HomeMy WebLinkAboutE.6 - Staff Report - Microsoft EA Renewal Annual Increase CONSENT ITEM
E-6
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MIKE GUADAGNINO, DIRECTOR OF INFORMATION TECHNOLOGY
DATE: MAY 5, 2025
SUBJECT: REQUEST TO APPROVE ANNUAL RENEWAL INCREASE FOR EXISTING
3-YEAR MICROSOFT ENTERPRISE AGREEMENT (EA) INVOICED BY DELL
INC.
BACKGROUND:
The City currently has a 3-year Microsoft Enterprise Agreement (EA) from May 31, 2024 through
May 31, 2027 invoiced by Dell Incorporated. This licensing and software assurance agreement
covers all Microsoft products currently in use by the City. This will be the City’s second annual
renewal under the current agreement; however, the annual cost has increased due to the purchase
of additional licenses.
RECOMMENDATIONS:
Staff recommends that the City Council take the following actions:
1) Approve the annual renewal increase on the existing 3-year Microsoft Enterprise
Agreement (EA) from $176,122.74 to $189,821.94 annually; and
2)Authorize the City Manager or his designee to approve remaining renewals of existing
3-year Microsoft Enterprise Agreement (EA) for licensing and software assurance in the
amount of $189,821.94 annually.
ANALYSIS:
The City has standardized on Microsoft products for its desktop and server operating systems,
productivity and email software, and SQL database solutions. Licenses and software assurance for
Approved
City Council
May 5, 2025
Microsoft Enterprise Agreement Annual Renewal Increase
May 5, 2025
Page 2
these products are renewed annually. To enhance security, Microsoft now requires individual user
credentials and accounts to be assigned to all users, regardless of employment status. As a result,
the City was required to purchase an additional 40 licenses to accommodate part-time employees,
reduce reliance on shared mailboxes, and support a higher volume of new hires.
FISCAL IMPACT:
The annual cost of the existing 3-year Microsoft Enterprise Agreement (EA) has increased from
$176,122.74 to $189,821.94, reflecting a difference of $13,699.20. Funding for this renewal
increase difference of $13,699.20 is included in the respective FY 2024-25 budget savings under
the Information Technology operating accounts of 48-49-930-000-6504 ($6,849.60), and 48-49-
942-000-6504 ($6,849.60).
Prepared by: Reviewed by:
Elizabeth Guardado Michael Guadagnino
Management Analyst Director of Information Technology
Reviewed and Approved by:
Sergio Gonzalez
City Manager
Attachments:
1) Microsoft EA Renewal Quote
Sam Andrews
sam.andrews@dell.com
512.720.4469
Customer: City of Azusa
Contract: Riverside County Master Agreement - PSA-0001524 (8084445)Date of Issue:4/22/2025
Microsoft Enterprise Agreement (EA) #: 51374188 Quote Expires:5/31/2025
Product Description Mfg#Quantity Unit Price Ext. Price
Project Standard ALng SA 076-01912 9 $126.05 $1,134.45
SQL Server Standard Core ALng SA 2coreLic 7NQ-00292 9 $634.22 $5,707.98
Visio Professional Alng SA D87-01159 3 $108.13 $324.39
Visual Studio Pro with GitHub ALng SA QEK-00003 1 $302.06 $302.06
Win Server DC Core ALng SA 2coreLic 9EA-00278 83 $123.66 $10,263.78
Win Server Standard Core ALng SA 2coreLic 9EM-00270 40 $19.00 $760.00
Annual Payment Section 1:$18,492.66
Product Description Mfg#Quantity Months Unit Price Ext. Price
Enterprise Online Services Products
O365 G3 GCC Sub Per User AAA-11894 500 12 $20.13 $120,780.00
EMS G3 GCC ALng Sub Per User AAD-32907 500 12 $8.41 $50,460.00
Additional Online Services Products
Teams AC with Dial Out US/CA GCC Sub Add-on (Audio Conferencing)NYH-00001 500 12 $0.00 $0.00
Power BI Pro GCC Sub Per User DDJ-00001 1 12 $7.44 $89.28
Yammer Enterprise GCC Sub Add-on To O365 M365 F3 E5 ($0.00 item)LML-00001 500 12 $0.00 $0.00
Annual Payment Section 2:$171,329.28
NOTES:Total Annual Payment Yr 2 $189,821.94
EA 1st year's City PO# 041371
Total Due $189,821.94
Notes:
Quote prepared by: Chris A Johnson
Section 1- Licenses and Software Assurance
Section 2- Monthly Subscriptions