City Council
259 N. Wilma Avenue
Ripon, CA 95366
MEMO
To: Honorable City Council
From: Daniel Sauer, Chief of Police
Date: 08/19/2026
Subject: Service Agreement - CDW Government, LLC
RECOMMENDED ACTION:
Approve and authorize the Mayor to sign an agreement, once approved by the City Attorney, with CDW Government, LLC for a Microsoft 365 subscription (User Profile/Identity/Email System), for 110 user licenses in the annual not to exceed amount of $39,385.65 and approve and authorize Ric Small with Waypoint Network Solutions to perform email data migration services in the not to exceed amount of $20,000 (funding source: General Fund).
BACKGROUND:
In September 2025, the City experienced a critical failure of its on-premises email server, resulting in a complete outage of email services and disruption to daily operations, including potential impacts to public safety communications. While service was restored, the incident demonstrated that the City’s current system is no longer reliable. The existing platform is aging, unsupported, and increasingly fragile, continuing to rely on it is not a sustainable option. The City must either proactively migrate to a modern system now or accept the likelihood of a future failure with significantly greater operational and financial consequences.
The City's current technology environment does not fully meet the security requirements established by the Criminal Justice Information Services (CJIS) Security Policy. The Police Department is required to implement security controls such as multi-factor authentication (MFA), audit logging, and secure identity and access management to protect criminal justice information. Due to technical limitations of the existing environment, these safeguards cannot be consistently implemented.
As a result, the City is not able to fully comply with current CJIS security requirements, increasing the risk of unauthorized access to sensitive information and potential impacts to the Department's ability to access criminal justice systems. Many neighboring law enforcement agencies have already transitioned to modern identity and access management platforms that include MFA and other required security controls as standard practice. Implementing Microsoft 365 will enable the City to meet these security requirements, improve the protection of sensitive information, and support continued access to critical law enforcement systems.
Additionally, San Joaquin County is scheduled to implement updated versions of the applications used by the Police Department for prisoner booking and arrest warrant processing in September 2026. These applications will require Microsoft 365-based identity management and multi-factor authentication (MFA) for user access. Without Microsoft 365, Police Department personnel will be unable to authenticate to these systems, preventing access to applications that are essential to daily law enforcement operations.
DISCUSSION/ANALYSIS:
The City of Ripon is seeking to implement Microsoft 365 as a secure, cloud-based identity and productivity platform for City and Police Department staff. Implementation will provide the user authentication and access management capabilities necessary to access San Joaquin County applications essential to daily Police Department operations and will support compliance with California Department of Justice (DOJ) and Criminal Justice Information Services (CJIS) security requirements. Additionally, Microsoft 365 will replace the City's aging on-premises email server with a modern cloud-based solution, reducing information technology maintenance requirements, improving system reliability, enhancing cybersecurity, and eliminating the need to maintain physical email server infrastructure. The project will also ensure the Police Department can continue to access San Joaquin County's updated booking and warrant processing applications, which will require Microsoft 365-based authentication beginning in September 2026.
The proposed Microsoft 365 licensing agreement will be procured through the City of Riverside's competitively awarded Microsoft Master Agreement utilizing the City's cooperative purchasing authority under Ripon Municipal Code § 3.20.130 and Government Code § 6502.
The City's Purchasing Ordinance expressly authorizes the use of joint procurements, cooperative purchasing programs, and piggyback procurements with other public agencies when advantageous to the City. Utilizing the Riverside Master Agreement eliminates the need to conduct a separate competitive solicitation while allowing the City to obtain competitively established pricing and contract terms.
Microsoft 365 is a subscription-based service with licensing costs assessed on a per-user, permonth basis, depending on the license type assigned to each user. Currently, these subscription services are not subject to California sales tax. However, effective January 1, 2027, changes to California tax law are expected to make certain electronically delivered software subscriptions taxable.
Following a review of Microsoft licensing options and available features, it was determined that Police Department staff require Microsoft 365 G5 licenses, City Hall staff require Office 365 G3 licenses, and service email accounts require Exchange Online email-only licenses. The associated costs are as follows:
Description Quantity Unit Price Annual Extended Price
G5 Licenses – Police Department 41 $657.36 $26,951.76
G3 Licenses – City Hall 36 $277.14 $9,977.04
Service Accounts – Exchange Only 33 $74.45 $2,456.85
Annual Cost Summary $39,385.65
Waypoint Network Solutions will provide professional services to migrate the City's email data from the existing on-premises email server to the new Microsoft 365 cloud environment. Due to the volume of email data, the migration process requires extracting data from the existing server, staging it for transfer, and importing it into the cloud-based platform. This process is timeintensive and requires continuous monitoring to ensure data integrity and to promptly address any issues that may arise during the migration.
Waypoint Network Solutions has provided a quote of $20,000 for these migration services based on the estimated time required to complete the project. If unforeseen circumstances increase the level of effort beyond the quoted estimate, Waypoint Network Solutions will notify the City and obtain approval before exceeding the authorized amount.
In addition to addressing immediate operational and security needs, the proposed procurement utilizes a competitively awarded cooperative purchasing agreement, allowing the City to obtain favorable pricing without conducting a separate competitive solicitation. Staff believes this investment is necessary to maintain reliable City services, support public safety operations, reduce long-term infrastructure maintenance, and position the City for future technology needs.
Accordingly, staff recommends that the City Council approve the proposed Microsoft 365 licensing agreement and associated migration services.
FISCAL IMPACT:
The fiscal impact will be $59,385.65, which is summarized below:
Microsoft 365 annual subscription for user licenses: $39,385.65 Waypoint Network data migration services (one time cost): $20,000 Funding source: General Fund.
Attachments:
1. Way Point Solutions Scope of Work