HomeMy WebLinkAbout05(O) - Resolution approving an agreement with CIT to upgrade the City’s Storage Area Network (SAN) and Servers Report
City of Prior Lake | 4646 Dakota Street SE | Prior Lake MN 55372
CITY COUNCIL AGENDA REPORT
ITEM: 5O
MEETING DATE: April 28, 2026
PREPARED BY: Lori Olson, Assistant City Manager
PRESENTED BY: Jason Wedel, City Manager
AGENDA ITEM: Resolution approving an agreement with CIT to upgrade the City’s
Storage Area Network (SAN) and Servers
RECOMMENDED ACTION:
Approve agreement with CIT to manage the replacement of the City's SAN and two host servers.
BACKGROUND:
This item requests approval to engage with CIT, a technology support company located in
Woodbury, to serve as the project manager to upgrade the City’s Storage Area Network (SAN)
and two host servers.
Both the SAN and host servers are nearing end of life and require replacement to ensure the
integrity of the City’s technology infrastructure and network. The SAN is a dedicated high-speed
network that centralizes the City’s storage devices and makes them accessible to virtual servers.
The SAN is vital for the recovery of City data in the event of a disaster. The City’s two physical
servers host the City’s virtual environment and provide load balance and redundancy should one
server fail.
As part of this project, the City will change its virtual platform vendor from VMware to Scale
Computing. VMware recently was bought by Broadcom, which moved their business strategy to
services aimed at large enterprises. They changed their fees from a perpetual license to an annual
subscription that requires all entities to subscribe to a minimum number of licenses regardless of
size. Continuing with VMware/Broadcom would have increased the City’s costs by more than
400% so the City worked with CIT to select Scale Computing as the new provider for the City’s
virtual platform.
Because City staff does not have the technical expertise to manage the scope and scale of this
project, an external consultant is required to complete this important project. The City has a
Master Services Agreement (MSA) with CIT to provide IT consulting services, and CIT holds deep
knowledge of the City’s technology framework, platforms, and operations. CIT developed the
City’s current IT infrastructure and served as the City’s IT contracted “staff” prior to 2014 when a
full-time IT coordinator was hired.
FINANCIAL IMPACT:
This project was approved as part of the final 2026 budget. However, the project’s costs have
increased due to federal tariffs and a shortage of equipment. The IT budget was underspent in
2025, and a budget amendment was approved by the City Council on March 24, 2026, to carry
forward $25,000 to the 2026 IT budget for this project. The total project cost is $124,112.53.
Item 5O
Page | 2
ALTERNATIVES:
1. As part of the consent agenda, approve the resolution to engage in an agreement with
CIT to upgrade the City's SAN and two host servers.
2. Remove from the consent agenda for discussion.
ATTACHMENTS:
1. SAN Servers Upgrade Resolution_4.28.2026
2. SAN Servers Upgrade SOW_4.28.2026
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 26-
RESOLUTION APPROVING AN AGREEMENT WITH CIT TO UPGRADE THE CITY’S
STORAGE AREA NETWORK (SAN) AND SERVERS
Motion By: Second By:
WHEREAS, the City of Prior Lake’s Storage Area Network (SAN) and two host servers are
nearing end of life and require replacement to ensure the integrity of the City’s
technology infrastructure and network; and
WHEREAS, the City will change its virtual platform vendor from VMware to Scale Computing as
part of this project; and
WHEREAS, City staff does not have the technical expertise tomanage the scope and scale of
this project; and
WHEREAS, the City has a Master Services Agreement (MSA) with CIT to provide IT consulting
services, and CIT’sdeep knowledge of the City’s IT infrastructure makes them the
appropriate vendor for this project; and
WHEREAS, this project was approved as part ofthe final 2026 budget, but the project’s costs
have increased due to federal tariffs and a shortage of IT equipment; and
WHEREAS, the IT budget was underspent in 2025, and a budget amendment was approved by
the City Council on March 24, 2026, to carry forward $25,000 to the 2026 IT budget
to fully fund this project.
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City Council authorizes an agreement with CIT in the amount of $124,112.53 for project
management services to upgrade the City’s SAN and two host servers.
Passed and adopted by the Prior Lake City Council this 28th day ofApril 2026.
VOTE Briggs Braid Churchill Lake Hellier
Aye
Nay
Abstain
Absent
Jason Wedel, City Manager
SAN & Servers Upgrade
Date: 3/23/2026
Prepared For:
City of Prior Lake
4646 Dakota St SE
Prior Lake, MN 55372
kroach@PriorLakeMN.gov
9524479812
Prepared By:
CIT
Brian Olson
Senior Account Manager
Brian.Olson@citsolutions.net
651) 255-5782
https://www.citsolutions.net
Executive Summary
Objectives and Intended Outcome
Business Objectives
The City of Prior Lake wants to explore all options when it comes to upgrading it's current hypervisor platform VMware. CIT has explored cost to replace current HPE
network with net HPE hardware and continue to utilize VMware. CIT also looked at Scale as a solution to migrate the city to a completely new hypervisor platform.
Intended Outcome/Deliverable
Depending on the platform the city moves forward with, this new infrastructure will provide the City of Prior Lake with a refreshed network of Servers and Storage.
Replace switching for 10GBaseT connectivity for Scale cluster as part of future fiber ring networking project.
Statement of Work
Kickoff/Meeting Call
Switch Configuration
Unbox and assemble hardware.
Install latest firmware.
Join to existing Core device stack:
2 X 6300M 24SR10 switches
2 X 6300 PSU
2 X SFP56 DACs
NOTE: 2 X 6300M 48G from existing stack will be removed for use at PD later. Final stack will be 2 existing 48G switches plus 2 new 24SR10s.
Create base switch configuration:
User credentials
SNMP
NTP
SSH management
Uplinks
Trunks
VLANs
Review existing switching and transfer necessary configurations to new devices.
Switch Cutover (downtime required - after hours recommended)
Document existing patch connections and remove legacy cabling.
Remove legacy switching.
Move patching bays and prepare rack for new switching.
Install new switching and connect to power and stacking cables.
Patch connections to new switching using provided cabling.
Verify connectivity and functionality of new switching.
Cleanup cable management.
Customer Considerations
10GBase-T optics require Cat5e or better cabling to function at 10GB connectivity.
Scale Server Imaging (3 Nodes)
Unbox and assemble hardware.
Obtain license keys and necessary node configuration details from Scale.
Download necessary ISO media for current version Scale deployment.
Image each node with Scale ISO and verify successful OS deployment.
Prepare node for transport to customer location.
Configure Scale Cluster (3 Nodes)
Unbox and assemble hardware.
Configure OOBM networking and licensing for each node.
Configure switching VLANs and ports for LAN and BACKPLANE networks.
Install hardware into rack and connect to power and networking.
Establish node connectivity and configure BACKPLANE networking.
Install latest Scale hardware and firmware updates on all nodes.
Enable SNMP monitoring on nodes.
Complete initial cluster setup and configuration.
Customer Considerations
Vendor support-ability and compatibility with all applications should be verified with Scale Computing hypervisor before proceeding with application migrations.
Sufficient power, networking and switch capacity will be required for new cluster to be online at same time as current server environment to allow for successful migration
of all workloads.
Server Migration (11 VMs)
NOTE: Multiple solutions exist for migration between Hypervisors - Service Engineer assigned to project will determine best course of action.
Available migration methods for this project:
Acronis Trial Tenant
Veeam Community Edition
Veeam Licensed Version
Datto BDR Backups
Scale Migrate (Carbonite)
Starwind (Host to Host Migration Tool)
Configure/Install necessary components for recovery method (if applicable).
Verify proper backups running for VMs that are being migrated.
Verify backup method is using proper agent based vs hypervisor based backups (if applicable).
Per VM Cutover Process (VM downtime required - after hours recommended):
Complete final backup and shutdown legacy VM.
Export/Restore VM to new hypervisor.
Power on new VM and install Guest Tools (VM reboot required).
Configure proper networking on VM.
Confirm VM functionality and connectivity.
Verify all virtual machines have been migrated to new hypervisor and are functioning correctly.
Virtual Machine Migration List:
PLDC02
MiltelNS
SMA500
LFServer
PFILE02
PLHVAC-WIN10 (Shutdown - no longer required)
PLDB1
PLDC01
Finance (Shutdown - no longer required)
Qualys Scanner
PLFILE01
Lenel (2019)
PLHVAC (Shutdown - no longer required)
PLUTIL1 (2019)
Decommission Legacy Hardware
Verify all necessary services, functionality and data has been migrated from legacy hardware.
Verify any legacy servers or VMs have been removed from backups.
Shutdown legacy devices and disconnect from networking and power.
Remove from network rack and stage for customer to recycle hardware.
Post project QA checklist
Project Management
CIT will assign a dedicated resource to serve as the Project Manager (“Project Manager”). The Project Manager will be responsible for overseeing the project, coordinating
CIT resources, and serving as the primary point of contact for the Customer. Responsibilities will include.
Managing project scope, including facilitating and documenting formal change requests.
Developing and maintaining the project schedule.
Leading regular status meetings with stakeholders, in accordance with the frequency agreed in the Project Plan.
Maintaining live project status updates within the Customer Portal, where the Customer may view reports at any time.
Performing additional project management activities as defined in this Statement of Work
Facilitate a formal project closure, which may include a Project Closure meeting.
CIT Change Orders
CIT establishes change management procedures to initiate changes to the services identified in the SOW.
A change typically occurs when either party encounters any of the following situations during service delivery:
Either party identifies new requirements not included in the original service’s scope
Either party changes the direction and intent of this Service, which requires CIT to rework the services.
Small Changes
Changes less than 20% of the original scope will be managed informally with email verification by the PM.
Large Changes
Changes greater than 20% of the original scope will be managed with a formal approval process.
Scale Production Cluster
Subtotal:$124,112.53
Tax:$0.00
Total:$124,112.53
Proposal Summary
SAN & Servers Upgrade
Quote information:
Quote #3529428-1-D
Prepared on: 3/23/2026
Expires: 4/22/2026
Account Executive: Brian Olson | Brian.Olson@citsolutions.net | (651) 255-5782 https://www.citsolutions.net
Prepared for:
City of Prior Lake
4646 Dakota St SE Prior Lake MN 55372
Ship to:
City of Prior Lake
4646 Dakota St SE
Prior Lake, MN 55372
One-time costs
Optional Description Qty Unit Price
Price
Including
Tax
Lenovo Gear $48,270.09
N CUSTOM SR650 V4 3 $16,090.03 $48,270.09
Aruba Networking $26,125.92
N HPE Aruba X372 54VDC 680W 100-240VAC Power Supply 4 $623.96 $2,495.84
N ARUBA 50G SFP56 TO SFP56 0.65M DAC CABLE 2 $276.70 $553.40
N HPE CX 6300 Layer 3 Switch 2 $11,538.34 $23,076.68
N Shipping & Handling
Shipping & Handling 1 $200.00 $200.00
Patch Cables $336.00
N 5FT PATCH CORD CAT6 THIN 48 $7.00 $336.00
Scale Licensing $24,284.52
N "SC//HyperCore 60 month Essential Kit Software and Support License Tier: Professional"1 $19,916.40 $19,916.40
N VMware Rip & Replace Partner Promo 1 $0.00 $0.00
N PROMO Scale Computing Move powered by Carbonite Migrate 1 $0.00 $0.00
N SC//Platform Foundations Training 1 $0.00 $0.00
N Admission to Scale Computing Platform 2026 Summit with SC//Platform Advanced Training Service Included 1 $0.00 $0.00
N Node Installation Remote Support 3 $375.09 $1,125.27
N ScaleCare Professional Service 3 $1,080.95 $3,242.85
CIT Services Fixed $24,896.00
Notes:
Please note: Items marked with "Y" (Yes) in the optional column are not included in the subtotal, tax, or total calculations.
Acceptance and Incorporation by Reference
This Proposal, together with the terms and conditions set forth in the Master Services Agreement, Service Attachments and all other agreements identified on Exhibit A (the agreements identified on Exhibit A are hereafter collectively
referred to as the "Ancillary Agreements") is between Computer Integration Technologies, a Minnesota corporation (sometimes referred to as "we," "us," "our," or "Provider"), and the customer identified on the signature block at the end of
this Proposal (sometimes referred to as "You," Your," or "Client").
PRIORITY OF NEGOTIATED AGREEMENTS: Notwithstanding anything to the contrary herein, if Client and Provider have previously entered into a separately negotiated and mutually executed Master Services Agreement or a formal
Amendment to the MSA ("Negotiated Agreement") with an effective date of 10/01/2025 or later, the terms of that Negotiated Agreement shall supersede any conflicting terms in the online Ancillary Agreements referenced on Exhibit A. If
no such Negotiated Agreement exists, the following incorporation terms shall apply:
Client and Provider expressly agree that the terms and conditions set forth in the Ancillary Agreements are hereby incorporated into this Proposal by reference as if fully set forth herein, regardless of whether Client separately executed
any of the Ancillary Agreements. Notwithstanding that certain provisions of the Ancillary Agreements may not facially appear applicable to every transaction or circumstance governed by this Proposal, each such provision shall be
interpreted broadly and in context, and shall apply and control to the extent such provision can reasonably be construed to apply to the rights, obligations, or subject matter hereof.
This Proposal shall be effective and shall automatically become a legally binding agreement as of the first date upon which both Provider and Client have signed below (the "Effective Date"). Provider and Client are sometimes referred to
separately as a "Party", or collectively as the "Parties." Any capitalized terms in this Proposal not defined herein shall have the meaning provided in any Ancillary Agreement(s) defining such capitalized term. If there is a direct conflict
between this Proposal and any term or condition set forth in any of the Ancillary Agreements, the conflicting term or condition in this Proposal shall control. By signing or accepting this Proposal, Client acknowledges, represents, and
warrants to Provider that Client has read and agrees to all terms and conditions set forth in the Ancillary Agreements on the Effective Date. The Parties agree that electronic signatures on this Proposal shall be relied upon and shall bind
the Parties to the terms and conditions stated or incorporated by reference herein. Each Party hereby warrants and represents that such Party is authorized to execute this Proposal and perform the undertakings set forth or incorporated
herein. This Proposal supersedes all prior negotiations, proposals, orders, agreements and communications between the Parties regarding all matters expressly addressed or within the reasonable scope of this Proposal or the Ancillary
Agreements.
Client acknowledges and agrees that Provider may, from time to time, revise the terms and conditions of the Ancillary Agreements, provided that any such revision shall be effective only in accordance with applicable law, including
prevailing legal standards for enforceable "clickwrap" or equivalent electronic consent mechanisms. Revised terms or conditions shall become binding and effective upon the earlier of: (a) Client's continued use of the applicable products
or services following reasonably conspicuous notice and opportunity for Client to review the revised term(s) or condition(s); or (b) Client's affirmative acceptance of the revised term(s) via a click-through or similar method reasonably
designed to confirm assent. Provider shall make revised terms reasonably available for Client review which shall indicate the date of last revision. If Client does not agree to any revised term(s), Client must discontinue use of the affected
products or services and may terminate this Proposal only in accordance with termination provisions set forth in the Ancillary Agreements. Any revision(s) to the terms or conditions of the Ancillary Agreements by Provider shall apply only
prospectively, unless otherwise required by applicable law or expressly stated in the revised terms.
Client further agrees that the terms of the Ancillary Agreements shall apply not only to the specific transaction described in this Proposal, but also to all other current and future transactions between Client and Provider unless and until
such terms are superseded by a subsequently executed Proposal or Ancillary Agreement.
Both of the Parties, acting through their respectively authorized officers, agents, or representatives hereby execute this Proposal with the intention of being bound hereby.
Exhibit A
Click the buttons below to view the linked documents.
Master Services Agreement Services Attachment for Managed Services Service Attachment for Access Control Services Service Attachment for Managed Video Surveillance
Schedule of Services Data Processing Agreement Schedule of Third-Party Services
IN WITNESS WHEREOF, this Order Form is agreed to by the parties below and entered into as of the Order Effective Date.
CIT
Signature:
Name : Brian Olson
City of Prior Lake
Signature:
Name:
Date: