Camarillo City Council
AGENDA REPORT
Date: February 14, 2024
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: John Thomas, Assistant Administrative Services Director Subject: MS Office 365 Software Licensing Subscription – Second Amendment
BACKGROUND
On July 22, 2022, the City Council authorized a three-year agreement (Agreement No. 2022-178 beginning July 1, 2022, through June 30, 2025) for the purchase of Microsoft Volume Licensing through CompuWave in the amount of $137,392.50 plus a 7% contingency of $9,617 for a total amount of $147,009.50.
The Volume Licensing Agreement allows the City to work with authorized resellers to purchase products or services, at fixed costs, through the applicable initial or renewal Enrollment term. The products and services include commonly used applications such as Word, Excel, PowerPoint, Access, Project, and Outlook. The licensing cost is based upon Microsoft’s annual subscription cost. The Microsoft Volume License agreement requires True-Up orders to account for changes in product usage and added users during the enrollment period and an annual True-Up Order or update statement must still be submitted during the annual order period.
On February 22, 2023, the Council approved a First Amendment (Agreement No. 2022- 178A) in the amount up to $92,276, which included additional $6,038 for contingency, to upgrade our Microsoft Volume licensing from M365 G3 to M365 G5 to provide more security to enable Multi-Factor Authentication, and Microsoft’s Intune to manage the increasing number of remote users.
DISCUSSION
The number of users increased over the past two years by thirty (30) users. According to Microsoft Licensing Subscription terms these additional true-up licenses need to be paid for the time used this fiscal year as well as through the end of the agreement of July 1, 2025. The True-Up cost for these additions totals $21,887.
Second Amendment - MS Office 365 Licensing Subscription February 14, 2024
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The True Up invoice from CompuWave utilizes contract pricing discounts under the County of Ventura Contract #8926 for the addition of 30 more users, and three additional licenses of Microsoft Project, for the remaining term of the agreement. For FY 2023/2024, and through FY 2024/2025 the cost increase is $21,887.
FISCAL IMPACT
Funds for Microsoft Office 365 Software Licensing Subscription of $21,687 are included in the FY 2023/24, in Information Systems Fund, Administration Account No. 530-5330- 453.32-01.
RECOMMENDATION
1. Authorize the City Manager to execute Second Amendment Agreement No. 2022- 178C based upon CompuWave’s invoice in the amount of $21,887; for a not to exceed total contracted amount of $261,172.50; and
2. Authorize City Manager to execute future change orders or documents as necessary up to the authorized contingency amount.
ATTACHMENTS
1. Agreement No. 2022-178
2. First Amendment Agreement No. 2022-178A
3. Second Amendment - CompuWave Invoice SB02102367 dated 1-3-2024 REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None