Title
AUTHORIZATION TO ENTER INTO AMENDMENT NO. 3 AGREEMENT FOR SERVICES WITH SMG FOR THE PROVISION OF EMERGENCY MEDICAL SERVICES PROVIDED BY THE GLENDALE FIRE DEPARTMENT AT THE UNIVERSITY OF PHOENIX STADIUM
Staff Contact: Jean Moreno, Executive Officer, Strategic Initiatives and Special Projects
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to execute a third amendment to city contract 8672 for the provision of emergency medical services provided by the Glendale Fire Department at the University of Phoenix Stadium. This amendment would extend services through April 7, 2017 in order to ensure continuity of service through the NCAA Men’s Final Four.
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Background
The Arizona Sports and Tourism Authority (AZSTA) owns and operates the University of Phoenix Stadium (stadium) located in the City of Glendale and is responsible for the provision of public safety services inside the facility. The City and AZSTA entered into an Intergovernmental Services Agreement in September 2002 that addressed among other things the provision of public safety services associated with events taking place at the stadium. The AZSTA assigns the responsibility of procuring public safety services to the stadium’s venue manager which changed on July 1, 2016 as a result of a competitive bid process. The contract was awarded to SMG. This was the first change in stadium venue management since the facility opened in 2006. This also coincided with the expiration of the city’s service agreements.
In an effort to allow the new operator time to orient themselves to the existing operation, conduct due diligence, and to negotiate new agreements with public safety providers, staff requested two previous extensions of the public safety service agreements relating to both police and fire services. The most recent amendment allowed for a month-to month renewal through January 31, 2017. Through the discovery process, staff shared information with SMG regarding the costs associated with the provision of these services from the City of Glendale and discussed service delivery models. SMG subsequently made the decision to select alternate vendors to provide these services.
With regard to emergency medical services, SMG has requested that the City of Glendale continue to provide service through April 7, 2017 in order to ensure continuity of service for the NCAA Men’s Final Four Championship events taking place in our community. SMG was unable to get a new provider on board early enough to fully service this major national event.
Analysis
The cost of providing public safety services for the stadium’s needs exceeds the amount the city can recover under the existing agreements resulting in a negative financial impact to the city. A variety of service delivery models were discussed with SMG; however, they ultimately chose to secure alternate providers, which staff supports. With regard to the provision of police services, SMG has elected to use the services of the Arizona Department of Public Safety who has experience working with Glendale inside the stadium easing the police services transition. With regard to fire services, the new vendor does not have experience working in this venue and SMG is still working out contract terms. As such, SMG believes that it is in the best interest of the community to continue to procure emergency medical services from Glendale through the Final Four which will also support an appropriately executed transition plan.
Glendale staff will still remain engaged with SMG as a valued partner, the city will continue to provide traffic management services in accordance with our contracts, and will remain engaged in the planning for all major national events taking place in our community now and into the future.
Previous Related Council Action
On September 27, 2016 City Council authorized the City Manager to enter into Amendment No. 2 Agreement for Services for city contracts numbered 8672 and 8832 allowing for month-to-month extensions through January 31, 2017.
On June 28, 2016 City Council authorized the City Manager to enter into Amendment No. 1 Agreement for Services for city contracts numbered 8672 and 8832 to assign and transfer rights and obligations to SMG for the provision of public safety services and extend the term of the contracts to September 30, 2016.
On October 22, 2013 City Council authorized the City Manager to enter into an agreement with Global Spectrum, L.P. for emergency medical services and fire inspection/prevention services at the University of Phoenix Stadium.
Community Benefit/Public Involvement
The University of Phoenix stadium programs on average over 120 events annually, attracts on average over one million visitors, and consistently ranks among the busiest of the NFL stadiums. In addition to being the home of the Arizona Cardinals, the University of Phoenix Stadium has brought international exposure to the City of Glendale as a result of hosting large-scale national events including Super Bowl XLII, Super Bowl XLIX, 2015 Pro Bowl, two BCS college football championships, the 2016 College Football Playoff, the annual Fiesta Bowl, major concerts, and will be the host for the 2017 NCAA Men’s Final Four college basketball tournament. Working in partnership with the AZSTA, the Arizona Cardinals, and SMG supports local, regional, and state objectives which are all aligned to enhance the economy, attract visitors, and increase commerce in an effort to improve the quality of life for all Arizonans.
Budget and Financial Impacts
A budget allocation for stadium event staffing associated with these contracts and other obligations was a part of the FY2017 Final Budget Adoption. No additional allocation for the extension of this contract is required.