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Home My WebLink AboutStaff Report 2603-6149CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, May 11, 2026 Council Chambers & Hybrid 4:30 PM Agenda Item 5.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. 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. 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. 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. The approval of this contract is exempt from review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15061(b)(3). Attachment A: Solutions Simplified Quote no. 14505 for Zscaler : Darren Numoto, Chief Information Officer; Lisa Bolger, Assistant Director Information Technology/CTO Solutions Simplified 3626 Fair Oaks Blvd. Suite 100 Sacramento, CA 95864 www.solutionssimplified.net Date: A Certified Women-Owned Business Quote #: Valid Until: Prepared By: Hanna Medina FEIN:47-5088841 Phone: 530-908-1171 Seller's Permit:102-806808 Fax: 916-244-0351 DUNS:80004788 Email: hanna.medina@solutionssimplified.net CAGE:7GNN0 CUSTOMER Parag Kumar Delivery:Electronic City of Palo Alto FOB:Destination, Freight PPD 250 Hamliton Ave 2nd Floor Payment Terms:Net 45 Palo Alto, CA 94301 USA Contract #:SLP-25-70-0181H parag.kumar@paloalto.gov (650) 329-2626 ITEM #PART #DESCRIPTION QTY UNIT PRICE EXT PRICE TAXED 1 ZIA-BIZ-EDITION 750 $46.50 $34,875.00 N 2 ZPA-BIZ-EDITION 750 $75.68 $56,760.00 N 3 ZCES-SUP-ESS 1 $18,327.00 $18,327.00 N $109,962.00 4 ZIA-BIZ-EDITION 750 $46.50 $34,875.00 N 5 ZPA-BIZ-EDITION 750 $75.68 $56,760.00 N 6 ZCES-SUP-ESS 1 $18,327.00 $18,327.00 N $109,962.00 ZIA Business EditionZscaler, Inc - ZIA-BIZ-EDITION ZPA Business EditionZscaler, Inc - ZPA-BIZ-EDITION Annual Zscaler Support Essentials (20% of List Price) 24/7 support. The published $0.20 price is not the Customer's final price. The purchase price of the software maintenance is based on a Commercial List Price that is 20.0% of the price you paid for thZscaler, Inc - ZCES-SUP-ESS ZIA Business EditionZscaler, Inc - ZIA-BIZ-EDITION ZPA Business EditionZscaler, Inc - ZPA-BIZ-EDITION Annual Zscaler Support Essentials (20% of List Price) 24/7 support. The published $0.20 price is not the Customer's final price. The purchase price of the software maintenance is based on a Commercial List Price that is 20.0% of the price you paid for thZscaler, Inc - ZCES-SUP-ESS Year One Subtotal: Year Two Term: 07/31/2027 - 07/30/2028 Year Two Subtotal: QUOTE 3/5/26 14505 7/30/26 Year One Term: 07/31/2026 - 07/30/2027 7 ZIA-BIZ-EDITION 750 $46.50 $34,875.00 N 8 ZPA-BIZ-EDITION 750 $75.68 $56,760.00 N 9 ZCES-SUP-ESS 1 $18,327.00 $18,327.00 N $109,962.00 Subtotal $329,886.00 NOTES:Tax Rate 8.75% 1. This quote is valid for 30 days from original quote date Tax $0.00 unless otherwise specified above.Total $329,886.00 2. We accept Purchase Order, Visa, Mastercard, & AMEX. 3. Orders placed on a credit card are subject to a 3% fee. THANK YOU FOR YOUR BUSINESS! Please contact us if you have any questions or need further information. 4. Our product return window is 30 days from receipt of order. There are no returns / refunds on software ZIA Business EditionZscaler, Inc - ZIA-BIZ-EDITION ZPA Business EditionZscaler, Inc - ZPA-BIZ-EDITION Annual Zscaler Support Essentials (20% of List Price) 24/7 support. The published $0.20 price is not the Customer's final price. The purchase price of the software maintenance is based on a Commercial List Price that is 20.0% of the price you paid for thZscaler, Inc - ZCES-SUP-ESS Year Three Term: 07/31/2028 - 07/30/2029 Year Three Subtotal: Renewal Term: July 31, 2026 - July 30, 2029 This is a 3-year non-cancellable term with an annual payment structure. The customer agrees that all payments will be paid in a timely manner based on the payment schedule below. Installment Payments: All payments are due NET 30 from their respective invoice date. Customer will pay Carahsoft the Total amount of this quote; in the following installments: Payment 1: $109,962.00 due NET 30 from the invoice date Payment 2: $109,962.00 will be invoiced 1 year from the original purchase date and due NET 30 Payment 3: $109,962.00 will be invoiced 2 years from the original purchase date and due NET 30 The total amount and payments due herein are separate from, and in addition to, any payments due in connection with any other Carahsoft transaction. Failure to pay any installment in a timely fashion will result in all remaining payments to become immediately due. Any fees paid will be non-refundable. For U.S. Government Resellers, such Resellers agree to obtain End User Customer’s acceptance of Zscaler’ s end user subscription agreement (EUSA) by either (1) obtaining End User Customer’s signature on a hard copy of the EUSA; (2) ensuring the EUSA link at:https://www.zscaler.com/legal/end-user-subscription-agreement-us-government-customersis included in the End User Customer’s final binding purchase order to Reseller; or (3) attaching the EUSA as an exhibit to Reseller’s final binding contract/order with End User Customer for the Zscaler Products.In addition to the EUSA, Zscaler's Deployment Services or Professional Services shall be governed by the terms at https://www.zscaler.com/resources/legal/deployment-and-ps-terms.pdfIf Resident Engineer services are purchased as part of this quote, those services are billed infull upfront.All subscriptions purchased herein are non- cancellableSFP (small form-factor pluggable) devices are NOT part of private service edges sku or offering and need to be ordered by Reseller