City Council
Report
City Council Meeting: October 27, 2026
Agenda Item: 4.F
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To: Mayor and City Council
From: Feroz Merchhiya, Chief Information Officer, Information Services Department Subject: Approval of Fifth Modification of Agreement with Zones for After-Hours Service Desk Support for the Information Services Department Recommended Action
Staff recommends that the City Council:
1. Adopt a finding of no possibility of significant effect pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines; and
2. Authorize the City Manager to execute a fifth modification to agreement #10887 in the amount of $93,918 with Zones, LLC (Zones) for after-hours Service Desk support for the Information Services Department. This will result in an amended agreement with a new total amount not to exceed $2,309,586, with future year funding contingent on Council budget approval.
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Summary
The City of Santa Monica (City) contracts with Zones to provide after-hours service desk and technical support, and after-hours monitoring of City computer systems. The current agreement does not have sufficient authority to cover services beyond October 2026.
Staff seek to modify the current agreement authority amount by an additional $93,918 to continue IT support services on a month-to-month basis while staff complete the formal procurement process for these services. The request to extend this agreement has been approved by Procurement via ECB # 526 but still requires City Council authorization to execute the contract modification. A request for proposals for these services opened on September 14, 2026 (RFP # 473) and staff anticipate the recommended award going to City Council in early 2027.
Discussion
Santa Monica operates over 300 software systems and supports over 2,200 computer users. As a full-service City, many critical city functions, such as Police, Fire, Water and Transportation, happen outside of normal business hours and require immediate support. After evaluating different models, staff determined it was most cost effective to contract with a third party to provide IT support desk services, including after-hours support, and monitoring. The City support service staff focus their efforts on hardware repairs, more complex technical issues, asset management of computer systems, and the replacement of laptops and computers.
The City has already begun the competitive process of soliciting proposals to establish a new agreement for 24x7x365 Service Desk support. Until a new contract is executed as a result of RFP #473, staff recommends that Council increase the authority of the existing month-to-month agreement with Zones to avoid interruption in critical after-hours Support Desk functionality, not to extend beyond August 31, 2027. Zones provides its services at a cost of $8,895 per month plus a 10% contingency, a rate which will remain in place through the term of the contract. The City will terminate its current contract with Zones when a new agreement is fully executed.
Past Council Actions
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Meeting Description
07/23/2019
(Attachment A)
Award Request for Proposal (RFP) for Network Operations Center Services
07/29/2025
(attachment B)
Approval of Third Modification of Agreement with Zones for 24x7x365 Service Desk Support
On July 23, 2019, Council authorized the execution of an agreement with Zones, LLC in an amount not to exceed $2,387,000 (including one‑time setup costs, 2% annual cost increases, and a 10% contingency of $217,000). Contract #10887 (CCS), was subsequently executed on September 16, 2019 for an amount not to exceed $2,169,786. On February 8, 2023, in response to the City’s evolving Support Desk needs, that agreement was modified by the City and Zones to extend the Managed Services Service Desk Support model from After-Hours (5:30 PM Pacific Time – 7:30 AM Pacific Time, Monday – Friday), Weekends and Holiday support to 24x7x365 support. In addition to extending the Service Desk scope to 24x7x365, the City asked Zones to remove the NOC scope, which had become duplicative, and both parties agreed to subsequently decrease the overall agreement amount to reflect the change in services to a reduced amount not to exceed $1,988,732.
On August 20, 2024, the City and Zones executed a second modification to Contract #10887 to extend the term through August 31, 2025, with no change to the not‑to‑exceed amount of $1,988,732. On July 29, 2025, Council approved a third modification in the amount of $226,936, increasing the total agreement authority to $2,215,668 to cover anticipated costs through August 31, 2026. To preserve funds and ensure adequate time for staff to complete the procurement process, the City and Zones executed a fourth modification in early October 2026, reverting services to after‑hours, weekend, and holiday support only, and extending the term through August 31, 2027, with no change to the not‑to‑exceed amount. Should services need to continue through August 31, 2027, staff request an additional $93,918, for a revised not‑to‑exceed amount of $2,309,586, to avoid any interruption in critical support services while the formal procurement process is completed. 4 of 5
Following a detailed evaluation of the City’s Managed Services Service Desk Support model, Information Services Department staff determined that substantial revisions to the planned request for proposals were necessary. The updated scope ensures the City can successfully procure a 24x7x365 remote Service Desk solution that aligns with current operational needs, integrates effectively with existing systems and platforms, and reflects modern cybersecurity standards and industry best practices. This analysis and restructuring required additional time, ultimately extending the procurement timeline into FY 2026–27. The revised request for proposals was released to the public on September 14, 2026, and the procurement process is now underway.
Environmental Review
The proposed contract modification is exempt from the provision of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines (common sense exemption). The proposal is covered by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The modification would not result in any adverse physical environmental effects as it encompasses remote services. Therefore, the modification to the agreement is exempt from CEQA and no further environmental review under CEQA is required.
Financial Impacts and Budget Actions
Staff seeks authority to approve available funding from various funds to increase the total contract amount for Contract #10877 (CCS) with Zones for after-hours Service Desk support on a month-to-month basis. The cost is allocated to various funds based on the estimated historical percentage of service desk usage.
Contract Modification Request
Agreement
#
Current
Authorized
Amount
FY 2026-27
Modified
Request Amount
Future Years
Amount
Account
Number
Total Revised
Contract Amount
10877 $2,215,668 $93,918 $0 Various $2,309,586
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Future year funding is contingent on Council budget approval.
Prepared By: Carolyn Connolly, Administrative Services Officer Approved Forwarded to Council
Attachments:
A. Staff Report Zones NOC Services 07.23.2019
B. Zones 3rd Mod Staff Report 07.29.2025
C. Zones FY 26-27 Oaks Initiative Form
D. LEVINE ACT DISCLOSURE FORM_ZONES, LLC_FY26-27