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HomeMy WebLinkAbout2025-05-13 - AGENDA REPORTS - MICROSOFT ENTERPRISE LICENSE AGMTCITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR Agenda Item: 10 CITY MANAGER APPROVAL: L ` DATE: May 13, 2025 SUBJECT: MICROSOFT ENTERPRISE LICENSE AGREEMENT DEPARTMENT: Administrative Services PRESENTER: Ryan James RECOMMENDED ACTION City Council: Approve the use of a "piggyback" agreement using Riverside County Master Agreement #ITARC-00934 with Dell Inc. to enter into a three-year contract for the continued use of Microsoft products in the amount of $179,923, and authorize a ten percent contingency in the amount of $17,992 for potential new licenses, for a total contract amount not to exceed $197,915. 2. Appropriate funds from the General Fund (Fund 100) to Expenditure Account 1002200- 516101 in the annual ongoing amount of $18,000 beginning in Fiscal Year 2025-26, contingent upon the appropriation of funds in the annual budget for such fiscal years. 3. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval. BACKGROUND The City of Santa Clarita (City) utilizes Microsoft (MS) software to operate desktop computers, servers, databases, applications, and email. The contractual agreement between the City and MS, known as an Enterprise Agreement (EA), grants licensed use of MS products and authorizes the City to use, connect, and receive support for Windows computers, Windows servers, SQL Server, Exchange email, Systems Center and Configuration Manager, Remote Desktop, and the Microsoft Developer Network. A typical EA lasts for three years, at which time the agreement is re-entered to allow the continued use and support of MS software. The existing agreement is set to expire on June 30, 2025, and was last approved by the City Council on June 28, 2022. For over 16 years, the City has utilized an MS EA to ensure proper licensing of MS software as Page 1 Packet Pg. 285 well as the flexibility for growth as the organization expands. Through the EA, City computers are licensed to connect to Windows servers from desktop computers to share network resources, including storage, email, printers, as well as a centralized repository for managing user access and computer configurations. In January 2024, the City Council approved an amendment to the EA to add licenses for the City's part-time/temporary/seasonal staff (PTS), and account for the growth in full-time employees (FTE). In doing so, the number of EA licenses increased from 575 to 885. In doing so, FTE and PTS staff were properly licensed to be compliant with Microsoft's licensing terms. This item seeks City Council's authorization to enter into a new MS Enterprise Agreement for three years for a contract total not to exceed $197,915, inclusive of a ten percent contingency for growth in potential new software licenses. There are several benefits of an MS Enterprise Agreement, such as Software Assurance that allows the City to upgrade to the latest version of any of the products managed under the agreement's term. This allows the City to be on the latest versions of the covered MS software and benefit from the feature and security enhancements at no additional cost. Software Assurance also provides City staff with support, tools, training, and the ability to demo and test software prior to deployment. The use of "piggyback" purchasing allows the City to place orders against a competitively awarded public agency contract. The City is using Riverside County Master Agreement #ITARC-00934, which was competitively solicited and awarded to Dell on September 10, 2024, allowing the City to license MS software. City staff finds this contract provides the most competitive pricing for licensing of MS products. ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT Upon the approval of the recommended action, additional annual ongoing budget in expenditure account 1002200-516101 (General Fund 100) in the amount of $18,000 will be appropriated beginning in Fiscal Year 2025-26, contingent upon the appropriation of funds in the annual budget for such fiscal years. ATTACHMENTS Santa Clarita EA Renewal Page 2 Packet Pg. 286 10.a 01 Customer: City of Santa Clarita Contract: Riverside County Master Agreement - ITARC-00934 (8084445) Renewal estimate for EA# xxxxx (expires 6/30/2025) ell CLs-c-ier Con' dertia Quotation Date of Issue: 4/9/2025 Quote Expires: 5/31/2025 PLEASE SEE IMPORTANT TERMS AND CONDITIONS AT THE BOTTOM OF THIS QUOTATION Sam Andrews sam.andrews@dell.com 512.720.4469 Section 1- Licenses and Software Assurance Product Description Mfg# Quantity Unit Price Ext. Price Core CAL ALng SA UCAL W06-00446 885 $50.41 $44,612.85 Exchange Server Standard ALng SA 312-02257 4 $130.79 $523.16 SQL Server Standard Core ALng SA 2L 7NQ-00292 4 $662.43 $2,649.72 Visual Studio Ent with GitHub ALng SA QEJ-00003 1 $1,101.36 $1,101.36 Visio Standard ALng SA D86-01253 1 $58.03 $58.03 Win Remote Desktop Services CAL ALng SA UCAL 6VC-01254 40 $26.70 $1,068.00 Win Server DC Core ALng SA 2L 9EA-00278 60 $142.27 $8,536.20 Win Server External Connector ALng SA R39-00396 3 $373.02. $1,119.06 Win Server Standard Core ALng SA 2L 9EM-00270 14 $21.84 $305.76 $0.00 Annual Payment Section 1: $59,974.14 Section 2- Monthly Subscriptions Product Description Mfg# Quantity Months Unit Price Ext. Price $0.00 $0.00 $0.00 $0.00 0.00 Annual Payment Section 2: $0 Notes: Total Annual Payment Yr 1 $59,974.14 Microsoft Enterprise Agreement (EA) Master#: 8084445 Total Annual Payment Yr 2 $59,974.14 Microsoft Enterprise Agreement (EA) Enrollment#: Future/TBD 7/1/2025 Total Annual Payment Yr 3 $59,974.14 Riverside County Master Agreement - ITARC-00934 Total of 3 years of Payments $179,922.42 I Notes: 11 customer* pure n see is aunject to Del I's 7erme a na Conditions o7 Sala lou nil at www.dell.00m. u n leas Customer has a separate purchase agreement with D &II. 2) Sales) —tax Is based on the `shlp to" address on you r I n vo ice. P lease mdlcat& your taxadlllty status on you r purchaae order.ITex&mint. Customer must have an Exemption Certln .ale on In Is. 31 If you have a question re: your tax status, please contact your Cell I ASAP Software Inslde salm representatlm listed above.Shlpmarda to Callfornla: for certain products. a State Environmental Fee or up to �10 per Item may be applied to your I n vale e. Prices do not reflect this ree unless noted. Fa mare Information, refer to www.dell.comlenwlron menu Fee. 40 ell product desc ripbo na and prices are based on latest Inform atlon anal is ble and are subject to change without nod— or obligation. Sj Al l prices are tined on Het 3-1) Toms. IF not Shawn. shlpp Ing. handling, taxes, and other Tech WII I be added at the 11 me or order, where appl lcable. so Customer underatande and acknowledges that all warrandee. r&pre*entatlons and return* are *unject to the manufacturer, pull Ishar or dletridutor guidelines. Packet Pg. 287