City Council Agenda Report
Meeting Date: March 3, 2026
From: Brian Saeki, City Administrator
Department: City Administration
Submitted by: Sara Sandoval, Management Analyst
Subject
11-11 Systems (iLand Internet Solutions Corp.) Secure Cloud and Disaster Recovery Service Agreements
Recommendation
A. Find that maintaining the Master Services Agreement with 11-11 Systems for iLand Secure Cloud Backup Services is in the best interests of the City and is exempt from competitive selection pursuant to Vernon Municipal Code Section 3.32.110(B)(2)(3); B. Ratify year three of the Master Services Agreement with 11-11 Systems for iLand Secure Cloud Backup Services in the amount of $49,629.60; and
C. Approve and authorize a separate Master Services Agreement with 11-11 Systems for a Disaster Recovery as a Service (DRaaS) solution, in an amount not-to-exceed $50,410.20 for a one-year term.
Background
The Information Technology (IT) Division has enlisted the support of 11-11 Systems as a managed infrastructure solutions provider that assists customers with the modernization, protection, and management of mission-critical applications and data by leveraging the company’s cloud platform.
iLand Secure Cloud Backup Services
The iLand Secure Cloud Backup Services offered by 11-11 Systems provide enterprise-grade data protection by integrating Veeam Cloud Connect backup software with secure cloud infrastructure. Specifically, this solution ensures City data is securely backed up, easily recoverable in the event of system failure or disaster, and compliant with applicable industry regulations. In 2023, the City entered into a Master Services Agreement (MSA) with 11-11 Systems in the amount of $30,242.45 for iLand Secure Cloud Backup Services. The agreement was for a one-year term for services from May 2023 to May 2024 and included an auto-renewal clause applicable to all services. Subsequently, the MSA automatically renewed for an additional year for the period of May 2024 to May 2025 in the amount of $38,174.41. The IT Division is now requesting City Council ratify a third year of the MSA for iLand Secure Cloud Backup Services for the period of May 2025 to May 2026 in the amount of $49,629.60, as the City has continued to utilize the iLand cloud backup services. The $49,629.60 amount for services during year three of the agreement brings the total value over the lifetime of the contract to $118,046.46.
Pursuant to Vernon Municipal Code (VMC) 3.32.030 (A), Council approval is required in order to remit payment for services rendered, as the total value over the lifetime of the iLand Secure Cloud Backup MSA exceeds $100,000.
Automatic agreement renewals are not typical, as the City’s purchasing procedures dictate that contracts include ending dates and/or expenditure caps unless it is commercially unreasonable to do so. Upon learning that 11-11 Systems’ agreement renewal occurred automatically, staff prompted corrective actions be implemented by the vendor to ensure that the services no longer automatically renew moving forward. Additionally, IT staff will also utilize internal tracking measures and provide a formal cancellation notice at least thirty (30) days prior to the subscription’s expiration date of May 30, 2026. Should the City wish to continue the service beyond the expiration date, a new request for service will be issued that explicitly removes any automatic renewal provisions and includes an ending date and/or expenditure cap.
Staff is recommending that Council ratify the third year of the MSA for iLand Secure Cloud Backup and find that it is in the best interests of the City to do so pursuant to VMC 3.32.110 (B)(2)(3), as transitioning to a new provider would impose additional significant costs to the City, encumber staff time, and create potential risk to data integrity. iLand’s Secure Cloud Backup has a trusted reputation among the municipalities the company serves and offers high caliber specialized support that many generic or less experienced cloud providers do not consistently deliver.
Disaster Recovery as a Service (DRaaS)
In addition to the Secure Cloud Backup MSA, the IT Division is requesting approval to enter into a one-year MSA for 11-11 System’s DRaaS solution in the amount of $4,200.85 per month, for a total of $50,410.20.
Disaster Recovery services are a benefit to the City because they ensure the continuity of critical public services such as finance, payroll, permitting, and records management, in the event of a system outage, cyber-attack, or natural disaster. The 11-11 Systems cloud-based solution offers secure data replication and rapid system restoration and would help protect the City against ransomware and prolonged downtime while avoiding the cost and complexity of maintaining a secondary physical data center. Because the service is managed, it also supports municipalities with limited IT staffing by providing expert monitoring, testing, and recovery support. Overall, the service would strengthen the City’s operational resilience, support compliance and risk management efforts, and help maintain public trust by minimizing service disruptions. 11-11 Systems is the sole provider and developer of this software solution and, therefore, this purchase is exempt from competitive bidding pursuant to VMC Section 3.32.110(A)(2), which provides that contracts for supplies, equipment, or services available from only one vendor or for unique services are not subject to competitive bidding requirements. Pursuant to VMC Section
3.32.030(B), Council approval is required when, within the 12 months preceding the effective date of a proposed new, renewed, or amended contract, the City has paid or awarded more than $100,000.00 to the vendor.
The combined total of the Secure Cloud Backup (in the amount of $49,629.60) and Disaster Recovery Service (in the amount of $50,410.20) is $100,039.80. Each MSA with 11-11 Systems has been reviewed and approved as to form by the City Attorney.
Fiscal Impact
The fiscal impact is not to exceed $100,039.80, with sufficient funds available in the General Fund, Information Technology Division, Repairs and Maintenance Account No. 011-010-110- 529110 in Fiscal Year 2025-26 and will be budgeted in the subsequent fiscal year.
Attachments
1. 11-11 Systems Invoice INV71245295
2. 11-11 Systems Disaster Recovery Quote 00112934-149377