title
CC - CONSENT ITEM: (1) Approval of Purchase Orders With ePlus Technology Inc.,, Dell, Lenovo, Super Micro or through one of the approved resellersand SHI International Corp. in a Combined Amount Not-To-Exceed $800,000 for Procurement and Implementation of a Modern, Fully Supported Enterprise Data Center Hardware and Software to Replace Aging and Unsupported Infrastructure Supporting the Transportation Department and Citywide Systems; and (2) Waiver Of Competitive Bidding Requirements for the Procurement of the Server Equipment Pursuant to Culver City Municipal Code Section 3.07.075.F.3.
body
Meeting Date: April 27, 2026
Contact Person/Dept.: Hoa Diep, Information Technology
Phone Number: (310) 253-6266
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Attachments: Yes [] No [X]
Public Notification: (E-Mail) Meetings and Agendas - City Council (04/23/2026)
Department Approval: J.R. Wright, Chief Information Officer (03/19/2026) _____________________________________________________________________
RECOMMENDATION
Staff recommends the City Council (1) approve purchase orders with ePlus Technology Inc, Dell, Lenovo, or Super Micro or through one of the approved resellersfor server hardware and SHI International Corp. for software licensing in a combined amount not-to-exceed $800,000 for procurement and implementation of a modern, fully supported enterprise data center platform to replace aging and unsupported infrastructure supporting the Transportation Department and Citywide systems; and (2) waive competitive bidding requirements for the procurement of the server equipment pursuant to Culver City Municipal Code (CCMC) Section 3.07.075.F.3.
BACKGROUND
The Transportation Department relies heavily on the Clever Devices system to manage essential daily operations, including transit scheduling, route management, vehicle tracking, and internal communications. In 2025, the City renewed its agreement with Clever Devices; however, a significant shift occurred under the new contract, transferring full responsibility for system infrastructure maintenance and support from the vendor to the City’s Information Technology Department. This transition required City IT staff to assume direct oversight of the underlying infrastructure, prompting a comprehensive and impartial assessment of the on-premises environment supporting the Clever Devices’ system.
That assessment revealed a number of serious deficiencies that had accumulated over time, particularly within the standalone Transportation Department data center originally deployed and maintained by Clever Devices. The environment was found to include aging hardware that is no longer supported by manufacturers, gaps in maintenance coverage, inconsistent patching and update practices, and limited disaster recovery capabilities. These conditions collectively introduced substantial operational and cybersecurity risks. City IT has already taken immediate corrective actions to stabilize the environment by addressing some of the most critical issues including implementing structured patch management, replacing vulnerable endpoint devices, updating firmware where possible, establishing enterprise-grade off-site backups, securing remote access, and repairing degraded network components. These efforts represent only short-term mitigation rather than a sustainable long-term solution. City IT have developed a detailed strategic plan to establish proactive industry best practices for the Transportation Department infrastructure.
The most pressing concern remains the Transportation Department’s primary storage array that serves as the backbone for virtual servers and operational data. This system has reached full end-of-life status, with no manufacturer support, no available replacement parts, and no ability to receive firmware or security updates. It is currently operating in a degraded state with a failed drive already in place. Because replacement drives are no longer available, additional drive failures will likely result in data loss and disruption of transit operations. Beyond the hardware risk, the inability to apply security updates significantly increases exposure to cybersecurity threats, creating a scenario in which both operational continuity and data integrity are at risk.
This urgency is further compounded by the future planned data center replacement hardware at the City Hall data center. Core server infrastructure supporting multiple departments is approaching end-of-life, with manufacturer support set to expire in the second quarter of 2027. These servers host a wide range of mission-critical enterprise applications, meaning that failure or instability would have cascading impacts across City operations. The server hardware replacement was originally planned for replacement in fiscal year 2027-28. Taken together, these factors underscore the need for a coordinated, forward-looking modernization effort rather than isolated or reactive fixes.
DISCUSSION
The proposed solution is to replace both the Transportation Department’s aging storage array and the City Hall server infrastructure with a unified, modern enterprise platform designed according to current industry best practices. The new environment would incorporate a high-availability architecture with full redundancy across compute, storage, and networking components, ensuring that no single point of failure can disrupt operations. It would include advanced storage configurations with built-in failover capabilities, encryption of data both at rest and in transit, and full vendor support with warranty coverage extending at least five years, with options to extend further to seven years. Additionally, the platform would be designed to integrate seamlessly with enterprise virtualization technologies while also supporting cloud connectivity for backup, replication, and disaster recovery purposes.
Equally important is the consolidation of the Transportation Department’s standalone data center into the City’s centralized data center architecture. This consolidation will improve overall system performance, reliability, and manageability while eliminating redundant infrastructure and reducing capital expenditures and ongoing maintenance or licensing costs. It will also allow the City to standardize backup, replication, and disaster recovery processes across departments, creating a more cohesive and resilient technology environment. During this transition, uninterrupted access to Transportation data will be maintained, ensuring continuity of operations.
In developing this recommendation, staff evaluated several alternative approaches, including full migration to cloud-hosted platforms such as AWS or Azure, transitioning to vendor-hosted application models, adopting open-source virtualization solutions, and implementing hybrid cloud strategies for select workloads. While each option offered certain advantages, they also introduced notable challenges, including higher long-term operational costs, increased reliance on third-party providers, potential cybersecurity concerns, and reduced control over critical systems. Additionally, industry trends indicate that cloud service costs are likely to rise in the near future due to increasing infrastructure demands and market pressures, further diminishing the financial viability of those options for the City’s core systems.
The purchase of the software from SHI International Corp. is exempt from the formal competitive bidding process, pursuant to CCMC Section 3.07.055.E; however, the purchase of hardware typically requires a competitive bid process. An exemption from the competitive bid process is requested for the server equipment (hardware) from one of the aforementioned companies. to expedite implementation, ensure compatibility with existing systems, and lock in current pricing before further increases occur. Per CCMC Section 3.07.075.F.3. the City Council may waive, by majority vote, formal bidding requirements for such purchases when bid procedures would be contrary to the best interests of the City or impractical. Given the immediate need for supported and fully functioning servers for Transportation Department to maintain operations, the skyrocketing costs for server hardware, and the time associated with preparing and conducting a formal bid process, staff recommends the City Council waive the formal bid procedures and approve the purchase order based on the price quotes received.
FISCAL ANALYSIS
Beginning in September 2025, staff began to research best technology solutions at the lowest possible costs. Staff were able to obtain multiple budgetary quotes for replacement infrastructure from various vendors. Initial estimates were approximately $400,000; however, due to global supply chain constraints, geopolitical instability, and tariffs, recent quotes have increased to approximately $800,000 for comparable systems. Costs are projected to rise an additional 30% to 50% by the end of the year. Given the combination of escalating costs and the high risk of system failure, immediate procurement is necessary.
Costs will be allocated by resource consumption between Transportation Department Enterprise Funds and City’s operational budget. This approach ensures transparency, equity, and scalability as system usage evolves. The model distributes costs proportionally using four primary drivers:
• Compute (CPU Cores + Licensing)
• Storage
• Memory (RAM)
• Fixed Infrastructure (Network Switches)
Resource Utilization
The following table summarizes system-level resource consumption of the Transportation Department.
Allocation Basis
Costs are allocated based on the percentage of total available capacity consumed between Transportation Department and City Hall. The chart below represents the total cost allocation to the Transportation Department as determined by projected usage of the total system.
Department-Level Cost Allocation
The City is not requesting additional funding; instead, the goal is to expand the purchasing options available during this volatile time. This additional procurement availability will enable the City to purchase the required equipment at the most competitive rate. The City will either procure directly from ePlus Technology Inc, Dell, Lenovo, or Super Micro or through one of the approved resellers. The City will seek the lowest quoted price from all vendors for comparable equipment once Council has approved spending authority. Staff will ensure total spending does not exceed the approved $800,000 limit.
ATTACHMENTS
None
recommended action
MOTION(S)
That the City Council:
1. Approve purchase orders with ePlus Technology Inc. Dell, Lenovo, or Super Micro or through one of the approved resellersfor server hardware and SHI International Corp. for software licensing in a combined amount not-to-exceed $800,000 to replace critical server infrastructure for Transportation Department and City Hall; and
2. Waive competitive bidding requirements for the server equipment procurement per CCMC Section 3.07.075.F.3.; and
3. Authorize the Purchasing Officer to execute the purchase orders on behalf of the City.