CA Review JRT
Meeting Date: Oct. 10, 2023
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Maria Callander, Director of Information Technology [email protected], 442-339-2454
Subject: Purchase of Data Storage Hardware from CDW•G, LLC Districts: All
Recommended Actions
Adopt a resolution authorizing the City Manager to execute documents necessary to purchase a replacement NetApp data storage device for information technology infrastructure needs from CDW•G, LLC for an amount not to exceed $213,839 and directing the Deputy City Manager, Administrative Services to appropriate $213,839 from the available fund balance of the Information Technology Replacement Fund in fiscal year 2023-24.
Executive Summary
The City Council is being asked to approve the purchase of a digital information storage device, a critical component of the city’s technology infrastructure.
Upgrading this equipment in the city’s data center is crucial for maintaining efficient operations. This periodic replacement, typically scheduled every five years, ensures that our data remains easily accessible, increases storage capacity and ensures our systems continue to perform optimally. Just as we upgrade personal devices to keep pace with technological advancements, refreshing our storage hardware is essential for maintaining high-performance digital services for our employees and residents, ultimately contributing to a more efficient and effective digital ecosystem.
The city has been using two NetApp storage devices to store its data. This purchase will replace them with a single more efficient and secure NetApp device and will reduce the annual replacement charges.
The quote from CDW•G, LLC for the purchase of a NetApp A250 uses a cooperative purchasing agreement. The use of this agreement was approved by the city’s Purchasing Officer.
Since this replacement purchase will occur a year earlier than scheduled, the appropriation for the replacement purchase was not included in the fiscal year 2023-24 adopted budget.
However, there are sufficient funds in the Information Technology Replacement Fund to cover the purchase.
Oct. 10, 2023
Item #5 Page 1 of 12
T
he City Council’s approval is required under Carlsbad Municipal Code Section 3.28.050 - Procurement of Goods, which requires the City Council’s approval for the procurement of professional services or services that will cost the city more than $100,000 per agreement year.
Explanation & Analys is
Maintaining a stable information technology infrastructure requires the various components to be replaced according to defined lifecycles. Part of the lifecycle management program for these devices includes setting aside funding each year in the Information Technology Annual Replacement Fund. The funding for the replacement of this device is available but needs to be appropriated because the purchase will be one year earlier than initially scheduled.
The city established a five-year lifecycle for the two original NetApp storage devices it purchased, but staff have determined it would be beneficial to replace the devices before the end of their lifecycle.
Buying this upgraded device sooner than replacements were planned provides the following benefits:
• Expands capacity and improves performance to align with the city's initiatives and data requirements.
• Synchronizes the storage device's lifecycle with the newly acquired server hardware, so they share the same lifecycle. This will allow for more effective strategic planning for their eventual replacements and/or cloud storage initiatives. • Will save $58,995 in replacement costs in fiscal year 2024-25.
Staff recommend that the City Council approve the purchase and appropriation of the funds by adopting the resolution included as Exhibit 1.
The price of this equipment was established through a cooperative purchasing agreement.
Carlsbad Municipal Code Section 3.28.100 - Cooperative Purchasing gives the city’s Purchasing Officer the authority to join with other public or quasi-public agencies in cooperative purchasing programs to purchase goods and services as the Purchasing Officer determines to be in the city’s best interest. The Purchasing Officer may buy directly from a vendor at a price established by another public agency when the other agency has made its purchase in a competitive manner.
CDW•G, LLC is the current reseller through which the city purchases NetApp hardware.
CDW•G, LLC is an authorized reseller and provides products and technology services under the National IPA/OMNIA Technology Solutions Agreement contract (#2018011-01). The Purchasing Officer has determined that buying the storage device from CDW•G, LLC through this cooperative purchasing agreement, in compliance with Section 3.28.100, provides the best value to the city. (The Purchasing Officer’s memorandum is attached as Exhibit 2) Oct. 10, 2023
Item #5 Page 2 of 12
Fiscal Analysis
The NetApp storage devices were originally purchased for $294,975, with the replacement funding to be recouped over a five-year period through the Information Technology’s Internal Service Fund chargeback, the fee city departments are assessed for information technology services. At the end of fiscal year 2023-24, the cost of the devices will have been recouped for a four-year period, a total of $235,980. The final year of replacement funding will not be recouped through the Information Technology’s internal service chargeback in fiscal year 2024-
25. This will reduce the chargeback for equipment replacement assessed on city departments by $58,995 during fiscal year 2024-25.
As noted above, the replacement funding for the NetApp device was not included in the fiscal year 2023-24 Information Technology Replacement Fund budget because it was initially scheduled to be included in the fiscal year 2024-25 replacement fund request. While the funding for the first four years of recoupment is within the Information Technology Replacement Fund, it has not been appropriated.
The funding for the NetApp device purchase will need to be appropriated in the fiscal year 2023-24 Information Technology Replacement Fund and is available, but only $213,839 will be appropriated as follows:
Prior fiscal year recouped amount (years 1-3) $ 176,985 Current fiscal year recoupment (year 4) 58,995
Total available for appropriation in fiscal year 2023-24 $ 235,980
The replacement NetApp device will cost $213,838 and includes the hardware and initial maintenance as follows:
NetApp A-250 $ 183,851
Annual maintenance 29,988
Total $ 213,839
Funding for this purchase will be provided by the new appropriation of $213,839 requested for the Information Technology Replacement Fund in fiscal year 2023-24. This cost includes the hardware, installation and one year of maintenance. Funding for following years' maintenance will be presented to the City Council for its approval with future budget requests, through the annual budget process.
Next Steps
Staff will complete the purchase of NetApp Hardware from CDW•G, LLC and appropriate funding in the Information Technology Replacement Fund for fiscal year 2023-24 for the purchase.
Oct. 10, 2023
Item #5 Page 3 of 12
Environmental Evaluation
This action does not require environmental review because it does not constitute a project within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change or a reasonably foreseeable indirect physical change in the environment.
Exhibits
1. City Council resolution
2. Purchasing Officer’s memorandum
Oct. 10, 2023
Item #5 Page 4 of 12
RESOLUTION NO. 2023-259
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE DOCUMENTS
NECESSARY TO PURCHASE A REPLACEMENT NET APP DATA STORAGE DEVICE FOR INFORMATION TECHNOLOGY INFRASTRUCTURE NEEDS FROM CDW•G, LLC FOR AN AMOUNT NOT TO EXCEED $213,839 AND DIRECTING THE
DEPUTY CITY MANAGER, ADMINISTRATIVE SERVICES TO APPROPRIATE $213,839 FROM THE AVAILABLE FUND BALANCE OF THE INFORMATION TECHNOLOGY REPLACEMENT FUND IN FISCAL YEAR 2023-24
WHEREAS, the City of Carlsbad has information technology infrastructure that requires replacement on a routine basis to support effective operations, and NetApp data storage is one of the hardware components that need to be replaced and updated on a frequent time frame; and WHEREAS, CDW•G, LLC, an authorized NetApp reseller, provides hardware for information technology infrastructure under the National IPA Technology Solutions Agreement #2018011-01 contract; and
WHEREAS, under Carlsbad Municipal Code Section 3.28.100 - Cooperative Purchasing, the Purchasing Officer has the authority to join with other public agencies for the purchase of goods or services when it is in the best interest of the city; and WHEREAS, the Purchasing Officer has reviewed the purchase and agrees the use of a cooperative agreement is in the best interest of the city; and WHEREAS, the funding to procure the replacement NetApp data storage has been earned through the annual Information Technology Replacement Fund chargeback but has not been appropriated; and
WHEREAS, the appropriation for the NetApp data storage is approved in the amount not to exceed $213,839 from the fund balance of the Information Technology Replacement Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That City Manager, or a designee, is authorized to execute all required documents necessary to procure replacement NetApp data storage from CDW•G, LLC in amount not to exceed $213,839 as reflected in Attachment A.
3. That the City Manager is authorized to direct the Deputy City Manager, Administrative Exhibit 1
Oct. 10, 2023 Item #5 Page 5 of 12
Services to appropriate $213,839 from the available fund balance of the Information Technology Replacement Fund.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 10th day of Oct., 2023, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Burkholder.
None.
None.
Luna.
KEITH�
SHERRY FREISINGER, City Clerk
(SEAL)
Oct. 10, 2023 Item #5 Page 6 of 12
Hardware Software Services IT Solutions Brands Research Hub
QUOTE CONFIRMATION
Thank you for choosing CDW. We have received your quote.
MICHAEL PUGLIESE,
Thank you for considering CDWG for your technology needs. The details of your quote are below. If you are an eProcurement or single sign on customer, please log into your system to access the CDW site. You can search for your quote to retrieve and transfer back into your system for processing.
For all other customers, click below to convert your quote to an order.
Convert Quote to Order
QUOTE # QUOTE DATE QUOTE REFERENCE CUSTOMER # GRAND TOTAL NMGN625 8/1/2023 FINAL NETAPP 1 YEAR 6387665 $213,838.27
QUOTE DETAILS
ITEM QTY CDW# UNIT PRICE EXT. PRICE
1 6328203 $0.00 $0.00
1 7259781 $18,922.56 $18,922.56
6 6336005 $4,515.94 $27,095.64
2 6328218 $2,109.81 $4,219.62
2 7273105 $0.00 $0.00
NETAPP AFF-A250
Mfg. Part#: AFF-A250
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
NETAPP AFF A250 8X7.6TB NVME SED
Mfg. Part#: AFF-A250-125-C
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
Contract: MARKET
NetApp Drive Pack - SSD - 7.6 TB - PCIe (NVMe) (pack
of 2)
Mfg. Part#: X4013A-2-N-C
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
NetApp All Flash FAS AFF A250 HA - NAS server
Mfg. Part#: AFF-A250A-001
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
NETAPP POWER SUPPLY 1600W -C
Mfg. Part#: X737A-C
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
NetApp - power cable
2 1033626 $0.00 $0.00
Attachment A
Oct. 10, 2023
Item #5 Page 7 of 12
QUOTE DETAILS (CONT.)
Mfg. Part#: X800-42U-R6-C
UNSPSC: 26121636
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
NetApp AFF A250 - documentation kit
1 6328223 $0.00 $0.00
1 5860838 $0.00 $0.00
16 5978911 $0.00 $0.00
Mfg. Part#: DOC-AFF-A250-C
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
Electronic distribution - NO MEDIA
NetApp - rack rail
Mfg. Part#: X5532A-N-C
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
NetApp network cable - 5 m
Mfg. Part#: X66250-5-N-C
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
NetApp 25GBase-CU direct attach cable - 1.6 ft
2 5860707 $0.00 $0.00
2 6337539 $2,515.13 $5,030.26
2 5630965 $25.48 $50.96
2 6327903 $1,995.73 $3,991.46
Mfg. Part#: X66240A-05-N-C
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
NetApp - host bus adapter - Mezzanine Card - 32Gb Fibre Channel x 4
Mfg. Part#: X1154-N-C
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
NETAPP DATA AT REST ENCRYPTION CAP
Mfg. Part#: DATA-AT-REST-ENCRYPTION
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
NetApp - network adapter - Mezzanine Card - 25 Gigabit
Ethernet x 4
Mfg. Part#: X1152-N-C
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
NetApp Data Protection Bundle - license - 0.1 TB capacity 1520 6328247 $20.98 $31,889.60
Mfg. Part#: SW-DATA-PRO-BDLNVME-A01-C
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
Electronic distribution - NO MEDIA
Oct. 10, 2023
Item #5 Page 8 of 12
QUOTE DETAILS (CONT.)
NetApp ONTAP Core Bundle - license - 0.1 TB capacity 1520 6328249 $57.93 $88,053.60 Mfg. Part#: SW-CORE-BNDLE-NVME-A01-C
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
Electronic distribution - NO MEDIA
NETAPP 4HR PARTS REPLACEMNT
1 5978827 $5,995.00 $5,995.00
Mfg. Part#: CS-4HR-REPLACEMENT
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
Electronic distribution - NO MEDIA
NETAPP SUPPORT EDGE ADVISOR
1 5977563 $23,993.00 $23,993.00
2 1524695 $0.00 $0.00
Mfg. Part#: CS-G1-SE-ADVISOR
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
Electronic distribution - NO MEDIA
NetApp - power cable
Mfg. Part#: X800P-R6
UNSPSC: 26121604
CONTRACT:
National IPA/OMNIA Technology
Solutions # 2018011-01
SUBTOTAL $209,241.70
SHIPPING $0.00
SALES TAX $4,596.57
GRAND TOTAL $213,838.27
PURCHASER BILLING INFO DELIVER TO
Billing Address:
CITY OF CARLSBAD
ACCOUNTS PAYABL
1635 FARADAY AVE
CARLSBAD, CA 92008-7314
Phone: (760) 602-2400
Payment Terms: Net 30 Days-Govt State/Local
Shipping Address:
CITY OF CARLSBAD
MICHAEL PUGLIESE
1635 FARADAY AVE
CARLSBAD, CA 92008-7314
Phone: (760) 602-2400
Shipping Method: DROP SHIP-COMMON CARRIER
Please remit payments to:
CDW Government
75 Remittance Drive
Suite 1515
Chicago, IL 60675-1515
Sales Contact Info
Jeff Butchko | (877) 853-0557 | [email protected]
Oct. 10, 2023
Item #5 Page 9 of 12
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Item #5 Page 10 of 12
Exhibit 2
Memorand
um
Sept. 19, 2023
To: Roxanne Muhlmeister, Assistant Finance Director/Purchasing Officer From: Mike Pugliese, IT Operations Manager
Via: Maria Callander, IT Director
Re: Approve the cooperative use of the National IPA Technology Solutions agreement with CDW•G, LLC.
The IT Department would like to cooperatively use National IPA Technology Solutions Agreement #2018011-01 contract with CDW•G, LLC to provide for the purchase of a replacement NetApp storage device.
This request is in the best interest of the City of Carlsbad as the city is consolidating two models of NetApp devices used into a single device and CDW•G is a preferred vendor.
Additionally, CDW•G has worked with the city on other past projects that provides them unique understanding of our systems and goals.
CDW•G is a full-service vendor that provides for the procurement of software, hardware, licenses, support, maintenance and professional services for the IT Department’s needs.
As per the city’s municipal code, 3.28.100 Cooperative purchasing, the purchasing officer shall have the authority to join with other public or quasi-public agencies in cooperative purchasing plans or programs for the purchase of goods and/or services by contract, arrangement or agreement as allowed by law and as determined by the purchasing officer to be in the city’s best interest. The purchasing officer may buy directly from a vendor at a price established by another public agency when the other agency has made their purchase in a competitive manner. (Ord. CS-002 § 2, 2008)
The current open market price for the NetApp storage device being purchased is $880,289 as compared to the quoted price under the National IPA Technology Solutions Agreement of $213,839. This is a cost savings of $666,450 by using this cooperative purchasing agreement.
By approving this cooperative procurement, the purchasing officer supports the use of the cooperative agreement to purchase a replacement NetApp storage device in an amount not to exceed $213,839.
MP:bg
Information Technology Department
1635 Faraday Ave
Carlsbad, CA 92008 760-602-2450 t
Oct. 10, 2023
Item #5 Page 11 of 12
Muhlmeister
Sept. 19,
2023
Approval for Exemption
Roxanne Muhlmeister, Date
Assistant Finance
Director/Purchasing Officer
CC: Maria Callander, IT Department Director
Jennifer True, Deputy City Attorney
Brent Gerber, Senior Management Analyst
Shea Sainz, Senior Contract Administrator
9/26/2023
Oct. 10, 2023
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