Exhibit 1 - Agenda Information SheetCity of Denton
_____________________________________________________________________________________
AGENDA INFORMATION SHEET
DEPARTMENT: Procurement & Compliance
ACM: David Gaines
DATE: September 1, 2020
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the City Manager to execute a contract extension between the City of Denton and Exceleron
Software, LLC, through September 9, 2025, to continue to provide prepaid utilities services to customers
of the City of Denton; and declaring an effective date (File 5346 – extending a contract with Exceleron
Software, LLC, to September 9, 2025). The Public Utilities Board recommends approval (7 - 0).
INFORMATION/BACKGROUND
On June 11, 2013, staff recommended a strategy to the City Council for pursuing a prepaid utilities solution,
“Pay as you go.” Rather than establishing utilities service, waiting for a bill, and attempting to make payment
prior to a utility enforced due date, prepaid customers are afforded the opportunity of prepaying the amount of
utilities they feel will be used. Instead of receiving a bill, prepaid customers monitor their own utilities usage,
and when they observe that their payment is almost exhausted, they remit another prepayment.
Implementation of the prepaid program began in 2014 and on October 1, 2018, City of Denton launched its live
pilot of the program. After a successful pilot, the program had a soft launch in February 2019 and a public launch
in May 2019. Since the program went live within the last year of the current agreement only an amendment for
length of time is required to continue services. Currently, the program has more than 575 customers and has
refunded or avoided over $225,000 in deposits without increasing debt risks.
Presentment of usage trends, payments, and credit balances allows utility customers to effectively manage their
account. This information is readily available for customers to retrieve via the internet, mobile telephone, or by
calling a toll-free number. In addition, prepaid customers can elect to have customized notifications sent to them
through text messaging, email, or automated telephone calls to alert them when their prepaid balance is low.
The City’s utilities benefit through improved cash flows, improved debt recovery, and reduced mailing and
collection costs.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On September 9, 2014, City Council approved a contract with Exceleron Software, LLC, in the not-to-
exceed amount of $1,100,000 (Ordinance 2014-267).
On August 24, 2020, the Public Utilities Board (PUB) recommended this item to the City Council for
consideration.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
RECOMMENDATION
Award Amendment No. 1 with Exceleron Software, LLC, to continue to provide prepaid utilities services
to customers of the City of Denton, for a contract extension through September 9, 2025.
PRINCIPAL PLACE OF BUSINESS
Exceleron Software LLC
Dallas, TX
ESTIMATED SCHEDULE OF PROJECT
This is a five (5) year contract.
FISCAL INFORMATION
The services are funded through the department budget. Monthly program costs are collected from the customer
and the City will only pay for services based on the number of enrolled participants and is not obligated to pay
the full contract amount unless needed.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: LLC Members
Exhibit 4: Ordinance and Amendment
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Christa Foster, 940-349-7412.
Legal point of contact: Mack Reinwand at 940-349-8333.