Item Coversheet

Agenda Item - 2.a.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:Lisa L. Kim

From:Craig Beck
Dept.:Director/City Manager 

Dept.: Community and Economic Development 
Subject:

Award a contract to H.L. Miller, Inc., for Interior Office Improvement Project, 11277 Garden Grove No. 03-2023. (Cost: $88,472.12) (Joint Action Item with the City Council.)

Date:5/23/2023

OBJECTIVE

For the Housing Authority in a joint action with the City Council award a contract to H.L. Miller, Inc., for the construction of the Interior Office Improvement Project, 11277 Garden Grove No. 03-2023 (Project).
BACKGROUND

In July 2022, the City acquired a commercial building located at 11277 Garden Grove Blvd (the Building) as part of the Civic Center strategic plan and for the operations of various City services.  The Housing Authority currently leases certain office space from an adjacent commercial building.  As the lease term approaches to an end, the Housing Authority intends to relocate to the Building.  Certain tenant improvements are necessary to accommodate the relocation.  The proposed Project will improve an area on the west-end of the building that will be utilized exclusively by the Housing Authority. Improvements include demolition and removal of selective walls, construction of new offices, electrical, flooring, ceiling tiles, protective countertop and paint.
DISCUSSION

A notice inviting bids for tenant improvements was sent to licensed contractors generated from City procurement sources on April 13, 2023, and a mandatory job site meeting was scheduled for April 20, 2023.  No bidders were present. After discussion with the City’s Public Work’s Facilities staff, the City decided to close the notice of inviting bids and contact a contractor from the City’s bid list. City staff worked directly with H.L. Miller to formulate the scope of work and cost estimates, which meets the technical criteria for completing the work and is attached to the contract.

FINANCIAL IMPACT

The amount of the contract with H.L. Miller is $88,472.12.  Since the improvement is for the sole use of the Housing Authority, the contract will be funded by the Housing Authority administration budget.  In the case that the amount exceeds the Housing Authority administration allowance, the General Fund shall subsidize for the balance.
RECOMMENDATION

It is recommended that the Housing Authority and the City Council:

 

  •  Approve the Award of Contract to H.L. Miller, Inc., in the amount of $88,472.12, for the Interior Office Improvement Project, 11277 Garden Grove No. 03-2023 between the H.L. Miller, the City of Garden Grove and the Garden Grove Housing Authority;
  •  Authorize the Finance Director to create a new Capital Improvement Project (CIP) for the Housing Authority and appropriate $88,472.12 from the Housing Authority's existing operating funds for the CIP.  In the case that the Housing Authority's operating funds are insufficient to cover the entire Project cost, the Finance Director shall allocate the General Fund money to subsidize for the balance; and
  • Authorize the City Manager/Director, or her designee, to execute the contract, and make minor modifications, on behalf of the City and the Housing Authority, as appropriate.

 

 

By:  Paul Guerrero, Sr. Real Property Agent

 




ATTACHMENTS:
DescriptionUpload DateTypeFile Name
Construction Contract5/17/2023AgreementCity_-_Housing_-_H.L._Builders__Inc._-_Construction_Contract_-_Interior_Office_Improvements_Project_11277_Garden_Grove_No._03-2023.pdf