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7.1 Staff Report PREPARED BY: CHRIS GJERDE 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: 06/20/2017 ITEM NO: 7.1 DATE: JUNE 16, 2017 TO: MAYOR AND TOWN COUNCIL FROM: LAUREL PREVETTI, TOWN MANAGER SUBJECT: AUTHORIZE THE TOWN MANAGER TO PURCHASE MICROSOFT LICENSING FROM SOFTWAREONE IN AN AMOUNT NOT TO EXCEED $59,888.67. RECOMMENDATION: Authorize the Town Manager to purchase Microsoft licensing from SoftwareONE in an amount not to exceed $59,888.67. BACKGROUND: The Fiscal Year (FY) 2016/17 Operating Budget anticipated the annual renewal of Microsoft software licensing in the Town’s Management Information Systems (MIS) budget “Operating Expenditures” line (page D-63). 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 replacements exceeds the Town Manager’s purchasing authority of $50,000, this purchase requires Council action under the Town’s Purchasing Policy. DISCUSSION: Microsoft software costs in this purchase include annual licensing for server operating systems, server management, server applications, office productivity, and security software on staff desktops and in the cloud. PAGE 2 OF 2 SUBJECT: AUTHORIZE THE TOWN MANAGER TO PURCHASE MICROSOFT LICENSING FROM SOFTWAREONE IN AN AMOUNT NOT TO EXCEED $59,888.67. DATE: JUNE 16, 2017 S:\COUNCIL REPORTS\2017\06-20-17\MS License\Staff Report - SoftwareONE MS License FINAL.docx 6/16/2017 2:16 PM CGG DISCUSSION (cont’d): In accordance with the Town’s Purchasing Policy, Section 7c (Cooperative Purchasing), the prices for Microsoft software 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 towns and special districts, use this Enterprise Agreement purchasing arrangement to get the best prices. CONCLUSION: Authorize the Town Manager to purchase Microsoft licensing from SoftwareONE in an amount not to exceed $59,888.67. COORDINATION: The Finance Department, IT, and Town Manager’s Office coordinated this report. FISCAL IMPACT: There are sufficient funds available in the Management Information Systems Fund to purchase these software licenses. ENVIRONMENTAL ASSESSMENT: This is not a project defined under CEQA, and no further action is required.