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Home My WebLink About _ 4.3(a)--Award of Bid Schedule No. 5556 Microsoft 365 Annual Licenses GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: July 15, 2025 FROM: Tony Van Boekel, Chief ITEM NO. 43.(a} Information Officer/IT Director ***APPROVED BY*** ry� a w�� r�� .� � s �,.�. o- �" �� "'.. " � � „ � ,�. � �� m Pony Va��13o�v �hicf fzif�+n�aaFi��x�tAC ic er.'�` �raulcar�� .,w.m 9�r+),'2025 tS;V� c� �, SS �£ �/Ld/��1�v,`f �� tvanboekel@cityofredding.org btippin@cityofredding.org SUBJECT: 4.3(a)--Award Bid No. 5556 for Microsoft 365 Annual Licenses Recommendation Authorize and approve the following actions relative to Bid Sched�ule No. 5556 Microsoft 365 Annual Licenses: (1) Consent and grant bid relief, pursuant to Insight Public Sector, Inc.'s (Insight) J�uly 8, 2025, withdrawal request; (2) Terminate and void C-10813 License Support Provider Agreement contract with Insight Inc.; (3) Award bid to Dell Marketing L.P. with an annual licensing cost of$403,824.72; (4) Authorize the City Manager, or designee, to modify the number and type of licenses based on City of Redding staff needs; and (5) Authorize the City Manager, or designee, to negotiate and execute the License Support Provider Agreement Contract with De11 Marketing L.P. Fiscal Impact Terminating the Licensed Support Provider Agreement with Insight Public Sector, Inc. and awarding Bid Schedule No. 5556 to Dell Marketing L.P. (Dell) will increase the City of Redding's (City) Microsoft 365 annuallicense costs from$386,332.21 to $403,824.72. Pricing for licenses is per person, per year with pricing standardized for a three-year term, in accordance with the bid. It is subject to an annual true up based on the number of users at the established prices. The established prices include: • Full Licenses (G3 with GS Security) $512.40 per person per year; � Minimal Licenses (F3 with FS Security and Compliance) $217.44 per person per year; � SharePoint Plan 1 $45.36 per person per year; � Exchange Online Plan 1 $14.88 per person per year; and � Seasonal Six-Month iVlinimal Licenses $108.72 per person per year. Report to Redding City Council July 10, 2025 Re: 4.3(a)--Award of Bid Schedule No. 5556 Microsoft 365Annual Licenses Page 2 The cost of these licenses was partially included in Budget Resolution N�o. 2025-021 in the amount of $386,340. The difference of the prior award and this award is $17,492.51 — this amount will be funded by what is existing for Microsoft 365 Licenses in the Fiscal Year 2025-26 budget. Alter�native Action The City Council could choose to not award the bid to Dell Marketing L.P. and provide alternate direction to staff. Background/Analysis Microsoft no longer has perpetual licensing for its products. The existing Microsoft products in use at the City will no longer be supported by Microsoft in October of 2025 causing critical security risks and reduced program performance. In order for staff to have access to essential programs like Microsoft Word, Outlook, and Excel, upgrading to Microsoft 365 is necessary. Microsoft 365 is a subscription-based model. The County of Riverside Enterprise Licensing Agreement (Riverside ELA) enables government entities in California to purchases licenses through authorized Microsoft Vendors. This allows government entities to have more affordable access to licenses that have the required government compliance and security features. The City, utilizing the Riverside ELA, directly solicited seven firms known to engage in this type of service. On February 25, 2025, the City received three bids - the lowest responsive bidder was Insight Public Sector, Inc. with annual licensing cost of $386,332. Insight Public Sector withdrew their bid on July 8, 2025. The next lowest responsive bidder is Dell with annual licensing cost of$403,825. If approved by Council, the City Manager or designee will utilize the Riverside ELA to negotiate the final form of the agreement with De11 and process the agreement for signatures. Environmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Pr�iority/City Manager Goals � Government of the 21st Century - `Be relevant and proactive to the opporYunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." Attachments ^5556 Bid Tab ^Insight Bid Withdraw ^G 10813 - License Support Provider Agreem�nt- 2025 -Insight Public Sector Inc_ (002) Previous Staff Report -April l, 2025 Reso. 2025-021 - Appropriating $930,390 for FY 24-25 for the use of 1Vlicrosoft 365 CITY OF REDDING PURCHASING DIVISION-TABULATION OF BIDS Microsoft M365 Licenses Insight Public Sector, Inc. Dell Marketing L.P. Crayon Software Experts, LLC BID SCHEDULE NO. DATE OF OPENING 5556 Tuesday, February 25,2025 Daines TIME OF OPENING VanBoekel 3:00 P.M. ITEM DESCRIPTION QTY UNIT PRICE EXTENDED PRICE UNIT PRICE EXTENDED PRICE UNIT PRICE EXTENDED PRICE 1 G3 with G5 Security Annual License 628 $513.97 $322,773.16 $512.40 $321,787.20 $516.78 $324,537.84 F3 with F5 Security and Compliance 2 Annual License 288 $136.06 $39,185.28 $217.44 $62,622.72 $219.36 $63,175.68 3 SharePoint Online Plan 1 288 $45.51 $13,106.88 $45.36 $13,063.68 $45.76 $13,178.88 4 Exchange Online Plan 1 288 $36.38 $10,477.44 $14.88 $4,285.44 $36.58 $10,535.04 Seasonal F3 with F5 Security and Compliance Seasonal (six-moth license) 5 Annual Cost 19 $41.55 $789.45 $108.72 $2,065.68 $109.68 $2,083.92 Any fees,taxes not included (if 6 necessary) $0.00 $0.00 $0.00 Total Annual Cost: $386,332.21 $403,824.72 $413,511.36 � � �� Purchasing: M. Kempley From: Damien Tran To: MacFarland.Rachel;Christopher Beachler Cc: Van eoekel Tonv;Alfred Lam Subject: RE:C1I5 Certifcation Date: Tuesday,�uly 8,2025 9:03:46 AM Attachments: imaae001.ona imaae002.ona imaae003.ona imaoe004 ona CAU I"ION:T�h'u Emali onginated frnm ouislde the City of Redding;please be carefui wlth I(nks or�ttachments. Hi Rachel/Tony, After discussions with our Microsoft teams,we've made the di�cult decision to ask to withdraw our bid for the Microsoft licenses with the City. My sincere apologies for not being able to do better. I waill be sssa f�?C}b�&we�n 7l29l25��¢d�/'B2t25. � �1 �Y��. Damien Tran�iPs s�Eo strateg�o a�ot M9r.�ins�9nt Pubro seotor T.310-354-5674�G.909-639-8021 �damien tran aninsight.com�ins insiaht com Our Insight Public Sector Solution Areas Clouc�and C?atacenter Tra��sfcrmafion Cann�cfed Warkforc� C�i�it�i lrrnovation Suc�r�lv Chain CPptirr�izatian ��v��=�s,� F�ra�€�R�� .��,�,,,E�� t,s�,�*€�s�u`:"�9�a a9�r"s�mcr�aa�G��aaa�c&��r.�p�aisr�'�V4Fcrnd�r8ng hc�vv tcs aat6li��t��rasE�.I? �1F�d��f�F��?��A"��'��7 /�� 6 T `�f J---- �I1'� I _ - i'� 777 Cypress Avenue, Redding, CA 96Q01 f PO BUX 4�6071, Redding, CA 96�49-6071 � � L I F {� � PV I,%�''� �i��ca�r�c�clir�c�.�rg a�� . QF�ICE OF THE C1TY GLEF2K SHARLENE�TIPTON GITYCLER.K 530,225.4447 53Q.225.44Fi3 FAX May 28, 2025 Insight Public Sectar, Inc. ATTN: Damien Tzan 2701 E. Insight Way Chandler; AZ 85286 RE: Licenseci Suppart Provicler Agreement—C-14813 Dear Damiei7 Tran: Enclnsed please �nd t11e above referenced fully executed Licensed Suppoi�t Pravider Agreelnent by and betwee�i tl�e City of Redding aizd Insight Public Sect�r,Inc. for the purpose af providing Microsoft Products and Se�vices under Micz�osc�ft EA. If you llave any c�uestions regardilzg tl�is agreenlent, Qr if we can be of assistance, please contact the flffice of the City Clerk at (530) 225-4439. Sincerely, � .. � �,�._�w�. �� Kristen McCree Management Ai�alyst Enclosure cc: Rachel MacFarland Elle�l Grarinis AGREEMENT# LICENSEI�SUPPUR.T PRt.�VIDER{LSP) AGR.]E�MENT For MICR�D�CIFT PR+I?�►UCTS A1�D SERVICE� U1�DE�t IVIiCROSOFT EA FOR CITY OF 12EDT)ING' And IN�IGHT PUI3LIC SE+CTtIIt,INC. This A�reement is entered between tl�e CITY OF REDDING, a palitical subdivisican of the State of Califo�•ni�,(lierein refer-red to as °'CITY"),and Insigl�t Public Sector, Inc.,an Illinois corparation authorized tc�cond��ct business in the State af Calif�rnia{}ierein referred to as"LSP"j of Microsoft Lic�nsing Solution Provide��, effective frorn April 2l, 2025 and continues in effect through April 3U, 2U28, based an I,SP"s res�onse to Bid 555& for Microsc�ft produ�ts and services unct�r Microsc�ft EA(TBI7), Tl�e parties a�ree as follaws: l. All Terms and Conditi�ns af this Agreernent shall govern purclaase of Microsaf't products and services und�r Microsoft EA{TBD) by City thrcru�h the I.SP, 2. Feriad c�f Perf�rmance, This Agreement shail be effective from April 21,2�25 anci cantinues in effect through Apri130,2028, with the aptic�n to renew for an additianal three-year period expiring on April 3�, 2031, with no c�bli��tion by the City of l2edding tc�purchase any speci�ed arnount€�f goads or serwices. In�ddition� the CITY may at any time choose to transfer the eiirollment from one LSP tc�another LSP pursuant to the transfer terms set by Microsvft. Tlae period of performai�ce for the er��•c�l#ment with the LSP may be for up to a three-year term with the option tQ renew the enrc�llments with contracted LSP thr�augh the LSP cantract expiration date: 3. Campensation The CITY shall pay tlze LSp for products ai the cost as stated in Exhibit B, incurred in accordance with the terms ofthis Agreement. The CITY is not responsible far an�fees or costs incurred above or beyoP7d the contracted amount and shall have no c�bligation tc� purchase any specified amount of services or products. IYon-Appropriations;The GITY obligation for p�yment afthis Agreement beyond the;c�irrent fiseal year end is cantingent upor� and limited by the availability of CITY funding from wl�icl� paymelit- can be made, and i��oices shall be rendered "'rnoi�thly`� in arrears. In the State �f CalifQrnia, Gavernment ageneies are not altowed tt�pay excess interest and late charges,per Govemmea�t Caties, ��d Section 926.10.No legal liabitity ot�the part ofthe CITY shall arise for payment be�ond 3une 3t}�f fi each calendar year unless funds are made available for sueh payment. In the e�ent that such funds �-4 . ��;� are not forthcoming for any reason, CITY sliall immediately notify C�NTRACTt�R in wrtting,and this Agreement shalf be deerned terrninated,have n€�further force, and effect. °�,� 1 �� " � �, �� , �,. � k{ d� R�.»'��'"� �.�'�e . . t�.�..�,.' �„.::�� AGREEMENT# 4. Hold Harmless/Indemnification: 4.1 LSP sha11 indemnify and hold harmless the City of Redding, its A�encies,Districts, Special Districts and Departments; their respectiive directors, officers, elected and appointed officials, employ�es, agents and represenYatives {individually and coIlectiveiy hereinafter referred to as Indemnitees)from any liability, action,claim or damage wilatsoever,based or asserted t�pon any services, or acts or omissions, of LSP, its officers; employees, subcontractor, agents or representa#ives arising out of or in�ny way relating ta this Agr�ement; including btiit not;limited to property damage, bodily injury,or d�ath or any other element of any kind or nature.LSP shall defenri the Indemni€ees at its sr�le expense including alI costs and fees(including,but not limited, to attorney fees, cast of investigatian, defense and settlements or awards) in any claim or action based upon such acts, omissions or services. 4.2 With respect to any action or claim sttbject to indemnification herein by LSP. LSP shall, at their sole c�st,have tl�e right to use ct�unsel c�ftheir awn choic�and shall have the right tp adjust, settle; or comprolnise any such action or claitm withc�ut the prior cansent of City, provided, however,th�t any such ad�}ustment, settlement�r cornpromise in n�mannar whatsoever limits ar eircumscribes LSP indemnification to Indemnitiees as set forth herein. 4.3 LSP obligation hereunder shall be satisfied when LSP has provided to City the appropriate form af dismissal relieving the City from any liability for the action or clairn involved. 5. Termination; 5.1 City may terminate this Agreement without cause upon thirly(3Q)days writt�n nc�tice served upan the LSP stating the extent and effective date of termination, 5.2 City may, upon five (5) days written notice terminate this Agreement for LSP default, if LSP refuses or fails to compl�with the terrns of this Agreement or fails to rnake progress that may end�ng�x performance and does not immediately cure such failure. In the event of such termination;the City znay praceed with the work in any manner deerned praper by City. 5.3 LSF'rights under this Agreement shali terminate(except for fees ac�rued prior to the date of terminatianj upon dishonesty or a wiilful or material breach ofthis Agreernent by LS�';or in the event of LSP unwillingness or inability fc�r any reason what�oever to perform the terms of this Agreement. 6. Alter�t�on or Chan�es to the Agreemenf The City Manager and/or his designee are the only autharized City representatives who may at any time,by written order,alter this Agreement.If any such alteration c�uses an inerease or decrease in the cost of, or the time required for the performance under this Agreement,an equitable adjustment sh�ll be rnade in the Agreement price ar deliuery schedule, or bot�i, and the Agreement shall be modified by written amendment accardingly: 2 AGREEMENT# 7. Natices All correspondence and natices required or contemplated lay this Agi•eement shall be delivered to the respective parties at the addresses set fo�•th belaw and are deemed submitted twa days after theii•depasit irz the Uilited States mail, postage prepaid: CITY LSP City of Reclding Information Technology Insight Public Sector,Iiic. Attn: Pro�ye�t Coordinatc�r— Attn:I7amien Ti•an Rachel MacFarland 2701 E, insi�ht Way 777 Cyp�•ess Ave Chandler, A,Z 85285 Redding; CA 96001 rmacfarland@cityofredding.org darrti��.�r�r� ,i��s��li�.c�� $. Ins�rance Withcaut limiting or diminishir�g the LSP'S obtigatian to indemnify oi•l�old the CITY}iarmless, LSP sl�all procure an�i �naintain c�r cause to be maintained, at its �ole cost and expense, the foLlo�wing insuranee coverage"s duri��g the ter•m of'this A��°�emetit, As respects to the it�sura��ce sectioil a�1y, tke CITY herein refers to the City csf Redding, its Agencies, Districts, Special Districts, and l7ep�►-tments, their°respective di�•ectol°s, officers, �mployees, eiected or appc�inted officials, a�ents, ar represei�tatives as Additiot7al Ii�sureds. A, Workers' Cornpensatian. If tl�e LSP lias employees as defined by the State c�f California, the LSP shall �naintain statutary Wc�rke�s'Cc�mpensation Insurance(Coverage A)as prescribed by tlle laws af tlie State ofCalifc�rnia. Poiicy shall include Ernployers° Liability(Covera�e �)including Occupatic�nal Disease wit111imits not less t11an$1,0{3t1,00�per person per accident.Tl1e pc�iicy shall be�ndoysed ta waive subragation in favo�•of Tl�e City of Redding. I'olicy shall name the CITY as Additional Insureds. B. Comrnerciai +General Liability: Coinmercial General Liability insurance coverage, including buC not timited to,prernises liability, urrmadi�ed contractual liai�ilitY, products and completed aperati�ns liability> persc�nal and advertising injury, and cross liability cover�ge, cc�vering claims which may arise fram or oiat crf LSI"S performance af its obli;ations�ereunder. Palicy shall name ihe CI"I'X as Additional Irisured. Policy"s limit ofliability shall nat be less ihan$2,UOO,OUO per occurrence cotnbined single limit.if such insurance cc�ntains a general aggregate limit,it shall apply separately to this a�reea��ent or be no less than two(2)times the accurrence Iimit.Poiicy shall natne the CITY as Additional Insure�s. C. lnsurance Requirements for IT Contractor Services. LSP shall procure and maintain for the duratian c�f the contract insurance against claims for injuries to person or damages ta praperty whic�g may arise fr�m or in connectiQn with the performance of 3 AGREEMENT# the work hereunder by the LSP, its agents, representatives, or employees, LSP shall pr�cure and maintain for the duration af the corztract insurance claitns arising aut oftheir services and including, but not limited to loss,darnage; theft or c�ther lnisuse of data, infringement of intelleetual property; invasion of privacy and breach of data. Cyber Liability Insurance;with limits not less than$2,000,000 per occurrence or clarm, $2,000,000 aggregate. Coverage shall be sufficiently braad to respond to the duties and obligations as is undertaken by LSP in this agreernent and shall include, but not limited ta, claims involving infringement of intellectual property, including but not limited to infrinbement of copyright; trademark;trade dress,invasion ofprivacy violations,infoi•mation theft,damage to or destruction of electronic informatian,release ofprivate infnrmation,alteratian ofelectronic information,extartion and network security. The policy shall provide coverage for breach response costs as we11 as re�ulatary ftnes and penalties as well as credit monitoring expenses with limits sufficient to respc�nd to these obligat�ons. If the LSP maintains braader coverage and/Qr higher limits than the minirnums shawn abo�e, the City requires and shall be entitled to the broader coverage and/or higher limits maintained by the LSP. Any available insurance proceeds in excess of the specified minimum limits of insurance and cc�verage shatl be available t�the City.Policy shall name the City as Additional Insureds: D. General Insurance Pravisions- A(I li�es; 1) Any insurance carrier providing insurance coverage hereunder shalt be admitted to the State of California and have an A M BEST rating of not less than A: VIII (A:S) unless such requirements are Wai�ved, in writing, by the City Risk Manager.If the City's Risk Manager waives a requirement for a particular insurer such waiver is c�nly valid for that specific insurer and only for one policy term. 2) The LSP must declare its insurance self insured retention for each coverage required herein. If an;y such self-insured retentian exceeds�500,000 per occurrence each such retention shall have the prior written consent of the City Risk Manager before the commencement of operations under this Agreement. Upon noti�cation of self insured retention unacceptable to the CITY, and at the election o�`the City's Risk Manager, LSP'S carriers shall either; 1) reduce ar eliminate such self-insured retention as respects this Agreernent with the CITY,ar 2} procure a bond which guarantees payment of losses and related investigations, claims administration,and defense costs and expenses: 3) LSP shall cause LSP"S in�urance carrier{s) ta furnish the City of Redding with either 1) a properly executed ociginal Certificate(s) of Insurance and certified original copies of Endorsements effecting coverage as required herein, and 2) if r�quested to do so orally or in writing by the City Risk Manager, provide ariginal Certified copies ofpolicies including all Endarsements and all attachments thereto, showing such insurance is in fu11 ft�rce and effect. Further, said Certi�icate{s) and palicies of insurance shall contain the 4 AGREEMENT# coven�nt of the illsurailce carrier(s) that a minimum of tllirty(30)days written notice shall be given to the City of Redding prior to any material modification, cancellation, expiration or reductian in caverage of such iilsurance.If LSP i�zsurailee carrier{s)policies does not lneet the minimum notice requirernent foulld herein,LSP sllall cause LSp's iilsiirai�ce carrier(s)to fi�rnisll a 30-day Notice c�f Cal�cellation Endorsemer�t. 4} Ii1 tl�e evellt of a rnatel-ial rnodification, cancellation, expiratian, or reductian in coverage, this Agreelnent shall terminate farthwith, unless the City of Redding receives,prior to such effective date,another properly executed original Cer-�ificate of Insurance and original copies of endorsements or certified ariginal palicies, inclltding al1 endai�sernents and attachineilts thereta evidencing ccrverage's set fortli hereil�and tl�e insurance rec�uired liereirl is in full fo�•ce and effect. LSP sh�ll not commez�ce operations until tlxe CITY has been fu1•nisl�ed original Certificate {s) of Insurance ai�d certified original co�ries of endoisernents and if requested, certified original policies of insurance i�tcluding all ei�dt�rsements and any and all othet• attachinents as required in tllis Sectian. An ii�dividual authorized by the iusurance carrier to do so on its bellalf sl�all sign the original endorsements far each policy and the Certificate of Insuratlee. 5} It is understood and agreed to by the parties lieieto that tl�e I,SP's insurance shall be coristrued as primary insurarlce, and the CITY'S insurance and/or deductibles and/o�•self- insuretl 1•etention"s or self-insured progra�ns shall c�r�t bz ct�nstruetl as eontributory: 6) If, during the tenn of tliis Agr•eement or any extensian thereof,there is a rnaterial change in tl�e scope of services; or, there is a material clrange in the eqi�iprnent ta be used in tlle perforrnance ofthe scope ofwork; or„the te1•m ofthis Agreement, including any extensions thereof,exceeds five (5)years;the CITY reserves the ri;ht tu adjust the types af insurance and the rnonetary lilnits of liability requir•ed under this Agreeinent, if in the City Risk Management's reasonable judgrnent,the amount oY•type of insurance carried by the LSI'Ilas become inadec�uate. �) LSP shall pass dawn the insurance obligations eantained herein to all tiers of subcai�tracto�•s working under this Agi:eernent. 8} Tl1e insurance requirernetits corztained in this Agreement may be met with a prograrn(s) of seIf insurance acceptable to the CITY. 9) LSP agrees td notify CITY c�f any clairn by a third party or any i7acident or event that may give r�ise to a claim arising from the performance ofthis Agreement. 9. General� 9.1 This Agree�nent, including any attachineuts or exhibits, constitutes the entire agreernent of the parties with respeet to its subject matter and sup�rsedes all prior and cc��itemporaneous representations, propasals, discussians and com�nunications, whether oral or in writing. "This Agreement may be changed or modified only by a wi•itten amendment signed by autharrzed representatives of both parties. 9.2 This Agreement sliall be governed by the laws of tl�e State af C�lifon�ia. Any Iegal action 5 AGIt�EMENT# related to the performance or interpretation af this Agi°eernelit shall be filed anly in the Superior Caurt of the State of Califortiia located in Reddi��g, Califorr�ia, and the pat�ies waive ar7y pa•ovisioil of 1aw providing for a change of venue tQ anotller locatioil.Ii�t11e event any provision in this Agi•eement is 17e1d by a court of competent jurisdiction to be invalid, void, or unenfor-ceable, tl�e renlaiiiing provisions will nevertheless contintire ir�full for�ce withflut being impaired or invalidated in any way. 9,3 The followiiig dc�cl�ments are attached to aiad incorporated inta this Agreeinent: Ex�Cibit A: ]Bid 55�6 Form Response by�nsight. 9.� I�i the event of an� canfl�ct ar incol�sistency betweeYt the terrns arld cc�riditions af this Agreernent and any terms t�r conditions set foz�th in any of tlle atkachments,purchase ordei�{s},or other dflcujne�lt relati�ig to the transactions cflntelmplated by this Agree�ne�lt, the teirris and conditions set forth in tllis Agreement s11a11 prev�ii. 9.5 This Agreernent�nay be executed in any nuit�ber �f counte�•parts, each of whic4� will be an origiiial,but all of wliicl�tagetl�er will constitute or�e instrurnent. Each party of tllis Agreement agi�ees to the use of electronic signatures, such as digitai signatures tl�at meet the requirements of the Califarnia Unifoi-m Electronic Transactialls Act(("GUETA"} Cal; Civ:Code§§ 1633.1 to 1633:17), fo1• executiing this Agreem�nt. The paities f�lrther�g��ee that the electronic signatu�•es of the parties included in this Agreeynent are intended to autl�enticate this writing and ta have the saine force a�id effect as rnanual signatui:es. Electc�onic signa#ure means an electronic sound; symbol, ar pr•ocess attached to or logically associated witl�an electrollic record and executed o��adopted by a pe��saz�with the intent ta sign the electranic record pur�suant to the CUETA as amended frorn time fia time. The CLTETA authorizes use af an electror�ic sigz�ature far tr��sactions a��d contracts among parties in Califor��ia,including a govemment agency.I7igital signatLrre meai�s an electtaonic idei�tifier,created by computer, intei�ded by the party usilig it to have the same force and effect as the use of a manual signature, and s11a11 be �-easonably relied upoii by t[te parties. For purposes oftttis sectiorl, a digital signature is a type of"electranic signature'"as defined in subdivision{i)af Section 1633.2 of the Civil Code, 9.� Each of the undersigned signatories hereby represents and warrants that they are authorized tc�execute this Cantract an behalf of the respective parties to this Contract; that they have fu4! right, pc�wer and �awful authority to undertake all obligations as provided in this Cantract; and that the execution, performance and delivery of this Contract by said signatories has been fully authorized by all requisite actions on the part of the respective parties to this Contract. 6 �c��z�,c��r� IN WITNESS WHEREOF, City a�ad +�onsultailt 17ave e�ecuted this Contract c�r� the days anci yea�• set foi�th below. CIT'Y C7►F l�ED17�ING, A Mu��icip�l+Corpc�r.� ` n �. Datecl: � '� �- � ,2Q �� " TONY VAI� B ,�KEL CHIEF INFO�MATION OFFICER ATTE�T; APPROVEi7►A�TC!FU�1VY. CIE�RISTIAN CUKT�S p � Cit,y Aftt�rney � � ' �� ,� � �_._� � � �� n� a ,. �� HA�2LENE TI�'TON,Ci�y Cler�C BY= (af2ETCHEf� S7lJHR CU1�15ULTANT'-Insight Public Sector; 1nc. �. t ��a� , ,�.. �' '' x _,., r j Dated: �pril 3� #��25 _ _� �.. _ t � , �yr Lis nne Steinheis r, GI a!Compiiance afficer T�x ID No.. 36-3'�49(l�0 7 Exhibit A �ir� 555+6 Form Respvnse by Insight Bm��t !��r� �� s� TC)FURiVI�aH MICRfl�SU�T`M3SS L�C�NSFS 'T� T�IE CTTY OF REZ1b1NC3,CAC.T� (�3llb r��s N�.� ) To. City caf A9Ii 1� 1�cY,PTucc� i�ng Uff� � xi.z�2� The� • e�i iz�',_��a�li�s�;tc�r 9�su. ( N e uf'Bic�le�j ta '�t tcr aCity of ' ,C�}ifos�ie,�t tl� ' q d below in u+itFc •f� .vn� .'a��file in the€r#'�ce e�f the 1'u[� �T3ivi�i�af t�►c Cfty of � i� vuith the � +��t�'�i �,?�5��:�a t1±1�� ;e wa.. .eea�--��.a;a f na.,:.�.�_. -u-*�------ - - - i�h,�y�r�3e a�r#c�f ttt�,i��eil: I � e T C P�rr�7ni! J�z � 1_ �aa � w t�s s��y ��t�� F3�ith Fs s�urity �omp]i • ;< + 2 288 te�t L �.: "� �''��f`�'u,° � 3 2�� hsrePoint '' Pl�1 1 4 x `, Plan 1 an � . 6., e�s F3 with FS 5�urat�+ Ct�m " 5 19 (xiuc-rie�c�nth 1. �} 1.55 45 ual � y fe,�,t�cs ma#r�lud�ci�Sv�(plc�c � `temize un a rate if ri ' � '1'(.�TAL C�� T _'�� .«�p � ,�.� � ,.�._� .. 1�Se grices q�xrte�d��firm,�td�re nckt svtxject to�h+��. The Ci�r reserves the ri�ht to r�je�t ac►y c��all bids t�w�ivo mi�r' leritaes. Tl�e I3i by wlet}�� Ad+3�ns3�a 2�tos. �.,t�this hi�i l�v� r�iv�,if�ny {H' A IVv. caf Ac�i iveci). Bi ut� f�itl�re t� wl�d�e ad i tt�bici�o�cca�i t�n-�e 've, �zrnfum iss trf scry a�ty em�i A�ii e Keun�r�t; , . , C I T Y Q F r %� � A � ' F � R " �!�� ""� CITY OF REDDING . ti, REPORT TO THE CITY COUNCIL MEETING DATE: April 1, 2025 FROM: Tony Van Boekel, Chief ITEM NO. 4.3(a) Information Officer/IT Director ***APPROVED BY*** �� _.M�.. �� _ .,--... ,, ��w,_� �. .� e.a�. .w �_ � �, � ..... T'ony Van I3c>ckcl Chief In�� —�3 �� ioimatioil 1'Ficer/I� �reccor _ 3/2 512 02 5 "�'� y lpplri,Cl � 2lla� 8= 3�26�202 tvanboekei@cityofredding.org btippin@cityofredding.org SUBJECT: 4.3(a)--Authorize and Approve items related to Microsoft 365 Migration Recommendation Authorize and approve the following: (1) Award Bid Schedule No. 5556 for Microsoft M365 Annual Licenses to Insight Public Sector Inc., with an annual licensing cost of$386,332; (2) Approve the City Manager, or designee, to modify the number and type of licenses based on City of Redding (City) staff needs; (3) Award the RFP Sehedule No. 5543 - Provide Professional Implementation Serviees for Microsoft 365 Migration contract to Insight Public Sector, Inc., in an amount not to exceed $494,050; (4) Authorize the City Manager, or designee, to negotiate and execute the contract with Insight Publie Sector, Ine. and approve eontraet amendments in an amount not to exceed $50,000 in total; and (5) Adopt Resolution approving and adopting the 69`h Amendment to Budget Resolution No, 2023-060 appropriating $930,390 to fund the bid utilizing the City's Information Technology Reserves Account. Fiscal Impact The City of Redding's (City) current Microsoft 365 license needs wi11 total $386,332 per year. Pricing for licenses is per person, per year for a three-year term, in accordance with the bid and is subject to an annual true up based on the number of users at the established prices. The established prices include: • Full Licenses (G3 with GS Security) $513.9"7/person/year; • Minimal Licenses (F3 with FS Security) $136.06/person/year; � SharePoint Plan 1 $45.51/person/year; • Exchange Online Plan 1 $36.38/person/year; and � Seasonal Six-Month Minimal Licenses $41.55/person/year. Report to Redding City Council March 27, 2025 Re: 4.3(a)--Authorize and Approve items related to Microsoft 365 Migration Page 2 In order to migrate to Microsoft 365, the City requires a Consulting & Professional Services Agreement for Professional Implementation Services. The one-time fiscal impact of these services is $494,050. This one time cost is using current Information Technology reserves and the ongoing costs will be included in future budgets. It is estimated that approximately 30% of this cost is attributable to the General Fund. Alternative Action The City Council could choose to not award the bid to Insight Public Sector, Inc. and provide alternate direction to staff. Background/Analysis Microsoft no longer has perpetual licensing for its products. In order for staff to have access to essential programs like Microsoft Word, Outlook, and Excel, upgrading to M�icrosoft 365 is necessary. Microsoft 365 is a subscription-based model and the County of Riverside Enterprise Licensing Agreement enables government entities in California to purchases licenses through authorized Microsoft Vendors which enables government entities more affordable access to licenses that have the required government compliance and security features. The City, utilizing the County of Riverside Enterprise Licensing Agreement, directly solicited seven firms known to engage in this type of service. On February 25, 2025, the City received three bids - the lowest responsive bidder was Insight Public Sector, Inc. with annual licensing cost of$386,332. In order to migrate to Microsoft 365, the City directly solicited 14 firms known to engage in professional implementation services for Microsoft 365 migrations. The request for proposal was also advertised in the local newspaper, as well as posted on the City's website. On December 2, 2024, the City received proposals from 10 firms. The review team, comprised of two seasoned IT Supervisors, the Cyber Security Officer, a Marketing and Cormnunications professional, and the City's most senior System Administrator, found the firm with the most acceptable proposal based on technical merit and reasonable fee schedule was Insight Public Sector. The project start date is mutually determined by Insight and the City, with a twenty-business day lead time to allow for scheduling. The project will take thirty-two weeks based on the initial assessment of the environment and scope of work. The beginning weeks of the project include in-depth review and assessment of the systems that wi11 be impacted, network infrastructure and any other factors that may impact time lines of the project. Environmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Priority/City 1VlanageN Goals � Government of the 21st Century - `Be relevant and proactive to the opportunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." Report to Redding City Council March 27, 2025 Re: 4.3(a)--Authorize and Approve items related to Microsoft 365 Migration Page 3 Attachments ^Resolution ^5556 Bid Tab Insight Bid Insight Response-City of Redding- Professional Implementation Services for ]Vlicrosoft 365 Migration-120224 �4LIJTIOl�t NO.2025-021 A RESC3LUTIOIY C1F THE CITY {JF DI}IlYG APPRO"VIN+G ANll ADt3PTIlYG TI3E 69`h AMEIYDMENT TO CITY BLTD�ET RES(3L�JTI{?N N4. 2023-06�t APPROPRIATING �93Q,390 FtJlt FISCAL YEAR 2024-�25 FC1R'THE�'IRS'T YEAIt PAYMENT OF A T E-YEAR CCIIYTRACT FC?R THE USE C1F 1dI�CRQSt}FT 365 AND LEMENTATItJN SERVICES FC7R MICROSOFT 365, THE FUND�TG SOURCE WrLL �3E (3 ATION TECHNOLtJGIES RESERVES AND WILL BE REI ITRSED B�'THE CITY DI'VISIUNS BY FUT CClSTS ALLCI�ATION� BE IT RES!?L T�EI��'Y THE CI1'Y C't3UNGIZ OF THE CITY DF'REDII�IN+� THAT Budget Resc�lution No. 202�-060 be and;is hereby aznended as fc�ll�ws: FUND DNISION DESCRIPTIOI'� INCREASE DECREASE 311 3101 ; ��'��on Technologies $934,390 at r > _,>>� „z�.�� TI�AT account titles a��bers requlriri��ustrnents by this Resalution are as follows: , �, i ;" USE SOUI�CE � ' , ,} OF FUNDS OF FUNI7S Increase(Decrease) R��`�ue/�'utld Bal�nce `� 311-3101-2910000 OOt�� Reserves/Fund Balance $ 93Q;390 �� `� � �� Increase(Decrease)Expendi�'�� `.,..,,, ' �� f � ' � Right�tcz�ase-��cription ba��T 311-3 i 01-7930010-�}0(300 Agreement��ITA) < 544 O50 GASBG 9��BITA Agreen�� 311-3101-9855001-00000 Princi al � ;" , " $ 386,340 1� � ' ' � � " _ { 930,39t} $ 930,390 < , � � � v., ....,., j THAT the purpose is to appropriate $930y390 fc�r fi��ear 2024-25 �`��the first-year payment of a three- year cantract for the use of Microsoft 365 and i��ntation serv��`�c�r I1��,crastrft 3b5, funding sc�urce will be Information Technologies reserves and ��'��s��w11I be r��rsed ]��,��e City d�visians by future costs allocatic�ns. '' ' ' s � f � �.��,�� I HEREBY CERTIF'Y that the faregoing resolutic�n was introduced ��,� regul� ��ting of the City Council c�f the City of Redding on the 1 st day of April, 2025, and was �� ad�� aid meeting by the fc�ll�win� vc�te: , �t!r 4 � i„ ,,,. t' � AYES: CCIUNCIL MEMBERS: -AuclettQ,Dhanuka,Litt;'':��,��f�irer,and Munns N+DESc COUNCIL ME ERS; -None A�35ENT: COiTNCIL MEIVIBER�: -None ,w�__., ABSTAIN: COUl'�CIL ME ERS: -None ; ¢; `~�,, ��,,�--� � �; � � � � � . JA; �lYIUNNS,Mayor ATTE�T: � F(} APP tJVAL: ,. � � � , .,�� , .�� S RL.ENE TIPTON, City Clerk CIIRISTIAN M. CURTIS, City Attorney