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. 2 of 4
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 3 of 4
to exceed $57,111 next year with 3.5% annual increases for a total cost over the fiveyear 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