On November 23, 2010, the Garden Grove Agency for Community Development (“Former Agency”) and New Age Brookhurst, LLC (“Developer”) entered into a Disposition and Development Agreement (“DDA”) establishing the terms and conditions for the development of a mixed-use retail, commercial, and residential development on Successor Agency owned property, commonly referred as the “Brookhurst Triangle,” (the “Site”). The Site is located at 10151 Garden Grove Boulevard, 12863 and 12865 Brookhurst Street, Garden Grove.

The Former Agency has since been dissolved and the Successor Agency is responsible for administering the enforceable obligations of the Former Agency. On May 17, 2013, the State of California Department of Finance (“DOF”), provided written confirmation to the Successor Agency that the DDA is a legally binding and enforceable agreement, and is therefore an enforceable obligation pursuant to Health and Safety Code Section 34171(d)(1)(E). In addition, the DOF confirmed the Successor Agency’s obligation to demolish all above ground and below grade structures on the Site. Furthermore, federal and state environmental regulations require the removal of asbestos containing materials within the structures prior to commencing with demolition activities.

Brookhurst Triangle Project Phase II Demolition was divided into two phases.  The first phase required demolition of approximately 26,500 square feet of a multi-tenant building.  Phase I demolition work was approved by DOF on November 4, 2016 and completed in January 2017. The Successor Agency is now initiating activities for Phase II demolition which is comprised of demolishing approximately 28,700 square feet of improvements. 

A Request for Proposals for Project No. S-1232 – Brookhurst Triangle Demolition Project - Phase II was released on December 20, 2017. Nine (9) bids were received and opened by the City Clerk’s Office on January 10, 2018, at 1:30 p.m. for the Project (see attached Bid Summary Sheet). The lowest bidder, Integrated Demolition and Remediation, Inc. submitted written notification to the Successor Agency of their desire to withdraw their bid within 5-business days of bid openingdue to a mistake in filling out and calculating the bid, which made their bid substantially different than what they intended it to be.  The next lowest responsive bid was submitted by J&G Industries, Inc., with a total price of $330,100.00. Bidders who did not submit a complete bid, which included Option B, were not deemed responsive.  The licenses and references of J&G Industries, Inc. have been reviewed and verified by staff, and all other documents are in order.

There is no impact to the General Fund. The costs for Project will be funded by the 2017-2018 Recognized Obligation Payment Schedule (“ROPS 17-18”) in accordance with the Dissolution Act and will be paid through the Redevelopment Property Tax Trust Fund.

It is recommended that the Successor Agency:

• Adopt the Resolution awarding a contract for Project No. S-1232 – Brookhurst Triangle Demolition Project Phase II in the amount of $330,100.00 to J&G Industries, Inc. and authorize a 10 percent contingency of $33,010, subject to discretion of the Director; and

• Authorize the Director to execute the contract with J&G Industries, Inc., for demolition of structures at the 10151 Garden Grove Boulevard, 12863 and 12865 Brookhurst Street, Garden Grove, and make minor modifications on behalf of the Successor Agency. 

By: Monica L. Covarrubias

      Project Manager