CA Review AZ
Meeting Date: July 29, 2025
To: Mayor and City Council
From: Geoff Patnoe, City Manager
Staff Contact: Maria Callander, Information Technology Director [email protected], 442-339-2454
Subject: Renewal of Broadcom VMWare Licensing and Support Services with CDW Government, LLC
Districts: All
Recommended Action
Adopt a resolution authorizing the City Manager to execute documents necessary to procure Broadcom VMware licensing and support services through August 4, 2026, from CDW Government, LLC for an amount not to exceed $136,000.
Executive Summary
The city requires Broadcom VMware licensing and support services for its virtual infrastructure, which is essential to run the city's mission-critical applications and services. Staff plan to purchase these services from CDW Government, LLC, which is an authorized reseller of Broadcom VMware products and services.
The city’s current VMware license plan will expire on Aug. 4, 2025.
Carlsbad Municipal Code Section 3.28.060 – Procurement of Professional Services and Services, requires the City Council’s approval for purchases that will cost the city more than $100,000 per agreement year.
Explanation & Analysis
A virtualization platform is a software solution that enables the creation and management of software-based simulations of physical computers on a single physical server. This allows for more efficient use of resources and better management of information technology infrastructure.
VMware provides the virtualization platform that supports the city’s core server infrastructure, enabling the efficient and secure operation of multiple systems, including those for Finance, Public Works, GIS, public safety applications and records management. Ongoing licensing and support are required for the system to function, receive critical software updates and ensure continued access to technical support.
The city has used VMware for over ten years to host a wide range of essential services. With VMWare the city has reduced the number of its physical information technology servers, July 29, 2025
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helping improve system speed, increase efficiency and make recovery easier in the event of a failure.
The proposed licensing cost reflects a notable increase over prior years, primarily due to changes introduced following Broadcom’s acquisition of VMware in late 2023. Broadcom has substantially revised VMware’s product offerings and licensing models, discontinuing the original licensing structure and transitioning to higher-cost, subscription based plans. These changes have affected public and private sector agencies globally, resulting in higher pricing.
In response to the price doubling during the last renewal cycle, staff reduced services to remain within budget while preserving essential functionality. However, costs have unexpectedly increased again this year, and staff are actively assessing alternative solutions and developing a long-term strategy to transition to a more cost-effective platform that meets the city’s operational and infrastructure needs.
CDW Government is the current reseller through which the city has purchased its Broadcom VMWare. Renewal of the Broadcom VMWARE licensing and support services from CDW Government would be purchased through a cooperative purchasing agreement, in compliance with Carlsbad Municipal Code, Chapter 3.28.100 - Cooperative Purchasing.
Cooperative
purchasing is when an agency uses an existing procurement contract from another agency as the justification and documentation to create its own contract to purchase the same or similar items or services. Government agencies often use such cooperative purchasing agreements to reduce the costs of procurement.
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 plans or programs for the purchase of goods or services when 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 its purchase in a competitive manner.
CDW Government is an authorized reseller and provides products and technology services under the National IPA/OMNIA Partners Technology Solutions Contract #2018011-01, originally awarded by the City of Mesa, Arizona.
1 The cost of this purchase was quoted from that
contract. The Purchasing Officer’s memo authorizing the use of the cooperative purchasing agreement is attached as Exhibit 2.
Fiscal An alysis
The total cost for a one-year term of Broadcom VMware licensing and support services from CDW Government is not to exceed $136,000. Funding is included in the approved fiscal year 2025-26 Information Technology Department’s operating budget. Funding for subsequent years will be requested through the annual budget process.
1 The National IPA is a wholly owned subsidiary of OMNIA Partners that provides extensive software/licensing discounts through negotiations with major software/licensing publishers that are then passed on to public agencies, through contracts established with authorized participating re-sellers. Cities can use these contracts to buy directly from the supplier or reseller.
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The last five years expenditures for VMWare Maintenance are provided below.
Actual costs by term year Pending
2020-21 2021-22 2022-23 2023-24 2024-25 Aug 2025-26
$ 45,309 $ 39,372 $ 32,265 $ 35,257 $ 80,000 $ 136,000
Next Steps
The City Manager or designee will execute the documents necessary for the purchase of Broadcom VMware licensing and support services with CDW Government.
Environmental E
valuation
The proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(a) and does not require environmental review under CEQA Guidelines Section 15060(c)(2) because the action is limited to the purchase of Broadcom’s VMware licensing and support services renewal. The action has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.
Exhibits
1. City Council resolution
2. Purchasing Officer’s memorandum
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RESOLUTION NO. 2025-185 .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE DOCUMENTS
NECESSARY TO PROCURE BROADCOM VMWARE LICENSING AND SUPPORT SERVICES THROUGH AUGUST 4, 2026, FROM CDW GOVERNMENT, LLC FOR AN AMOUNT NOT TO EXCEED $89,600
WHEREAS, the City of Carlsbad has virtual information technology infrastructure devices that require annual licensing and support services to maintain effective operations, and Broadcom VMWare licensing and support services is one of the products that helps to meet this need; and WHEREAS, the City of Carlsbad currently purchases Broadcom VMWare licensing and support services on an annual basis; and
WHEREAS, CDW Government, LLC, an authorized Broadcom VMWare reseller, provides licensing and support services for information technology infrastructure and computing devices under the City of Mesa, AZ’s National IPA/OMNIA Information Technology Solutions and Services #2018011-01 agreement; and
WHEREAS, CDW Government, LLC provided a quote of $89,600, for a one-year renewal of the Broadcom VMWare licensing and support services ending on August 4, 2026; and WHEREAS, under Carlsbad Municipal Code 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 purchase is in the best interest of the city; and
WHEREAS, the budget to procure the licensing and support services is available in the Information Technology Department’s fiscal year 2025-26 Operating Budget; and WHEREAS, the funding for future years’ licensing and support services will be considered on an annual basis in the Information Technology Department’s annual budget requests.
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. The proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(a) and does not require Docusign Envelope ID: 871EFE36-4673-4E98-AE94-469A510EF5B3
environmental review under CEQA Guidelines Section 15060(c)(2) because the action is limited to the purchase of Broadcom’s VMware licensing and support services renewal. The action has no potential to cause either a direct physical change in the environmen t or a reasonably foreseeable indirect physical change in the environment.
3. That the City Manager , or designee, is authorized to execute all required documents necessary to purchase Broadcom VMWare licensing and support services through August 4, 2026, from CDW Government, LLC for an amount not to exceed $89,600 as provided in Attachment A.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 29th day of July, 2025, by the following vote, to wit:
AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS: None.
ABSTAIN: None.
ABSENT: None.
______________________________________
KEITH BLACKBURN, Mayor
______________________________________
SHERRY FREISINGER, City Clerk
(SEAL)
Docusign Envelope ID: 871EFE36-4673-4E98-AE94-469A510EF5B3
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 PNFK584 7/28/2025 FINAL VMWARE 6387665 $89,600.00
QUOTE DETAILS
ITEM QTY CDW# UNIT PRICE EXT. PRICE
VMW CLD FNDTN 256 8371461 $350.00 $89,600.00
Mfg. Part#: VCF-CLD-FND
Electronic distribution - NO MEDIA
Contract: National IPA Technology Solutions (2018011)
SUBTOTAL $89,600.00
SHIPPING $0.00
SALES TAX $0.00
GRAND TOTAL $89,600.00
PURCHASER BILLING INFO DELIVER TO
Billing Address:
CITY OF CARLSBAD
ACCOUNTS PAYABL
1635 FARADAY AVE
CARLSBAD, CA 92008-7314
Phone: (442) 339-2450
Payment Terms: Net 30 Days-Govt State/Local
Shipping Address:
CITY OF CARLSBAD
MICHAEL PUGLIESE
1635 FARADAY AVE
CARLSBAD, CA 92008-7314
Phone: (442) 339-2450
Shipping Method: ELECTRONIC DISTRIBUTION
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]
ATTACHMENT A
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Call 800.800.4239
VMware Terms and ConditionsYour use of the VMware by Broadcom offerings identified within this order are subject to (a) the standard end user agreement at https://www.vmware.com/agreements.html, (b) the Specific Program Documentation (the 'SPD'), and/or SaaS Listing applicable to the VMware by Broadcom offerings and Maintenance located at https://www.broadcom.com/licensing and (c) the additional terms within this order (collectively, the 'End User Terms'). Any terms that may appear on your purchase order that vary from or purport to add to the End User Terms (including, without limitation, pre-printed terms) are deemed not appended, inapplicable and void.
About Us |Privacy Policy |Terms and Conditions This order is subject to CDW's Terms and Conditions of Sales and Service Projects athttp://www.cdwg.com/content/terms-conditions/product-sales.aspxFor more information, contact a CDW account manager. © 2025 CDWGLLC, 200 N. Milwaukee Avenue, Vernon Hills, IL 60061 | 800.808.4239 Docusign Envelope ID: 871EFE36-4673-4E98-AE94-469A510EF5B3 Exhibit 2
Information Technology Department
1635 Faraday Ave Carlsbad, CA 92008 442-339-2450 t
Memoran
dum
July 17, 2025
To: Roxa
nne Muhlmeister, Assistant Finance Director/Purchasing Officer From: Mike Pugliese, IT Operations Manager
Via: Maria Callander, IT Director
Re: Authorization to Participate in a Cooperative Purchasing Agreement for the Annual Licensing and Support Services of Broadcom VMWare The IT
Department would like to cooperatively use the City of Mesa, AZ’s National IPA/OMNI Information Technology Solutions and Services #2018011-01 agreement with CDW- Government, LLC (CDW-G) to provide for the purchase of the Broadcom VMWare licensing and support services for a term ending August 4, 2026, in the amount of $136,000.
This r
equest is in the best interest of the City of Carlsbad as the city has standardized on Broadcom VMWare and CDW-G is a preferred vendor. Additionally, CDW-G has worked with the city on other past projects that provides the company with a unique understanding of our systems and goals.
CDW-G i
s 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 pe
r Carlsbad Municipal Code Section, 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) With Pur
chasing Officer authorization for the use of the cooperative agreement, staff will recommend the City Council adopt a resolution authorizing the purchase of the annual renewal for Broadcom VMWare licensing and support services from CDW-G in an amount not to exceed $136,000 at the July 29, 2025, City Council Meeting.
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July 17, 2025
Approval for Participation in Cooperative Contract:
_______________________________________ ___________
Roxanne Muhlmeister, Date
Assistant Finance Director/Purchasing Officer
CC: Maria Callander, IT Department Director
Cindie McMahon, City Attorney
Brent Gerber, Senior Management Analyst
Shea Sainz, Senior Contract Administrator
7/21/2025
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