DATE:
October 17, 2023
TO:
Paul Buddenhagen, City Manager
FROM:
Michael Parenti, Information Technology Director
SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Authorizing The City Manager To Issue An Initial Purchase Order In The Amount Of Fifty-Two Thousand Two Hundred Forty-Nine Dollars and Fifty-Two Cents ($52,249.52), As Well As Additional Purchase Orders To SHI Over The Next Three Years To Provide Microsoft Licensing As Needed In An Amount Not To Exceed Two Hundred Fifty Thousand Dollars ($250,000) Recommendation
Staff recommends the City Council adopt the above-titled Resolution authorizing the City Manager to issue purchase orders to SHI to provide the City with necessary Microsoft licensing. The initial purchase order will be in the amount of $52,249.52 with additional purchase orders up to a total not to exceed $250,000 over the next three years.
Background
In November 2022, the City named Xerillion Managed Cloud its Microsoft partner as part of the File Server Migration project and issued a purchase order for Microsoft licensing for one year. That agreement expires in November 2023, and the City wishes to renew its licensing agreement with Microsoft to continue the use of Azure, Windows and Office products including servers, email, spreadsheet, word processing, and file storage applications.
Discussion
The City solicited quotes from its existing partner as well as Dell Corporation and SHI. SHI is able to provide the government licensing required at a lower price than the other vendors.
The proposed purchase order agreement with SHI will allow the City to maintain flexibility in its license count and usage over the next three years. As the City’s needs change and head counts fluctuates, the Information Technology Department will have the flexibility to adjust licensing levels and features, therefore ensuring the City is only paying for licenses it needs and can respond in a timely manner to department requests. Because all Microsoft products are licensed under one umbrella contract it’s critical to maintain flexibility to be able to adjust as needed. The attached Purchase Order will cover the maximum expected amount of funds needed over the next three years.
This will allow the City to selectively add licenses for add-ons such as Microsoft Project, additional Azure sever instances, G5 Licensing security enhancements and Microsoft Teams dial tone service.
Fiscal Impact
The funding for the licensing is budgeted for in the Technology Fund Operating Expenses (670-77150).
Staff Communication with the Public
There has been no staff communication with the public.
Conflict of Interest
None identified.
Conclusion
Staff recommends the City Council authorize the City Manager to issue the attached Purchase Order agreement to SHI to provide the City with necessary Microsoft licensing in an amount not to exceed two hundred and fifty thousand dollars over the next three years.
PREPARED BY: Michael Parenti, Information Technology Director Approved and Forwarded to the
City Council of the City of Emeryville:
Paul Buddenhagen, City Manager
Attachments
Draft Resolution
Attachment A – SHI Year One Quote
Microsoft Licensing
City Council Meeting | October 17, 2023
City of Emeryville
CALIFORNIA
MEMORANDUM