Title
Contract Extension with CO+HOOTS to Continue Small Business Community Platform (Ordinance S-47803)
Description
Request to authorize the City Manager, or his designee, to extend a contract with CO+HOOTS to continue PHXbizConnect, a technology-driven Small Business Community Platform, to support small businesses impacted by and recovering from the COVID-19 pandemic. Further request authorization for the City Treasurer to accept and the City Controller to disburse all funds related to this item. Funding for this digital platform will not exceed $295,000. There is no impact to the General Fund. Funding is available through the City’s allocation of the American Rescue Plan Act (ARPA) funding received from the federal government and is under the City's Small Business Workforce Program category.
Report
Summary
In May 2020, City Council approved $100,000 in federal Coronavirus Relief Funds to invest in a small business program to assist Phoenix businesses with their pandemic recovery efforts. On Nov. 4, 2020, City Council authorized staff to contract with CO+HOOTS to implement this program. CO+HOOTS, founded in 2010 as central Phoenix’s first coworking space, is an entrepreneurship ecosystem accelerator and support organization that provides educational resources and collaborative, self-sustaining spaces to grow the entrepreneurial, startup and small business community.
On March 1, 2021, Community and Economic Development Department (CEDD) and CO+HOOTS launched PHXbizConnect by HUUB, a social media platform where business owners connect with like-minded business owners, ask questions, share successes, and find solutions to business related issues. PHXbizConnect, available in both English and Spanish, streamlines support for small businesses in one central, virtual location and helps to boost the resilience of Phoenix small businesses. By May 2021, PHXbizConnect exceeded expectations with more than 430 businesses registered on the platform. Seventy-eight percent of these businesses have fewer than 10 employees; many are restaurants, retail shops, and professional services providers. Registered businesses have indicated PHXbizConnect has been vital in helping them navigate through the pandemic, connect to resources, learn new skills, find grants, and grow their business during this critical time.
The City's contract with CO+HOOTS, Contract No. 153515, began on Dec. 16, 2020 and is due to expire on June 30, 2021. If approved, the proposed extension would begin in July 2021 and expire in one year. CO+HOOTS will continue to provide reporting and performance metrics to CEDD to track assistance to Phoenix small businesses.
Procurement Information
CO+HOOTS was selected through Alternative Competition based on its experience creating a similar program for the City of Mesa.
Contract Term
If approved, the proposed extension would begin in July 2021 and expire after one year.
Financial Impact
Funding to extend the Small Business Community Platform via CO+HOOTS will not exceed $295,000. There is no impact to the General Fund. Funding is available through the City’s allocation of ARPA funds.
Concurrence/Previous Council Action
At the May 5, 2020 City Council Policy meeting, City Council approved $100,000 to create a tool that would provide small businesses with expertise on key business topics, guidelines to assist with business recovery and on-demand solutions during this unprecedented time. On Nov. 4, 2020, City Council authorized staff to enter in a contract with CO+HOOTS.
Department
Responsible Department
This item is submitted by Deputy City Manager Ginger Spencer and the Community and Economic Development Department.