Neptune IG_Smarter Water TransitionMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Smarter Water Transition
DATE: December 11, 2012
Dubuque
kital
All- America City
II 111!
2012
Since 2010, the City has worked with IBM on water and electricity portals providing
participants tools and information designed to empower them to make better decisions
about water and energy consumption to save money and reduce their carbon footprint.
The Smarter Water Pilot Study, a Smarter Sustainable Dubuque project, was conducted
in conjunction with the City's community -wide water meter replacement project in 2010
and 2011. It involved a wide range of partners, including IBM Research, Northern
Water Works Supply /Ferguson Group, Neptune Technology Group, A.Y. McDonald
Manufacturing, and others. The pilot was designed to test the opportunity for improved
resource conservation and financial savings through the combination of new technology
and enhanced community engagement. It included use of the Smarter Water Portal,
which provided a customer - specific, integrated view of water usage. The data was
collected hourly and transmitted daily. Usage data could be displayed in gallons, cost,
or by carbon footprint. The portal also provided leak detection and notification, historical
usage and comparative data.
More than 300 Dubuque households participated in the 12 -month pilot study, which
helped reduce water utilization by 6.6 percent and increased leak detection response
eight -fold among participants.
In early 2012, the City and IBM opened an expansion of the water portal to 4,000
additional participants (3,000 single - family households and 1,000 small business and
multi - family residential units.) To date, 475 participants have signed up for the water
portal expansion.
However, in post -pilot surveys and participant feedback, a pattern has emerged with
Smarter Water (similar to patterns we are seeing in other Smarter Cities projects), that
indicates that once leaks have been identified and responded to, and the most
inefficient of appliances has been replaced, portal users are less interested in daily
detailed information and are more interested in an update when a significant change
has occurred or opportunity has appeared.
In an effort to better match a majority of the City's water customer's need for more
direction and "alerts" of anomalies in a more simplified way, the City was presented the
opportunity to take part in a system by Neptune through Northern Water Works
Supply /Ferguson Group called "Neptune IQ." The City's new water meters, collectors
and reading system were provided by Neptune.
When paired with the City's new paperless Utility Billing initiative and on -line payment
processing, Neptune IQ would offer a water user an on -line "one stop shop" for
customers to interact with their water usage information from the same web site where
they are paying their bill. Close to 500 water customers have signed up for the
electronic billing to date.
Neptune IQ would be available to all 22,000+ water customers (regardless of their meter
size) to view their water usage and provide leak alerts. Neptune IQ leverages the City's
current investment in the Neptune meter reading database and software. It is tailored to
those customers wanting easy access to water usage and exception notification. The
customer can sign onto the system with no City staff intervention to establish a user
name and password.
Information Services Manager Chris Kohlmann recommends City Council approval to
purchase software and services for Neptune IQ with Northern Water Works
Supply /Ferguson Group and Neptune Technology for the "early adopter" discounts for a
year 1 price of $1,200. The Year 2 (starting in FY 2014) annual cost of operating and
hosting Neptune IQ would be $11,000. Subsequent years of hosting expense are
projected to increase by 10% per year.
There is no obligation as an early adopted to continue use or licensing past year 1.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Chris Kohlmann, Information Services Manager
2
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Chris Kohlmann, Information Services Manager
SUBJECT: Smarter Water Transition
DATE: December 7, 2012
Dubuque
ktatd
All- America City
11111
2012
INTRODUCTION
The purpose of this memorandum is to outline the process and pricing to add the
functionality of the Neptune IQ software to the availability of on -line water usage
information.
BACKGROUND
Since 2010 the City has worked with IBM on water and electricity portals providing
participants tools and information designed to empower them to make better decisions
about water and energy consumption to save money and reduce their carbon footprint.
The Smarter Water Pilot Study, a Smarter Sustainable Dubuque project was conducted
in conjunction with the City's community -wide water meter replacement project in 2010
and 2011. It involved a wide range of partners, including IBM Research,
NWWS /Ferguson Group, Neptune Technology Group, A.Y. McDonald Manufacturing,
and others. The pilot was designed to test the opportunity for improved resource
conservation and financial savings through the combination of new technology and
enhanced community engagement. It included use of the Smarter Water Portal, which
provided a customer - specific, integrated view of water usage. The data was collected
hourly and transmitted daily. Usage data could be displayed in gallons, cost, or by
carbon footprint. The portal also provided leak detection and notification, historical
usage and comparative data.
More than 300 Dubuque households participated in the 12 -month pilot study which
helped reduce water utilization by 6.6 percent and increased leak detection response
eight -fold among participants.
In early 2012, the City and IBM opened an expansion of the water portal to 4000
additional participants (3000 single family households and 1000 small business and
multi - family residential units.) To date a total of 475 participants have signed up for the
water portal expansion.
However, in post -pilot surveys and participant feedback, a pattern has emerged with
Smarter Water (similar to patterns we are seeing in other Smarter Cities projects)
shown in the graphic below, that indicates that once leaks have been identified and
responded to, and the most inefficient of appliances has been replaced, portal users are
less interested in daily detailed information and are more interested in an update when
a significant change has occurred or opportunity has appeared. The distribution is
hypothesized to follow a normal bell curve distribution.
DISCUSSION
High engagement interest
want more data, Tess
direction
Medium engagement
interest want more
direction, Tess data
Low interest want better
defaults, based on data
exceptions and anomolies
In our efforts to better match a majority of the City's water customer's need for more
direction and "alerts" of anomalies in a more simplified way, the City was presented the
opportunity to take part in a system by Neptune through NWWS /Ferguson Group called
"Neptune IQ." I have attached a letter and presentation provided by Mr. Kim Foster,
Meter Division Manager of NWWS /Ferguson Group explaining Neptune IQ and their
pricing offer. (As you may recall, the City's new water meters, collectors and on -line
reading system are provided by Neptune. Contract for the Neptune meters, collectors
and reading system were awarded as part of a competitive bid process done in 2009.)
When paired with the City's new paperless Utility Billing initiative and on -line payment
processing, Neptune IQ would offer a water user an on -line "one stop shop" for
customers to interact with their water usage information from the same web site where
they are paying their bill. Close to 500 water customers have signed up for the
electronic billing to date.
Neptune IQ would be available to all 22,000+ water customers (regardless of their meter
size) to view their water usage and provide leak alerts. Neptune IQ leverages the City's
current investment in the Neptune meter reading database and software. It is tailored to
those customers wanting easy access to water usage and exception notification. The
Neptune IQ system allows property owners with multiple properties such as landlords
and property managers the ability to group properties with a single sign -on.
The customer and staff share a need for a common operational view of water data. The
Neptune IQ system has a web -based administration component allowing Utility Billing
staff simplified access to more detailed data views and a data view that's "in sync" with
what the customer is viewing on -line. The Neptune N_SIGHT IQ software "bolts on" to
the existing AMI software and "marries" well in our billing and water use environment
and integrations. The software leverages the advanced data of the R450 water meter
reading system and is a supported, hosted solution with no limitations on size of the
database and requires no additional City investment in on premise hardware or
software.
The Neptune IQ system is "self- subscribing" meaning City staff intervention is not
required to set up a username or password.
It is recommended the City implement the Neptune IQ system. Staffs involved in the
discussion and review of Neptune IQ included Finance, Utility Billing, Water, Public
Information and Information Services who concur with the recommendation. The
proposed plan would be to run Neptune IQ simultaneously with the remainder of the
IBM Smarter Water project (through June 30, 2013). By June 30, 2013 a decision will
need to be made on the future of the Smarter Water portal.
BUDGET IMPACT
The "Year 1" pricing for Neptune IQ is $1200. The Year 2 (starting in FY 2014) annual
cost of operating and hosting Neptune IQ would be $11,000. Subsequent years of
hosting expense are projected to increase by 10% per year. The City is being offered a
significant discount as an early adopter of this software. Proposal is attached. Water
Department Manager Bob Green indicates funds are available to cover the Year 1
expense from CIP 7402314 -73211 "Automated Meter Reading System Maintenance
Program."
The early adopter discount is available until December 31, 2012 and has been available
to the City since August 2012. The savings are in Year 1 as an early adopter result from
no charges for IQ Base License, development of the web portal, implementation, setup,
training or base loading of data and the City would receive a substantial discount on the
first year of web hosting. Total savings is $59,300 plus the advantages presented in this
memo.
The cost summary as an early adopter (assumes Jan 1, 2013 start) :
Year 1 (Jan 1, 2013 - Dec 31, 2013) setup, maintenance and hosting $1200
Year 2 (Jan 1, 2014 - Dec 31, 2014) maintenance and hosting $11,000
Year 3 ((Jan 1, 2015 - Dec 31, 2015) maintenance and hosting $12,100 (projected)
Year 4 (Jan 1, 2016 - Dec 31, 2016) maintenance and hosting $13,310 (projected)
Year 5 (Jan 1, 2017 - Dec 31, 2017) maintenance and hosting $14,641 (projected)
Cost without accepting early adopter (assumes Jul 1 fiscal year start)
Year 1 (Jul 1, 2013 - Jun 30, 2014)setup, maintenance and hosting $60,500
Year 2 (Jul 1, 2014 - Jun 30, 2015) maintenance and hosting $11,000
Year 3 (Jul 1, 2015 - Jun 30, 2016) maintenance and hosting $12,100 (projected)
Year 4 (Jul 1, 2016 - Jun 30, 2017) maintenance and hosting $13,310 (projected)
Year 5 (Jul 1, 2017 - Jun 30, 2018) maintenance and hosting $14,641 (projected)
There is no obligation as an early adopter to continue use or licensing past year 1. In
other words if the solution doesn't deliver as promised we are under no obligation like
other living lab projects to continue use past the initial term.
Assuming there will be a positive experience with the Neptune IQ solution, I would
recommend the annual maintenance be presented as an improvement item for the
FY2014 budget as it wouldn't be invoiced until December 2013.
REQUESTED ACTION
The goal of the research initiatives of Smarter Sustainable Dubuque is to continue to
identify the options that provide the (a) highest sustainability returns; (b) at the lowest
possible operating costs; (c) while engaging the highest possible percentage of citizens.
I am requesting your approval of the proposed purchase of software and services for
Neptune IQ with NWWS /Ferguson Group and Neptune Technology with referenced
"early adopter" discounts.
Please let me know if there are further questions or if further follow -up is required.
Cc: David Lyons, Smarter Sustainable Dubuque Project Manager
Cori Burbach, Sustainability Coordinator
Randy Gehl, Public Information Officer
Bob Green, Water Plant Manager
Ken Tekippe, Finance Director
Jenny Larson, Budget Director
Joe Pregler, Lead Applications /Network Administrator
Rose Hoerner, Utility Billing Supervisor
FERGUSON' 61
rff waterworks
August 27, 2012
City of Dubuque
50 West 13th Street
Dubuque, IA 52001
Attention: Chris Kohlmann
Subject: Neptune IQ
Dear Chris
Ferguson Waterworks and Neptune are pleased to offer the City of Dubuque an opportunity to beta a
new software package that will "bolt on" to your existing AMI software. This will allow all customers to
have access to their meter reading data for their own research. This offer falls in line with the City's
vision for excellence and customer service.
The Neptune IQ is designed for the Utility that is interested in engaging their customers' in efforts to be
responsible about water usage and conservation. This also is the next practical step in data collection
for customer awareness.
Ferguson Waterworks (formerly Northern Water Works Supply) has been doing business with the City of
Dubuque replacing all of the water meters. We were selected as the prime contractor to furnish and
install the meters. Our project was to install 22,500 meters in an 18 month time period. We finished on
time and under budget. Our installation group had virtually no complaints for the work that we did.
The Neptune IQ software is being brought to the market as an additional offering to allow customers
access to their meter readings. The customer will be able to actually see any conditions that the water
meter register has detected. The following graph shows a leak that has been detected and is
represented to the owner. It also shows that the customer has fixed the leak and consumption goes
back to normal usage. The residential customer or commercial account will have access to their
information with a secure connection. Apartment owners will be able to group all of their apartments
together so they can look at all of them with one log on.
1917 First Avenue North 1201 Airport Road 1694 91St Avenue NE 331 4th Avenue South 1720 State Street 5555 Irish Lane
Fargo, ND 58102 Bismarck, ND 58501 Blaine, MN 55449 Sartell, MN 56377 DeKalb, IL 60115 -2617 Madison, WI 53711
701 - 293 -5511 701 - 258 -9700 763 - 560 -5200 320 - 229 -0125 815 - 756 -2800 608 - 217 -1770
Fax: 701-232-8129 Fax: 701-258-1452 Fax: 763-560-1799 Fax: 320-229-0128 Fax: 815-756-2877 Fax: 608-271-5263
An Equal Opportunity Employer
FERGUSON®
riff Waterworks
Save Usage Data: Microsoft Excel
Adobe Acrobat (.PDF)
Comma Separated (CSV)
Display Format: Table 1 Graph
mu a: 1 ow:, (deter Class:
E -Coder Intermittent
Leak Alert triggered
E -Coder Continuous
Leak Alert triggered
Feb 02 Feb 03
Preipitatian ■ Temperature
Jan 30 Jan 31 Feb Feb 02 Feb 03 Feb 04 Feb 05
E -Coder Intermittent
Leak Alert triggered
I
The access to this information will improve awareness to water conservation and will also allow the
customer to watch over their own usage. The reliability of the meter information is directly from the
existing AMI software that the City has been using since the meters were installed.
1917 First Avenue North 1201 Airport Road 1694 91St Avenue NE 331 4th Avenue South 1720 State Street 5555 Irish Lane
Fargo, ND 58102 Bismarck, ND 58501 Blaine, MN 55449 Sartell, MN 56377 DeKalb, IL 60115 -2617 Madison, WI 53711
701 - 293 -5511 701 - 258 -9700 763- 560 -5200 320 - 229 -0125 815 - 756 -2800 608 - 217 -1770
Fax: 701-232-8129 Fax: 701-258-1452 Fax: 763-560-1799 Fax: 320-229-0128 Fax: 815-756-2877 Fax: 608-271-5263
An Equal Opportunity Employer
FERGUSON' 61
rff waterworks
When the Neptune IQ software is released to the current customer they will be paying from the list
price column.
IQ Base License
Web Portal Option
Implementation &
Setup
Training
Base Loading of Data
( January 2012 to
Present)
1st 6 months of
hosting
2nd 6 months of
hosting
Total Cost
List Price Dubuque Pricing
$31,500
$ 0.00
$10,500 $0.00
$3,000
$ 0.00
$1,000 $0.00
$3,500
$ 0.00
$ 0.00
$ 1,200.00
$49,500 $ 1200.00
The above pricing will be extended to the City of Dubuque until the end of December 2012.
1917 First Avenue North 1201 Airport Road 1694 91St Avenue NE 331 4th Avenue South 1720 State Street 5555 Irish Lane
Fargo, ND 58102 Bismarck, ND 58501 Blaine, MN 55449 Sartell, MN 56377 DeKalb, IL 60115 -2617 Madison, WI 53711
701 - 293 -5511 701 - 258 -9700 763 - 560 -5200 320 - 229 -0125 815 - 756 -2800 608 - 217 -1770
Fax: 701-232-8129 Fax: 701-258-1452 Fax: 763-560-1799 Fax: 320-229-0128 Fax: 815-756-2877 Fax: 608-271-5263
An Equal Opportunity Employer
trf FERGUSON®
rff water -works
Ongoing maintenance and hosting pricing after the beta has been completed.
Annually Monthly
Base Hosting & Maintenance
$8,000.00
$675.00
Web Portal Hosting & $3,000.00 $256.00
Maintenance
Total Maintenance
$11,000.00
$931.00
One of Neptune's interest in having the City of Dubuque as Neptune's beta site is the competency of the
staff and the engagement of the residents. In turnkey meter projects that I have been involved with,
when comparing Dubuque staff and residents, I have found the Dubuque staff and residents more
competent and engaged in the project from start to finish.
We have used the City of Dubuque to pilot many of the Neptune early release software versions as we
have learned that we get great support and feedback from the staff.
This again is an opportunity to beta new concept software with Neptune underwriting the majority of
the costs and gain valuable insight to customer's patterns of water usage and assist in detecting
customer premise problems. In the past when we have customers' trial new software there are many
opportunities to share the experience with other Municipal Officials at trade meetings and National
shows when they occur. These opportunities allow the City Officials to provide an insight to Dubuque's
evolution in the water conservation effort.
We respectfully hope that this opportunity sounds exciting enough to take advantage of the offer from
Neptune. Please let me know if you have any other questions.
Sincerely,
Kim Foster
27/08/12 22:21 -05:00
I am the author of the documE
Mr. Kim Foster
Meter Division Manager
Ferguson Waterworks
oil
1917 First Avenue North 1201 Airport Road 1694 91St Avenue NE 331 4th Avenue South 1720 State Street 5555 Irish Lane
Fargo, ND 58102 Bismarck, ND 58501 Blaine, MN 55449 Sartell, MN 56377 DeKalb, IL 60115 -2617 Madison, WI 53711
701 - 293 -5511 701 - 258 -9700 763 - 560 -5200 320 - 229 -0125 815 - 756 -2800 608 - 217 -1770
Fax: 701-232-8129 Fax: 701-258-1452 Fax: 763-560-1799 Fax: 320-229-0128 Fax: 815-756-2877 Fax: 608-271-5263
An Equal Opportunity Employer