PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.F
Meeting Date: November 18, 2025
TITLE:
Contract Amendment 3 With Channel Islands Technology Integrators’ Group, Inc. (CITIG) for Information Technology Services
RECOMMENDATION:
Adopt a Resolution authorizing the City Manager to execute Amendment 3 to the Channel Island Technology Integrators’ Group, Inc. agreement for Information Technology Services for December 1, 2025 through November 30, 2028.
DISCUSSION:
The City’s Information Technology (IT) services are provided by an IT Manager, IT Technician, and a contracted IT service provider. The contracted IT services provider offers 24/7 helpdesk services for computers and servers for all 130 or so users, backup support for the IT Manager, and additional project hours and services as needed. On November 5, 2019, after staff conducted a competitive request for proposals process, the City Council adopted Resolution R-2019-080 authorizing the City Manager to enter into an agreement with Channel Islands Technology Integrators’ Group, Inc. (CITIG) for IT services. The agreement included a three-year period from December 1, 2019 through November 30, 2022, with two options for a three-year extension as mutually agreed to.
The services covered include IT help desk services and shared management of IT infrastructure. In addition to these core services, CITIG also provides the City with special pricing on antivirus, backup, spam filtering, monitoring, and other services at a discounted rate. These other services are separate from the total contract and are provided as needed.
On December 20, 2022, the City Council adopted Resolution R-2022-110 authorizing the City Manager to extend the agreement with CITIG for three years from December 1, 2012 through November 30, 2025.
CITIG Contract Services and Costs
The CITIG contract includes IT help desk services, shared infrastructure management services, and options for onsite services.
IT Help Desk Tickets: Since 2022, the City’s in-house staff has covered almost all of the help desk tickets. CITIG is only covering tickets when both IT staff members are out of the office.
Onsite Infrastructure Support: A monthly infrastructure day is still needed to assist with the shared managed infrastructure.
Managed Servers: IT has been able to maintain the base of 61 managed servers for the past 3 years.
Council Agenda 11-18-2025 9.F-1
Cost and Service Changes
Per Amendment #2 to the agreement with CITIG, effective each year is a cost increase to reflect an annual Consumer Price Index (CPI) comparing September 2025 to the previous September 2024, reflecting a total 3.5% increase in their rates. As such, the December 1, 2025 rates will include a 3.5% increase in the onsite infrastructure support and managed services costs. Going forward, annually, CITIG is proposing adjusting its fee each year based on CPI to keep up with inflation.
Proposed Services and Cost for CITIG
Based on the above proposed cost increases to reflect CPI adjustments, the proposed contract is estimated to cost the City $164,880 for the first year. Depending on the number of servers or assistance with tickets, the total estimated cost could be more or less than this amount. Staff recommends that the cost of another 5 servers be estimated in the contract as a contingency, bringing the total proposed contract amount to a not-to-exceed $176,940 for the first year, and with 4% estimates for CPI increase each year, $552,336 over the three-year term extension.
Table 1. CITIG Services and Costs – Current vs. Proposed Services Current
Contract
Services
Current
Contract
Services
Proposed
Contract
Services
Proposed
Contract
Services
Shared
Infrastructure
Management
(Server
Maintenance
and Support)
$194/server per
month for 61
servers
$142,008/year
$201/server per
month for 66
servers
$159,192/year
Onsite
Infrastructure
Day
1 day per month
at $1,429/month $17,148/year 1 day per month
at $1,479/month $17,748/year
Total $159,156/year $176,940/year
Conclusion and Recommendation
Staff recommends that the City Council adopt a resolution (Attachment 1) authorizing the City Manager to execute Amendment 3 (Attachment 2) to the Channel Island Technology Integrators’ Group, Inc. agreement for Information Technology Services for the period of December 1, 2025 to November 30, 2028.
FISCAL IMPACT:
The fiscal impact of adopt the subject resolution is an additional not-to-exceed $176,940 for the period of December 1, 2025 through November 30, 2026, and with an estimated 4% estimate for CPI increase each year, $552,336 over the three-year term extension.
Of this amount, $103,215 is for Fiscal Year (FY) 2026. This amount is already budgeted in the Technology Services Fund, which is supported by various funds based on each type of cost.
Council Agenda 11-18-2025 9.F-2
Total Contract Cost
Original contract cost was a not-to-exceed amount of $144,540 per year or $433,620 over the 3 years of the contract.
Amendment #1 included an additional $5,500 for costs related to IT services while Pismo Beach provided public safety dispatch services for Grover Beach. Amendment #2 included the cost of the first extension in an amount not-to-exceed $167,100 for the first year, and $501,300 over the three-year term extension. Amendment #3, this proposed extension, includes an additional not-to-exceed $176,940 for the first year and $522,336 over the three-year term.
The total amount for the entire contract will be $1,462,756 over the 9-year term.
ATTACHMENTS:
1. Resolution
2. Amendment 3
Prepared by:
Jason Takagi, Information Technology Manager
Submitted by: Nadia Feeser, Administrative Services Department City Manager Approval:
Council Agenda 11-18-2025 9.F-3
RESOLUTION NO. R-2025-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT 3 TO THE CHANNEL ISLANDS TECHNOLOGY INTEGRATORS’ GROUP, INC.
AGREEMENT FOR INFORMATION TECHNOLOGY SERVICES FOR DECEMBER 1, 2025 THROUGH NOVEMBER 30, 2028
WHEREAS, the City’s Information Technology (IT) services are provided by an IT Manager, IT Technician, and a contracted IT service provider; the contracted IT services provider offers 24/7 helpdesk services for computers and servers for all 130 or so users, backup support for the IT Manager, and additional project hours and services as needed; and
WHEREAS, on November 5, 2019, the City Council authorized the City Manager to enter into an agreement with Channel Islands Technology Integrators’ Group, Inc. (CITIG); the agreement included a three-year period from December 1, 2019 through November 30, 2022, with two options for a three-year extension as mutually agreed to; and WHEREAS, on December 20, 2022, the City Council authorized the City Manager to enter into an extension of the agreement with CITIG; the agreement was extended to November 30, 2025, with an option for a three-year extension as mutually agreed to; and WHEREAS, the CITIG agreement extension for the 3-year period between December 1, 2025 and November 30, 2028 includes shared infrastructure management, onsite infrastructure days, and the option to support the help desk and with a fiscal impact of a not-to-exceed $176,940 per year of $552,336 over the three-year extension, depending on the number of servers and support, which amount is already budgeted in the Technology Services Fund, and supported by various funds based on each type of cost.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute Amendment 3, in substantially the form attached to staff’s report dated November 18, 2025, to the agreement with Channel Islands Technology Integrators’ Group for Information Technology Services for December 1, 2025 to November 30, 2028.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 18th day of November 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Council Agenda 11-18-2025
Attachment 1
9.F-4
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and official seal of the City of Pismo Beach on _______________________.
________________________
Erica Inderlied, City Clerk
Council Agenda 11-18-2025
Attachment 1
9.F-5
AMENDMENT # 3
to the
NOVEMBER 15, 2019, AGREEMENT BETWEEN THE CITY OF PISMO BEACH AND CHANNEL ISLANDS TECHNOLOGY INTEGRATORS’ GROUP, INC. (CITIG) Pursuant to the November 15, 2019 Agreement for Professional Services between the City of Pismo Beach, hereinafter referred to as “City,” and Channel Islands Technology Integrators’ Group, Inc., hereinafter referred to as “Vendor,” City and Vendor hereby agree as follows:
1.New Proposed Solutions and Separate Line Item Pricing in a quote dated November 6, 2025, which is attached hereto and by reference made a part hereof, replaces the Proposed Solutions and Separate Line Item Pricing on pages 13–14 of the proposal dated August 27, 2019.
2.Section 6 of the November 15, 2019 agreement is hereby modified to include the following additional subsection (d):
(d)Cyber technology errors and omissions. CONSULTANT shall procure and maintain insurance with limits of $1,000,000 per occurrence/loss, $2,000,000 general aggregate, which shall include the following coverage:
a.Liability arising from the unauthorized release of information for which an entity has the legal obligation to keep private, such as personally identifiable information (PII) and protected health information (PHI).
b.Network security liability arising from the unauthorized use of, access to, or tampering with computer systems, including hacker or denial of service attacks. c.Liability arising from the failure of technology products (software and hardware) required under the contract for CONSULTANT to properly perform the intended services.
d.Claims alleging the failure of computer security that result in the transmission of malicious code, deletion, destruction or alteration of data, or the denial of service. e.Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deep-linking or framing, and infringement or violation of intellectual property rights. f.Liability arising from the rendering, or failure to render, professional services. g.Defense costs in regulatory proceedings (state and federal) involving a violation of privacy laws or intellectual property rights.
h.Crisis management and other expert services.
If coverage is maintained on a claims-made basis, CONSULTANT shall maintain such coverage for an additional three (3) years following termination of the contract.
3. Compensation for the additional services shall not exceed the amount of one hundred seventy-six thousand, nine hundred forty dollars ($176,940.00) per year, or five hundred fifty-two thousand, three hundred thirty-six dollars ($552,336.00), without prior written approval of the City.
4.The revised fee under the contract, plus this addendum, is one million four hundred ninety- two thousand, seven hundred fifty-six dollars ($1,492,756.00). Of this amount, one hundred three thousand, two hundred fifteen dollars ($103,215) is for fiscal year (FY) 2026.
5.The term end date of the agreement is hereby revised to November 30, 2028.
6.All other provisions of the subject agreement between City and Vendor shall remain in full force and effect.
Council Agenda 11-18-2025
Attachment 2
9.F-6
CITY:
City of Pismo Beach, a Municipal Corporation
Signed:
Name: Nadia Feeser
Title: Administrative Services Direcor
Dated: ________________________________
Signed:
Name: Jorge E. Garcia
Title: City Manager
Dated: ________________________________
ATTEST:
Signed:
Name: Erica Inderlied
Title: City Clerk
APPROVED AS TO FORM:
Signed:
Name: Dean J. Pucci
Title: City Attorney
VENDOR:
Channel Islands Technology Integrators’
Group, Inc.
Signed:
Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice:
(if changed from prior agreement)
______________________________________
______________________________________
Email address for official communications:
(if changed from prior agreement)
______________________________________
Vendor Representative:
(if changed from prior agreement)
Name/Title: ____________________________
Attachment: Scope/Cost Proposal
Council Agenda 11-18-2025
Attachment 2
9.F-7
Proposed Solutions:
Effective December 1, 2025 and each year thereafter on December 1, all fees (unless otherwise noted) on the Contract, (excluding percentage-based fees) shall be increased by the percent increase in the Consumer Price Index -- U (Los Angeles-Long Beach-Anaheim, CA All Urban Consumers) as reported for the most recent September compared to the September of the previous year. For labor rates, the adjustment will be made to the base labor rate prior to applying the 7.5% discount. The formula for the fees (excluding percentage-based fees) shall be as follows:
New amount for December 1, 2026 = November 1, 2026 amount * (September 2026 CPI / September 2025 CPI – 1)
New amount for December 1, 2027 = November 1, 2027 amount * (September 2027 CPI / September 2026 CPI – 1)
New amounts shall be rounded to the nearest dollar per month, and in NO event shall any new amount be less than the amount that was in effect on the prior December 1.
The Renewal for December 1st, 2025 will reflect 3.5% (September 2025CPI / September 2024 CPI -1).
City may choose Help Desk Option A or Help Desk Option B to use and can change with 30 days’ notice.
Help Desk Option A:
CITIG will triage and assign all tickets.
Help Desk Cost (RFP Section B.3.a) $7,700/month, $92,400/year Basis for Cost $77/ticket per month based on annual average of 100 tickets/month
Help Desk Hours Monday through Friday, 7am to 5:30pm
Emergency Ticket Response Time Phone: Immediate, Email/Web: 1 hour Urgent Ticket Response Time 1-2 hours
Standard Ticket Response Time 2-4 hours
Setup Fee $1500
Schedule and timeline to get up to speed Immediate
Help Desk Add-On Options
Onsite Help Desk Day (one per month)
Onsite Help Desk Day (two per month)
Onsite Help Desk Day (one per week)
Expedited Response Time Ask
Help Desk Option B:
City will triage, assign, and complete as many tickets as staff are able.
Help Desk Cost (RFP Section B.3.a) No pre-payment
Basis for Cost Hourly based on Rates listed in Separate line Item Pricing section
Help Desk Hours Monday through Friday, 8:30am to 5:30pm Council Agenda 11-18-2025
Attachment 2
9.F-8
Emergency Ticket Response Time Phone: Immediate, Email/Web: 1 hour Urgent Ticket Response Time 1-2 hours
Standard Ticket Response Time 2-4 hours
Setup Fee $0
Schedule and timeline to get up to speed Immediate
Help Desk Add-On Options
Onsite Help Desk Day (one per month) $1,209/month, $14,508/year (add-on) Onsite Help Desk Day (two per month) $2,287/month, $27,444/year (add-on) Onsite Help Desk Day (one per week) $4,711/month, $56,532/year (add-on) Expedited Response Time Ask
Shared Infrastructure
Shared Infrastructure Management (B.3.b) $12,261/month, $147,132/year Basis for Cost $201/server per month based on 61 servers Support Hours Monday through Friday, 7am to 5:30pm
After Hours Scheduled Maintenance Monday through Friday 5:30pm-12pm or Saturday 10am-10pm
Response Time Same As Above for Help Desk
Onsite Infrastructure Day (one per month) $1,479/month, $17,748/year (add-on) Setup Fee $0
Schedule and timeline to get up to speed Immediate
Discounts
Full Contract Labor Discount 7.5% (applied to non-contract labor) Annual CITIG Exclusivity Credit 5% (CITIG is given first right of refusal for all IT expenditures)
Council Agenda 11-18-2025
Attachment 2
9.F-9
Separate Line Item Pricing (Section
B.3.c/d)
AntiVirus (SOPHOS Intercept X Advanced
Protection)
$5.73/system per month
Backup (Storagecraft ShadowProtect) $9.44/desktop, $35.40/virtual server, $61.36/physical server per month
Spam Filtering (ProofPoint) $4.10/user per month
Monitoring (LogicMonitor) Included.
Dispatch Support Expansion $532/network
CPI will apply to the below labor rates:
Hourly Standard Service $219/hour (not including 7.5% discount) Hourly Advanced Service* $257/hour (not including 7.5% discount) Hourly Enterprise Service** $296/hour (not including 7.5% discount) EOC Emergency Onsite Staffing (M-F 8-5) $440/hour (not including 7.5% discount) EOC Emergency Onsite Staffing (After
Hours)
$658/hour (not including 7.5% discount)
EOC Scheduled Onsite Staffing (M-F 8-5) $219/hour (not including 7.5% discount) EOC Scheduled Onsite Staffing (After
Hours)
$330/hour (not including 7.5% discount)
IT Project Management Based on highest associated rate for project *VMware, VLAN, and Similar See CITIG Rate Sheet
**Enterprise Storage, Wireless Design See CITIG Rate Sheet Council Agenda 11-18-2025
Attachment 2
9.F-10