Title
Phoenix Sister Cities, Inc. - Authorization to Extend Contract
Description
The report requests the Economic Development and Subcommittee recommend City Council approval to extend the City's contract with Phoenix Sister Cities, Inc. (PSC). The original contract dates were July 1, 2021 through June 30, 2024; the extension would continue the contract through June 30, 2026. The contract supports program coordination in youth and education, municipal and technical cooperation, business, and arts and culture with Phoenix's 11 Sister Cities. Additional expenditures are not to exceed $1,350,000 through June 30, 2026.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
Phoenix Sister Cities, Inc. is a 501(c)(3) nonprofit organization established in 1972. It is responsible for coordinating exchange programs in youth and education, municipal and technical cooperation, business, and arts and culture with Phoenix's eleven Sister Cities. Currently, the City has Sister Cities relationships with Calgary, Canada; Catania, Italy; Chengdu, China; Ennis, Ireland; Hermosillo, Mexico; Himeji, Japan; Grenoble, France; Prague, Czech Republic; Ramat-Gan, Israel; Suwon, South Korea; and Taipei, Taiwan.
PSC exists to create people-to-people relationships between the residents of Phoenix and its Sister Cities through commercial, educational, cultural and artistic exchange programs and events that create and sustain global, long-term, international partnerships and business opportunities for Phoenix. The City has contracted with PSC since the mid-1980s. The organization is administered by a Board of Directors composed of PSC Commission members, appointed by the Mayor and approved by the City Council, and the chairpersons of the 11 Sister Cities committees and the Disability Awareness Committee. Currently, four other community members serve as at-large Board members.
During the beginning of this contract period, July 1, 2021, through the present, PSC coordinated:
- The establishment of a Sister Cities relationship with Suwon, South Korea;
- Events and activities to welcome to Phoenix employees of the Taiwan Semiconductor Manufacturing Company and their families, including a celebration at Arizona State University (ASU) West for Double Ten (Taiwan's national holiday);
- A trade mission of companies from Calgary, Canada, exploring opportunities to launch their U.S. operations in consumer packaged goods from Phoenix;
- A trade mission of companies from the Czech Republic in artificial intelligence, biotech, fintech, and cybersecurity, exploring opportunities to launch their U.S. operations from Phoenix;
- An event to introduce Phoenix economic development opportunities to 27 economic attaches of the European Union (stationed in their respective embassies in Washington, D.C.) during a visit to Phoenix;
- A delegation of Phoenicians to Hermosillo, Mexico, to explore baseball, art and cuisine in Phoenix's oldest Sister City;
- An event to introduce Phoenix economic development opportunities to 31 members of the Global Federation of Chinese Business Women (headquartered in Taipei, Taiwan) during a visit to Phoenix;
- Negotiations to establish a Sister Cities relationship with Medellin, Colombia, including sending a working delegation to Medellin and receiving a working delegation, in turn, to determine the terms of a Sister Cities agreement; and more.
These activities are accomplished by outsourcing the coordination of events and exchanges through a great number of PSC volunteers, totaling more than 13,000 hours and valued at more than $400,000 between July 1, 2021 and June 30, 2022.
In March 2020, Council approved an International Trade Strategy to advance the City’s economic development activities with multiple partners internationally. Described in the plan, amongst its many components, is the expansion of international inbound and outbound delegations to grow new international activity as well as partnerships with Phoenix hospitals to create a Destination Medicine/Healthcare Tourism program.
Beginning in Fiscal Year 2024, PSC will expand its scope beyond its traditional role and provide support to the City’s International Trade Strategy. To meet this expanded role and continue the work already undertaken, funding for PSC will support:
- The adoption of up to three new Sister Cities: one in India; one in Africa; and Medellin, Colombia (contingent upon City Council approval);
- Youth and Education and Business Development programs - continuing the work of PSC's award winning Youth Ambassador Exchange Program, this work began with the trade missions outlined above; and
- Costs associated with the Phoenix Global Forum - an international economic development conference to be presented annually beginning in May 2024 in partnership with the International Economic Forum of the Americas.
The PSC program has been recognized by Sister Cities International for its excellence, receiving the award for Best Overall Program in the U.S. (for a city with a population over 500,001) 10 times in the last 24 years - most recently in 2022.
Procurement Information
In compliance with Administrative Regulation 3.10, an exception to the procurement process was approved to select this vendor as a sole sources given its unique role in providing these services to the City.
Contract Term
If approved, the revised contract term will be extended through June 30, 2026.
Financial Impact
City funds pay for staff salaries and benefits. All PSC exchanges, events and travel are privately funded. The budget for the remaining contract period through June 30, 2026 totals $1,350,000. The funding increase for these expanded services in Fiscal Year (FY) 2023-24 would come from the Downtown Community Reinvestment Fund, the funding for FY 2024-25 and FY 2025-26 would come from the General Fund.
Department
Responsible Department
This item is submitted by Interim Deputy City Manager John Chan and the Community and Economic Development Department.