For City Council Meeting [December 12, 2023]
TO: Honorable Mayor and City Council
APPROVAL: Henry Garcia, Interim City Manager
FROM: Jonathan Ballard, Information Technology Manager
Title
Request City Council to: (1) Approve entering into a new 3-year agreement with Microsoft for the Enterprise License Agreement via the "Riverside EA." (2) Award a Purchase Order to Dell Marketing L.P., of Round Rock, TX in an amount not to exceed $ $125,190.76 annually for a total of $375,572.28 for the Microsoft Enterprise Agreement, and authorize staff to issue annual purchase orders to renew the enterprise agreement each fiscal year with any applicable "true-up" adjustments thereafter. (3) Authorize the City Manager or designee to Execute All Documents. (ACTION)
Body
BACKGROUND
The City of Rialto has used Microsoft systems and programs for more than twenty years. In December of 2020 the City was able to enter into a three-year EA (Enterprise Agreement) with Microsoft which is now approaching its expiration date. Staff is requesting to renew our Microsoft EA by utilizing the cooperative purchasing program established by the County of Riverside and known as the Riverside EA. Continuing to acquire our software through the Enterprise Agreement will allow the City to have access to the latest software releases as soon as they are available. The City is also able to standardize on a single platform to best insure security, interoperability, and licensing integrity.
ANALYSIS/DISCUSSION
The Microsoft Enterprise Licensing Agreement negotiated by the County of Riverside, as the result of their solicitation process has been used by more than 900 organizations in the State of California. This program allows cities like Rialto to purchase at the same price point as the County of Riverside. The enterprise agreement allows the City to pay a flat annual fee and subscribe to the needed software and licensing platforms without paying additional money for releases and updates.
Pursuant to the provisions of Chapter 2.48.430 of the Municipal Code, The city council may authorize the acquisition of supplies or services through a cooperative purchasing agreement or program, or by using a competitively awarded agreement of another local, state, or federal government agency or joint powers authority made up of government agencies to obtain the same supplies, equipment or services at the same or lower prices (commonly referred to as "piggybacking") utilizing competitive bidding procedures that accomplish the purpose and intent of competitive bidding requirements of this chapter.
ENVIRONMENTAL IMPACT
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has the potential to result in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3 in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney has reviewed and approved this staff report.
FINANCIAL IMPACT
Operating Budget Impact
Sufficient funding is budgeted and available for the annual licensing costs of $125,190.76 for a total of $375,572.28 in the I.T. Contract Services account 10102152-52011.
Capital Improvement Budget Impact
There is no impact to the Capital Budget with the approval of this agreement.
Licensing
If applicable, prior to execution of the contract, the vendor shall submit a business license application and pay all associated taxes and fees.
RECOMMENDATION
Staff recommends that the City Council (1) Approve entering into a new 3-year agreement with Microsoft for the Enterprise License Agreement via the "Riverside EA." (2) Award a Purchase Order to Dell Marketing L.P., of Round Rock, TX in an amount not to exceed $125,190.76 annually for a total of $375,572.28 for the Microsoft Enterprise Agreement, and authorize staff to issue annual purchase orders to renew the enterprise agreement each fiscal year with any applicable "true-up" adjustments thereafter. (3) Authorize the City Manager or his Designee to Execute All Documents.