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Home My WebLink AboutC40810 Funding Agreement Coachella Valley Economic Partnership CVEP - FYs 20-21 through 22-23Contract No. C40810 STAFF REPORT CITY OF PALM DESERT ECONOMIC DEVELOPMENT DEPARTMENT MEETING DATE: October 29, 2020 PREPARED BY: Deborah S. Glickman, Business Advocate REQUEST: Approval of a three (3) year Funding Agreement between the City of Palm Desert and the Coachella Valley Economic Partnership (CVEP) constituting CVEP's funding for FY 2020/2021, FY 2021/2022, and FY 2022/2023 in the amount of $50,000 annually. Recommendation By Minute Motion: 1. Approve the attached three (3) year Funding Agreement in the amount of $50,000 per fiscal year ($150,000 total) between the City of Palm Desert and the Coachella Valley Economic Partnership for the City's annual investments for FY 2020/2021, FY 2021/2022, and FY 2022/2023. 2. Authorize the Mayor to execute the Agreement, and allow the City Attorney to make non -substantive changes. Funds in the amount of $50,000 are available in the FY 2020/2021 Economic Development Department Budget, Account No. 1104430-4322100. Funds for FY 2021/2022 and FY 2022/2023 will be subject to appropriation in future fiscal budgets. Strateqic Plan Obiective The approval of the proposed use of funds aligns with the City's Envision Palm Desert Strategic Plan: • Economic Development Priority opportunities. Executive Summary 1: Expand job and business creation CVEP is a Coachella Valley wide economic development organization with a mission to bring together the region's partners — including businesses of every size, the nine cities, unincorporated areas, the tribal governments, regional governments, and the Greater October 29, 2020 — Staff Report CVEP Funding Page 2 of 3 Palm Springs Convention & Visitors Bureau to create a stronger year-round economy. In order to assist with its mission, in the past the City of Palm Desert has invested in CVEP with an annual contribution of $50,000, Staff believes in the positive economic development efforts CVEP brings to the entire Coachella Valley and recommends funding in full at this time. Discussion The City's investment in CVEP is used to support its ongoing work to increase economic development and employment opportunities and to diversify the Coachella Valley's economy, thereby strengthening the City's fiscal wellbeing. This work has been particularly poignant during the COVID-19 crisis began in mid -March 2020. Since then, CVEP has taken a leadership role in assisting the region through the crisis, including leadership with the Coachella Valley Economic Recover Task Force and the appointment of CVEP's CEO Joe Wallace to the Riverside County Economic Recovery Task Force. Furthermore, CVEP has conducted studies on the effects of the COVID-19 crisis on employment and the economy in the Coachella Valley. An example of one such effort is the CVEP Employment Impact of COVID-19 City of Palm Desert study (see attached). In addition to collecting, analyzing, and distributing data, CVEP has assisted numerous Palm Desert businesses to navigate and acquire Federal Small Business Administration funding such as the Paycheck Protection Program loan and the Economic Injury Disaster Loan. It has also conducted educational outreach for Coachella Valley businesses both one-on-one and virtually. One example of its virtual education is the CVEP webinar series entitled The Economic Future of the Coachella Valley, which airs weekly. CVEP is a vital part of economic development in the Coachella Valley and is assisting to create a more robust year-round economy, including in Palm Desert. Approval of the City's annual funding for three (3) years in the amount of $50,000 per year will allow the CVEP to continue its work with Palm Desert businesses and the Coachella Valley as they move beyond the COVID-19 crisis and into economic recovery. Highlights of the Agreement The Funding Agreement between the City and CVEP defines the relationship between the two organizations. Included in the document is an overview of CVEP's role as an economic developer in the Coachella Valley and a clause defining it as an independent contractor, and not an employee of the City. Additionally, it highlights that the City shall not be responsible for the employees of CVEP and details the City's insurance and hold harmless requirements. The Agreement allows the City to cancel payments to CVEP in FY 2021/2022 and FY 2022/2023 and requires that CVEP provide a quarterly written report to the City Manager detailing its activities in the past quarter and highlighting how many Palm Desert businesses it has assisted. October 29, 2020 — Staff Report CVEP Funding Page 3 of 3 Fiscal Analvsis Funds in the amount of $50,000 are available for the City's FY 2020/2021 Budget, in the Economic Development Department Account No. 1104430-4322100. Funds for FY 2021/2022 and FY 2022/2023 will be subject to appropriation in subsequent fiscal budgets. LEGAL REVIEW RH Robert W. Hargreaves City Attorney DEPT. REVIEW Ma g1i.4,v ALvawerz Martin Alvarez Director of Economic Development FINANCIAL REVIEW Janet M. Moore Director of Finance Interim City Manager, Randy Bynder: Ranz'' $yndw ASSISTANT CITY MANAGER -Andy Firestine Andy Firestine Assistant City Manager Attachments: CVEP Funding Request CVEP Employment Impact of COVID-19 City of Palm Desert City of Palm Desert/Coachella Valley Economic Partnership Funding Agreement e.evA040ate(JOY11j"011C .... *' ..'wo."i Ok-"4 lmmovkv�*w Coachella Valley Economic Partnership 3111 East Tahquitz Canyon Way Palm Springs, CA 92262 City of Palm Desert Attn: Martin Alvarez 73-510 Fred Waring Drive Palm Desert, CA 92260 Description ANNUAL IIVVESTMENT2020-2021 11 Total Invoice Date i Invoke # 7l112020 II 2522 Amount 50.000.00 $50,000.00 r r r r a■ u • . ■ DRIVING INMDVAiiOH AND ENTERPRISE 0evate ° . . o • . n s ■ • ■ • July 6, 2020 ■ r •• ■ ■ • a ■ • ■ •r•rar Martin Alvarez + r r ■ • City of Palm Desert * ■ • ■ r 73-510 Fred Waring Drive • a ■ • a • Palm Desert, CA 92260-2578 * ■ r r ■ r r �arr�r Dear Martin, ■ a • • r r Enclosed is an invoice for your 2020-21 CVEP anninvestment. 0ual a • ■ ■ ■ • • a ■ a ■ We want to thank you for all your support in the past and look forward to continuing our + r ■ a partnership in the future. We are fortunate to have the support of our community partners ■ ■ ■ r ■ a whose vision includes the value of regional economic development. $ • r ■ a S a a r! a Partners like the City of Palm Desert are the foundation of our organization — this helps to create • • ■ ■ a strong and vibrant community where our economic development efforts are creative and a • r r ■ ■ focused. e * r ■ ■ a ses■■*■ Thank you again far your support. # ■ • ■ • Best regards, a • a ■ is ■ i a r■r w a a r a r Joe W la ` ■ ■ # r : o CEO/ hief novation Officer ? • • a • o ■ r r • _ e a r • ■ a r n ■ ■ ■ r r Q a • • • . +r r r • .t r. • r • • r a r • r • i f/ a • r • A f � ■ a • a a a ■ a ■ a a• r a r a • i ■ � ■ � A ■ ■ ■ r elevate May 18, 2020 Mayor Gina Nestande City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Dear Mayor Nestande, DRIVING INNOVATION AND ENTERPRISE On behalf of the Coachella Valley Economic Partnership (CVEP) we are pleased to provide you with a Palm Desert exclusive version of the CVEP Employment Impact of COVID19 for the Coachella Valley that we authored and released to the public on May 4, 2020. As I am sure you know, CVEP is the Coachella Valley's only regional economic vitality organization devoted to economic development, research and charting a path to a future in which prosperity is both achievable and sustainable. Our mission is to promote a diversified, year-round economy by facilitating programs that stimulate job creation in key industries that pay a thriving wage while offering opportunities to all people of the Coachella Valley. We have been reminded of the vulnerability of our substantially tourism -based economy by the COVID19 epidemic and the lockdown responses to it. Greater Palm Springs and the Coachella Valley are suffering greater job lasses and a more uncertain future because of our over -dependence on tourism and hospitality. CVEP's mission of diversification of the economy through sustained and appropriately funded regional actions has never been more important to the future prosperity of the 9 cities of the Coachella Valley. As Dr, Manfred Keil reminds us each year at the CVEP Economic Summit, "we are always the first in and last out of any recession and ours are deeper". Those words have never loomed so ominous. Whatever label future economists attach to the aftermath of COVID19 and our responses to it, our region's vulnerabilities have been exposed and some of the damage will be permanent. In past recessions, tourism has always snapped back quickly and accelerated beyond previous levels. No economist has projected that this will be the case this time. 3111 EAST TAHQVITI CANYON WAY PALM SPRINGS. CALIFORNIA 92262 PH 760 3401575 - FX 760-548.0370 WEB CVEPCOM We did not choose to live through a pandemic but we can choose the actions we take to move forward in a way that mitigates the depth of the next economic disruption that happens. The Coachella Valley, Las Vegas and Hawaii are the hardest hit economies in the United States and it is for the same reason. The time is now to mobilize an appropriately funded and sustainable effort to assure that nothing this extreme ever happens again. i am asking you during what is a sobering budgeting exercise to maintain, increase or re-establish Palm Desert's investment in CVEP. Our mission is the remedy for the economic malaise we are currently experiencing and will continue to suffer through. It is time for transformation. Please join us in taking a long view of what living in this beautiful place can be if we work together and take actions to achieve highly impactful goals. Sincerely, Joe J. Wallace, CEO and Chief Innovation Officer Coachella Valley Economic Partnership Cc: Kathleen Kelly, Mayor Pro Tem Jan Harnik, Council Member Sabby Jonathan, Council Member Susan Marie Weber, Council Member Laurie Aylaian, City Manager 14ardn Alvarez, Economic development Dii wWr In their study Employment Impact of COVID-rg: Southern California, the Los Angeles County Economic Development Corporation (LAEDC) estimates 31.9% unemployment by the end of May 2020 for the Riverside -San Bernardino -Ontario metropolitan statistical area (MSA), comprising Riverside and San Bernardino Counties. Applying this unemployment estimate to Palm desert, a projected 7,358 residents will lose their jobs, a loss of 32% of the city's current estimated workforce of 23,432. Not all city residents will lose jobs at the same rate. The LAEDC used methodology' developed by the St. Louis Federal Reserve Bank to estimate probable unemployment rates and jobs losses for each of the occupation sectors listed in these tables. For Palm Desert, the occupations with the largest total losses are predicted to be in the sectors of Sales and Sales Related, Food Preparation and Serving Related, and Personal Care and Service. Personal Care and Service jobs are projected to have the largest percentage loss of 71.3%. Sales and Sales Related and Food Preparation and Serving Related job sectors are estimated to have the greatest total losses. These two sectors account for 26% of all jobs for residents of Palm Desert. They also represent the second and third highest estimated percentage job losses, at 6o.4% and 68.5% respectively, with an estimated loss of 3.817 jobs, over half (52%) of all projected job losses. The top five job sectors for Palm Desert residents are estimated to lose nearly 4.600 jobs, 63% of the total estimated job losses. PROJECTED JOBS LOST BY OCCUPATIONAL GROUP, MAY 2020 Sales and Sales Related -60.4% Food Preparation and Serving Related •6-9.5% Personal Care and Service -71.3% Office and Administrative Support -16.9% Arts, Design, Entertainment. Sports and Media -51.140 Education Instruction and Library ] -21.7% Community and Social Service -58A% Construction and Extraction W .22.1% Healthcare Practitioners and Technicians . -8.8% Healthcare Support -26.5% Management -5.0% Installation, Maintenance, and Repair -18,3% Business and Financial Operations -14.7% Transportation and Material Moving -17.8% Production 0.17.0% Building Grounds Cleaning and Maintenance , -5.6% MEDIAN SALARY FOR RIVERSIDE-SAN BERNARDINO-ONTARIO MSA Legal �-11.296 Protective Service -7.3% [ $30,000 Architecture and Engineering ! -5.0% $30.000 - $49.999 Computer and Mathematical 1 -4.096 $50.000 - $75,000 a $75.000 Life, Physical, and Social Sciences -5.0% Farming. Fishing, and Forestry -3.6% I I I 0 500 1000 1500 2000 2500 See CVEPs Employment Impact of COVIDA91 Caachefla Valley Report for adadional information on data sources and methodology JOB IMPACTS BY OCCUPATION GROUP OCCUPATION DECEMBER2019 EMPLOYMENT MAY2020 PROJECTION PROJECTED JOSLOSS %CHANGE Sales and Sales Related 3,451 1,367 2,OB4 -60.4% Food Preparation and Serving Related 2,530 797 1.733 -68.5% Personal Care and Service 1,388 398 990 -71.3% Office and Administrative Support 2,955 2,456 499 -76.9% Arts, Design, Entertainment, Sports and Media 625 306 319 -511% Education Instruction and Library 1,319 1,033 286 -21.7% Community and Social Service 435 181 254 -58.4% Construction and Extraction 862 671 191 -22.1% Healthcare Practitioners and Technicians 1,656 1510 146 -8.8% Healthcare Support 521 383 138 -26.5% Management 2,757 2,619 138 -5.0% Installation, Maintenance, and Repair 689 563 126 -18.3% Business and Financial Operations 849 724 125 -14.7% Transportation and Material Moving 496 408 88 -1T8% Production 514 427 87 -17.0% Building Grounds Cleaning and Maintenance 908 857 51 -5.6% Legal 367 326 41 -11.2% Protective Service 402 373 29 -7.3% Architecture and Engineering 259 246 13 -5.0% Computer and Mathematical 235 226 9 -4.0% Life, Physical, and Social Sciences 119 113 6 -5.0% Farming, Fishing, and Forestry 95 92 3 -3.6% TOTAL 23,432 16,074 7,358 -31.5% EMPLOYMENT & UNEMPLOYMENT PROJECTIONS FOR MAY DECEMBER 2019 MAY PROJECTION 5 Employment 23,432 16,074 Unemployment Rate 4.2% 31.9% . Educational Attainment of Residents Aged i8+ No High School Diploma High School Graduate Some College/Associate C 7% 21% 33% 0 Bachelor's or Advanced Degree 39% Contract No. C40810 AGREEMENT BETWEEN COACHELLA VALLEY ECONOMIC PARTNERSHIP AND THE CITY OF PALM DESERT AS IT RELATES TO FUNDING AND PARTICIPATION This JOINT FUNDING AGREEMENT ("Agreement") is made by and between the CITY OF PALM DESERT ("CITY"), a municipal corporation, and COACHELLA VALLEY ECONOMIC PARTNERSHIP ("CVEP"), a nonprofit public corporation, hereinafter sometimes referred to as "the Parties". WITNESSETH WHEREAS, Coachella Valley Economic Partnership (CVEP) is a California nonprofit corporation whose mission is to promote a diversified, year-round economy in the Coachella Valley; and WHEREAS, CVEP is the Coachella Valley's only regional economic vitality organization devoted to economic development, research, and charting a path to a future in which prosperity is both achievable and sustainable; WHEREAS, CVEP is organized and operated within the meaning of Section 501(c)(3) of the Internal Revenue Code ("Code"), and as per the code is intended to lessen the burdens of government and shall not carry on any other activities not permitted to be carried on by or inconsistent with an exemption from federal income tax under Section 501(c)(3) of the Code; and WHEREAS, CVEP is intended to be a regional effort and members appointed by the CITY do not have a controlling majority of the Board; and WHEREAS, the City makes an annual contribution to CVEP to assist with its regional economic development efforts WHEREAS, it is the intent and desire of the Parties to enter into this agreement to provide annual investment funding from the City to CVEP in the amount of $50,000 for FY 2020/2021, $50,000 for FY 2021/2022, and $50,000 for FY 2022/2023. NOW, THEREFORE, in consideration of the mutual covenants and conditions hereinafter stated, the Parties agree as follows: Section 1. Purpose: This Agreement is made for the express purpose of City to provide a payment of Fifty Thousand Dollars and NO/100 ($50,000) in FY 2020/2021, Fifty Thousand Dollars and NO/100 ($50,000) in FY 2021/2022, and Fifty Thousand Dollars and NO/100 ($50,000) in FY .2022/2023 as annual investment funding, subject to annual appropriation for such purpose, to assist CVEP operations. Page 1 of 5 W:1Staff Reports - SharedlSlaff Reports 10-29.2020W - City Clerk 10-29-201CVEP Funding - PRINTEMAgreement CVEP 10-29-20 Annual Investment.doc Contract No. C40810 Section 2. Term: This Agreement shall be cover the time period of July 1, 2020 June 30, 2023. Section 3. Fundinq: a) CVEP shall use funds provided by CITY for the purposes of support of CVEP's effort for regional economic development and its cost of annual operations in support of its mission. b) CVEP shall provide to City a written report to the City Manager on a quarterly basis detailing efforts made over the previous quarter, including number of Palm Desert businesses assisted. Section 4. Relationship of Parties. It is understood that the contractual relationship of CVEP to the City is that of Independent Contractor; CVEP is not the agent of the City, nor an employee of the City. City shall not direct the manner in which CVEP provides its services, but CVEP shall be responsible for the results achieved. City shall exercise no control over the manner and details of CVEP staffing. The City is not responsible for salary reimbursement or provisions. Section 5. Assianment. This Agreement shall not be assigned or duties hereunder delegated by CVEP without the written consent of the City. Section 6. Other Obliqations. The responsibilities and obligations solely as provided in this Agreement, or agreements to be executed by the Parties. Section 7. Insurance. of each Party to this Agreement shall be as may be provided for in supplemental (a) General Liabilitv Insurance. CVEP shall maintain commercial general liability insurance, on a primary basis. with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy shall be endorsed that the City of Palm Desert and its officers, officials, employees, agents, and volunteers are additional insureds and to waive subrogation against the aforementioned parties. Page 2 of 5 WAStaff Reports - Shared\Staff Reports 10-29-202014 - City Clerk 10-29-201CVEP Funding - PRINTEMAgreement CVEP 10-29-20 Annual Investment.doe (b) Section 8 Contract No. C40810 Workers' Compensation Insurance. Consultant shall maintain Workers' Compensation Insurance (Statutory Limits) Insurance (with limits of at least $1,000,000). City, along with the certificate of insurance, endorsement in favor of the City, its officers, volunteers. Hold Harmless. and Employer's Liability Consultant shall submit to a Waiver of Subrogation agents, employees, and CVEP's relationship to the City is solely that of an independent contractor. No employee of the CVEP is an employee or agent of the City in any respect, and CVEP shall be solely responsible for all activities of its employees, agents, its own independent contractors, and third parties for all losses, costs, damages, or injuries (including wrongful death) caused by or arising out of any act or omission of the CVEP, its employees, agents, or independent contractors relating to the services performed or to be performed by CVEP hereunder. CVEP specifically agrees to save and hold harmless the City, its officers, employees, and agents from any liability or claim of liability arising from performance under this Agreement. Section 9. Termination of Aqreement. City may, by written notice to CVEP, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to CVEP of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Section 10. Notices: Notices required or permitted hereunder shall be sufficiently given if made in writing and delivered either personally, registered or certified mail, or other means deemed acceptable for delivery of such notices, as follows: To: Coachella Valley Economic Partnership ATTN: Joe Wallace, Chairman 3111 East Tahquitz Canyon Way Palm Springs, CA 92262 To: City of Palm Desert ATTN: Martin Alvarez, Director of Economic Development 73510 Fred Waring Drive Palm Desert, CA 92260 Page 3of5 WSW Reports - Shared\Slaff Reports 10-29-2020\4 - City Clerk 10-29-20\CVEP Funding - PRINTEMAgreement CVEP 10.29-20 Annual Investment.doc Contract No. C40810 SIGNATURE PAGE FOR AGREEMENT BETWEEN THE CITY OF PALM DESERT AND COACHELLA VALLEY ECONOMIC PARTNERSHIP CITY OF PALM DESERT A Municipal Corporation GINA NESTANDE, MAYOR ATTEST: COACHELLA VALLEY ECONOMIC PARTNERSHIP Signature Print Name Title GRACE L. ROCHA, INTERM CITY CLERK CITY OF PALM DESERT, CALIFORNIA APPROVED AS TO FORM: ROBERT W. HARGREAVES, CITY ATTORNEY BEST, BEST & KRIEGER, LLP REVIEWED BY: Martin Alvarez Director of Economic Development Page 4 of 5 W NStaff Reports - SharecRStaff Reports 10-29.2020W - City Clerk 10-29.201CVEP Funding - PRINTEDWgreement CVEP 10-29-20 Annual Investment.doc Contract No. C40810 Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individua[ vdio signed the document to wfiichthis certificateis attached, and not the truthfllness,accuracy, or validity ofthat document. State of California ) ) SS. County of ) On 2020 before me, , personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Seal) Signature Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual Mo signed the document to Michthis certificateis attached, and not the truthfulness,accuragy or validity ofthat document. State of California ) ) SS. County of ) On 2020 before me, , personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Seal) Page 5of5 WSW Reports - Shared\Staff Reports 10-29-2020W - City Clerk 10-29-20\CVEP Funding - PRINTEMAgreement CVEP 10-29-20 Annual Investment.doc