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SR 09-27-2022 5G City Council Report City Council Meeting: September 27, 2022 Agenda Item: 5.G 1 of 3 To: Mayor and City Council From: Joseph Cevetello, Chief Information Officer, Information Services Department, Infrastructure and Cloud Services Subject: Approval of a Purchase Order for the use Amazon Web Services (AWS) Recommended Action Staff recommends that the City Council authorize the City to issue a purchase order with DLT Solutions, a Tech Data Company, for Amazon Web Services (AWS) for the Information Services Department. This recommended award is made as an exception to the competitive bidding process pursuant to Section 2.24.250(c) and is for a total amount not to exceed $1,237,500 (including a 10% contingency of $112,500), over a five-year period, with future year funding contingent on Council budget approval. Summary The Information Services Department (ISD) uses Amazon Web Services (AWS) cloud services for hosting the City’s business systems in the cloud. As part of its “Cloud First Strategy,” ISD has transitioned a portion of the City’s servers from an on-premises datacenter to AWS. Over the past two years, as the transition has progressed, the use of cloud-hosted servers and services has increased. ISD anticipates this growth to continue over the next five years. Staff seeks approval to enter into a new multi-year purchase agreement with authorized reseller of AWS cloud services, DLT Solutions (DLT). Discussion ISD has initiated a “Cloud First Strategy” for its Information Technology infrastructure to achieve greater agility, lower cost, and increased resiliency. As part of this initiative, the City selected AWS as its cloud service provider. AWS offers a tremendous flexibility 5.G Packet Pg. 150 2 of 3 and potential cost savings for hosting data center applications and infrastructure on- demand. In a traditional on-premises data center environment, the City invests in data center equipment, software licensing, facility power & cooling, annual hardware/software maintenance, and staff costs. There are also fixed capital expenditures that the City must pay upfront. In the AWS cloud environment, the City pays monthly for only the computing resources that it consumes and reduces the City’s expenditures on information technology infrastructure. The AWS cloud environment allows for quick and simple expansion or reduction of computing services and includes integrated disaster recovery. Additionally, cloud-based computing allows the City to modernize business applications and infrastructure, enabling the adoption of newer, more modern technologies that in turn support an improved customer experience to the community through improvements to the website, 311 system and other citizen facing applications. At this time, only 10% the City’s servers are hosted in AWS. This number is expected to grow as departments modernize their business systems and formulate plans to replace legacy applications. AWS is the largest, most reliable cloud service provider in the industry. To fully implement and establish the City’s AWS environment and to leverage economies of scale pricing for AWS cloud services, ISD must procure services through an AWS government reseller, such as DLT Solutions. Vendor Selection Exception to Competitive Bidding Staff recommends DLT Solutions to furnish and deliver/provide AWS cloud services as an exception to competitive bidding per Muni Code 2.24.250 (c): competitive procedures were followed by a governmental agency, federal, state, county, city, joint powers agency, special district, or cooperative purchasing agency and the goods or services are supplied to the City at the same or better price. In 2019, Region 4 Education Service Center (a conglomerate of 47 public and 40 charter schools covering seven-county areas in Texas) conducted a competitive process through the Omnia Partners, Public Sector Purchasing Alliance, for technology products, services, solutions, and related products. Contract # R190902 was awarded to DLT Solutions to provide AWS cloud services, including, training, archiving, data processing, warehousing, storage, infrastructure services, and support services. Region 4 Education Service Center has partnered with OMNIA partners make this solicitation available to other public agencies nationally, including state and local governmental entities, public and private primary, secondary and higher education entities, non-profit entities, and agencies for the public benefit. The City of Santa Monica will piggyback on this contract which offers the most competitive pricing for AWS 5.G Packet Pg. 151 3 of 3 services. Financial Impacts and Budget Actions Staff seeks authority to approve funding from the Information Technology Replacement and Services Fund to award a purchase order with DLT for AWS cloud services. The current proposal from DLT Solutions is for a total amount not to exceed $1,237,500 for 5 years. Future year funding will be contingent on Council budget approval. Funds for this purchase are available in the FY 2022-23 Capital Budget. Enterprise funds will reimburse the General Fund to pay for their portion of AWS hosting. Purchase Order Request FY 2022-23 Budget Request Amount Future Years CIP Account # Total Contract Amount $222,500 $1,015,000 C7100030.689000 $1,237,500 Prepared By: Sarkis Metspakyan, Systems & Network Manager Approved Forwarded to Council Attachments: A. OAKS INITIATIVE FORM_FE_v1 B. OAKS INITIATIVE FORM_FE_v2 5.G Packet Pg. 152 CITY OF SANTA MONICA OAKS INITIATIVE NOTICE NOTICE TO APPLICANTS, BIDDERS, PROPOSERS AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS, OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk. This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica. All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12- month period. In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months. DocuSign Envelope ID: A6795524-3CF7-409F-AB3A-E3E367097B99 5.G.a Packet Pg. 153 Attachment: OAKS INITIATIVE FORM_FE_v1 (5335 : AWS Cloud Services) CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benefits include: 1.Personal services contracts in excess of $25,000 over any 12-month period; 2.Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-month period; 3.Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4.Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5.Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6.Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-month period; or 7.Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-month period. Name(s) of persons or entities receiving public benefit: Name(s) of trustees, directors, partners, and officers: Name(s) of persons with more than a 10% equity, participation, or revenue interest: Prepared by: Title: Signature: Date: Email: Phone: Permit # FOR CITY USE ONLY: Bid/PO/Contract # Tech Data Corporation Elizabeth White sales@dlt.com 800-262-4358 8/29/22 Assistant Secretary DocuSign Envelope ID: A6795524-3CF7-409F-AB3A-E3E367097B99 None. Eddie Franklin – PresidentStaci Patel – Secretary Elizabeth White – Assistant SecretaryReyna Thompson – Senior Vice President Scott Walker – Corporate Vice President, Treasurer 5.G.a Packet Pg. 154 Attachment: OAKS INITIATIVE FORM_FE_v1 (5335 : AWS Cloud Services) CITY OF SANTA MONICA OAKS INITIATIVE NOTICE NOTICE TO APPLICANTS, BIDDERS, PROPOSERS AND OTHERS SEEKING DISCRETIONARY PERMITS, CONTRACTS, OR OTHER BENEFITS FROM THE CITY OF SANTA MONICA Santa Monica’s voters adopted a City Charter amendment commonly known as the Oaks Initiative. The Oaks Initiative requires the City to provide this notice and information about the Initiative’s requirements. You may obtain a full copy of the Initiative’s text from the City Clerk. This information is required by City Charter Article XXII—Taxpayer Protection. It prohibits a public official from receiving, and a person or entity from conferring, specified personal benefits or campaign advantages from a person or entity after the official votes, or otherwise takes official action, to award a “public benefit” to that person or entity. The prohibition applies within and outside of the geographical boundaries of Santa Monica. All persons or entities applying or receiving public benefits from the City of Santa Monica shall provide the names of trustees, directors, partners, and officers, and names of persons with more than a 10% equity, participation or revenue interest. An exception exists for persons serving in those capacities as volunteers, without compensation, for organizations exempt from income taxes under Section 501(c)(3), (4), or (6), of the Internal Revenue Code. However, this exception does not apply if the organization is a political committee or controls political committees. Examples of a “public benefit” include public contracts to provide goods or services worth more than $25,000 or a land use approval worth more than $25,000 over a 12- month period. In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Therefore, if you are seeking a “public benefit” covered by the Oaks Initiative, you must supply that information on the Oaks Initiative Disclosure Form. This information must be updated and supplied every 12 months. DocuSign Envelope ID: A6795524-3CF7-409F-AB3A-E3E367097B99 5.G.b Packet Pg. 155 Attachment: OAKS INITIATIVE FORM_FE_v2 (5335 : AWS Cloud Services) CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benefits include: 1.Personal services contracts in excess of $25,000 over any 12-month period; 2.Sale of material, equipment or supplies to the City in excess of $25,000 over a 12-month period; 3.Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4.Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5.Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6.Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12-month period; or 7.Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12-month period. Name(s) of persons or entities receiving public benefit: Name(s) of trustees, directors, partners, and officers: Name(s) of persons with more than a 10% equity, participation, or revenue interest: Prepared by: Title: Signature: Date: Email: Phone: Permit # FOR CITY USE ONLY: Bid/PO/Contract # Tech Data Corporation Elizabeth White sales@dlt.com 800-262-4358 8/29/22 Assistant Secretary DLT Solutions, LLC, a Company DocuSign Envelope ID: A6795524-3CF7-409F-AB3A-E3E367097B99 None. Eddie Franklin – PresidentStaci Patel – Secretary Elizabeth White – Assistant SecretaryReyna Thompson – Senior Vice President Scott Walker – Corporate Vice President, Treasurer 5.G.b Packet Pg. 156 Attachment: OAKS INITIATIVE FORM_FE_v2 (5335 : AWS Cloud Services)