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Renew Agreement for Microsoft Volume Licensing January 21, 2020 Page 2 The City of Santa Ana purchases Microsoft software licenses through a joint, volume licensing program known as the County of Riverside's Microsoft Enterprise Agreement ("MSEA"). This request is for a renewal of the City's MSEA. The County of Riverside's master agreement with Microsoft is based on participation of any county, city, and special district in the state. The very large volume of Microsoft products used by these statewide agencies has allowed the County of Riverside to obtain deep discounts for these products, which in turn are passed on to agencies participating under this master agreement with Microsoft. Specifically, this is a request for the City to participate in the volume licensing and support services agreements for Microsoft Product Licensing and Maintenance as described in the Riverside County Microsoft Enterprise Agreement (Master Agreement No. 8084445), effective August 23, 2019. The City's participation under this agreement will ensure the City the lowest pricing for Microsoft licensing and support services. Acting as Microsoft's reseller for the agreement will be Software One, Inc. The County of Riverside conducted a competitive process among ten firms qualified to serve as the Licensing Solution Provider (LSP) under the County of Riverside / Microsoft agreement. Software One, Inc. entered into Licensing Solution Provider Agreement Number PSA-0001530 in October 22, 2019 (Exhibit 2). In summary, Staff requests that the City Council approval of a three-year enterprise volume licensing agreement and a three-year Select program agreement with Microsoft Licensing, GP, using the terms and conditions set forth by the County of Riverside, California using Software One, Inc. as the Licensing Solution Provider (Exhibit 1). STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #7 — Team Santa Ana, Objective #2 (establish communications plans to engage and inform employees and the community about City Activities), Strategy D (invest in software/resources that will help streamline the flow of information to City staff and the public). FISCAL IMPACT Funds are budgeted and are available in the Information Technology Fund 10920147-62306. The annual amount fluctuates to support changes in City business operations. The table below indicates an estimate of what may be required, allowing for growth. Fiscal Account Unit — Fund Accounting Unit, Amount Year Account # Description Account Description 2019-20 10920147-62306 Information Data Center $250,000 Technology 2020-21 10920147-62306 Information Data Center $400,000 Technology 2021-22 10920147-62306 Information Data Center $550,000 Technology 25G-2