Title
Enhanced Municipal Services District Services Contract - Request to Award (Ordinance S-52338) - Districts 7 & 8
Description
Authorize the City Manager, or the City Manager's designee, to contract with Downtown Phoenix, Inc. (DPI) to implement the Downtown Enhanced Municipal Services District (EMSD) for calendar years 2026-2030.
Report
Summary
On August 29, 1990, at the request of the downtown community, the City Council authorized the creation of an EMSD to provide greater services within the area generally bounded by 3rd Avenue and 7th Street, from Fillmore Street to Harrison Street. These services are funded via an assessment on the properties within the district boundaries.
The City currently contracts with DPI, a nonprofit corporation, to implement the work program of the Downtown EMSD. The City previously contracted with Downtown Phoenix Partnership (DPP) from 1990 until the formation of DPI in 2015. DPI was formed to improve the effectiveness and efficiency of downtown organizations and the two organizations merged in 2022, with the surviving entity keeping the DPI name and branding. DPI has been providing services to the district since 2015, and the organization’s current contract with the City will expire on December 31, 2025.
On an annual basis, the City Council approves the Downtown EMSD work plan and budget, as recommended by the EMSD Advisory Board, which includes City representation. Services funded through an assessment on properties within the Downtown EMSD include:
- Downtown Ambassadors
- Event support
- Pedestrian way-finding
- Sidewalk sweeping
- Graffiti removal
- Business assistance
- Landscape maintenance
While the City Council authorizes the Downtown EMSD budget each year, the EMSD priorities, work plans, and budgets are developed with guidance from DPI's volunteer EMSD Advisory Board. The City's current Downtown EMSD contract specifies that the EMSD Advisory Board include a cross-section of downtown stakeholders, including property owners, tenants, merchants, cultural and nonprofit organizations, City and Maricopa County management, and elected officials. The new Downtown EMSD contract will include similar requirements for the EMSD Advisory Board as well as other terms and conditions deemed necessary by City staff.
By contracting with DPI to implement the Downtown EMSD, the City can continue the positive momentum, streamlined coordination, and communication that DPI has delivered for the benefit of the City and the downtown community.
Procurement Information
In compliance with Section I, Paragraph 6 of Administrative Regulation 3.10, this procurement is a Special Circumstance Without Competition Determination. DPI was specifically created to serve the downtown area and provide these services.
Contract Term
The contract term will be for five years and one month beginning on December 1, 2025, through December 31, 2030. December 2025 is included in the term to ensure timely payment can be made to DPI for services that begin January 1, 2026.
Financial Impact
Property assessments fund the City's Downtown EMSD contract. City Council approves the Downtown EMSD budget, property assessments, and the City’s contribution on an annual basis. Staff requests this City Council action prior to the start of each Downtown EMSD calendar year, with the 2026 process currently underway.
Location
Council Districts: 7 and 8.
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Community and Economic Development Department.