Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Supplemental Agreement with HPS, LLC of Georgetown, Texas for Ongoing Maintenance of Master Meter Reading Equipment
Summary
COUNCIL GOAL: Enhance the Quality of Life in McKinney
(5.3: Develop sustainable quality of life improvements within the City of McKinney)
(5.4: Promote environmental stewardship initiatives)
MEETING DATE: June 17, 2025
DEPARTMENT: Meter Services
CONTACT: Loren Powell, Meter Service Manager
RECOMMENDED CITY COUNCIL ACTION:
• Approval of the Resolution.
ITEM SUMMARY:
• This Resolution authorizes a supplemental task order with HPS, LLC to provide ongoing maintenance and annual hosting for the Advanced Metering Infrastructure (AMI) System for an increase in the contract amount by $1,500,000 (from $11,257,875) for a total aggregate contract amount, inclusive of any additional supplemental agreements, not to exceed $12,757,875 for 5 years.
BACKGROUND INFORMATION:
• HPS, LLC submitted a response to Request for Proposals 21-40RFP for Advanced Metering Infrastructure (AMI) System. They were awarded a contract to develop and implement an Advanced Metering Infrastructure (AMI) System by the City Council on August 3, 2021. Resolution No. 2021- 08- 094 (R) authorized the City Manager to execute a contract and any supplemental agreements with HPS, LLC in an amount not to exceed $11,257,875.
• The proposal response for the meters from HPS, LLC included that their partner, Master Meter Systems will provide complete support and maintenance of the system. In 2024, Master Meter Systems turned the annual maintenance and cost over to HPS, LLC.
• HPS, LLC has taken the responsibility to provide ongoing maintenance for all Master Meter reading equipment for the City of McKinney on an annual basis. Yearly hosting charges will be billed to the City of McKinney annually by HPS, LLC. Hosting charges are based on the number of units being read through the MDM software. These additional annual charges will be added as a supplemental task order to the current HPS, LLC Master Services Agreement (executed August 18, 2021) which established a not-to-exceed contract amount of $11,257,875.
• A total of $1,500,000 is expected to be expended under the current HPS, LLC contract between June 17, 2025, and June 16, 2030, which exceeds the previously established not-to-exceed contract in the amount of $11,257,875.
FINANCIAL SUMMARY:
• This Resolution authorizes a supplemental task order agreement with HPS, LLC for an increase in the not to exceed contract amount from $11,257,875 to a total contract amount, inclusive of any additional supplemental task order agreements, not to exceed $12,757,875.
• Funding for the Ongoing Maintenance and Yearly Hosting Charges is available in Account # 003-8134-503-8516.
BOARD OR COMMISSION RECOMMENDATION:
• N/A