Agenda Item
City Council
Item #: 3.7. 3/28/2023 File #: 23-0206
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Susan Galvan, Assistant City Manager
1. SUBJECT
Authorize the purchase of additional Microsoft enterprise maintenance licenses from Insight Public Sector.
2. SUMMARY
The City purchased an additional one hundred Microsoft 365 enterprise licenses in the second year of the 3-year enterprise license agreement with Microsoft in response to additional growth usage needs. The license costs of $18,441.00 for the 2nd Microsoft enterprise agreement year were prorated for the remaining number of months of use within the 2nd year term. The $18,441.00 cost fell below the threshold requiring City Council approval. However, the 3rd year term cost for the one hundred additional licenses is $34,044.50 requiring City Council approval.
3. RECOMMENDED ACTION
Approve the purchase of one hundred additional Microsoft 365 enterprise maintenance licenses for the 3rd year of the Microsoft Enterprise Agreement for $34,044.50 from Insight Public Sector.
4. FISCAL IMPACT
The total expenditure for this purchase is $34,044.50 and will be funded through Information Systems (780).
5. STRATEGIC PLAN GOALS
Goal 4: Provide outstanding public service
c: Enhance technology to improve public accessibility to information and services.
6. DISCUSSION AND BACKGROUND
The City Council approved a 3-year Microsoft Enterprise License Agreement (ELA) for $986,402 on March 9, 2021. The agreement allows for making adjustments for additional licenses inside the 3- year term. The Microsoft ELA identifies Insight Public Sector as the reseller of the software for the agreement.
Due to City staff growth and differing usage of software and differing treatment of online licenses by Microsoft there was a need to purchase an additional 50 Microsoft 365 enterprise license in March of 2022 for $15,604.00. This was for a prorated use within the 2nd ELA year of nearly 11 month’s license use (specifically 4/1/2022 - 2/28/2023). Similarly due to growth an additional 50 Microsoft 365 enterprise licenses were purchased in December 2022 for $2,837.00. This was for a prorated City of Orange Printed on 3/22/2023Page 1 of 2
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Item #: 3.7. 3/28/2023 File #: 23-0206
365 enterprise licenses were purchased in December 2022 for $2,837.00. This was for a prorated use within the 2nd ELA year of approximately 2 months (specifically 1/1/2023 - 2/28/2023). For the 3rd ELA year the cost for the additional one hundred licenses are $34,044.50.
The already approved agreement with Microsoft for the 3rd year is $328,800.60. The additional purchase of $34,044.50 will increase the overall 3rd year cost to $362,845.10.
7. ATTACHMENTS
· Insight Public Sector Quote 0225758146
City of Orange Printed on 3/22/2023Page 2 of 2
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