SR - AGR-6192 - APPROPRIATION FOR MICROSOFT ENTERPRISE AGREEMENT1. SUBJECT
Appropriation for Microsoft Enterprise Agreement
2. SUMMARY
In January 2015, the City Council approved a three -year Microsoft Enterprise Agreement with
CompuCom in the amount of $769,100.82. Shortly after making the first payment on the
agreement, CompuCom sold its business to SoftwareONE. Subsequently, the new vendor failed
to bill the City for the second and third installments of the Agreement. During that time, funds
appropriated for the project were released to unreserved fund balance. SoftwareONE recently
reached out to the City in order to pay the second and third installments, so City Council action is
required to re- appropriate funds in order to pay these last two installments on the Agreement.
3. RECOMMENDED ACTION
Authorize the appropriation of $350,000 from Information Technology (790) unreserved fund
balance to account number 790. 1601.56033.19640.
1 4. FISCAL IMPACT
Upon appropriation, funds will be available in the following account:
790.1601.56033.19640 MIS Projects
$ 350,000
5. STRATEGIC PLAN GOAL(S)
4c. Enhance technology to improve public accessibility to information and services.
6. GENERAL PLAN IMPLEMENTATION
Not applicable.
ITEMS- 1 6/13/17
7. DISCUSSION and BACKGROUND
In January 2015, the City Council approved a three -year Microsoft Enterprise Agreement
(Agreement) with CompuCom, a Microsoft reseller, in the amount of $769,100.82. The
Agreement was to be paid in annual installments, with the first payment due upon execution of
the Agreement. The City made the first payment of $256,366.94 in April 2015.
Shortly thereafter, CompuCom's Microsoft licensing business was sold to SoftwareONE. As a
result of the transition, the new company failed to invoice the City for subsequent installments.
This went unnoticed by staff, and in the ensuing time, the remaining funds originally
appropriated for the Agreement reverted to unreserved fund balance.
Recently, SoftwareONE did a review of their agreements and discovered that the City had not
been billed for its second and third installments of the Agreement. Since the error was on the
side of SoftwareONE, no late fees or penalties are being assessed. However, since funds
appropriated for the Agreement are now in unreserved fund balance, City Council approval is
required to appropriate the funds in order to make the payment on the second and third
installments. The total amount due for the second and third installments is $512,733.88, but
because unencumbered funds from projects completed in the current fiscal year are available in
project 19640, staff is requesting an appropriation in the amount of $350,000. This appropriation
will make sufficient funds available to cover the second and third installments.
8. ATTACHMENTS
None
ITEM 2 6/13/17