Title
Adopt a Resolution to Authorize the City Manager to Execute an Annual Renewals for Fiscal Years 2022-2023, 2023-2024 and 2024-2025 with Dell Technologies for the Microsoft Enterprise Agreement for the Combined Amount of $651,511 (Approves $188,844 Plus up to a 10% Increase in Fiscal Year 2022-2023, One Annual Renewal in Fiscal Year 2023-2024 for $188,844 Plus up to a 15% Increase and One Annual Renewal in FY 2024-2025 for $188,844 Plus up to a 20% increase)
Staffreport
COUNCIL PRIORITY
• Infrastructure
• Sustainability & Resiliency
• Fiscal Sustainability and Transparency
SUMMARY & RECOMMENDATIONS
Staff recommends the City Council approve a resolution authorizing the City Manager to approve payments to Dell Technologies in the amount of $188,844 plus up to a 10% increase in Fiscal Year (FY) 2022-2023, one annual renewal in FY 2023-2024 for $188,844 plus up to a 15% increase and one annual renewal in FY 2024-2025 for $188,844 plus up to a 20% increase for renewal of the Microsoft Enterprise Agreement, which includes subscriptions and licenses for Microsoft Windows, Office, OneDrive, Teams, SharePoint and more. Annual increases are included to account for expansion and/or additional license quantities or Microsoft products that may be required by the City.
BACKGROUND
The City of San Leandro utilizes a Microsoft Enterprise Agreement plan for all Microsoft products, including Windows desktop and server operating systems, SQL databases, and the Office 365 platform.
The City has historically purchased Microsoft software licenses through a joint, volume licensing program known as the County of Riverside's Microsoft Enterprise Agreement (Riverside EA). The Riverside EA is a cooperative purchasing program through which the County of Riverside solicits bids for a multi-vendor approach to enter into a Microsoft Enterprise Agreement that leverages California state and local government
desktop volumes to achieve best prices. Through its large account resellers (LARs), Microsoft offers a customized Enterprise Agreement to all government agencies within the state of California.
Analysis
The City of San Leandro is required to make an annual payment to maintain its Microsoft software infrastructure. This includes all Windows operating systems for City-owned desktops and laptops; all Windows server operating systems and SQL databases servers in the City’s data centers; and the full suite of Office 365 for all City employees. Office 365 includes Exchange with Advanced Threat Protection, OneDrive, SharePoint Online, Skype for Business, Teams, Audio Conferencing, and the full Office suite of applications (Word, Outlook, Excel, Access, PowerPoint).
This annual contract covers all the licenses needed by the City for Microsoft products along with technical support, new software upgrades, security patches, and all cloud computing services. Payment is made through Dell Technologies, a Microsoft certified partner. In 2022, the City selected Dell Technologies as its Microsoft Value-Added Reseller (VAR), due to pricing and value-added services.
Previous Actions
On November 1, 2021, the City Council approved a Microsoft Enterprise Agreement for an annual renewal with SoftChoice Corporation for FY 2021-2022 for $195,505, Reso. No. 2021-593;
On November 11, 2019, the City Council approved a Microsoft Enterprise Agreement for annual renewals with SoftChoice Corporation for FY 2019-2020 and 2020-2021 for the combined amount of $366,478.46 (approving one annual renewal of $183,239.23 in FY 2019-2020 and one annual renewal of $183,239.23 plus up to a 10% increase in FY 2020-2021), Reso. No. 2019-192;
On November 5, 2018, the City Council approved a Microsoft Enterprise Agreement annual renewal with SoftChoice Corporation for FY 2018-2019 for the amount of $144,666.14, Reso. No. 2018-147;
On October 16, 2017, the City Council approved a Microsoft Enterprise Agreement annual renewal with SoftChoice Corporation for FY 2017-2018 for $134,829.34, Reso. No. 2017-144.
Legal Analysis
The City Attorney’s office reviewed and approved the purchase agreements as to form.
Financial Impacts
The total annual software and maintenance cost for FY 2022-2023 is $188,844. Costs for FY 2023-2024 are expected to be $188,844 plus up to a 10% increase. Costs for FY 2024-2025 are expected to be $188,844 plus up to a 20% increase.
Sufficient funds are included in the FY 2022-2023 Information Technology Internal Service Fund budget for Microsoft Enterprise Agreement software:
• Information Technology, Account 688-13-001-5311: $188,844
• Total $188,844
This Council action will not impact fund balance because there are funds available in the FY2022-2023 adopted budget.
Funding for FY 2023-2024 and FY 2024-2025 will be included in the 2-year budget for FY 2023 through FY 2025.
ATTACHMENTS
Attachment A: Resolution
o Ex A1: Dell Technologies Quotation
PREPARED BY: Michael Sinor, Chief Technology Officer, Information Technology Department