TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:May 9, 2023
SUBJECT: Microsoft Licensing Renewal
RECOMMENDATION:
1. Approve “piggy-back” onto County of Riverside’s agreement #8084445 for renewal of annual Microsoft licensing maintenance agreement with award to Dell Technologies for the period of June 1, 2023, to May 31, 2026, in a not-to-exceed amount of $770,000 for the term of the agreement.
2. Authorize expenditure in an amount not-to-exceed $770,000 from A/C #001- 3410-612-4300 (General Fund, Computer Software Maintenance) to pay for licenses in FY 2022-23, FY 2023-24, FY 2024-25, and FY 2025-26.
3. Find that this action is not a project as defined under the California Environmental Quality Act.
FINANCIAL IMPACT:
No Additional Funding Requested. The annual cost of $257,000 is included in the Proposed FYs 2023-2025 General Fund Budget. Approximately 10 percent in extra services has been added to the annual cost amount for potential unanticipated licensing requirements. Budget for the annual Microsoft licensing maintenance agreement will be included in future budget cycles to pay the cost in three annual installments.
BACKGROUND:
The City’s Information Technology Division is responsible for the licensing of the City’s computer software and maintaining software maintenance contracts for the City’s major applications. The Microsoft applications that support City staff are purchased from the State of California selected agencies through a Software Cooperative Agreement (SCA). Due to regulations implemented by the Microsoft Corporation, programs owned by Microsoft are purchased and licensed via
Microsoft Licensing Renewal
May 9, 2023
contracts that are awarded and administered by the State of California, Department of General Services. These SCA’s provide the City with user licensing and software updates to Microsoft programs.
The previously approved three-year cycle of licensing fees is up for renewal and this piggy-back agreement will allow maintenance of these products to continue through 2026.
DISCUSSION/ANALYSIS:
Microsoft works with the State of California, Department of General Services to ensure lower costs of licensing fees when local cities use certain authorized resellers. Municipal Code Section 3-10.203 (b) authorizes the City to piggy-back onto or join into an existing written purchase contract being processed by another local, state, or federal governmental agency. Staff recommends the City piggy- back onto the County of Riverside’s agreement with Microsoft #8084445 via Dell Technologies (Attachment #1 and #2) to ensure the City receives the lower cost benefits associated with this program.
Over the term of the Enterprise Agreement, any additional hardware or software changes are reconciled through a process known as “True Up”, which allows the City to increase or decrease the license subscription counts. This may account for unscheduled licensing purchases.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Colleen Hernandez, Information Technology Analyst III Attachments:
Attachment #1 – County of Riverside's Agreement
Attachment #2 – County of Riverside's Amendment to Agreement FIN:190-10\ch\H:\COMMON\Council\2023\InformationTechnology\050923 Microsoft Licensing Agreement StaffReport.docx