TO:
VIA:
FROM:
DATE:
Placentia City Council
CITY COUNCIL
CITY ADMINISTRATOR
INFORMATION TECHNOLOGY MANAGER
MARCH 19, 2024
AGENDA REPORT
SUBJECT: RENEWAL AND UPGRADE OF MICROSOFT OFFICE 365 LICENSES TO
INCLUDE DEVICE MANAGEMENT THROUGH INSIGHT PUBLIC SECTOR FISCAL EXPENSE: $ 79,777.03 ANNUALLY FOR THREE YEARS
IMPACT: BUDGETED: $500,000.00(101523-6136) FOR SOFTWARE MAINTENANCE SUMMARY:
The City uses Microsoft Office 365 (0365) daily for its operations, utilizing products such as Outlook, Word, Excel, PowerPoint, OneDrive and Teams. The current subscription concluded year 3 of 3 in February of 2024 of its Microsoft Office 365 Enterprise Agreement. With the renewal, licenses are also being upgraded from 0365 to Microsoft 365 (M365) G1 and G3 licenses.
The cost of the three-year agreement has increased due to the additional features and needs of business services such as Mobile Device Management and Advanced Security, Microsoft's change in license model for software access, and reflection of the increase in additional City full- time staff throughout the past three years. This action will provide the City with Office 365 services and advanced threat protection, advanced reporting, access to Microsoft Entra ID (Azure Active Directory) and Microsoft's Device Management tool, Intune, for the next 3 years.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve the agreement to upgrade and renew the Microsoft Enterprise Agreement with Insight Public Sector utilizing the County of Riverside Microsoft Enterprise Master Agreement, for a three-year period, beginning March 1, 2024, through February 27, 2027 in the amount not -to -exceed $239,331.09; and
2. Authorize the City Administrator and/or his designee to execute all necessary documents in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
There is no specific Strategic Plan Goal or Objective associated with this Council action.
1.k.
March 19, 2024
City Council Agenda
March 19, 2024
DISCUSSION:
Under the proposed renewal agreement, licenses will be upgraded from 0365 to Microsoft 365 (M365) G1 and G3 licenses which includes the above mentioned, with advanced threat protection, reports, access to Microsoft Entra ID (Azure Active Directory) and Microsoft's Device Management tool, Intune.
The cost of the three-year agreement has increased due to the additional features and needs of business services such as Mobile Device Management and Advanced Security, Microsoft's change in license model for software access, and reflection of the increase in additional City full- time staff throughout the past three years.
The City will continue to utilize the current agreement known as the County of Riverside Microsoft Enterprise Master Agreement, which was used to purchase Microsoft products at a reduced rate.
Staff has reviewed and selected Insight Public Sector to replace SoftwareOne as the Value -Added Reseller due to better contract pricing and customer service. The City can contract with Insight Public Sector using the County of Riverside Microsoft Enterprise Agreement #PSA- 0001526/RIVCO-2020-RFQ-0000048 and benefit from the same terms and conditions. Under the City's Purchasing Policy and Procedures, this allows the City to procure these products without the need to engage in public bidding.
The renewal costs to upgrade and add additional Microsoft licenses from 0365 to M365 through Insight Public Sector is a fixed cost of $79,777.03 per year for three years. The total cumulative cost of this three-year Microsoft Enterprise Agreement is $239,331.09.
FISCAL IMPACT:
The City has sufficient funds in the General Fund, Information Technology Software Maintenance account to cover the recommended action.
Prepared by:
Daniel Chang
Information Technology Manager
Reviewed and approved:
ennife`r Lampman
Fine Director
Reviewed and approved:
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Ros nna Ramirez
Deputy City Administrator
Reviewed and approved:
Damien R. Arru a
City Administrator
City Council Agenda
March 19, 2024
Attachments:
1. County of Riverside Microsoft Agreement PSA-0001526/RIVCO-2020-RFQ-0000048
2. Insight Public Sector Licensing Quote