Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute Annual Software Renewals for the City’s Microsoft Enterprise Agreement with SHI International in the Amount of $200,750 in FY 2026 and up to a 5% Increase in FY 2027 and an Additional 5% Increase in FY 2028. The Combined Amount Over Three Fiscal Years Will Not Exceed $632,864.
Staffreport
COUNCIL PRIORITY
• Infrastructure
SUMMARY & RECOMMENDATIONS
Adopt a Resolution to approve and authorize the City Manager to Execute Annual Renewals for the City’s Microsoft Enterprise Agreement with SHI International in the Amount of $200,750 in FY 2026 and up to a 5% Increase in FY 2027 and 10% in FY 2028. The Combined Amount Over Three Fiscal Years Will Not Exceed $632,864.
The Microsoft enterprise agreement includes the following subscriptions and licenses: Microsoft Windows Server, Office, OneDrive, Teams, SharePoint and more. Annual increases are included to account for price increases, expansion and/or additional license quantities or 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 server operating systems, SQL databases, and the Microsoft 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 server operating systems and SQL databases servers in the City’s data centers; and the full suite of Microsoft 365 for all City employees. Microsoft 365 includes OneDrive, SharePoint Online, Teams, 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 SHI International, a Microsoft certified partner. The City selected SHI 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, 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 $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.
On December 19, 2022, the City Council approved Microsoft Enterprise Agreement annual renewals with Dell Technologies for renewals in Fiscal Years 2022-2023, 2023-2024, and 2024-2025 for a total of $651,511, Reso. No. 2022-222.
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 2026 is $200,750. Costs for FY 2027 are expected to be $200,750 plus up to a 5% increase. Costs for FY 2028 are expected to include an additional 5% increase.
Sufficient funds are included in the FY 2026 and FY 2027 Information Technology Internal Service Fund budget for Microsoft Enterprise Agreement software. Annual software and maintenance costs for FY 2028 will be included in the proposed biennial budget for Council consideration and adoption.
ATTACHMENT A - Resolution
ATTACHMENT B - Quote
PREPARED BY: Michael Sinor, Chief Technology Officer, Information Technology Department