COUNCIL COMMUNICATION
TO: Honorable Mayor and Council
FROM: Jill Olsen, Administrative Services Director
SUBJECT:Title
Discussion and Action: Microsoft Enterprise Enrollment Agreement for Volume Software Licensing (Jonathan Baskette)
Body
FUNDING SOURCE:
General Fund
General Fund Contingency
PURPOSE:
To consider approval of the Microsoft Enterprise Enrollment Agreement (500688) for a volume software licensing package to continue use of Microsoft software, utilizing the Arizona State’s Cooperative Contract CTR068890, in accordance with City Code §§ 3.10.010.3(A)(1) and 3.10.010.3(A)(18).
BACKGROUND:
The Microsoft Enterprise Enrollment Agreement is a volume licensing package that is designed for organizations with 250 or more personal computers. Currently, Lake Havasu City has over 800 computers and tablets. The City’s current agreement expires June 30, 2025. The City relies on the Microsoft software packages as its primary software for email, spreadsheets, presentations, Word documents, databases, and publishing components. The Agreement is a tiered pricing structure based on the number of computers being licensed, utilizing the Arizona State’s Cooperative Contract CTR068890 (500477) executed by the City on March 25, 2025. This is a three-year contract that covers all software licensing and updates for the City's system.
Over the past three years, the current agreement has allowed the City to simplify software deployment practices and has made license tracking more efficient. The amount budgeted for this new Agreement was for the licensing at the Microsoft Government 3 level (G3). However, due to the escalation of attempted cyber attacks, staff recommends that the City license at the Microsoft Government 5 level (G5). G5 provides advanced security, including advanced message encryption, advanced predictive coding and text analytics, and data loss prevention. G5 is the most comprehensive suite of productivity tools, security, and compliance features available from Microsoft. With this enhanced version, the City will improve the ability to prevent cyber attacks.
COMMUNITY IMPACT:
The community will benefit from the enhanced security features in the Microsoft products that allow for improved efficiencies and additional protections from cyber attacks.
FISCAL IMPACT:
The cost for the Agreement is $516,997.99 plus applicable taxes per year. The total with the estimated taxes is $556,289.86 per year. The amount that will be allocated and available with the adoption of the Fiscal Year 2025-26 budget is $344,300. With the upgrade to G5, staff is requesting the use of General Fund Contingency for the estimated remaining $211,989.86 for the first year. If savings are identified and available in the first year, the Contingency line item could be replenished through a budget amendment. Years two and three will be included in the General Fund operating budgets and not require Contingency funding.
ATTACHMENTS:
Microsoft Enrollment - Volume Licensing
Dell Microsoft Renewal Quote
SUGGESTED MOTION:
I move to approve the Microsoft Enterprise Enrollment Agreement in the amount of $516,997.99 plus applicable taxes per year; authorize the use of contingency funds in the approximate amount of $197,016.60 plus applicable taxes for Fiscal Year 2025-26; and authorize the City Manager to execute the Agreement and related documents on behalf of the City.