Item 44/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: William E. Murray
Dept:
City Manager Dept: Public Works
Date: 2/11/2025
Subject: Approval of an emergency purchase order with Preferred Restoration, Inc. for completed emergency demolition and cleanup at Well No. 29. (Cost: $104,277) (Action Item)
OBJECTIVE
To obtain City Council approval and ratification of an emergency purchase order with Preferred Restoration, Inc. for emergency demolition and cleanup at Well No. 29 Reservoir, located within Haster Basin Recreational Park on Haster Street and Lampson Avenue.
BACKGROUND
The Garden Grove Public Works Department’s Water Services Division (“Division”) operates the water system that provides water services throughout the city. The Division operates a total of 17 water production facilities, 13 wells, five pump stations, and eight reservoirs that hold approximately 53 million gallons of wate r. On August 29, 2024, Well No. 29 reservoir building caught on fire, damaging both the building and mechanical equipment inside. As a result, this well site was rendered inoperable and is in need of repairs.
DISCUSSION
Well No. 29 supplies water to the east side of the City, including the resort area, and had to be taken offline as a result of the structure fire on August 29, 2024. After coordinating with the City’s insurance carrier, fire forensic investigators, and other stakeholders, the City engaged with Preferred Restoration, Inc. on an emergency basis for the necessary demolition work and detailed cleaning to protect the remaining salvageable equipment. The work was completed in early December 2024.
Garden Grove Municipal Code Section 2.50.060 (B) allows bidding procedures to be dispensed under an emergency situation. The demolition and cleanup of Well No. 29 qualify as emergency work due to the urgent need to secure the building and equipment, and prevent further damage in advance of anticipa ted winter rains. Furthermore, the City’s insurance advanced the funds to expedite the demolition and cleanup work. At this time, staff requests Item 44/2025
that the City Council authorize the issuance of an emergency purchase order in the amount of $104,277 to Preferred Restoration, Inc. to close out the demolition and cleanup work.
FINANCIAL IMPACT
The total cost for the emergency demolition and cleanup at Well No. 29 is $104,277. This amount is initially covered by the City's Water Utility Fund and will be reimb ursed through proceeds from the City's insurance policy.
RECOMMENDATION
It is recommended that the City Council:
Authorize the Finance Director to issue an emergency purchase order with Preferred Restoration, Inc. for emergency demolition and cleanup at Well No. 29 for a total amount of $104,277.
By, Raquel Manson, Sr. Administrative Analyst
ATTACHMENT
Preferred Restoration Inc. Proposal