PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #9.F
Meetin Date: Februar 17, 2026
TITLE:
Agreement with Channel Islands Technology Integrators’ Group for a Disaster Recovery System, Arcserve, to Facilitate Hyper-V Conversion
RECOMMENDATION:
Adopt a Resolution authorizing the City Manager to enter into an agreement with Channel Islands Technology Integrators’ Group, Inc. to provide a disaster recovery system, Arcserve, in the amount of $148,521.64 in Fiscal Year 2026.
EXECUTIVE SUMMARY:
Since 2014, the City has been using the VMware hypervisor to run the City’s virtual server environment. A hypervisor allows the City to run multiple virtual servers on a single physical server, enabling efficient use of the physical hardware and provides cost effective redundancy through multiple physical servers. Following Broadcom’s acquisition of VMware in 2023, VMware significantly revised its product and pricing model, requiring bundled software purchases that substantially increase costs and make continued use of the platform financially unsustainable for the City.
Staff has evaluated alternative virtualization platforms and determined that Microsoft Hyper-V is the only viable solution that fully supports the City’s existing Microsoft-based virtual servers and software applications, and aligns with the technical expertise of City staff.
To minimize downtime during the conversion to the new solution, particularly for mission- critical public safety systems such as the Police Department’s Computer Aided Dispatch and Records Management System (CAD/RMS), staff recommends implementing the Arcserve disaster recovery system to facilitate a streamlined conversion during the planned Public Safety Facility server replacement. This solution reduces system downtime from more than 24 hours to only a few hours and significantly enhances the City’s long-term disaster recovery capabilities.
Limitations of Standard Conversion Methods
Standard server conversion methods would require extended system downtime, including more than 24 hours for mission-critical public safety systems such as the Police Department’s CAD/RMS, which is not operationally feasible.
Proposed Disaster Recovery Solution
The proposed disaster recovery system, Arcserve, will assist the conversion to Hyper-V by providing the shortest amount of down time for the conversion to take place. The timing of implementing this conversion is strategically aligned with the Public Safety Facility project. As part of this project, all the Police department’s servers will be replaced, which will require downtime of the Police systems. Using this downtime to also make the Hyper- V conversion minimizes the impact to Police operations.
Council Agenda 3-3-2026 9.F-1
The conversion process also works in a disaster recovery scenario, allowing City staff to restore all the City’s virtual servers at an off-site datacenter within hours. Using the City’s current backup system, it would take a few days for staff to completely restore the City’s virtual servers.
Evaluation and Purchasing Method
Staff evaluated several disaster recovery solutions to support the City’s transition to Microsoft Hyper-V. After reviewing functionality, compatibility, and cost, staff determined that Arcserve provides the best overall value and meets the City’s operational requirements. The Arcserve solution is available through a competitively bid United States General Services Administration (GSA) contract, which is open for use by local governments. Channel Islands Technology Integrators’ Group (CITIG) is listed as an authorized reseller under this GSA contract.
In accordance with the City’s Purchasing Policy and Procedures Manual, the City Manager is authorized to enter into an agreement using a government cooperative purchasing contract, provided that the contract was competitively procured, and the product meets the City’s specifications. Because the GSA contract satisfies these requirements and the Arcserve solution conforms to the City’s needs, staff recommends proceeding under this cooperative purchasing authority.
Conclusion and Recommendation
Staff recommends adopting a resolution (Attachment 1) authorizing the City Manager to enter into an agreement with CITIG to provide a disaster recovery system, Arcserve, in the amount of $148,521.64 in Fiscal Year (FY) 2026.
FISCAL IMPACT:
The fiscal impact of approving the subject Resolution is an additional cost of $148,521.64 in FY 2026. The City’s FY 2026 Technology Services Fund budget has sufficient budget to support this cost, including $135,000 in the contract services account and an additional $22,500 in the IT Backup Servers project account for a total of $157,500.
Staff recommends that the Council consolidate these expenditure budgets into the IT Backup Servers project account. The Technology Services Fund budget is an internal services fund supported by cost recovery from other funds for operating costs and transfer from other funds for projects. As such, staff recommends that Council also de-appropriate the cost recovery from other funds to the Technology Services Fund, and appropriate related transfers from other funds to support this project.
The proposed budget adjustments result in a net increase of $67,500 in both expenditures and revenues for a net $0 fiscal impact across all funds. The total proposed revenue and expenditure appropriations in each fund are summarized in Table 1.
Council Agenda 3-3-2026 9.F-2
Table 1: Fiscal Impact of Proposed Budget Adjustments
Fund FY 2026 Expenditures FY 2026 Revenues
General Fund $59,027 $ -
LBID Operations 433 -
Water Enterprise 2,631 -
Wastewater Treatment 5,559 -
Parkin Enterprise 1,365 -
Technolo Service Fund - 67,500
Motor Vehicle Fund 649 -
Total Fiscal Impact $67,500 $67,500
ATTACHMENTS:
1.Resolution
2.Quote
Prepared by:
Jason Takagi, Information Technology Manager
Submitted by: Nadia Feeser, Administrative Services Director City Manager Approval:
Council Agenda 3-3-2026 9.F-3
RESOLUTION NO. R-2026-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH CHANNEL ISLANDS TECHNOLOGY INTEGRATORS’ GROUP, INC. TO PROVIDE A DISASTER RECOVERY SYSTEM, ARCSERVE, IN THE AMOUNT OF $148,521.64 IN FISCAL YEAR 2026
WHEREAS, since 2014 the City has utilized the VMware hypervisor platform to operate its virtual server environment, which enables multiple virtual servers to run on shared physical hardware and supports the delivery of critical municipal services; and WHEREAS, following Broadcom’s acquisition of VMware in 2023, VMware significantly revised its product and pricing model, requiring bundled software purchases that substantially increase costs and make continued use of the platform financially unsustainable for the City; and
WHEREAS, City staff have evaluated alternative virtualization platforms and determined that Microsoft Hyper-V is the only viable solution that fully supports the City’s existing Microsoft-based virtual servers and software applications, and aligns with the technical expertise of City Information Technology staff; and
WHEREAS, standard server conversion methods would require extended system downtime, including more than 24 hours for mission-critical public safety systems such as the Police Department’s Computer Aided Dispatch and Records Management System (CAD/RMS), which is not operationally feasible; and
WHEREAS, the proposed Arcserve disaster recovery system will significantly reduce system downtime during the Hyper-V conversion process and enhance the City’s long- term disaster recovery capabilities, and is available for purchase through a United States General Services Administration (GSA) cooperative purchasing contract in compliance with the City’s Purchasing Policy;
WHEREAS, the City’s FY 2026 Technology Services Fund budget has sufficient funding to support this cost, however, budget adjustments across all funds are required to appropriate allocations to the Technology Services Fund.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to enter into an agreement (execute a quotation) with Channel Islands Technology Integrators’ Group, Inc. in substantially the form attached to staff’s report dated February 3, 2026, to provide an Arcserve disaster recovery system in the amount of $148,521.64 in Fiscal Year 2026.
BE IT FURTHER RESOLVED that the City Council of the City of Pismo Beach hereby consolidates these expenditure budgets into the IT Backup Servers project account, de- Council Agenda 3-3-2026 9.F-4
Attachment 1
appropriates the cost recovery from other funds to the Technology Services Fund, and appropriates related transfers from other funds to support this project. The total revenue and expenditure appropriations by fund are illustrated in the following table:
Fund FY 2026 Expenditures FY 2026 Revenues
General Fund $59,027 $ -
LBID Operations 433 -
Water Enterprise 2,631 -
Wastewater Treatment 5,559 -
Parkin Enterprise 1,365 -
Technolo Service Fund - 67,500
Motor Vehicle Fund 649 -
Total Fiscal Impact $67,500 $67,500
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 3rd day of March 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
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 3-3-2026 9.F-5
Attachment 1
City of Pismo Beach
Prepared for:
Arcserve UDP Option 2.2 (GSA Contract #GS-
35F-303DA)
Quote # 005014 v1
Prepared by:
Ryan Newell
347 Chapala St, Santa Barbara, California 93101 Office: 8053645300 Fax: 8053645313 [email protected] Council Agenda 3-3-2026 9.F-6
Attachment 2
Hardware
Description Price Qty Ext. Price
S93669 ARC APL 10192DR CPNT - PRD OLY $13,526.10 2 $27,052.20 Subtotal $27,052.20
Software
Description Price Qty Ext. Price
S93720 ARC APL 10192DR BRNZ - 3YR GLD H/W MNTCE $1,502.01 2 $3,004.02 S93722 ARCAPL10192DR3YR64TBLICUDPPRM BRNZ
SUBSNNWTOBEUSEDWITH10KAPLOLY
$56,096.55 2 $112,193.10
Subtotal $115,197.12
www.citig.com Page: 2 of 3
Council Agenda 3-3-2026 9.F-7
Attachment 2
Arcserve UDP Option 2.2 (GSA Contract #GS-35F-303DA)
Prepared by:Prepared for:Quote Information:
CITIG City of Pismo Beach Quote #: 005014
Ryan Newell
Chief Executive Officer
(805) 364-5303
Fax (805) 364-5313
[email protected]
Jason Takagi
760 Mattie Road
Pismo Beach, CA 93449
(805) 540-9549
[email protected]
Version: 1
Delivery Date: 12/03/2025
Expiration Date: 12/31/2025
Quote Summary
Description Amount
Hardware $27,052.20
Software $115,197.12
Subtotal:$142,249.32
Shipping:$118.51
Estimated Tax:$2,231.81
Total:$144,599.64
Taxes, overtime, shipping, handling and other fees may apply. We reserve the right to cancel orders arising from pricing or other errors.
Signature:
Name:Ryan Newell
Date:12/03/2025
Signature:
Name:Jason Takagi
Date:
www.citig.com Page: 3 of 3
Council Agenda 3-3-2026 9.F-8
Attachment 2
City of Pismo Beach
Prepared for:
Arcserve Deployment Project
Quote # 005262 v1
Prepared by:
Kyle Sibbald
347 Chapala St, Santa Barbara, California 93101 Office: 8053645300 Fax: 8053645313 [email protected] Agenda 3-3-2026 9.F-9 Attachment 2
Services
Description Price Qty Ext. Price
Standard Labor Rate Hours
-Travel to Pismo and SLO Datacenter
-Install Arcserve device at CH and SLO Datacenter
-Attach Hyper-V hosts to device
-Setup backup jobs
-Setup alerting
-Setup replication to SLO Datacenter
-Test spinning up a server on device
-Test restoring server to Hyper-V at each site
-Update Jason on expected time to be back online in a disaster -Work to be done during normal business hours
-Price subject to change
$196.10 20 $3,922.00
Subtotal $3,922.00
www.citig.com Page: 2 of 3
Council Agenda 3-3-2026 9.F-10
Attachment 2
Arcserve Deployment Project
Prepared by:Prepared for:Quote Information:
CITIG City of Pismo Beach Quote #: 005262
Kyle Sibbald
IT Operations Manager
(805) 364-5213
Fax (805) 364-5313
[email protected]
Jason Takagi
760 Mattie Road
Pismo Beach, CA 93449
(805) 773-7086
[email protected]
Version: 1
Delivery Date: 10/21/2025
Expiration Date: 11/11/2025
Quote Summary
Description Amount
Services $3,922.00
Total:$3,922.00
Taxes, overtime, shipping, handling and other fees may apply. We reserve the right to cancel orders arising from pricing or other errors.
The undersigned hereby accepts the above quote and agrees to be bound by the terms of the City of Pismo Beach's Vendor Services Agreement.
Signature:
Name:Kyle Sibbald
Date:10/21/2025
Signature:
Name:Jason Takagi
Date:
www.citig.com Page: 3 of 3
Council Agenda 3-3-2026 9.F-11
Attachment 2