Agenda Item: 10
CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: May 13, 2025
SUBJECT: MICROSOFT ENTERPRISE LICENSE AGREEMENT
DEPARTMENT: Administrative Services
PRESENTER: Ryan James
RECOMMENDED ACTION
City Council:
1. Approve the use of a “piggyback” agreement using Riverside County Master Agreement #ITARC-00934 with Dell Inc. to enter into a three-year contract for the continued use of Microsoft products in the amount of $179,923, and authorize a ten percent contingency in the amount of $17,992 for potential new licenses, for a total contract amount not to exceed $197,915.
2. Appropriate funds from the General Fund (Fund 100) to Expenditure Account 1002200- 516101 in the annual ongoing amount of $18,000 beginning in Fiscal Year 2025-26, contingent upon the appropriation of funds in the annual budget for such fiscal years.
3. Authorize the City Manager or designee to execute all contracts and associated documents, subject to City Attorney approval.
BACKGROUND
The City of Santa Clarita (City) utilizes Microsoft (MS) software to operate desktop computers, servers, databases, applications, and email. The contractual agreement between the City and MS, known as an Enterprise Agreement (EA), grants licensed use of MS products and authorizes the City to use, connect, and receive support for Windows computers, Windows servers, SQL Server, Exchange email, Systems Center and Configuration Manager, Remote Desktop, and the Microsoft Developer Network. A typical EA lasts for three years, at which time the agreement is re-entered to allow the continued use and support of MS software. The existing agreement is set to expire on June 30, 2025, and was last approved by the City Council on June 28, 2022.
For over 16 years, the City has utilized an MS EA to ensure proper licensing of MS software as
well as the flexibility for growth as the organization expands. Through the EA, City computers are licensed to connect to Windows servers from desktop computers to share network resources, including storage, email, printers, as well as a centralized repository for managing user access and computer configurations.
In January 2024, the City Council approved an amendment to the EA to add licenses for the City’s part-time/temporary/seasonal staff (PTS), and account for the growth in full-time employees (FTE). In doing so, the number of EA licenses increased from 575 to 885. In doing so, FTE and PTS staff were properly licensed to be compliant with Microsoft’s licensing terms.
This item seeks City Council’s authorization to enter into a new MS Enterprise Agreement for three years for a contract total not to exceed $197,915, inclusive of a ten percent contingency for growth in potential new software licenses. There are several benefits of an MS Enterprise Agreement, such as Software Assurance that allows the City to upgrade to the latest version of any of the products managed under the agreement’s term. This allows the City to be on the latest versions of the covered MS software and benefit from the feature and security enhancements at no additional cost. Software Assurance also provides City staff with support, tools, training, and the ability to demo and test software prior to deployment.
The use of "piggyback" purchasing allows the City to place orders against a competitively awarded public agency contract. The City is using Riverside County Master Agreement #ITARC-00934, which was competitively solicited and awarded to Dell on September 10, 2024, allowing the City to license MS software. City staff finds this contract provides the most competitive pricing for licensing of MS products.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
Upon the approval of the recommended action, additional annual ongoing budget in expenditure account 1002200-516101 (General Fund 100) in the amount of $18,000 will be appropriated beginning in Fiscal Year 2025-26, contingent upon the appropriation of funds in the annual budget for such fiscal years.
ATTACHMENTS
Santa Clarita EA Renewal