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Home My WebLink About05 APPROVAL OF CONTRACT WITH TEC-REFRESH, INC. FOR A PALO AL TO CYBERSECURITY SUITEDocusign Envelope ID: A07665AE-FOOC-47ED-8EB4-FE8E2F62191E MEETING DATE: TO: FROM: SUBJECT: 4HJJI�,/_1:" Agenda Item AGENDA REPORT Reviewed: City Manager Finance Director MARCH 17, 2026 ALDO E. SCHINDLER, CITY MANAGER JENNIFER KING, FINANCE DIRECTOR/CITY TREASURER APPROVAL OF CONTRACT WITH TEC-REFRESH, INC. FOR A PALO ALTO CYBERSECURITY SUITE The City currently uses Palo Alto Networks' firewalls to secure the perimeter city-wide data network. Palo Alto Networks is a global cybersecurity leader and offers an extensive platform of cybersecurity measures that can further enhance the City's data security environment. The proposed suite of Palo Alto cybersecurity solutions will transform the City's digital security from a reactive model into a proactive, 24/7 powerhouse. The new platform will offer the City services from an elite team of experts who actively search for threats around the clock, ensuring that essential services like emergency response and water treatment remain uninterrupted. Simultaneously, the platform will modernize how staff connect to the network, replacing clunky and unreliable hardware with a fast, cloud - based system that protects sensitive data regardless of where an employee is working. Ultimately, this investment minimizes the risk of costly cyberattacks and creates much - needed connectivity redundancy while providing a more resilient and high -performing foundation for all City operations. RECOMMENDATION: It is recommended that the City Council approve Resolution 26-13 to authorize the City Manager to execute the necessary contract documents for the Palo Alto Cybersecurity Suite with Tec-Refresh, Inc., a managed security provider of Palo Alto Networks products. FISCAL IMPACT: The proposed cybersecurity suite has a not -to -exceed amount of $1,005,980, which covers hardware, software, and services for a three-year contract term. Sufficient budget has been appropriated in the Fiscal Year 2025-2026 Information Technology Fund to support this project. Subsequent contract renewal cost is approximately $330,000 annually and will be incorporated into the annual proposed budget for the Council's consideration. CORRELATION TO THE STRATEGIC PLAN: �1 afs Docusign Envelope ID: A07665AE-FOOC-47ED-8EB4-FE8E2F62191E City Council Agenda Report Contract Approval for Palo Alto Cybersecurity Suite March 17, 2026 Page 2 This project contributes to the fulfillment of the City's Strategic Plan Goal E: Organizational Excellence and Customer Services, Strategy 5; Implement a Citywide information technology plan to prioritize technology investments and ensure that technology serves the purpose of customer services, staff efficiency, financial accountability and excellent service delivery. Specifically, this integrated suite will ensure that essential City operations remain uninterrupted, secure, and resilient against evolving digital risks. BACKGROUND AND DISCUSSION: The City's current cybersecurity posture is insufficient to defend against modern threats, particularly regarding infrastructure security, cloud integrations, remote desktop connectivity, and proactive threat monitoring and forensics. Implementing the proposed Palo Alto Cybersecurity Suite (two components) will address these vulnerabilities in several keyways: Component 1 - Cortex XDR and Unit 42: 24/7 Security Protection • Total Protection: Acts as a high-tech shield over all City computers, devices, and systems, especially 24/7 operation such as public safety. • Expert Oversight: Provides a team of elite "Unit 42" cybersecurity experts who watch over the City's network 24/7. • Proactive Defense: Instead of just reacting to problems, these experts actively search for digital threats to stop them before they cause damage. • Reliable Infrastructure: Ensures essential services like water treatment and emergency response stay online and safe from cyberattacks. Component 2 - Prisma Access and SD -WAN: Secure and Fast Connectivity • Reliable Remote Work: Fixes old remote access issues, creates connectivity redundancy by ensuring City staff can access network data securely from multiple paths and anywhere. • Data Safeguards: Acts like a digital vault, preventing sensitive City information from being accidentally leaked or accessed by unauthorized users. • Improved Performance: Uses smart technology to speed up applications and internet connections, making digital tools more responsive for employees. • Future -Ready Tech: Modernizes City systems by moving security control to the cloud, reducing the need for expensive and bulky hardware in City facilities and advancing technical readiness for artificial intelligence (AI) -driven applications. Staff have identified a Palo Alto Cybersecurity Suite contract through National Association of State Procurement Officials (NASPO) ValuePoint Program. NASPO is an organization comprised of chief procurement officials of all 50 states to promote public procurement nationally. The NASPO ValuePoint Purchasing Program facilitates the administration of the NASPO cooperative contracting groups for the benefit of state departments as well as other eligible agencies including cities and counties. The state -led procurement process ensures that NASPO ValuePoint contracts are solicited and developed for best values as well as in compliance with state government requirements, such as being competitively bid, and other Docusign Envelope ID: A07665AE-FOOC-47ED-8EB4-FE8E2F62191E City Council Agenda Report Contract Approval for Palo Alto Cybersecurity Suite March 17, 2026 Page 3 procurement rules. The State of California is a participant of the NASPO ValuePoint Program. Tustin City Code Section 1625(c) authorizes the use of regional, state or federal purchasing programs for supplies, materials, and equipment when such purchases can be more efficiently obtained or at better value. The procurement and execution of the original NASPO Master Agreement Number AR2472 was led by the State of Utah. The State of California Department of General Services joined the Utah Master Agreement via Participating Addendum Number 7-17-70-40-05, which makes the agreement available for use by California state agencies and local governments. The NASPO Master Agreement Number AR2472 offers discounts off Palo Alto's baseline prices, therefore achieving savings for the City. Palo Alto Networks primarily sells its products through authorized partners and resellers such as Tec-Refresh, which is based in Newport Beach. Tec-Refresh provides support services to other public safety agencies, such as the Orange County Sheriff's Department. Staff are requesting authorization to utilize NASPO ValuePoint Master Agreement Number AR2472, State of California Participating Addendum Number 7-17-70-40-05 for the purchase of Palo Alto Cybersecurity Suite through Tec-Refresh in the not -to -exceed amount of $1,005,980. Jennifer King Joachim Romero Finance Director/City Treasurer IT Manager Attachment: Resolution No. 26-13 Docusign Envelope ID: A07665AE-FOOC-47ED-8EB4-FE8E2F62191E RESOLUTION NO. 26-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUSTIN, CALIFORNIA AUTHORIZING USE OF THE NATIONAL ASSOCIATION OF STATE PROCUREMENT OFFICIALS (NASPO) VALUEPOINT PURCHASING PROGRAM TO PURCHASE PALO ALTO CYBERSECURITY SUITE WHEREAS, the City has a need to implement cybersecurity solutions in order to safeguard the operations of the City; and WHEREAS, Section 1625(c) of the Tustin City Code authorizes the purchase of supplies, materials or equipment through the State Department of General Services or through the County of Orange Cooperative Purchasing Program, or other government purchasing program, when such supplies, materials or equipment can be more efficiently or more cheaply obtained through such purchasing programs. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Tustin, as follows: Section 1. That in accordance with Section 1625(c) of the Tustin City Code, the City Council of the City of Tustin, California, does hereby authorize use of the National Association of State Procurement Officials (NASPO) ValuePoint Purchasing Program, Master Agreement Number AR2472, State of California Participating Addendum Number 7-17-70-40-05 to purchase Palo Alto Cybersecurity Suite, in the not -to -exceed amount of $1,005,980. Section 2. The City Manager, is hereby directed to sign and deliver all necessary requests and other documents in connection therewith and for and on behalf of the City of Tustin. APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Tustin on the 17th day of March, 2026. AUSTIN LUMBARD Mayor ATTEST: ERICA N. YASUDA City Clerk Docusign Envelope ID: A07665AE-FOOC-47ED-8EB4-FE8E2F62191E APPROVED AS TO FORM: DAVID E. KENDIG, City Attorney /MSD/ STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF TUSTIN ) I, Erica N. Yasuda, City Clerk and ex-officio Clerk of the City Council of the City of Tustin, California, do hereby certify that the whole number of the members of the City Council is five; that the above and foregoing Resolution No. 26-13 was duly and regularly passed and adopted at a regular meeting of the City Council held on the 17t" day of March, 2026 by the following vote: COUNCILMEMBER AYES: COUNCILMEMBER NOES: COUNCILMEMBER ABSTAINED: COUNCILMEMBER ABSENT: COUNCILMEMBER RECUSED: ERICA N. YASUDA City Clerk