Staff Report.SoftwareONE
PREPARED BY: Sai Kim
IT Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 06/01/2021
ITEM NO: 6
DATE: May 19, 2021
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Purchase Microsoft Software Licensing from
SoftwareONE in an Amount Not to Exceed $73,724.17.
RECOMMENDATION:
Authorize the Town Manager to purchase Microsoft software licensing from SoftwareONE in an
amount not to exceed $73,724.17.
BACKGROUND:
The Fiscal Year 2021/22 Operating Budget anticipated the annual renewal of Microsoft
software licensing in the Town’s Information Technology Budget Operating Expenditures line.
Generally, the Town Council does not review routine software licensing purchase requests;
however, as software usage has increased and since the combined purchase price for these
licenses exceeds the Town Manager’s purchasing authority of $50,000, this purchase requires
Council approval pursuant to the Town Purchasing Policy.
DISCUSSION:
This Microsoft software purchase includes annual licensing for server operating systems, server
management, server applications, Office 365 services, and security software on both staff
accounts and in the cloud.
In accordance with the Town Purchasing Policy Section 7c regarding Cooperative Purchasing,
the prices for Microsoft software license renewals are negotiated by the County of Riverside
and sold by volume licensing partner SoftwareONE. Most California agencies, from large ones
such as the Department of Motor Vehicles, to small cities and special districts, use this
purchasing arrangement to obtain the best prices.
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SUBJECT: SoftwareONE Microsoft Software Licensing
DATE: May 19, 2021
DISCUSSION (continued):
The Town’s current Volume Licensing Agreement (Attachment 1) is valid through June 30, 2022.
The agreement has no monetary value and is a means of securing pricing. SoftwareONE is the
vendor the Town purchases the license through, and the agreement is with Microsoft. The
invoice from SoftwareONE for the FY 2021/22 licensing is Attachment 2 to this report.
An interruption in Microsoft licensing software would halt the daily computer operations of
Town staff.
CONCLUSION:
Staff recommends that the Town Manager purchase Microsoft software licensing from
SoftwareONE for FY 2021/22 in an amount not to exceed $73,724.17.
COORDINATION:
The Finance Department, IT, and Town Manager’s Office coordinated this report.
FISCAL IMPACT:
The fiscal impact is $73,724.17 in the FY 2021/22 budget and there are sufficient funds available
in the IT budget to purchase these software licenses as anticipated.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Volume Licensing Agreement
2. SoftwareONE Invoice