Title
Request to Amend Contract 153515 with HUUB LLC for Economic Development Technical Assistance (Ordinance S-51485) - Citywide
Description
Request to authorize the City Manager, or his designee, to extend Contract 153515 with HUUB LLC to continue economic development technical assistance services through PHXbizConnect and utilize $302,900 in Community Development Block Grant (CDBG) funding to provide those services to microenterprise owners and entrepreneurs with low-and-moderate incomes located in the City of Phoenix. Further request to authorize the City Controller to disburse all funds related to this item. Funding will not exceed $302,900 and is available from the Neighborhood Services Department's (NSD) CDBG entitlement funds. There is no impact to the General Fund.
Report
Summary
Since May 2020, City Council has utilized federal Coronavirus Relief Funds and Coronavirus State and Local Fiscal Recovery Funds to assist Phoenix small businesses with pandemic recovery efforts. As part of those efforts, the City partnered with HUUB LLC to provide economic development technical assistance services through the PHXbizConnect software platform. The technical assistance program included free, one-on-one consulting from business advisors. Since 2021, HUUB LLC's technical assistance program has helped over 200 businesses with over 1,300 hours of consulting services.
Historically, NSD operated a similar Management Technical Assistance (MTA) program for microenterprises, small business owners and entrepreneurs, which also provided free consulting services with business advisors. NSD's MTA program was funded with CDBG from the U.S. Department of Housing and Urban Development. During the same time period, NSD's MTA program has helped 40 businesses with over 980 hours of consulting services. Over the last several years, NSD's MTA program has underperformed compared to HUUB LLC's technical assistance program.
Utilizing HUUB LLC's PHXbizConnect software platform for management technical assistance has significant advantages over NSD's internally-operated, manual program. The software platform reduces intimidating paperwork, provides a streamlined process with greater self determination to businesses, collects a greater amount of data for economic development program administrators, and produces more results.
The Coronavirus recovery funds dedicated to support HUUB LLC's technical assistance program are expiring at the end of the 2024 calendar year. NSD is willing to extend the contract with HUUB LLC and fund a management technical assistance program through the PHXbizConnect platform. The extension will ensure effective management technical assistance continues to be available to microenterprises and entrepreneurs with low-and-moderate incomes located in the City of Phoenix. Additionally, HUUB LLC is willing to provide the services as a subrecipient of federal funds and ensure the program meets all CDBG requirements.
Contract Term
If approved, the proposed extension would begin on January 1, 2025, with a term of one year.
Financial Impact
Funding to extend the contract for twelve months will not exceed $302,900. If this extension is approved, the aggregate value of this contract will not exceed $1,353,400. There is no impact to the General Fund. Funding is available from the Neighborhood Services Department's CDBG entitlement funds.
Concurrence/Previous Council Action
At the May 5, 2020, City Council Policy meeting, City Council allocated funding to create a tool that would connect small businesses to resources during the COVID pandemic. On November 4, 2020, City Council authorized Contract 153515. City Council authorized subsequent contract extensions on July 1, 2021, May 25, 2022, April 5, 2023, and June 12, 2024.
Department
Responsible Department
This item is submitted by Deputy City Managers John Chan and Alan Stephenson and the Community and Economic Development and Neighborhood Services departments.