Over the past two years and furthering implementation of the City’s 2021 Comprehensive Strategic Plan to Address Homelessness (CSPAH), a number of key homelessness initiatives have been deployed in the City of Garden Grove including: expansion of the GGPD Special Resources Team, activating the Be Well Mobile Response Team, and most recently a partnership with CalOptima and Healthcare in Action to implement the County’s first Street Medicine Pilot Program.

One of the key CSPAH priorities is the advancement of the Central Cities Navigation Center (CCNC) Project. In September 2022, the City Council approved a Purchase Agreement for the acquisition of 13871 West Street for the development of a future navigation center. The navigation center is anticipated to provide 85 individuals experiencing homelessness within the Central SPA with emergency housing and supportive services. The CCNC project scope incorporates rehabilitation of an existing 9,653 square-foot building that primarily consists of interior renovation and tenant improvements, and demolition of an adjoining 1,774 square-foot building. The CCNC project scope also includes upgrades to HVAC equipment, construction of a full-service commercial kitchen and installation of a new grease interceptor, new light fixtures, a new fire sprinkler and alarm system, new restroom and shower facilities, shelter dormitory, and all related Fixtures, Furniture, and Equipment (FF&E) to achieve full operation.

In June 2022, the Cities of Garden Grove, Fountain Valley and Westminster entered into a Memorandum of Understanding (Tri-Cities MOU) to cooperate on the development of a future navigation center in the Central SPA. Under a separate Memorandum of Understanding between the County of Orange and the City of Garden Grove (County MOU), the County will provide funding totaling $11,550,000 towards construction and operation of the CCNC, including a one-time payment of $5.3 million to rehabilitate the CCNC.

In March 2023, an Invitation for Bids was released for construction of the CCNC project. Due to irregularities, the City Council approved rejection of all construction bids and authorized to re-advertise at the March 28, 2023 meeting. The CCNC project scope was refined by City staff in coordination with the City’s construction manager, NEXGEN Design Builders, to re-issue a solicitation for construction bids for the CCNC project.  

Staff resolicited bids for this project pursuant to Municipal Code Section 2.50.100.  The Invitation to Bids for construction of the CCNC project was posted on the City’s PlanetBid Portal. A mandatory bidder job-site walk on April 5, 2023 was required as part of the bid process. This provided an opportunity for potential bidders to obtain updated project requirements related to the newly released construction bid and to assess the 13871 West Street site.

Five (5) qualified bid proposals were received at the City Clerk’s Office by 9:00 a.m. on April 19, 2023.  The bid amount from Thomco Construction, Inc., the lowest responsible bidder and is within the current project budget at $4,267,450.00. The licenses and references of the contractor have been reviewed and verified by staff, and all other documentation is in order.

The bid results are as follows:

It is recommended that the City Council award the contract to the lowest responsible bidder, Thomco Construction, Inc. for construction of the Central Cities Navigation Center (CCNC) located at 13871 West Street (City Project No. 1350000-1)

In July 2022, a total of $7.0 million was appropriated to initiate the acquisition and rehabilitation of the CCNC.  With the additional funding of $5.3 million from the County of Orange and $3.4 million committed by the cities of Fountain Valley and Westminster, there is no additional appropriation needed for the current fiscal year.  All unused allocation to the CCNC project will be carried over to the next fiscal year through the budget process.  Additional City funding needs will be assessed and included in the fiscal years 2023 to 2025 biennial budget. 

It is recommended that the City Council: 

•  Approve the Award of Contract to Thomco Construction Inc., in the amount of. $4,267,450 for the Central Cities Navigation Center construction and rehabilitation;

• Authorize appropriation of $5,300,000 received from the County of Orange per County MOU (GL: 260-211-1210, JL: CIP1369000); and 

• Authorize the City Manager, or her designees, to execute the agreement, and make minor modifications, on behalf of the City, as appropriate there to.

By: Christy Le, Homeless Liaison Analyst