The City of Billings Public Works Department currently has an AMR/AMI (Automatic Meter Reading/Advanced Metering Infrastructure) system in place through Neptune Technology Group, Inc. The City's current Neptune software is hosted on a City server which is failing and Neptune is discontinuing this software in 2019. Neptune's new software which works with all the City's metering infrastructure is cloud based. Exhibit A shows Neptune's four (4) year Software as a Service (SAAS) proposal. This software system is proprietary to the Neptune AMR/AMI system. In order to change the brand of software, it would require a large investment in new hardware including meters, telemetry and computer collection devices.

Northwest Pipe Fittings, Inc. is the only authorized Neptune distributor for the market area, including Billings, for sales, service and warranty of Neptune water products and systems.

City Council may:

• Approve the proposed four (4) year contract with Neptune Technology Group and Northwest Pipe Fittings, Inc. for the Neptune software and services, or;
• Disapprove the four (4) year contract. A new server would need to be purchased to host the current software and a contract for the new software would need to be approved in 2019 before Neptune Technology Group discontinues the current software platform.

Exhibit A (attached) depicts the four (4) year pricing based on the current number of metered accounts (31,000). This number will vary from year to year based on new water connections. The Public Works Department has adequate funding in its water fund for this purchase. 

Staff recommends that Council award the contract to Northwest Pipe Fittings, Inc. for the Neptune AMR/AMI Software Hosting in the amount of:  Year 1 – $40,920; Year 2 – $49,290; Year 3 – $57,660; and Year 4 – $57,990 for a total of $205,530 for all four (4) years.