CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Bid 26-032 Municipal Center IT Server Room Expansion, to Lite Construction, Inc. for an amount not to exceed $1,097,000 plus a 3% contingency
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DEPARTMENT: Information Technology
SUBMITTED BY: Jacqueline Nguyen, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City’s existing Information Technology (IT) server room was designed to meet operational needs but no longer provides sufficient power or physical space to support current and anticipated growth in systems, storage, and network infrastructure. As municipal services expand and technology dependencies increase, these limitations create challenges related to equipment density, electrical capacity, cooling, maintenance access, and long-term scalability.
The IT server room houses key equipment which supports many City functions, such as:
• Hardware and networking equipment running the main City applications (GIS, Cityworks, Security Camera system, Building Access Control, Utility Billing System, Documentation Management System, etc.)
• Networking equipment supporting some Electrical applications
• Equipment supporting the Traffic Management system
To address these constraints, the City engaged Kluber Architects & Engineers to develop specifications and drawings to expand the server room into an adjacent conference room.
In February 2026, the Information Technology Department issued Bid 26-032, Municipal Center IT Server Room Expansion. The scope of work includes the following activities:
• Wall removal to expand the data center into the IT conference room
• Electrical work
• Replacing the current fire suppression system with a Clean Agent fire suppression system (extinguishing fire without leaving residues and damaging equipment)
• Removing the current cooling unit and replacing it with more efficient cooling units
• Flooring work
DISCUSSION:
Advertise Date: 02/03/2026 Notices Sent: 605
Bid Opening: 03/03/2026 Planholders: 68
Proposals Received: 3
Completed bids were received from the following vendors:
|
Vendors Name |
Proposed Cost |
|
Lite Construction, Inc. |
$1,097,000.00 |
|
Manusos General Contracting, Inc |
$1,167,144.00 |
|
A.L.L Masonry Construction Co. |
$1,239,300.00 |
Based on a bidder’s scope review provided by Kluber Architects & Engineers, Kluber found the bid by Lite Construction, Inc, to be responsive and complete. Lite Construction, Inc. has successfully completed similar projects with both the City and Kluber. Additionally, the City is working with Lite Construction on active projects, and the City has been pleased with their performance.
Staff recommends awarding the contract to Lite Construction, Inc. as the lowest responsive and responsible bidder for the procurement of construction services, as defined by Section 1-9B-7 of the Procurement Code (RBO-qualified).
The term of the contract is from the date of award through December 15, 2026.
FISCAL IMPACT:
CIP #: CE164 - Data Center Upgrade & Expansion
The Municipal Center IT Server Room Expansion will be expensed to the Technology account listed below. $900,000 was included in the 2026 Budget for the completion of this project. While the award amount plus contingency exceeds the budgeted amount by $229,910, the project was budgeted for $1.4M across two years. The 2025 Budget included $500K, of which only $117K was spent. As a result, the total project remains below the initially budgeted amount. It is anticipated that this year's overage can be accommodated in the 2026 Budget. Staff will monitor expenditures to ensure they remain within the overall approved budget.
|
Account Number |
Fund Description |
Total Budget Amount |
|
16102200-551504 |
Capital Projects Fund |
$5,835,000 |
Per Council directive, contingencies on construction projects are set at 3% on projects over $500,000 and 5% on projects under $500,000.