Staff recommends that City Council approve the Microsoft Enterprise/Volume Licensing 3-Year Agreement and the associated license renewals via SHI International Corp. under Sourcewell Contract #121923-SHI (EA #54895843); authorize the Mayor to sign the agreement; and approve three equal annual payments of $163,418.80 for a total of $490,256.40 over the 3-year term.

• The City relies on Microsoft’s cloud productivity and collaboration services to support day-to-day operations across all departments. This Enterprise/Volume License Agreement (“EA”) is a renewal of our existing agreement. It continues licensing for Exchange Online/Outlook email and the Microsoft 365/Office suite (Word, Excel, PowerPoint, Teams, OneDrive, SharePoint) for our workforce.
• The EA also includes limited quantities of add-ons and workloads such as Power BI Pro, Visio, Visual Studio, M365 Copilot (pilot seat), Azure Information Protection P1, Entra ID P1, and SQL Server Standard Core Software Assurance to support specialized needs.
• The renewal also encompasses the Microsoft SQL Server licensing (per-core Software Assurance), which is part of the Enterprise Agreement and ensures the City’s enterprise database systems remain fully licensed and supported.
• The current EA term ends late September 2025. Approval in early September allows SHI/Microsoft to process the renewal and ensures continuity of service before Microsoft’s end-of-term ordering freeze and true-up period. The new EA's effective term is October 1, 2025, through September 30, 2028 (paid annually).
• Procurement is through Sourcewell #121923-SHI, a competitively awarded cooperative contract. SHI is an authorized Microsoft reseller under this vehicle.
• The City has historically planned for these costs within the IT Operations & Maintenance (O&M) budget and manages annual true-ups/downs within the EA.

City Council may:

• Approve the Microsoft Enterprise/Volume 3-Year License Agreement and associated SHI-quoted renewals; or,
• Not approve and provide staff direction on how to proceed. Non-approval risks service disruption and/or licensing non-compliance for critical City systems.

• Annual Amount: $163,418.80
• Total 3-Year Amount: $490,256.40
• Budget: The annual licensing amount is included in the approved Information Technology FY2026 Budget (O&M). Subsequent years (FY2027 and FY2028) will be budgeted in future O&M requests.
• Funding Source(s): Information Technology O&M (citywide chargeback).