Item No. 10.
| MEETING DATE: November 2, 2020 |
|
| TO: | HONORABLE MAYOR AND COUNCILMEMBERS |
| FROM: | JIM SADRO, CITY MANAGER By: Mel Shannon, Director of Finance |
| SUBJECT: | APPROVE THE CYBERSECURITY SOFTWARE SUPPORT AGREEMENT WITH NYOTRON USA |
RECOMMENDATION:
That the City Council:
A. Approve and authorize the City Manager to enter into a cybersecurity support agreement with Nyotron USA for $49,500; and
B. Approve to appropriate $32,800 from the City's available Information Technology fund balance to fund the cost of this agreement.
A. Approve and authorize the City Manager to enter into a cybersecurity support agreement with Nyotron USA for $49,500; and
B. Approve to appropriate $32,800 from the City's available Information Technology fund balance to fund the cost of this agreement.
DISCUSSION:
Staff in the City's Information Technology division continuously evaluate network security software in an effort to combat the ever increasing threat of cyberattack. After researching various software platforms and options, staff purchased Nyotron’s Paranoid security software in August 2018, which added an additional layer of protection for the City's network. Nyotron's security software offers real-time protection against cyberattack, as well as "24/7" monitoring services. The annual cost of the software license and support increases by 10 percent annually. The following is a cost summary for the next 42 months:
Staff contacted Nyotron to determine if a multi-year contract would result in potential cost savings, compared to a year to year agreement. After negotiating this option, Nyotron has offered the City a fixed annual rate of $16,400 for the next three years, plus an additional six months of service at no extra charge, if the City agrees to a multi-year agreement. If approved, this agreement would result in a projected savings of approximately $16,000 over a 42-month period as follows:
| Year 1 (current) | $16,400 |
| Year 2 | $18,040 |
| Year 3 | $19,844 |
| Year 4 | $10,914 (half of $21,828) |
| Total for 42 months | $65,198 |
Staff contacted Nyotron to determine if a multi-year contract would result in potential cost savings, compared to a year to year agreement. After negotiating this option, Nyotron has offered the City a fixed annual rate of $16,400 for the next three years, plus an additional six months of service at no extra charge, if the City agrees to a multi-year agreement. If approved, this agreement would result in a projected savings of approximately $16,000 over a 42-month period as follows:
| Year 1 (current) | $16,400 |
| Year 2 | $16,400 |
| Year 3 | $16,000 |
| Year 4 (6 months) | 0 |
| Total for 42 months | $49,200 |
FISCAL IMPACT/SOURCE OF FUNDING:
Funding for the current annual contract of $16,400 has been budgeted and approved in the fiscal year 2020-2021 Information Technology Budget (account # 165151-7431). An additional appropriation of $32,800 from the available Information Technology fund balance will be required to cover the additional cost of a multi-year agreement.
GENERAL PLAN RELEVANCE:
T. 1.9 City Operations