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SR 09-24-2019 3F City Council Report City Council Meeting: September 24, 2019 Agenda Item: 3.F 1 of 6 To: Mayor and City Council From: Katie Lichtig, Assistant City Manager, City Manager's Office Subject: Approval of Contract Modification with Akido Labs, Inc. for data -sharing app for homeless service providers Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a first modification to agreement # 10522 in the amount of $8 2,000 with Akido Labs, Inc., a California based company, for the ongoing development of Project Connect, a data-sharing mobile app deployed as part of the City’s strategy to reduce homelessness. The modification will result in an amended agreement with a new total amount not to exceed $167,000, with future year funding contingent on Council budget approval. Summary Curbing homelessness is one of the City’s Framework Priorities. In 2017, the City of Santa Monica partnered with Aikido Labs, Inc, a California based nonprofit (“Akido Labs”), to develop a data-sharing technology platform to enable communication between homeless service providers and first responders to better coordinate care for vulnerable residents experiencing homelessness. The first iteration was aimed at sharing information on frequent users of emergency police and fire services. The City’s contract with Akido Labs provides for three phases: Phase 1-Customer Discovery, to identify City needs and develop mobile application solution; Phase 2 - Solution-Pilot, to allow City use of the mobile application solution for a three -month pilot period; and Phase 3-Solution-Production, providing for City licensing and use of the mobile application for three years. The contract calls for Akido Labs to provide the services in Phases 1 and 2 at no charge, allows the City to elect not to proceed beyond Phase 2, and calls for the City to pay Akido Labs an annual licensing fee in Phase 3. Phases 1 and 2 were originally scheduled to be completed by May 2018. 2 of 6 Development took longer than expected, however, and in February 2019, a small group of pilot users were given access to the mobile application, Connect, as a solution to meet the City’s needs for improved collaboration. Connect has been modified several times as a result of usage during the pilot period, and additional changes are being sought by staff. Staff recommends a modification to the agreement with Akido Labs to extend the Phase 2 pilot period through December 2019 and allow a payment to Akido Labs for its performance of additional work requested by staff and usage of Connect during the extended Phase 2 pilot period. The Phase 3 Production period, if elected, would then extend from January 2020 to the end of the agreement’s current term, May 2021. The City would retain the option to extend the agreement for an additional three years from May 2021 on terms mutually agreeable to the parties. Discussion Addressing the needs of vulnerable people experiencing homelessness is one of the four pillars supporting the City’s strategy to reduce homelessness. According to the 2019 Annual Homeless Count results, there were 985 people experiencing homelessness within the City, of which 654 were unsheltered. Persons experiencing unsheltered homelessness and living with severe mental illness, alcohol dependency, or substance use disorders are particularly at-risk of dying on the streets due to victimization of violence, exacerbation of chronic medical conditions, and repeat exposure to the elements. These residents are also high utilizers of emergency services including police, paramedic transports, and hospital emergency room utilization. RAND recently completed a study of frequent users of emergency services that found that out of a cohort of 25 people, each person had an average of 22 police encounters, 5 arrests, 3 fire encounters, and 3.5 emergency department visits, accruing sign ificant public costs without coordination to appropriate housing or services to end homelessness. Instead they were cycling on and off the streets. The Connect app provides two-way communication between first responders and homeless case managers, which enables case managers to learn in near-real-time when their clients have interacted with emergency services to increase pre-discharge 3 of 6 engagement when evidence demonstrates vulnerable persons are more likely to accept offers for service over returning to the streets. In 2016, in partnership with Supervisor Kuehl and the County of Los Angeles, the City launched the Homeless Multidisciplinary Street Outreach Team (HMST) to provide ongoing case management services to high utilizers of local emergency medica l and police systems. Since its launch in 2016, this team has placed 25 people into interim housing and 16 into permanent housing. In 2018, the team had 1,331 engagements with individuals from this highly vulnerable cohort. The HMST team is just one vehicle through which the City engages its most vulnerable residents. The City deploys additional homeless outreach teams including the Santa Monica C3 Multidisciplinary Team and the Santa Monica Police Department Homeless Liaison Program (HLP) Team. The City has also embedded homelessness services into the Library system including two part-time social workers and a homeless outreach specialist. These teams work with community partners including the Downtown Santa Monica Ambassadors and West Coast Care to create a multiplier effect in outreaching to people experiencing homelessness. Vulnerable persons, including those that generate many public safety calls out of concern for their vulnerabilities or display of anti-social behaviors, are prioritized for service connection to ensure their wellbeing and that of the surrounding communities. The Akido Labs’ Connect app was designed to increase communication between all of these outreach efforts to streamline the coordination of care in near-real-time. The City’s relationship with Akido Labs began in March 2017 when an introduction was made through the Milken Institute at an annual conference. Akido Labs staff expressed an interest in working with the City to develop a data-sharing app to better inform first responders during encounters on the needs and care management of vulnerable residents, including reconnecting back to assigned case managers. After a scan of the landscape to identify other potential software developers, the City entered into a contract with Akido Labs to develop a mobile application to meet the City’s need for improved collaboration and communication in serving persons experiencing 4 of 6 homelessness. The contract was entered into as a sole-source contract as an exception to the competitive bidding process pursuant to the SMMC Section 2.24.080 (d) (now SMMC Section 2.24.250(b)) given the proprietary nature of the product and its specificity to Santa Monica. See August 8, 2017 Council Action in Appendix A. The initial agreement with Akido Labs was executed in 2017 with a termination date of May 5, 2021, and included three phases: Phase 1, anticipated to be completed December 31, 2017, included services to conduct customer discovery and solution development; Phase 2, anticipated to be completed April 5, 2018, was a three-month pilot of the Connect app; and Phase 3, anticipated to begin May 5, 2018, was three years of licensing for use by the City once the mobile application was put into production. Akido Labs agreed to complete Phases 1 and 2 (anticipated to be completed by May 2018), the discovery, initial development, and piloting of Connect at no cost to the City. The City could then elect whether to proceed to Phase 3, and, if it made the election to proceed, would pay Akido Labs an annual licensing fee for use of the mobile application during the production phase. Council authorized up to $85,000 over the anticipated three-year production phase to pay the annual licensing fee. The discovery and development phase (Phase 1) took longer than expected and was not completed until approximately February 2019. The City began to pilot the Connect mobile application in February 2019. The pilot allows City staff and homeless service providers to track information on a limited cohort of persons identified as frequent users of City emergency services. Data privacy and confidentiality is of the utmost concern and the app is programed with security measures and controlled access based on user - roles. Additionally, all users receive training from Akido Labs and the Santa Monica City Attorney’s Office, and each user must sign a data-governance agreement outlining the policies and limitations governing data usage. The original concept of the Connect app, which was the subject of the original agreement with Akido Labs, was that the app would draw data from existing databases (HMIS, SMPD, and Fire) and make this data available as a shared resource in real time through the app. During the pilot period (which has already extended beyond its 5 of 6 anticipated three months), staff learned that this original concept was insufficient to accomplish the goals of the project. As a result, staff has worked with Akido Labs to add additional features that enable users of the app to build on the shared data drawn from existing databases, primarily in two ways: by enabling users to communicate directly one-on-one through the app and by enabling users to input data directly into the app that is then available for sharing by others. Before putting Connect into full production, staff would like Akido to add the requested additional features that are expected to increase the usefulness of the app (particularly its usefulness to Police and Fire first responders), over what was the original scope of the project. The cost of these added features is approximately $51,200. Additional staff training and app modifications are expected as the user base expands. The remaining $30,800 will be set-aside for these purposes. Staff would also like to extend the pilot phase for additional time (through December 2019) to provide an opportunity to assess the effectiveness of these additional features and the usefulness of the Connect app in its entirety. Once production begins, as more case managers and first responders gain experience with the app, staff anticipates that it will identify additional features it will want added to the app. Staff therefore recommends a modification to the current Akido Labs agreement to: 1) extend the pilot phase through December 31, 2019, 2) modify the payment terms to allow initial payments to Akido Labs during the extended pilot phase for both use of the app during the extended pilot phase and Akido Labs’ ongoing and partially completed work in adding features beyond the originally conceived scope of the project; and 3) increase the funding authorization from $85,000 to a total of $167,000 to provide an additional $82,000 to account for identified change orders ($51,200) and future training and enhancements ($30,800). . Akido Labs has been responsive to the City’s requests for changes to Connect during the pilot phase. Should the City elect to move Connect into production, the additional funds may be used over the course of the life of the contract to provide feature development, reporting, and other functionality deemed necessary by the City. Past Council Actions 6 of 6 Meeting Date Description 08/08/17 (attachment A) Authorized the City Manager to negotiate and execute a Software Licensing and Professional Services Agreement with Akido Labs. 03/26.2019 (attachment B) Council approval of four-pillar strategy to address homelessness. Staff recommends that the City Council: Financial Impacts and Budget Actions Staff seeks authority to approve funding from the General Fund and Citizen’s Option for Public Safety (COPS) Fund to increase the amount of the contract with Akido Labs, Inc. Contract Modification Request Current Authorized Amount FY 2019-20 Request Future Year Funding Account # Total Revised Contract Amount $85,000 - - SO019301.689000 $85,000 - $8,000 $16,000 01190001.529230 $24,000 - $3,333 $6,667 01200001.552010 $10,000 - $8,000 $16,000 01400001.552010 $24,000 - $8,000 $16,000 22180001.525260 $24,000 $85,000 $27,333 $54,667 Total $167,000 Future year funding is contingent on Council budget approval. Prepared By: Alisa Orduna, Senior Advisor to the City Manager on Homelessness Approved Forwarded to Council Attachments: A. Akido Labs OAKS INITIATIVE FORM Signed Sept 17 2019 CITY OF SANTA MONICA OAKS INITI ATIVE NOTICE NOTICE TO APPLICANTS, BIDDERS, PROPOSERS AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS, OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk. This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public off icial from receiving, and a person or entity from conferring, specified personal benef its or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica. All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists f or persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12-month period. In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This inf ormation must be updated and supplied every 12 months. CITY OF SANTA MONICA OAKS INITI ATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benef its include: 1. Personal services contracts in excess of $25,000 over any 12-month period; 2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period; 3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or 7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period. Name(s) of persons or entities receiving public benefit: Name(s) of trustees, directors, partners, and officers: Name(s) of persons with more than a 10% equity, participation, or revenue interest: Prepared by: ____________________________Title: __________________________ Signature: ______________________________________ Date: ________________ Email: ____________________________________ Phone: ____________________ FOR CITY USE ONLY: Bid/PO/Contract # ____________________________ Permit # ___________________________ Jared Goodner Chief Product Officer 09/17/2019 jared@akidolabs.com 213 550 5302 Akido Labs Prashant Samant, Jared Goodner, Hugh Gordon Prashant Samant, Jared Goodner, Hugh Gordon REFERENCE: Modified No. 10522 (CCS)