Item Coversheet

Agenda Item - 3.a.


The City of Garden Grove as
Successor Agency to the Agency for Community Development


INTER-DEPARTMENT MEMORANDUM

To:Scott C. Stiles

From:Kingsley Okereke
Dept.:City Manager 

Dept.: Finance 
Subject:

Approval of a Change Order/Amendment to the agreement with J&G Industries, Inc., for demolition of structures at 10151 Garden Grove Boulevard, 12863 and 12865 Brookhurst Street, Garden Grove. (Action Item)

Date:11/22/2016

OBJECTIVE

It is requested that the City of Garden Grove as Successor Agency to the Garden Grove Agency for Community Development (“Successor Agency”) approve a change order and contract amendment with J&G Industries, Inc., for Project No. 2562 – Brookhurst Triangle Demolition Project - Phase 1 (the “Project”) for removal of additional asbestos containing materials and hazardous materials at the Brookhurst Triangle.

BACKGROUND

In October 2016, the Successor Agency and Oversight Board adopted Resolution Nos. 42-16 and 51-16 awarding a contract to J&G Industries, Inc., (“Contractor”) for the Project at 10151 Garden Grove Boulevard, 12863 and 12865 Brookhurst Street. During a recent walk through, it was discovered that asbestos containing material (“ACM”) at the structure located at 10151 Garden Grove Boulevard was disturbed by transients. The ACM has intermingled with other debris to the point that the asbestos can no longer be separated. In addition, several years ago, the structure located at 12865 Brookhurst Street was damaged by fire. The integrity of the structure was not compromised; however, the ACM was disturbed by the fire. As a result AQMD regulations require that the ACM be removed under a Procedure 5 Plan. The Contractor submitted a change order of $170,236.00 to prepare and implement the Procedure 5 Plan for the additional ACM.

FINANCIAL IMPACT

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

RECOMMENDATION

It is recommended that the Successor Agency:

 

  • Approve the change order to J&G Industries, Inc., in the amount of $170,236.00, to remove asbestos containing materials;

  • Authorize the Director to increase the contract sum with J & G Industries, Inc., to  $509,114.00 to cover the cost of this change order; and

  • Authorize the Director to execute a contract amendment for the change order on behalf of the Successor Agency, and make minor modifications as appropriate.

 

By:  Carlos Marquez, Senior Real Property Agent




ATTACHMENTS:
DescriptionUpload DateTypeFile Name
Change Order Letter11/17/2016Backup MaterialJ_G_Change_Order_11-22-16.pdf
Amendment11/17/2016Backup MaterialJ_G_Amendment_11-22-16.pdf