Title
Authorization to Enter Into Contract with Greater Phoenix Economic Council (Ordinance S-45698)
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 2019-20 for business attraction and development services in an amount not to exceed $782,412. Further request authorization for the City Controller to disburse 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 the organization's inception in 1989. The fee for each GPEC member in Maricopa County is calculated using the per- capita rate of $0.4897, which is an increase of $0.025 over last year, and is based on the most current population estimates from the Arizona Department of Administration's Office of Employment and Population Statistics. The 2018 population estimate for Phoenix is 1,597,738. Based on this formula, the Fiscal Year 2019-20 contract amount is $782,412, which will be shared equally by the Aviation, Public Works, Water Services, and Community and Economic Development (CED) departments.
GPEC specifically collaborates with CED every year to generate prospects and attract new business investment from outside the region. To date for Fiscal Year 2018-19, GPEC has helped locate 38 companies to the region, expecting to create more than 7,000 jobs and make capital investments totaling more than $825 million. So far, 10 of those companies have chosen to locate in Phoenix.
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 160 private investors contribute resources to support GPEC's efforts.
Contract Term
The term of this one-year contract is July 1, 2019, to June 30, 2020.
Financial Impact
Based on the formula, the Fiscal Year 2019-20 contract amount is $782,412, 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 at the Planning and Economic Development Subcommittee meeting on May 7, 2019, by a vote of 3-0.
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich, Deputy City Managers Karen Peters and Mario Paniagua, and the Aviation, Public Works, Water Services, and Community and Economic Development departments.