The Microsoft license agreement contract that expires December 31, 2018 requires an annual license usage true-up which covers all installations of licenses on alliances utilized by the County.   The County has received the invoice which totals $885,689 ($295,230 for each contract year) and no funding for this payment was requested or budgeted for FY19.  The Information Technology Department (ITD) has reviewed their current budget and have been able to identify $452,303 in one-time costs which may be transferred into the software maintenance account to cover just over half of this cost.  Additionally, ITD has reviewed their awarded CIP 19 funding and has completed the 5th year of the Technology Modernization Program (Refresh).

During the IT Strategic plan process, but after their budget submittal, it became apparent that the plan needed to be transitioned to allow for changing lifecycles, technology, and processes. As such, ITD will be presenting a revised plan for the FY20 budget.  ITD has identified $626,500 of modernization projects that may be de-obligated for consideration of usage towards the true-up expense.  ITD has confirmed that none of these transfers will substantially affect any operational needs of the department or the end users of its services.  These recommended transfer have been included in BA 10 on the December 17th agenda as well as the manual paid claims in an effort to meet the contractual payment terms.

$433,386

Further, approve and authorize this amount to be transferred from GF-GADM-XFER OUT-SMALL CAP 1c

(COGF-1000-0000000-433-10-10000-0001-00000-800104-) into

GF-ITD-MAINT/REP-SOFTWARE

(COGF-1000-0000000-431-10-11140-0001-00000-600654-)