downtown, aviation, economy and 200 w. washington … council meeting files... · downtown,...

Downtown, Aviation, Economy and

Innovation Subcommittee

Agenda Meeting Location:

Phoenix City Hall

200 W. Washington St.

Phoenix, AZ 85003

First Floor Assembly Rooms A, B & C10:00 AMWednesday, April 4, 2018

CALL TO ORDER

CALL TO THE PUBLIC

MINUTES OF MEETINGS

1 For Approval or Correction, the Minutes of the Downtown, Aviation,

Economy and Innovation Subcommittee Meeting on March 13,

2018

Responsible Department

This item is submitted by Deputy City Manager Deanna Jonovich.

CONSENT ACTION (ITEMS 2-8)

2 Authorization to Issue a Request for Proposals for the Lease and

Redevelopment of the City-Owned Parcel at 300 N. Central Ave.

This report requests the Downtown, Aviation, Economy and Innovation

Subcommittee recommend City Council authorization to issue a Request

for Proposals to select a development team and begin negotiations for the

lease and redevelopment of the City-owned transit center parcel known as

the Central Station Transit Center at 300 N. Central Ave.

THIS ITEM IS FOR CONSENT ACTION.

Responsible DepartmentThis item is submitted by Deputy City Managers Deanna Jonovich and Mario Paniagua, and the Community and Economic Development and Public Transit departments.

City of Phoenix Printed on 3/28/2018

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April 4, 2018Downtown, Aviation, Economy and


Agenda

3

4

Request Authorization to Enter Development Agreement for

Disposition of City-Owned Parcel at 1701 W. Camelback Road


Subcommittee recommend City Council authorization to enter into a

development agreement, and other agreements as necessary, with

Unified Capital Partners, LLC for the sale and development of a City-

owned parcel located at 1701 W. Camelback Road. Further request

authorization to accept all funds related to this item. The Developer will

pay a purchase price of $110,000 for the site, with a projected total

project value of $66.3 million.



This item is submitted by Deputy City Managers Deanna Jonovich and

Mario Paniagua, and the Community and Economic Development and

Public Transit departments.

Phoenix Sister Cities International Membership


Subcommittee recommend City Council approval for the annual Phoenix

Sister Cities membership. The annual membership fee is $35,000.



This item is submitted by Deputy City Manager Deanna Jonovich and

the Aviation Department.


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Agenda

5

6

7

Northwest Industrial Airpark Through-The-Fence Agreement


Subcommittee recommend City Council authorization to amend the

agreement between the City of Phoenix and Northwest Industrial Airpark

Association, to extend the through-the-fence agreement for a total of 30

years from the date the agreement is signed. The anticipated annual

revenue for this amended agreement will be approximately $5,900.



This item is submitted by Deputy City Manager Deanna Jonovich and the

Aviation Department.

Airspace Analysis Services


Subcommittee recommend City Council approval to issue a Request for

Proposal for Airspace Analysis Services. The City estimates a possible

initial customization and startup fee of up to $80,000 and an annual

maintenance and licensing fee thereafter of up to $20,000.





Request to Issue Request for Proposals for Environmental

Remediation Services


Subcommittee recommend City Council approval to issue a Request for


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Agenda

Proposal for Environmental Remediation Services. The aggregate

amount over the life of the contract will not exceed $250,000. Honeywell

International, Inc., will reimburse City for these costs.





8 Authorization to Enter into a Contract with AV Concepts, Inc.


Subcommittee recommend City Council approval to enter into a five-year

contract with AV Concepts, Inc. for services at the Phoenix Convention

Center. This is a revenue-generating contract and is anticipated to result in

approximately $4.5 million dollars in revenue over the life of the contract.



This item is submitted by Assistant City Manager, Milton Dohoney, Jr., and

the Phoenix Convention Center Department.

DISCUSSION AND POSSIBLE ACTION (ITEM 9)

9 Authorization to Compete an Unsolicited Development Proposal for

Three City-Owned Properties along 3rd Street


Subcommittee recommend City Council authorization to compete an

unsolicited development proposal for three City-owned properties along

3rd Street.


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Agenda

THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.


This item is submitted by Assistant City Manager Milton Dohoney Jr.,

Deputy City Manager Deanna Jonovich, the Community and Economic

Development Department and the Phoenix Convention Center.

INFORMATION AND DISCUSSION (ITEMS 10-11)

10 2018 Phoenix Building Construction Code Adoption

This report provides information to the Downtown, Aviation, Economy and

Innovation Subcommittee on the proposed 2018 Phoenix Building

Construction Code, as amended, that was approved by the Development

Advisory Board.

THIS ITEM IS FOR INFORMATION AND DISCUSSION.


This item is submitted by Deputy City Manager Mario Paniagua and the

Planning and Development Department.

11 FAA Flight Path Update

This report provides an update to the Downtown, Aviation, Economy and

Innovation Subcommittee on progress made by the Aviation Department

in addressing noise issues created by the Federal Aviation

Administration’s implementation of new flight paths at Phoenix Sky

Harbor International Airport.






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Agenda

CALL TO THE PUBLIC

FUTURE AGENDA ITEMS

ADJOURN

For further information or to request reasonable accommodations, please call Jennifer Wingenroth, Management Assistant II, City Manager's Office at 602-262-7526. 7-1-1 Friendly

Persons paid to lobby on behalf of persons or organizations other than themselves shall register with the City Clerk prior to lobbying or within five business days thereafter, and must register annually to continue lobbying. If you have any questions about registration or whether or not you must register, please contact the City Clerk’s Office at 602-262-6811.

Members:

Councilman Daniel Valenzuela, ChairVice Mayor Laura Pastor

Councilman Michael NowakowskiCouncilwoman Thelda Williams


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Downtown, Aviation, Economy and InnovationSubcommittee

City Council Report

Agenda Date: 4/4/2018, Item No. 1

For Approval or Correction, the Minutes of the Downtown, Aviation, Economyand Innovation Subcommittee Meeting on March 13, 2018

SummaryThis item transmits the minutes of the Downtown, Aviation, Economy and InnovationSubcommittee Meeting on March 13, 2018 for review, correction or approval by theDowntown, Aviation, Economy and Innovation Subcommittee.

The minutes are attached.

Responsible DepartmentThis item is submitted by Deputy City Manager Deanna Jonovich.

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Phoenix City CouncilDowntown, Aviation, Economy and Innovation Subcommittee

Summary MinutesTuesday, March 13, 2018

City Council Subcommittee Room Phoenix City Hall, Assembly Rooms A, B and C 200 W. Washington St.Phoenix, Ariz.

Subcommittee Members Present Subcommittee Members Absent Councilman Daniel Valenzuela, ChairVice Mayor Laura PastorCouncilwoman Thelda WilliamsCouncilman Michael Nowakowski

Call to Order Vice Mayor Pastor called the Downtown, Aviation, Economy and Innovation Subcommittee meeting to order at 1:37 p.m., with Councilwoman Williams and Councilman Nowakowski present.

Call to the Public None.

1. For Approval or Correction, the Minutes of the Downtown, Aviation, Economy and Innovation Subcommittee Meeting on Feb. 7, 2018Councilwoman Williams made a motion to approve the minutes of the Downtown, Aviation, Economy and Innovation Subcommittee meeting on Feb. 7, 2018. Councilman Nowakowski seconded the motion which passed unanimously, 3-0.

Items 2-5 were for consent action. No presentations were planned; staff was available to answer questions.

Councilwoman Williams made a motion to approve consent items 2, 3 and 5. Councilman Nowakowski seconded the motion which passed unanimously, 3-0.

Chairman Valenzuela arrived in person at 1:38 p.m.

2. Noise and Operations Management System – Request to Issue Request for Proposals

3. (Continued from Feb. 7, 2018) Rental Car Center Food and Beverage Concession – Request to Issue Revenue Contract Solicitation

4. Warehouse/Threatened Building Grant Application for Beth Hebrew Synagogue, 333 E. Portland St.

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Brent Kleinman expressed support in moving the item forward and obtaining grant money for the synagogue.

Councilwoman Williams made a motion to approve consent item 4. Vice Mayor Pastor seconded the motion which passed unanimously, 4-0.

5. Award Lot Cleaning and Maintenance Services Contract

6. Key Phoenix Economic Indicators Quarterly ReportThis report is for information only. No Councilmember requested additional information.

7. Community Facility DistrictsDenise Olson, Chief Financial Officer, introduced Alan Stephenson, Planning and Development Director, and Chris Mackay, Community and Economic Development Director. She introduced revisions to the existing policy on community facilities districts due to changes in the State law. She defined community facility districts (CFDs) and detailed the eligible CFD funded public infrastructure. She presented the history of the City's CFDs and described the changes from Senate Bill 1480.

Mr. Stephenson presented the changes to the CFD Formation Process and the overall policy.

Councilwoman Williams asked if there is a minimum acreage that must be included. Mr. Stephenson stated there is no minimum acreage.

Councilwoman Williams asked if the City’s current CFD, Tatum Ranch, was residential. Mr. Stephenson confirmed she is correct.

Councilwoman Williams asked if an assessment of each house went to repayment as it was developed. Mr. Stephenson said the repayment would show up on the property owner’s bill as a special tax assessment to repay that debt.

Vice Mayor Pastor asked if Tatum Ranch has to pay back the bonds that were issued to them. Ms. Olson confirmed she is correct.

Vice Mayor Pastor asked if the owners are aware they would have to pay this tax when they purchase the home. Mr. Stephenson confirmed that is correct and discussed the reasoning behind the process.

Ms. Olson mentioned the required website so all information is communicated before someone purchases a property in the district.

Vice Mayor Pastor inquired about the advantages of a CFD.

Ms. Olson said a CFD is advantageous for a project where the infrastructure needs to be completed ahead of what was originally planned.

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Vice Mayor Pastor discussed how all the infrastructure is built in partnership with the district. Ms. Olson confirmed she is correct.

Councilwoman Williams made a motion to approve item 7. Councilman Nowakowski seconded the motion which passed unanimously, 4-0.

8. Authorization to Enter into an Intergovernmental Agreement with Arizona State University for Development of the Thunderbird School of Global Management Facilities in Downtown Phoenix Chris Mackay, Community and Economic Development Director, announced thepossibility of bringing the ASU Thunderbird School of Global Management to downtown Phoenix and introduced Eric Johnson, Deputy Community and Economic Development Director, to discuss the property.

Mr. Johnson discussed the development of the Polk Block from the ASU downtown campus and presented the site's existing condition for the Thunderbird School.

Ms. Mackay presented the concept rendering of what ASU is proposing to build including the facility, graduate school housing, and interim improvements. She also presented the proposed timeline of construction and the staff-recommended City contribution. She detailed the economic impact the downtown ASU campus has provided and the direct revenue the City of Phoenix would receive.

Kevin Roos introduced himself as an alumnus from the ASU Thunderbird School and expressed excitement about the school's move to downtown Phoenix.

Brian Foster described the benefits he has seen already from moving ASU downtown and expressed support for the intergovernmental agreement recommended by staff.

Dan Klocke discussed the benefits of the executive education program and the graduation of students who become executive business leaders around the globe.

Councilwoman Williams inquired about the funding source for the City funds. Ms. Mackay discussed the downtown reinvestment fund and explained how revenue is collected for lease and land payments.

Councilwoman Williams detailed numerous benefits, including no use of general fund money, no increase in taxes, and the rest of the school moving to ASU West.

Councilman Nowakowski credited ASU moving downtown for the development and vibrancy of the downtown area, the tax revenue ASU has brought, and the opportunities for graduates. He said Thunderbird will help Phoenix to become a global city.

Chairman Valenzuela expressed excitement for the growth of downtown Phoenix and bringing Thunderbird to downtown, and discussed the benefits of investment in infrastructure and education.

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Councilwoman Williams made a motion to approve item 8. Councilman Nowakowski seconded the motion which passed unanimously, 4-0.

9. FAA Flight Path UpdateJim Bennett, Aviation Director, introduced Jordan Feld, Deputy Aviation Director, and Deborah Ostreicher, Assistant Aviation Director.

Mr. Feld presented the community involvement from the FAA flight path workshops. He also presented on the FAA Natural and Historic Property Act requirements, and the current schedule of the FAA route implementation and consultation process.

Councilman Nowakowski asked why the tribal review and southwest route changes will not be completed by April 1.

Mr. Feld said the FAA did not want to push too hard and expedite the tribal review.

Councilman Nowakowski asked if the City can request a deadline. He expressed concern regarding a quarter of the City still being affected.

Mr. Feld said staff will share that concern with the FAA and make sure the tribes understand that issue as well.

Councilman Nowakowski asked if there are any solutions staff would recommend.

Mr. Feld stated staff has confidence that the southwest tribal coordination will be completed by the May 24 deadline but can also ask for a timely review.

Councilman Nowakowski expressed concern about having confidence in the FAA given past situations.

Ms. Ostreicher stated staff will converse with the regional administrator and the tribal councils regarding the Councilman’s thoughts, and develop strategies so Council can have a date they rely on.

Vice Mayor Pastor requested staff research solutions for a dialogue with the tribal partners regarding the deadline. Ms. Ostreicher stated staff will speak with them and come back with what the exact commitments could be for a date the Council can rely on.

Vice Mayor Pastor asked what is the process of the tribal review.

Mr. Feld detailed the consultation process, which includes 30 days to respond once the FAA issues its findings that have not yet been issued as the FAA is allowing the tribes time to provide more feedback.

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Brent Kleinman asked what the FAA’s delay is in proposing their final order and he also asked if the west and northwest flights are ready to go for the April 1 deadline.

Mr. Bennett confirmed the northwest and west flights are ready to go.

Call to the Public None.

Future Agenda Items None.

Adjournment Chairman Valenzuela adjourned the meeting at 2:26 p.m.

Respectfully submitted, Ryley BuchananManagement Intern

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City Council Report


Authorization to Issue a Request for Proposals for the Lease andRedevelopment of the City-Owned Parcel at 300 N. Central Ave.

This report requests the Downtown, Aviation, Economy and Innovation (DAEI)Subcommittee recommend City Council authorization to issue a Request for Proposals(RFP) to select a development team and begin negotiations for the lease andredevelopment of the City-owned transit center parcel known as the Central StationTransit Center (Central Station) at 300 N. Central Ave.


SummaryThe Central Station Transit Center consists of approximately 2.6 acres with busshelters, amenities, and a 4,960 square-foot transit building (collectively, the "Site").Central Station was built in 1997 and renovated in 2011 using federal funds. In 2008,light rail stations were constructed adjacent to the Site on Central and First avenues.The Site was the subject of an RFP in 2014 that did not result in a disposition. Sincecancellation of those negotiations, staff has received significant development interestin the Site for potential mixed use, transit-oriented development, while still servingtransit uses.

The proposal is a collaboration between the City of Phoenix and one or more partnersto build transit-oriented development, which is typically dense, walkable, mixed-usedevelopment while improving the transit system. The goals of the joint developmentsinclude:· To enhance the transit system in the context of the multimodal transportation

network.· To generate revenue for public transit.

· To build vibrant, mixed use, economically successful transit-oriented communities.

Proposers will be required to:· Provide the City with approximately 9,000 square feet (SF) of commercial space (at

least 3,000 SF on the ground floor) for transit operations.· Allow the City shared use of the Polk Street alignment and a south-to-north drive

aisle through the Site for transit purposes.

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· Offer a minimum annual return to the City of five percent of the appraised value incash lease payments.

· Demonstrate experience successfully completing at least one vertical developmentof at least seven stories within the past five years.

The RFP will include standard terms, conditions and other requirements necessary tocomply with Federal Transit Authority regulations, and will include the followingevaluation criteria:

1. Concept to Activate the Site: 0-375 points2. Return to the City: 0-325 points3. Proposer's Qualifications and Experience: 0-300 points

An appraisal of the Site was completed in October 2017 valuing the site at$12,286,000 and net proceeds from the agreement resulting from this RFP will bedirected to the City's transit fund per FTA requirements.

Staff plans to issue the RFP in spring 2018 and keep it open for at least 60 days.Responsive proposals will be evaluated by a diverse panel including City staff andcommunity representatives. Following negotiations with the recommended proposer,business terms will be presented to the DAEI Subcommittee for review andrecommendation, and then to the full City Council for approval.

The RFP will ensure that existing transit is not negatively impacted and that efficientcirculation for modes of transportation on adjacent and nearby streets is maintained.The RFP will also address needed expansion of the Public Transit facility, with largerspace to accommodate ticket sales, customer service, security, and other needs.

Concurrence/Previous Council ActionThis item is scheduled to be heard at the March 29, 2018 Citizens TransportationCommission (CTC) meeting. The CTC action will be reported to the Subcommitteeprior to the DAEI Subcommittee meeting on April 4, 2018.

An informational report on this item will be included in the April 18, 2018 Transportationand Infrastructure Subcommittee packet.

Location300 N. Central Ave.Council District: 7

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Responsible DepartmentThis item is submitted by Deputy City Managers Deanna Jonovich and MarioPaniagua, and the Community and Economic Development and Public Transitdepartments.

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City Council Report


Request Authorization to Enter Development Agreement for Disposition of City-Owned Parcel at 1701 W. Camelback Road

This report requests the Downtown, Aviation, Economy and Innovation Subcommitteerecommend City Council authorization to enter into a development agreement, andother agreements as necessary, (collectively, the "Agreements") with Unified CapitalPartners, LLC ("Developer") for the sale and development of a City-owned parcellocated at 1701 W. Camelback Road. Further request authorization to accept all fundsrelated to this item. The Developer will pay a purchase price of $110,000 for the site,with a projected total project value of $66.3 million.


SummaryThe Developer submitted its proposal in response to the Community and EconomicDevelopment Department ("CEDD") Request for Proposals ("RFP") for the dispositionand redevelopment of the City-owned vacant parcel in the Solano ReinventPHXDistrict, comprising approximately 9,800 square feet, or 0.23 acres, at 1701 W.Camelback Road (the "Site"). The Site was purchased by the City in July 2004 withFederal Transit Administration ("FTA") grant funds.

The Developer proposes a mixed-use, transit-oriented development to includeapproximately 330 residential units, commercial areas, and 417 parking spaces in aneight story building (the "Project"). The Project will include the Site and surrounding,adjacent land controlled by the Developer. Project value is projected to be $66.3million.

The Developer will pay a purchase price of $110,000 for the site, which is above theMay 17, 2017, appraised value of $90,000. A Letter of Intent ("LOI") was signed onFeb. 14, 2018. The Agreements are to be executed within six months of the LOI. TheDeveloper will design and complete construction within 10 years of the execution ofthe Agreements.

Procurement InformationIn July 2017, CEDD issued an RFP for the sale and development of 1701 W.

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Camelback Road. The RFP was open for eight weeks. One proposal was received,which was from Unified Capital Partners, LLC and staff verified the proposal wasresponsive to the RFP requirements.

Prior to executing the Agreements, staff will secure necessary approvals from the FTA.

Contract TermThe total term of the Agreements is 10 years.

Financial ImpactThe sale of the Site will place this approximately 9,800 square foot corner in privatecontrol with the owner of the surrounding property. The total Project value is estimatedby the Developer to be $66.3 million, creating 715 construction jobs and 44 permanentjobs. Proceeds from the sale of the property will be distributed to the Phoenix PublicTransit Fund. There will be no impact to the General Fund as a result of the sale of thisproperty.

Public OutreachA public meeting with neighborhood group representatives was held on Feb. 8, 2018.

Location1701 W. Camelback Road.Council District: 4

Responsible DepartmentThis item is submitted by Deputy City Managers Deanna Jonovich and MarioPaniagua, and the Community and Economic Development and Public Transitdepartments.

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City Council Report


Phoenix Sister Cities International Membership

This report requests the Downtown, Aviation, Economy and Innovation Subcommittee recommend City Council approval for the annual Phoenix Sister Cities membership. The annual membership fee is $35,000.


SummaryPhoenix Sister Cities (PSC) is responsible for delivering youth and education services as well as international protocol services in support of the City of Phoenix Sister Cities Program. PSC places a strong emphasis on economic development, cultural, and education programs and works cooperatively with the Aviation Department to promote Phoenix and Arizona in markets where there is interest in developing international economic and air service opportunities. PSC is an established 501 (c)(3) and the annual Phoenix Sister Cities membership allows the Aviation Department to participate in the Mayor's International Gala and Global Links Business Outlook Luncheon and Sister City delegation visits. These events provide the City the opportunity to promote the Airport and air service development as well as strengthen ties with the business community and international Sister City delegations.

Contract TermAnnual Membership.

Financial ImpactThe annual membership fee is $35,000 for July 1, 2017 to June 30, 2018.

LocationPhoenix Sky Harbor International Airport, 3400 Sky Harbor Blvd; Phoenix Deer Valley Airport, 702 W. Deer Valley Road; and Phoenix Goodyear Airport is located at 1658 S. Litchfield Road, Goodyear, Ariz.Council Districts: 1, 8, Out of City.

Responsible DepartmentThis item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.

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City Council Report


Northwest Industrial Airpark Through-The-Fence Agreement

This report requests the Downtown, Aviation, Economy and Innovation Subcommitteerecommend City Council authorization to amend the agreement between the City ofPhoenix and Northwest Industrial Airpark Association (NWIAA), to extend the through-the-fence agreement for a total of 30 years from the date the agreement is signed. Theanticipated annual revenue for this amended agreement will be approximately $5,900.


SummaryNWIAA currently has a through-the-fence agreement at Deer Valley Airport (DVT). Thecurrent agreement term is 20 years, with four, five-year options to extend. NWIAA iscurrently in their third option, which will expire on June 30, 2021. The currentagreement allows tenants of NWIAA, who own aircraft and have entered into a FieldUse Permit (FUP), to taxi from NWIAA, located at 1507 W. Parkside Lane, "through-the-fence" to the DVT property and back. This allows the aircraft owners to utilize thetaxiways and runways to take off and land at DVT.

Currently NWIAA pays a $200 annual utility easement fee. NWIAA has requestedadditional agreement term in order to make an investment in the taxiway located ontheir property. In exchange for this extension, NWIAA will pay the City an access feefor all based aircraft that utilize the gate; the fee will be based on the average tie downfee charged to tenants at DVT and adjusted annually by the Consumer Price Index(CPI). The updated agreement will include requirements from the Federal AviationAdministration (FAA) to ensure grant assurance compliance. The amendment will alsoinclude updated standard agreement language.

Contract TermThe contract term shall be 30 years, from the date the agreement is signed, with nooptions to extend.

Financial ImpactThe anticipated annual revenue for this amended agreement will be approximately$5,900. The annual revenue is subject to change, based on the number of aircraft that

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are based at NWIAA.

Concurrence/Previous Council ActionThis item was recommended by the Phoenix Aviation Advisory Board by a vote of 8-0on Thursday, March 15, 2018.

LocationPhoenix Deer Valley Airport, 732 W. Deer Valley RoadCouncil District: 1

Responsible DepartmentThis item is submitted by Deputy City Manager Deanna Jonovich and the AviationDepartment.

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City Council Report


Airspace Analysis Services

This report requests the Downtown, Aviation, Economy and Innovation Subcommitteerecommend City Council approval to issue a Request for Proposal for AirspaceAnalysis Services. The City estimates a possible initial customization and startup feeof up to $80,000 and an annual maintenance and licensing fee thereafter of up to$20,000.


SummaryPlanning staff requires the use of specialized software to analyze potential hazardsand obstructions on and in the vicinity of the City of Phoenix’s three airports. Thecurrent software agreement expires in November 2018.

After possible initial customization and startup costs, it is anticipated that the softwarewill incur a maintenance and licensing fee of up to $20,000 annually. Future updates tothe software may be tied to Federal Aviation Administration (FAA) grant projects andfunding.

This item has been reviewed and approved by the Information Technology ServicesDepartment.

Procurement InformationWith approval, the Aviation Department will conduct a Request for Proposal to select avendor for this contract. Responsive and responsible respondents will be evaluatedaccording to the following evaluation criteria; and the highest ranked respondent willbe recommended for the award:

· Software Capabilities (0-400 points).

· Plan and Approach (0-250 points).

· Company Qualifications and Experience of Proposer (0-200 points).

· Fee Schedule (0-150 points).

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Contract TermThis contract will have a term of five years, with no options to renew.

Financial ImpactThe City estimates a possible initial customization and startup fee of up to $80,000 andan annual maintenance and licensing fee thereafter of up to $20,000.

Public OutreachWith approval, the Aviation Department will issue a Request for Proposal to select avendor for this contract. This process will include all standard and required outreachefforts.

LocationPhoenix Sky Harbor International Airport, 3400 Sky Harbor Blvd; Phoenix Deer ValleyAirport, 702 W. Deer Valley Road; and Phoenix Goodyear Airport is located at 1658 S.Litchfield Road, Goodyear, Ariz.Council Districts: 1, 8, Out of City.


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City Council Report


Request to Issue Request for Proposals for Environmental RemediationServices

This report requests the Downtown, Aviation, Economy and Innovation Subcommitteerecommend City Council approval to issue a Request for Proposal for EnvironmentalRemediation Services. The aggregate amount over the life of the contract will notexceed $250,000. Honeywell International, Inc., will reimburse City for these costs.


SummaryIn 2008, the City entered into an agreement with Honeywell International, Inc.(Agreement 124536). The agreement sets forth requirements for HoneywellInternational, Inc. to conduct remediation of fuel Honeywell released on and beneathCity property. Environmental staff requires support from an expert level remediationconsultant to analyze remediation reports, identify issues of concern to the City, adviseCity on remediation progress, and make recommendations to City as remediationnears completion. Honeywell International, Inc. will reimburse City for these costs perthe Agreement.

Procurement InformationThe proposal evaluation criteria with the corresponding points (up to 1,000 points areavailable) is as follows:

· Company Qualifications and Experience of Proposer (0-200 points).

· Key Personnel Qualifications and Experience (0-250 points).

· Plan and Approach (0-400 points).

· Fee Schedule (0-150 points).

Contract TermThis contract will have a term of five years, with no options to renew.

Financial ImpactThe City estimates fees up to $50,000 annually. Honeywell International, Inc. willreimburse City for these costs per Agreement 124536.

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Concurrence/Previous Council ActionThe Business Development Subcommittee recommended on March 1 the PhoenixAviation Advisory Board review this item on March 15 for recommendation to theDowntown, Aviation, Economy and Innovation Subcommittee.

Public OutreachWith approval, the Aviation Department will conduct a Request for Proposal to select avendor for this contract. This process will include all standard and required outreachefforts.

LocationPhoenix Sky Harbor International Airport, 3400 Sky Harbor Blvd.Council District: 8


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City Council Report


Authorization to Enter into a Contract with AV Concepts, Inc.

This report requests the Downtown, Aviation, Economy and Innovation Subcommitteerecommend City Council approval to enter into a five-year contract with AV Concepts,Inc. for services at the Phoenix Convention Center. This is a revenue-generatingcontract and is anticipated to result in approximately $4.5 million dollars in revenueover the life of the contract.


SummaryAuthorization to enter into a contract with AV Concepts, Inc. for Non-Exclusive Audio-Visual Services, Equipment Rental & Exclusive Rigging Services for the PhoenixConvention Center Department (PCCD).

Procurement InformationOn Dec. 29, 2017, PCCD issued a Request for Proposals (RFP) to award a five-yearcontract for Non-Exclusive Audio-Visual Services, Equipment Rental & ExclusiveRigging Services at the Phoenix Convention Center (theater venues excluded). Theprocurement was conducted in accordance with Administrative Regulation 3.10. TheRFP was posted on the City of Phoenix website and advertised in the ArizonaBusiness Gazette, Arizona Informant, Prensa Hispana, the Record Reporter, and theInternational Association of Venue Managers (IAVM) weekly electronic publication,VenueNet.

Proposal submittals were to be evaluated on Proposed Commission Structure,Operational Plan, Firm History and Experience, Equipment Inventory and Quantities,Financial Strength, and Customer Service Initiatives - totaling 1,000 points. There werethree firms in attendance at the mandatory pre-proposal conference with one firmsubmitting a proposal. The evaluation panel scored the proposal and awarded thecontract to AV Concepts, Inc. Proposer #1 - 890 points (out of possible 1,000 points).

Contract TermThe term of this contract will be for five years covering July 1, 2018, through June 30,2023.

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Financial ImpactThis is a revenue-generating contract and is anticipated to result in approximately $4.5million dollars in revenue over the life of the contract.

LocationCouncil District(s): 7, 8

Responsible DepartmentThis item is submitted by Assistant City Manager, Milton Dohoney, Jr., and the PhoenixConvention Center Department.

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City Council Report


Authorization to Compete an Unsolicited Development Proposal for Three City-Owned Properties along 3rd Street

This report requests the Downtown, Aviation, Economy and Innovation Subcommitteerecommend City Council authorization to compete an unsolicited developmentproposal for three City-owned properties along 3rd Street.

THIS ITEM IS FOR DISCUSSION AND POSSIBLE ACTION.

SummaryOn Dec. 13, 2017, the Phoenix City Council authorized the City Manager to implementa policy to allow developers to submit unsolicited proposals for City-owned parcels forwhich the City has not announced its intention to issue a solicitation. The City'sUnsolicited Development Proposal Policy, procedure, and submittal instructions havebeen posted on the City's website at www.phoenix.gov/econdev.

When an unsolicited development proposal is received, City staff will conduct duediligence research and present the proposal concept and research to the applicableCity Council Subcommittee and a full formal City Council meeting. If directed by CityCouncil to compete an unsolicited development proposal, staff will follow theUnsolicited Development Proposal procedure to conduct a competitive, transparentprocess.

On Dec. 20, 2017, the City received an unsolicited development proposal for fiveunique properties along 3rd Street, generally located between Van Buren andJefferson streets, including the Sheraton Grand Hotel, undeveloped land east andsouth of the Herberger Theater Center, 3rd Street between the Phoenix ConventionCenter (PCC) West and North Buildings, the PCC South Building, and the Talking StickResort Arena. The proposal included review fees for three properties ($22,500) andthe proposal's owner subsequently clarified its intent to propose on the undevelopedland east and south of the Herberger Theater Center, 3rd Street between the PCCWest and North Buildings, and the PCC South Building.

The City's Solicitation Transparency Policy, which was triggered when the proposalwas submitted, applies to Hines Interests, LP and all its partners and representatives,

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including HOK Architects, Mr. Chris Anderson, and Mr. Steve Betts.

Overview of ProposalThe unsolicited development proposal seeks to activate the 3rd Street corridorbetween Van Buren and Jefferson streets into a "pedestrian friendly experience" withthe following intended uses:· Undeveloped land east and south of the Herberger Theater Center - mixed-use

residential and potential facilities for the Latino Cultural Center and Valley YouthTheatre.

· 3rd Street between PCC West and North Buildings - narrowing of 3rd Street to allowfor commercial activation and pedestrian activity.

· PCC South Building - redevelopment of site: mixed-use high rises with office andemployment uses, residential, ground floor commercial space, arts and culturalamenities, open space, and other urban uses.

Due Diligence ResearchPursuant to the City Council-authorized unsolicited development proposal process,staff reviewed the unsolicited development proposal submitted by Hines to determinecompliance with the Unsolicited Development Proposal Submittal Instructions, orderedappraisals, and researched possible restrictions that might limit the City's options fordisposing of and/or developing the properties listed in the proposal.

AppraisalsThe undeveloped land east and south of the Herberger Theater Center was appraisedat $2,660,000 as of Nov. 12, 2017.

The PCC South Building was appraised at $37,000,000 as of Feb. 16, 2018.

Third Street between the PCC West and North Buildings also serves as the roof of thePCC lower level exhibit halls. The property is part of a single plat and its ownershipmust be retained by the City. Ground lease rates for the property range between $5.00and $6.25 per square foot depending on the lease location.

Herberger Theater CenterThe City contracts with the Phoenix Performing Arts Center, Inc. (PPAC) for operationof the Herberger Theater Center. The operating agreement, executed in 1987, has a60-year term, with one 60-year renewal option. Under the terms of the agreement, theCity's obligations include utilities, security, janitorial, maintenance, and repairs of thefacility. The undeveloped City-owned land to the east and south of the HerbergerTheater Center is not encumbered in the City's contractual obligations to PPAC;

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however, access to the theater and the ticket office is generally through the south sideof the building and there is an emergency egress ramp on the east side of the theater.

Third StreetThird Street is controlled by the PCC and is used for a wide-range of convention centeractivities including event queueing, security "clean zones," taxi and ride share zones,and motor coach shuttle operations. Additionally, 3rd Street includes approximately90,000 square feet (SF) of rentable outdoor event and exhibition space, which hasbecome a highly-desirable option for convention center clients to utilize as a uniqueand creative space. In 2017, the street was fully or partially closed for 66 days for PCCrelated activities. Additionally, the PCC's exclusive food and beverage catering contractextends to 3rd Street between the PCC West and North Buildings.

Third Street is a primary pedestrian and bicycle corridor through downtown Phoenixand also provides two-way vehicular traffic. This use is consistent with the DowntownComprehensive Transportation Plan, the Complete Streets Program, and the BicycleMaster Plan.

PCC South BuildingThe PCC South Building has 143,400 SF of rentable exhibition, meeting and ballroomspace and is used primarily for consumer shows and local meetings/banquets. TheSouth Building is utilized an average of 218 days to host 86 events annually. Theaverage attendance is 172,000 each year. In addition, the South Building generatesapproximately $2 Million in direct revenues to the PCC enterprise fund.

Future PCC ExpansionThe PCC Expansion Master Plan developed in 2002 identified the PCC South Buildingsite as the location for future expansion. In 2017, staff conducted a preliminaryengineering analysis on options to accommodate future expansion needs within amixed-use development on the PCC South Building site. Elimination of the currentPCC South Building without viable replacement or expansion options will limitopportunities to significantly grow or retain convention and tradeshow bookings.

Procurement InformationShould the City Council direct staff to compete the unsolicited proposal for theundeveloped land adjacent to the Herberger Theater Center, 3rd Street between thePCC West and North Buildings, and the PCC South Building site, staff will follow theUnsolicited Development Proposal procedure and recommends the followingconditions be addressed as part of any competitive bid process.

The successful development should:

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1. Adhere to the Downtown Code Zoning District in creating an appropriately dense,infill project that capitalizes on these prominent urban locations and providing a mix ofcompatible and complementary land uses that facilitate urban living such as office,hotel, retail, restaurant, residential, and/or civic space.

2. Create enhanced pedestrian-oriented amenities and ground floor activation along3rd, Jefferson, and Washington streets. Proposed development should feature aproportionate amount of public open space to expand "The Connected Oasis"described in the Downtown Phoenix Urban Form Project - 2008.

3. Incorporate elements of the City Council-approved Downtown Phoenix: A StrategicVision and Blue Print for the Future (Downtown Strategic Plan) and Progress Update,and all other adopted plans, including the Downtown Comprehensive TransportationPlan, the Complete Streets Program, the Bicycle Master Plan, the Tree and ShadeMaster Plan, and the Accessibility Requirements for Residential OccupanciesGuideline.

4. Incorporate elements of sustainability into its design, construction, andmaintenance.

5. Not adversely affect the Herberger Theater Center's operations.

6. Include a concept to provide new space for a Latino Cultural Center and ValleyYouth Theatre.

7. Maintain PCC's current functional operations and use of 3rd Street. Any proposedchanges to 3rd Street must allow pedestrian, bicycle, and vehicular traffic.

8. Provide an option on the PCC South Building site that accommodates the long-termfacility needs of the PCC. Proposers should include a development concept thatincorporates a minimum of 200,000 SF of net rentable exhibit/meeting space that canbe developed in the future at the City's option.

Each proposer will be required to identify its Lead Developer and each Lead Developermust have verifiable experience developing to completion at least one mixed-usedevelopment project valued at $100 million or more. Proposals will be due 90 daysafter the unsolicited development proposal and proposer instructions are posted forcompetition. Each proposer must submit a proposal guarantee of $150,000 with itsproposal.

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A diverse panel of City staff and community representatives will evaluate responsiveproposals with the following criteria:· Concept to Activate the Sites (0-300 points).

· Consistency with Adopted City Plans and Ordinances (0-175 points).

· Proposed Team's Financial Capacity (0-175 points).

· Proposed Team's Qualifications and Experience (0-175 points).

· Return to the City (0-175 points)

Upon completion of staff evaluation, recommendation will be brought to thesubcommittee and City Council for review and approval.

Financial ImpactThe Review Fees received with this proposal are being used to conduct the necessarydue diligence, including appraisals.

Public OutreachStaff presented a general overview of the unsolicited development proposal at aspecial community meeting on March 28, 2018 to which downtown communitystakeholders were invited. Feedback from this meeting will be presented at thesubcommittee meeting.

LocationThese parcels are located on the east and west sides of 3rd Street between Van Burenand Jefferson streets.Council Districts: 7, 8.

Responsible DepartmentThis item is submitted by Assistant City Manager Milton Dohoney Jr., Deputy CityManager Deanna Jonovich, the Community and Economic Development Departmentand the Phoenix Convention Center.

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City Council Report


2018 Phoenix Building Construction Code Adoption

This report provides information to the Downtown, Aviation, Economy and InnovationSubcommittee on the proposed 2018 Phoenix Building Construction Code (PBCC), asamended, that was approved by the Development Advisory Board (DAB).


SummaryThe Phoenix Building Construction Code establishes minimum requirements tosafeguard the public health, safety and general welfare through building standards forconstruction in Phoenix. The Planning and Development Department (PDD)periodically reviews and adopts new construction codes to ensure developmentstandards are up to date and reflect current trends, safety advances, new materials,and accessibility requirements. Additionally, the adoption and use of current buildingcodes is a significant component of the City's Insurance Services Office (ISO) ratingwhich is used to set property insurance rates.

Building code adoption in the City of Phoenix is an involved public process. PDD usesa five-step code adoption process for review and adoption of new codes that isconsistent with City Council Resolution 19015. This five- step process involves staffreview, DAB subcommittee review, full DAB approval, City Council subcommitteereview, and ultimately City Council adoption (Attachment A). There is publicstakeholder input solicited throughout the process.

The codes are national standards; therefore code amendments generally consist ofalterations to the code to accommodate local conditions and practices. For instance,the City of Phoenix always amends the codes to require minimum air conditioningwhich is a life safety issue particular to the desert southwest. PDD staff proposed anumber of amendments consistent with the past code adoption. Newly proposedamendments center on providing flexibility to the solar industry, sustainability,preservation/remodel of historic structures, and offering alternative design options tothe development community.

The Phoenix Building Construction Code (PBCC) is comprised of a group of codes

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from the International Code Council (ICC) including the International Plumbing Code(IPC), as well as the National Electrical Code (NEC), the Uniform Plumbing Code(UPC), an optional International Green Construction Code (IGCC) and safety codes forelevators, escalator, and lifts. Together these code establish the constructionrequirements for development in the City of Phoenix. PDD is requesting the adoptionof both the IPC and UPC to provide consistency for those who have developed underthe UPC for decades while allowing a less prescriptive method for customersinterested in flexibility and value engineering through the IPC.

Previously, the PBCC was governed by a separate document entitled the PBCCAdministrative Provisions (PBCCAP). These administrative provisions establish therequirements for plan review, permitting, and code enforcement. This separatedocument was published, copyrighted, and sold by ICC, which required designprofessionals and city staff to purchase copies. In the current code adoption process,the Administrative Provisions will be included as amendments to Chapter 1 of theInternational Building Code and will not require the purchase of an additional bookfrom ICC. These and all other City amendments will be available for reference on thePDD webpage at:

https://www.phoenix.gov/pdd/devcode/buildingcode

The following codes comprise the 2018 PBCC update:

· 2018 International Building Code (IBC).

· 2018 International Residential Building Code (IRC).2018 International MechanicalCode (IMC).

· 2018 International Fuel Gas Code (IFGC).

· 2018 International Energy Conservation Code (IECC).

· 2018 International Existing Building Code (IEBC).

· 2018 International Swimming Pool and Spa Code (ISPSC).

· 2018 International Plumbing Code (IPC).

· 2018 Uniform Plumbing Code (UPC).

· 2017 National Electrical Code (NEC).

· 2016 ASME 17.1, Safety Code for Elevators and Escalators.

· 2015 ASME A17.3, Existing Elevators and Escalators.

· 2014 ASME A18.1, Platform Lifts and Stairway Chairlifts.

· 2010 ASME A17.6, Elevator Suspension, Compensation and Governor Systems.

· 2007 ASME A17.7, Performance Code for Elevators and Escalators.

· 2012 International Green Construction Code (IGCC) (optional).

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The eight International Codes establish the structural, mechanical, plumbing, fire andlife safety, energy, accessibility, green, and performance provisions for both residentialand commercial structures. Five of the proposed codes provide the requirements forelevators, escalators and lifts. The electrical and alternate plumbing provisions arecontained in two additional codes. All of these codes are tied together with the PhoenixBuilding Construction Code, Administrative Provisions. The 2012 International GreenConstruction Code has not yet been updated, so staff proposes to readopt the 2012 tokeep offering that code as an option.

The proposed 2018 Phoenix Building Construction Codes is scheduled to return to thisSubcommittee agenda the May 2, 2018 for discussion and potential action.

Concurrence/Previous Council ActionThe DAB approved adoption of the 2018 Phoenix Building Construction Code asamended by this Ordinance at three public hearings held by the DAB on Jan. 16, Feb.18, and March 15, 2018.

Responsible DepartmentThis item is submitted by Deputy City Manager Mario Paniagua and the Planning andDevelopment Department.

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Atta

chm

ent A

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Attachment B

SUMMARY OF 2018 PHOENIX BUILDING CONSTRUCTION CODE UPDATES

Staff strived to reduce the number of amendments to the base code. Several 2012 City of Phoenix amendments were imbedded in the 2018 code. The amendments that were carried forward and new ones were vetted through a steering committee, either the Development Advisory Board Technical Subcommittee or Advisory Subcommittee as well as the full Development Advisory Board.

In addition, staff outreached to the public and multiple stakeholders through a variety of mediums, including email notice, phone, posting information on the department website and including the information on a variety of meeting agendas involved in development and infrastructure. Staff representatives from PDD, Fire, Water Services, Street Transportation, Neighborhood Services, Community and Economic Development Departments and the Historic Preservation Commission were included in the discussion and development of the amendments.

The Implementation plan allows for flexibility to accommodate the needs of development and workload management for staff. Applicants will be allowed to choose between the 2012 codes or the 2018 codes between July and the end of August 2018. After September 1, 2018 all new building construction plans must use the 2018 Phoenix Building Construction Codes. Standard plans will have until the end of June 2019 to update their plans to the new code.

Code amendments can be viewed at https://www.phoenix.gov/pdd/devcode/buildingcode

Code Update and Amendment Highlights2018 International Building Code® (IBC®)

Includes more design options for solar structures and components Extended travel distances in warehouse and fabrication facilities Adds adobe design in masonry Reduced Wind design for minor structures Provides an alternative to soils report requirements for small projects

2018 International Residential Code® for One- and Two-Family Dwellings (IRC®) Allow alternative energy efficiency designs (prescriptive and performance) Cooling required (IRC only sets heat levels) Doors and windows between house and carports protect from carbon monoxide concern

2018 International Plumbing Code® (IPC®) and the Uniform Plumbing Code (UPC) Both the 2018 IPC and the 2018 UPC will be adopted – allows options for projects Installation of low slope sewers for sites where a lift station is impractical Allows for water dispensers in lieu of drinking fountains

2018 International Mechanical Code® (IMC®) CO2 requirements added in response to Fire Department safety concerns Odor control for medical marijuana facilities to align with Zoning Ordinance Motor vehicle repair garages venting and exhaust to protect from carbon monoxide gas

2018 International Fuel Gas Code® (IFGC®) A new Section was added to recognize arc-resistant CSST products

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2018 International Energy Conservation Code® (IECC®) Allows commissioning as an option to verify compliance with energy efficiency Performance design allows the design engineer to specify the design temperature

ranges Multifamily projects can choose between Residential Energy Code and Commercial

Energy Code (regardless of height)

2018 International Existing Building Code® (IEBC®) Single reference to Phoenix Fire Code – eliminates conflicts and provides clarity

2018 International Swimming Pool and Spa Code® (ISPSC®) New Code for Phoenix: Currently following the City Code requirements adopted May 4, 1990 Includes additional options for pool safety: fence barrier, audible alarm system, latch

height limitations, self-closing doors and pool covers but maintains barrier provisions passed by council May 4, 1990

2017 National Electric Code (NEC) Additional life safety measures for damp locations to protect from shock Branch circuits – ground-fault circuit-interrupter protection Grounding and bonding – types of equipment grounding conductors

Elevators, Escalators, Platform Lifts and Chairlifts (ASME: 2010, 2012, 2014 and 2015) Safeguards the design and products for performance based elevators and escalators Includes standards for new technology and updated standards for existing systems

2012 International Green Construction Code (IGCC) Continue to keep the adopted Green Construction Code as approved previously ICC has not yet updated the IGCC to the 2018

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City Council Report


FAA Flight Path Update

This report provides an update to the Downtown, Aviation, Economy and InnovationSubcommittee on progress made by the Aviation Department in addressing noiseissues created by the Federal Aviation Administration’s (FAA) implementation of newflight paths at Phoenix Sky Harbor International Airport.


SummaryOn Sept. 18, 2014, the FAA implemented new flight paths without any process forpublic input. The new flight paths caused significant hardship to communities under theflight paths due to aircraft noise. In April 2015, at the direction of the City Council, theAviation Department adopted a strategy to advocate on behalf of the community.

This monthly flight path update specifically recognizes the efforts of the City Council,our federal delegation, and community advocates over the three-year period since theFAA’s implementation of new flight paths.

Community OutreachAviation Department staff continues to attend community meetings and is available todiscuss noise issues with any group. Workshops can be held at any time to exchangeinformation, if residents desire. All information is posted online to keep residentsinformed of all activity.

Legislation/LobbyingAviation Department staff is in frequent contact with Holland & Knight, the City’sfederal public affairs consultant in Washington, D.C., which is continuing to provideinformation to help enable legislation and keeping the City updated on the proceedingsin Washington, D.C.

LitigationThe City and Historic Neighborhoods negotiated an agreement with the FAA and fileda joint petition on Nov. 30, 2017. The FAA held three community meetings in Februaryand received public comments; approximately 400 residents attended the meetings

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and 1,100 comments were submitted. The FAA has been working with Tribal Agenciesto ensure Historic Property consultation is properly completed however theconsultation is unlikely to be completed in time for FAA to implement the southwestroute changes by April 1. The FAA now expects to implement that route by May 24.The FAA has already issued a finding of no adverse effect for the west and northwestroutes and expects to implement those routes by April 1. The FAA project websiteaddress https://www.faa.gov/nextgen/nextgen_near_you/community_involvement/phx/.


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