Item 20 - Agreement with 3Di, Inc. for the Rent Stabilization

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Rental Registry Portal for the Rent Stabilization and Just Cause Eviction Ordinance February 7, 2023 Page 2 3 2 2 4 Review Panel based upon the evaluation criteria in the RFP. The following table summarizes the results of the evaluation by the Review Panel, providing the average score and ranking for each proposal: Rank Proposal Submitted By Average Score* 1 3Di, Inc.89 2 Citizenserve 68 * Maximum score is 100 points The highest scoring proposal was from 3Di, Inc. Following this competitive procurement process, staff recommends approving an Agreement with 3Di, Inc. to best serve the needs of the City to implement, operate, and maintain a rental registry portal for the City’s Ordinance. 3Di, Inc. brings over 20 years of experience delivering comprehensive, fully integrated solutions for affordable housing, accessible housing, and tenant protections. 3Di has successfully implemented a rental registry in multiple other jurisdictions with rent stabilization ordinances, including Los Angeles County, Los Angeles City, Beverly Hills, Inglewood, Berkeley, Alameda City, Mountain View, and San Francisco. 3Di was recommended by these other cities with rent stabilization ordinances. Based on their experience working with other cities with rent stabilization, 3Di, Inc. will implement a rental registry that supports an accurate rental unit inventory, enforces livability standards, ensures evictions happen for just causes, and provides key data needed to understand and stabilize the rent burdens within the City. The proposed Agreement with 3Di, Inc. to implement, operate, and maintain a rental registry portal for the Ordinance will not exceed $305,895 over a three-year period (Exhibit 1). The Agreement includes a one-time implementation fee of $60,000 followed by annual subscription fees for year 1, 2, and 3. Implementation of the rental registry portal will require at least five months of work prior to the July 1, 2023 deadline. Prior to finalizing the Agreement, staff in the Community Development Agency coordinated with the Finance and Management Services Agency and Information Technology (IT) to ensure the rental registry portal will be implemented seamlessly with the City’s existing payment processing system and IT services. With approval from the City Council, staff will execute the proposed Agreement with 3Di, Inc. in order to successfully launch a rental registry on July 1, 2023, in compliance with the Ordinance. Regarding the funding to pay for the rental registry portal, the Ordinance and rental registry portal will be permanently funded from rental registry fees paid by property owners. To begin the process to determine these fees, on November 18, 2022, staff issued a second Request for Proposals (RFP #22-155) to conduct a comprehensive fee study to determine appropriate program fees that would recover all program costs associated with services provided under the Ordinance. Following this second procurement process, staff selected Revenue & Cost Specialists, LLC to conduct this fee study and entered into an Agreement for $34,300. Following the fee study, a rental registry fee will be recommended to the City Council for approval in the FY 23-24