Title
Consider/Discuss/Act on an Ordinance Amending the Fiscal Year 2025-2026 Annual Budget and Amending the 2026-2030 Capital Improvements Program to Provide Funds for the City Data Center Hardware Refresh Project (IT2639)
Summary
COUNCIL GOAL: Operational Excellence 2.1 (Balance available resources to accommodate the growth and maintenance needs of the City.)
MEETING DATE: June 2, 2026
DEPARTMENT: Information Technology
CONTACT: Omar Rodriguez, Chief Information Officer
Mahmood Khan, Deputy Chief Information Officer
RECOMMENDED CITY COUNCIL ACTION:
• Approve ordinance
ITEM SUMMARY:
• This Ordinance amends the Fiscal Year 2025-2026 Annual Budget and the 2026-2030 Capital Improvements Program by appropriating $2,100,000 from the Technology Improvement Fund balance to the Capital Improvement Program for City Data Center Hardware Refresh Project (IT2639).
BACKGROUND INFORMATION:
• Current Data Center Systems are reaching the end of life and must be replaced.
• Data Center Systems are responsible for running applications for the entire City, including Public Safety (Fire, Police, EOC) and Development Services.
• Replacing with newer equipment allows consolidation of systems to reduce space, power, and cooling consumption.
• Purchasing hardware in early June 2026 avoids a known hardware cost increase of 25% and possibly future increases due to the high demand for memory and chips being procured to build AI data centers.
• New systems have increased memory and computing power to handle the growing need for data systems for the city.
FINANCIAL SUMMARY:
• This Ordinance amends the Fiscal Year 2025-2026 Annual Budget and the 2026-2030 Capital Improvements Program by appropriating $2,100,000 from the Technology Improvement Fund balance to the Capital Improvement Program for City Data Center Hardware Refresh Project (IT2639).
BOARD OR COMMISSION RECOMMENDATION:
• N/A