HomeMy WebLinkAbout05-21-2019 Item 09 - Microsoft Office 365 Renewal
Department Name: Administration and IT
Cost Center: 1101
For Agenda of: May 21, 2019
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Miguel Guardado, IT Manager
SUBJECT: MICROSOFT OFFICE 365 RENEWAL
RECOMMENDATION
1. Approve the contract renewals for Microsoft Office 365 Government Plan subscription
licenses (Attachment A) through the 2019-2021 Financial Plan; and
2. Per Municipal Code 3.24.060 E, authorize waiver of formal bids to purchase Microsoft
Office 365 subscription licensing through the cooperative agreement under the County of
Riverside Microsoft EA (PUARC-1518); or better pricing than a cooperative contract; and
3. Authorize the City Manager to approve related Purchase Order Requisitions through the
2019-21 Financial Plan.
DISCUSSION
Background
In 2016, Council approved the City migration to a Microsoft Office 365 subscription cloud-based
platform. Cloud based Microsoft Office 365 eliminates time-consuming upgrades every 5 years,
smooths costs, and prevents the City from falling behind in technology through a subscription
model of software maintenance. Rather than buying a traditional license upgrade every five
years, the City will pay a subscription fee that ensures the City’s business use of the Offic e suite
will evolve in real time with enhancements to the suite. Microsoft Office 365 also provides a
significant amount of cloud-based storage that will streamline some of the City’s storage needs.
The Microsoft Office 365 productivity software is one of the City’s most critical systems and
includes Microsoft Access, Excel, SharePoint, Skype, OneNote, Outlook, PowerPoint, Publisher
and Word with Microsoft Exchange Online.
The tools provided in the subscription service have allowed the City to adopt new ways of doing
business and provide better support to core services in addition to expanded collaboration
opportunities. A cloud-based subscription service also allows the City to leverage new products
as they are released such as Microsoft Forms and Microsoft Teams without additional costs. The
City’s current contract is expiring, and the City needs to renew to continue to use these
applications.
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Item 9
Previous Council or Advisory Body Action
June 14, 2016 Council Agenda Report
Public Engagement
This item is on the agenda for the May 21, 2019 City Council meeting and will follow all
required posting and notification. The public may comment on this item at or before the
meeting.
ENVIRONMENTAL REVIEW
• The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec.
15278.
FISCAL IMPACT
Budgeted: Yes, Budget Year: 2019
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund $161,422 0 161,422
State
Federal
Fees
Other:
Total $161,422 0 $161,422
Funding for the current fiscal year was approved through the 2017-19 Financial Plan CIP budget
and the 2018-19 budget appropriation. There is a Significant Operating Budget (SOBC) Request
for the 2019-21 Financial Plan to move the funding for this project into an operating account as it
is not considered a capital cost.
ALTERNATIVES
Do not renew the annual subscription and migrate the email infrastructure back into the City and
return to a basic Microsoft Office Suite CIP upgrading every 5 years. At the 5-year point, the
software would lack sufficient functionality to support the future City’s business needs. In
addition, City staff would go through steep learning curves in migrating to new software
versions. This would not include Skype, SharePoint, collaborative editing tools.
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Item 9
Attachments:
a - City of San Luis Obispo EA Renewal Quote 4-25-19
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Item 9
Quote Number: CLOEA42519
Quote Expires: 6/30/2019
Customer:City of Luis Obispo
Contact: Miguel Guardado Remit To:
Customer #: 2332474
Email: mguardad@slocity.org Federal ID:
Date of Issue:April 25, 2019
EA Renewal Pricing
Notes Mfr #Quantity Unit Price Ext. Price
EMS E3 Gov Annual
Subscription AAD-32907 540 $90.90 $49,086.00
O365 E3 Gov Annual
Subscription AAA-11894 540 $208.03 $112,336.20
$161,422.20
$161,422.20
$161,422.20
Notes: Purchase is non-taxable as quoted. $484,266.60
Tax 0.00%$0.00
Price of EA, SA Renewal with 3 year pricing shown and annual costs; Previous EA# 8107863 $484,266.60
EA Renewal with 540 users of EMS E3 and O365 E3 Gov Subscription
Year 3 True Up, required prior to EA renewal
Signed EA Renewal Paperwork & PO for Year 1 EA payment $161,422.20 due before 6/30/2019
O365GCCE3 ShrdSvr ALNG SubsVL MVL PerUsr
Dell Software - Customer Confidential
EA Renewal Quotation
Product Description
Enterprise
EntMobandSecE3Full GCC ShrdSvr ALNG SubsVL MVL PerUsr
Year 1 Payment
Invoice Date: Enrollment Effective Date or if received after Enrollment Effective Date upon our acceptance
Year 2 Payment
Invoice Date: 1st Anniversary Date
Total 3 Year Price
Year 3 Payment
Invoice Date: 2nd Anniversary Date
Product Subtotal
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Item 9
Quote Prepared By: Gerard Ear
Software Solutions Specialist
Gerard_Ear@Dell.com
512-723-4810
Rev. 5/2011
"1) Customer’s purchase is subject to Dell’s Terms and Conditions of
Sale found at www.dell.com, unless Customer has a separate purchase
agreement withDell.
2) Sales/use tax is based on the “ship to” address on your invoice.
Please indicate your taxability status on your purchase order.If exempt,
Customer must have an Exemption Certificate on file.
3) If you have a question re: your tax status, please contact your Dell
Software sales representative listed above. Shipments to California: for
certain products, a State Environmental Fee of up to $10 per item may
be applied to your invoice. Prices do not reflect this fee unless noted.
For more information, refer to ww.dell.com/environmentalfee."
4) All product descriptions and prices are based on latest
information available and are subject to change without
notice or obligation.
5) All prices are based on Net 30 Terms. If not shown,
shipping, handling, taxes, and other fees will be added at
the time of order, where applicable.
6) Customer understands and acknowledges that all
warranties,
representations and returns are subject to the
manufacturer, publisher or distributor guidelines.
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