HomeMy WebLinkAboutResolution No. 2025-65Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2026-65
A RESOLUTION AUTHORIZING THE USE OF THE EQUIPMENT REPLACEMENT FUND FOR
PURCHASE OF DATACENTER EQUIPMENT SOFTWARE.
WHEREAS, Resolution 2024-43 was passed on November 6, 2024 authorizing the purchase of
Datacenter Equipment for Phase 1; and,
WHEREAS, Resolution 2025-56 was passed on September 3, 2025 authorizing the purchase of
Datacenter Equipment for Phase 2; and,
WHEREAS, the software for Phase 3 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 3 software resulted in no responsive bidders; and,
WHEREAS, three vendors were contacted, and one quote for the software was subsequently received
with the results listed below:
Vendor Amount
CDW Government $13,410
; and,
WHEREAS, these prices were determined to be fair and reasonable; and,
WHEREAS, CDW Government is the lowest responsive quote; and,
WHEREAS, it is in the best interest of the City to award a purchase order to CDW Government as the
Datacenter Equipment Software is needed for the operation of City business; and,
WHEREAS, the total cost for the Datacenter Equipment Phase 1, 2, and 3 is expected to be $165,818
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 purchase the Datacenter Equipment Software in
the amount of $13,410 utilizing Equipment Replacement Funds.
Section 2. That this Resolution takes effect immediately upon passage.
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Resolution No. 2025-65
Page 2 of 2
PASSED BY THE COUNCIL OF THE CITY OF KENAI
Approved by Finance:
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K F�, N
City of Kenai 1210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 www.6nai.city
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
THROUGH: David Swarner, Finance Director
FROM: Dan Castimore, IT Manager
DATE: October 27, 2025
SUBJECT: Resolution No. 2025-65 - Authorizing the Use of the Equipment
Replacement Fund for Datacenter Equipment Software and Issuing a
Purchase Order for the Purchase of Datacenter Equipment Software.
This memo recommends issuing a purchase order to CDW Government for the purchase of
Datacenter Software.
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.
At the September 3, 2025 City Council meeting, council approved Resolution 2025-56 which
authorized the purchase of Phase 2 of the Datacenter Equipment replacement. Phase 2 consisted
of the server and storage equipment that is used for virtualized applications.
This Resolution will approve Phase 3 of the Datacenter Equipment Replacement project.
Phase 3, which is the final phase of this project, will purchase the virtualization hypervisor
software. Recently, VMWare, the provider of our current software, was purchased by Broadcom.
With this purchase, Broadcom significantly changed the licensing process. As a result the City
must purchase new subscription licensing. This licensing is required for the continued operation
of the Datacenter.
A formal bid for software was released on September 29t", 2025 with bids due on October 14t"
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. Quotes from
three vendors were solicited. The following quote was received:
Vendor Amount
CDW Government $13,410.00
As these funds originate in the Equipment Replacement Fund, council authorization is required.
Council's approval is respectfully requested.