Title
Resolution to Approve a Purchase Order with Microsoft Corporation via Dell Marketing L.P. And Appropriate Funding ($145,487.28) (8 Votes Required)
Memorandum
Attached for your review and approval is a resolution authorizing payment to Dell Marketing L.P. and appropriation in the amount of $145,487.28 from the Information Technology fund balance to cover the FY2025 "true-up" costs associated with the City's Microsoft Enterprise Agreement.
On September 3, 2024, City Council approved a three-year Enterprise Agreement with Microsoft Corporation (Resolution R-24-353), totaling $1,650,000.00 over three fiscal years (FY2025-FY2027). The original estimate of $530,000.00 for FY2025 represented our best projection at the time, based on known license counts and anticipated growth.
As part of Microsoft's standard enterprise licensing process, an annual "true-up" was conducted to account for additional licenses deployed after the initial agreement was signed. After staff reviewed several options to find the least costly solution, this year's "true-up" resulted in an additional cost of $145,487.28, reflecting growth in licensed servers beyond the original estimate.
Budget/Fiscal Impact: This expense was not planned for in the FY26 Information Technology Services Budget. It is being requested that the full cost of $145,487.28 be appropriated from the fund balance of the Information Technology Fund.
Staff
Prepared by: Jennifer Grimes, Infrastructure and Cybersecurity Manager
Reviewed by: Joshua Baron, Director, Information Technology Services Unit
Kim Hoenerhoff, Financial Analyst
Approved by: Milton Dohoney, Jr., City Administrator
Body
Whereas On September 3, 2024, City Council approved a three-year Enterprise Agreement with Microsoft Corporation (Resolution R-24-353), totaling $1,650,000.00 over three fiscal years (FY2025-FY2027);
Whereas, The original FY2025 cost projection was based on the best available estimate at the time of lic...
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