REPORT TO COUNCIL
SUBJECT
Title
Authorize the Issuance of a 5-year Master Services Agreement in the Amount of $1,270,500 to DataBank Holdings, LTD. to Provide a Colocation Facility for City Data Centers. (F25-185)
Report
REPORT IN BRIEF
Approval is requested to authorize a Master Services Agreement in the amount of $1,270,500 to DataBank Holdings, LTD of Dallas, Texas to provide a colocation facility for City data centers. Additionally, approval is requested for a 10% contingency in the amount of $127,050.
EXISTING POLICY
Pursuant to Chapter 2.08.040 of the Sunnyvale Municipal Code, City Council approval is required for contracts exceeding $250,000 in any one transaction.
Section 2.08.070(b)(3) authorizes the purchase of goods and/or services to be exempted from the competitive bidding requirements when the solicitation of bids or proposals would be impractical, unavailing or impossible.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
BACKGROUND AND DISCUSSION
To enable the City to maintain critical services and safeguard sensitive information against potential threats or failures, the City relocated its primary data center to a colocation facility following a competitive Request for Proposal (RFP) process in 2017. The selected vendor at the time was Zayo Group, which later sold its data center portfolio to Databank. Databank provides the City with a state-of-the-art, hardened, and secure data center facility. The facility is staffed 24/7 by trained professionals and features robust physical and technical safeguards, including redundant power and cooling systems to ensure uninterrupted operations, video surveillance, and biometric access controls to enhance security.
In addition to hosting the primary data center, Databank also supports the City’s disaster recovery strategy by providing a disaster recovery site located in Colorado. This geographically distant facility ensures the City’s data is protected and can be restored in the event of a major disruption locally.
The City did not conduct a solicitation for competitive bids, as relocating Sunnyvale’s primary datacenter and/or our disaster recovery site would be costly and labor intensive. Minimally, the cost to relocate to another site is estimated to be over $2 million and would require three full time ITD staff 18 - 24 months to plan and execute the move. The proposed renewal of the expiring agreement with Databank is for a five-year term at an annual cost of $254,100, totaling $1,270,500 over the duration of the agreement. The annual cost for this contract represents a 5% increase from the prior contract, and locks in pricing at this rate for five years. This renewal would ensure uninterrupted access to critical data center services, which are essential for the City’s operational resilience.
FISCAL IMPACT
Budget for data center services is available in the operating budget in Fund 7027 - Technology & Communication Services under Program 15200 - Information Technology Services and Support. Information technology city-wide services are funded through internal service charges based on operational use of the service. The FY 2024/25 cost increase will be absorbed in the current operating budget, and internal service charges will be adjusted to accommodate the new cost in future years.
PUBLIC CONTACT
Public contact was made by posting the Council meeting agenda on the City's official-notice bulletin board at City Hall, at the Sunnyvale Public Library and in the Department of Public Safety Lobby. In addition, the agenda and this report are available at the NOVA Workforce Services reception desk located on the first floor of City Hall at 456 W. Olive Avenue (during normal business hours), and on the City's website.
RECOMMENDATION
Recommendation
- Authorize the issuance of a Master Services Agreement to DataBank Holdings LTD in the amount of $1,270,500 in the same form as Attachment 1 to the report to provide a colocation facility for City Data Centers;
- Authorize the City Manager to execute the Master Services Agreement when all necessary conditions have been met; and
- Approve a 10% contingency in the amount of $127,050.
Levine Act
LEVINE ACT
The Levine Act (Gov. Code Section 84308) prohibits city officials from participating in certain decisions regarding licenses, permits, and other entitlements for use if the official has received a campaign contribution of more than $500 from a party, participant, or agent of a party or participant in the previous 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html
An “X” in the checklist below indicates that the action being considered falls under a Levine Act category or exemption:
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
_X_ Contract or franchise
EXEMPT FROM THE LEVINE ACT
_ _ Competitively bid contract*
___ Labor or personal employment contract
___ Contract under $50,000 or non-fiscal
___ Contract between public agencies
___ General policy and legislative actions
* "Competitively bid" means a contract that must be awarded to the lowest responsive and responsible bidder.
Staff
Prepared by: David Battaglia, Purchasing Officer
Reviewed by: Kathleen Boutté Foster-Gee, Chief Information Officer
Reviewed by: Dennis Jaw, Interim Director of Finance
Reviewed by: Sarah Johnson-Rios, Assistant City Manager
Approved by: Tim Kirby, City Manager
ATTACHMENTS
1. DataBank Renewal 112976 Master Services Agreement