City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Pennie Arounsack, Director of Technology & Innovation |
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Prepared by: |
Erie Luces, IT Applications Manager |
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Date: |
April 15, 2025 |
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Subject: |
Microsoft Enterprise License 3-year Agreement |
Recommendation:
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Adopt a resolution approving a three-year Microsoft Enterprise Agreement with Dell Marketing LP for Microsoft subscriptions and services. The total contract amount is $1,416,673.77, plus a 10% contingency of $141,667.38 for a total amount not-to-exceed $1,558,341.15, approve a budget appropriation for FY25 in the amount of $172,224.59 for Year One and authorizing the City Manager or designee to complete and execute all associated documents and take all appropriate actions necessary to carry out the purpose and intent of the resolution. This agreement will be executed through the County of Riverside’s cooperative purchasing contract, ensuring cost savings and procurement efficiency.
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Background:
The City of Manteca relies on Microsoft products as a core part of its technology environment. These tools are essential for day-to-day operations, internal systems, and the delivery of public services. To support long-term technology planning, the City entered into a Microsoft licensing agreement in 2004. This agreement has made it easier to manage software citywide while keeping pace with evolving needs.
As the City’s use of technology has grown, so has the complexity of its digital environment. Additional staff, new devices, and expanded services have increased the demand for software that can adapt and scale. In 2024, the City adopted Microsoft Office 365, strengthening its ability to support a modern workforce. The platform helps employees stay connected, improves access to tools, and supports a more agile work environment.
This move reflects the City’s broader commitment to modernization. Office 365 is part of a long-term strategy to keep technology current, responsive, and aligned with how City services are delivered today.
The new Enterprise Agreement offers a stable and scalable licensing structure that supports the City’s growing technology environment. By participating in the County of Riverside’s cooperative Microsoft agreement, the City benefits from a regionally coordinated model that promotes consistency and shared best practices. This collaboration also provides access to enterprise-level support and positions the City to better anticipate and respond to future technology needs.
Fiscal Impact:
Staff recommends approving an appropriation from Information Technology fund balance to the Maintenance Agreements and Licenses Account (830.07.00.170-6350.01) in the amount of $172,224.59. The current FY25 Budget includes $300,000 for the Microsoft Enterprise Agreement which covers part of the cost for year one of the proposed contract. Future annual payments will be budgeted as follows:
• FY 2025-26 (2/1/25 - 1/31/26): $472,224.59 (subject to annual budget approval)
• FY 2026-27 (2/1/26 - 1/31/27): $472,224.59 (subject to annual budget approval)
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - Agreement
3. Attachment 3 - Quotation
4. Attachment 4 - County of Riverside Cooperative Agreement