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Committee forwards retroactive Microsoft cloud agreement after 4‑1 vote; Supervisor Kim objects on open‑source grounds
Summary
The committee voted 4‑1 to forward a retroactive three‑year Microsoft enterprise agreement with PCMG Inc. for Office 365 and related products (not to exceed ~$30.3M). Supervisor Kim questioned why open-source alternatives were not pursued and cast the lone 'No' vote in committee.
The Budget & Finance Committee recommended that the full Board approve a three‑year agreement with PCMG Inc. to provide Microsoft Office 365 licenses and other Microsoft products for citywide use, not to exceed approximately $30.3 million.
Leo Levinson, Deputy Director for Finance and Administration in the Department of Technology, said the contract builds off a Riverside County‑managed master agreement that provides a base discount and that competitive reseller bidding produced additional savings. Levinson said the city negotiated liability and quality‑of‑service protections with Microsoft and that the agreement covers email, server and database licenses and other enterprise needs.
Supervisor Kim raised policy objections and asked whether the city had examined open‑source alternatives; Levinson said the city continually examines options but relies heavily on Microsoft products across departments for continuity of operations. Supervisor Kim said she remained concerned about cost and the city's commitment to evaluating non‑licensed options and announced she would vote no on the item on policy grounds.
The clerk recorded a roll-call committee vote: Supervisors Yee, Tang and Cohen voted 'Aye'; Supervisor Kim voted 'No'. The motion passed and the item will move to the full Board with a committee recommendation.
