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Home My WebLink About09 APPROVAL OF MICROSOFT ENTERPRISE AGREEMENT RENEWAL 2025-2028Docusign Envelope ID: 38064E8A-4F76-44FF-82D5-F9610C41D36F MEETING DATE: TO: FROM: SUBJECT: SUMMARY: Agenda Item 9 *,rai AGENDA REPORT Reviewed: a`V� City Manager Finance Director AUGUST 5, 2025 ALDO E. SCHINDLER, CITY MANAGER JENNIFER KING, FINANCE DIRECTOR/CITY TREASURER APPROVAL OF MICROSOFT ENTERPRISE AGREEMENT RENEWAL 2025-2028 The City currently has a Microsoft Enterprise Agreement for organization -wide licensing of Microsoft solutions such as Office 365, Azure (a cloud computing platform for application and service management), Windows operating system, and other Microsoft applications. The current agreement expires in August 2025. Staff recommends that the agreement be renewed for a three-year term through August 2028. RECOMMENDATION: It is recommended that the City Council authorize the City Manager or designee to execute the three-year agreement at the stated amount with up to 10% contingency through SoftChoice Corporation, a Microsoft Licensing Solutions Provider. FISCAL IMPACT: The annual cost of the Microsoft Enterprise Agreement is $207,000. Sufficient budget has been appropriated in the Fiscal Year 2025-2026 Information Technology Fund to support year one of the agreement. Costs for subsequent years will be incorporated in future budget for the City Council's consideration. CORRELATION TO THE STRATEGIC PLAN: This project contributes to the fulfillment of the City's Strategic Plan Goal E: Organizational Excellence and Customer Services, Strategy 5; Implement a Citywide information technology plan to prioritize technology investments and ensure that technology serves the purpose of customer services, staff efficiency, financial accountability and excellent service delivery. Specifically, the City's email and business applications are hosted on Microsoft platforms, therefore, requiring Microsoft licenses for its usage. Docusign Envelope ID: 38064E8A-4F76-44FF-82D5-F9610C41D36F City Council Agenda Report Microsoft Enterprise Agreement Renewal August 5, 2025 Page 2 BACKGROUND AND DISCUSSION: The City relies on Microsoft products due to their widespread use, familiarity, and comprehensive suite of tools for productivity, collaboration, and security. A Microsoft Enterprise Agreement is a volume licensing program that offers the best value to organizations with 500 and more users or devices. The agreement, including software such as 0365 email, Word, Excel, and Windows operating system, is a standard practice in many industries. The agreement's Software Assurance feature allows the City to automatically access the latest software and technologies. A Microsoft Enterprise Agreement is usually executed between an user organization such as the City of Tustin, Microsoft, and a Microsoft Licensing Solution Provider (LSP), which advises the City on how to optimize licensing based on needs and negotiate the best offer from Microsoft. SoftChoice is a designated Microsoft LSP and has negotiated the three- year renewal terms as shown in the attachment to the agenda report. Signed by- 5 6" 4D86AFAFFF77473... Jennifer King Finance Director/City Treasurer ESigned by: batLm ) DtM V'b 43COEF28B3AD48A... Joachim Romero IT Manager Attachment: Microsoft Enterprise Agreement 2025-2028 Docusign Envelope ID: 38064E8A-4F76-44FF-82D5-F961OC41 D36F J01IGf101GC t;Orporation 314 W Superior St #400 • Softchoice Chicago, IL 60654 Sales/Order desk f World Wide co, a o9y Phone: 38 Fax: (800) 268-76397639 Ship To: Joachim Romero City of Tustin 300 CENTENNIAL WAY TUSTIN, CA 92780-3767 Quote Prepared For Quote Sent By Anniversary Date Authorization Number Agreement End Date Comments Joachim Romero City of Tustin Phone: 7145733326 Email: jromero@tustinca.org Horacio Rodriguez horacio.rodriguez@softchoice.com Phone: 3126559002 Fax: Quote Quote Q-2470349 Date 28-Jul-2025 Bill To: Joachim Romero City of Tustin 300 CENTENNIAL WAY TUSTIN CA 92780-3767 SLG EA - Net New Contract - Year 1 of 3 2000410409 AAD-34704 M365 G3 Unified FUSL GCC Sub Per User 505 Upfront 01-Aug- 31-Jul- United Subscription $401.04 $202,525.20 2025 2026 States 2000642772 6U1 00004 Power BI Premium USL GCC Sub Per User 1 Upfront 01-Aug- 31-Jul- United Subscription $227.28 $227.28 2025 2026 States Docusign Envelope ID: 38064E8A-4F76-44FF-82D5-F961OC41 D36F 2000410277 7MS-00001 Project P3 GCC Sub Per User 5 Upfront 01-Aug- 31-Jul- United Subscription $284.04 $1,420.20 2025 2026 States 2000674814 NYH-00001 Teams AC with Dial Out US/CA GCC Sub 450 Upfront 01-Aug- 31-Jul- United Subscription $0.00 $0.00 Add -on 2025 2026 States 2000063170 6QK-00001 Azure prepayment 1 Upfront 01-Aug- 31-Jul- United Subscription $1,200.00 $1,200.00 2025 2026 States GROUP TOTAL $205,372.68 5w to -Net New contract - Year z of s M Billing Fre uenc Start Date Unit Price Extended Price 2000410409 AAD-34704 M365 G3 Unified FUSL GCC Sub Per User 505 Upfront 01-Aug- 31-Jul- United Subscription $401.04 $202,525.20 2026 2027 States 2000642772 6U1-00004 Power BI Premium USL GCC Sub Per User 1 Upfront 01-Aug- 31-Jul- United Subscription $227.28 $227.28 2026 2027 States 2000410277 7MS-00001 Project P3 GCC Sub Per User 5 Upfront 01-Aug- 31-Jul- United Subscription $284.04 $1,420.20 2026 2027 States 2000674814 NYH-00001 Teams AC with Dial Out US/CA GCC Sub 450 Upfront 01-Aug- 31-Jul- United Subscription $0.00 $0.00 Add -on 2026 2027 States 2000063170 6QK-00001 Azure prepayment 1 Upfront 01-Aug- 31-Jul- United Subscription $1,200.00 $1,200.00 2026 2027 States GROUP TOTAL $205,372.68 SLG EA - Net New Contract - Year 3 of 3 Page 2 of 4 Docusign Envelope ID: 38064E8A-4F76-44FF-82D5-F961OC41 D36F 2000410409 AAD-34704 M365 G3 Unified FUSL GCC Sub Per User 505 Upfront 01-Aug- 31-Jul- United Subscription $401.04 $202,525.20 2027 2028 States 2000642772 6U1-00004 Power BI Premium USL GCC Sub Per User 1 Upfront 01-Aug- 31-Jul- United Subscription $227.28 $227.28 2027 2028 States 2000410277 7MS-00001 Project P3 GCC Sub Per User 5 Upfront 01-Aug- 31-Jul- United Subscription $284.04 $1,420.20 2027 2028 States 2000674814 NYH-00001 Teams AC with Dial Out US/CA GCC Sub 450 Upfront 01-Aug- 31-Jul- United Subscription $0.00 $0.00 Add -on 2027 2028 States 2000063170 6QK-00001 Azure prepayment 1 Upfront 01-Aug- 31-Jul- United Subscription $1,200.00 $1,200.00 2027 2028 States GROUP TOTAL $205,372.68 SUBTOTAL $616,118.04 DELIVERY: Ground - 3 to 5 days $0.00 State Tax $0.00 Local Tax $0.00 All currency in this quote is in (USD). TOTAL $616,118.04 Payment options are only available in listed currency and not billable in other currencies. Pricing, availability, and special offers are subject to change at any time. This document and the transaction(s) to which it pertains are governed by Softchoice's online terms of sale, unless a separate purchase agreement was signed by both your company and Softchoice, in which case, that separate agreement will govern. Softchoice's terms of sale can be found http://www.softchoice.com/softchoice-terms-and-conditions- for-products As noted in the Microsoft Enterprise Agreement, any online subscription services within this quote will automatically renew annually unless Softchoice is notified in writing at least 30 days prior to your anniversary. If you are within the final year of your agreement the previous statement does not apply; new products and quantities will be reviewed in your renewal process. Page 3 of 4 Docusign Envelope ID: 38064E8A-4F76-44FF-82D5-F9610C41 D36F Signature Name: Title Date PO#: Page 4 of 4