PREPARED BY: ARTURO CASTILLO DATE OF MEETING: 05/04/2026
SUBJECT:
TITLE
CONSIDER RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO AUTHORIZING THE CITY MANAGER TO EXECUTE A ONE-YEAR MICROSOFT 365 GOVERNMENT G5 GCC LICENSING AGREEMENT WITH APEX TECHNOLOGY MANAGEMENT, LLC, IN AN AMOUNT NOT TO EXCEED $137,080
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
BODY
COMPLIANCE STATEMENTS
FY 2025-2027 Council Priority Workplan Compliance Statements:
Strengthen Existing and New Technology Programs, Public Facility/Infrastructure Projects, and Future Workplace Development Programs/Services to Enhance SPPD Crime-Reduction Goals, Community Policing, Mental Health, and Training Programs is an adopted policy item under the FY 2025-27 City Council Priority Workplan, adopted April 7, 2025.
BACKGROUND
On February 2, 2026, the City Council adopted Resolution 2026-013 authorizing the City Manager to execute a three (3) year professional services agreement with Apex Technology Management, LLC, in an amount not to exceed $431,165 for remediation projects identified in the 2025 Technology Assessment. The approved agreement designated $144,000 for software licensing and services to be procured during the term of the agreement.
A critical component of the IT remediation plan is the procurement of Microsoft 365 Government G5 GCC licenses. The Microsoft 365 Government G5 GCC platform provides all the functionality of its enterprise counterpart (Microsoft 365 E5) but is hosted in a separate, secured environment and adds compliance features such as accreditations, personnel screening, and data residency that enable the service to meet the unique needs of U.S. Government customers. Key features include desktop and online versions of Office applications, email hosting with 100 GB mailboxes, file storage and sharing with OneDrive, centralized single sign-on, and comprehensive intelligent protection against today’s advanced cyber-attacks.
Staff is requesting authorization to execute a one-year Microsoft 365 Government G5 GCC licensing agreement with Apex Technology Management, LLC, for two hundred thirty (230) licenses at a unit price of $596.00 per license, for a total annual commitment of $137,080. Once provisioned, the agreement will be active with Microsoft for one (1) year. Additional licenses purchased during the one-year period will be co-terminated with the original licenses.
PURCHASING
This procurement is consistent with and supports implementation of the previously authorized professional services agreement with Apex Technology Management, LLC, approved by City Council on February 2, 2026. The cost of the Microsoft 365 licenses will be funded from the previously appropriated software licensing and services budget under that agreement.
Apex Technology Management is the City’s IT services provider and will be supporting the City’s IT Department in fully implementing the Microsoft 365 licenses, as well as in all other service areas needed throughout this implementation process. Apex understands the City’s current IT structure and is knowledgeable of the City’s IT system improvement needs, having performed the City’s 2025 Technology Assessment and developed the resulting IT project plan. This existing knowledge and ongoing service relationship makes Apex uniquely qualified to coordinate the Microsoft 365 licensing procurement and implementation.
This agreement is in accordance with City of San Pablo Municipal Code Chapter 3.16, pursuant to the professional services exemption in Section 3.16.110(D), which allows the City to contract for professional, technical, and specialized services without formal bidding requirements when such services require specialized training, experience, or facilities not generally available.
FISCAL IMPACT
The total cost of this one-year Microsoft 365 Government G5 GCC licensing agreement is $137,080 (230 licenses at $596.00 per license). This expense will be funded from the previously appropriated software licensing and services budget under the Apex Technology Management consulting services agreement approved by the City Council on February 2, 2026. No additional appropriation is requested at this time.
The fiscal impact is outlined in the table below:
|
Fund |
Account Code |
Description |
Amount |
|
General Fund |
100-1430-42005 |
Software Licensing - Microsoft 365 G5 GCC (230 licenses) |
$137,080 |
|
TOTAL |
|
|
$137,080 |
Funds for this purchase are available within the $144,000 software licensing and services not-to-exceed amount previously appropriated under the Apex Technology Management consulting services agreement (Resolution 2026-013, adopted February 2, 2026). No new appropriation or transfer of funds is required.
ATTACHMENTS:
Att. A - Resolution
Att. B - Apex Technology Management Quote APXQ32945-01, Microsoft 365 GCC G5 Licensing