The City's server system is nearing end of life and must be replaced. The system will be seven years old when the current lease expires in November 2023, but the current equipment has begun failing and staff strongly recommends installation of a new system prior to the lease expiration. The new system will allow the City to comply with industry-recommended best practices and will provide a higher level of security, better data management capabilities and an improved ability to install critical upgrades without taking servers out of service.

IT staff spent a significant amount of time over the last year researching replacement options that would meet the City's requirements. A request for proposal (RFP 22-06) was sent out in December for a Multi-node Hypervisor Cluster to support the City's expanding server system. The following companies responded to the RFP:

Heartland Business Systems presented an industry-leading solution, Nutanix, which matched all City requirements, at the lowest cost. Heartland has over 28 years of experience in the industry, with engineers who have significant experience with the Nutanix solution.

Staff is recommending the City Commission select Heartland Business Systems, who presented the best solution at the lowest cost. The City will enter a five-year lease which will cover hardware, software and maintenance fees. 

The monthly cost of the original lease for the City’s aging hardware was $2,250, while the monthly cost of software and maintenance is currently $2,091, for a total of $4,341.

Heartland’s proposal includes the cost of software and maintenance, will replace the aged City hardware and will support the City’s rapidly expanding technology needs.  The monthly cost of hardware, software, maintenance and financing for the new system will be $7,790 per month.

Staff sought multiple quotes for financing, and CCA Financial offered a competitive interest rate and the lowest total cost, at $7,790 per month.  The total five-year cost is not-to-exceed $467,400, which is higher than the above proposal amount due to the cost of financing. 

Approve the Heartland Business Systems' proposal to purchase a new Multi-node Hypervisor Cluster to replace the City's current system and approve a five-year lease with CCA Financial for a total not-to-exceed price of $467,400,  and authorize the City Manager or her designee to sign all necessary documentation.