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AUTHORIZATION TO EXECUTE AMENDMENT NO. 1 AGREEMENT FOR SERVICES FOR CITY CONTRACTS 8672 AND 8832 TO ASSIGN AND TRANSFER RIGHTS AND OBLIGATIONS TO SMG FOR THE PROVISION OF PUBLIC SAFETY SERVICES PROVIDED AT THE UNIVERSITY OF PHOENIX STADIUM AND EXTENDING THE TERM OF THE CONTRACTS TO SEPTEMBER 30, 2016
Staff Contact: Jean Moreno, Economic Development Officer
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to execute 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 provided by the City of Glendale at the University of Phoenix Stadium and extending the term of the contracts to September 30, 2016. The draft Amendment No. 1 attached is in substantial final form and this request includes authorization for the City Attorney to make any final changes consistent with the intent of the Amendment.
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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. 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 focus of the city's planning efforts surrounding all special events is to ensure the best possible visitor experience for event guests, while maintaining the delivery of quality public services to residents, businesses, and the community as a whole. A mega events strategic plan was developed and presented to City Council on October 18, 2005, which included public safety for citizens and visitors while special events are taking place in our community. Subsequently, the AZSTA assigned the responsibility of securing public safety services to the stadium’s venue manager, Global Spectrum.
The City currently has two agreements with Global Spectrum to provide public safety services. Contract 8672 is for the provision of emergency medical and fire prevention/inspection services executed on October 22, 2013 which can be mutually extended by both parties. Contract 8832 is for the provision of police services executed on April 10, 2014 and expires on July 1, 2016. Both of these contracts outline the scope of service and a compensation or reimbursement rate to be paid by Global Spectrum to the city for services rendered. Total compensation is paid based on an hourly rate for each staffed position provided by the city whether it is city staff or through the use of coalition officers.
Analysis
The AZSTA recently completed a competitive selection process for management of the stadium and has selected SMG to take over venue management effective July 1, 2016. Both the AZSTA and SMG have expressed their desire to continue contracting with the City for fire and police services, but given the time constraints and the desire to provide continuity of services, it is necessary to assign the existing contracts to SMG and extend the effective date through September 30, 2016 to allow adequate time to negotiate terms for the new contracts. Those contracts would be presented to City Council at a future date prior to the expiration of the extension.
SMG has a five year contract with the AZSTA for the management of the Stadium. In the past, the terms of the public safety services contracts have varied and required new contracts or extensions every 2-3 years. It is staff’s recommendation that the city attempt to negotiate a contract term that is aligned with the existing venue management agreement to ensure continuity of service, improve efficiency as it relates to time spent negotiating the contracts, and to allow for stabilization in the planning and resource allocation process.
Previous Related Council Action
On April 8, 2014 City Council authorized the City Manager to enter into an agreement with Global Spectrum, L.P. for police services at the University of Phoenix Stadium.
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 and consistently ranks among the busiest of the NFL stadiums. Combined event attendance in FY2015 was approximately 1,282,000 and FY2014 was approximately 1,150,000. 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 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 the University of Phoenix Stadium venue manager in the provision of public safety services 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 included in the FY2017 budget.