Title
Talking Stick Resort Arena Renovation Owner's Representative Re-Advertisement - Professional Services - ED20000004 (ED20000003) (Ordinance S-45773)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with PC Sports, Inc. dba PC Sports, or its City-approved designee, to provide Professional Services that include Owner's Representative Services for the City-owned Talking Stick Resort Arena Renovation project (Project). Further request to authorize execution of amendments to the agreement as necessary within the Council-approved expenditure authority as provided below and for the City Controller to disburse, and the City Treasurer to accept, all funds related to this item. The fee for services will not exceed $3.5 million. There is no impact to the General Fund.
Report
Summary
On Jan. 23, 2019, City Council authorized the City Manager, or designee, to amend, and/or enter into related agreements with Phoenix Arena Development Limited Partnership (Arena Operator), Suns Legacy Partners, LLC (Phoenix Suns), and/or their affiliates or City-approved designees, to facilitate the approximately $230 million Project. As authorized by City Council, City staff issued a solicitation to procure an independent expert (Owner’s Representative) to facilitate the City’s oversight of the Project and to monitor the expenditure of City funds.
The successful proposer will assist the City in monitoring the Project and expenditures as an extension of City staff, ensure all items in the Project scope are completed, and provide regular status reports to the City Manager and the Council. The successful proposer’s scope of work will include: reviewing existing documentation of the proposed renovations and assisting the City with providing feedback to, and collaborating with, the Arena Operator, Phoenix Suns, design team and contractor, and other stakeholders as appropriate; and representing and advising the City throughout the life of the Project to ensure it is completed on-time, that City funds are utilized only for public infrastructure authorized in the Program and approved by Council. The balance of operator-funded renovations are completed as provided for in the Program.
Procurement Information
The selection was made using a qualifications-based selection process set forth in section 34-603 of the Arizona Revised Statutes (A.R.S.). In accordance with A.R.S. section 34-603(H), the City may not publicly release information on proposals received or the scoring results until an agreement is awarded. Six firms submitted proposals and are listed below.
Selected Firm
Rank 1: PC Sports, Inc. dba PC Sports
Additional Proposers
Rank 2: ICON Venue Group, LLC dba CAA ICON
Rank 3: International Facilities Group, LLC
Rank 4: Sterling Project Development Group dba SPD Sports
Rank 5: Marc Taylor, Inc.
Rank 6: Kitchell
Each submitter was required to demonstrate minimum qualifications of successfully completing a project valued at $75 million or more performing as an owner's representative in order to be evaluated by panel comprised of representatives from the community, development industry, and City staff from the Aviation, Community and Economic Development, Public Works, and Street Transportation departments.
On Feb. 28, 2019 the initial advertisement for the Project was made available to the public. On April 12, 2019, the City canceled the advertisement out of an abundance of caution due to a potential perceived conflict of interest. On April 15, 2019, the Project was re-advertised.
Contract Term
The term of the agreement is for three years from the issuance of the Notice to Proceed. The agreement will include two one-year renewal options to be exercised at the City’s discretion.
Financial Impact
The agreement value for PC Sports, Inc. will not exceed $3.5 million, including all subconsultant and reimbursable costs.
The source of this funding is from bond proceeds previously authorized by Ordinances S-45265 and S-42566, and/or from the Sports Facilities Fund (tourism taxes). There is no impact to the General Fund.
Concurrence/Previous Council Action
On Jan. 23, 2019, City Council adopted Ordinances S-45265 and S-45266 authorizing the Project and its financing, including the procurement of owner’s representation services to oversee the City’s investment and interests in the Project.
Public Outreach
In January 2019, a series of community meetings were held citywide regarding the Project. Additionally, a special City webpage was created at www.phoenix.gov/arena to provide background and detailed information about the City-owned arena.
Location
201 E. Jefferson St.
Council District: 7
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich, Deputy City Manager Mario Paniagua, the Community and Economic Development Department, and City Engineer.