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HomeMy WebLinkAbout2025-12-09; City Council; 04; Approval of an Agreement for the Renewal of the Microsoft Enterprise Agreement with CDW-G, LLC, ending Dec. 31, 2028CA Review AZ Meeting Date: Dec. 9, 2025 To: Mayor and City Council From: Geoff Patnoe, City Manager Staff Contact: Maria Callander, IT Director maria.callander@carlsbadca.gov, 442-602-2454 Subject: Approval of an Agreement for the Renewal of the Microsoft Enterprise Agreement with CDW-G, LLC, ending Dec. 31, 2028 Districts: All Recommended Action Adopt a resolution authorizing the City Manager to execute an agreement with CDW Government, LLC for Microsoft licensing services in an amount not to exceed $2,836,667.16 for a three-year term ending Dec. 31, 2028. Executive Summary The city purchases Microsoft products under a Microsoft enterprise enrollment agreement through CDW Government LLC (CDW-G), a licensed reseller. CDW-G provides the city with discounted rates for software licensing, cybersecurity tools, and maintenance and support of the city’s Microsoft inventory. This agreement ensures continued access to essential Microsoft products and services for city staff and patrons, and the renewal will maintain the city’s subscription to Microsoft 365 and other tools to keep technology current and secure. The City Council is being asked to authorize the City Manager to execute the agreement with CDW Government LLC. Under Carlsbad Municipal Code, Section 3.28.050 - Procurement of Goods, City Council approval is required when the cost to the city for procurement of goods is more than $100,000 per agreement year. Explanation & Analysis Overview Microsoft software is used by more than 1,400 city staff, volunteers and contractors and is installed on more than 1,500 computers and servers in the city, including those used by library patrons. The products currently in use in the city include desktop and server operating systems, database systems, cloud infrastructure and the cloud-based office productivity tool known as Microsoft 365. Dec. 9, 2025 Item #4 Page 1 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D This agreement supports the city’s cybersecurity efforts by providing regular updates, security patches and compliance tools. Microsoft 365 includes advanced security features to protect against the ongoing risk of a cyberattack to digital systems, which could significantly impact city operations. These features improve threat detection, protect sensitive data and defend against phishing and malware attacks to keep city systems secure and operational. Staff achieved maximum value in this renewal by implementing a tiered system for seasonal and front-line staff, ensuring that higher valued licenses are allocated efficiently. This approach used past data and actual usage to help the city get better value and match its technology resources to its operational needs. This new agreement also incorporates the licensing changes approved by the City Council on Dec. 3, 2024, that consolidated numerous security items into the Microsoft platform, helping the city to continue to enhance its security footprint while conducting business more efficiently. The existing Microsoft enterprise enrollment agreement, approved by the City Council on Dec. 13, 2022, expires on Dec. 31, 2025. Cooperative purchasing agreement CDW-G was selected as reseller based on its experience and capability to add value to the city. Microsoft software licenses and services will be purchased through a cooperative purchasing agreement, in compliance with Carlsbad Municipal Code, Chapter 3.28.100 - Cooperative Purchasing.1 CDW Government LLC is an authorized Microsoft reseller and provides products and technology services under the County of Riverside’s licensed support provider agreement (No. ITARC – 00933), for Microsoft products and services. The prices for the licenses and services in the proposed agreement are the same prices quoted from the County of Riverside’s agreement. Carlsbad Municipal Code Section 3.28.100, Cooperative Purchasing, gives the city’s Purchasing Officer the authority to join with other public or quasi-public agencies in cooperative purchasing plans or programs for the purchase of goods or services when determined by the purchasing officer to be in the city’s best interest. The Purchasing Officer may buy directly from a vendor at a price established by another public agency when the other agency has made its purchase in a competitive manner. CDW-G is an authorized reseller and provides products and technology services under the County of Riverside’s Licensed Support Provider Agreement (No. ITARC – 00933), for Microsoft Products and Services.2 The cost of this purchase was quoted from that contract. The Purchasing Officer’s memo authorizing the use of the cooperative purchasing agreement is attached as Exhibit 2. 1 Cooperative purchasing is when a government agency uses an existing procurement contract from another agency to create its own contract to purchase the same or similar items or services directly from the vendor. Government agencies often use such cooperatives to reduce their procurement costs. 2 The County of Riverside’s licensed support provider agreement provides for Microsoft software and licensing discounts through negotiations with Microsoft through contracts established with authorized participating re- sellers. Cities can use this contract to buy directly from the supplier or reseller. Dec. 9, 2025 Item #4 Page 2 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Fiscal Analysis The three-year cost of the agreement with CDW-G is not to exceed $2,836,667.16, with an annual payment of $945,555.72. Funding for the first year is in the approved fiscal year 2025-26 Information Technology Department’s Operating Budget. Future years, funding will be requested during the appropriate fiscal year’s budget process. During the term of this agreement, the city will have to annually account for any increased use of Microsoft products beyond what is included in the proposed agreement. Next Steps With the City Council’s approval, the City Manager will execute the agreement with CDW-G. Environmental Evaluation The proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(a) and does not require environmental review under CEQA Guidelines Section 15060(c)(2) because the action is limited to the purchase of the Microsoft software subscription renewal from CDW-G. The action has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Exhibits 1.City Council resolution 2.Purchasing Officer’s memorandum Dec. 9, 2025 Item #4 Page 3 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Exhibit 1 RESOLUTION NO. 2025-261 . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH CDW GOVERNMENT, LLC FOR MICROSOFT LICENSING SERVICES IN AN AMOUNT NOT TO EXCEED $2,836,667.16 FOR A THREE- YEAR TERM ENDING DEC. 31, 2028 WHEREAS, the City of Carlsbad (City) uses numerous Microsoft software products and hosted services and has determined that the most cost-effective way to purchase those products and services is under Microsoft's Enterprise Agreement Program through a reseller agreement with CDW Government, LLC (CDW-G); and WHEREAS, the City currently purchases Microsoft products, maintenance and hosted services under a Microsoft Enterprise Agreement with CDW-G that was approved by City Council in 2022, for a term that ends on Dec. 31, 2025 (Agreement); and WHEREAS, CDW-G, is an authorized Microsoft reseller, and provides products and technology services under the County of Riverside’s Licensed Support Provider Agreement (No. ITARC – 00933), for Microsoft Products and Services (Licensed Support Provider Agreement); and WHEREAS, under Carlsbad Municipal Code 3.28.100 - Cooperative Purchasing, the Purchasing Officer has the authority to join with other public agencies for the purchase of goods or services as allowed by law, when it is in the best interest of the City; and WHEREAS, the Purchasing Officer has reviewed the Licensed Support Provider Agreement and determined that the purchase of Microsoft software products and hosted services through the Licensed Support Provider Agreement is in the best interest of the city; and WHEREAS, the budget to procure the products and services in the Agreement is available in the Information Technology Department’s fiscal year 2025-26 Operating Budget; and WHEREAS, the funding for the Agreement’s future years will be considered on an annual basis in the Information Technology Department’s annual budget requests; and WHEREAS, the payments of the annual true-up are not included in the not to exceed amount of the Agreement but will be handled on an annual basis pursuant to Carlsbad Municipal Code, Chapter 3.28 Purchasing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: Dec. 9, 2025 Item #4 Page 4 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D 1.That the above recitations are true and correct. 2.The proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(a) and does not require environmental review under CEQA Guidelines Section 15060(c)(2) because the action is limited to the purchase of the Microsoft software subscription renewal from CDW-G. The action has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. 3.That the Agreement with CDW-G (Attachment A), is approved and the City Manager, or his designee, is authorized to execute all required procurement documents on behalf of the City. 4.That the purchase of Microsoft products and services under the Agreement, shall not exceed $2,836,667.16 for a three-year term ending Dec. 31, 2028, with three annual payments of $945,555.72. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 9th day of December, 2025, by the following vote, to wit: AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin. NAYS: None. ABSTAIN: None. ABSENT: None._______________________________________ KEITH BLACKBURN, Mayor _______________________________________ SHERRY FREISINGER, City Clerk (SEAL) Dec. 9, 2025 Item #4 Page 5 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Da t e 10 / 2 3 / 2 5 Ac c o u n t M a n a g e r Je f f B u t c h k o fo r VS L S p e c i a l i s t Bre n t C a m e r o n Ch a n n e l P r i c e S h e e t M o n t h Oct Un l e s s o t h e r w i s e n o t e d , A l l Q u o t e s e x p i r e u p o n c u r r e n t m o n t h ' s e n d Mi c r o s o f t P a r t # De s c r i p t i o n Le v e l Qu a n t i t y Pr i c e Ex t e n d e d Pr i c e Ex t e n d e d Pr i c e Ex t e n d e d J5 U - 0 0 0 0 1 Az u r e p r e p a y m e n t - U S G o v D 34 $1 , 2 2 4 . 0 0 41 , 6 1 6 . 0 0 $ 1, 2 2 4 . 0 0 $ 41 , 6 1 6 . 0 0 $ 1, 2 2 4 . 0 0 $ 41 , 6 1 6 . 0 0 $ YG D - 0 0 0 0 1 Co p i l o t S t u d i o G C C S u b ( M e s s a g e s ) D 1 $2 , 4 4 8 . 0 0 2, 4 4 8 . 0 0 $ 2, 4 4 8 . 0 0 $ 2, 4 4 8 . 0 0 $ 2, 4 4 8 . 0 0 $ 2, 4 4 8 . 0 0 $ 8S 2 - 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Do c u s i g n E n v e l o p e I D : 6 E 8 E F D 2 A - 0 0 4 3 - 4 F E 1 - 8 9 C 2 - F 4 3 5 A 3 F B 1 E 7 4 Attachment A Dec. 9, 2025 Item #4 Page 6 of 44 Do c u s i g n E n v e l o p e I D : D A C 2 B 6 A 6 - D 2 E 5 - 4 0 D 2 - 9 E D 8 - F 8 2 D 0 9 0 6 1 6 4 D Docusign Envelope ID: 6E8EFD2A-0043-4FE1-89C2-F435A3FB1E74 Dec. 9, 2025 Item #4 Page 7 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D 12/10/2025 City Manager Geoff Patnoe Docusign Envelope ID: 6E8EFD2A-0043-4FE1-89C2-F435A3FB1E74 Dec. 9, 2025 Item #4 Page 8 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Docusign Envelope ID: 6E8EFD2A-0043-4FE1-89C2-F435A3FB1E74 Dec. 9, 2025 Item #4 Page 9 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Docusign Envelope ID: 6E8EFD2A-0043-4FE1-89C2-F435A3FB1E74 Dec. 9, 2025 Item #4 Page 10 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Docusign Envelope ID: 6E8EFD2A-0043-4FE1-89C2-F435A3FB1E74 Dec. 9, 2025 Item #4 Page 11 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Docusign Envelope ID: 6E8EFD2A-0043-4FE1-89C2-F435A3FB1E74 Dec. 9, 2025 Item #4 Page 12 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Docusign Envelope ID: 6E8EFD2A-0043-4FE1-89C2-F435A3FB1E74 Dec. 9, 2025 Item #4 Page 13 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Docusign Envelope ID: 6E8EFD2A-0043-4FE1-89C2-F435A3FB1E74 Dec. 9, 2025 Item #4 Page 14 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Docusign Envelope ID: 6E8EFD2A-0043-4FE1-89C2-F435A3FB1E74 Dec. 9, 2025 Item #4 Page 15 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Docusign Envelope ID: 6E8EFD2A-0043-4FE1-89C2-F435A3FB1E74 Dec. 9, 2025 Item #4 Page 16 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Docusign Envelope ID: 6E8EFD2A-0043-4FE1-89C2-F435A3FB1E74 Dec. 9, 2025 Item #4 Page 17 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Docusign Envelope 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Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Docusign Envelope ID: 6E8EFD2A-0043-4FE1-89C2-F435A3FB1E74 Dec. 9, 2025 Item #4 Page 38 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Docusign Envelope ID: 6E8EFD2A-0043-4FE1-89C2-F435A3FB1E74 Dec. 9, 2025 Item #4 Page 39 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Docusign Envelope ID: 6E8EFD2A-0043-4FE1-89C2-F435A3FB1E74 Dec. 9, 2025 Item #4 Page 40 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Docusign Envelope ID: 6E8EFD2A-0043-4FE1-89C2-F435A3FB1E74 Dec. 9, 2025 Item #4 Page 41 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Docusign Envelope ID: 6E8EFD2A-0043-4FE1-89C2-F435A3FB1E74 Dec. 9, 2025 Item #4 Page 42 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Exhibit 2 Information Technology Department 1635 Faraday Ave Carlsbad, CA 92008 442-339-2450 t Memorandum November 18, 2025 To: Roxanne Muhlmeister, Assistant Finance Director/Purchasing Officer From: Michael Pugliese, IT Operations Manager Via: Maria Callander, IT Director Re: Approve the cooperative use of the County of Riverside’s Cooperative Purchasing Enterprise Agreement with CDW-G, LLC. The IT Department would like to cooperatively use the County of Riverside’s Licensed Support Provider Agreement (No. ITARC – 00933), for Microsoft Products and Services contract with CDW-G, LLC to provide for the purchase of a three-year Microsoft Enterprise Agreement for Microsoft licensing services ending December 31, 2028, in a not to exceed agreement amount of $2,836,667.16. This request is in the best interest of the City of Carlsbad as the city has standardized the use of Microsoft products and CDW-G is a preferred vendor. Additionally, CDW-G has worked with the city on other past projects that provide the company with a unique understanding of our systems and goals. CDW-G is a full-service vendor that provides for the procurement of software, hardware, licenses, support, maintenance, and professional services for many of the IT Department’s needs. Additionally, Microsoft offers preferred pricing to primary municipalities by state. For California, the County of Riverside manages that agreement. As per Carlsbad Municipal Code Section 3.28.100 – Cooperative purchasing, “The purchasing officer shall have the authority to join with other public or quasi-public agencies in cooperative purchasing plans or programs for the purchase of goods and/or services by contract, arrangement or agreement as allowed by law and as determined by the purchasing officer to be in the city’s best interest. The purchasing officer may buy directly from a vendor at a price established by another public agency when the other agency has made their purchase in a competitive manner.” With Purchasing Officer support, staff will recommend the City Council adopt a resolution authorizing the execution of an agreement with CDW-G for the purchase of products and services for a not to exceed agreement amount of $2,836,667.16 at the December 9, 2025, City Council Meeting. Dec. 9, 2025 Item #4 Page 43 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D Muhlmeister November 18, 2025 Page 2 Approval to Participate in Cooperative Purchasing And Support for Exemption from Formal Bidding _____________________________________ ____________ Roxanne Muhlmeister, Date Assistant Finance Director/Purchasing Officer CC: Maria Callander, IT Department Director Cindie McMahon, City Attorney Brent Gerber, Senior Management Analyst Shea Sainz, Senior Contract Administrator 12/2/2025 Dec. 9, 2025 Item #4 Page 44 of 44 Docusign Envelope ID: DAC2B6A6-D2E5-40D2-9ED8-F82D0906164D