SR 12-18-2018 3E
City Council
Report
City Council Meeting: December 18, 2018
Agenda Item: 3.E
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To: Mayor and City Council
From: Andy Agle, Director, Housing and Economic Development, Housing Division
Subject: Happy Software Contract with MRI Software, LLC, for License, Maintenance,
and Support to Administer Housing Voucher Programs
Recommended Actions
Staff recommends that the City Council authorize the City Manager to negotiate and
execute an agreement with MRI Software, LLC, a New York-based company, for
software licensing, software maintenance, and technical support services for the
Housing Authority. The recommended award is made as an exception to the
competitive bidding process per Municipal Code 2.24.080 (a). The agreement amount
is not to exceed $48,552 for the first year, with four additional one-year renewal options
with a maximum annual increase of 3.5 percent, for a total amount not to exceed
$267,883 (including a $15,000 contingency) over a five-year period, with future-year
funding contingent on Council budget approval.
Summary
The City’s Housing Authority uses HAPPY software to administer housing voucher
programs. The Software Maintenance and Support Agreement between the City and
HAPPY began on March 7, 2016 and expires on January 31, 2019. In 2018, HAPPY
software was acquired by MRI Software, LLC (MRI) and HAPPY became a subsidiary
company of MRI. Staff recommends entering into a new contract agreement with MRI
for software licensing, software maintenance, and technical support services using
HAPPY software.
Discussion
HAPPY software has been used to administer the housing voucher programs and
maintain the waitlists since 2013. During this time, HAPPY provided software
maintenance and technical support services. The software retains all tenant records
electronically, facilitating simultaneous access by multiple staff, eliminating the need for
paper files, and allowing more efficient processing and faster response time. HAPPY
software also helps to ensure compliance with federal regulations and audits tied to
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federal funding of the housing voucher programs. Under the proposed contract, the
software would be cloud based, providing greater security of confidential tenant
information and reducing the demands on city staff to support upgrades and ongoing
maintenance.
Council authorized a HAPPY contract renewal in 2016 and a subsequent modification
in 2017 to increase budget for software upgrades. The existing contract expires on
January 31, 2019 and in order to maintain voucher programs the Housing Authority
must execute a new contract, now with MRI, to continue using the proprietary software
and to receive ongoing software maintenance and support services. Purchasing new
software would require data transfer, staff training, and software support. Purchasing
new software would be much costlier and would likely result in significant disruption to
the housing program operations and negatively impact landlords and tenants in
the programs.
The table below lists the maximum annual agreement amounts:
Contract Term Maximum
Increase
Maximum
Amount
Year 1 $48,552
Year 2 3.5% $48,466
Year 3 3.5% $50,162
Year 4 3.5% $51,918
Year 5 3.5% $53,735
Contingency $15,000
Total $267,833
Vendor Selection
Exception to Competitive Bidding
Staff recommends MRI, through its subsidiary HAPPY, to provide software licensing,
software maintenance, and technical support services for software for the Housing
Authority. The contract is an exception to competitive bidding per Municipal Code
2.24.080 (a), however, staff believes that the pricing is competitive and appropriate for
the services rendered. The software is a proprietary product, currently used by the
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Housing Authority, and only MRI can provide the services.
a. Competition does not exist, such as memberships for professional organizations
and/or public utilities. Proprietary Purchase - Item of original equipment
manufacturer and/or their authorized exclusive distributor.
Past Council Actions
Meeting Date Description
6/12/12 (Attachment A) Sole Source Purchase of HAPPY Software
1/24/17 (Attachment B) Software Maintenance and Support Services Contract
Modification for the Housing Authority
Financial Impacts and Budget Actions
Staff seeks authority to enter into an agreement with MRI for software licensing,
software maintenance, and technical support services.
Agreement Request
Request Amount FY 2018-19 Budget Department
Account #
Total Agreement Amount
$48,552 12160002.529230 $267,833
Future funding is contingent on City Council budget approval.
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Prepared By: Lucie Loach, Housing Authority Administrator
Approved
Forwarded to Council
Attachments:
A. Staff Report 6.12.12 (Web Link)
B. Staff Report 1.26.16 (Web Link)
C. Staff Report 1.27.18 (Web Link)
D. Santa Monica Executed HAPPY Oaks Initiative
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/
A
REFERENCE:
Agreement No. 10786
(CCS)