That the City Council approve and authorize the City Manager to enter into a three-year Microsoft Enterprise Agreement (EA) in the amount of $228,283.20 with SoftwareOne for Microsoft software office products.

In December 2018, the City entered into a three-year Microsoft Enterprise Agreement (EA) with SoftwareOne for Microsoft software licenses used at the City for various system, business and office applications.  This agreement will expire on December 31, 2021.

SoftwareOne was selected as the reseller of Microsoft software product based on a competitively bid process by the County of Riverside.  Because of the quantity of their purchases, the County of Riverside was able to secure competitive software pricing with favorable terms. The County of Riverside's contract is valid from November 1, 2019, through October 31, 2024, and SoftwareOne is able to offer the City of La Habra the same terms as what was secured by the County of Riverside, for up to 350 licenses for various Microsoft applications.  Staff found SoftwareOne to be very knowledgeable on Microsoft license regulations and familiar with the City’s software licensing needs; therefore, staff recommends renewal of the EA for another three-year term with SoftwareOne. 

By renewing the agreement with Microsoft through SoftwareOne, the City will be able to continue upgrading to any future releases of Microsoft business applications at no additional cost.  The software agreement will also provide the City the use of any Microsoft software product for evaluation without the need to purchase any licenses.

The total cost for the proposed three-year agreement is $228,283.20, which will be paid in three annual installments.  The first year installment of $76,094.40 has been budgeted in the Fiscal Year 2021-2022 I.T. budget (account #165151-7431) and no additional appropriation is necessary at this time.  Funding for Fiscal Years 2022-2023 and 2023-2024 will be requested during each fiscal year's annual budget preparation.