STAFF REPORT
18 Meeting Date:
August 12, 2025
SUBJECT: MICROSOFT ENTERPRISE LICENSING AGREEMENT
RECOMMENDATION: It is recommended that the City Council:
1. Authorize the City Manager to execute a three-year service agreement, in a form approved by the City Attorney, with CDW for Microsoft Enterprise Licensing in an amount not to exceed $482,400 per year, and a total not to exceed $1,447,200 for the contract term; and
2. Determine that the action does not constitute a “project” within the meaning of the California Environmental Quality Act.
Appropriation: Fund:
Submitted By: Jeremy Frimond Approved: Dave Kiff
Jeremy Frimond, Assistant City
Manager
Dave Kiff, City Manager
SUMMARY OF THE MATTER
Staff recommends that the City Council authorize the City Manager to execute a three-year agreement with CDW for Microsoft Enterprise Licensing, in an amount not to exceed $482,400 annually, using the County of Riverside Cooperative Agreement. The City’s previous three-year license expired on July 31, 2025. The renewal will ensure uninterrupted access to software services, including Microsoft Office 365, Azure, Outlook, and related products.
DISCUSSION
Pricing was secured through the County of Riverside Cooperative Agreement. Pursuant to Laguna Beach Municipal Code Section 2.30.050, the City is authorized to procure goods and services through cooperative purchasing programs or contracts competitively bid by other public agencies. Accordingly, this procurement qualifies for an exemption from the standard competitive bidding process.
To validate pricing and ensure value, staff solicited three quotes from different vendors. Although one vendor submitted a lower quote, the City leveraged that pricing to negotiate a $10,000 reduction with CDW, matching the lowest quote. CDW is the City’s current provider for Microsoft licensing and has performed well under the previous agreement. Continuing service with CDW will ensure continuity, and staff believes the vendor will continue to deliver reliable service to the City.
MICROSOFT ENTERPRISE LICENSING AGREEMENT
September 9, 2025
FINANCIAL ANALYSIS
Funding for this agreement is included in the Fiscal Year 2025-26 Budget. No additional appropriation is required.
ENVIRONMENTAL ANALYSIS
This action is not subject to the California Environmental Quality Act (“Public Resources Code section 21000 et seq.) (“CEQA”) because it does not qualify as a “project” under CEQA. The State CEQA Guidelines provide that “[a]n activity is not subject to CEQA if … the activity is not a project as defined in Section 15378.” (State CEQA Guidelines, § 15060(c).) Here, the action does not qualify as a “project” as defined in State CEQA Guidelines section 15378 for at least two different reasons. First, Section 15378 defines a project as an activity that “has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” (State CEQA Guidelines, § 15378(a).) Here, the action is to execute a software agreement for the organization, which will not result in any reasonably foreseeable impacts. Accordingly, the action is not a “project” subject to CEQA. (State CEQA Guidelines, § 15060(c).) Second, Section 15378 explicitly excludes from its definition of “project” the following: “organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.” (State CEQA Guidelines, § 15378(b)(5).) The action constitutes an administrative activity that will not result in a physical change in the environment, and it therefore is not subject to CEQA.
ATTACHMENTS
1. Proposal from CDW (Pg. 3)
2. County of Riverside Cooperative agreement (Pgs. 4-69) Report Prepared By: Coordinated With:
Jerry Soto, IT Manager