City Council Agenda Report
Meeting Date: September 16, 2025
From: Brian Saeki, City Administrator
Department: City Administration
Submitted by: Sara Sandoval, Senior Administrative Assistant Subject
Microsoft Enterprise License Agreement (ELA) and Purchases from Insight Public Sector Recommendation
A. Approve a Microsoft Enterprise License Agreement (ELA) and associated purchases of Microsoft Licenses, in substantially the same form as submitted, from Insight Public Sector for Citywide information technology operations, for an amount not-to-exceed $718,399.23 for a three-year term; and
B. Approve additional funds with Insight in the amount of $65,000 for additional purchases that may be necessary from this vendor during the 2025-26 Fiscal Year.
Background
The Information Technology (IT) Division is responsible for Citywide information technology operations and support services in several key areas: applications, enterprise computing, Geographic Information Systems (GIS), network and wireless, program and project management, telecommunications, phone, and field support. At the core of IT operations is a host of applications and products that are used by every employee of the City, many of which are provided by Microsoft. Microsoft products used by the City include: Exchange Server for all email services; Windows Server for all enterprise operating systems; and SQL Server for all application databases. Additionally, the Microsoft Windows desktop operating systems are installed on all employee desktop computers and laptops and include the full Microsoft Office Suite of products (Outlook, Word, Excel, PowerPoint, Access, and Visio). The proposed Microsoft Enterprise License Agreement (ELA) will allow staff to continue to use the various Microsoft applications and products that are essential to the City’s daily operations. In addition, it will facilitate the transition of the City’s Microsoft 365 G3 license to a G5 license, with advanced security and compliance features.
On December 20, 2022, the City Council approved an Enterprise License Agreement with Microsoft for a coverage period of three years from October 1, 2022, to September 30, 2025.
With the current agreement's expiration forthcoming, staff is seeking approval to enter into a new ELA for three years. For service continuity, the contract coverage is proposed from October 1, 2025, through September 30, 2028. Microsoft software is provided by third-party vendors and cannot be acquired directly from Microsoft. As such, the licenses associated with the ELA would be purchased from Insight Public Sector (Insight).
The County of Riverside issued a Request for Proposals in 2024 for Microsoft products and services and selected Insight as the company with the most competitive pricing and best suited to provide Microsoft software licenses, software license upgrades, and license tracking services.
Under the terms of the RFP and resulting contract, similar pricing is also offered to other government agencies in the State of California. Staff recommends approval of a Vernon contract with Insight based upon the terms and conditions offered to the County of Riverside (ITARC930). Pursuant to Vernon Municipal Code (VMC) Section 3.32.110(A)(5), the agreement with Microsoft and associated purchases from Insight requested herein are exempt from competitive bidding and competitive selection as the City's Finance Director is in agreement that the proposed agreement with Microsoft and purchases via Insight would be piggybacking on the County of Riverside's agreement referenced above. Based on the products needed, Insight has quoted an annual price of $239,466.41 for a total of $718,399.23. The quote will be provided to the City Council under separate cover and will not be included in the public Agenda Packet as it contains confidential information.
As a reseller of various software and equipment utilized by IT that consistently provides competitive pricing and/or offers government pricing, it is very likely that IT may need to make future purchases from Insight. Accordingly, staff is requesting approval of $65,000 in funds to be used for such purchases with Insight. Any purchases made in this manner would be procured in compliance with the City's established purchasing processes. Pursuant to VMC Section
3.32.030(B), City Council approval is required if, in the 12 months preceding the effective date of the proposed new, renewed or otherwise amended contract, the City has paid or awarded the proposed vendor more than $100,000 pursuant to contract(s) with the vendor. In the last 12 months, the City has paid Insight approximately $217,619.18.
The attached Enterprise License Agreement and all related forms have been reviewed and approved as to form by the City Attorney's Office.
Fiscal Impact
The total fiscal impact of purchases from Insight is $783,399.23. Sufficient funds in the amount of $718,399.23 for Microsoft licenses is available in the General Fund, Information Technology Division, Repair and Maintenance Account No. 011-010-110-529110 in Fiscal Year 2025-26 and will be budgeted in subsequent Fiscal Years. Purchases made utilizing the additional funds approved of $65,000 will be allocated to the appropriate IT or VPU Enterprise Account Number.
Attachments
1. Microsoft Enterprise Agreement
2. Riverside County Insight Agreement ITARC-00930