City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: IT Department
Meeting Date: May 11, 2026
Report #:2603-6149
TITLE
Approval of Issuing Purchase Order C27197248 with Solutions Simplified, Utilizing a State of California Department of General Services Software Licensing Program Contract SLP-25-70- 0181H, to Procure Zscaler Software Maintenance and Support for a Three-Year Term for a Total Not-To-Exceed Amount of $329,886; CEQA Status - Not a Project.
RECOMMENDATION
Staff recommends that City Council approve and authorize the City Manager or their designee execute Purchase Order C27197248 with Solutions Simplified, utilizing the above-noted SLP-25- 70-0181H1 contract, to procure Zscaler software maintenance and support for a three-year term (July 31, 2026 to July 30, 2029) with an annual amount of $109,962 and a total not-to- exceed amount of $329,886.
BACKGROUND
The City implemented the Zscaler cloud security platform on July 31, 2023 as part of ongoing efforts to strengthen cybersecurity and modernize remote access. Zscaler provides a cloud- based Zero Trust model that helps protect City systems and data by securing access to the internet, cloud services, and internal applications, while supporting a hybrid workforce.
Zscaler replaces traditional VPN-based remote access with application-level access, reducing exposure of the City’s internal network and improving security and performance for staff. As the City’s current subscription term approaches expiration, staff is recommending a three-year renewal to maintain day-to-day operations and cyber risk management.
1 State of California Software Licensing Program (SLP):
https://caleprocure.ca.gov/PSRelay/ZZ_PO.ZZ_CTR_SUP_CMP.GBL?Page=ZZ_CTR_SUP_PG&Action=U&SETID=STAT E&CNTRCT_ID=SLP-25-70-0181H
ANALYSIS
Approving this quote and issuing a purchase order will allow the City to continue using Zscaler’s Zero Trust cloud security platform without interruption for the period July 31, 2026 through July 30, 2029. Continuity of this service is critical to protecting City users and systems from evolving cyber threats, securing access to internet and SaaS applications (including Microsoft 365), and enabling reliable, secure access to internal applications for staff working on-site and remotely. A lapse in software maintenance and support could reduce the City’s ability to respond to security events, apply updates, and maintain stable connectivity for business applications.
This procurement leverages cooperative contract SLP-25-70-0181H, under which the California Department of General Services (DGS) conducted a competitive solicitation and awarded Solutions Simplified as an approved vendor, allowing eligible public agencies to use the competitively solicited terms. The vendor offered a flat annual rate of $109,962 with no annual escalation, for a total not-to-exceed amount of $329,886 over three years. In addition to utilizing cooperative pricing, City staff negotiated below the cooperative contract price sheet rates, generating additional cost savings while maintaining the required maintenance and support coverage.
FISCAL/RESOURCE IMPACT
The costs are expected to occur in FY 2027. Funding for this contract will be included in the FY 2027 annual budget development base budget process, subject to City Council approval consistent with how multi-year technology support contracts are funded in future years. 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
Staff coordinated with internal City stakeholders to confirm the renewal scope aligns with Citywide cybersecurity and operational requirements. Staff also worked closely with the vendor on the renewal quote to validate licensing needs, confirm service expectations, and ensure continued support for secure access to City applications and services.
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: Solutions Simplified Quote no. 14505 for Zscaler APPROVED BY:
Darren Numoto, Chief Information Officer; Lisa Bolger, Assistant Director Information Technology/CTO