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Exhibit 1 - Agenda Information SheetCity of Denton _____________________________________________________________________________________ AGENDA INFORMATION SHEET DEPARTMENT: Procurement ACM: Christine Taylor DATE: November 18, 2025 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 with Exceleron Software, LLC., for a prepaid utilities solution for the Customer Service Department, which is the sole provider of this software, in accordance with Texas Local Government Code 252.022, which provides that procurement of commodities and services that are available from one source are exempt from competitive bidding, and if over $50,000, shall be awarded by the governing body; providing for the expenditure of funds therefor; and providing an effective date (File 8923 – awarded to Exceleron Software, LLC., through September 30, 2038, in the not-to-exceed amount of $15,460,605.23). The Public Utilities Board recommends approval (5 - 0). STRATEGIC ALIGNMENT This action supports Key Focus Area: Strengthen Community and Quality of Life. INFORMATION/BACKGROUND The purpose of this agenda item is to request Council’s approval for expenses to continue offering customers prepaid utility services with Exceleron Software, LLC. Customer Service began offering prepaid utility services to customers in October 2018. The program provides customers with some of the following values: - Daily usage and cost information, which can be used to better plan utility expenses - Reduction of arrears utility charges or large final bills - Flexibility in payment dates - No payment penalty fees - No deposit requirements - Debt recovery option - Balance and usage alert options via email, text, or SMS The City of Denton entered a three (3) year contract with a not-to-exceed amount of $1,000,000 in August 2014. As a result of complex integrations with the billing and electric AMI systems, Technology Services recommended a lifecycle of 10 years for the product. However, an additional review deemed that the specialization of the software’s lifecycle began in October 2018 and provided for a length of 20 years ending in September 2038. City Hall 215 E. McKinney Street Denton, Texas www.cityofdenton.com Expenditures are projected for annual adoption and customer base growth, and a maximum participation rate of 15%. Charges are only incurred through customer enrollment and use. Project Description Estimated Year Expenditure FY 25-26 $203,663.63 FY 26-27 264,794.51 FY 27-28 344,209.02 FY 28-29 447,471.73 FY 29-30 581,737.09 FY 30-31 756,226.42 FY 31-32 983,102.30 FY 32-33 1,278,025.04 FY 33-34 1,661,424.60 FY 34-35 1,748,073.06 FY 35-36 1,835,516.46 FY 36-37 1,927,252.54 FY 37-38 2,023,599.26 Contingency 1,405,509.57 Total $15,460,605.23 Section 252.022 of the Local Government Code provides that procurement of sole source commodities and services are exempt from competitive bidding, if over $50,000, shall be awarded by the governing body. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) On October 27, 2025, the Public Utilities Board (PUB) recommended this item to the City Council for consideration. RECOMMENDATION Award with a contract to Exceleron Software, LLC., as a sole source supplier, for a prepaid utilities solution for the Customer Service Department, through September 30, 2038, in the not-to-exceed amount of $15,460,605.23. PRINCIPAL PLACE OF BUSINESS Exceleron Software, LLC. Dallas, TX ESTIMATED SCHEDULE OF PROJECT This contract will expire on September 30, 2038. FISCAL INFORMATION This service will be funded from account 630800.7879. Requisitions will be entered on an as-needed basis. The budgeted amount for this item is $15,460,605.23. EXHIBITS Exhibit 1: Agenda Information Sheet Exhibit 2: Original Contract Exhibit 3: Presentation Exhibit 4: Ordinance and Amendment 1 Respectfully submitted: Lori Hewell, 940-349-7100 Purchasing Manager For information concerning this acquisition, contact: Christa Foster, 940-349-7412. Legal point of contact: Marcella Lunn at 940-349-8333.