Administrative
Report
H.11., File # 23-6392 Meeting Date: 7/18/2023
To: MAYOR AND CITY COUNCIL
From: MICHAEL COOK, INFORMATION TECHNOLOGY DIRECTOR
TITLE
APPROVE LEASE PURCHASE SCHEDULE #810-6458532-013 WITH DELL FINANCIAL SERVICES LLC. (DFS) UNDER DELL MASTER LEASE AGREEEMNT #6458532, CONTRACT #C09-020, FOR DELL VXRAIL PRODUCTS AND SERVICES, TO BE FURNISHED AND
IMPLEMENTED BY THE DAVENPORT GROUP USING THE DELL NATIONAL ASSOCIATION
STATE PROCUREMENT OFFICERS (NASPO) VALUEPOINT MASTER PRICE AGREEMENT #MNWNC-109 AND THE CALIFORNIA PARTICIPATING ADDENDUM #7-15-70-34-004 BETWEEN
DELL AND THE STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES, WITH FIVE ANNUAL PAYMENTS OF $90,893 FOR AN AMOUNT NOT TO EXCEED $454,446.60 FOR THE TERM AUGUST 1, 2023 THROUGH JULY 31, 2028
EXECUTIVE SUMMARY
The City’s existing VMware server virtualization infrastructure has been extremely reliable and was procured in an effort to reduce our hardware footprint, reduce energy consumption, leverage previous hardware investments, reduce implementation times and increase staff efficiency. The system has been in place for a year beyond its initially intended life span, and lease-term. While in working order, business needs have exceeded its capacity and its replacement is recommended to enhance the reliability and performance of the City’s technological infrastructure.
The proposed VxRail hyperconverged infrastructure (HCI) has increased capacity and will host all existing VMware virtual servers. It will also allow growth of existing systems as the City’s needs dictate. The proposed lease term is 2-years longer than previous leases, which aligns with the expected longevity of the system. While the majority of the City’s server needs have been eliminated through migrations to the cloud, the need for a small number of on-premise virtual servers exists in order to sustain operations during a cloud systems or internet outage, provide services for highperformance applications, achieve IT Disaster Recovery Planning objectives, to host legacy services and data sets unable to migrate to the cloud, and to provide services for applications in which their cloud counterparts do not provide sufficient cybersecurity controls (i.e. paperless document storage for Police Department documents).
Dell has recommended Davenport Group as the preferred value-added reseller to provide both hardware and professional services to implement the VMware hardware refresh, including VxRail installation and configuration, virtual machine migration, virtual network configuration, and staff training.
BACKGROUND
Virtualization allows multiple, independent virtual servers to run on one, or a group of, physical servers. In 2008, City Council approved the Information Technology (IT) Department’s request to
H.11., File # 23-6392 Meeting Date: 7/18/2023
servers. In 2008, City Council approved the Information Technology (IT) Department’s request to virtualize 21 physical servers into 6 physical servers. Since that time, the virtual server count has peaked at over 80, but has since shrunk to approximately 50 servers due to the migration of a number of services to the cloud. The current VMware infrastructure has been in service for four years, and the proposed refresh will be the fifth since 2008.
Server virtualization has been a very successful strategy for the City, providing increased server count without additional hardware, energy conservation, reduced active management, rapid deployment, optimized utilization of hardware resources, improved performance, and physical space savings.
This virtualization server hardware refresh is part of the IT Department’s FY 2023-24 work plan. The VxRail is designed by Dell and VMware to consolidate computing, data storage, virtualization, and system management into one system. The City will implement a 5-node cluster for a highly redundant and reliable VMware virtualization infrastructure.
Dell, as part of the ongoing hardware and software support, provides a single point of contact for all aspects of the VxRail appliance to include issue resolution, appliance management, VMware patching, and remote alert monitoring.
Critical services currently running in the City’s virtualized environment:
· MUNIS Financial, Payroll, HR, Building Permit, and Business License Systems · Redondo.org Web Site
· Microsoft Print Services
· LaserFiche Document Imaging
· GIS Software
· Internal back-end SQL databases
· Internal IT work order system
· PD Mark43 RMS and CAD Archive servers
· IT Disaster Recovery Services
· IT Cybersecurity Services
· Hybrid IT Identity, Email and System Management Services · Various IT system and application management servers
Purchasing Vehicle
Dell provides discounts to government agencies through a multi-state cooperative: National Association State Purchasing Officers (NASPO). The primary purpose of NASPO is to establish the means by which participating states may join together in cooperative multi-state contracting in order to achieve cost-effective and efficient acquisition of quality products and services. In order to obtain the lowest cost for the Dell equipment and services, the City will participate in the Dell Master Price Agreement.
COORDINATION
The lease has been coordinated between the Information Technology Department, the Financial Services Department and Dell Financial Services. The lease documents were approved as to form by the City Attorney's Office. Implementation will be coordinated with Davenport Group professional
H.11., File # 23-6392 Meeting Date: 7/18/2023
services.
FISCAL IMPACT
The FY 2023-24 cost of $90,893.32 (first of 5 annual lease payments, including interest) for the EMC VxRail HCI appliances will be paid from the FY 2023-24 IT Department Internal Service Fund and is included in the core annual operating budget. Future lease costs will be budgeted for in their respective fiscal years. The proposed project cost reflects only a 1% increase in annual spend, far below the rate of inflation, despite providing considerably more computing power.
The total five-year cost of $454,466.60 includes installation and configuration, hardware maintenance, software maintenance, remote system monitoring, staff training, and interest.
Item 5-Year Cost
VxRail Hardware and Software $335,065
Professional Services $62,196
APPROVED
Mike Witzansky, City Manager
ATTACHMENTS
· Agmt - Dell Financial Services Lease Purchase Agreement · Exhibit A - Davenport Partner Quote
· Agmt - Dell Financial Services Master Lease Agreement #6458532, March 19, 2009 · Agmt - Dell Financial Services Master Lease Agreement Addendum, December 7, 2011 · Agmt - NASPO Master Agreement with Dell Marketing L.P. #MNWNC-109, February 1, 2023 · NASPO CA Participating Addendum #7-15-70-34-003
· Insurance - Dell Technologies, Inc.
· Insurance - Davenport Holding Group