HomeMy WebLinkAbout5.F.5. Microsoft License Renewal Charges
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CITY OF SHAKOPEE
Memorandum CONSENT
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: Microsoft License Renewal Charges
DATE: June 28,2007
INTRODUCTION:
The Council is asked to authorize payment of an additional $1,615.19 for the renewal of a
licensing agreement with Microsoft for the City's computer system.
BACKGROUND:
At the June 5th City Council meeting, the Council authorized renewing the City's service
agreement with Microsoft Software, at a cost not to exceed $35,000.
The $35,000 figure was based on Microsoft's assurance to us that it would not be greater
than that amount. However, for reasons that are unclear (most likely, however, a change
in the final number of servers, desk top computers, e-mail accounts, and other software
applications that are covered by the license), the final bill being paid to Logis (the
coordinator of this purchase) is $36,615.19. In other words, the bill would exceed what
had been authorized by the Council previously by $1,615.19. That payment needs to be
made.
BUDGET IMPACT:
The $1,615.19 is available in the IT budget line item. Payment of this means that the
service agreement line item will be reduced by that amount.
RECOMMENDATION:
I recommend that the excess amount be paid.
RELATIONSHIP TO VISIONING:
This supports Goal F - Housekeeping.
ACTION REQUIRED:
If the Council concurs, it should, by motion, authorize payment of $1 ,615.19 to Logis, as
final payment for renewing the City's service agreement for Microsoft Software.
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Mark McNeill
City Administrator
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City of Shakopee 5, F: 0.
Memorandum
TO: Mayor & City Council CONSEr~T
Mark McNeill, City Administrator
FROM: Carrie Duckett, Infonnation Technology Coordinator
SUBJECT: Microsoft License Renewal
DATE: May 31,2007
Introduction
The Councilis asked to authorize renewing the City's service agreement for its Microsoft
Software at a cost not to exceed $35,000.
Background
The City currently utilizes Microsoft Software on 11 servers, 166 desktop computers, 170 e-mail
accounts, 166 Office Suites, and other database intensive software applications. Although these
are the current numbers it is not uncommon to add systems throughout the year with new
projects, new hires, etc. Microsoft Software Assurance (SA) is required in order to stay
compliant with our Microsoft licenses.
Microsoft SA is a maintenance program that provides us with a variety of benefits, including
deployment planning, staff training, product support, and software upgrades. It allows the City
to stay current with the continually changing Microsoft products and helps IT staff minimize
downtime by providing phone support 24 hours a day and web support during regular business
hours.
Without SA, software upgrades and maintenance would not be available. When future upgrades
are required, Microsoft licenses would have to be purchased at a much greater cost. This would
limit the City's ability to keep up-to-date with the most current software, which is utilized by
City employees on a day-to-day basis.
Budget Impact
We currently have an invoice for $13,780.52, which represents the first installment on this
renewal. The total cost for the renewal is expected to be between $34,000 and $35,000. This is
somewhat more than was budgeted for in the 2007 IT budget, but can be accommodated through
careful management of other iT expenditures.
This is an annual cost that is set by Microsoft and based on the number oflicenses we have.
Requested Action
The Council is asked to authorize appropriate city staff to renew our Microsoft License Service
Agreement for 2007 at a cost not to exceed $35,000 from the IT budget.