As you are aware, City Council approved staff’s request to rescind the bid award to Arete Industries for Phase II of the Wayfiinding Project. As a result, this resulted in a deduction to the contract in the amount of $304,331. The purpose of this agenda item is to request the authority to enter into a contract with Poblocki Sign Company for the remaining work items in Phase II of the project.
For purposes of explanation, Poblocki Sign Company was the second lowest bidder on the project when it was originally bid. When it appeared that Arete Industries would not be retained for the second phase of the project, staff contacted Poblocki to determine their continued interest in the project. At that time, Poblocki was asked if they could complete the project within the performance period of 180 days and they agreed that they would be able to do so. Additionally, in lieu of rebidding the project, Poblocki was asked to agree to perform the work at the unit prices as submitted by the low bidder on the project and they agreed that they would be able to do so. Therefore, Poblocki has agreed to perform the project for $304,331 absent mobilization and general conditions which total $11,750 bringing the total contract amount to $316,081.
Incidentally, when the contract with Arete Industries is closed out for Phase I, it will result in a credit for both mobilization and general conditions which will allow for Poblocki’s charges for mobilization and general conditions in the amount of $11,750 to be covered by the negative change order.