SR 12-12-2023 5D
City Council
Report
City Council Meeting: December 12, 2023
Agenda Item: 5.D
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To: Mayor and City Council
From: Heather Averick, Director, Housing and Human Services Department
Subject: Approval of Second Modification to MRI Software Contract to Administer
Housing Voucher Programs
Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section
15061(b)(3) (Common Sense Exemption) of the California Environmental Quality
Act (CEQA) Guidelines.
2. Authorize the City Manager to negotiate and execute a second modification to
agreement #10786 in the amount of $385,013 with MRI Software, LLC, for
software licensing, software maintenance, technical support services, as well as
criminal background check services for the Housing Authority. This will result in a
ten-year amended agreement with a new total amount not to exceed $705,341
(including a $20,000 contingency) with future year funding contingent on Council
budget approval.
Summary
The Santa Monica Housing Authority (SMHA) uses a proprietary cloud-based software
to administer six voucher programs, as well as the City’s universal basic income
program for seniors, Preserving our Diversity (POD). The system allows program
applicants and participants online portal access and allows staff to process payments,
manage the waitlist, request criminal background checks, and operate additional
management tools. Staff recommends continuing the agreement with MRI Software to
assist in the administration of the City’s housing assistance programs. The existing MRI
contract authorized amount is $320,328. The proposed contract extension will add
$385,013 over five years for a total contract amount not to exceed $705,341.
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Discussion
The City’s Housing Authority (SMHA) uses a proprietary cloud-based software from MRI
to administer its six housing voucher programs, as well as the POD program for seniors,
serving approximately 1,900 households. MRI’s software package includes online
portal access for program participants, tenant and housing provider data and records
required by the federal government, and components for payment processing, waitlist
management, and criminal background checks.
The existing licensing and software contract with MRI expires on January 31, 2024.
HAPPY Software was initially selected to provide waitlist management with an online
application system, after a Request for Proposals was issued March 16, 2010 (MRI
Software purchased HAPPY Software in 2018). In 2012, the SMHA adopted the
remaining software modules after Happy Software proved to provide a superior product.
The continued administration of the Housing Authority’s six voucher programs, as well
as the POD program, depends on a contract extension. The proposed contract
extension would allow uninterrupted use of the software to support administration of the
City’s voucher programs, including monthly assistance for approximately 1,900
households, criminal background check services, and ongoing software maintenance
and technical support services. MRI’s software and support services has performed well
during the existing contract period and its cloud-based approach proved crucial during
the Covid pandemic. Additionally, this year staff researched other possible vendors
specializing in federal housing voucher administration and found that other software
programs either lacked the range of features that MRI offers or will not provide material
cost savings. For example, MRI’s package includes an integrated waitlist module,
which facilitates a streamlined approach to voucher program administration.
MRI voucher administration software also helps to ensure compliance with federal
regulations and audits associated with the federally-funded housing voucher programs.
The cloud-based nature of the software provides security for confidential tenant
information and reduces the demands on City staff to support software upgrades and
ongoing maintenance. Staff recommends continuing the MRI software with a budget not
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to exceed $57,111 next year with 3.5% annual increases for a total cost over the five-
year period not to exceed $330,013 (including a $20,000 contingency).
Additionally, the SMHA is required to perform criminal background checks for
participants in its voucher programs. In 2020, SMHA added a new feature offered by
MRI called ResidentCheck that runs background checks. The SMHA switched from
National Credit Reporting to save costs and due to the integration of ResidentCheck
within the MRI software package which reduces staff time spent on background checks.
Continuing ResidentCheck is estimated to cost $9,000 for the next year and is
estimated to increase by $1,000 every year after for a total cost over the five-year
period not to exceed $55,000.
Past Council Actions
Meeting Date Description
1/14/2020 Approved Modification to MRI Software Contract for additional
Software Support and Services
12/18/2018 Approved HAPPY Software Contract with MRI Software, LLC, for
License, Maintenance, and Support to Administer Housing
Voucher Programs
Environmental Review
The agreement is categorically exempt from CEQA pursuant to Section 15061(b)(3) of
the CEQA Guidelines. The agreement is covered by the common sense exemption
which states that CEQA does not apply, “where it can be seen with certainty that there
is no possibility that the activity in question may have a significant effect on the
environment.” The agreement will continue to provide the City with voucher program
software services for administrative functions. Therefore, it can be seen with certainty
that the contract would not result in adverse physical impacts on the environment, and
as such, is categorically exempt from CEQA.
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Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Housing Authority Fund to award an
agreement with MRI for software licensing, software maintenance, criminal background
check services and technical support services.
Contract Modification Request
Agreement # Current
Authorized
Amount
FY 2023-2024
Modified
Request Amount
Future
Years
Department
Account #
Total Revised
Contract
Amount
10786 $320,328 $29,848 $355,165 12420002.
529230
$705,341
Future year funding is contingent on Council budget approval.
Prepared By: Lupe Madrid, Executive Administrative Assistant
Approved
Forwarded to Council
Attachments:
A. January 14, 2020 Staff Report (Web Link)
B. December 18, 2018 Staff Report (Web Link)
C. OAKS Initiative Form
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CITY OF SANTA MONICA
OAKS INITIATIVE 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 official from receiving, and a person or entity from conferring,
specified personal benefits 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 for 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 information must be updated and supplied
every 12 months.
5.D.c
Packet Pg. 112 Attachment: OAKS Initiative Form (5926 : Housing Authority Software (HAPPY) Contract Renewal)
CITY OF SANTA MONICA
OAKS INITIATIVE 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 benefits 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:
Permit #
FOR CITY USE ONLY:
Bid/PO/Contract #
Roman Telerman Chief Financial Officer
MRISignatory@mrisoftware.com 800-321-8770
HAPPY Software, LLC, an MRI Software company
Patrick J. Ghilani (CEO)
John A. Ensign (President and Chief Legal Officer)
Roman Telerman (Chief Financial Officer)
MRI Software LLC (100% ownership interest) - no individual person owns a 10% or greater direct or
indirect interest.
Roman Telerman 11/8/2023
5.D.c
Packet Pg. 113 Attachment: OAKS Initiative Form (5926 : Housing Authority Software (HAPPY) Contract Renewal)