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HomeMy WebLinkAboutFiscal Year 2012 - 2013 Fiscal Budget - Coachella Valley Economic PartnershipCITY OF PALM DESERT STAFF REPORT REQUEST: APPROVE A FUNDING COMMITMENT OF $50,000 TO THE COACHELLA VALLEY ECONOMIC PARTNERSHIP'S 2012/2013 FISCAL BUDGET SUBMITTED BY: Ruth Ann Moore, Economic Development Manager DATE: June 28, 2012 CONTENTS: Letter of Request from the Coachella Valley Economic Partnership CVEP Business Plan Recommendation By Minute Motion: 1. Approve a funding commitment of $50,000 to the Coachella Valley Economic Partnership's 2012-2013 fiscal budget. Funds have been included in the proposed Financial Plan for 2012/2013 Economic Development Dues, Account No. 110-4430-422-3630. Executive Summary Over the last several years, the Coachella Valley Economic Partnership (CVEP) has developed a blueprint of goals, reorganized the board of directors and by-laws and hired a new CEO to lead the organization in order to compete with other regions to retain and grow high -value, sustainable jobs in the Coachella Valley. Recently, CVEP approved a three- year Business Plan that outlines its key policies, organizational goals, program strategies, a resource allocation plan and a format for reporting results. CVEP is asking all of the Coachella Valley Cities and the County to assist in funding the attraction of business as they investigate a self -funding mechanism. According to Tom Flavin, President & CEO for CVEP, the following cities have made financial commitments: • Indian Wells $100,000 • Palm Springs $100,000 • Rancho Mirage $ 50,000 • La Quinta $ 50,000 • Coachella $ 25,000 Additional $25,000 after mid -year review • Cathedral City $ 25,000 • Indio $ 25,000 • Desert Hot Springs will be considering a contribution of $50,000 this week. Staff Report CVEP Contribution June 28, 2012 Page 2 of 3 Background The City Council met in a study session to review the CVEP Business Plan on April 26, 2012. A brief overview is as follows: • In the first three quarters of FY '11-12, CVEP has worked with 45 new/expanding companies that generated over 2500 jobs in the valley. • CVEP determines the economic impact to be $245 million to the valley. • Currently, CVEP is working with 15 clients for new/expanding businesses in Palm Desert. • Opened and staffed a new Small Business Development Center at the Hub and have begun providing assistance and seminars including with local businesses each month at UCR. • Under CVEP, Workforce Excellence gave $1.7 million in scholarships, with $145,000 going to Palm Desert students. Included in the request letter for funding is a breakdown of the Return -On -Investment (ROI) to Palm Desert for next fiscal year. Staff has negotiated with CVEP that for the $50,000, the cost to participate and advertise in the Annual Economic Summit be included. This is a savings to the General fund of $2,450. CVEP considers that Palm Desert's ROI for a $50,000 contribution will be $269,475. As CVEP continues to develop as an organization it will investigate various funding sources such as valley -wide assessments or business improvement districts in order to take the burden off of the cities. CVEP is looking for a one-year commitment of $50,000. Palm Desert currently plays a regional role in its support of the Convention and Visitors Authority, and its participation as an education hub for the Coachella Valley with both adding to the economics and quality of life for valley residents. Attracting business to the Coachella Valley whether located in Palm Desert, another city, or the unincorporated area will add wealth to the community allowing Palm Desert to increase its tax base. Therefore, staff recommends the motion. G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\CVEP contribution 2012-2013.doc Staff Report CVEP Contribution June 28, 2012 Page 3 of 3 Fiscal Analysis Funding for the contribution is included in the proposed FY '12-'13 General Fund budget. Participating in assisting to bring higher paying jobs to both Palm Desert and the valley will increase the quality of life for Palm Desert residents and increase sales bringing revenue to the General Fund. Sub y: uth Ann Moor Economic Development Manager CITY COUNCIL A�tON APPROVEDyy DEMM Paul S. Gibson, Director of Finance RECEIVED OTHER Approval: M. Wohlmuth, City Manager AYES: NOES: ABSENT: ABSTAIN: VERIFIED BY: Original on File with City 's Office G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\CVEP contribution 2012-2013.doc COACHELLA VALLEY I VOD March 16, 2012 Mr. John Wohlmuth City Manager City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 SUBJECT: FY 12-13 Budget Request Dear John: With the elimination of RDAs, there are many unanswered questions for local jurisdictions in California. One of those questions is how will communities in California be able to grow their tax base in the future. New business models for economic growth will need to be developed if California is going to be a serious competitor in the global economy. For the past year, CVEP has been implementing a business development model utilized successfully in other states — client -based, case management focused on employers and jobs. This unique model consists of the following elements: • Provides customized services throughout the region to all employers in a retention, expansion or recruitment mode. • Provides a wide range of business counseling, technical assistance and financing services to these employers through a service -provider network to meet the employer's specific needs. • Proactively targets employers consistent with a region's industry cluster strengths and emerging economic opportunities. • Develops a long-term relationship with employers providing specific services over time to meet their evolving needs. • It is a partnership -based model that includes public, private and institutional organizations at the federal, state and local level. • Reports results in a quarterly Return -On -Investment (ROI) by measuring primary jobs; indirect and induced jobs; and, total economic impact for the region. This model is producing economic growth results for the Coachella Valley as the enclosed regional ROI Statement from CVEP illustrates. Over 1600 jobs from 32 companies were produced for the first two quarters of our fiscal year (July 1 — December 31) with a total economic impact of $110M. Not only are we retaining and expanding existing companies like Carefusion, Attune, and others; but, we are attracting companies from other countries and 3111 EAST TAHQUITZ CANYON WAY - PALM SPRINGS, CALIFORNIA 92262 • PH: 760.340.1575 - FX. 760 548 0370 • W W W.CVEP.COM COACHELLA VALLEY states. We currently have companies from China, Canada, Italy, Switzerland, Taiwan, Arizona, Indiana, Utah and elsewhere in California in our client portfolio. In addition, $1.7M in college scholarships has been provided this academic year to 430 Coachella Valley students with $115,000 going to Palm Desert students. The Coachella Valley has a business model for economic growth and an educated workforce that is working and will only get stronger if properly resourced. CVEP understands that FY 12-13 is an uncertain and difficult budget year for all cities and counties in California. To help make the case for continued support of CVEP, we have projected a R01 for the City from all CVEP programs and services for FY 12-13 — $266,725! See Attachment A for a detailed breakdown. We know that municipal budgets are tighter than ever before in California and that local jurisdictions need to maximize the return on every dollar spent. We respectfully request your consideration of an investment of $50,000 for FY 12-13 as part of your commitment to economic growth. We are available to discuss this request further with you and/or the City Council. Thanks for your past support! Sincerely, Thomas Flavin President & CEO cc: Councilmember Jan Harnik, CVEP Board Ruth Ann Moore, Alternate 3111 EAST TAHQUITZ CANYON WAY • PALM SPRINGS, CALIFORNIA 92262 • PH: 760.340.1575 • FX. 760 548 0370 • W W W.CVEP.COM COACHELLA VALLEY ATTACHMENT A CVEP offers the following Return On Investment (ROI) to Palm Desert for FY12-13 for an investment of $50,000: Business Development $66,100 • Coachella Valley Small Business Development Center Services $20,000 • Access to professional staff to assist in economic development $15,000 efforts • Inclusion in "Team Coachella Valley" at State level with Team $5,000 California • Regional representation at Ernst & Young International event. $2,500 • Regional Web Based Site Selector Tool $1,100 • Coachella Valley Recruitment Initiative (CVRI) $10,000 • Coachella Valley Business Visitation/Retention program $5,000 • Access to leads and business contacts $5,000 • Host opportunities for visiting executives and site selectors $2,500 EA Workforce Excellence $149,000 • Two tickets to the FAFSA Competition Fundraising event $200 benefitting local High Schools • Support for career academies in local high schools that are $33,800 producing the workforce for tomorrow. • Local Pathways -to -Success Scholarships in each Valley $115,000 community. (2011— Palm Desert students) Marketing $14,750 • Booth at the Annual Economic Summit $750 • Half page advertisement in Annual Economic Report - $1,700 distributed to over 800 attendees at the Annual Summit as well as used throughout the year for regional promotional purposes by the County, cities, and CVEP for site selector meetings and other promotions. Included as electronic version and linked to CVEP and city web sites. • Four page city profile and input for the regional section in the $5,000 annual Palm Springs Life Progress Issue and Focus on the Coachella Valley. This has been an annual line item for each city. • Reprints (150) of the Vision issue $500 3111 EAST TAHQUITZ CANYON WAY • PALM SPRINGS, CALIFORNIA 92262 • PH: 760.340.1575 - FX: 760 548 0370 • W W W,CVEP.COM COACHELLA VALLEY • Representation at Annual ACRE event featuring Regional $300 Presentation • Weekly newsletter reaching global clientele $5,000 • Out of Area Marketing in business journals, site selector $1,000 magazines, conferences, conventions, etc. • Recognition and link to your city on CVEP web site $500 • Regional branding to National and International business community Regional Collaboration $11,250 • Board representation $10,000 • Top recognition and a complimentary 10-top table at the $950 Annual Economic Summit • Invitation to special events throughout the year with two (2) $300 paid seats reserved • Opportunity to serve on CVEP committees • Notification of "Investor Only" Alerts • Increased regional grant opportunities Research/Data Support $28,375 • Access to Nielson Claritas data with service provider $1,050 • Buxton Consumer Profile and Market Intelligence Services $20,000 • Annual economic data broken down for each city $5,000 • Fifty hard copies of the annual economic report $325 • On-line link to city specific economic data $1,000 • On-line links to city specific info sections $1,000 • Access to customized research and data for your city including demographics, population statistics and retail opportunity ga ps. Creating a "Climate for Success" Priceless imr Total value CVEP programs and services in Palm Desert $269,475 3111 EAST TAHQUITZ CANYON WAY • PALM SPRINGS, CALIFORNIA 92262 *PH: 760.340.1575 • FX: 760 548 0370 • WWW.CVEP.COM