Title
Business Attraction and Development Services Contract Award - Greater Phoenix Economic Council (Ordinance S-49920)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with the Greater Phoenix Economic Council (GPEC) for business attraction and development services. The cost for year one of the contract will not exceed $811,450. 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, 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 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. The fee for each GPEC member in Maricopa County is calculated using a per capita rate of $0.4897, which has remained constant since 2020, and is based on the most current population estimates from the Arizona Office of Economic Opportunity. The 2022 population estimate for Phoenix is 1,657,035. Based on this formula, the Fiscal Year (FY) 2023-24 contract amount is $811,450, which will be shared equally by the Aviation, Public Works, Water Services, and Community and Economic Development (CED) departments.
GPEC regularly collaborates with CED to generate prospects and attract new business investment from outside the region. As of Feb. 2023, GPEC's efforts this fiscal year have helped locate 25 companies to the region, with the expectation of creating nearly 5,000 jobs and capital investments exceeding $397.4 million. 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
If approved, the term of the contract will be one year with four one-year renewal options to be exercised at the City's discretion. Staff will return to Council for approval of each year's proposed contract amount. The contract term will begin on or around July 1, 2023.
Financial Impact
The FY 2023-24 contract amount is $811,450, which will be shared equally by the Aviation, Public Works, Water Services and CED departments.
Concurrence/Previous Council Action
This item was recommended for approval by the Economic Development and Equity Subcommittee at the June 13, 2023 meeting by a vote of 4-0.
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua and Ginger Spencer, Interim Deputy City Manager John Chan, and the Aviation, Public Works, Water Services and Community and Economic Development departments.