ITEM 4. 11
CITY MANAGER' SREPORT
APRIL 14, 2025 CITY COUNCIL REGULAR MEETING
ITEM:
RECOMMENDATION:
APPROVE BUDGET AMENDMENT TO THE
INFORMATION SYSTEMS DEPARTMENT
BUDGET TO FUND CYBERSECURITY RELATED
PURCHASES
Adopt Resolution Approving a Budget
Amendment to the Information Systems
Department Budget to Fund Cybersecurity
Related Purchases
SUMMARY:
Cybercrime poses a significant threat to the privacy and economic security of all consumers and businesses, and the connections to various cyber entities poses a significant threat to the security of our operations on a daily basis. Therefore, proactive approaches and changes to security by the Information Systems Department have been instrumental to the protection of our internet/ cyber transactions, such as email exchange, banking, web searches and downloads.
Every day the City is faced with hundreds of thousands of relentless attempts by hackers and web pirates attempting to steal financial, business, personal, or otherwise sensitive information. These relentless attempts have the potential to orchestrate massive disruptions to city business, thus causing large financial losses.
These threats can emanate from computers controlled by local, national or foreign criminals.
On March 11, 2024, the City Council approved an increase in the amount of $440, 00, to the Information Systems Department' s (ISD) budget for cybersecurity software and related subscriptions. This action by the Council marked a significant milestone in bolstering the Cities' cyber security posture. At that time, however, staff did not anticipate the increasing cost related to these purchases. Tonight' sitem is requesting additional funding to continue strengthening the City' s cybersecurity infrastructure and ensuring compliance with evolving security standards set by State and Federal governments.
Therefore, staff requests that the City Council consider adopting the proposed resolution approving a budget amendment in the amount of $ 150, 00 from the equipment replacement reserves to pay for cybersecurity related purchases that strengthen the City' s cybersecurity defenses, ensure compliance with federal cybersecurity requirements, reduce insurance costs, and position the City for future grant eligibility through adherence to NIST cybersecurity frameworks.
CITY MANAGER' SREPORT PAGE 2
APRIL 14, 2025 CITY COUNCIL REGULAR MEETING
APPROVE BUDGET AMENDMENT TO FUND CYBERSECURITY PURCHASES BACKGROUND:
Council' s
approval of a budget increase for cybersecurity software subscriptions March 11, 2024, marked a significant milestone in bolstering the Cities' cyber security posture. That amendment was specifically earmarked to cover the expenses associated with acquiring cyber security software subscriptions, essential for aligning with the rigorous standards outlined by the National Institute of Standards and Technology ( NIST). Compliance with these standards is not only mandated by the Department of Homeland Security ( DHS) and the Department of Justice ( DOJ) but also required for the City to pursue future State and Federal Grants. Additionally, adherence to NIST guidelines enables the City to maintain its cyber security insurance, thereby potentially reducing the overall cyber security insurance expenses incurred by the City. By investing in this initiative, the City demonstrates its commitment to proactive cybersecurity measures, ensuring resilience against emerging threats.
In order to be in compliance and accelerate the implementation of mandated requirements set by State and Federal agencies, the Information Systems Department made several cybersecurity software subscription purchases under the City Manager' ssigning authority. This expedited approach aligns with the urgency of meeting the rigorous compliance requirements set forth by the Department of Homeland Security ( DHS) and the Department of Justice ( DOJ). Compliance with these federal standards is essential not only to protect City systems but also to ensure eligibility for future grants. Additionally, adherence to these standards directly impacts the City' s ability to secure cyber insurance coverage, potentially reducing insurance premiums by demonstrating a robust and proactive security posture. These purchases were carried out in accordance with the Lathrop Municipal Code by soliciting multiple quotes from twelve vendors or leveraging public cooperative purchasing agreements.
Staff requests that the City Council adopt a resolution tonight to approve a budget amendment of $ 150, 00 from equipment replacement reserves to pay for cybersecurity related purchases that strengthen the City' s cybersecurity defenses, ensure compliance with federal cybersecurity requirements, reduce insurance costs, and position the City for future grant eligibility through adherence to NIST cybersecurity frameworks.
REASON FOR RECOMMENDATION:
To fund cybersecurity related purchases that ensure compliance with the requirements of the Department of Homeland Security ( DHS) and the Department of Justice ( DOJ), enhance the City' s cyber security posture, maintain cyber security insurance coverage, and potentially reduce insurance premiums.
CITY MANAGER' S REPORT PAGE 3
APRIL 14, 2025 CITY COUNCIL REGULAR MEETING
APPROVE BUDGET AMENDMENT TO FUND CYBERSECURITY PURCHASES FISCAL IMPACT:
A budget amendment in the amount of $ 150, 00 is needed in the Information Systems Department Budget under subscriptions to cover the existing shortfall and for additional cybersecurity related software and hardware purchases for the remainder of FY 24-5. Staff is requesting the following budget amendment:
Decrease Equipment Replacement Reserves
1010- 243- 0000
Increase Appropriations
1010-7- 20- 435- 10- 0
ATTACHMENTS:
150, 00
150, 00
A. Resolution Approving a Budget Amendment to the Information Systems Department Budget to Fund Cybersecurity Related Purchases CITY MANAGER' SREPORT PAGE 4
APRIL 14, 2025 CITY COUNCIL REGULAR MEETING
APPROVE BUDGET AMENDMENT TO FUND CYBERSECURITY PURCHASES APPROVALS:
eernandes Date
3- 25- 9-o2
Information Systems Director
Cari Ja - s
Finance irector
J/ 045/ 21
Date
3 • Z. Co • ZotS
Michael King Date
Assistant City Manager
Salvador Navarrete
City Attorney
3 _ Z5-- 1- DZC
Date
3-Z. to•S
Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 25 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
APPROVING A BUDGET AMENDMENT TO THE INFORMATION SYSTEMS
DEPARTMENT BUDGET TO FUND CYBERSECURITY RELATED PURCHASES WHEREAS, cybercrime poses a significant threat to the privacy and economic security of all consumers and businesses; and
WHEREAS, every day the City is faced with hundreds of thousands of relentless attempts by hackers and web pirates attempting to steal financial, business, personal, or otherwise sensitive information; and WHEREAS, these relentless attempts have the potential to orchestrate massive disruptions to city business, thus causing large financial losses; and WHEREAS, Council' sapproval of a budget increase for cybersecurity software subscriptions March 11, 2024, marked a significant milestone in bolstering the Cities' cyber security posture; and
WHEREAS, to be in compliance and accelerate the implementation of mandated requirements set by State and Federal agencies, the Information Systems Department made several cybersecurity software subscription purchases under the City Manager' ssigning authority; and
WHEREAS, these purchases were executed in accordance with the Lathrop Municipal Code by soliciting multiple quotes from twelve vendors or leveraging public cooperative purchasing agreements; and
WHEREAS, due to budgetary constraints, additional funding is required to support these critical cybersecurity investments; and
WHEREAS, staff requests that the City Council adopt a resolution to approve a budget amendment of $ 150, 00 from the equipment replacement fund.
NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Lathrop does hereby approve of the budget amendment of $ 150, 00 from the equipment replacement fund 1010- 243- 0000, to fund the cybersecurity purchases as detailed below.
Decrease Equipment Replacement Reserves
1010- 243- 0000
Increase Appropriations
1010-7- 20- 435- 10- 0
150, 00
150, 00
The foregoing resolution was passed and adopted this 14th day of April 2025, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney