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CITY COUNCIL STAFF REPORT
DATE: July 6, 2016 CONSENT CALENDAR
SUBJECT: APPROVE A CONSULTING SERVICES AGREEMENT BETWEEN THE
CITY OF PALM SPRINGS AND THE COACHELLA VALLEY ECONOMIC
PARTNERSHIP FOR ADMINISTRATIVE AND MANAGEMENT
SERVICES OF THE PALM SPRINGS INNOVATION HUB AND
ACCELERATOR CAMPUS.
FROM: David H. Ready, City Manager
BY: Community & Economic Development
SUMMARY
The City Council will consider approving a Consulting Services Agreement
("Agreement') with the Coachella Valley Economic Partnership (CVEP) for continued
management of the Palm Springs Innovation Hub (PSiHub) and Palm Springs
Accelerator Campus ("Program"). This Agreement replaces and supersedes the
previous Consulting Services Agreement, which was entered into on July 1 , 2011 , and
last extended to June 30, 2015. The original agreement was largely focused on the
startup of the original iHub, designated in 2010.
The PSiHub/Accelerator Consulting Services Agreement facilitates the terms by which
CVEP delivers management, administrative and client services to meet the goals of the
Program, including, but not limited to, providing education, support, training, business
assistance, and networking programs. CVEP also manages the physical office space
reserved for PSiHub clients housed at the Rabobank Regional Business Center and at
the Accelerator Campus.
The PSiHub is recognized in the State of California as a 'Best Practice" model to
develop start up incubator programs. Palm Springs has the only Accelerator Campus
combined with an innovation hub in the nation. The significant success of both
programs and facilities has led to new business development, job creation, and
investment.
RECOMMENDATION:
1. Approve the Consulting Services Agreement with the Coachella Valley Economic
Partnership.
2. Authorize the City Manager to execute all necessary documents.
ITEM NO.
City Council Staff Report
July 6, 2016-- Page 2
CVEP Consulting Services Agreement
STAFF ANALYSIS:
The Palm Springs Innovation Hub Program is one of the original six iHubs designated by
the State of California in 2010. Today there are sixteen iHub designations throughout
California.
The City of Palm Springs is the State designated coordinator of the iHub Initiative, and
the Coachella Valley Economic Partnership is the non-profit host managing the PSiHub
Program. The City's Innovation Hub designation requires that the PSiHub Program be
managed under a non-profit (501(c)(3) status.
The PSiHub Program is focused on growing and mentoring start-up companies
primarily, but not exclusively, in the renewable energy and clean/green technology
industries, including health, wellness, and medical technology innovations. In 2012 the
Program expanded to include the Palm Springs Accelerator Campus — specifically for
advanced PSiHub clients who are ready to conduct research and development, as well
as to prototype, manufacture and commercialize their products or services.
On October 4, 2013 AB 250 was approved, officially codifying the California Innovation
Hub (iHub) Program within the Governor's Office of Business and Economic
Development (GO-Biz). The City executed the Memorandum of Understanding (MOU)
that outlines requirements that the designated iHub agrees to, followed by requirements
of the State. The State MOU is incorporated in the CVEP Agreement as Exhibit "C".
The PSiHub operates as a small business incubator with the capacity to mentor six
clients in-house at the Rabobank Regional Business Center, and 12 clients at the
Accelerator Campus. Non-resident (virtual) clients also receive mentoring services.
There are currently 27 companies in the Program. The report for 1st Quarter 2016
(attached) describes community relations and accolades, partnership activities, and
client descriptions and highlights.
In addition to client services, other management responsibilities include: pursuing
public/private funding in order to evolve to a sustainable program; preparing quarterly
reports and the State's annual report; developing and keeping current the website,
calendar and social network accounts; and overseeing an iHub Advisory Board and
client selection criteria.
Palm Springs has been recognized as a leader for its commitment to the iHub and
Accelerator Program. In 2014, the PSiHub received a Model Community Achievement
Award from South Coast Air Quality Management District at their 26'" Annual Clean Air
Awards Ceremony. The World's Best Technologies Conference awarded two iHub
clients in 2013 and 2014 with silver and bronze awards. One iHub company received
the Emerging Entrepreneur award in 2013 from the Inland Empire Spirit of the
Entrepreneur, and the following year Joe Wallace, representing PSiHub, received the
Supporter of Entrepreneurship Award.
02
City Council Staff Report
July 6, 2016-- Page 3
CVEP Consulting Services Agreement
FISCAL IMPACT:
The management and administrative services fee is $196,500 annually, and is part of the
Economic Development Program's General Fund budget for the 2016/2017 Fiscal Year.
The second year's funding will be requested during the succeeding year's budget cycle. If
the City Council does not approve the second year funding, the Agreement will be
terminated in accordance with Section 4.5 of the Agreement.
CVEP continues to pursue revenue support for the Program and recently secured a
$200,000 grant from Wells Fargo Bank, specifically for naming rights for one of the
buildings at the Palm Springs Accelerator Campus. Previous grants include $500,000
from the Desert Healthcare District for the naming rights at Health & Medical Innovation
building at the Campus, and one million in Measure J funding to renovate the Accelerator
Campus. Other funding sources are being pursued.
auri Aylaian, Director Cathy Van Hor , Administrator
Community & Economic Development Community & Economic Development
David H. Ready, Esq., Ph. anager
Attachments:
Consulting Services Agreement
PSiHub &Accelerator Preliminary Budget
PSiHub 1st Quarter Report (2016)
PSiHub 4 year Metrics
03
CONSULTING SERVICES AGREEMENT
(Administrative and Management Services Agreement
Coachella Valley Economic Partnership)
THIS AGREEMENT FOR CONSULTING SERVICES ("Agreement") is made and
entered into on July 1, 2016, by and between the City of Palm Springs, a California charter city
and municipal corporation ("City"), and the Coachella Valley Economic Partnership, a
California non-profit corporation, ("Consultant'). City and Consultant are individually referred
to as "Party" and are collectively referred to as the "Parties".
RECITALS
A. City requires the services of a consultant, to operate the Palm Springs Innovation
Hub and Palm Springs Accelerator Campus, ("Project').
B. Consultant has submitted to City a proposal to provide administrative and
management services to City under the terms of this Agreement.
C. Based on its experience, education, training, and reputation, Consultant is
qualified and desires to provide the necessary services to City for the Project.
D. City desires to retain the services of Consultant for the Project.
In consideration of these promises and mutual agreements, City agrees as follows:
AGREEMENT
1. CONSULTANT SERVICES
1.1 Scope of Services. In compliance with all terms and conditions of this
Agreement, Consultant shall provide administrative and management services to City as
described in the Scope of Services and Schedule of Compensation attached to this Agreement as
Exhibit "A" and incorporated by reference (the "services" or "work"). Consultant warrants that
all services and work shall be performed in a competent, professional, and satisfactory manner
consistent with prevailing industry standards. In the event of any inconsistency between the
terms contained in the Scope of Services/Work and the terms set forth in this Agreement, the
terms set forth in this Agreement shall govern.
1.2 Compliance with Law. Consultant services rendered under this Agreement shall
comply with all applicable federal, state, and local laws, statutes and ordinances and all lawful
orders, rules, and regulations.
1.3 Licenses and Permits. Consultant shall obtain at its sole cost and expense such
licenses, permits, and approvals as may be required by law for the performance of the services
required by this Agreement.
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1.4 Familiarity with Work. By executing this Agreement, Consultant warrants that
it has carefully considered how the work should be performed and fully understands the
facilities, difficulties, and restrictions attending performance of the work under this Agreement.
2. TIME FOR COMPLETION
The time for completion of the services to be performed by Consultant is an essential
condition of this Agreement. Consultant shall prosecute regularly and diligently the work of this
Agreement according to Exhibit "A." Consultant shall not be accountable for delays in the
progress of its work caused by any condition beyond its control and without the fault or
negligence of Consultant. Delays shall not entitle Consultant to any additional compensation
regardless of the party responsible for the delay.
3. COMPENSATION OF CONSULTANT
3.1 Compensation of Consultant. Consultant shall be compensated and reimbursed
for the services rendered under this Agreement in accordance with the schedule of fees set forth
in Exhibit "A". The total amount of Compensation shall not exceed $196,500.
3.2 Method of Payment. In any month in which Consultant wishes to receive
payment, Consultant shall submit to City an invoice for services rendered prior to the date of the
invoice, no later than the first working day of such month, in the form approved by City's
finance director. Payments shall be based on the hourly rates set forth in Exhibit "A" for
authorized services performed. City shall pay Consultant for all expenses stated in the invoice
that are approved by City and consistent with this Agreement, within thirty (30) days of receipt
of Consultant's invoice.
3.3 Chances. In the event any change or changes in the Scope of Services/Work is
requested by City, Parties shall execute a written amendment to this Agreement, specifying all
proposed amendments, including, but not limited to, any additional fees. An amendment may be
entered into:
A. To provide for revisions or modifications to documents, work product, or
work, when required by the enactment or revision of any subsequent law; or
B. To provide for additional services not included in this Agreement or not
customarily furnished in accordance with generally accepted practice in Consultant's profession.
3.4 Appropriations. This Agreement is subject to, and contingent upon, funds being
appropriated by the City Council of City for each fiscal year. If such appropriations are not
made, this Agreement shall automatically terminate without penalty to City.
4. PERFORMANCE SCHEDULE
4.1 Time of Essence. Time is of the essence in the performance of this Agreement.
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4.2 Schedule of Performance. All services rendered under this Agreement shall be
performed as set forth in Exhibit "A." Any time period extension must be approved in writing
by the Contract Officer.
4.3 Force Maieure. The time for performance of services to be rendered under this
Agreement may be extended because of any delays due to unforeseeable causes beyond the
control and without the fault or negligence of Consultant, if Consultant notifies the Contract
Officer within ten (10) days of the commencement of such condition. Unforeseeable causes
include, but are not limited to, acts of God or of a public enemy, acts of the government, fires,
earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, and
unusually severe weather. After Consultant notification, the Contract Officer shall investigate
the facts and the extent of any necessary delay, and extend the time for performing the services
for the period of the enforced delay when and if, in the Contract Officer's judgment, such delay
is justified. The Contract Officer's determination shall be final and conclusive upon the parties
to this Agreement.
4.4 Term. Unless earlier terminated in accordance with Section 4.5 of this
Agreement, this Agreement shall continue in full force and effect for a period of twenty four (24)
months, commencing on July 1, 2016, and ending on June 30, 2018, unless extended by mutual
written agreement of the parties.
4.5 Termination Prior to Expiration of Term. City may terminate this Agreement
at any time, with or without cause, upon thirty (30) days written notice to Consultant. Where
termination is due to the fault of Consultant and constitutes an immediate danger to health,
safety, and general welfare, the period of notice shall be such shorter time as may be determined
by the City. Upon receipt of the notice of termination, Consultant shall immediately cease all
services except such as may be specifically approved by the Contract Officer. Consultant shall
be entitled to compensation for all services rendered prior to receipt of the notice of termination
and for any services authorized by the Contract Officer after such notice. Consultant may
terminate this Agreement, with or without cause, upon thirty(30) days written notice to City.
5. COORDINATION OF WORK
5.1 Representative of Consultant. The following principal of Consultant is
designated as being the principal and representative of Consultant authorized to act and make all
decisions in its behalf with respect to the specified services and work: Joe Wallace, Acting
President/CEO. It is expressly understood that the experience, knowledge, education, capability,
and reputation of the foregoing principal is a substantial inducement for City to enter into this
Agreement. Therefore, the foregoing principal shall be responsible during the term of this
Agreement for directing all activities of Consultant and devoting sufficient time to personally
supervise the services under this Agreement. The foregoing principal may not be changed by
Consultant without prior written approval of the Contract Officer.
5.2 Contract Officer. The Contract Officer shall be the City Manager or his/her
designee ("Contract Officer"). Consultant shall be responsible for keeping the Contract Officer
fully informed of the progress of the performance of the services. Consultant shall refer any
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decisions that must be made by City to the Contract Officer. Unless otherwise specified, any
approval of City shall mean the approval of the Contract Officer.
5.3 Prohibition Against Subcontracting or Assignment. The experience,
knowledge, education, capability, and reputation of Consultant, its principals and employees,
were a substantial inducement for City to enter into this Agreement. Therefore, Consultant shall
not contract with any other individual or entity to perform any services required under this
Agreement without the City's express written approval. In addition, neither this Agreement nor
any interest may be assigned or transferred, voluntarily or by operation of law, without the prior
written approval of City.
5.4 Independent Contractor. Neither City nor any of its employees shall have any
control over the manner, mode, or means by which Consultant, its agents or employees, perform
the services required, except as otherwise specified. Consultant shall perform all required
services as an independent contractor of City and shall not be an employee of City and shall
remain at all times as to City a wholly independent contractor with only such obligations as are
consistent with that role; however, City shall have the right to review Consultant's work product,
result, and advice. Consultant shall not at any time or in any manner represent that it or any of
its agents or employees are agents or employees of City.
5.5 Personnel. Consultant agrees to assign the following individuals to perform the
services in this Agreement. Consultant shall not alter the assignment of the following personnel
without the prior written approval of the Contract Officer. Acting through the City Manager, the
City shall have the unrestricted right to order the removal of any personnel assigned by
Consultant by providing written notice to Consultant.
Name: Title:
Joe Wallace Chief Innovation Of and Managing Director of the
Palm Springs iFlub and Accelerator Campus
Kyle Wagner Assistant Director, Innovation and Business Services
6. INSURANCE
Consultant shall procure and maintain, at its sole cost and expense, policies of insurance
as set forth in the attached Exhibit "B", incorporated herein by reference.
7. INDEMNIFICATION.
7.1 Indemnification. To the fullest extent permitted by law, Consultant shall
defend (at Consultant's sole cost and expense), indemnify, protect, and hold harmless City, its
elected officials, officers, employees, agents, and volunteers (collectively the "Indemnified
Parties"), from and against any and all liabilities, actions, suits, claims, demands, losses, costs,
judgments, arbitration awards, settlements, damages, demands, orders, penalties, and expenses
4 Revised:515116 07
720599,1
including legal costs and attorney fees (collectively "Claims"), including but not limited to
Claims arising from injuries to or death of persons (Consultant's employees included), for
damage to property, including property owned by City, from any violation of any federal, state,
or local law or ordinance, and from errors and omissions committed by Consultant, its officers,
employees, representatives, and agents, that arise out of or relate to Consultant's performance
under this Agreement. This indemnification clause excludes Claims arising from the sole
negligence or willful misconduct of the City, its elected officials, officers, employees, agents,
and volunteers. Under no circumstances shall the insurance requirements and limits set forth in
this Agreement be construed to limit Consultant's indemnification obligation or other liability
under this Agreement. Consultant's indemnification obligation shall survive the expiration or
earlier termination of this Agreement until all actions against the Indemnified Parties for such
matters indemnified are fully and finally barred by the applicable statute of limitations or, if an
action is timely filed, until such action is final. This provision is intended for the benefit of third
party Indemnified Parties not otherwise a party to this Agreement.
7.2 Design Professional Services Indemnification and Reimbursement. if the
Agreement is determined to be a "design professional services agreement" and Consultant is a
"design professional" under California Civil Code Section 2782.8, then:
A. To the fullest extent permitted by law, Consultant shall indemnify, defend
(at Consultant's sole cost and expense), protect and hold harmless City and its elected officials,
officers, employees, agents and volunteers and all other public agencies whose approval of the
project is required, (individually"Indemnified Party'; collectively "Indemnified Parties") against
any and all liabilities, claims, judgments, arbitration awards, settlements, costs, demands, orders
and penalties (collectively "Claims"), including but not limited to Claims arising from injuries or
death of persons (Consultant's employees included) and damage to property, which Claims arise
out of, pertain to, or are related to the negligence, recklessness or willful misconduct of
Consultant, its agents, employees, or subcontractors, or arise from Consultant's negligent,
reckless or willful performance of or failure to perform any term, provision, covenant or
condition of this Agreement ("Indemnified Claims"), but Consultant's liability for Indemnified
Claims shall be reduced to the extent such Claims arise from the negligence, recklessness or
willful misconduct of the City and its elected officials, officers, employees, agents and
volunteers.
B. The Consultant shall require all non-design-professional sub-contractors,
used or sub-contracted by Consultant to perform the Services or Work required under this
Agreement, to execute an Indemnification Agreement adopting the indemnity provisions in sub-
section 7.1 in favor of the Indemnified Parties. In addition, Consultant shall require all non-
design-professional sub-contractors, used or sub-contracted by Consultant to perform the
Services or Work required under this Agreement, to obtain insurance that is consistent with the
Insurance provisions as set forth in this Agreement, as well as any other insurance that may be
required by Contract Officer.
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8. RECORDS AND REPORTS
8.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer
reports concerning the performance of the services required by this Agreement, or as the
Contract Officer shall require.
8.2 Records. Consultant shall keep complete, accurate, and detailed accounts of all
time, costs, expenses, and expenditures pertaining in any way to this Agreement. Consultant
shall keep such books and records as shall be necessary to properly perform the services required
by this Agreement and enable the Contract Officer to evaluate the performance of such services.
The Contract Officer shall have full and free access to such books and records at all reasonable
times, including the right to inspect, copy, audit, and make records and transcripts from such
records.
8.3 Ownership of Documents. All drawings, specifications, reports, records,
documents, and other materials prepared by Consultant in the performance of this Agreement
shall be the property of City. Consultant shall deliver all above-referenced documents to City
upon request of the Contract Officer or upon the termination of this Agreement. Consultant shall
have no claim for further employment or additional compensation as a result of the exercise by
City of its full rights or ownership of the documents and materials. Consultant may retain copies
of such documents for Consultant's own use. Consultant shall have an unrestricted right to use
the concepts embodied in such documents.
8.4 Release of Documents. All drawings, specifications, reports, records,
documents, and other materials prepared by Consultant in the performance of services under this
Agreement shall not be released publicly without the prior written approval of the Contract
Officer.
8.5 Cost Records. Consultant shall maintain all books, documents, papers, employee
time sheets, accounting records, and other evidence pertaining to costs incurred while performing
under this Agreement. Consultant shall make such materials available at its offices at all
reasonable times during the term of this Agreement and for three (3) years from the date of final
payment for inspection by City and copies shall be promptly furnished to City upon request.
9. ENFORCEMENT OF AGREEMENT
9.1 California Law. This Agreement shall be construed and interpreted both as to
validity and to performance of the parties in accordance with the laws of the State of California.
Legal actions concerning any dispute, claim, or matter arising out of or in relation to this
Agreement shall be instituted in the Superior Court of the County of Riverside, State of
California, or any other appropriate court in such county, and Consultant covenants and agrees to
submit to the personal jurisdiction of such court in the event of such action.
9.2 Interpretation. This Agreement shall be construed as a whole according to its
fair language and common meaning to achieve the objectives and purposes of the Parties. The
terms of this Agreement are contractual and the result of negotiation between the Parties.
Accordingly, any rule of construction of contracts (including, without limitation, California Civil
Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be (]
6 Revised:515116 9
7M599.1
employed in the interpretation of this Agreement. The caption headings of the various sections
and paragraphs of this Agreement are for convenience and identification purposes only and shall
not be deemed to limit, expand, or define the contents of the respective sections or paragraphs.
9.3 Waiver. No delay or omission in the exercise of any right or remedy of a non-
defaulting party on any default shall impair such right or remedy or be construed as a waiver.
No consent or approval of City shall be deemed to waive or render unnecessary City's consent to
or approval of any subsequent act of Consultant. Any waiver by either party of any default must
be in writing. No such waiver shall be a waiver of any other default concerning the same or any
other provision of this Agreement.
9.4 Rights and Remedies are Cumulative. Except with respect to rights and
remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the
parties are cumulative. The exercise by either party of one or more of such rights or remedies
shall not preclude the exercise by it, at the same or different times, of any other rights or
remedies for the same default or any other default by the other party.
9.5 Legal Action. In addition to any other rights or remedies, either party may take
legal action, in law or in equity, to cure, correct, or remedy any default, to recover damages for
any default, to compel specific performance of this Agreement, to obtain injunctive relief, a
declaratory judgment, or any other remedy consistent with the purposes of this Agreement.
10. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION
10.1 Non-Liability of City Officers and Employees. No officer or employee of City
shall be personally liable to the Consultant, or any successor-in-interest, in the event of any
default or breach by City or for any amount which may become due to the Consultant or its
successor, or for breach of any obligation of the terms of this Agreement.
10.2 Conflict of Interest. Contractor acknowledges that no officer or employee of the
City has or shall have any direct or indirect financial interest in this Agreement nor shall
Contractor enter into any agreement of any kind with any such officer or employee during the
term of this Agreement and for one year thereafter. Contractor warrants that Contractor has not
paid or given, and will not pay or give, any third party any money or other consideration in
exchange for obtaining this Agreement.
10.3 Covenant Against Discrimination. Consultant covenants that, by and for itself,
its heirs, executors, assigns, and all persons claiming under or through them, that there shall be
no discrimination or segregation in the performance of or in connection with this Agreement
regarding any person or group of persons on account of race, color, creed, religion, sex, marital
status, disability, sexual orientation, gender identity, gender expression, national origin, physical
or mental disability, medical condition, or ancestry.
11. MISCELLANEOUS PROVISIONS
11.1 Notice. Any notice, demand, request, consent, approval, or communication that
either party desires, or is required to give to the other party or any other person shall be in
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720599.1
writing and either served personally or sent by pre-paid, first-class mail to the address set forth
below. Notice shall be deemed communicated seventy-two (72) hours from the time of mailing
if mailed as provided in this Section. Either party may change its address by notifying the other
party of the change of address in writing.
To City: City of Palm Springs
Attention: City Manager/ City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, California 92262
To Consultant: Attention: President/CEO
Coachella Valley Economic Partnership
3111 E. Tahquitz Canyon Way
Palm Springs, California 92262
11.2 Integrated Agreement. This Agreement contains all of the agreements of the
parties and supersedes all other written agreements.
11.3 Amendment. No amendments or other modifications of this Agreement shall be
binding unless through written agreement by all Parties.
11.4 Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such a manner as to be effective and valid under applicable law. In the event that
any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this
Agreement shall be declared invalid or unenforceable by valid judgment or decree of a court of
competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining
phrases, sentences, clauses, paragraphs, or sections of this Agreement, which shall be interpreted
to cant'out the intent of the parties.
11.5 Successors in Interest. This Agreement shall be binding upon and inure to the
benefit of the Parties' successors and assignees.
11.6 Third Party Beneficiary. Except as may be expressly provided for in this
Agreement, nothing contained in this Agreement is intended to confer, nor shall this Agreement
be construed as conferring, any rights, including, without limitation, any rights as a third-party
beneficiary or otherwise, upon any entity or person not a party to this Agreement.
11.7 Recitals. The above-referenced Recitals are hereby incorporated into the
Agreement as though fully set forth in this Agreement and each Party acknowledges and agrees
that such Party is bound, for purposes of this Agreement, by the same.
11.8 Authority. The persons executing this Agreement on behalf of the Parties
warrant that they are duly authorized to execute this Agreement on behalf of Parties and that by
so executing this Agreement the Parties are formally bound to the provisions of this Agreement.
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7205W 1
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates
stated below.
"CITY"
City of Palm Springs
Date: By:
David H. Ready, Esq., Ph.D.
City Manager
APPROVED AS TO FORM: ATTEST
By: By:
Douglas C. Holland James Thompson
City Attorney City Clerk
"CONSULTANT"
(Coachella Valley Economic Partnership)
Date: By :
Joe Wallace
President/Ceo
Date:
(name)
(secretary)
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EXHIBIT "A"
SCOPE OF SERVICES and
SCHEDULE OF COMPENSATION
CVEP Obligations and Responsibilities:
On an annual basis during the term of this Agreement the Coachella Valley Economic
Partnership (CVEP) shall provide to the City the following administrative and management
services for the operation of the Coachella Valley Innovation Hub (CViHub) and the Palm
Springs Accelerator Campus (Accelerator):
• Continue responsibility for further development and operations of CViHub and
Accelerator program and services;
• Maintain a dedicated, full-time manager to direct and oversee CViHub and Accelerator
operations, and provide direct services to clients;
• Pursue other public and private funding sources, i.e., grants and sponsorships in order to
generate a sustainable program;
• Oversee/maintain the CViHub and Accelerator website, calendar, blog, and social
networking accounts;
• Prepare and submit quarterly reports against performance metrics set forth by the City of
Palm Springs (Attachment "1") as follows: July 1 to September 30 due in October,
January 1 to March 31 due in April, October 1 to December 31 due in January, April 1 to
June 30 due in July;
• Prepare and submit annual reports in accordance with sections 8 and 9 of the State of
California Innovation Hub Memorandum of Understanding (Exhibit "C"); and submit a
copy of all reports to the City Contract Administrator and perform all other duties of the
State of California Innovation Hub MOU;
• Prepare and submit quarterly financial reports within 30 days of quarter ending.
Financial reports should include revenue and expenditures for the reporting period.
• Coordinate Advisory Board meetings and all records as needed (Attachment"2");
• Oversee selection criteria, application process, incubator and accelerator campus
leases/occupants (Attachment "3");
• Deliver CViHub and Accelerator program and client services, including but not limited
to:
I I Revised:515/16 14
720599.1
A. Facility Based Services for Clients of the CViHub and Accelerator Campus
Administration
1. Space
a. Telephone— (unlimited local and national calls)
b. Local Area Network (LAN)
c. High Speed Internet Access
d. Space for individual servers
e. Shared Conference Room
f. Physical and mailing Address
g. Restrooms
h. Janitorial services
2. Rent—determined by Advisory Board
a. Free
b. Below market rate
3. Shared Office Systems
a. Copies (at cost)
b. Fax (incoming and outgoing)
c. Postage meter(at cost)
d. Receptionist/switchboard
e. Usage/user charge for other office systems to be determined by
CViHub & Accelerator Manager or Advisory Board.
B. Client Services
1. Seminars & Workshops to be hosted by the CViHub/Accelerator
a. Business plans
b. Financial management and accounting support
c. Financing assistance
d. HR support
e. Hot Topics— Special Interest
f. Commercialization/Technology Licensing
2. One-on-One Meetings/Support
3. Mentoring Program
C. Access to Professional Services Providers
1. Accounting & Financial Professionals
2. Regulatory Compliance
3. E-commerce
4. Government procurement
5. Manufacturing Assistance
12 Revised:5/5/16 1 t
720599.1 1 1
6. Legal Services
7. International Trade
D. Networking Opportunities
1. Events
2. Introductions
3. Virtual
E. Access to Other Educational Seminar and Training Providers
1. SBDC (Small Business Development Center)
2. SBA (Small Business Association)
3. SCORE (Counselors to America's Small Businesses)
4. CVWDC (Coachella Valley Women's Business Center)
5. CIEDEC (CA Inland Empire District Export Council)
F. Administer all other Agreements between the City and CVEP in a timely and
appropriate manner.
13 Revised:515116
720599.1
SCHEDULE OF COMPENSATION
City shall pay CVEP $196,500 annually, to be billed on a quarterly basis in alignment with the
submission of the Quarterly Report metrics described in Attachment "I".
Compensation shall be paid in advance of the quarter upon receipt of an invoice pursuant to
Section 3 of the Agreement, as follows:
July 1 to September 30 Paid in July
October 1 to December 31 Paid in October
January 1 to March 31 Paid in January
April 1 to June 30 Paid in April
14 Revised:5/5116 17
720599J -
Attachment "1"
Quarterly Reporting Metrics
CVEP shall provide a quarterly report to the City of Palm Springs that shall contain, but not be
limited to, the following information:
• Companies (contact information) providing outreach services
• Companies (contact information) receiving outreach services
• Number of companies in residence
• Number of graduating companies
• Number of employees hired by CViHub and Accelerator companies (jobs created —
monthly and cumulative)
• Number of employees hired by CViHub and Accelerator graduate companies (jobs
created—monthly and cumulative)
• Revenues/sales from CViHub and Accelerator start-up companies
• Number of interns/students trained
• Number of sponsors, corporate partners, members or contracts signed
• Number of patent disclosures/applications by CViHub and Accelerator companies
• Funding sources and amounts leveraged or invested in CViHub and Accelerator
companies
5 Revised:515116
��0599.� 18
Attachment "2"
Palm Springs Accelerator Campus & iHub Advisory Board
The Advisory Board shall be comprised of the City of Palm Springs two-member Council
Subcommittee, City Manager, and assigned staff.
Advisory Board Duties
The Advisory Board shall establish policy guidelines for the CViHub Incubator program and
Palm Springs Accelerator Campus. The Board will be instrumental in promoting the CViHub
and Accelerator Initiative and generating awareness and understanding of the programs as an
important economic development tool for Palm Springs.
Composition of the Advisory Board may be subject to change during the term of the Agreement.
The Advisory Board and CVEP may recommend changes to its composition. Such a change
shall constitute a minor change to the Agreement. The City Manager of the City of Palm Springs
or his designee is authorized to approve proposed changes to the Advisory Board.
16 Revised:515116 19
720599.1
Attachment "Y
CVEP shall establish a Selection Committee to review and select qualified candidates for the
CViHub and Accelerator programs. The Selection Committee shall include two (2) business
representatives within the City of Palm Springs, a staff representative from the City of Palm
Springs, a CVEP Executive Board member, and the CViHub/Accelerator Manager. The
CViHub/Accelerator Manager shall manage the Selection Committee's review process and
prepare all related reports.
CViHub/Accelerator Incubator Client Selection
The CViHub/Accelerator Selection process is as follows:
1. Intake of completed Client Application
2. Application(s) presented to Selection Committee.
3. Selection Committee accepts or declines application
Evaluation Criteria
1. Meets Targeted industry sectors — innovative information solutions, clean technology,
renewable energy and new emerging technology
2. Early stage of development (typically within first two years, but small companies
undergoing change in direction or launching new product may also apply)
3. Potential to commercialize or launch within 3 years
4. Ability to pay rent while cash flow is developed
5. Desire to take advantage of and benefit from value added services and guidance
6. Capacity for growth,job creation and economic benefit
7. Not in direct competition with other incubator clients (or no conflict)
Graduation Policies
1. Time Limits — Clients shall be limited to a term of no more than 3 to 5 years in the
incubator
2. Clients who have progressed beyond benefit of services sooner than the 3-year term may
graduate early
3. Clients who require excessive commitment of resources and do not demonstrate progress
toward graduation may be terminated from the program.
The client selection, evaluation criteria and graduation policies may be subject to change.
Changes to the Selection Criteria are determined by the Advisory Board and CVEP and shall
constitute a minor change to the Agreement. The City Manager of the City of Palm Springs or
his designee is authorized to approve the proposed changes for the Client Selection Committee,
7 Revised:5l5/16 20
720599.1
EXHIBIT "B"
INSURANCE PROVISIONS
Including
Verification of Coverage,
Sufficiency of Insurers,
Errors and Omissions Coverage,
Minimum Scope of Insurance,
Deductibles and Self-Insured Retentions, and
Severability of Interests (Separation of Insureds)
18 Revised:515116 G 1
720599A
INSURANCE
1. Procurement and Maintenance of Insurance. Consultant shall procure and
maintain public liability and property damage insurance against all claims for injuries against
persons or damages to property resulting from Consultant's performance under this Agreement.
Consultant shall procure and maintain all insurance at its sole cost and expense, in a form and
content satisfactory to the City, and submit concurrently with its execution of this Agreement.
Consultant shall also carry workers' compensation insurance in accordance with California
workers' compensation laws. Such insurance shall be kept in full force and effect during the
term of this Agreement, including any extensions. Such insurance shall not be cancelable
without thirty(30) days advance written notice to City of any proposed cancellation. Certificates
of insurance evidencing the foregoing and designating the City, its elected officials, officers,
employees, agents, and volunteers as additional named insureds by original endorsement shall be
delivered to and approved by City prior to commencement of services. The procuring of such
insurance and the delivery of policies, certificates, and endorsements evidencing the same shall
not be construed as a limitation of Consultant's obligation to indemnify City, its elected officials,
officers, agents, employees, and volunteers.
2. Minimum Scope of insurance. The minimum amount of insurance required
under this Agreement shall be as follows:
1. Comprehensive general liability and personal injury with limits of at least
one million dollars ($1,000,000.00) combined single limit coverage per occurrence and two
million dollars ($2,000,000) general aggregate;
2. Automobile liability insurance with limits of at least one million dollars
($1,000,000.00) per occurrence;
3. Professional liability (errors and omissions) insurance with limits of at
least one million dollars ($1,000,000.00) per occurrence and two million dollars ($2,000,000)
annual aggregate is:
required
X is not required;
4. Workers' Compensation insurance in the statutory amount as required by
the State of California and Employer's Liability Insurance with limits of at least one million
dollars $1 million per occurrence. If Consultant has no employees, Consultant shall complete the
City's Request for Waiver of Workers' Compensation Insurance Requirement form.
3. Primary Insurance. For any claims related to this Agreement, Consultant's
insurance coverage shall be primary with respect to the City and its respective elected officials,
officers, employees, agents, and volunteers. Any insurance or self-insurance maintained by City
and its respective elected officials, officers, employees, agents, and volunteers shall be in excess
of Consultant's insurance and shall not contribute with it. For Workers' Compensation and
Employer's Liability Insurance only, the insurer shall waive all rights of subrogation and
19 Revised:515/16 22
720599.1
contribution it may have against City, its elected officials, officers, employees, agents, and
volunteers.
4. Errors and Omissions Coverage. If Errors & Omissions Insurance is required,
and if Consultant provides claims made professional liability insurance, Consultant shall also
agree in writing either (1) to purchase tail insurance in the amount required by this Agreement to
cover claims made within three years of the completion of Consultant's services under this
Agreement, or (2) to maintain professional liability insurance coverage with the same carrier in
the amount required by this Agreement for at least three years after completion of Consultant's
services under this Agreement. Consultant shall also be required to provide evidence to City of
the purchase of the required tail insurance or continuation of the professional liability policy.
5. Sufficiency of Insurers. Insurance required in this Agreement shall be provided
by authorized insurers in good standing with the State of California. Coverage shall be provided
by insurers admitted in the State of California with an A.M. Best's Key Rating of B++, Class
VII, or better, unless otherwise acceptable to the City.
6. Verification of Coverage. Consultant shall furnish City with both certificates of
insurance and endorsements, including additional insured endorsements, effecting all of the
coverages required by this Agreement. The certificates and endorsements are to be signed by a
person authorized by that insurer to bind coverage on its behalf. All proof of insurance is to be
received and approved by the City before work commences. City reserves the right to require
Consultant's insurers to provide complete, certified copies of all required insurance policies at
any time. Additional insured endorsements are not required for Errors and Omissions and
Workers' Compensation policies.
Verification of Insurance coverage may be provided by: (1) an approved General and/or
Auto Liability Endorsement Form for the City of Palm Springs or (2) an acceptable Certificate of
Liability Insurance Coverage with an approved Additional Insured Endorsement with the
following endorsements stated on the certificate:
1. "The City of Palm Springs, its officials, employees, and agents are named as an
additional insured... " ("as respects City of Palm Springs Contract No. or "for any and all
work performed with the City"may be included in this statement).
2. "This insurance is primary and non-contributory over any insurance or self-
insurance the City may have..." ("as respects City of Palm Springs Contract Na" or 'for any
and all work performed with the City" may be included in this statement).
3. "Should any of the above described policies be canceled before the expiration
date thereof, the issuing company will mail 30 days written notice to the Certificate Holder
named." Language such as, "endeavor to" mail and "but failure to mail such notice shall impose
no obligation or liability of any kind upon the company, its agents or representative" is not
acceptable and must be crossed out.
20 Revised:515/16 23
7205W 1
4. Both the Workers' Compensation and Employers' Liability policies shall contain
the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees,
agents, and volunteers.
In addition to the endorsements listed above, the City of Palm Springs shall be named the
certificate holder on the policies.
All certificates of insurance and endorsements are to be received and approved by the City
before work commences. All certificates of insurance must be authorized by a person with
authority to bind coverage, whether that is the authorized agent/broker or insurance underwriter.
Failure to obtain the required documents prior to the commencement of work shall not waive the
Consultant's obligation to provide them.
7. Deductibles and Self-Insured Retentions. Any deductibles or self-insured
retentions must be declared to and approved by the City prior to commencing any work or
services under this Agreement. At the option of the City, either (1) the insurer shall reduce or
eliminate such deductibles or self-insured retentions with respect to the City, its elected officials,
officers, employees, agents, and volunteers; or (2) Consultant shall procure a bond guaranteeing
payment of losses and related investigations, claim administration, and defense expenses.
Certificates of Insurance must include evidence of the amount of any deductible or self-insured
retention under the policy. Consultant guarantees payment of all deductibles and self-insured
retentions.
8. Severability of Interests (Separation of Insureds). This insurance applies
separately to each insured against whom claim is made or suit is brought except with respect to
the limits of the insurer's liability.
21 Revised:515/16 24
7205921
EXHIBIT "C"
CALIFORNIA INNOVATION HUB
MEMORANDUM OF UNDERSTANDING
SEE NEXT PAGE
22 Revised:5/5/16 25
720599.1
California Innovation Hub Memorandum of Understanding
THE CITY OF PALM SPRINGS, acting as THE PALM SPRINGS IHUB (sometimes referred to as the
"Designated iHub"), AND THE GOVERNOR'S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT("GO-
Biz")enter into this Memorandum of Understanding("MOU") dated M*)LN Capitalized
terms are either defined within the paragraph or in the definition section under Appendix A.
RECITALS
Whereas, as one of the world's largest economies, the State of California leads the nation in sparking
innovation;and
Whereas,on October 4, 2013 Governor Edmund G. "Jerry" Brown Jr. signed into law Assembly Bill No.
250("AB 250"),creating the California Innovation Hub (iHub) Program within the GO-Biz;
Whereas, GO-Biz may designate an iHub through a competitive application process;
Whereas,the purpose of each iHub will be to stimulate partnerships, economic development, and job
creation by leveraging assets to provide an innovation platform for startup businesses,economic
fdevelopment organizations, business groups,and financial institutions;
Whereas,AB 250 requires GO-Biz to oversee, coordinate, and provide assistance to each designated
iHub;
Whereas,AB 250 requires that any iHub designated by GO-Biz before January 1,2014, must enter into a
memorandum of understanding with GO-Biz that meets the requirements set forth in AB 250;
Whereas,the City of Palm Springs submitted an application through the competitive process requesting
designation as an iHub for the Western Coachella Valley located in the County of Riverside;
Whereas,GO-Biz evaluated the application and designated the City of Palm Springs in the County of
Riverside as an iHub on May 11, 2010;
Whereas,the City of Palm Springs has represented that its focus will be, but not limited to, renewable
energy and clean tech (collectively, "purpose");
i Whereas,the City of Palm Springs has entered into a Management Agreement with the Coachella Valley
Economic Partnership,and has obtained letters of support from the Small Business Development
Center, College of the Desert, University of California—Riverside, National Renewable Energy Lab (NREL),
Naval Weapons Center,Cal State University-San Bernardino, Wells Fargo, Palm Springs Chamber of
Commerce, Riverside County Workforce Development Center("partner network") in alignment with
Government Code Section 12099.4 to further its purpose.
1 26
THEREFORE,THE DESIGNATED IHUB AND GO-BIZ (COLLECTIVELY THE "PARTIES" OR INDIVIDUALLY THE
"PARTY") PARTIES AGREE AS FOLLOW:
A. Incorporation.All parties agree that the recitals are true and are hereby incorporated by
reference into this MOU.The term of this MOU shall be four years.
B. Requirements of the Designated [Hub.The Designated iHub agrees to do the following:
1. Coordinate and participate in five (5)keynote speaker series seminars annually with
national and regional partners focused on supporting start- up and emerging
technology entrepreneurs that provide advice on starting a business including
financing, marketing and planning. Such participation will be in the form of
attendance,financial or in-kind sponsorship, participation as a panelist or
moderator during the event;
2. Coordinate and support through direct and or in-kind funding an annual innovation
event in partnership with GO-Biz that demonstrates research and partnerships that
have evolved out of local universities or research laboratories through the
Innovation Hub;
j 3. Through partner network of the Coachella Valley Innovation Hub provide
workshops,seminars, and conferences that assistance 20 startup and emerging
technology companies annually;
4. Provide up to five(5) letters of support and commitments to partner network that
support further grant applications for programs focused on iHub activities annually;
S. Provide in person and or electronic introductions to local municipalities for start-up
and emerging technology companies to receive business assistance in the form of
streamlining permitting process,access to innovation hub partner networks,and
business assistance where appropriate;
6. Promote other iHub programs and events through social media and other
communication paths highlighting the collaborative nature of the iHub program;
7. Include the iHub logo on marketing materials and other communications to brand
events and activities of the iHub, as further described in section E below regarding
license;
8. Provide on an annual basis, no later than March 3V a common data set for the
purpose of reporting activity within the iHub that will include at a minimum,to the
extent applicable:
a. Report on the status of the requirements in items (1)-(6)of Section B,
above;
b. Investment Raised/Secured by Designated iHub and/or iHub partner(s);
c. Companies Funded within iHub partner network;
d. Graduates still in business("Graduates"for purposes of this section mean
graduates of an incubator or accelerator program with Designated iHub);
and
e. Patent applications applied for and granted within Designated iHub region.
2 27
The minimum common data set is subject to modification or change from time to
time only with the prior written approval of GO-Biz and the Designated iHub.
9. Under AB 250 an !Hub shall annually, no later than July 31`t report to GO-Biz
progress in meeting each of the goals set forth in Section B above and describe how
it has satisfied the performance standards as described in the Mub application.
C. Designated Nub.The Designated Mub certifies that:
1. It has received a copy of the state's nondiscrimination policy from GO-Biz, has read
the policy and agrees to comply with its terms;
2. The Designated !Hub and its principals are current in payment of all state and local
taxes owned unless they have entered into an agreement that was deemed
satisfactory by the respective taxing authority and are in full compliance with the
agreement.
D. Requirements of GO-Biz.GO-Biz agrees to do the following:
1. Enter into partnerships on behalf of the Nub network with various industry sectors,
non-profit organizations,and non-governmental organizations to negotiate and
implement exclusive arrangements for the benefit of the iHub network to obtain
access to products and services, including, but not limited to training,software and
educational opportunities for innovators and entrepreneurs;
2. Explore opportunities for partnerships with appropriate foreign governments,as
determined by GO-Biz,to cooperate in the exchange of innovation technologies and
co-develop innovation platforms;
3. Develop a model or program for appropriate foreign private entities to join a
California Nub as either a venture capitalist or member/participant of one or more
iHubs;
4. As appropriate, promote the iHubs during foreign trade missions, investment
forums and in meetings with foreign entities including governments.
5. Deploy a web based platform that will facilitate dialogue and referrals between the
!Hubs throughout the State of California;
6. Develop regulations to determine the process for distributing any funds received
and deposited in the Innovation Accelerator Account created under Government
code 12099.7;
7. Promote the iHub Program through social media and other communication paths
highlighting successful accomplishments amongst all designated !Hubs to the extent
the Designated Nub communicates with GO-Biz and provides information about its
accomplishments and activities;
S. License the !Hub logo to Designated [Hub as set forth below;
9. Provide letters of support to Designated!Hub for the purpose of seeking federal and
state funds to support activities of the Designated iHub; and
3
z $
10. GO-Biz will annually post, no later than September 301h, the information for each of
the reports submitted by each designated !Hub on GO-Biz's internet website and
will provide notice to the Governor and relevant policy committees of the
Legislature that the information is available on the internet.
E. License. On August 29,2014, GO-Biz submitted a section 1(a)trademark application to the
United States Patent and Trademark Office ("USPTO")to federally register the!Hub mark as
depicted in Appendix B(the "Mark") and assigned serial number 86381306 by the USPTO.
Although not yet federally registered,GO-Biz has common law rights to the Mark and any other
rights that it may acquire through federal registration of the Mark and hereby grants to the
Designated iHub a non-exclusive, royalty-free, non-sublicensable and non-assignable right to
the Mark to use it in connection with its iHub designation for but not limited to logo design,
web pages owned and operated by the Designated iHub and any of its partner organizations,
event branding and any other uses provided that prior use and written approval by GO-Biz is
obtained..When exercising this right,the Designated iHub must ensure any notice of
trademark,"TM" or other propriety right is not removed from any place where it is placed on
or embedded.Once the Mark is federally registered the 6 notation will be required to be
placed on all uses of the Mark by the Designated iHub. Designated iHub agrees that it will not
alter, crop, manipulate and create derivative works from the Mark,otherthan a proportional
sizing of the Mark to fit applicable materials. Designated iHub must immediately notify GO-Biz
if it becomes aware or suspects that any third party has gained access of the Mark and is
wrongfully using the Mark, in whole or in part, or is violating any of GO-Biz's intellectual
i property rights,including,but not limited to, trademarks and copyrights. Nothing in this MOU
is intended or shall be construed to transfer or assign any intellectual property rights of GO-Biz
to the Designated iHub, except as otherwise licensed in this MOU. Designated iHub
acknowledges and agrees that all right,title and interest in and to the Mark remains with GO-
Biz, and nothing contained in this MOU will be construed to convey any rights or propriety
interest in the Mark other than the specific rights specifically granted in this MOU. Designated
iHub acknowledges and agrees that the Mark possess a special, unique and extraordinary
character which makes it difficult to assess monetary damages which GO-Biz might sustain by
an unauthorized use.Designated iHub agrees that irreparable injury would be caused to GO-Biz
by such unauthorized use,and that injunctive relief would be appropriate in the event of
breach of this Agreement. GO-Biz makes no representations or warranties with regard to the
Mark, except as otherwise explicitly set forth in this MOU.
F. Public Records. Designated iHub acknowledges that GO-Biz is subject to the California Public
Records Act(PRA) (Government Cade section 6250 et. seq.).This MOU and materials submitted
by Designated iHub to GO-Biz may be subject to a PRA request. In such an event, GO-Biz will
notify the Designated iHub, as soon as practicable that a PRA request for the Designated!Hub's
information has been received,to allow Designated iHub, at its discretion,to seek an
injunction.GO-Biz will work in good faith with the Designated !Hub to protect the information
to the extent an exemption is provided by law, including but not limited to notes, drafts,
4
29
proprietary information,financial information and trade secret information. GO-Biz will also
apply the"balancing test"as provided for under Government Code section 6255 to the extent
applicable.
G. Assignment,This MOU is not assignable to another party unless written consent from the non-
assigning party is obtained.
H. Media Release. Designated iHub agrees to cooperate in good faith with GO-Biz, if requested in
connection with any publicity, outreach or press release related to the iHub designation.
Designated iHub may elect to issue a press release related to this MOU or any requirements
hereunder, but any release shall be approved by GO-Biz in writing prior to such release.Such
approval shall not be unreasonably withheld.
!, I. Indemnification/Warranty Disclaimer/Limitation of Liability. When created, Designated iHub
shall defend, indemnify and hold GO-Biz, its agents or assigns, harmless from and against all
claims, damages, and liabilities (including reasonable attorneys' fees) arising from this MOU in
the event Designated iHub acts or engages in willful or negligent misconduct. UNDER NO
CIRCUMSTANCES WILL THE STATE OF CALIFORNIA, GO-BIZ, ITS AGENTS OR EMPLOYEES,OR
ANYONE ELSE INVOLVED IN THIS MOU BE LIABLE TO DESIGNATED ]HUB FOR ANY DIRECT,
INDIRECT, INCIDENTAL,SPECIAL OR CONSEQUENTIAL DAMAGES THAT ARISE FROM THIS MOU.
J. Jurisdiction.The validity of this MOU and the interpretation and performance of all of its terms
shall be governed by the laws of the State of California.The Designated iHub hereby
irrevocably agrees to submit to the personal jurisdiction and venue of any state or federal court
located in the City of Sacramento,State of California, and expressly waives any claim or
defense that such forum is not convenient or proper for purposes of any action arising under
this Agreement.
K. Waiver. Neither parry shall be deemed by mere lapse of time (without giving notice or taking
other action) to have waived any action by the party of any of the provisions of this MOU.
5 30
L. Notice.Any notices required or permitted to be given under this MOU shall be given in writing
and shall be delivered (a) in person, (b) by certified mail, (c) by facsimile with confirmed receipt
required,electronic communication with confirmed receipt required,or(d)by commercial
overnight courier that guarantees next day delivery and provides a receipt, and such notices
shall be addressed to:
If to GO-Biz: 1325 J Street, 18th Floor
Sacramento,California, USA 95814
Attention: Deputy Director, Innovation&
Entrepreneurship
Phone: (916)322-0694
Facsimile: (916)322-0693
Email: lou is.stewa rt(&goy.ca.¢oy
If to Designated iHub:
3200 E Tahquitz Canyon Way
Palm Springs, CA 92262
Attention: David H Ready,City Manager, City of
Palm Springs
Coachella Valley iHub
Phone:760-323-8362
Facsimile: 760-322-8325
Email: David.Ready@palmspringsca.gov
If to Desginated iHub Managemant CVEP
3111 E.Tahquitz Canyon Way
Palm Springs,CA 92262
Attn:Joe Wallace, iHub Manager
Phone: 760-340-1575
Joe@CVEP.com
M. Modification.This MOU may be amended or modified only by mutual agreement of the parties
in written addendum.
N. Ambiguities. Each party has had the opportunity to seek the advice of counsel or has refused to
seek the advice of counsel.Each party and its counsel, if appropriate, have participated fully in
the review and revision of this MOU. Any rule of construction to the effect that ambiguities are
to be resolved against the drafting party shall not apply in interpreting this MOU.The language
in this MOU shall be interpreted as to its fair meaning and not strictly for or against any party.
O. Necessary Acts, Further Assurances.The parties shall at their own cost and expense execute
and deliver any further documents and shall take such other actions as may be reasonably
required or appropriate to carry out the intent and purposes of this MOU.
6
31
I
i
P. Sections and Other Headings.The section and other headings contained in this MOU are for
reference purposes only and shall not affect the meaning or interpretation of this MOU.
Q. Representation on Authority of Parties/Signatories. Each person signing this MOU represents
and warrants that he or she is duty authorized and has legal capacity to execute and deliver this
MOU. Each party represents and warrants to the other that the execution and delivery of the
MOU and the performance of such party's obligations hereunder have been duly authorized
and that the MOU is a valid and legal agreement binding on such party and enforceable in
accordance with its terms.
R. Severability. If any term of this MOU is to any extent invalid, illegal,or incapable of being
enforced,such term shall be excluded to the extent of such invalidity, illegality,or
unenforceability;all other terms hereof shall remain in full force and effect.
S. Execution.This MOU may be executed in parts, by fax,or other similar electronic means.
i
i
i
Governor's Office f Business and Economic Development
By. � By.
Name: Kish i n Name: Louis Stew3
Its: Director Its: Deputy Director, Innovation& Entrepreneurship
City of Palm Spring
By:
Name: David H. Ready, Esq., Ph.D.
Its: City Manager AP //��
APPROVED BY C'T�Cnl7NCIL ..d J� ���`�`- �/-
4WATiORNLY
VAU 1.
ATTEST:
city clerk 32
Appendix A
Definitions
Clean tech:This is a field of technology that is economically competitive and productive technology that
uses less material and/or energy, generates less waste and causes less environmental damage than the
alternatives.
Renewable Energy:This is a field of technology derived from resources that are naturally regenerative
or are practically inexhaustible,such as biomas, heat (geothermal,solar, thermal gradient), moving
water(hydro,tidal,and wave power),and wind energy. Municipal sold waste may also be considered a
source of renewable (thermal)energy.
Emerging Technology: Is afield of technology that broaches new territory in some significant way. New
technological fields may result from the technological convergence of different systems evolving
towards similar goals. Convergence brings previously separate technologies together so that they share
resources and interact with each other,creating new efficiencies.
Graduate: For the purpose of this document, the term "graduation" is used to refer to tenants in
incubators and accelerators spaces that leave the physical premise with the promise of further growth
and success.
"Innovative solution" refers to a product, process, service, or information technology that is new or
improves an existing product, process, service, or information technology and is not currently deployed
in the U.S. marketplace.An Innovative solution is expected to deliver measurable benefits compared to
current practice in the areas of environmental benefits, performance, overall process reliability and
control,or economic or social benefits. Moreover,an innovative solution shall consist of a specific and
identifiable research component.
Startup: Is generally a newly created company less than three(3)years old that are in the initial phase of
development.
8
33
Appendix B
Innovation Hub Program Trademark
i
9 34
TM-Edition
INTERNATIONAL CATALOGUE OF TF
TM-Edition Ltd.
Szechenyi ter 17.
2000 Szentendre Governor's Offii
HU Development
Tax ID: HU14'300561 1325 J Street,
Bank: Erste Bank Hungary Zrt. CALIFORNIA 9
SWIFT: GIBA HUHB
USA
[BAN: HU66 1160 0006 0000 0000 6490 6485 i
i
Date: 18. Feb. 2015
TRADEMARK
OWNER
Governor's. Office
Economic pevelo[
1325 J Street, 18t
I CALIFORNIA 958
USA
ub CLASSES F GO
CALIFORNIA AND SERVICES:
INNOVATION HUB 3541
35
Proposed Fy 2016-Z017 Budget
C Els Division;IHub/Accelerator Campus
Revenue Source July Aug Sept Ott A. Oat Jan Feb Mar Apr May June Total
Pubut Support $ -
Self(Generated $ 4,500 S 4,Sm $ 4,Sm $ 4,51M $ 4,Sm $ 4,50) $ 4,500 $ 4,5m $ 4,5m $ 4,5m 5 4,5m $ 4,5m $ 54,000
Wells Fargo $ - S - $ - $ - $ - $ - $ - $ - $ - $ Im,000 $ - $ Im,m0
City of Palm Springs $ 49,125 $ 49,125 $ 49,125 $ IS,125 $ 1961Sm
Total Support $ 53,625 $ 4,500 $ 4,500 $ 53,625 $ 4.500 $ 4,S00 $ 53,625 $ 4,500 $ 4,Sm $ 53,625 $ iW,500 $ 4,500 $ 350,500
Expenditures
Adv-&Mktg.
Outreach/Marketing $ Sm $ 5m $ 5m $ 500 $ SIX $ Sm $ 500 $ 5m $ Sm S 5m $ Sm $ SIX 5 6,0m
Conferences/Events $ 2m $ 2m $ 2m $ 2m $ 2,5m $ 200 $ 200 $ 200 $ 2m $ 200 $ 2,Sm $ 2m $ 7,m0
Total Adv.&Mktg. $ 700 $ 700 $ 700 $ 700 $ 3,000 $ 700 $ 700 $ 700 $ 700 $ 7m $ 3,000 $ 700 $ 13,000
Staffing Resources
Salaries&Wages S 9,737 $ 9,737 $ 9,737 $ 9,737 $ 9,737 $ 9,737 $ 9,737 $ 9,737 $ 9,737 $ 9,737 $ 9,737 $ 9,757 $ 116,838
Banff, $ 1,079 $ 1,079 $ 1,079 $ 1,079 $ 1,079 $ 1,079 $ 1,079 $ 1,079 $ 1,079 $ 1,079 $ 1,079 $ 1,079 5 12,948
Bonus Pool $ - $ - $ I8,000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 18,m0
Total Staffing $ 10,116 $ 10,816 $ 28,816 $ 10,816 $ 10,816 $ 10,316 $ 10,916 $ 10,816 $ 10,816 $ 10,816 $ 20,816 $ 10,816 $ 147,785
professional&legal
professional Fees $ 4,500 $ 4,5m $ 4,500 $ 4,5m $ 4,5m $ 4,5m $ 4,500 $ 4,500 $ 4,500 $ 4,Sm S 4,Sm $ 4,500 $ S4,m0
Legal Fees $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 5 - $ - $ -
Total Prof.&Legal $ 4,500 $ 4,500 $ 4.500 $ 4,5m $ 4,500 $ 4,Sm $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 54,000
AdminlstraWe
Refunds&Credits $ - $ - $ - $ - 5 - $ - $ - $ -Bank Changes $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Computers,Copiers&IT $ - $ - $ - $ - 5 - $ - $ - $ - 5 - $ - 5 - $ - $ -
Education&Training $ - $ - $ - $ - 5 - 5 - 5 - $ - $ - $ - $ - $ - $ -
Evem,i $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Insurance $ - $ - $ - $ - 5 - 5 - 5 - $ 5 - $ - $ - $ - $
Mileage Reimburse $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 6m
Meals lodging,etc. $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ SO $ 50 $ 50 $ 50 $ 50 $ 6m
Meetings $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 S 125 $ 1,Sm
Mi..15Mnsas $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Office Expense $ I,Im $ I,Im $ JAM $ I,Sm $ LAW 5 I,lm $ 1,1m S 11100 $ l,lm $ l,lm $ l,lm $ l,lm $ 13,2m
Printing Expense $ 25 $ 25 $ 25 $ 2$ $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 3m
Travel Expense $ 3m $ 3m $ 30 $ 31V $ 3m $ 3m $ 300 $ 3m $ 3m $ 3m $ 3m $ 3m $ 3,61M
Website Expenses $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $
Janitorial Expense $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - S - S -
Rent $ 2,502 $ 2,502 $ 2,502 $ 2,502 $ 2,502 5 2,502 $ 2,502 $ 2,502 $ 2,502 $ 2,502 $ 2,502 $ 2,502 $ 30,024
Repairs and Maintenance $ 1,200 $ 1,2m S 1,2m $ 1,2m $ 1,2m $ 1,2m $ 1,2m $ 1,20 $ 1,2m $ 1,2m $ 1,2m $ 1,21M $ 14,4m
Security System 5 lm $ lm $ lm $ Im $ lm $ lm $ 100 $ lm $ Im $ IN $ Im $ Im $ 1,2m
Utilites $ 7,Om $ B4Om $ 7,0m $ S,O ) $ 3,0m $ 2,0m $ 2,m0 $ 2,m0 $ 3,O 0 $ 4,0 0 $ S,m0 $ 6,000 $ 54,Om
Phone&Internet $ 750 $, 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 5 750 $ 750 S 9,Om
Total Admin Expense $ 13,202 $ 14,202 $ 13,202 $ 11,202 $ 9,202 $ 8,202 $ 9,202 $ 8,202 $ 9,202 $ 10,202 $ 11,202 $ 12,202 $ 128,424
Total Expenditures $ 29,218 $ 30,218 $ 47,218 $ 27,218 $ 27,518 $ 24,218 $ 24,218 S 24,218 $ 25,218 $ 26,218 $ 29,518 $ 28,218 $ 343,210
Revenues-Expenditures $ 24,407 $ (25,718) $ (42,718) $ 26,407 $ (23,018) $ (19,718) $ 29,407 $ (19,719) $ (20,718) $ 27,407 $ 74,982 $ (23,718) $ 7,290
Cumulative rush Flow $ 24,407 $ (1,310) $ (U,028) $ (17,620) $ (40,638) $ (m,355) $ (30,948) $ (50,665) $ (71,383) $ (43,975) $ 31,m7 $ 7,290
Proposed FT 2017-2019 Budge
CVEP Minion:INub/Acceleratar Campus
Revenue Source July Aug Sept On Nov Dec Jan Feb Mar Apr May June Taal
Public Support $ -
SelfGenerated $ 5,500 $ 5,500 $ 5,500 $ SSDO $ 5,500 $ 5,500 $ 5,500 $ 5,500 $ 5,500 $ 5,500 $ 5,500 $ 5,500 $ 66,000
Wells Fargo $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 300,000 $ - $ 1001000
City of Palm Springs $ 49,125 $ 49,125 $ 49,125 $ 49,125 $ 196,500
Total Support $ 54,625 $ 5,500 $ 5,500 $ 56,625 $ 5,500 $ 5,500 $ 54,625 $ 5,500 $ 5,500 $ 54,625 $ 305,500 $ 5,500 $ 364500
Em,penditme
Adv.&Mktg-
Outreach/Marketing $ SOO $ SIM $ 500 $ 500 $ S00 $ 500 $ SOO 5 500 $ S00 $ 500 $ 500 $ SOO $ 6,000
Conferences/E,ents $ 200 $ 200 $ 200 $ 200 $ 2,500 $ 200 $ 200 5 200 $ 200 $ 200 $ 2,500 $ 2O0 $ 7,000
Taal Ad,&Mktg. $ 700 $ 700 $ 700 $ 700 $ 3,000 $ 700 $ 700 $ 700 $ 70D $ 700 $ 3,000 $ 70B $ 13,800
Staffing Resources
salaries&Wages $ 10,500 $ 30,500 $ 10,500 $ 10,500 $ 10,500 $ 10,500 $ 10,500 $ 10,500 $ 10,500 5 10,500 $ 10,5W $ 10,500 $ 126,000
Benefits $ 1,1W $ 1,163 $ 1,163 $ 1,163 $ 1,163 $ 1,163 $ 1,163 5 1,262 $ 1,163 $ 1,163 $ 1,163 $ 1,163 $ 13,956
Bonus Pool $ - $ - $ 12,600 $ - $ - $ - $ . $ - $ - $ - $ - $ - $ 12,600
Total Staffing $ 11,663 $ 11,663 $ 24,263 $ 11,663 $ 11,663 $ 11,663 $ 11,663 $ 11,663 $ 21,863 $ 11,863 $ 11,863 $ 11,863 $ 152,5%
Professional&Legal
Professional Fees $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5," $ 5,000 5 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 60,000
Legal Fees $ - S - $ - $ - $ - $ - $ - S S - S - $ - $ - $ -
Total Prof.&Legal $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ S,000 $ 60,000
Adan nlstratMe
Refunds&Credits $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $Bank Charges $ - $ - $ - $ - $ - $ - $ - $ - 5 - 5 - $ - $ - S -
Camputers,Copiers&IT $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - S -
Education&Training $ - $ - $ - $ - $ - 5 - 5 $ - $ - $ - $ - $ - $ -
Ev Ms -
Insurance $ - -
Mileage Reimburse $ 50 $ 50 $ 50 5 50 $ 50 $ 50 $ 50 S 50 $ 50 $ 50 $ 50 $ 50 $ 600
Meals lodging,etc. $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ SO S 50 $ 50 $ 50 $ 50 $ 50 $ 600
Meetings $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 $ 125 5 125 $ 125 $ 125 $ 125 $ 125 $ 1,500
Mix.Expenses $ - $ - $ - $ - $ - $ - $ . $ - $ - $ - $ - $ - $
Off.Expense $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,300 $ 1,100 $ 1,300 $ 1,300 $ 1,300 $ 1,30(I $ 1,100 $ 1,100 $ 13,200
Printing Expense $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 25 $ 300
Travel Expense $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 3,600
Website Expenses $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
JanitorialExpense $ - $ - $ - $ - $ - $ - $ - $ - 5 - 5 - $ - $ - S -
Rent $ 2,502 $ 2,502 $ 2,502 $ 2,502 $ 2,502 $ 2,502 $ 2,502 5 2,502 $ 2502 $ 2,502 $ 2,502 $ 2,502 $ 30,024
Repairs and Maintenance $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,2M $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 14,400
Security System $ 100 $ 100 $ 100 $ 100 $ 100 $ 100 $ Jim $ 100 $ 100 $ 100 $ to $ JIM $ 1,200
Utilites $ 7,000 $ 8,000 $ 7,000 $ 5,000 $ 3,000 $ 2,000 5 2,000 $ 2,ml $ 3," $ 4,000 $ 5,000 $ 6.10 $ 54,000
Phone&Internet $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 9,000
Taal Admin Expense $ 13,202 $ 14,202 $ 13,202 $ 11,202 $ 9,202 $ 6202 $ 8,202 $ 9,202 S 9,202 $ 10,202 $ 11,202 $ 12,202 $ 129AN
Taal Expenditures $ 30,565 $ 31,565 $ 43,165 $ 28,50 $ 28,865 $ 25,565 $ 25,565 $ 25,565 $ 26,565 $ 27,565 $ 30,865 $ 29,565 $ 353,900
Revenues-Expenditures $ 24,060 S (26,0651 5 (37,665) $ 26,060 $ (23,365) $ (20,065) $ 29,060 $ (20,065) $ (21.065) $ 27,060 $ 74,635 $ (24,0651 $ 9,520
Cumulative Cash Flmv $ 24,060 $ (2,OD5) $ (39,670) $ (13,610) $ (36,975) $ (57,040) $ 127,980) $ (46045) $ (69,110) $ (42,050) $ 32,585 $ 8,520
PALM SPRINGS
IHUB AND ACCELERATOR CAMPUS
QUARTERLY REPORT
January 1 — March 31, 2016
Submitted by: Joe Wallace
Palm Springs iHub Managing Director
April 13, 2016
39
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 iHub 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 iHub'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 first quarter of 2016. The quarter saw the client base in the Mub exceed capacity
with 7 in-house, 6 in the Accelerator Campus, and 14 virtual clients for a total of 27 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 Q12016 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. 39
!Hub Advisory Board
The Advisory Board that blends public and private stake holders reviews and considers applications submitted to the PSiHub. The initiating
Advisory Board served a term of one year and was comprised of nine members all of which provided input to the PSiHub management
regarding the first quarter's applicants. In discussions with the City of Palm Springs it has been decided that this group of advisors should have
more governing authority and that Palm Springs should be represented more.Therefore,the new advisory board will be comprised of 5
members with two already identified and 3 to be determined.
• Mayor Robert Moon, Palm Springs
• City Councilman J. R. Roberts
• TBD
• TBD
• TBD
Community Relations/Accolades
The iHub participated in the following events this quarter:
• Renewable Energy Roundtable(3)
• Monthly California Innovation Hub Conference Calls(3)
• SBDC Fireside Chats(3)
Palm Springs iHub Clients on March 31,2016
The Nub started Q1-2016 with twenty five incubator clients. During the fourth quarter a total of 4 applications or visits of interest to
the Nub were reviewed and 2 were recommended by Nub staff for acceptance and subsequently were notified of their acceptance.
One is in the health and medical space and the other is in the wearables category.
Partnership Activity
The partnerships resulted in tangible activity during this quarter:
• Coachella Valley Small Business Development Center:Co Mentoring businesses
• Established next Univ.of Redlands evaluation for!Hub company Pocial&Sun Heating Technology
• Palm Springs iHub Managing Director continues to serve as interim CEO of CVEP. CVEP completed financial turnaround in
Palm Springs operation and is now attracting sufficient funds to operate.
• Secured 2 year support agreement with Wells Fargo Bank.
• Reprogrammed$20,000 of the Desert Healthcare District operations funds into capital equipment for the purchase and
installation of a cleanroom.
• CVEP and the CSU Fullerton Lead Center(SBDC)mutually agreed to sever the relationship that enabled CVEP to be the host
of the SBXs SBDC program as of March 18,2016. CVEP is pleased with this result and will now model our business support
efforts after the Palm Springs iHub so as to work with companies that have a higher impact potential than is possible as
host of the local SBDC. The CSU Fullerton Lead Center is soliciting bids for another host. It must be pointed out that CVEP
was the 3rd entity to host the SBDC in the last decade.
40
Metrics
The PSiHub updates their metrics and reports on them quarterly. The metrics include:
Metric Result
Number of resident companies 7
Number of Virtual Companies 14
Accelerator Campus Clients 6
I
Number of graduating companies 0(8 total to date)
Number of jobs created by PSiHub companies to date 122(4 this quarter)
Revenue/sales from PSiHub companies(estimated for quarter) Greater than$1 Million I
Investment Dollars Raised by PSiHub Clients $250,000 equity, $12,000
loans
Number of sponsors,corporate partners, members or contracts for the Over 200 identified
iHub
Number of patent applications and issued patents(total) 1 application
Number of licenses or agreements by PSiHub companies 1 in discussion
Funding sources and amounts leveraged/invested WFB naming rights on
4/8/2016
Number of companies receiving outreach services 7(excluding iHub clients)
Number of entities providing outreach services 4
Client Highlights from Q1-2016
• Companies domiciled at the Palm Springs Accelerator Campus are all running ahead of their sales for 2015 by percentages ranging from a
low of 35%to a high of over 100%.
• Pocial moved forward with significant contracts with Top Rank Boxing and Virginia Tech University.
• SecoSys that is scheduled to move into the Accelerator Campus in July of 2016 when the space is ready for them has installed a
demonstration unit at the Mission Springs Water District. That unit has been approved and had resulted in an order for an additional 50
units for installation during the first half of 2016. An order for 55 units has been placed. For reference there are 12,000 water meters in
that district which will mean revenue of$12 Million to Secosys at full adoption.This is a water saving device that gives the power of
saving to the customer. The market for these meters just in California amounts to over a Billion dollars and SecoSys has a patent pending
on the invention.
• Sun Heating Technology joined the!Hub and announced the intention to establish a robotic manufacturing facility in Palm Springs within
2 years that will need 15 employees and 5,000 square feet.
• Heppolt Wind Energy received its full technical analysis report from the Los Alamos National Lab. The analysis was quite favorable for his
patented Vertical Axis Wind device. 41
Previously Stated Goals for Q1-2016
• Complete HVAC improvements in Health and Medical Innovation Center
• Secure a Clean Room installation for incoming company GattaCo
• Begin improvements to the center office area and the break room.This will add 2 more ADA compliant restrooms to the
Accelerator Campus.
All three goals were fully achieved and verified during the first quarter.
Goals for Q2-2016
• Commence and substantially complete the final construction phase of the Accelerator Campus with Measure J funds.
• Officially open the Health and Medical Innovation Center
• Hold Naming Ceremony for the Wells Fargo Innovation Center
• Attract at least 3 more iHub applicants.
Measure J Progress Report
• Palm Springs City Manager and Director of Economic Development approved a quote to complete the capital improvements
at the Accelerator Campus. Permits are now being sought and construction is expected to commence during April for
completion by the end of June. It is anticipated that about$30,000 will be available for unwelcome surprises like roof
problems that have already been identified. If there are still funds available after completion of this project,they will be
invested into energy savings devices like LED bulbs which last for 20,000 hours and save roughly 83%on lighting costs.
These bulbs will be installed on an as most used basis.
Appendices:
• !Hub Companies circa March 31, 2016
42
3111 E.Tahquitz Canyon Way
Palm Springs,CA 92262
p:(760)340-1575
f: (760)548-0370
w: Cvillub.com
Palm Springs Nub Companies Q1 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.
• 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.
• SECOSYS:Their platform seamlessly integrates into existing water meters to manage,control &conserve water
in real-time for water districts,property managers and consumers.
• Solaris Power Cells:Producer of super capacitor, solid-state cells that have the potential to store energy with
rapid charging rates.
• Sun Heating Tech: China-based manufacturer of solar/solar thermal components looking to establish a U.S.-
based manufacturing hub.
• Sun Up Solar Systems: A commercial solar thermal company providing design, manufacturing & installation
services for commercial and industrial applications across Southern California.
• SwissHytech: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.
• Vestaxv German-based start-up 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
• 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.
• Incontinence Technologies:The Fanny Wrapper is an adult diaper system with an integrated sensor unit used
to aid caretakers of incontinent adults. 43
3111 E.Tahquitz Canyon Way
Palm Springs, CA 92262
p: (760)340-1575
f: (760)548-0370
w: UiHub.com
• 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.
• 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.
• 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 (Social Media, Lifestyle,Security)
• Heightened Security.HS is a local manufacturer of security solutions for residential and commercial clients.
Their product can seamlessly integrate into existing security systems.
• 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.
• 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.
• PS Talent:Developer of virtual entertainment products on the Sony Playstation platform.
• Seismic Warning Systems:Developing a regionally-based earthquake warning system with proprietary
detection and customized-alert technology.
• SpartaApp:Propriety mobile application platform for connecting artists with art collectors worldwide.
• Wise Education:Delivers online English as a second language education worldwide using a unique video
conferencing platform.
Wearable Technology
• 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.
44
ROI Review
Palm Springs iHub and Business Development
Presented to
Palm Springs City Council
By: Joe J . Wallace
CVEP
Financial Update
FY 2015-16 was about implementing business fundamentals and
management discipline while preserving CVEP's mission.
Building a Solid Balance Sheet
• Total assets increased 3.3% 0 Total liabilities decreased 64.5%
• Long-term debt eliminated 0 2 Month Cash Reserves
Predictable and Manageable Operating Performance
• Budget managed in real time
• Revenue > expenses by $235,000 (11% over budget)
The time is right to advance our core mission with confidence.
ROI : Mub Through Year 4
DESCRIPTION GOAL ACTUAL
New Companies 30 32
Graduates 7 9
Equity Investments $5 million $10 million
Employees 290 116
Debt Capital $3 million $1 million (variable)
Grants $5 million $3.4 million
Technology 20 16 patents
Goals are from 11118109 iHub milestones
Actual results from report to State of California GoBiz 1113012015
H u b ACTUAL
PALM SPRINGS GOAL
Number of Employees ;• Number of Companies
EMPLOYEES 250 COMPANIES 40
200 •
� 30
• a
1S0
• 20
so ♦ • • c 10 ••` ••
1 2 3 4 YEAR « 1 2 3 4 YEAR
Companies Graduated Equity Investments
GRADUATES 10 I DOLLARS S10M
R SSM
6 • 86M
4 • 44M .
2 •• • 82M .
1 2 3 4 YW 1 2 3 4 YEAR
a
00
CVEP
ROI: Business Services Center
Services Delivered in the Coachella Valley
Jan. 1-Dec. 31, 2015 Since 2012
Businesses Created 13 35
Jobs Created (full/part time) 67 364
Jobs Retained 0 223
Total Capital (Loans and Equity) $8,133,034 $25,232,192
Total Clients Counseled 166 544
Total Counselor Hours 1,697 5,967
Training Events 30 124
Training Attendees 735 3,058
Under SBDC, service area included Morongo Basin and San Bernardino County
iA
..7
ROI : Mub + Business Development
Through Year 4
DESCRIPTION GOAL ACTUAL
New Companies 30 65
Graduates 7 9
Equity & Debt Investments $8 million $35.2 million
Employees 290 480
Grants $5 million $4.2 million
Technology 20 16 patents
Qn
0
CEO REPORT
Objectives for FY 2016-17
• Establish Workforce Excellence as an independent 501(c)3 entity
• Develop business attraction strategy
• Attract new investors
• Develop new five-year plan for Palm Springs iHub
• Bring valued long-term partners back to the table
• Be attentive, transparent, and interactive
Q&A
>>> SAVE THE DATE <<<
GREATER PALM SPRINGS
ECONOMIC SUMMIT
FEATURING
DR. MANFRED KEIL
Claremont McKenna College
November 1, 2016
PALM SPRINGS CONVENTION CENTER
Sponsorship Information: 760-340-1575, steven@cvep.com
Qn
N