Cities Index.
Item 4 Staff Report

Palo Alto City Council
March 23, 2026

Document
Item 4 Staff Report
Meeting
March 23, 2026
Body
Palo Alto City Council
Original file
1.6 MB
Text extracted from the city's file for reading and search. Open the original on cityofpaloalto.primegov.com. That file is the official record.

City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: March 23, 2026
Report #:2602-5970
TITLE
Approval of Purchase Order C26196995 with Insight Public Sector, Utilizing OMNIA Cooperative Contract No. 23-6692-031, to Procure Mimecast Subscription services, including vendor maintenance, updates, and technical support services, for a 3-Year Term with an Annual Amount of $93,383 for a Total Not-To-Exceed Amount of $281,093; CEQA status - exempt under regulation 15601(b)(3).

RECOMMENDATION
Staff recommends that City Council approve and authorize the City Manager or designee execute Purchase Order C26196995 with Insight Public Sector, utilizing the above-noted OMNIA Cooperative Contract No. 23-6692-03, to procure Mimecast Subscription Services for a 3-year term (March 27, 2026 to March 26, 2029) with an annual amount of $93,383 and a total not-to- exceed amount of $281,093 (Attachment A).

BACKGROUND
The City uses Mimecast services for all inbound and outbound email security, email archiving, email Public Records Act (PRA) requests, and Secure email messaging as part of an integrated hosted solution for securing the city’s email content. City started utilizing Mimecast subscription services through Insight Public Sector using the OMNIA Partners cooperative contract with the initial coverage period beginning January 4, 2024, and ending January 4, 2025.

During the initial term, the City expanded Mimecast services to include email archiving, large file send, and related capabilities, with coverage from July 31, 2024, through March 26, 2025.

The City renewed Mimecast for the current coverage period of March 27, 2025, through March 26, 2026. Staff now recommend continuing Mimecast subscription and support under the same OMNIA cooperative contract for a three-year term beginning March 27, 2026, and 1 Insight Public Sector Contract Documentation: https://www.omniapartners.com/suppliers/insight-public- sector/public-sector/contract-documents#c7094

ending March 26, 2029; the current quote reflects this three-year commitment and the corresponding annual coverage periods within that term.

ANALYSIS
Staff recommend continuing with Mimecast to ensure uninterrupted citywide email security, email archiving, and discovery search capabilities that are essential to daily operations and compliance with the PRA requests. Mimecast provides a reliable, integrated platform that protects the City’s email environment from cyber threats while preserving and indexing email records for efficient legal discovery and public records responses.

Maintaining a single, integrated solution is the most efficient and cost-effective approach.

Mimecast consolidates security, archiving, and search into one platform, reducing complexity and minimizing administrative overhead. Discontinuing Mimecast would require the City to procure and manage multiple separate products to replicate the same functionality. This would increase overall costs, create additional contract and vendor management burdens, require new system integrations, and introduce operational and compliance risk during transition and implementation.

Procuring Mimecast through Insight Public Sector under the OMNIA Partners cooperative contract leverages competitively solicited cooperative pricing. The proposed three-year commitment provides predictable, stable pricing and supports long-term budget planning. The annual costs are as follows:
Year 1: $94,327
Year 2: $93,383
Year 3: $93,383
Year 1 includes a one-time configuration assistance service reflected in Attachment A. Years 2 and 3 reflect only recurring subscription costs. This structure ensures cost stability for the term of March 27, 2026, through March 26, 2029, while maintaining critical cybersecurity protections and compliance capabilities for the City.

FISCAL/RESOURCE IMPACT
Funding for Year 1 in the amount of $94,3267 has already been appropriated through the City’s annual budget process. Funding for Years 2 and 3 will be reviewed and considered as part of future budget development cycles.

The Information Technology Department (ITD) is supported through an internal service fund model. Approximately 49% of ITD’s costs are funded by the General Fund, with the remaining 51% supported by enterprise and special revenue funds.

STAKEHOLDER ENGAGEMENT
The services were coordinated with internal stakeholders and the service provider.

ENVIRONMENTAL REVIEW
The approval of this contract is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(b)(3).

ATTACHMENTS
Attachment A: Insight Public Sector Quote No. 0229159183 APPROVED BY:

Darren Numoto, Chief Information Officer; Lisa Bolger, Assistant Director Information Technology/CTO

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