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SR 01-26-2016 3K City Council Report City Council Regular and Special Joint Meeting: January 26, 2016 Agenda Item: 3.K 1 of 4 To: Mayor and City Council From: Andy Agle, Director, Housing Division, Housing and Economic Development Subject: Software Maintenance and Support Services Contract Renewal for the Housing Authority Recommended Action: Staff recommends that the City Council authorize the City Manager to negotiate and execute a contractual service agreement with HAPPY Software Inc. (HAPPY), a New York-based company, for ongoing software maintenance and support services of HAPPY’s full suite of Housing Pro 8 Software. The proposed amount for the three-year contract would not exceed $60,000, with future-year funding contingent on Council budget approval. Executive Summary The City uses Housing Pro 8 software, owned by HAPPY Software, Inc., to administer the Housing Authority’s rental housing voucher programs, as well as maintain its Affordable Housing Programs wait list. The current agreement expires on January 31, 2016. Staff recommends a new agreement with HAPPY Software for ongoing software support and maintenance services for up to three additional years in an amount not to exceed $60,000, extending through January 31, 2019. As HAPPY software is a proprietary product, support and maintenance services are available only through HAPPY. Background On March 15, 2010, a Request for Proposals (RFP) was issued by the Housing Authority to find a solution for maintaining its Affordable Housing Programs wait list. HAPPY Software's Housing Pro 8 wait list software and online portal was selected from responses received and is currently utilized by the Housing Authority to maintain its wait list. Housing Pro 8’s wait list software is a single component of a larger suite of software components that make up the entire Housing Pro 8 software system. Each component is referred to as a module and each module of the Housing Pro 8 2 of 4 Software system is designed to aid in administering the Housing Authority’s rental housing voucher programs, Family Self-Sufficiency (FSS) program, and wait list. Following the installation of Housing Pro 8’s wait list module, staff determined that upgrading software for other Housing Authority programs would improve administration and efficiency, and allow for paperless automation. Staff researched available voucher programs software and determined that HAPPY Software was the only software provider that allowed for integration with the existing wait-list software. On June 12, 2012, Council authorized the purchase of HAPPY Software's full suite of Housing Pro 8 modules for the Housing Authority, for an amount not to exceed $150,000 and a term of three years. Discussion Numerous administrative procedures previously completed manually by Housing Authority staff for housing voucher programs have become automated with the use of HAPPY’s Housing Pro 8 software. This includes document retention, transmission, and retrieval. Records for each household can be very large and a significant amount of staff time was previously spent organizing and accessing paper files. In complex situations, multiple staff members often needed simultaneous access to a file, which caused delays in the document retrieval and transmission process. Additionally, files needed to be regularly purged of older information to keep them of a manageable size. Purged files were then transferred into off-site storage for the legally required retention period. The purging process was costly and time-consuming due to off-site retention, which can take more than 24 hours to retrieve urgently needed files. With Housing Pro 8, all tenant records are stored in one database and can be accessed from individual computer, multiple users can access any tenant record simultaneously, paper copies of households’ files are no longer needed, and copies of documents can be printed or transferred into electronic f iles, if needed, directly from the software. Housing Pro 8 has also improved efficiency and decreased the amount of time spent on various tasks. With the use of a tablet, Housing Pro 8 allows housing inspectors to create inspection reports electronically, including photos taken at the site, and upload 3 of 4 the reports directly into the software database. Mail merging and tracking can all be completed with Housing Pro 8, eliminating the need to export data and perform a separate mail merge. Data-entry errors in household records are automatically identified by Housing Pro 8, significantly reducing staff time spent identifying errors. Information regarding households’ transactions and payments to apartment owners can be transferred automatically from HAPPY software into accounting software and HUD reports. Vendor/Consultant Selection To continue using the Housing Pro 8 software and receiving maintenance and support services, a new contract with HAPPY Software is necessary. A sole source purchase of Happy Software’s support and maintenance services is justified because HAPPY Software is a proprietary product and only HAPPY Software can provide these services for its software. Engaging a new software maintenance and support company would necessitate purchasing a new software system, which would be much more costly than maintaining the current system and would involve significant disruption to the Housing Authority’s operations. Financial Impacts and Budget Actions The agreement to be awarded to HAPPY Software, Inc. is for an amount not to exceed $60,000. Funds are available in the Housing and Economic Development Department budget in account 122691.533580. Future-year funding is contingent on Council budget approval. Prepared By: Elsa Brown, Senior Administrative Analyst Approved Forwarded to Council 4 of 4 Reference:    Agreement No.  10244   (CCS)