| | | | | | | | Agenda Item - 4.e.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | Kingsley Okereke
| | Dept.: | City Manager
| Dept.: | Finance
| | Subject: | Award of Contract to Titan Consolidated Industries, Inc., for demolition at 12511, 12531, 12551, 12571 Twintree Lane, 12222, 12252, 12262, 12272, 12292, and 12302 Harbor Boulevard, Garden Grove. (Cost: $135,000) (Action Item) | Date: | 7/12/2016 |
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| | | | | | | | OBJECTIVE
It is requested that the City Council award a contract to Titan Consolidated Industries, Inc., for the demolition of structures at 12511, 12531, 12551, and 12571 Twintree Lane; and 12222, 12252, 12262, 12272, 12292, and 12302 Harbor Boulevard, Garden Grove, (collectively the "Properties"). |
| | | | | | | | BACKGROUND
The Garden Grove Agency for Community Development ("Former Agency") acquired the Properties for the purpose of conveying and developing an upscale hotel and related amenities at the northwest corner of Harbor Boulevard and Twintree Lane, and were transferred to the City of Garden Grove ("City") pursuant to the Long Range Property Management Plan after compensation agreements were executed with the various taxing agencies. On April 9, 2013, the City and Land & Design, Inc., negotiated the terms of a hotel development agreement entitled: Grove District Resort Hotel Development Agreement ("Resort Agreement") for the proposed development of Site C (the "Project"). |
| | | | | | | | DISCUSSION
The Properties have deteriorated rapidly since they were acquired, and have been repeatedly vandalized and used for criminal activity due to the fact that they have remained vacant for an extended period of time. The Properties are in poor condition and pose an immediate health and safety concern to the surrounding neighborhood and are a liability to the City.
Section 2.50.070 of the Garden Grove Municipal Code authorizes the City Council to proceed with the repairs of a public facility without adopting plans, specifications, working details, or notice of inviting bids in cases of emergency. The structures were inspected by Building Division staff, and an order to demolish the structures was ordered (Attachment 1).
Three estimates were received and opened by the City Clerk's office on June 23, 2016, at 3:00 p.m. The lowest responsible bidder was Titan Consolidated Industries, Inc., with a total bid of $135,000 (Attachment 2). The bid is within the current project budget, and the licenses and references of the contractor have been reviewed and verified by staff, and all other documentation is in order. |
| | | | | | | | FINANCIAL IMPACT
Demolition expenditures for the Project have been budgeted in Fund/Package: 106/8850 for Fiscal Year 2016-2017. |
| | | | | | | | RECOMMENDATION
Staff recommends that the City Council:
- Award a contract to Titan Consolidated Industries, Inc., in the amount of $135,000.00 for demolition of structures at 12511 Twintree Lane, 12531 Twintree Lane, 12551 Twintree Lane, 12571 Twintree Lane, 12222 Harbor Boulevard, 12252 Harbor Boulevard, 12262 Harbor Boulevard, 12272 Harbor Boulevard, 12292 Harbor Boulevard and 12302 Harbor Boulevard, Garden Grove; and
- Authorize the City Manager to execute the contract on behalf of the City and make minor modifications if appropriate to do so.
By: Carlos Marquez, Senior Real Property Agent
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| ATTACHMENTS: | | Description | Upload Date | Type | File Name | | Notice of Demolition | 6/30/2016 | Cover Memo | Notice_of_Demolition.pdf | | Bid Opening Results | 6/30/2016 | Cover Memo | Demolition_Bid_Opening_Results.pdf | | Contract | 6/30/2016 | Cover Memo | Titan_Consolidated_Industries.Demolition_Contract_Template.pdf |
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