City Council Staff Report Page 1 of 2 January 27, 2026
Staff Report
Agenda Item No. 3.8
DATE: January 27, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Approving the Renewal of a Microsoft Enterprise Agreement with Softchoice Corporation, Inc. and Authorizing the City Manager to Execute the Agreement
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a Resolution approving the renewal of a Microsoft Enterprise Agreement with Softchoice Corporation, Inc., for a three-year term, in a not-to-exceed aggregate sum of $521,603.52 and authorizing the City Manager to execute the Agreement in a form approved by the City Attorney. The Microsoft Agreement licenses the City’s use of the Office 365 cloud tenant platform for 342 users and the on-premise use of the Microsoft operating systems and software specified in the Agreement. The annual cost of $173,867.84 has been budgeted for FY 2025–2026, with future costs to be appropriated in subsequent budgets. Approval ensures continued productivity, security, and compliance for City operations.
STRATEGIC PLAN ALIGNMENT
Although this agenda item does not align with a specific Strategic Plan goal, approval will support staff productivity through a suite of critical office tools.
BACKGROUND
Union City maintains a Microsoft Enterprise Agreement for all Microsoft products, including Windows OS, Remote Desktop, SQL Server, and Office 365. The Office 365 suite includes Exchange email with Threat Protection, SharePoint Online, Teams, OneDrive, Advanced Security, and Office applications such as Outlook, Word, Excel, Access, PowerPoint, Visio, and OneNote.
The most recent renewal, which occurred in January 2023, provided licenses for 324 users at a total cost of $438,157.83 over a three-year term. Additionally, in August 2025, the City incorporated P2 Entra Identity Protection for all users at an expense of $4,008.00.
This service enhanced visibility and delivered automated identity protection for users accessing cloud services through Microsoft Azure SSO.
Agenda Item No. 3.8
City Council Staff Report Page 2 of 2 January 27, 2026
DISCUSSION
The Microsoft agreement authorizes the use of the Microsoft cloud platform, Office 365, and software to manage the City's servers and client computers. This includes all Windows operating systems for City-owned desktops and laptops, all Windows server operating systems for on-premise servers, SQL database software used by the City's financial application, Tyler Munis, and other database applications, as well as the full suite of Office 365 applications employed by all City employees. The Office 365 applications encompass Exchange email with Threat Protection, SharePoint Online, Teams, OneDrive cloud storage, Advanced Security, and the complete suite of Office applications (Outlook, Word, Excel, Access, PowerPoint, Visio, and OneNote) installed on all city computers.
The new agreement increases the user license count by twelve (12) G3 standard licenses and eight (8) advanced G5 licenses. The additional standard licenses support the increased utilization of annuitants and contract staff by departments. The advanced G5 licenses have been included to facilitate the management of AI tools and provide auditing capabilities for ITS administrators. The Microsoft agreement is administered through Softchoice Corporation, Inc., a certified Microsoft partner. Softchoice is a leading technology solution and service provider in North America.
FISCAL IMPACT
The $173,867.84 annual cost of this service agreement was added and approved in the FY 2025-2026 budget. As there are sufficient funds budgeted to cover the cost of this service agreement, there will be no fiscal impact to the FY 2025-2026 Adopted Budget.
The cost of the FY 2026-2027 and FY 2027-2028 service agreements will be appropriated as part of the biennial budget process.
RECOMMENDATION
Staff recommends that the City Council adopt a Resolution approving the renewal of a Microsoft Enterprise Agreement with Softchoice Corporation, Inc., for a three-year term, in a not-to-exceed aggregate sum of $521,603.52 and authorizing the City Manager to execute the Agreement in a form approved by the City Attorney.
Prepared by: Mario Vallejo, Director of Information Technology Submitted by: Mario Vallejo, Director of Information Technology Attachments
1. Draft Resolution
2. Exhibit A – Softchoice Quote