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SR 01-14-2020 3C City Council Report City Council Meeting: January 14, 2020 Agenda Item: 3.C 1 of 4 To: Mayor and City Council From: Andy Agle, Director, Housing and Economic Development, Housing Division Subject: Approval of Modification to MRI Software Contract for additional Software Support and Services for the Housing and Economic Development Department Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a first modification to agreement #10786 in the amount of $52,495 with MRI Software, LLC, a New York-based company, for additional software support and services for the Housing and Economic Development Department. This will result in a five-year amended agreement and a new total amount not to exceed $320,328, with future-year funding contingent on Council budget approval. Summary The Santa Monica Housing Authority, which manages rental-assistance programs in Santa Monica, contracts with MRI Software, LLC for software licensing, maintenance, and technical support services to administer its operations. Functional technology is key to efficient and timely processing of the extensive record-keeping, approvals, compliance, and payments involved in Federal and local housing assistance. Staff recommends modifying the agreement to add one-time custom programming that will efficiently implement the Section 8 and Preserving Our Diversity waitlists, as well as implement a new feature that will reduce the cost and time required to run background checks for prospective participants. Discussion The Santa Monica Housing Authority (SMHA) uses HAPPY software to administer housing voucher programs, maintain housing waitlists, and manage the P reserving Our Diversity (POD) cash-based assistance, pilot program for seniors. The software retains all relevant records electronically, facilitating simultaneous access by multiple staff, eliminating the need for paper files, and enabling more efficient processing and faster 2 of 4 response time. HAPPY software also helps to ensure compliance with federal regulations and audits tied to federal funding of the housing-voucher programs. Concurrently, the City is working with another software developer, Main Street Computing, to create an online software solution for the City-administered waitlist for deed-restricted affordable housing owned and operated by for-profit and non-profit housing providers. HAPPY’s integrated waitlist feature, waitlistcheck.com, is currently used to manage the Housing Choice Voucher Program (HCV) waitlist. The HCV waitlist has been closed since January 2017, when it was opened for one day and received mor e than 18,000 applications. As staff formulate plans for opening the waitlist in 2020, changes have been identified that will implement the new Council-approved waitlist priorities, make the waitlist application more user-friendly for applicants, and reduce the administrative burden of reviewing the applications. Incorporating the changes into the HAPPY software package will require custom programming at a one-time cost not to exceed $5,665. On July 24, 2018, City Council approved expansion of the POD cash-based assistance program. Expansion of the program is underway and additional functionality is required to conduct rolling lotteries in HAPPY to select participants for the program. Adding the feature will require custom programming at a one-time cost not to exceed $16,830. The SMHA is required to run background checks for participants in its voucher programs. MRI Software recently added a new feature in HAPPY called ResidentCheck, which the SMHA has been testing. In addition to reducing paperwork and staff time due to the integration of ResidentCheck within the HAPPY software, the cost is also lower than the service currently being used. Staff recommends adding the ResidentCheck module with a budget not to exceed $14,000 for the first year due to an increased allocation of vouchers and in anticipation of opening the waitlist , and $4,000 annually thereafter for a total cost not to exceed $30,000. Past Council Actions 3 of 4 Meeting Date Description 12/10/2019 (attachment A) Approved Draft Santa Monica Housing Authority Administrative Plan for the Housing Choice Voucher Program. 12/18/2018 (attachment B) Approved HAPPY Software Contract with MRI Software, LLC, for License, Maintenance, and Support to Administer Housing Voucher Programs. 07/24/2018 (attachment C) Approved Proposed Housing Trust Funds Initial Plan, which established priority goals and funding allocations among target populations for the use of housing trust funds. Financial Impacts and Budget Actions Staff seeks authority to approve funding from the General Fund to increase the amount of the agreement with MRI Software, LLC to add custom programming and background check services. Contract/Agreement/Purchase Order Modification Request Agreement # Current Authorized Amount Modified Request Amount FY 2019-20 Account # Total Revised Contract Amount 10786 $267,833 $52,495 SO019102.689000 $320,328 Future-year funding is contingent on Council budget approval. Prepared By: Melinda Espinoza, Staff Assistant lll Approved Forwarded to Council 4 of 4 Attachments: A. Staff Report 12.10.2019 (Web Link) B. Staff Report 12.18.2018 (Web Link) C. Staff Report 07.24.2018 (Web Link) D. Oaks Initiative REFERENCE: Modified Agreement No. 10786 (CCS)