Due to the inaction by the agency, they had to ask for what's known as a negotiated procurement. It prevents the agency from doing the work of putting together the pieces to execute a formal competitive solicitation process.
This is the second instance in 2017 that The Daily City has been aware of this agency's struggle with RFPs and the formal competitive solicitation process. In 2016 the contract for the Manager of the Downtown Farmers Market ended in December. The agency had no RFP ready in December. In fact, they didn't have it ready until the second half of 2017. This delay caused them to have to give multiple extensions to the 2016 contract holder. Read about that mess here.
Mercedes Blanca, DDB/CRA Project Manager, stated in a letter that a formal competitve process "isn't possible" for the holiday decorations due to the quick turnaround time. That problem was self-created. Being in the position of having a quick turnaround time is the fault of Community Redevelopment Agency. They never started the process so they forced themselves into the situation of having to ask City Council for negotiated procurement rather than a formal competitive solicitation process.