Camarillo City Council
AGENDA REPORT
Date: July 9, 2025
To: Honorable Mayor and City Councilmembers
From: Greg Ramirez, City Manager
Submitted by: Mitchell Cameron, Director of Administrative Services/Chief Innovation Officer
Subject: Microsoft Office 365 Software Licensing Subscription Renewal Pricing Agreement No. 2025-114
BACKGROUND
On July 13, 2022, the City Council approved the City’s current Microsoft Volume Licensing Agreement (No. 2022-178).
Microsoft Office 365 software is one of the City’s most critical systems and includes Microsoft Excel, Exchange, OneDrive, OneNote, Outlook, PowerPoint, Publisher, SharePoint, Teams and Word. The City migrated to the Office 365 cloud-based platform subscription in 2019. The subscription-based service continues to allow the City to leverage new products as they are released without incurring additional costs.
Subscription-based licensing ensures the City’s business use of the Office Suite will evolve in real time with enhancements and maintenance to the software.
To ensure continued access to these vital tools and to enhance our technological capabilities, a new agreement is required. This renewal will account for an increased user base and incorporate newer Microsoft technologies that will boost security, simplify device management, and introduce artificial intelligence capabilities for greater efficiency.
DISCUSSION
The City uses the County of Riverside Agreement (contract No. 8084445) for Microsoft licensing because it offers a proven, cooperative purchasing framework widely adopted by public agencies across California to access Microsoft products and services. Since 2001, the County of Riverside has been the lead agency in managing a statewide Microsoft Master Agreement that provides software licensing across the State and to most government agencies. Over 900 government agencies utilize the existing County of Riverside Microsoft Master Agreement.
Microsoft Office 365 Software Licensing Subscription Renewal July 9, 2025
This agreement combines flexibility with cost savings, allowing each participating agency to create individual enrollments tailored to their specific needs while benefitting from discounted, volume-based pricing negotiated through statewide demand aggregation.
CompuWave was selected as the City’s Microsoft reseller through this cooperative agreement, which ensures discounted pricing and access to Microsoft’s full suite of government cloud services. Staff will continue to monitor service levels to ensure the City’s needs are met throughout the agreement term. Information Systems received a quote from CompuWave under the County of Riverside Agreement, for a new, three-year agreement extending through fiscal year 2027/28. This will guarantee pricing of $164, 682 annually for the next three years.
As outlined below, staff recommends Council approve Pricing Agreement 2025-114 in the amount of $494,046 and a 20% contingency for additional user licenses and other unforeseen costs for a total amount of $592,855. The proposed agreement reflects increased user demand and evolving cybersecurity needs. The 20% contingency accounts for potential mid-term adjustments such as staffing increases, expanded licensing, and additional device coverage that may arise over the next three years.
Fiscal Year Amount
FY 2025/26 $164,682
FY 2026/27 164,682
FY 2027/28 164,682
20% Contingency 98,809
Total $592,855
The City considers Microsoft to be proprietary and a perpetual software with no reasonable alternative. To expeditiously effectuate future agreement renewals, it is recommended that in its approval of the upcoming agreement, the City Council also authorize the City Manager to execute future amendments or agreements with CompuWave for Microsoft licensing in accordance with the pricing negotiated by the County of Riverside at time of renewal.
FISCAL IMPACT
Funds for the annual Microsoft renewal are included in the FY 2025/26 Information Systems Budget Account No. 530-5330-453.32-01. Future year costs will be included in the respective fiscal year’s annual budget.
CEQA DETERMINATIONS
City staff has determined, in accordance with Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines, that Microsoft licensing is not subject to Microsoft Office 365 Software Licensing Subscription Renewal July 9, 2025
CEQA review because it can be seen with certainty that there is no possibility that software renewals may have a significant effect on the environment.
RECOMMENDATION
1. Find that Microsoft licensing subscriptions are exempt from review under the California Environmental Quality Act (CEQA) pursuant to Section 15301 of the CEQA Guidelines; and
2. Authorize the City Manager to execute Pricing Agreement 2025-114 with CompuWave, in the amount of $494,046; and authorize a contingency in the amount of $98,809, for a total amount of $592,855; and
3. Authorize the City Manager to negotiate and execute future agreements, amendments, and purchase orders with CompuWave for Microsoft licensing in accordance with the pricing negotiated by the County of Riverside at the time of renewal.
ATTACHMENTS
1. Attachment 1 – 2025-114 Pricing Agreement
2. Attachment 2 – County of Riverside contract #8084445 REFERENCE MATERIALS – AVAILABLE FOR REVIEW AT CITY HALL None