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HomeMy WebLinkAboutFunding of $50,000 to the CVEP FY 2011-2012PALM DESERT REDEVELOPMENT AGENCY REQUEST: SUBMITTED BY: DATE: CONTENTS: Recommendation STAFF REPORT APPROVE A FUNDING COMMITMENT OF $50,000 TO THE COACHELLA VALLEY ECONOMIC PARTNERSHIP'S 2011/2012 FISCAL BUDGET Ruth Ann Moore, Economic Development Manager June 23, 2011 Letter of Request from the Coachella Valley Economic Partnership CVEP Business Plan By Minute Motion, approve a funding commitment of $50,000 to the Coachella Valley Economic Partnership's 2011-2012 fiscal budget. Funds have been included in the proposed Financial Plan for 2011/2012 Economic Development Dues, Account No. 850-4430-422-3630. 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, CEO for CVEP, he has received verbal commitments from eight cities for either the same funding as 2010/2011 fiscal year or more. Funds have been included in the proposed Financial Plan for 2011/2012 Redevelopment Agency Budget. Backqround The City Council met in a study session to review the CVEP brief overview of the goals is as follows: • Leads Generated: 260 • Prospects Follow Up: 120 • Client Cases Opened: 35 • Primary Jobs: 295 • Total Jobs: 506 Business Plan on April 14, 2011. A Economic Impact: $82 Million Student Aid Applications: Benchmark to beset in 2011 Staff Report CVEP Contribution June 23, 2011 Page 2 of 2 Target Cluster Scholarship Applicants: 620 Industry Cluster Partners: 25 The CVEP 2011 program strategies include work in the following areas: • Business development • Pathways to Success workforce excellence • Marketing and communications • Legislative • Financial management • Investor relations • Staff/organizational development Steps to implement these strategies can be found in the attached Business Plan. 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. Fiscal Analysis Funding for the contribution will come from the Redevelopment Agency, and does not impact the General Fund. By participating in assisting the attraction of higher paying jobs to both Palm Desert and the valley, the quality of life for Palm Desert residents improves and increased sales bring revenue to the General Fund. Submitted By: *th oore, E nomic Development Mgr aul S. Gibson, Director of Finance Approval: , Executive Director Department Head: ill- 4 0_� e rthy, ACM fold Lou evelopment VERIFIED BY—ki) K. Original on file witty City Clerk's Cfflt,,e *Approved the recommendation, with a request for report in six months on activities supported by the funding. 5-0 GArda\Agenda Items\2011\6-23-11\CVEP 2011-2012 contribution SR 6-23-2011.doc COACHELLA VALLEY March 1, 2011 John Wohlmuth, City Manager City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Dear Mr. Wohlmuth: On behalf of the Board of Directors, I would like to thank the City of Palm Desert for its support of the Coachella Valley Economic Partnership [CVEP]. The global economy has created intense competition for value-added jobs and having a focused, competitive program is essential for 21' century economic success. As you approach budget preparation for FY 2011-12, CVEP knows there is uncertainty about what might happen in Sacramento, as well as other important funding priorities in the City. To ensure that strengthening the job and economic base of the region remains a priority throughout the Coachella Valley, CVEP is proposing that its local jurisdictional partners consider an alternative funding option for FY 2011-12. Since there are always important demands on the General Fund, some of our local jurisdiction partners have shifted their annual funding of CVEP to their redevelopment agencies (RDA). The enclosed staff report and resolution from the City of Indian Wells presents an approach for doing so; in addition it provides for a transfer of funds from the RDA to the General Fund to reimburse it for FY 2010-11 CVEP support. Also, RDA's throughout the state are now encumbering resources to protect them from being shifted to the state. Some local RDA's are considering "pre -paying" their FY 2011-12 CVEP investment to keep those resources at the local level to support economic development. After all, local job growth will come from companies expanding or relocating to the Coachella Valley — not Sacramento. Facilitating this job growth is CVEP's mission. I have enclosed a copy of the CVEP three-year Business Plan for your review. You will note that it projects 500+ new jobs and $80m+ in new economic impact in the region for FY 2011-12. if we can increase organizational capacity in our business development program, I believe these goals can be exceeded. We respectfully request the City's consideration of maintaining the 2010-11 funding level to CVEP. You may contact me at our offices if you would like to further discuss this matter. Thank you, as always, for your continuing support. Sincere 22 _ T mas Flavin President/Chief Executive Officer 73-710 FRED WAR-NG DRIVE. SUITE 106 - PALM DESERT_ CALIFORNIA 92260 ' PH 760 3401575 - FX 760.3a0 9212 � W WW CVEPCOM FY2011-14 BUSINESS PLAN — EXECUTIVE SUMMARY CVEP Vision CVEP will be a catalyst for the Coachella Valley to determine its economic future by building an economic development program that competes globally; collaborates regionally; and, executes locally. Directed by its volunteers - known as civic entrepreneurs - CVEP is dedicated to the long-term, best interests of the Coachella Valley while fully appreciating the unique quality of life of each community in the region. CVEP will be a community -based model for others to emulate. CVEP Mission CVEP's mission is to build a diversified, year-round economy by promoting regional job growth in local companies and through business attraction; and, by developing a well -trained and educated workforce. CVEP FY2011-12 Goals • Leads Generated: 260 • Prospects Follow Up: 120 • Client Cases Opened: 35 • Primary Jobs: 295 • Total Jobs: 506 • Economic Impact: $82M • Student Aid Applications: Benchmark to be set in 2011 • Target Cluster Scholarship Applicants: 620 • Industry Cluster Partners: 25 CVEP FY2011-12 Proeram Initiatives Build an enhanced business development program to include business attraction focused on companies in target industry clusters. • Provide increasing CVEP support for workforce excellence program and integrate operations and staff into CVEP mission. • Utilize a key executive council to strengthen private sector involvement in CVEP. • Develop $500,000 in new revenue to support CVEP mission over the next three years. • Open a regional business center in Palm Springs; an economic development office in Indio; maintain workforce excellence office at UCR in Palm Desert. 1 2011-14 CVEP BUSINESS PLAN — POLICIES AND PROGRAMS Introduction The three-year CVEP Business Plan guides it's development as an economic development organization by outlining its key policies; organizational goals; program strategies; a resource allocation plan; and, a format for reporting results. It is also the starting point for industry cluster development in the Economic Blueprint and it will be updated annually to reflect the dynamic nature of the regional and global economy. CVEP Policv Guidelines A key to successful economic development organizations is a clear statement of policies embraced by its governing bodies and investors. The key policies for CVEP Business Plan are: • CVEP will implement an economic development program for all nine incorporated cities, unincorporated County and Indian Tribal land in the Coachella Valley. • CVEP's Business Plan will be aligned with the recommendations of the Economic Blueprint as prioritized by its Executive Committee and ratified by the Board of Directors. • CVEP's Business Plan will be results -based with outcomes reported regularly to its governing bodies, investors and the broader community. • CVEP is committed to building organizational capacity by securing additional resources to support its core programs: business development and workforce excellence. • CVEP will reach out to secure stronger private sector involvement in the organization. • CVEP will create an organizational culture that encourages innovation and strategic thinking. • CVEP's Business Plan will be reviewed and updated at an annual retreat of its Board of Directors. CVEP FY2011-12 Goals CVEP will establish quantifiable goals for its integrated economic development program for each fiscal year in the Plan. Organizational goals for FY2011-12 are established in the Business Plan; goals for subsequent years will be established at the annual Board of Directors retreat consistent with organizational capacity. CVEP goals for FY2011-12 are: • Leads Generated: 260 • Prospects Follow Up: 120 2 • Client Cases Opened: 35 • PrimaryJobs: 295 • Total Jobs: 506 • Economic Impact: $82M • Student Aid Applications: Benchmark to be set in 2011 • Cluster Scholarship Applicants: 620 • Industry Cluster Partners: 25 CVEP goals for FY2011-12 can be exceeded if additional organizational capacity is added through new funding resources. CVEP 2011 Program Strategies CVEP has seven organizational program areas in its Business Plan: business development; Pathways to Success (PTS) workforce excellence; marketing and communications; legislative; financial management; investor relations; and, staff/organizational development. Below are specific strategies that will be implemented for each program area, beginning in FY2011-12. CVEP Business Development • Business development focuses on expanding existing companies and recruiting companies from outside the region; it has four elements: generating leads; building a prospect pipeline; providing customized client services; and, completing company expansions and relocations. It will: ✓ Proactively focus on companies in the four target industry clusters identified in the Economic Blueprint: Healthcare/Life Sciences; Clean Technology/ Energy; Supply Chain Management/ Logistics; and, Creative Arts and Design. A customized business development strategy will be developed for each. ✓ Respond to all economic opportunities for the region whether identified in the Economic Blueprint or not. ✓ Establish lead generation channels with CVA, PTS Industry Councils and others; attend target industry cluster events; develop an outbound marketing program; coordinate with federal, state and local economic development organizations; continue its business visitation program; enhance relationships with site selectors; strengthen linkages with brokerage network; reach out to small and minority businesses; and, develop a prospect referral network. 3 ✓ Transition leads into prospects and active client cases with a prospect cultivation program that includes a branding strategy that differentiates the region; periodic "touches" with a prospect follow-up program; formal contacts from a business peer cadre; a network of business service providers; access to incentive programs; and, other required business consulting services. ✓ Develop a research capacity that on request provides timely and customized economic and demographic data; real estate and site selection information; general tax and incentive information; access to capital and public financing programs; transportation services; and, other information that may be requested by clients. ✓ Utilize Economic Blueprint data as the economic baseline for the region; update the baseline with key economic intelligence; provide economic information to policy. -makers and investors; develop comparative market profiles for competitor markets; build deep target research capability for target markets; and, ensure use of state -of -art analytical and presentation tools. ✓ Provide an accurate assessment of the impact of completed client cases with specific focus on primary jobs, total jobs and regional economic impact. ✓ The CVEP business development program will be monitored by the Economic Development Committee, Executive Committee and Board of Directors. CVEP/PTS Workforce Excellence • Workforce Excellence has been a program priority of CVEP for a number of years; it is comprised of two programs: Pathways to Success and Career Pathway Initiative. In 2010, the programs were merged into one program — Pathways to Success (PTS) — which is comprised of areas: college and career readiness; scholarships; and, industry engagement. Program goals for CVEP/PTS in 2011 are: ✓ Sharpen program descriptions; identify short and long term objectives; and, clarify organizational roles. ✓ Implement a plan to integrate CVEP and PTS programs, staff and operations management to include business community interface; marketing; financial management; and, resource development. ✓ Implement a regional initiative to significantly increase the number of students completing FAFSA (federal student aid) applications. ✓ Increase CVEP Board participation in PTS programs; and, in increase private sector participation in PTS industry councils. 4 ✓ Develop regional work -based learning, internship and youth entrepreneurship programs. ✓ Increase the number of target cluster scholarships and improve gender -balance of applicants. ✓ The CVEP/PTS Workforce Excellence program will be monitored by the CVEP Oversight Board, Executive Committee and Board of Directors. CVEP Marketing and Communications • Continue implementation of CVEP local communications program and website upgrade. • Restructure marketing program to focus on core programs: business development and workforce excellence • Develop an outbound marketing program to support business attraction initiative. • The CVEP Marketing and Communications program will be monitored by the Marketing Committee and Executive Committee. CVEP Investor Relations • Ensure that the Executive Committee, Board of Directors and its committees are fully informed on all relevant matters. • Provide frequent opportunities for CVEP investor input through regular Board of Director meetings; annual investor meetings; subject -specific forums; social media systems; and, periodic surveys. • Review governing and committee structure to ensure alignment with CVEP mission. • Utilize a key executive council to strengthen private sector involvement in CVEP. • Develop a service provider network of investors to provide business services to new and expanding businesses in the region. • The Investor Relations program will be managed by the Executive Committee and monitored by the Board of Directors. CVEP Legislative • Review and refine role of the CVEP legislative committee. • Focus on State and regional public policies that impact jobs and economic growth. �1 • Coordinate its legislative efforts with chamber of commerce, industry association and local government efforts in place in the Coachella Valley. • The CVEP legislative program is overseen by the Legislative Committee and Executive Committee. CVEP Financial Management • Present a set of fiscal policies guiding organizational financial management for approval. • Establish a resource allocation plan that sets organizational priorities annually. • Raise $500,000 in new revenue by end of FY2014 to develop more capacity for core programs: business development and workforce excellence. • Pursue all revenue enhancement opportunities that support the overall CVEP mission. • Ensure integration of PTS budgeting and accounting systems into CVEP financial management system. • The Financial Management program will be monitored by the Finance Committee and Executive Committee. CVEP Staff/Organizational Development • Organizational Chart (Appendix A) • Ensure that appropriate personnel and administrative procedures are in place. • Recruit, train and develop a team of economic development and workforce professionals and cross -train. • Implement a consistent and fair employee evaluation and compensation system that provides constructive feedback and a collaborative workplace environment. • Implement management information systems for investors, clients, and staff that enhance organizational performance. • Open a regional business center in Palm Springs and an economic development office in Indio; maintain the workforce excellence office at UCR in Palm Desert. • Build a strategic initiative capacity to evaluate emerging opportunities. • The Staff/Organizational program will be overseen by the Executive Committee. �.i CVEP 2011-12 Resource Allocation Plan The CVEP Business Plan includes a resource allocation plan that sets funding priorities for the organization. This plan can be adjusted annually at the Board of Directors Retreat consistent with its program priorities. The current resource allocation plan for FY2011-12 is: • Business Development • Workforce Excellence 30% 47% • Marketing/Communications 7% • Investor Relations 3% • Legislative 3% • Financial Management 7% • Organizational/Staff 3% The resource allocation for business development will be increased in FY2011-12 as new revenues are added. CVEP Reporting Results Effectively reporting of results to the Executive Committee, Board of Directors, investors and the broader community is a CVEP policy priority. Regular reports will be provided for: client activity; business development; workforce excellence; financial management; and, an annual "State of CVEP" report will also be provided. Distribution of these reports will be made in the following manner: • Client Activity Report; Financial and Workforce Excellence Reports: Executive Committee and appropriate committees • CVEP Business Development Report (Appendix B), Workforce Excellence, Finance, Legislative, Marketing and Investor Relations Reports: Board of Directors and appropriate committees • Annual "State of CVEP" Report: All investors and the community • Periodic updates in weekly newsletter to all community stakeholders. 7