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Home My WebLink AboutFunding - CVEP for FY 2014-2015COACHELLA VALLEY ECONOMIC PARTNERSHIP ILMII CLIMATE FOR SUCCESS CVEP RETURN ON INVESTMENT (ROI) STATEMENT Mission Coachella Valley Workforce/Jobs Model: Help companies grow a 21st century job base in the region and develop a trained and educated workforce for those jobs. Reporting Period: Q3/Q4-2013* From Inception JULY, 2011 • Companies Adding/Retaining Jobs 22 118 • Business Client Financing $81.1M $91.9M • Total — New Direct Jobs 366 2530 • Total - Retained Direct Jobs 4 872 • Total - Indirect Jobs 120 2381 • Total Jobs: Direct, Indirect, Retained 850 5783 • Career-Themed Program Students 6979 • Career-Themed Business Partners 265 769 • Total College Scholarship Awarded 397 1569 • Total College Scholarship Dollars $1.6M $7.6M • Other Financial Aid Assistance Pool $10.4M $30.3M Recent Highlights: • Rabobank Regional Business Center has hosted over 11,000 visitors to date • Palm Springs Accelerator Campus improvements underway • East Valley Innovation Hub expansion planning project begins • Workforce Excellence attracts Irvine funding as "community convener" • Coachella Valley SBDC wins top SBA ROI award • Workforce Excellence occupies new office space in Palm Desert * Quarterly ROI numbers reported on calendar year basis CLIMATE FOR SUCCESS 3111 EAST TAHQUITZ CANYON WAY • PALM SPRINGS, CALIFORNIA 92262 • PH: 760.340.1575 • EX: 760 548 0370 • WW W.CVEP.COM saaaaeJ 1A131S Pue TJV • 2,700 Students Exploring Health, 600Z 3JNIS. 100HDS 31001W 1 A2IV1N301313 sweJ2oad pawayl-aaaaeJ ui Su !Aprils s4uapn1s OSZ'1 • 100HDS HOIH NOILVDf103 213H9IH pedwi Diwouoa3 1N3Wd013A3a 21f13N321d3211N3'3 SS3NISf18 aDJOPI.IOM s}I a) _ [D NJ () aQ n op a) a n Q .-+ 0 n 0 a)'< 7) . v 0 O a in 6 (D- a_ 0 N cy- O a- 73 LOZ Wr..mWIRn�:��[�rinM�, �al�[•i�ri��F�_ CITY OF PALM DESERT STAFF REPORT REQUEST: APPROVE A FUNDING COMMITMENT OF $50,000 TO THE COACHELLA VALLEY ECONOMIC PARTNERSHIP'S 2014/2015 FISCAL BUDGET SUBMITTED BY: Ruth Ann Moore, Economic Development Manager DATE: July 10, 2014 CONTENTS: Letter of Request from the Coachella Valley Economic Partnership (CVEP) and Return on Investment Statement Recommendation By Minute Motion, approve a funding commitment of $50,000 to the Coachella Valley Economic Partnership's 2014/2015 fiscal budget. Funds have been included in the proposed Financial Budget for 2014/2015 under the Economic Development Dues; Account No. 110-4430-422-3630. Executive Summary At the recent Annual Investors and Board of Directors Meeting on June 18, 2014, CVEP reviewed their results for the previous year, including: • Since 2011, CVEP has assisted 130 companies to create 2,530 new jobs; retain 872 jobs; and, generate 2,381 indirect jobs for a total of 5,783 jobs in the Coachella Valley. • CVEP maintains offices in Palm Desert (Dinah Shore Drive area) for the Workforce Excellence team that has provided over 1,850 Coachella Valley students with $9 million in scholarships. • Of those Coachella Valley students receiving scholarships, 50% remain in the valley to attend higher learning at the various education centers in Palm Desert. • The Small Business Development Center (SBDC) team provides financial assistance and conducts seminars with local businesses each month at the Palm Desert UCR campus. • With the participation of Palm Desert, Indio, La Quinta, and Riverside County, CVEP has received federal funding to explore the expansion of the valley's western Innovation Hub (I-Hub) business development center to the east. The implementation proposal to move forward on an east-valley I-Hub will be submitted for federal funding in September, 2014. Staff Report CVEP Contribution 2014-2015 July 10, 2014 Page 2 of 3 CVEP is investigating funding sources such as a valley-wide assessment or business improvement district 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. Backqround 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. In addition to the scholarship program (Workforce Excellence Program) and the development of the west valley I-Hub, CVEP will focus on the following initiatives next year: 1. An update of the Economic Blueprint that was adopted five years ago is underway that will fine tune the objects of CVEP and continue the initiatives toward job development in the chosen economic clusters. The update will be completed in December, 2014. 2. The launch of a Financial Sustainability Initiative will continue the long-term jobs and workforce programs without having to request annual investments from the partners. This should culminate in 2015 or 2016. 3. Grow the Coachella Valley I-Hub and Accelerator Campus network including expansion to the east valley. 4. Execute a strategic communications plan including website updates and marketing materials. 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. G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\CVEP contribution 2014-2015.doc Staff Report CVEP Contribution 2014-2015 July 10, 2014 Page 3 of 3 Fiscal Analvsis Funding for the contribution is included in the proposed FY 2014/2015 General Fund budget. 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 approval of the $50,000 funding commitment to CVEP for the fiscal year 2014-2015. Sub�r i##�J By: Department Head: � , �� uth nn Moore in Alvarez, Economic Development Manager Director of Economic Development ��1 �� Paul . ibson, Director of Finance Rudy Acosta, Assistant City Manager Approval: CITY COiT;�'CTLA�TION APPROVED � DF,NTED � RECEIVED OTHER _ : MEET G , .AT�,E ' ' ; o n M. Wohlmuth, City Manager pYES: �� '�? ' �� '� �� NOE5: � , ABSENT: ABSTAIN: ! VERIFIED BY: - Ortginal on File with City Cle s Office G:\rda\Ruth Ann Moore\word data\STAFF REPORTS\CVEP contribution 2014-2015.doc �� COACHELLA VALLEY ".: � , , _ . - REGEIVED March 20, 2014 MAR 2 � 24�4 CouncilmemberJan Harnik PA�MpESERT City of Palm Desert C�� o��peveloPment 73-510 Fred Waring Drive Palm Desert, CA 92260 RE: FY14-15 Annual Investment Request DearJan: As the City of Paim Desert begins preparing its FY 14-15 budget, I wanted to provide an update of your Return on Investment (R01) and other facts that may be important in your consideration. I have enclosed our most recent R01 statement for your review. • To highlight the ROI statement, since we initiated the new reporting system in July, 2011 CVEP has assisted 118 companies create 2530 new jobs; retain 872 jobs; and, generate 2381 indirect jobs for a total of 5783 jobs in the Coachella Valley. CVEP's Workforce Excellence programs- in partnership with educators and business- has provided nearly 7,000 students with career-themed programs; 1569 student scholarships; and, $38M in overall student aid. Many citizens from the City of Palm Desert have benefited from these programs. • In FY 13-14, annual investments by local jurisdictions in the Coachella Valley totaled $400K on a $5.5M annual CVEP budget—or 7.2 cents of every dollar in CVEP. The remainder has come from private sector investors; major foundations from outside the region;federal grants; and, special programs such as the Coachella Valley Innovation Hub where investment is optional. This represents a leverage ratio of more than 9:1 for local jurisdictions—which I have never seen before in any regional economic develo�ment program. • CVEP's Workforce Excellence program has recently been designated as a national "community convener" to bring educators and the community together in a collaboration to ensure that our students get access to the best career pathway opportunities of the future. Likewise,the Coachella Valley Innovation Hub is not only a leader in California's program focused on 215t century jobs but also part of a major federal initiative centered on Innovation Hubs around the US. • CVEP now has staff operating from three full-time offices located throughout the Coachella Valley for easier access to its programs and services: Palm Springs, Palm Desert and Indio. 3'11 Fq�r TAMQ��rL CANVON`NAV •PALM SP4INGS CALIPORNI4 92262�PH 750 340 15�5��%. 760 538 0370'W W W CVEP COM �w,.,.� COACHELLA VALLEY "�_ .�_,`�"�` � f- . • CVEP has undertaken two major initiatives recently of particular interest to all local jurisdictions: (1) an update of the Economic Blueprint adopted five years ago, and (2) the launch of a Financial Sustainability Initiative to support long-term jobs and workforce programs without having to request annual investments from partners. This is a major undertaking culminating in 2015 or 2016. On behalf of the entire CVEP Board—and the several thousand beneficiaries of services being delivered through CVEP and its business and education partners—we thank you for your past support. W� hope that you will continue your support at the same level provided in FY 13-14. If you need a presentation from CVEP during you budget deliberations, we are available to do so. We are also available to answer any questions you may have. Thanks again for your support and consideration. �e.._ �9 1 '� Tho as Flavin President &CEO Coachella Valley Economic Partnership cc: CVEP Executive Committee Ruth Ann Moore I/r Enclosure ,,�., _ . , . 311�FASr iANQu�TZ CA4vON��NAY�PALM iPRiNGS.CAl'�FORNiA 9�26Z�PH 760 31015'S�FX 760 548 0370�WW W CVEPCO�'v�