| | | | | | | | Agenda Item - 2.a.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Lisa L. Kim
| | Dept.: | Director
| Dept.: | Community and Economic Development
| | Subject: | Adoption of a Resolution to award a contract to Interior Demolition, Inc., for demolition services at the northwest corner of Harbor Boulevard and Twintree Avenue, Garden Grove. (Cost: $165,880) (Action Item) | Date: | 9/14/2021 |
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| | | | | | | | OBJECTIVE
For the Successor Agency to adopt a Resolution to award a contract to Interior Demolition, Inc., (Contractor) for the demolition of the Northwest corner of Harbor Boulevard and Twintree Avenue B-2 Site Demolition Project, Successor Agency Project No. 022-01 (Project). |
| | | | | | | | BACKGROUND
On June 26, 2001, the Garden Grove Agency for Community Development (former Agency) and Palm Court Lodging, LLC (Developer) entered into a Disposition and Development Agreement (DDA) establishing the terms and conditions for the development of two (2) hotels on property commonly referred as the B-2 (Site).
On June 30, 2006, the DDA was assigned to Kam Sang Company, Inc. and New Age Garden Grove, LLC, to construct and operate the two (2) hotels. The first hotel, Sheraton Garden Grove (Sheraton GG) has been constructed and continues to operate. Currently, the Sheraton GG uses a northerly portion of the remaining Site for overflow parking and circulation. Pursuant to the DDA, section 205.2, Developer’s Conditions of Closing, (j) Site Preparation, the Site shall have been cleared, including demolition and removal of foundations.
In May 2013, the State of California Department of Finance (DOF), provided written confirmation that the DDA is a legally binding and enforceable agreement. Implementation of the DDA requires the Successor Agency to demolish all above ground and below grade structures on the Site. All structures had previously been removed. Now, the surface improvements will be removed. |
| | | | | | | | DISCUSSION
In April 2021, the DOF approved the ROPS 21-22 budget in which an amount of $371,430 was allocated for the demolition work. Staff requested proposals for the removal of surface improvements and related services for the B-2 Site to remove the surface improvements.
On August 10, 2021, five (5) bids were received and opened by the City Clerk’s Office for the Project (see below). The lowest bidder was Interior Demolition, Inc., with a total price of $138,280. The licenses and references of Interior Demolition, Inc. have been reviewed and verified by staff, and all other documents are in order.
Bid Results:
1. Interior Demolition, Inc. $138,280
2. OFRS, Inc. $164,056
3. J & G Industries, Inc. $192,300
4. Abajian Enterprise dba Socal Removal $198,235
5. CSI Services $297,550 |
| | | | | | | | FINANCIAL IMPACT
There is no impact to the General Fund. The costs for this contract will be funded in accordance with the ROPS 21-22 budget and will be paid through the Redevelopment Property Tax Trust Fund. |
| | | | | | | | RECOMMENDATION
It is recommended that the Successor Agency:
- Adopt a Resolution to award a contract for Northwest corner of Harbor Boulevard and Twintree Avenue B-2 Site Demolition Project Successor Agency Project No. 022-01 in the amount of $138,280 to Interior Demolition Inc., and authorize a twenty percent (20%) contingency of $27,600, subject to authority of the Director; and
- Authorize the Director to execute the contract with Interior Demolition Inc., and make minor modifications as needed, on behalf of the Successor Agency.
By: Paul Guerrero, Real Property
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