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REQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: JANUARY 4, 2011 TITLE: APPROVED ? As Recommended AMENDMENT TO AGREEMENT FOR VOLUME ? As Amended ? Ordinance on 1s` Reading LICENSING FOR MICROSOFT SOFTWARE AND ? Ordinance on 2nd Reading PRODUCTS THROUGH COMPUCOM, INC. ? Implementing Resolution ? Set Public Hearing For CONTINUED TO r zz, FILE NUMBER CIT MANAGER RECOMMENDED ACTION Authorize the City Manager and Clerk of the Council to execute the attached amendment to the Enterprise Licensing Agreement with CompuCom, Inc., to extend the term for an additional three-year period in an annual amount of $432,000 subject to non-substantive changes approved by the City Manager and City Attorney. DISCUSSION Software license is a legal instrument which grants end-users the right to use and redistribute software without copyright infringement. As such, the City is required to obtain software licensing to comply with legal requirements by purchasing individual licenses or through an enterprise licensing agreement. Purchasing an enterprise license for the entire organization is a cost effective means for managing software as a resource and insuring the City's compliance with software use laws and agreements. City Council authorized such a volume licensing agreement in January 2008. Staff requests Council approval an agreement amendment to extend the term of Enterprise and Select Volume Licensing Agreements with Microsoft Licensing, GP for an additional three-year term. The City licenses a great many products from Microsoft Corporation which is by far the largest manufacturer of software used by the City. The Microsoft Enterprise Agreement, negotiated by the County of Riverside, has provided the City with a managed, all-inclusive solution to license Microsoft products. Acting as Microsoft's reseller for the agreement has been CompuCom, Inc. CompuCom was selected after the City conducted in 2008 a competitive process among five firms qualified to serve as the "Large Account Reseller" under the County of Riverside/ Microsoft agreement. Over the past three years, CompuCom has provided excellent service to the City and is again recommended to act as the "Large Account Reseller" on behalf of the City under the Microsoft volume license programs. By piggy-backing on the County of Riverside's Microsoft Enterprise Agreement, the City will receive substantial savings over either consumer pricing or the standard Microsoft government rates for other volume licensing programs. In addition, the agreement entitles the City to premium services upgrades, patches, revisions and technical support during the 3-year term of the agreement. The City would also piggy-back on a State of California Select volume license agreement for the occasions 2501-1