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Home My WebLink About _ 4.3(b)--Authorize additional purchases on Microsoft Enterprise Agreement CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Authorize and approve the purchase of Microsoft Licenses and/or software products on the Microsoft Enterprise Agreement No. 8084445 between Dell as reseller and the City of Redding (City), on behalf of City Departments, as deemed necessary, through t he proper purchasing procedures, for routine expenditures not-to-exceed the requesting department’s fiscal year budgeted amount for said items. Fiscal Impact There is no fiscal impact associated with the acceptance of this report as all approvals will be within previously approved budgeted amounts. Any amounts that are beyond the department’s approved budget, will be presented to City Council (Council) for consideration. Alternative Action The Council could choose not to authorize the purchase of additional items on the Microsoft Enterprise Agreement with Dell and provide alternative direction to staff. If this is not approved, some Microsoft products will not be available to staff (e.g. Copilot, Project); while other Microsoft products will need to be purchased from a smaller number of providers. Background/Analysis The City of Redding (City) executed an Enterprise Agreement with Microsoft effective August, 18, 2025, which lists Dell Inc. (Dell), as the reseller for Microsoft products. Council approved the agreement for the Microsoft 365 licenses at its July 15, 2025 meeting. Staff seeks to expand the products that can be added to this agreement to include other Microsoft products, for example SQL licenses, Microsoft Project and/or server licenses, as budgeted for by each City department. MEETING DATE: September 16, 2025 ITEM NO. 4.3(b) FROM: ***APPROVED BY*** tvanboekel@cityofredding.org btippin@cityofredding.org SUBJECT: 4.3(b)--Authorize additional purchases on Microsoft Enterprise Agreement Tony Van Boekel, Chief Information Officer/IT Director Report to Redding City Council September 10, 2025 Re: 4.3(b)--Authorize additional purchases on Microsoft Enterprise Agreement Page 2 Dell utilizes recognized competitively bid collectives (e.g. National Association of State Procurement Officials (NASPO)) for government pricing. Enterprise Agreements with Microsoft include Software Assurance which saves the City money by automatically including updated products for the licenses. The Enterprise Agreement initially approved by Council was for a narrow scope of products; this staff report seeks to expand on the offerings available. Environmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Priority/City Manager 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.” Attachments C-10933- Volume Licensing Program (Enterprise Agreement) - 2025 - Dell Inc 07152025 Staff Report - Award bid and License Purchases - Microsoft 365 CITY OF REDDING REPORT TO THE CITY COUNCIL Recommendation Authorize and approve the following actions relative to Bid Schedule No. 5556 Microsoft 365 Annual Licenses: (1) Consent and grant bid relief, pursuant to Insight Public Sector, Inc.’s (Insight) July 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 Dell 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 annual license 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 G5 Security) $512.40 per person per year;  Minimal Licenses (F3 with F5 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 Minimal Licenses $108.72 per person per year. MEETING DATE: July 15, 2025 ITEM NO. 4.3.(a) FROM: ***APPROVED BY*** tvanboekel@cityofredding.org btippin@cityofredding.org SUBJECT: 4.3(a)--Award Bid No. 5556 for Microsoft 365 Annual Licenses Tony Van Boekel, Chief Information Officer/IT Director Report to Redding City Council July 10, 2025 Re: 4.3(a)‐‐Award of Bid Schedule No. 5556 Microsoft 365 Annual Licenses Page 2 The cost of these licenses was partially included in Budget Resolution No. 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. Alternative 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 Dell 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 Priority/City Manager 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.” Attachments ^5556 Bid Tab ^Insight Bid Withdraw ^C-10813 - License Support Provider Agreement - 2025 - Insight Public Sector Inc_ (002) Previous Staff Report - April 1, 2025 Reso. 2025-021 - Appropriating $930,390 for FY 24-25 for the use of Microsoft 365