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HomeMy WebLinkAbout12-02-2014 B3 Mattinglyap Council Memorandum DATE:. December 2, 2014 TO: Mayor and City Council FROM: Carrie Mattingly, Utilities Director VIA: Katie Lichtig, City Manager Fll i^CEl:VED DEC 02 2014 TY CLERK COUNCIL MEETING: �Z- -C Lox ITEM NO.: C93 SUBJECT: Item B3 - Award of Contract for Water Meter Reading/Establish a Drought - Related Policy Staff received the following questions regarding Item B3, Award of Contract for Water Meter Reading /Establish a Drought - Related Policy, the answers to which are being distributed as supplemental information to the Council and the public. 1. Q: The contract prevents the contractor from using or disclosing the customer data in any way except in performance of the services in Section 2.5.5. What remedies would be used if this clause is breached? What if the data this contractor obtains is "hacked" or stolen by a third party? Can the City pursue damages on behalf of the violation of the privacy of our customers? A: If the contractor disclosed any confidential data then the City would seek an immediate injunction to prohibit any further dissemination of the information and to order such information returned to the City. In addition, the City would seek monetary damages although calculating these damages in this context is sometimes difficult. If any customer suffered damages as a result of such a disclosure, then the contractor would be required to indemnify the City for such claims. If the information was "stolen" by a third party (i.e. computer system was hacked) the City would still seek an immediate injunction, however, tracking down the information may be more difficult than a first party disclosure. In addition, if the successful hacking was a result of the contractor's negligence (i.e. by not using the proper standard of care), the City would have the ability to seek monetary damages against the contractor. 2. Q: Do we have provisions in this contract to obtain a performance bond from this firm that will enable us speedily to transfer the meter reading and billing to another contractor, or to city staff, in the event of a failure of this firm to perform for any reason (including, for example, bankruptcy)? A: Yes, the City's Request for Proposal requires a performance bond in the amount of 6 months of the annual contract price. The terms of the RFP are incorporated into the Agreement per Section 2. 3. Q: Does the contract permit us to specify the particular week or weeks in any given month that the meter reading and billing are performed? A: Yes, the scope of services allows the City to designate when meters are read and the City intends on working closely with the Contractor to establish the best reading date range to establish consistent billing. Rate payers will receive the City's invoice around the same date each month addressing previous customer concerns, especially rate payers on fixed incomes.