Title
Marketing Services - 2020-25 Greater Phoenix Convention and Visitor's Bureau dba Visit Phoenix Agreement 149268-Amendment (Ordinance S-51191)
Description
Request to authorize the City Manager, or his designee, to allow additional expenditures under Contract 149268 with Visit Phoenix to provide marketing services for the Phoenix Convention Center Department (PCCD). Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures will not exceed $5,526,985.08.
Report
Summary
The contract with Visit Phoenix provides an advertising and promotional program to attract conventions and trade shows and promote tourism to the City of Phoenix including mega events like the National Football League (NFL) Super Bowl and the National Collegiate Athletic Association (NCAA) Men's Basketball Final Four. PCCD's current five-year contract with Visit Phoenix expires June 30, 2025.
Through this longstanding public/private partnership, Visit Phoenix has efficiently provided marketing services for the Phoenix Convention Center Department (and its predecessor, Phoenix Civic Plaza) since 1968. The need for additional payment authority is due to an increase in the Hotel/Motel Excise Tax collections. In Fiscal Year 1998-99, City Council approved the funding formula for the Visit Phoenix contract. The current City Council-adopted formula is based on 60 percent of PCCD's portion of the Hotel/Motel Excise Tax collections, utilizing a three-year rolling average. These additional funds are necessary to complete the current contract term under the approved funding formula.
Contract Term
The contract term remains unchanged, ending on June 30, 2025.
Financial Impact
Upon approval of $5,526,985.08 in additional funds, the revised aggregate value of the contract will not exceed $60,764,216.08. Funds are available in the Phoenix Convention Center Department’s budget.
Concurrence/Previous Council Action
The Downtown, Aviation, Economy and Innovation Subcommittee:
- Recommended this item for approval on May 2, 2018, by a vote of 4-0.
The City Council previously reviewed this request:
- Authorization to Enter into Contract with Greater Phoenix Convention & Visitor's Bureau, Contract 149268 (Ordinance S-44627) on May 16, 2018.
Department
Responsible Department
This item is submitted by Deputy City Manager John Chan and the Phoenix Convention Center Department.