The city council in Los Angeles on Tuesday unanimously approved a $7.2 million deal to use Google Apps.
The contract is tentative, contingent on integration provider Computer Sciences Corp.'s agreement to pay a penalty in the event of a security breach, according to the Associated Press.
A week ago, the City Council's Budget and Finance Committee delayed taking action on the deal citing cost concerns.
Security concerns featured prominently in the debate over the contract, which calls for moving from Novell to Google's hosting service for e-mail and office applications.
Los Angeles police officials and the LA City Attorney's Office were concerned about the potential for security breaches with sensitive information located in the cloud as opposed to being on city servers.
LA joins the District of Columbia as one of the largest government adoptions of Google Apps. The contract is a win for Google in its competition with Microsoft for enterprise customers.