CITY COUNCIL STAFF REPORT
DATE: MAY 27, 2026 CONSENT CALENDAR
SUBJECT: APPROVAL OF AMENDMENT NO. 1 (24P168) WITH CVL ECONOMICS FOR ECONOMIC DEVELOPMENT CONSULTING SERVICES –
IMPLEMENTATION ACTIVATION, CODE AND REGULATORY REVIEW
FROM: Scott C. Stiles, City Manager
BY: Economic Development
SUMMARY:
Since adoption of the Palm Springs Economic Development Strategic Framework (EDSF) on November 24, 2025, staff has worked with the City Council Economic Development Subcommittee and CVL Economics to refine an implementation approach, including identification and prioritization of activation priorities necessary to translate the framework into execution.
This report seeks approval of a $170,250 contract amendment with CVL Economics to undertake this work as the first phase of implementation of the selected activation priority of a Code Audit and Regulatory Review process.
RECOMMENDATION:
1) Approval of Amendment No. 1 (24P168) with CVL Economics for Economic Development Consulting Services - Implementation Activation, Code and Regulatory Review.
2) Authorize the City Manager and City Attorney to make non-substantive changes to the document and execute the contract.
BUSINESS PRINCIPAL DISCLOSURE:
A business disclosure is on file.
BACKGROUND:
The EDSF established a comprehensive set of principles, initiatives, and over ninety action items intended to guide economic development over the next decade.
City Council Staff Report
May 27, 2026 -- Page 2
Amendment No. 1 (24P168) with CVL Economics
Recognizing the scale of the work program, the implementation strategy introduced a set of activation priorities designed to accelerate execution and establish foundational systems necessary to support long-term outcomes.
These activation priorities include:
1. Convention Center (underway)
2. Code Audit and Regulatory Review
3. Business Process Audit
4. Economic Technology Hub
5. Fiscal Toolkit
6. Business District Development
Since adoption of the EDSF, staff has:
Conducted the first Economic Development subcommittee meeting on March 24, 2026;
Evaluated multiple proposals from CVL Economics and selecting the attached; Worked to align priorities with Council direction and departmental capacity; Initiated early actions consistent with the EDSF principles.
This iterative process has resulted in a more defined and actionable implementation approach.
STAFF ANALYSIS:
While the activation priorities are not strictly sequential, staff recommends initiating implementation with Municipal Code Audit and Regulatory Review based on its role as a foundational enabler.
Regulatory structure directly influences:
Development feasibility
Business formation timelines
Investment predictability
Effectiveness of incentive programs
As a result, this work is expected to produce outputs that inform and accelerate subsequent priorities, including:
3. Business Process Audit
4. Economic Technology Hub
5. Fiscal Toolkit
6. Business District Development
City Council Staff Report
May 27, 2026 -- Page 3
Amendment No. 1 (24P168) with CVL Economics
In this sense, the Code and Regulatory Review will function as a system-level intervention, rather than a standalone initiative.
Scope of Work
The work will be conducted across four phases over a twelve-month period:
Phase 1 – Diagnostic Scan (May–Aug 2026): Targeted review of selected Municipal Code provisions, assessment of how regulatory requirements shape the experience of businesses and developers in practice, and stakeholder outreach to surface where processes are working and where they are creating friction.
Phase 2 – Barriers Analysis (Aug–Nov 2026): Identification and prioritization of regulatory and procedural barriers by category, economic impact, and feasibility of resolution; alignment of barriers against the adopted EDSF to ensure recommendations are grounded in Council’s policy direction. Phase 3 – Recommendations (Nov 2026–Feb 2027): Development of targeted code reforms and process improvements, organized into a clear action typology distinguishing near-term administrative actions, code amendments requiring formal approval, longer-term policy considerations, and process issues for a separate business process audit.
Phase 4 – Synthesis (Feb–Apr 2027): Cross-departmental review to confirm legal feasibility and operational practicality of recommendations, followed by refinement and final documentation for both technical staff and City leadership.
Three deliverables will be produced upon completion of the engagement:
Regulatory Findings Report: A comprehensive document synthesizing identified barriers, economic impact analysis, and recommendations organized by action type and implementation sequence.
Barrier-to-Solution Matrix: A structured reference document mapping each regulatory barrier to a corresponding recommendation, responsible department, and implementation pathway — serving as an ongoing tracking tool for City staff.
Executive Summary for City Leadership: A concise, decision-ready summary of key findings, priority recommendations, and proposed next steps prepared for City leadership and Council.
The outcome will be a prioritized, actionable set of regulatory improvements designed to improve the City’s business environment and investment readiness.
City Council Staff Report
May 27, 2026 -- Page 4
Amendment No. 1 (24P168) with CVL Economics
Implementation Framework
Implementation of the EDSF is structured to occur as a coordinated, parallel effort, rather than a strictly linear process.
Key principles guiding implementation include:
1. Distributed Execution
Action items identified in the EDSF will be advanced through:
Staff-led initiatives
Working groups
Subcommittee direction
Ad hoc advisory efforts
2. Parallel Progression
While activation priorities provide structure, action items will continue to advance concurrently, rather than waiting for completion of any single priority.
3. Iterative Development
Outputs from each activation priority will inform and refine others, allowing the City to adapt in real time as implementation progresses.
This approach ensures that progress continues across multiple fronts while maintaining focus on high-impact foundational work.
Role of CVL Economics
CVL Economics, as the author of the EDSF, is uniquely positioned to:
Maintain continuity between strategy and execution
Provide subject matter expertise in economic development policy Facilitate cross-departmental coordination
Deliver implementation-ready work products
The proposed amendment shifts their role from planning to execution support, with a focus on delivering tangible regulatory outcomes.
ENVIRONMENTAL ASSESSMENT:
This action is not a project under CEQA pursuant to Section 15378(b), as it constitutes organizational and administrative activities that do not result in direct or indirect physical changes to the environment.
City Council Staff Report
May 27, 2026 -- Page 5
Amendment No. 1 (24P168) with CVL Economics
ALIGNMENT WITH STRATEGIC PLANNING:
This action supports City Council’s Strategic Plan Broad Goal of Economic Development, and directly advances the Economic Development Strategic Framework, particularly:
Principle A: Expand Economic Development Capacity
Principle B: Reinvigorate the Business Climate
FISCAL IMPACT:
Approval of this item authorizes $170,250 for EDSF implementation consulting services over a twelve-month period (May 2026–April 2027). Fees by phase are as follows: Phase 1 – Diagnostic Scan ($47,500); Phase 2 – Barriers Analysis ($52,500); Phase 3 – Recommendations ($26,500); Phase 4 – Synthesis ($43,750). Payments will be made in four installments: $44,000 upon contract execution; $44,000 on September 1, 2026; $44,000 on January 1, 2027; and $38,250 upon project completion.
The original contract for economic development planning services of $123,250 will be increased by $170,250 for a new total amount of $293,500 for the economic development planning portion of the report.
The contract includes three years of Airport Economic Impact Studies and that portion of the contract remains unchanged (which total $251,830). In summary, the total contract amount will be revised up to $545,330 for both economic development planning services as well as Airport EIS services, managed by the Airport staff.
Funding is available within the FY 2026 Economic Development budget and is consistent with previously discussed programmatic allocations.
This investment is intended to:
Accelerate implementation of Council-adopted strategy
Improve efficiency of future City processes
Support long-term economic growth and revenue generation REVIEWED BY:
Department Director: Wayne Olson
City Manager: Scott Stiles
ATTACHMENTS:
A. Amendment No. 1 to 24P168 and Code Audit Review Proposal Exhibit B. Original Economic Development Consulting Agreement (24P168)