
Food Justice Task Force 1,000,000 3
Forensiclean Extended Services 1,000,000 2
Forgivable Loan Program 125,000 1
FY2022/23 Affordable Housing Project 11,210,003 2
Gang Prevention and Intervention 1,500,000 3
Grants Management Technology System 180,000 5
Grove Emergency Bridge Housing 92,500 2
Illegal Dumping Support 131,997 2
Individual Artists and Creatives 2,625,000 4
K Street Lighting 332,755 1
Labor Negotiations 9,893,510 5
Lighting and Safety Enhancement 870,144 1
Local Food Bank Provider Support 500,000 3
American Rescue Plan Act (ARPA) Reinvestment Fund Programs (reflects Council actions through 10/15/2024)
Attachment 2
Program Description Approved
Expenditure Category
Old Sacramento Boardwalk Repairs 600,000 1
Northgate Boulevard Economic Recovery Plan 3,000,000 1
Northgate Boulevard Fence Repair Project 2,000,000 1
North Market Public Lighting 74,453 1
North Sacramento Code Enforcement and Outreach 450,000 1 North Sacramento Economic Recovery Plan 4,875,000 1
Public Records Staffing 3,319,727 5
Public Works Support of Homelessness Programming 572,000 2 Respite Centers Program 2,240,290 2
Rio City Café Sewer Replacement 230,000 1
Sacramento Inclusive Economic Development Collaborative 2,365,000 1 Sacramento Native American Health Center 100,000 1
Small Business Priorities 8,526,711 1
Substance Use Respite and Engagement Program 1,300,000 2 Tourism Recovery 1,875,000 4
Towing Administration Fee Reform 200,000 1
Vaccine Outreach and Education 1,000,000 1
Workforce Training Programs 2,750,000 3
Youth Pop-Up Program 1,300,000 3
Youth-Serving Organizational Resiliency Fund Grant Program 480,000 3 $112,186,652
ARPA Balance $1,596,227
Allocation of ARPA by Mayor/Council Priorities Category Funding Small Business and Commercial Corridor Revitalization 1 28,700,000 Homeless and Housing Commitment 2 41,000,000
Youth, Workforce Training, and Gang Prevention 3 12,300,000 Arts, Creative Economy, and Tourism 4 10,000,000
Citywide Organizational Needs 5 20,186,652
Total 112,186,652$