ADMINISTRATIVE REPORT
MEETING DATE: May 27, 2026 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: May 12, 2026
SUBJECT: Amendment No. 3 to Agreement no. 2024-157 with Loop Electric, Inc.
(incorporating a contract price increase of seven and one-half percent (7.5%), increasing compensation $500,000; revised not to exceed $2,119,100, and extend the term by one year) to continue the supply of vehicle loop cutting and streetlight repair service.
RECOMMENDATION:
Staff recommend approval of the amendment.
BACKGROUND:
On June 12, 2024, the City Council approved the annual contract for the supply of vehicle loop cutting and streetlight repair service with Loop Electric, Inc., in the amount of $489,100; renewable annually thereafter for four consecutive one -year periods. The City may exercise the option to allow price adjustments due to increases in the Consumer Price Index (CPI) for All Urban Consumers (CPA-U) U.S City Average for all items 1982-194=100.
This contract is used by the General Services Division for various vehicle detector loop installations, including those that require horizontal boring, as well as for streetlight repair services. An increase in street paving, which necessitates vehicle loop cutting, has led to a substantial increase in service demand.
The additional compensation will enable the General Services Division to complete both current and upcoming vehicle loop cutting and streetlight repair projects through the contract's term.
Loop Electric Inc. has agreed to extend its bid pricing with a seven and one-half percent (7.5%) contract price increase, consistent with increases in the Consumer Price Index (CPI) for All Urban Consumers (CPA- U) U.S. City Average for classification codes 1982-194=100. Staff have previously reviewed and approved the request in full accordance with the terms and conditions of the original bid specifications.
Per the terms of the contract, amendments increasing the contract and/or extending the contract have been approved as follows:
• Amendment 1 approved February 12, 2025; increased compensation by $330,000. • Amendment 2 approved June 11, 2025; increased compensation by $800,000, and extended term by one year to June 11, 2026.
Staff recommend approval of Amendment No. 3 to incorporate a 7.5% contract price increase, extend the term of the contract by one y ear, and increase compensation by $500,000 for a revised not to exceed amount of $2,119,100 to allow the continuance of vehicle loop cutting and streetlight repair service to the term date of June 11, 2027.
FISCAL IMPACT:
Funds are budgeted in the General Fund and Capital Outlay Fund for this contract.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
1. Amendment No. 3 to Agreement No. 2024-157
2. EXHIBIT A