Apr. 28 WED Subcommittee Minutes - Draft (Approved by BRD).pdf

Phoenix City Council 
Workforce and Economic Development Subcommittee 
Summary Minutes 
Wednesday, Apr. 28, 2021 
City Council Chambers 
200 W. Jefferson St. 
Phoenix, Ariz. 
Subcommittee Members Present     
 Subcommittee Members Absent 
Councilwoman Laura Pastor, Chair 
Councilwoman Debra Stark 
Councilman Jim Waring 
CALL TO ORDER 
Chairwoman Pastor called the Workforce and Economic Development Subcommittee to 
order at 10:07 a.m. with Councilwoman Stark and Councilman Waring present.  
CALL TO THE PUBLIC 
None. 
MINUTES OF MEETINGS 
1. Minutes of the Workforce and Economic Development Subcommittee Meeting
Councilwoman Stark made a motion to approve the minutes of the March 24, 2021
Workforce and Economic Development Subcommittee meeting. Councilman Waring
seconded the motion, which passed unanimously, 3-0.
CONSENT ACTION (ITEMS 2-3) 
Items 2-3 were for consent action. No presentations were planned but staff was 
available to answer questions.  
Councilwoman Stark made a motion to approve consent items 2-3. Councilman Waring 
seconded the motion, which passed unanimously, 3-0. 
2. Three-Year Agreement with Phoenix Sister Cities, Inc.
3. Greater Phoenix Economic Council Annual Contract
DISCUSSION AND POSSIBLE ACTION (ITEMS 4-6) 
4. Phoenix Convention Center Service Provider Relief - Consideration of Contract
Term Extensions
ATTACHMENT A

Interim Deputy City Manager John Chan introduced Interim Convention Center Director 
Jerry Harper and Deputy Convention Center Director Robby Ashton to present on the 
item. 
 
Mr. Harper began by providing an overview of COVID-19 impacts on the Phoenix 
Convention Center (PCC), including the cancellation of 79 citywide conventions and 168 
non-convention and theater events. He explained there had been significant losses of 
$13 million in facility rentals and parking revenue and $22.6 million in service partner 
commissions for catering, audio visual services, utilities and event security, totaling 
$35.6 million in top-line revenue lost from March 2020 through June 2021.  
 
Mr. Harper provided an overview of the service partners contracted for events and 
serving as an extension of the PCC, including Aventura Catering, Smart City Networks, 
Commonwealth Electric, AV Concepts, and Contemporary Services Corporation. He 
explained clients would expect to receive the same level of service from staff as well as 
these service providers.  
 
Mr. Harper explained the service provider contracts required the companies to invest 
approximately $16.2 million into the center. He provided examples of these investments, 
such as rebranded concessions, the construction of Huss Brewpub on Monroe Street, 
and upgrades to the PCC distributed antenna system to provide visitors with enhanced 
5G connectivity.   
 
Mr. Ashton reiterated the significant loss in revenue experienced by these service 
partners. He explained the partnerships with contracted service providers were 
commission-based, with generated revenue belonging to the provider and commission 
paid to the Convention Center.  
 
Mr. Ashton requested subcommittee approval of a two-year extension to five PCC 
service provider contracts to allow them additional time to realize return on their capital 
investments at no additional cost to the city.  
 
Chairwoman Pastor opened the floor for public comment. 
 
Danielle Lazor, representing food and beverage provider Aventura, expressed support 
for the item. She described the company’s commitment to the Convention Center and 
discussed their $6.5 million investment to improve the facility and construct Huss 
Brewpub. She added that the proposed action would allow additional time to recoup a 
minimum return on their investment.  
 
Dan Shannon, representing utility services provider Commonwealth Electric, expressed 
support for the item. He discussed the impacts of the COVID-19 pandemic, including 
significant revenue losses, and expressed gratitude for the subcommittee’s 
consideration.

Councilwoman Stark expressed her support for the service provider partnerships and 
excitement for the development of Huss Brewpub.  
 
Chairwoman Pastor requested details on the contractors’ plans to bring employees back 
to the Phoenix Convention Center.  
 
Mr. Chan indicated Aventura had the largest number of employees and requested Ms. 
Lazor respond to the Chairwoman’s question. 
 
Ms. Lazor explained that employees would be recalled to the workplace in order of 
seniority once scheduled events began in June 2021. She added that Unite Here Local 
11 established a long-term agreement to represent these employees and stated the 
company maintained frequent contact with employees throughout the pandemic.  
 
Councilwoman Stark made a motion to approve staff’s recommendation. Councilman 
Waring seconded the motion, which passed unanimously, 3-0. 
5. Development Agreement with Laveen Baseline LLC for Installation of Public 
Infrastructure Improvements 
Interim Deputy City Manager John Chan introduced Community and Economic 
Development (CED) Director Christine Mackay to present on the item.  
 
Ms. Mackay began by describing the need for commercial development in the Laveen 
area and introduced CED Project Manager Karla Scott to assist with the presentation.  
 
Ms. Scott provided an overview of the Laveen Park Place lifestyle center, owned by 
Laveen Baseline LLC, which would be developed across 65 acres on the southeast 
corner of the Loop 202 Ed Pastor Freeway and Baseline Road. She described the 
phased approach to the development, which included a 50,000-square foot lifestyle 
center in the initial phase, and an entertainment complex in the next phase, anchored 
by Harkins Theatres.  
 
Ms. Scott outlined the public infrastructure improvements required for the development, 
specifically half street construction of 59th Avenue from Baseline Road to north of South 
Mountain Avenue. 
 
Ms. Scott discussed the proposed terms of the development agreement, including 
construction of the half street of 59th Avenue, compliance with Arizona Revised Statute 
(A.R.S.) Title 34 on Public Buildings and Improvements, and completion of the lifestyle 
center. She explained the maximum reimbursement would be $2.5 million, with an 
annual reimbursement of $250,000. She added that reimbursement would not 
commence until infrastructure improvements were completed.  
 
Ms. Mackay noted that 59th Avenue had been represented on the City of Phoenix 
Street Classification Map. She requested the subcommittee recommend City Council 
approval to negotiate and enter into a development agreement, and any other 
agreements as necessary, with Laveen Baseline LLC, or its City-approved designee, for

the installation of public infrastructure improvements located along 59th Avenue from 
Baseline Road to north of the future South Mountain Avenue alignment. 
 
Councilwoman Stark asked if the developer would be going above and beyond their 
typical services by doing construction along 59th Avenue.  
 
Ms. Mackay confirmed that this project would require them to go above and beyond to 
making improvements to 59th Avenue. 
 
Councilman Waring asked if it would be fair to say the developer would be paid to 
accelerate improvements the city would have done on its own. He noted the project 
would be a public benefit and would not subsidize the developer.  
 
Ms. Mackay affirmed his characterization of the project and explained that the developer 
would comply with A.R.S Title 34.  
 
Chairwoman Pastor emphasized the benefit of the project for residents and asked if the 
project would take the full 10 years.  
 
Ms. Mackay stated the developer’s intention was to accelerate the project, with a cost of 
$250,000 each year.  
 
Councilwoman Stark made a motion to approve staff’s recommendation. Councilman 
Waring seconded the motion, which passed unanimously, 3-0. 
6. One-Stop Operator Services Request for Proposals Contract Award 
Interim Deputy City Manager John Chan introduced Community and Economic 
Development (CED) Director Christine Mackay to present on the item.  
 
Ms. Mackay began by sharing the history of one-stop operator services in Phoenix and 
introduced CED Workforce Program Manager LaSetta Hogans and CED Procurement 
Manager Gretchen Wolfe to assist with the presentation. 
 
Ms. Hogans provided an overview of one-stop operator services, including direct 
services at three comprehensive job centers throughout the city and affiliate locations in 
public housing sites.  
 
Ms. Wolfe discussed the procurement timeline, marketing efforts, and the proposal 
evaluation criteria that had previously been approved by the subcommittee and City 
Council. She explained that five proposals had been submitted, of which four proposals 
were deemed responsive, and stated the recommended proposer was Equus Workforce 
Solutions.   
 
Ms. Hogans shared that Equus Workforce Solutions had an extensive background in 
workforce development, including administration of one-stop operator services across 
15 states, youth services for Maricopa County, and their current function as the one-
stop operator for Yuma County.

Ms. Mackay explained the contract would have a term of 13 months, with three one-
year options, which represented $3.1 million if all options were exercised. She 
emphasized that this agreement would be completely funded by the department’s 
Workforce Innovation and Opportunity Act (WIOA) grant from the U.S. Department of 
Labor.  
 
Ms. Mackay requested the subcommittee recommend City Council approval to award a 
contract to Arbor E&T, LLC doing business as Equus Workforce Solutions to provide 
One-Stop Operator Services.  
 
Chairwoman Pastor asked if WIOA funding could be used for this service.  
 
Ms. Mackay confirmed that one-stop operator services represented one of the intended 
uses of WIOA funds.  
 
Councilwoman Stark recalled a tour of the Sunnyslope facility and commended the work 
of staff at that location. She expressed her appreciation for one-stop operator services 
in her district.  
 
Councilwoman Stark made a motion to approve staff’s recommendation. Councilman 
Waring seconded the motion, which passed unanimously, 3-0. 
 
CALL TO THE PUBLIC  
None. 
 
FUTURE AGENDA ITEMS 
Chairwoman Pastor requested an update on theme park legislation and the impacts of 
the gaming compact on the City of Phoenix.  
 
Mr. Chan stated a presentation on those items could be added and mentioned the 
planned tax discussion for the next meeting.  
 
Chairwoman Pastor asked Councilwoman Stark if she wanted to hear an update on 
commercial properties, specifically regarding the Teapot. Councilwoman Stark stated 
she would like to have this discussion during an upcoming meeting, but that she would 
be happy to defer the item to a later date.  
 
ADJOURNMENT 
Chairwoman Stark adjourned the meeting at 10:44 a.m. 
 
Respectfully submitted, 
 
Adeoffer-Marie Rabusa 
Management Intern