DATE: July 21, 2025
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
FROM: Diane Pitman, Administrative Services Director
Rob Lasky, IT Manager
DEPARTMENT: Administrative Services
SUBJECT: 3-YEAR MICROSOFT ENTERPRISE AGREEMENT,
PURCHASED THROUGH DELL, FOR A TOTAL AMOUNT
NOT-TO-EXCEED $394,675.84
RECOMMENDATION
It is recommended that the City Council approve the attached resolution authorizing the Mayor to execute a three-year renewal of the Microsoft Enterprise Agreement (“EA”) through Dell in an amount not to exceed $394,675.84.
EXECUTIVE SUMMARY
The City’s current Microsoft EA comes to an end on July 30, 2025. The proposed agreement for City Council consideration will provide the City with consistent pricing for Microsoft software for the next three (3) years for a total amount not to exceed $394,675.84.
BACKGROUND/ANALYSIS
The City of Foster City has been using Microsoft software for at least 30 years. Over those years, the City has used various licensing models to procure the required licenses to use the software.
This EA is based on a Cooperative Purchasing Agreement negotiated by the County of Riverside which provides substantial discounts compared to retail pricing for the City’s Microsoft licensing needs. The IT Division also considered another cooperative
agreement (negotiated by the California Department of Technology). That contract had less flexibility in which packages could be chosen, which would have resulted in higher costs.
The Microsoft EA has been beneficial in helping the City standardize its server and productivity software, and provides maintenance benefits, upgrade rights, cloud-based services, technical support, online training, and simplifies license management to ensure the City is consistently in compliance with Microsoft.
In this renewal, staff is recommending to include a G5 Security add-on that will unlock many security features that will help protect both the City’s internal network as well as cloud-based email and file storage.
The not-to-exceed amount includes three (3) annual payments to cover the current licensing ($119,598.74 x 3) plus an annual 10% contingency ($11,959.87 x 3) to cover any additional licensing that may be needed to purchase during the agreement term.
California Environmental Quality Act
Not Applicable
FISCAL IMPACT
Funding is budgeted and available for the Microsoft licensing in the approved FY 2025- 2026 Information Technology (IT) budget. Future year’s EA payments will be requested in the IT operating budget for those respective years.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Innovation
ATTACHMENTS:
Attachment 1 - Resolution
Attachment 2 - Agreement
Attachment 3 - Dell Quote