HomeMy WebLinkAboutResolution No. 2025-56KENAI
CITY OF KENAI
RESOLUTION NO. 2025-56
Sponsored by: Administration
A RESOLUTION AUTHORIZING THE USE OF THE EQUIPMENT REPLACEMENT FUND FOR
DATACENTER EQUIPMENT AND AWARDING A CONTRACT FOR THE PURCHASE OF
DATACENTER EQUIPMENT.
WHEREAS, Resolution 2024-43 was passed on November 6, 2024 authorizing the purchase of
Datacenter Equipment for Phase 1; and,
WHEREAS, the equipment for Phase 2 has been identified; and,
WHEREAS, KMC 7.15.070 (b) (6) — Innovative Procurements and Other Exceptions, allows for Council
to award a contract when solicitation of proposals has been limited or procurement is by direct negotiation
if found to be in the City's best interest, and sufficient information is available to ensure a fair and
reasonable price; and,
WHEREAS, a bid for the Phase 2 equipment resulted in no responsive bidders; and,
WHEREAS, two quotes for server equipment were subsequently received with the results listed below:
Vendor
Amount
Abtech Technologies
$85,489.57
Insight Public Sector
$92,887.00
; and,
WHEREAS, these prices were determined to be fair and reasonable; and,
WHEREAS, Abtech Technologies is the lowest responsive quote; and,
WHEREAS, it is in the best interest of the City to award a contract to Abtech Technologies as the
Datacenter Equipment is needed for the operation of City business; and,
WHEREAS, additional items are needed for Phase 2 which could not be provided by the same vendors
proposing the server equipment; and,
WHEREAS, an additional $3,000 is required to complete the Datacenter Equipment Phase 2; and,
WHEREAS, two additional purchases of datacenter equipment will utilize these funds in the near future;
and,
WHEREAS, the total cost for the Datacenter Equipment Phase 1 and 2 is expected to be $192,764 and
the Equipment Replacement Fund has the capacity to fund this purchase.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Manager is authorized to execute a contract award and corresponding
purchase order to Abtech Technologies in the amount of $85,489.57.
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Resolution No. 2025-56
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Section 2. That the use of an additional $3,000 is authorized to be expended from the equipment
replacement fund.
Section 3. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 3RD DAY OF SEPTEMBER,
2025.
Brian Gabriel Sr., Mayor
Michell . S n MC, City Clerk
Approved by Finance/!Ci I
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City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www kenai.city
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
THROUGH: David Swarner, Finance Director
FROM: Dan Castimore, IT Manager
DATE: August 20, 2025
SUBJECT: Resolution No. 2026-56 - Authorizing the Use of the Equipment
Replacement Fund for Datacenter Equipment and Software; and Awarding a
Contract for the Purchase of Datacenter Equipment.
This memo recommends awarding a contract to Abtech Technologies for the purchase of
Datacenter Equipment utilizing the City's Equipment Replacement Fund.
At the November 6, 2024 City Council meeting, council approved Resolution 2024-43 which
authorized the purchase of Phase 1 of the Datacenter Equipment replacement. Phase 1 consisted
of server equipment that is used for non-virtualized applications.
Phase 2 of this project was delayed due to the sale of VMWare to Broadcom. This transition
resulted in a significant change in the licensing structure, which caused organizations across the
country to re-evaluate using VMWare as a virtualization provider. After considerable research into
alternatives, the City decided to stay with VMWare.
This Resolution would approve the purchase of server equipment and enterprise storage to
replace the City's server virtualization environment.
A formal bid for servers and storage was released on June 4th, 2025 with bids due on June 18th
2025. There were no responsive bidders. KMC 7.15.070 (b) (6) allows council to approve any
contract by resolution when the solicitation of bids or proposals has been limited. The two vendors
that had expressed interest in bidding were contacted and quotes were requested. The following
quotes were received:
Vendor
Amount
Abtech Technologies
$85,489.57
Insight Public Sector
$92,887.00
In addition to the servers and storage, additional items totaling $3,000 are required to complete
Phase 2. The items needed were not able to be provided by the same vendors and will be
procured using the standard purchasing process. As these funds originate in the Equipment
Replacement Fund, council authorization is required.
Council's approval is respectfully requested.
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