TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
Technology and Information Services
Michael Marchand
425-556-2173
DEPARTMENT STAFF:
Technology and Information Services
Jeremy Mikkola
Business Solutions Manager
TITLE:
title
Approval of the HSO Contract, in the Amount of $603,071, to Support the City's D365 Financial System
OVERVIEW STATEMENT:
recommendation
Approve the Mayor to sign an updated contract with HSO in support of the City's D365 financial system. The D365 Managed Services Advanced Support Plan contract totals $603,071.88 for the initial three-year term (January 2026- December 2028) and outlines two optional two-year renewal terms thereafter.
body
? Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
? Receive Information ? Provide Direction ? Approve
REQUEST RATIONALE:
* Relevant Plans/Policies:
N/A
* Required:
Council approval is required for contracts that exceed $50,000.
* Council Request:
N/A
* Other Key Facts:
N/A
OUTCOMES:
This contract provides the City with a trusted partner who delivers continuous support, strategic guidance, and proactive recommendations for Microsoft Dynamics 365 Finance & Operations (D365 F&O).
The managed services model ensures stable day-to-day operations while also enabling future enhancements, integrations, and new modules that improve service delivery.
These services strengthen the reliability and efficiency of core financial and operational processes, support data drive decision making, and help the City maximize its long-term investment in the D365 platform.
Continuing our partnership with HSO preserves the continuity of a partner who already understands the City's environment, maintains established knowledge of our configuration and processes, and is well positioned to support ongoing system maturity and future growth.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
* Timeline (previous or planned):
N/A
*...
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