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 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.

In addition, on September 23, 2016, a two-alarm structure fire severely damaged one of the structures that is to be demolished. Southern California Air Quality Management District requires the immediate abatement of the hazardous materials disturbed by the fire within that building. As a result, a separate hazardous materials consultant was engaged to undertake the immediate remediation.

Project:

Four (4) bids were received and opened by the City Clerk’s Office on October 3, 2016, at 2:00 p.m. for the demolition project (see attached Bid Summary Sheet). The lowest responsive bid was submitted by J&G Industries, Inc., with a total price of $338,878.00. The Contractor is to remove all asbestos materials from the buildings not damaged by the fire as part of the scope of work. This proposal is within the current project budget. The licenses and references of the Contractor have been reviewed and verified by staff, and all other documentation is in order.

Remediation:

Staff is in the process of obtaining a proposal from Ocean Blue to undertake emergency remediation of hazardous materials from the site. Ocean Blue will remove hazardous medical waste from the site for $22,000.00. In addition the removal of asbestos material is anticipated to be an additional $18,000, for a total contract price of approximately $40,000.00.

There is no impact to the General Fund. The costs for Project and Remediation will be funded by the 2016-2017 Recognized Obligation Payment schedule in accordance with the Dissolution Act and will be paid through the Redevelopment Property Tax Trust Fund.

Based on the foregoing information, staff recommends that the Successor Agency Board:

• Adopt the Resolution 1.) Awarding a contract for Project No. 2562 – Brookhurst Triangle Demolition Project Phase One in the amount of $338,878.00 to J&G Industries, Inc,. and 2.) Approving a professional services agreement with Ocean Blue Environmental Services in the amount of $40,000.00;

• 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;

• Authorize the Director to execute the professional services agreement with Ocean Blue Environmental Services, Inc., for emergency remediation of hazardous materials at 10151 Garden Grove Boulevard, 12863 and 12865 Brookhurst Street, Garden Grove, and make minor modifications on behalf of the Successor Agency; and Authorize staff to transmit both the contract and professional services agreement to the Oversight Board for approval.

By:  Carlos Marquez, Sr. Real Property Agent