Item 236/2025
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Ursula Luna-Reynosa
Dept:
City Manager Dept: Economic Development and
Housing
Date: 6/24/2025
Subject: Approval of an emergency contract with J&G Industries, Inc. for the demolition of two (2) residential structures located at 12371 and 12381 Harbor Boulevard. (Cost: Not-to-Exceed: $150,070) (Action Item)
OBJECTIVE
To request City Council approval of an Emergency Contract between the City of Garden Grove and J&G Industries, Inc., for the demolition of two (2) residential structures located at 12371 and 12381 Harbor Boulevard.
BACKGROUND
On February 11, 2025, the City Council authorized the acquisition of 12381 Harbor Boulevard as part of a strategic effort to consolidate parcels within the Grove District for long -term redevelopment. The property is situated between and adjacent to four Ci ty-owned parcels, creating a contiguous assemblage that enhances future development opportunities.
Shortly after acquisition of the property, the structure experienced a severe fire, rendering it structurally unsound and uninhabitable. Due to the imminen t health and safety risks posed by the condition of the building, the site qualifies for emergency demolition and the city intends to take expedited action to protect public welfare.
The property at 12371 Harbor Boulevard is owned by the City and is in the final stages of tenant relocation. As the property becomes vacant, the risk of trespassing, vandalism, and visual blight has increased significantly.
Staff recommends demolishing 12371 and 12381 Harbor Boulevard concurrently to reduce liability exposure and maintain the integrity of the Grove District.
DISCUSSION
The City solicited a proposal from J&G Industries, Inc., a licensed demolition contractor with relevant experience. The proposed scope of work includes:
Item 236/2025
Emergency demolition , documentation, and reporting for both 123 71 and 123 81 Harbor Boulevard including Procedure 5 compliance which is a requirement by South Coast Air Quality Management District ( SCAQMD) Rule 1403 requires preparing and submitting, for SCAQMD approval, a Certified Asbestos Consultant–signed cleanup plan whenever asbestos-containing materials are disturbed or damaged due to the fire, as well as and demolition and environmental abatement of both properties; and Site rough grading for both parcels following demolition.
Category Amount
12371 Harbor Blvd $35,120
12381 Harbor Blvd $74,150
Total Estimated Cost $109,270
In addition, a $40,800 contingency buffer is necessary for 12371 Harbor Boulevard to address any unforeseen site conditions, such as potential costs related to the Procedure 5 compliance, if required. This will be addressed when the Property is vacated and when the environmental testing is reviewed by the consultants and the City. Due to the emergency situation, staff has determined that it would be in the best interest of the City to dispense of the bidding process pursuant to Garden Grove M unicipal Code Section 2.50.060(B), and proceed with awarding the contract to J&G Industries, Inc.
FINANCIAL IMPACT
The cost of the emergency demolition is not-to-exceed $150,070 and will be absorbed by the department’s existing budget. No additional appropriation is required.
RECOMMENDATION
It is recommended that the City Council:
Authorize to dispense of the bidding process per Garden Grove Municipal Code Section 2.50.060(B) and approve the emergency contract between the City of Garden Grove and J&G Industries, Inc., in the amount not to exceed $150,070, for the demolition of two (2) residential structures located at 12371 and 12381 Harbor Boulevard; and
Authorize the City Manager, or designee, to execute the agreement and any necessary amendments, and make minor modifications as appropriate thereto, on behalf of the City.
By: Greg Blodgett, Deputy Director
ATTACHMENT(S)
1. Emergency Contract - J&G Industries, Inc.