TITLE
Recommendation to adopt Specifications No. RFP DV21-034 and award a contract to Yardi Systems, Inc., of Goleta, CA, to provide Emergency Rental Assistance Program (ERAP) implementation, in a total amount not to exceed $1,437,177, for a period of one year; and, authorize City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary amendments. (Citywide)
DISCUSSION
City Council approval is requested to enter into a contract with Yardi Systems, Inc. (Yardi), to implement the Emergency Rental Assistance Program (ERAP) and assist eligible renters who have experienced economic impacts due to the COVID-19 pandemic with rental and utility payment assistance.
The City of Long Beach (City) has been awarded a total of $30.2 million in funds through the Federal Consolidated Appropriations Act of 2021 (HR 133) and California State Senate Bill 91 (SB 91) to assist low-income renters who have experienced economic impacts due to the COVID-19 pandemic. On February 9, 2021, the City Council directed staff to reserve the State Block Grant amount of $16.4 million, conform the City’s program to the State’s ERAP rules, and self-administer a local program combining the State Block Grant with the previously received $13.8 million federal allocation. Yardi has been selected to provide a solution that will help the City quickly assist impacted households within State and federal deadlines.
Yardi will provide a solution to help implement ERAP through an online portal for collecting digital applications, providing case management and customer service, and issuing rent relief payments to program beneficiaries. The value of the contract, $1,437,177, represents the not-to-exceed fee to be paid to Yardi for these services. Yardi will establish an account, similar to an escrow account, through which the payments to program beneficiaries will flow as program applications are approved. This contract will ensure the City is able to meet the strict grant deadlines, which require that 65 percent of the State allocation be obligated by June 1, 2021 and 100 percent be spent by August 1, 2021. The federal allocation must be 65 percent obligated by September 30, 2021 and fully expended by December 31, 2021.
A Request for Proposals (RFP) was advertised in the Long Beach Press-Telegram on February 27, 2021, and 1,186 potential proposers specializing in program implementation were notified of the RFP opportunity. Of those proposers, 44 downloaded the RFP document via the City’s electronic bid system. The RFP document was made available from the Purchasing Division via the Division’s website at www.longbeach.gov/purchasing. An RFP announcement was also included in the Purchasing Division’s weekly update of Open Bid Opportunities, which is sent to 37 local, minority-owned, and women-owned business groups. By March 2, 2021, 12 proposals were received. Of those proposers, none were Minority-owned Business Enterprises (MBEs), one was a Women-owned Business Enterprise (WBE), none were certified Small Business Enterprises (SBEs), and none were Long Beach businesses (Local). The selection committee determined that Yardi Systems, Inc., of Goleta, CA (not a MBE, WBE, SBE, or Local), was the most qualified firm to provide the services.
Local Business Outreach
To align with the City’s outreach goal, Long Beach businesses are encouraged to submit proposals for City contracts. The Purchasing Division also assists businesses with registering on the PlanetBids database to download RFP specifications. Through outreach, 44 Long Beach vendors were notified to submit proposals, of which 5 downloaded and none submitted a proposal. The Purchasing Division is committed to continuing to perform outreach to local vendors to expand the bidder pool.
This matter was reviewed by Deputy City Attorney Erin Weesner-McKinley and Business Services Bureau Manager Tara Mortensen on March 16, 2021, and by Budget Management Officer Rhutu Amin Gharib on March 18, 2021.
EQUITY LENS
The City has incorporated the Equity Toolkit in this recommendation as requested by the City Council on April 21, 2020. This recommendation will provide rental and utility payment assistance to Long Beach residents most impacted by COVID-19. All households with income at or below 80 percent of the Area Median Income (AMI), who have experienced financial hardship due to COVID-19, and who have demonstrated housing instability are eligible to apply. However, the City will prioritize assistance to residents who earn less than 50 percent of AMI and who have been unemployed for more than 90 days. This contract will allow the City to work directly with tenants and landlords to assist with past due rental and utility payments.
TIMING CONSIDERATIONS
City Council action to adopt Specifications No. RFP DV21-034 and award a contract concurrently is requested on April 6, 2021, to ensure the contract is in place expeditiously and that State and federal expenditure deadlines are met.
FISCAL IMPACT
The total aggregate amount of the contract will not exceed $1,437,177 and will be offset by State and federal ERAP grant funding approved on March 16, 2021. The requested contract authority is budgeted in the Community Development Fund Group in the Development Services Department, and no appropriation increase is required at this time. This recommendation has minimal staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. These grants generate a positive impact on job creation and retention in the community.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
OSCAR W. ORCI
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
THOMAS B. MODICA
CITY MANAGER