Title
Phoenix Convention Center Exclusive Event Utility Services - Requirements Contract - RCS 19-002 (Ordinance S-45853)
Description
Request to authorize the City Manager, or his designee, to enter into a five-year contract with Commonwealth Electric Company of the Midwest for exclusive event utility services at the Phoenix Convention Center Department (PCCD). This is a revenue generating contract anticipated to result in approximately $5 million in revenue over the life of the contract, and a capital investment of $24,100. Further request authorization for the Treasurer to accept, and the City Controller to disburse, all funds related to this item.
Report
Summary
On Feb. 20, 2019, Phoenix City Council authorized the issuance of a Revenue Contract Solicitation (RCS) for Exclusive Event Utility Services at PCCD. PCCD event utility services are a critical component of the department's overall operations. An important goal of the PCCD is to maintain its distinctive brand by offering premium level services. The event utility services include: electric, non-potable water, compressed air and natural gas. The successful respondent will provide PCCD with commissions from revenue-generating activity conducted at PCCD for the rights of exclusivity for providing utility services.
Procurement Information
On Feb. 21, 2019, the PCCD issued RCS 19-002 for exclusive event utility services, with responses due on April 10, 2019. The procurement was conducted in accordance with Administrative Regulation 3.10. Two firms attended the pre-proposal conference. One response was received and was reviewed for minimum qualifications. The response was found to be responsive and responsible.
The evaluation committee consisted of qualified staff from the PCCD, the Planning and Development Department and Aventura. On April 25, 2019, the members met, reviewed and scored the submitted proposal based on the following criteria:
-Qualifications of Proposer (400 points)
-Financial Return to the City (300 points)
-Operations Plan (200 points)
-Business Plan (100 points)
One proposal was received, accepted and scored:
Commonwealth Electric Company of the Midwest: 950 points (out of a possible 1,000)
The City Transparency policy is in effect until the resultant Agreement from this RCS is awarded.
Contract Term
The contract term is for five years covering Oct. 1, 2019, through Sept. 30, 2024, with no extension options.
Financial Impact
This is a revenue-generating contract and is anticipated to result in approximately $5 million in revenue over the life of the contract and a capital investment of $24,100.
Concurrence/Previous Council Action
The Planning and Economic Development Subcommittee recommended approval of this item by a 4-0 vote at its June 4, 2019 meeting.
Public Outreach
The RCS was advertised on the City of Phoenix website and in the Arizona Business Gazette.
Department
Responsible Department
This item is submitted by Assistant City Manager Milton Dohoney, Jr. and the Phoenix Convention Center Department.