Loading...
HomeMy WebLinkAbout2/15/2017 - STAFF REPORTS - 1.G. QALM SA �OF c w FOR N� City Council Staff Report DATE: February 15, 2017 CONSENT CALENDAR SUBJECT: PALM SPRINGS INNOVATION HUB AND ACCELERATOR CAMPUS QUARTERLY REPORT FROM: David H. Ready, City Manager BY: Office of the City Manager SUMMARY: The Consulting Services Agreement approved July 6, 2016, with the Coachella Valley Economic Partnership ("CVEP") requires CVEP to prepare and submit quarterly reports against certain performance metrics for the period of October 1 to December 31, due in January. This item will receive and file the second quarterly report for the 2016/2017 Fiscal Year. RECOMMENDATION: Receive and file the second quarterly report from the Coachella Valley Economic Partnership for the Palm Springs Innovation Hub for the period of October 1 to December 31, 2016. BACKGROUND: On July 6, 2016, the City Council approved Consulting Services Agreement (A6875) with CVEP for continued management of the Palm Springs Innovation Hub ("PSiHub") and Palm Springs Accelerator Campus, (the 'Program"). In accordance with the Agreement, CVEP is required to submit quarterly progress reports to the City identifying how the Program is performing against certain metrics. CVEP has submitted its second quarterly report for the period of October 1 to December 31 , 2016, which is included as Attachment 1 for reference. ENVIRONMENTAL IMPACT: Section 15061 (b)(3) of the California Environmental Quality Act ("CEQA") Guidelines exempts activities that are covered under the general rule that CEQA applies only to projects that have the potential to cause significant effects on the environment. Where it can be seen with certainty that there is no possibility the activity in question may have ITEM NO. I• G- City Council Staff Report February 15, 2017- Page 2 CVEP !Hub Quarterly Report a significant effect upon the environment, the activity is not subject to CEQA. The requested action requests the City Council receive and file a quarterly report on the activities of CVEP and the Palm Springs I-Hub, which itself will not result in any new direct physical impacts to the environment. Therefore, the requested action is considered exempt from CEQA. FISCAL IMPACT: The City compensates CVEP $196,500 annually, paid in quarterly payments upon submission of the Quarter Report metrics required by the Agreement. SUBMITTED Marcus L. Fuller, M A, P.E., P. . David H. Ready, Esq., Assistant City Manager/City Engineer City Manager Attachment: 1. CVEP Hub Quarterly Report October 1 to December 31, 2016 02 Attachment 1 03 PALM SPRINGS IHUB AND ACCELERATOR CAMPUS QUARTERLY REPORT October 1 —December 30, 2016 Submitted by: Joe Wallace Palm Springs iHub Managing Director January 4, 2016 04 Executive Summary The Palm Springs Innovation Hub (PSiHub) is a State designated business incubator funded by the City of Palm Springs and managed by the Coachella Valley Economic Partnership (CVEP), an economic development organization serving the entire region. Currently the investors in the Mub are the City of Palm Springs, the Desert Healthcare District, and Wells Fargo Bank. In 2013 the City of Palm Springs and the Desert Healthcare District partnered to fund the refurbishment of a 43,000 square foot complex of buildings now known as the Palm Springs Accelerator Campus. The purpose for this campus is to encourage promising companies with proven concepts and markets to establish their supply chains and manufacturing operations in Palm Springs to reduce the risk of flight to places like Silicon Valley where exemplary incubation clients are often enticed by venture capital. The Mub's primary focus is on early stage businesses in the renewable energy and associated technology space. The iHub facilitates education, support, training, business assistance, and networking programs to contributing members, and overseas operations of a small business incubator. This report covers the fourth quarter of 2016. The quarter saw the client base in the iHub exceed capacity with 6 in-house, 11 in the Accelerator Campus, and 15 virtual clients for a total of 32 clients. A number of metrics for evaluating PSiHub progress were checked that are consistent with the goals of creating wealth and setting the transformation of the Coachella Valley economy into motion. PSiHub Q4 2016 Report Introduction The iHub is a network that enhances Coachella Valley's competitiveness by stimulating partnerships and collaborations that accelerate investment and economic development around research clusters. The iHub is focused on clean technology,with emphasis on sustainable businesses, renewable energy, and enhancing technologies. The goals of the iHub include: • Transform the local economy through growing renewable energy based enterprises • Nurture, attract,and grow 50 renewable energy based companies in 5 years • Create local high paying technology and manufacturing jobs in the Coachella Valley • Develop programs to enable and encourage the Coachella Valley and California compete in the global marketplace • Increase the per capita household income and standard of living regionally • Attract angel and venture capital investments in client companies The iHub operates a small business incubator that has the capacity to mentor up to six clients in-house at the Rabobank Business Center, 12 at the Accelerator Campus,and twelve virtually. The iHub offers office space to clients,complete with office equipment and amenities,access to shared conference rooms, a board room,and a dedicated staff that monitors and assists the clients. CViHub clients have access to professional services at free or reduced costs,targeted training classes,and workshops. 05 Community Relations/Accolades The iHub participated in the following events this quarter: • Spirit of the Entrepreneur Ceremony at CSU San Bernardino • Monthly California Innovation Hub Conference Calls(3) • Small Business Forum Discussions(3) • SBEMP Annual Business Excellence Awards Palm Springs iHub Clients on December 31, 2016 The iHub started Q4-2016 with thirty one incubator clients. During the second quarter a total of 5 applications or visits of interest to the iHub were reviewed and two accepted. One company was acquired by another iHub company during the quarter. The total at the end of the quarter was thirty two. Partnership Activity The partnerships resulted in tangible activity during this quarter: • Univ.of Redlands interviewing new candidates for MBA students to do a comprehensive business plan for. • Palm Springs iHub Managing Director promoted to the position of CEO of CVEP. • Two PS iHub Companies named runners up in the Spirit of Entrepreneurship Awards • CVEP continued to provide business assistance services with the Business Support Division run by Kyle Wagner with assistance from Laura Pellior. We are now more effective and less encumbered with non-value-adding reporting protocols. Metrics: The PSiHub updates their metrics and reports on them quarterly. The metrics include: Metric Result l Number of resident companies 6 Number of Virtual Companies J'li 15 Accelerator Campus Clients - 11 Number of graduating companies 1(10 total to date),with 10 others receiving services. Number of jobs created by PSiHub companies to date 153(9 this quarter) Revenue/sales from PSiHub companies(estimated for quarter) Greater than$1 Million I Investment Dollars Raised by PSiHub Clients $400,000 equity, 7 figure deal in negotiation. Number of sponsors,corporate partners, members or contracts for the Over 200 identified iHub Number of patent applications and issued patents(total) 1 application, 17 previously issued I Number of licenses or agreements by PSiHub companies 1 in discussion Funding sources and amounts leveraged/invested J�, Finishing 2 year WFB deal Number of companies receiving outreach services I. 6(excluding iHub clients) 06 Number of entities providing outreach services 3 Client Highlights from Q4-2016 Companies domiciled at the Palm Springs Accelerator Campus are all running ahead of their sales for 2016 by percentages ranging from a low of 35%to a high of over 100%. It is expected that iHub companies had about$7 Million in revenue in 2016 • SecoSys was named the winner of the SBEMP Business Award in the Environmental Category • Univocity entered the Accelerator Campus with 8 employees expecting to grow to 17 within first year. • EV Enterprises secured funding from a well know local investor • Indy Power Systems completed conversion of profits interests to common stock in advance of a large equity investment. • Pocial and EV Enterprises were named runners up for the Spirit of the Entrepreneur Award Previously Stated Goals for Q4-2016 • Complete draft of 5 year plan for PSiHub and Accelerator Campus • Investigate options available to reduce utility costs at Accelerator Campus • Submit annual report to Go-Biz • Investigate feasibility for having a Maker Space at the Accelerator Campus Draft plan underway It was concluded after getting 3 quotes that solar is not a feasible option for the Accelerator Campus GoBiz changed the due date for the annual report to 3/31/2017 Maker Space investigation continuing. CVEP board member touring one this quarter Goals for Q4-2016 • Complete plan for next 5 years • Finalize and submit Go Biz annual report • Finish Wells Fargo 2 year grant and submit report. Start groundwork for another • Investigate getting fiber optic communications into Accelerator Campus • Submit final close out paperwork to EDA. Measure J Progress Report • All projects completed and all dollars expended and accounted for. Appendices: • !Hub Companies circa December 31, 2016 07 3111 E.Tahquitz Canyon Way Palm Springs, CA 92262 p:(760)340-1575 p:(760)548-0370 w: CV1H Palm Springs iHub Roster (Q3 2016) Energy (Renewables/Management/Conservation) • Desert GeoExchange:Parent company Geothermal Resource Group provides drilling services. Desert GeoExchange is evaluating its entrance into geothermal heating/cooling systems. • EV Enterprises: Producer of lithium-ion battery components,microelectronics and other related products for electric vehicle applications and more. *Located at Palm Springs Accelerator Campus • Heppolt. Heppolt has created a new wind turbine. The design allows for installation&maintenance to be carried out at ground level as opposed to current vertical turbines. HWE is receiving support from Los Alamos National Lab. • Indy Power Systems: Offers a patented energy blending technology to enable customers to minimize their load charges by storing energy during periods of low demand for use during peak demand times. • Sactec Solar: A designer and manufacturer of all-in-one alternative energy solution systems. These units can be deployed in regions or situations where power is not easily accessible. *Located at Palm Springs Accelerator Campus • SECOSYS: Their platform seamlessly integrates into existing water meters to manage, control & conserve water in real-time for water districts, property managers and consumers. *Located at Palm Springs Accelerator Campus • Solaris Power Cells: Producer of super capacitor, solid-state cells that have the potential to store energy with rapid charging rates. *Located at Palm Springs Accelerator Campus • SoMqua: China-based manufacturer of solar/solar thermal components looking to establish a U.S.-based manufacturing hub. • Swiss Hytech:Swiss-based business engaged in hybrid LeMans racing.Their technology uses a flywheel to store energy as opposed to other storage systems such as battery systems. • Vestaxx.,German-based startup developing insulating glass units for applications in intelligent and dynamic windows and glass building facades.Their propriety glass coating technology increases thermal insulation efficiency. Healthcare/Medical Innovation • ButterFLi Inc.: ButterFLi has created a local infrastructure for on-demand assisted transportation for seniors and those with disabilities, such as those who are wheelchair-bound. ButterFLi is like UBER but for non-emergency medical transportation for seniors and those with disabilities. *Located at Palm Springs Accelerator Campus • Elizabeth Wong:Elizabeth Wong is a local CRNA who was recently granted a U.S. patent for a new sterile IV port and syringe system.She is currently working on prototype variations of this system. • GattaCo: Developing technologies that can replace the need for centrifuges and allows for extraction of plasma from whole blood in half the time of current means. *Located at Health&Medical Innovation Center 08 3111 E.Tahquitz Canyon Way Palm Springs,CA 92262 p:(760) 340-1575 p:(760)548-0370 w: C" IILI') -0 m • Incontinence Technologies:The Fanny Wrapper is an adult diaper system with an integrated sensor unit used to aid caretakers of incontinent adults. • Pacific Coast Innovations: Designer of a proprietary data compression algorithm that has many different industry applications.Their first application will be in the manufacturing of medical devices. • Pet Projx LLC: Pet Projx is introducing a new hand sanitizer/disinfectant that will focus on the social acceptance, appeal and form factor that currently hinders this category. Pet Projx also has ancillary products to introduce down the road that would expand into the beauty and cosmetics category. • Priatas:A medical device company focused on the intelligent design of medical and lab ware disposables throughout the entire life cycle of the product. By using less material in design and modulating certain instruments they hope to decrease medical waste. *Located at Health&Medical Innovation Center • PureOzone 360: Currently researching a new type of disinfectant that would use proprietary technology for end- consumer sales. • Restroom Aid.,A proprietary system designed to give independence to handicapped individuals who otherwise need assistance using the restroom. • TransMedlmaging: Operates in the electronic health record industry. Their propriety service eliminates waste in medical imaging by facilitation of cloud based data,and hi-res medical images storage. Software—Primary(Education,Lifestyle,Marketing,Social Media) • Pocial:A new,creative social network designed to connect like-minded individuals based around polling in an effort to foster and encourage debate,create a collective voice and quantify opinions. • PS Talent:Developer of virtual entertainment products on the Sony PlayStation platform. • SpartaApp:Propriety mobile application platform for connecting artists with art collectors worldwide. • Univocity Media:Univocity is a cutting-edge,multi-media company leading the way in the production,distribution and marketing of audio and video content,across platforms. *Located at the Palm Springs Accelerator Campus • Wise Education:Delivers online English as a second language education worldwide using a unique video conferencing platform. Hardware—Primary(Security,Service, Social Media) • Heightened Security:HS is a local manufacturer of security solutions for residential and commercial clients.Their product can seamlessly integrate into existing security systems. • Paul Roide:Paul Roide is a local tradesman. He has developed and patented a new paint gun sprayer that aims to dramatically increase the efficiency of currently available models. *Located at the Palm Springs Accelerator Campus • Post Modern:A developer of integrated hardware/software systems for consumer marketing.Their system allows marketers to integrate social media into marketing events and tradeshows using interactive kiosks. *Located at Palm Springs Accelerator Campus 09, 3111 E.Tahquitz Canyon Way Palm Springs, CA 92262 p:(760)340-1575 p:(760)548-0370 w: CVi;iub.�om • Seismic Warning Systems:Developing a regionally-based earthquake warning system with proprietary detection and customized-alert technology. Textile &Wearables • Eco Culture Manufacturing:Textile manufacturing focused on recyclable materials and integration of sensor technologies for smart devices. • hipS-sister:Manufacturer of the fashionable,functional and flattering alternative to the fanny pack that integrates a shield for electromagnetic fields caused by cell phones. *Located at Palm Springs Accelerator Campus • Platinum Sun:Designer of rash guards,leggings and neoprene jackets.Currently based in Miami with intentions of relocating operations to California. 10