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File #: 1214-2025    Version: 1
Type: Ordinance Status: Passed
File created: 4/29/2025 In control: Finance & Governance Committee
On agenda: 5/19/2025 Final action: 5/22/2025
Title: To authorize the City Auditor to modify the existing contracts with Microsoft Corporation and Dell Marketing LP and provide funding for the support, hosting (including monthly Azure usage), and maintenance of Dynamics 365; to authorize the expenditure of up to $999,648.00, from the Department of Technology operating fund; and to declare an emergency. ($999,648.00)
Attachments: 1. 1214-2025 attachment.pdf, 2. SOS Business_search Dell Marketing LP.pdf, 3. SOS Business_search Microsoft.pdf
Explanation

BACKGROUND:
This ordinance authorizes the City Auditor to modify and extend the existing contracts with Microsoft Corporation and Dell Marketing LP and provide funding for the support, hosting (including monthly Azure usage), and maintenance of Microsoft Dynamics 365 Finance and Operations (D365) and authorizes the expenditure of up to $999,648.00, from the Department of Technology operating fund for a total expenditure of $999,648.00. D365 serves as the city’s official system of record for financial operations, including the recording of revenue, issuance of purchase orders, and processing of invoice payments and is essential for continuity of city services.
The original contract included annual renewal provisions for licensing, hosting, maintenance, and support for the Dynamics 365 system manufactured by Microsoft with services provided through Microsoft Corporation. In addition, Microsoft Unified support will provide access to a global network of specialists. Support is available on a 24 x 7 basis from a single point of contact. The service includes personalized support for all Microsoft products, assigned service delivery management, on-demand risk assessment tools, service update management, on-demand videos, interactive labs, and webcasts, and expert-led, scenario-specific support services.

This legislation authorizes the City Auditor to modify and extend the contract authorized by Ordinance no. 1051-2021. The cost for this renewal is estimated as follows:
Dynamics 365 Fees 2025
Licensing
(add 30 D365 licenses to account for increase in number of users) 751,401.00
Tier 1/Tier 2 Sandbox Dev/Test 70,347.00
Visual Studio development licenses 3,000.00
Power Platform Licensing/Azure Usage
(PowerBI, PowerPages, PowerApps, CoPilot) 94,000.00
O365 Licensing (Outlook/Email) 650.00
Entra ID Plan 1 250.00
Unified Support 80,000.00
TOTAL through 6/15/2026 $999,648.00

FISCAL IMPACT:
Funding for this plann...

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