HomeMy WebLinkAboutDS Three-Year Renewal of Software ONE Agreement for Microsoft Licensing____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 07/21/2025
Disposition: Resolution 15442
Agenda Item No: 4.e
Meeting Date: July 21, 2025
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Digital Service and Open Government
Prepared by: Tessa Rudnick,
Enterprise Applications Manager
City Manager Approval: ___________
TOPIC: THREE-YEAR RENEWAL OF SOFTWARE ONE AGREEMENT FOR MICROSOFT
LICENSING
SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE
AN AGREEMENT WITH SOFTWARE ONE, INC., FOR MICROSOFT SOFTWARE
LICENSES AT A COST NOT TO EXCEED $240,000 PER FISCAL YEAR THROUGH
FISCAL YEAR 2028-2029
RECOMMENDATION:
Staff recommends that the City Council adopt a resolution authorizing the City Manager to negotiate and
execute an agreement with Software ONE, Inc., for Microsoft software licenses at a cost not to exceed
$240,000 per fiscal year through fiscal year 2028-2029.
BACKGROUND:
Since 2000, the City of San Rafael has used Microsoft products as its standard computer software for
both servers and workstations. In August 2004, the City began purchasing its Microsoft software licenses
through a joint volume licensing program known as the County of Riverside's Microsoft Enterprise
Agreement (the Riverside EA). This cooperative purchasing program was initiated through a Request for
Proposals (RFP) process by the County of Riverside and remains the primary procurement vehicle for
Microsoft licenses for many government agencies throughout California. The City's current enrollment is
due to expire on July 31, 2025.
The City has greatly expanded its utilization of Microsoft products since our last renewal in July 2022.
Digital Service and Open Government led the effort to migrate all City files from physical servers to
virtualize nearly all storage, utilizing SharePoint, and socializing the City to use Microsoft Teams for
enhanced collaboration and improved security. The City now uses Teams Phones for both soft phones
and landlines, which has allowed for greater flexibility for staff. Although the Teams Phone license was
purchased through a separate agreement, the use of Teams has enabled staff to more seamlessly adapt
to the Teams Phone environment.
In addition to these advancements, the City has also implemented several other Microsoft solutions to
enhance its digital infrastructure, including Microsoft Azure for cloud computing and Microsoft Power BI
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
for data analytics, which enable data-driven decision-making through comprehensive reporting and data
visualizations. All these Microsoft products have collectively contributed to a more efficient and secure
digital environment for the City.
ANALYSIS:
To avoid any lapse in coverage, the City recommends executing the necessary forms to renew with
Microsoft by July 31, 2025, subject to approval by the City Attorney. Software ONE provided an initial
quote that maintains our licensing costs at the same level as the last renewal in July 2022.
The estimated $220,000 per year covers the cost for all the City's Microsoft products for each year of a
three-year renewal period. Costs include support and maintenance for all previously purchased licenses
and subscription services, as well as support for new products purchased within the last three years. The
additional $20,000 requested by staff for each year would provide the flexibility to purchase any
necessary licenses or services (such as those required for increased operational needs and/or to support
new technology projects) during this period.
FISCAL IMPACT:
The estimated annual costs, including contingency, for renewing licensing and subscription support for
the City's Microsoft products are $240,000, which is budgeted and available in the fiscal year 2025-26
Department of Digital Service and Open Government operating budget, in the Technology Fund (fund
601).
All funds needed in future fiscal years will continue to be requested through the annual fiscal year budget
process.
RECOMMENDED ACTION:
Staff recommends that the City Council adopt a resolution authorizing the City Manager to negotiate and
execute an agreement with Software ONE, Inc., for Microsoft software licenses at a cost not to exceed
$240,000 per fiscal year through fiscal year 2028-2029.
ATTACHMENTS:
1. Resolution
RESOLUTION
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE AN AGREEMENT
WITH SOFTWARE ONE, INC., FOR MICROSOFT SOFTWARE LICENSES AT A COST NOT
TO EXCEED $240,000 PER FISCAL YEAR THROUGH FISCAL YEAR 2028-2029
WHEREAS, the City has used Microsoft products as its standard for computer
software since 2000 and has been purchasing its Microsoft software licenses under
the County of Riverside's Microsoft Enterprise Agreement since 2004; and
WHEREAS, the County of Riverside's Microsoft Enterprise Agreement is a
cooperative purchasing program and the primary procurement vehicle for Microsoft
licenses by many government agencies in California; and
WHEREAS, the City's current enrollment with Microsoft Corporation as part of the
County of Riverside's Microsoft Enterprise Agreement expires on July 31, 2025, and
the City wishes to renew its Microsoft licenses after that date; and
WHEREAS, City funds in the amount of $220,000 are budgeted and available for
expenditure in the FY 2025-26 Department of Digital Service and Open Government
operating budget, in Technology Fund 601, while the additional $20,000 in
contingency funds would be appropriated separately by any technology projects
requiring additional Microsoft licenses, and all funds needed in future fiscal years
would continue to be appropriated through the normal budget process;
NOW, THEREFORE BE IT RESOLVED, that the City Council hereby authorizes the City
Manager to negotiate and execute the required forms to renew the City's enrollment with
Microsoft Corporation, subject to approval as to form by the City Attorney, for Microsoft
software licenses at a cost not to exceed $240,000 per fiscal year through fiscal year
2028-2029, subject to funds being appropriated in each fiscal year’s budget.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing
Resolution was duly and regularly introduced and adopted at a regular meeting of the City
Council of the City of San Rafael, held on Monday, the 21st day of July 2025, by the
following vote, to wit:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
_________________
Lindsay Lara, City Clerk