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HomeMy WebLinkAboutFunding - CVEP FY 2013-14 CITY OF PALM DESERT STAFF REPORT REQUEST: APPROVE A FUNDING COMMITMENT OF $50,000 TO THE COACHELLA VALLEY ECONOMIC PARTNERSHIP'S 2013/2014 FISCAL BUDGET SUBMITTED BY: Ruth Ann Moore, Economic Development Manager DATE: June 13, 2013 CONTENTS: Letter of Request from the Coachella Valley Economic Partnership Recommendation By Minute Motion, approve a funding commitment of $50,000 to the Coachella Valley Economic Partnership's 2013/2014 fiscal budget. Funds have been included in the proposed Financial Budget for 2013/2014 in the 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. CVEP also 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 contribute to funding the attraction of business as they continue to investigate a self-funding mechanism. According to Tom Flavin, President & CEO for CVEP, the following cities made financial commitments below and are asked to do the same for FY 2013/2014: • Indian Wells $100,000 • Palm Springs $100,000 • Rancho Mirage $ 50,000 • La Quinta $ 50,000 • Palm Desert $ 50,000 • Coachella $ 50,000 • Desert Hot Springs $ 50,000 • Cathedral City $ 25,000 • Indio $ 25,000 Staff Report CVEP Contribution 2013-2014 June 13, 2013 Page 2 of 3 Backqround At the recent State of the City luncheon CVEP reviewed their results for the previous year, including: • In fiscal year (FY) 2011/`12, CVEP has worked with 237 new/expanding companies that generated or retained over 3,224 jobs throughout the valley. • Currently, CVEP is working with 29 clients for new/expanding businesses in Palm Desert. • Assistance to companies last year created and retained 84 jobs in Palm Desert. • CVEP continues to maintain offices in Palm Desert at UCR where the Small Business Development Center (SBDC) team provides financial assistance and seminars with local businesses each month. • Under CVEP, Workforce Excellence gave $1.7 million in scholarships, with $95,000 going to Palm Desert students. • Of those Coachella Valley students receiving scholarships, 50% remain in the valley to attend higher learning at the various education centers in Palm Desert. CVEP is investigating various funding sources such as valley-wide assessments or business improvement districts in order to take the financial burden off of the cities. They have formed an internal committee of business and civic leaders to develop a solution for reoccurring funding of CVEP and plan to present to the board of directors this upcoming year. Currently, CVEP is looking for a one-year commitment of $50,000 from Palm Desert. Fiscal Analysis Funding for the contribution is included in the proposed FY 2013/2014 General Fund budget. G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\CVEP contribution 2013-2014.doc Staff Report CVEP Contribution 2013-2014 June 13, 2013 Page 3 of 3 Palm Desert currently plays a regional role in its support of the Convention and Visitors Bureau, and its participation as an education hub for the Coachella Valley. This increases the economics of the valley and quality of life for Palm Desert 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. Su i#� y: Depart He d: ut Ann Moore �tin Alvarez Economic Development Manager Director of Economic Development CTfY COUNCILAt,"%T�IOM APPROVED � DFNiEb RECEIVED OTHER aul S. Gibson, Director of Finance MEETI DA Approval: AYES: NOES: ABSENT: ABSTAIN: VERIFIED BY: Original on File with i lerk's Office o n M. Wohlmuth, City Manager G1rdalRuth Ann Moore\word datalSTAFF REPORTS\CVEP contribution 2013-2014.doc COACHEI.LA VALLEY E�t�i�Clridlt� ��€�Tt��l���i1F� March 26, 2013 Mayor Jan Harnik City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 RE: FY13-14 Budget Request Dear Mayor Harnik: On behalf of the Board of Directors, I want to thank the City of Palm Desert for your support of the Coachella Valley Economic Development Partnership (CVEP). FY12-13 was a very successful year for the organization and we have seen real improvement in the regional economy. As you know, much remains to be done but the economic momentum is heading in the right direction and the Coachella Valley has many opportunities in front of it. As your budget preparation process moves forward over the next few months, CVEP would like the opportunity to make a report to the City Council on the achievements of the past year and plans for the upcoming year. The Coachella Valley is moving to the forefront in economic and workforce development in the State of California and we would like to show how the region and City of Palm Desert have benefited. We respectfully request that the City maintain its 2012-13 funding level for FY13-14 and look forward to hearing from you on a formal presentation. Thank you, as always, for your continuing support. Sincerely, Thomas Flavin President&CEO cc: Ruth Ann Moore Executive Committee ��.�r���� ��� sta�c�ss 3711 EAST TAHQUITZ CANYON WAY•PACM SPRINGS,CALfPOkNIA 92252�PH;160.340.1575•FX:760 548 0370�YVW W.GVEP.COM