Item Coversheet

*4.A.6.


Shakopee City Council
February 16, 2021


FROM:Andy Hutson, IT Director
TO:Mayor and City Council
Subject:
Scheduled renewal of the city's 3-year Microsoft Enterprise License Agreement.
Policy/Action Requested:
Approve the renewal of a 3-year Microsoft Enterprise Agreement through SHI for an amount of $67,900.23/year plus any additional license true-ups as determined necessary. 
Recommendation:
Approve renewal of 3-year Microsoft Enterprise Agreement.
Discussion:

The city has reached the end of its previously approved 3-year Microsoft Enterprise Agreement. The city utilizes business critical Microsoft products and support covered within this agreement including: MS Server, SQL, Windows 10,  and Office365.

 

The MS Enterprise agreement is for $67,900.23/year for a total of $203,700.69 for three years. This total can increase yearly during the term if more licenses are required for additional employees, applications, or servers. These true-up amounts have historically averaged around $5,500 and are accounted for during the required true-up process and during the yearly budgeting and forecasting process.

 

The next renewal date for our Enterprise Agreement is February of 2024

Budget Impact:
IT has budgeted for 2021, 2022, and 2023 for this Microsoft agreement. The Enterprise Agreement is paid from existing funds within the IT Internal Services Fund and the current quote is within the budgeted amount of $70,000. An additional $6,000 is also budgeted annually for any additional true-up licenses for new employees or applications added.
ATTACHMENTS:
Description
SHI Quote
BEMO Quote