TOWN STAFF REPORT RECCOMENDATIONS
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Consider approving Resolution 23-55 authorizing the Town Manager to extend the licensing of the current network security hardware for two additional months at a total cost of $11,467.94; and to lease network security equipment, licensing, software, services, maintenance, and support in an amount not to exceed $80,000 per year for 3 years; and take appropriate action. (Jason Power, Director of Information Technology)
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STAFF: Jason Power, Director of Information Technology
BACKGROUND:
Licensing for our current network security hardware expires on November 30, 2023. The network security hardware, software and services will not function without active licensing, and without these our internal and external network services at Westlake Academy, Town Hall, Fire Station, and Maintenance Building (including but not limited to: SCADA, internet, utility billing, records access, telephone services, paging system, and security cameras) will not function or not be accessible.
In September 2025, Staff recommended leasing (2) network security appliances, including three years of coverage for licensing, software, services, maintenance, and support, with procurement in early October, after the start of FY24/25. This would have given us two months to receive the hardware, and set up and test it, with a planned cutover to the new hardware on or before the expiration of the current hardware on November 30, 2023.
At the October 10, 2023, meeting, Council asked Staff to consult with Inspira Enterprises for their recommendation to either move forward with renewing the current hardware for another year, or lease new hardware for three years, including licensing, software, services, maintenance and support. Staff met with Inspira four times in October to discuss our current network security hardware setup and options that they would recommend for the Town’s network security hardware going forward.
Inspira recommends moving forward with leasing new hardware for three years, including licensing, software, services, maintenance, and support. Due to the limited amount of time now available to move to new hardware before the expiration of licensing for our current hardware, Inspira recommends renewing coverage of the current hardware for two months (December 2023, January 2024). This will give us time to set up a three-year lease for the new hardware, receive the hardware, and set up and test it, with a planned cutover to the new hardware on January 31, 2024.
The monthly renewal cost for December 2023 and January 2024 will be $5,733.97 per month, $11,467.94 total.
The total for the new hardware, including licensing, software, services, maintenance, and support is $223,662.53. The estimated FMV lease cost for a 3-year lease is $80,000 per year for an estimated total lease cost of $240,000. We will not be charged any administrative fees, end of lease fees or deposits. The hardware will be sent to the leasing company at the end of the lease period, with no credits or refunds given. Utilizing a lease allows the option to pay for the purchase over 3 years instead of the entire purchase up front.
Network Security Appliances are commonly referred to as “firewalls”, but they do much more than block specified incoming or outgoing traffic. These devices provide real-time inspection and monitoring all incoming and outgoing traffic at Westlake Academy, Town Hall, Fire Station, and Maintenance building by integrating with all devices on our network (switches, routers, wireless access points, computers, tablets, phones, etc.) and checking all that information against known vulnerabilities and any activity that could lead to a vulnerability. The security services included cover Web Security (web filtering), Content Security (file-based threats and attacks like ransomware and viruses), and Device Security (intrusion prevention, attacks on devices like ransomware and viruses). We will install one network security appliance our EOC at the fire station and the other at Westlake Academy to serve as a failover/backup device where we also have a backup internet connection, allowing continuity of services provided to Westlake Academy students and staff, as well as municipal staff and Westlake citizens and stakeholders.
FISCAL IMPACT:
FY24/25 - $91,467.94 - 2-month extension of current lease $5,733.97 per month, $11,467.94 total; 3-year lease agreement - first year payment approximately $80,000.
FY25/26 - 3-year lease agreement - second year lease payment approximately $80,000.
FY26/27 - 3-year lease agreement - third year lease payment approximately $80,000.
STAFF RECOMMENDATION:
Staff agrees with Inspira’s recommendation for Council to approve the extension of the current licensing for two additional months; and the lease of the network security hardware, software, and services with a 3-year lease agreement.
ATTACHMENT(S):
1) Resolution 23-55
2) General Data Tech quotes for hardware, licensing, software, services, maintenance and support.
3) Justification email from Tim Sanouvong, Inspira Enterprises
TOWN COUNCIL ACTION/OPTIONS:
1) Motion to approve
2) Motion to amend with the following stipulations (please state stipulations in motion)
3) Motion to table
4) Motion to deny