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Home My WebLink About_ 4.3(a)--Authorize and Approve the purchase of hypervisor virtualization software VmWare GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: July 21, 2026 FROM: Tony Van Boekel, Chief ITEM NO. 43(a) Information Officer/IT Director ***APPROVED BY*** � aw. w `� �� . � � �,.�. � .o-$ �� ,, �� "`� « �„. � � � �� A ��` � � '" "�� r*` ��., �� s� � *� �, ��,� ��, �� Pony Va��13oct�v �.hicf Izif�+n�aaFio�x�tAC ic er.'��` �raulcar�� .,w.m 9�r+),'2026 �,1F,��'�il'�3t�X �"�ti"��233gUr � . �`i l��l�€��f� � tvanboekel@cityofredding.org wtarbox@cityofredding.gov SUBJECT: 4.3(a) -- Authorize and Approve the purchase of hypervisor virtualization software VmWare. Recommendation Authorize and approve the following: (1) Approve the acceptance of quote PWQX305 and purchase of the hypervisor software VMware through the licensed and approved reseller CDW-G for three one-year terms, with an annual price of$140,250 each year for a total of$420,750 for the three years; (2) A�uthorize the City Manager, or designee, to modify the number and type of licenses based on City of Redding (City) needs; and (3) Adopt Resolution approving and adopting the 46th Amendment to Budget Resolution No. 2025-049 appropriating $60,250 to fund the first year of the purchase utilizing the City's Information Technology Reserves Account. Fiscal Impact Information Technology (TT) budgeted $80,000 in the 2026-2027 budget for the cost of the hypervisor software. The total cost per year of$140,250 which is an unbudgeted fiscal impact of $60,250 for the �irst year. Utilizing three-year pricing, helps reduce the fiscal impact by guaranteeing prices wi11 not increase for the subsequent years and allows the City of Redding (City) to receive lower multiyear pricing through the commitment. Year two and year three will be budgeted at the cost in the quote. The City received quotes from CDW-G and Zones, the reseller that was used in the previous purchase term, with CDW-G coming in with the bestpricing by$16,150. IT has worked diligently throughout the year to ensure the best value for money spent, which has resulted in some budgetary savings in 2025-2026. This savings will be absorbed into fund balance at the end o�Fiscal Year (FI� 2026, which is being used as the source of appropriation in FY 202'7. Complex cyber security enhancements in 2025-2026, required more due diligence in the planning phases and did not incur monthly billing charges also resulting in some of the budgetary savings in 2025-2026. Report to Redding City Council July 16, 2026 Re: 4.3(a)--Authorize and Approve the purchase of hypervisor virtualization software VmWare Page 2 Alternative Action The City Council could choose to not authorize the purchase, and provide alternate direction to staff. Background/Analysis The City of Redding has a virtualized technology environment, where many different virtual servers and software are able to run simultaneously on the same physical server hardware. Hypervisors are virtual machine monitors, which allow for this to take place. The City uses VMware as the hypervisor software and has invested into staff training in VMware processes. The City relies on VMware to operate more than three hundred virtual machines for applications across the City including those that enable email, operate databases, process permits, and track work. As the 2025-2027 two-year budget cycle was in process, VMware was in the process of being acquired by a new parent company, Broadcom. In 2023, VMware cost $61.43 per core. Today, impacted by rising IT costs, increased demand, reworked packages with enhanced feature sets, and the Broadcom acquisition, per core cost has increased considerably. The one-year quote for VMware costs $186.62 per core, which is more than a 200 percent increase. By bundling for three years, the City is able to have guaranteed pricing of$165 per core, saving $18,377 per year each year. VMware is the leading hypervisor software, and the cost of switching both in time and re- training staff requires multiple years of analysis and planning. Environmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council Pr�iority/City Manager Goals � Government of the 21st Century - `Be relevant and proactive to the opporYunities and challenges of today's residents and workforce. Anticipate the future to make better decisions today." Attachments Budget Resolution 2026 VMWare Quote RESOLUTION NO. 2026 - A RESOLUTION OF THE CITY OF REDDING APPROVING AND ADOPTING TI3E 46TH AMENDMENT TO CITY BUDGET RESOLUTION NO. 2025-049 APPROPRIATING $60,250 TO FUND THE FIRST YEAR OF THE PURCHASE OF VMWARE FOR FISCAL YEAR 2026-27 BE IT RESOL VED BY THE CITY CO UNCIL OF THE CITY OF REDDING THAT Budget Resolution No. 2025-049 be and is hereby amended as �ollows: FUND DIVISION DESCRIPTION 1NCREASE DECREASE 311 3101 Information Technologies �60,250 THAT account titles and numbers requiring adjustments by this Resol�ution are as follows: USE SOURCE OF FUNDS OF FUNDS Increase(Decrease)Revenue 311-0000-2910000 Beginning Balance $ 60,250 Increase Expenditures 311-3101-5092501 Office Equipment $ 60,250 Total $ 60,250 $ 60,250 THAT the purpose is to appropriate $60,250 to fund the first year of the purchase of VMWare for �scal year 2026-2027. I HEREBY CERTIFY that the foregoing Resolution was introduced at a regular meeting of the City Council of the City of Redding on the 21 st day of J�uly, 2026, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: MIKE LITTAU,Mayor ATTEST: FORIYI APPROVAL: SHARLENE TIPTON, City Clerk BENJAMIN L. STOCK, Interim City Attorney Thank y��a far ch��ing CDW, V�� hau� re��ived y��ar q��t�o ��rdw�re� ��ftvv�r� ��rvi�� TT ��I�tiar2s �rands f2��rcl� �ub QUOTE CONFIRMATION ��,�.��;��.�...��1�� w�; ��i' ;w'� �;�� _ 4 4 Due to ongoing supply chain challenges, some hardware manufacturers cannot guarantee product availability 4 i or pricing until the product is shipped. While we make every effort to honor quoted pricing, if a hardware I i manufacturer increases its price to CDW after a quote is issued or order is accepted, we may need to update your quoted price to reflect that change irrespective of any timeframes or validity periods set forth in the quote, including up to the date of shipment. In the event of a price adjustment, we will notify you prior to i shipment. Any price adjustment would only occur if the hardware manufacturer increases its pricing to CDW. :........ ................................. .................-.........,..,.......................................,..,..,....................................................,..,..,..................................... ....... ......... ........... -. �� l�°T� , Thar�k y�u f�r c�r��id�rir�g �DVV�G far yc�ur t��hr�olc�gy r��e�d�. Tl�e d��il� �� yc�ur q�atat� �r� b�low. Tf v�u a�� r� � ��u�� r�t �� Er� I� �i�r� r� �e��t� �r� t�a�� 1� ir�t� ��ar � �t� fi� �� t � �it�� 1'��a �ar� ��r�h fc�r y�ur q�o�� t� r�tri�� as�d �r�r��f�r b��k ir�to ye�ur �y�t�rn fc�r pr�c��ir�g. Fcar �II �th�r ��s�c�rr��rs, �li�k b�lavv �o �c�nu�rt y�ur qu�t� ta �r� c�rd�r4 o • . . � �� i�c�°r��°r� �� r�°r��v�� r�� n��ro�rta� i ��X�� /1$f��C� P��05 4��12� �4��,��a�Q r.,........ _..... ........................................................................ ........... ... ....................................... ..... ..................................._..,......_._._.................... ............ _............................... .....,.......... ..........................., i �21►�1'�C��1"AII�� w......... ...._ ......_ ........,_, ......... ......... __.......... ......... _.... .......,._ ......... ......... ......... _....... ............... ......._.. „ ............................. Il'E�R �7"� �� 1.��27°��I�� E�i',��I�E ��_�� +€�__�.`�tseo.:.:_._� aa��s�� .._�`�.'r? �,��r�_atu�aY:�.:v �.�.�.�':� ..�.:.: 85Q 8149975 $165.Q0 $1R0,250.04 �. ��.�,.,Y�xs�,. Mfg. Part#: VCF-VSP-FND-lY VMware vSphere Faundation (Purchase liir�itatians-cali Carahsaft for details.}-for 1 yearVMware, LLC- VCF-VSP-�ND-lYStart Dafe: 07/18/2026End Qate: Q7/17/2027 Eiectranic distributEon - NO MEDIA Contract: Sourcewelf 121923 CDW�-Softwsre GOV ONLY(I21923} ��;.+��c�re�...�."��3,:,��u� ¢�s�e.:.,.:� a�a� ,�� s� .��:::� r 3��....�.�� ,.�w�.�:.�,.�:_.:: $50 $149975 $165.QQ $140,250.Q0 .�t....�E�i i'�:.:4?:°�� . Mfg. Part#: VCF-VSP-FND-1Y VNlware vSphere Foundation (Purchase limitatic�ns-ca!! Carahsaft for details.}-for 1 yearVMware, LLC- VCF-VSP-FND-lYStart Dafe: 07/18/2027End Date: 07/17/2028 Eiectranic distributian - NO MEDIA Contract: Saurcewelf 121923 CDWG-Software GOV ONLY(121923} ��°�� cf.�...:;�,��e�.�;.a�s aa�.�...t€��s� ....:�; r��a��;��e r+Fa,,�,�c�� „� ?�.?:��.�.�.: 850 81�49975 $165.00 $1�40,250.Q0 �. ��tit.a�> Mfg. Part#: VC�-VSP-FRiD-lY VMware vSphere Foundation (Purchase limitatians-caH Carahsaft for details.}-for P yearVMware, LLC- VCF-VSP-FND-lYStart Date: 07/18/2028End date: 07/17(2029 Eiectranic distributlon - NO MEDIA Contract: Sourcewelf 121923 CDWG-Saftwsre GOV ONLY(I21923} .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... ..... �t1�1'�l'A� $424,75Q.Q4 ��a��xr�� o.aa �AI��S �A� $4.OQ G��T'41"�C ��2�,��0.�� [N��Ff��E��T�,LI��ItY�� ' ��.Y��"1"� �ai�i��Ac�c4a~�ss: �h��p@s��e#dr��o CITY QF REDDING CITY dF REDDIIVG VANESSA MZLLER ANGELA fi,USTYIV 777 CYPRESS AVE 777 CYPRESS AVE REDDING,CA 96001-2718 REDDING, CA 96001-2728 ��,��,�o �s�aa sa�-s�ss ��,��,�o �s�o} �a�-s�3� �� nt"f�� s: VISA �h"s�pws��t�et@ac�d� ELECTRQNIC DISTRIBUTION F�I��r��t�� ra#�t�e CDW Governmenf 75 f2emittance Drive Suite 1515 Chicago, SL 6d675-1515 �1�� G�r�t��t Tttfo �� t�i�� (�� -�a�z � € < <� ;�� , � e��, �� .�:��: ��cr�°rz�nc� _..� �r��r°r�°�� ' �n�ar��°rx�� ' � ��,��rx�ru _�wM..., w_� ro_�._. �__.� __� �..�._�: _...__�w .�� __ ��__�� .�.��_ ��...�.�� w��._.:��e�� .�..��._._ a�^B�VPB�4Be6SeB a�.6 SPm'666P n�u�(1'B�f�6.� �^8�§dFC�OR.Sd68 �Sc�p��Be.,S.9.f�T0��6� Monthly payment based on 36 manth Iease. Ctiher terrns and optinns are available. Contact yaur Account Manager for detaiCs: Payment quoted is subjeet to change. Why finance? � �ower Upfront Casts. �et the produets you need without impactiv�g cash flow. Preserve your warking capital and exlsting credit Iine. � Flexibl�Payment Terms. 1Q4°lo fin�ncing with no money dawn,payment deferrals and payment scheduCes that match yr,ur company's busirress cycles. � Predictable, l.ow Monthly Paymer�ts. Pay over time. Lease payrnenCs are fixed and can be tai(ored to your budget leuels ar revenue streams. «Technology Refresh. Keep current technalagy with rninimal financial Impact or risk.Add-on or upgrade during�he iease terrn and choose to return or pucchase the equipment at es�ci of lease. � �undle Costs.You can ccrrnbine hardware,software,and seruices into a single transaction and pay for your strftware li�enses auer tirne! lNe know your challenges and understancJ th�needi for flexibility. General Terrns and Gonditions: This qut�te is not legalky binding and is for discussion purposes only.The r�tes are estimate arrly and are based on a cailectican of industry data fram nurnerous sources,AII rates and financia!quotes are subjeet to fina! review,appraval; and documentation by our Ieassng partners. Payrnents above exclude aIl applicable taxes. Financing is subject to credit apprnual and revi�w af fin�l equipment and seruic�s configurafian. Fair N�arket Value Ieases are structured with the as�urnptlon that the equipment has a residual value at the er�d af the lease terrn. € ��d ��;�� ' [ � � � � M� ��ar�t � �tapp�r� j C�II �OQ.�OOo�239 s s _.... ....... ...... ......... ......_ ._........ ......... ___..._ _. ......... __..... ...... .__..... ......._ ....... ...... � Page 2 of 3 �� i ��a�� d�� ,� ��,a ��,��»�� This arder fs'subject ta CDW`s T�rms�nd�onditions of SaCes�ntl Seruice Rrajeets at r1 ,.� tr1 �. ...rM ,�-,.�c ....?.=,�:t., , . ,..t..,...�.., � ,,.?..,.A', ,,..`�.atw>,,,��' Far mare infc�rrnatian, contact'a CC?W accaunt manager.; VI�Ware Your use af the UMware by Broadcerm ofiferings;icientified within this ard�r are sub�ect ta(a)kY�e standard end user agreement at htCps;j/wwtu.umware<com/�gr�eements.htrni,(b)the�peeific program C��cumentatio�r(the',`SPD"'),and/or SaaS Listing applicabfe�a the UMwar�by Braadcorri ofFerirrgs artei M�ir�tenance Eacated at https:/Jwww.broadcom.cc�m/tic�nsfng and (c}the adtlitian�I t�rms within this arder (collectivelY,the"�nd Uses�Terms""), tkny terms that may appe�r'on yaur;purchase c�rder that uary from or purpart to add to the End User Terms(ir�ciuding, withc�uf lirnitatican, pre-print�d terms}iare deernetl not appended, inapp9icable and void, c�}2Q26 CDW�G��C,;�00 R!. Miiwaukee Avenue,Verndn HiIIs,IL 6d46i ( 80Q.S08i�F239 Page 3 of 3