Title
Business Attraction and Development Services Contract Award - Greater Phoenix Economic Council (Ordinance S-50895)
Description
Request to authorize the City Manager, or his designee, to approve funding for the second year of the City's contract with the Greater Phoenix Economic Council (GPEC) for business attraction and development services (Contract 158892). The cost for year two of the contract will not exceed $823,701. Further request to authorize the City Controller to disburse all funds related to this item. Funding is available in the budgets of the Aviation, Community and Economic Development (CED), Public Works and Water Services departments.
Report
Summary
GPEC's mission is to attract and grow quality businesses in the region and advocate for Greater Phoenix's economic competitiveness. Its efforts include marketing the region, including coordinating regional prospect proposals and real estate tours, domestic and international sales missions, and other strategic activities resulting in business investment in Greater Phoenix.
The City has been a member of GPEC since the organization's inception in 1989. Since 2020, the fee for each GPEC member in Maricopa County is calculated using a rate of $0.4897 per resident, based on the most current population estimates from the Arizona Office of Economic Opportunity. The 2023 population estimate for Phoenix is 1,682,053. Based on this formula, the Fiscal Year (FY) 2024-25 contract amount is $823,701, which will be shared equally by the Aviation, CED, Public Works, and Water Services departments.
GPEC regularly collaborates with CED to generate prospects and attract new business investment from outside the region. As of February 2024, GPEC's efforts this fiscal year have helped locate 31 companies to the region, with the expectation of creating nearly 4,321 jobs and capital investments exceeding $28 billion. To date, eight of those companies have chosen to locate in Phoenix. Over the past five years, Phoenix's return on investment from our partnership with GPEC has been $107 of direct revenue for every $1 invested.
GPEC represents 23 municipalities in the region, including Maricopa County, and conducts a variety of diverse and value-added services and activities on behalf of its members. In addition to the public sector members, more than 190 private investors contribute resources to support GPEC's efforts.
Procurement Information
In accordance with Administrative Regulation 3.10, an exception to the procurement process was approved to select this vendor as a Sole Source given its unique role in performing business attraction and development services for the Greater Phoenix region.
Contract Term
On June 28, 2023, City Council authorized a contract with four one-year renewal options. If funding for FY 2024-25 is approved in the amount of $823,701, the contract will be renewed, and three one-year renewal options will remain.
Financial Impact
The FY 2024-25 contract amount is $823,701, which will be shared equally by the Aviation, CED, Public Works, and Water Services departments.
Concurrence/Previous Council Action
On June 28, 2023, City Council approved Contract 158892 with GPEC. This item was recommended for approval by the Economic Development and Housing Subcommittee at the May 8, 2024, meeting by a vote of 4-0.
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua, Ginger Spencer and John Chan, and the Aviation, Public Works, Water Services, and Community and Economic Development departments.