To: Honorable Chair and Commissioners
From: Vincent Smith, Community Development Director
Prepared By: Lark Ferrell, Housing Manager
TITLE:
Title
Software Agreement for Section 8 Housing Program
LABEL
RECOMMENDED ACTION:
Recommendationle
Adopt a resolution authorizing the Executive Director to execute Amendment No. 1 to the Master Agreement with MRI Software to upgrade the Authority’s software system for monitoring the Section 8 Housing program, over a five-year term with a total cost of $275,235.
Body
DISCUSSION:
The Housing Authority (the “Authority”) is currently under a five-year agreement with MRI Software for its Section 8 software. The Authority has used Happy software as its Section 8 software for over 20 years. The Authority uses a variety of software modules including, but not limited to, an inspection module to track and schedule unit inspections, a module to calculate tenants’ incomes and rent portions, and a module for the Family Self Sufficiency Program. HAPPY software is also used each month by Housing and Finance staff to make housing assistance payments to the Section 8 landlords.
MRI will no longer be supporting the Authority’s current Happy software version. Having software which is supported and maintained is critical to the Authority’s ability to continue to efficiently and effectively operate the Section 8 Housing Choice Voucher Program. Additionally, a software upgrade would move the data to a cloud-based platform. This will allow MRI to provide all required software support. This would free up time for the City’s IT staff. Another benefit to the software upgrade is it would allow the Authority to implement electronic inspection reporting. Using I-pads to enter inspection results, inspectors would be able to enter inspection results in real time directly into Happy while still at the property. This will significantly streamline the inspection reporting process and reduce errors.
The Authority currently has approximately four years remaining under its current agreement. Under this agreement, the Authority would pay $24,751 for annual Happy software support in FY19/20. The proposed amendment (see Exhibit “A”) would increase this amount to $49,269 plus would add an additional one-time cost of $9,100 directly related to the software upgrade. This would bring the total FY2019-2020 software cost to $58,721. This cost was included in the Authority’s recently adopted two-year budget. However, this does not consider the savings in IT staff time from no longer having to help support the Happy system nor does it consider the burden to IT and Housing staff of trying to operate on a software system that is no longer supported by the software vendor.
If the proposed amendment is approved, Housing and IT staff will work with MRI to upgrade the Happy system. This should be completed by the end of the calendar year.
FINANCIAL IMPACTS:
The cost of the amended agreement would be paid, and is included in, the Housing Authority’s Section 8 Housing Choice Voucher Program administrative budget (84301-55003). The FY19/20 cost would total $58,721 (a $33,978 increase from the current agreement). Under the terms of the five-year term of the amendment, annual costs can increase by up to 3.5% each year. Assuming the cost increases by 3.5% annually, then the total cost over the five-year term of the amended agreement would be $275,237 (including one-time costs of $9,100 in additional to the on-going annual software support).
CEQA:
The Community Development Director has determined that the Recommended Action described in this Agenda Report is not subject to California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution MRI Amendment to Agreement
EX A - Amendment to Agreement
NOTIFICATION:
Notice of this agenda item was posted 72 hours in advance of the meeting.