TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. Subject
title
Third Amendment to Agreement with Yunex, LLC for on-call traffic signal and street lighting repair services.
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2. Summary
Yunex, LLC provides critical support for the City’s traffic signal and street lighting maintenance program. Cumulative expenditures against the existing five-year agreement are approaching the not-to-exceed limit of $700,000. The proposed Third Amendment will increase the not-to-exceed amount by $250,000 for a total amount not to exceed $950,000 and extend the term of the Agreement by three months, from June 30, 2025, to September 30, 2025.
3. Recommended Action
recommendation
Approve a Third Amendment to Agreement with Yunex, LLC for on-call signal and lighting repair services in the amount of $250,000; and authorize the Mayor and City Clerk to execute on behalf of the City.
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4. Fiscal Impact
The expense for this amendment is $250,000 and will be funded through Capital Projects (500) through:
500.5032.56100.16302 Minor Traffic Control Devices $125,000
500.5032.56100.20374 Street Light Pole Replacement Program $125,000
5. Strategic Plan Goals
Goal 5: Improve Infrastructure, Mobility, and Technology
6. Discussion and Background
In August 2020, Yunex, LLC (Yunex) was awarded a contract, on a competitive basis, for on-call traffic signal and street lighting repair services. The contract, Agreement 7017, was for an initial term of three years in the amount of $240,000, with a provision for a two-year term extension and $160,000 increase. The term extension and increase were exercised and memorialized as an amendment in May 2023. Additionally, to cover costs and repairs due to significant increases in copper street light wire theft in the City, the contract was amended in March 2022 for an additional $300,000 in contract capacity. The current Agreement, as previously amended, expires June 30, 2025, and has a contract capacity of $700,000.
Since November 2024, Yunex’s services have been required at a higher frequency than originally anticipated due to:
1. The Public Works Traffic Division, which oversees signal and lighting maintenance, experiencing a staffing reduction due to retirement.
2. Repairs necessitated by recent storm events and a series of higher-than-average traffic signal and street light pole “knock-downs”.
The combined effect of the above has resulted in accelerated use, and near depletion of the contract’s remaining capacity. For Yunex to continue providing critical on-call traffic signal and street lighting repair services through the end of the fiscal year, a Third Amendment, to increase the contract’s capacity, will be needed. Based on current trends and a conservative estimate, staff recommends increasing the not-to-exceed limit by $250,000, to $950,000.
At the same time and considering the upcoming Yunex expiration date of June 30, staff have begun the process to competitively procure a successor contract for on-call signal and lighting repair services. It is anticipated that the successor contract will be presented to City Council for potential award before the Yunex Agreement expires. However, to ensure there are no service lapses in the unlikely event there are unforeseen delays awarding a successor contract, staff also recommends extending the term of the Yunex Agreement an additional three months. This would amend the Agreement’s end date from June 30, 2025, to September 30, 2025. Yunex’s current rates for services performed in 2025 will remain unchanged during the extension period.
Lastly, no budget appropriation is being requested. Funding for the Third Amendment is already available in the approved FY 25 budget, through two of the City’s maintenance-type capital projects: Minor Traffic Control Devices (16302) and Street Light Pole Replacement Program (20374). Once a successor contract is awarded, this Agreement can be terminated with any remaining contract capacity unused.
7. ATTACHMENT
• Third Amendment to Agreement with Yunex, LLC