Title
Authorization to Enter Into Contract with Greater Phoenix Economic Council (Ordinance S-44585)
Description
Request to authorize the City Manager, or his designee, to enter into a one-year contract with the Greater Phoenix Economic Council (GPEC) for fiscal year 2018-19 for business attraction and development services in an amount not to exceed $733,879. Further request to authorize the City Controller to disburse the necessary funds related to this item.
Report
Summary
GPEC's mission is to attract and grow quality businesses and advocate for Greater Phoenix's competitiveness. Its efforts include marketing the region, coordination of regional prospect proposals and real estate tours, domestic and international sales missions and other strategic activities resulting in business investment in the region.
The City of Phoenix has been a member of GPEC since its inception in 1989. The fee for each GPEC member in Maricopa County is calculated using the per-capita rate of $0.4647, which is an increase of $0.025, and is based on the most current population estimates from the Arizona Department of Administration's Office of Employment and Populations Statistics. The 2017 population estimate for Phoenix is 1,579,253. Based on this formula, the fiscal year 2018-19 contract amount is $733,879, which will be shared equally by the Aviation, Public Works, Water Services and Community and Economic Development (CEDD) departments.
GPEC specifically collaborates with CEDD every year to generate prospects and attract new business investment from outside the region. To date for this fiscal year, GPEC has helped to locate 29 companies, expecting to create more than 5,500 jobs and make nearly $930 million in capital investment in the region. Thirteen of those companies have chosen to locate in Phoenix.
GPEC represents 23 municipalities in the region plus 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 170 private-sector investors contribute resources to support GPEC's efforts.
Contract Term
The term of this one-year contract is July 1, 2018, to June 30, 2019.
Financial Impact
The new contract will not exceed $733,879, with costs shared by the Aviation, Public Works, Water Services, and Community and Economic Development departments.
Concurrence/Previous Council Action
This item was recommended for approval by the Downtown, Aviation, Economy and Innovation Subcommittee at its May 2, 2018, meeting by a vote of 4-0.
Department
Responsible Department
This item is submitted by Deputy City Managers Deanna Jonovich and Karen Peters, and the Aviation, Public Works, Water Services and Community and Economic Development departments.