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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: FEBRUARY 24, 2026
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: CLOSE-OUT CHANGE ORDER UNDER AGREEMENT WITH
ALL AMERICAN ASPHALT, INC. FOR THE SERRANO AVENUE
REHABILITATION PROJECT FROM WEST CITY LIMIT TO
WEIR CANYON ROAD
ATTACHMENT (Y/N): YES ITEM # 10
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Approve the Close-Out Change Order (Change Order) between the City of Anaheim and All American Asphalt, Inc. (All American Asphalt) for the Serrano Avenue Rehabilitation from the West City Limit to Weir Canyon Road (Project), in the amount of $31,530.88, which includes settlement of any outstanding claims and extra work orders; and
2) Authorize the Public Works Director, on behalf of the City, to execute the Change Order and to take such actions as are necessary or required to implement and administer the Change Order.
DISCUSSION:
On December 17, 2024, the City Council approved a contract award to All American Asphalt of Corona, California, Contractor’s License No. 267073, with an original contract amount of $4,192,546 for the Project.
The Project is part of the Department of Public Works’ efforts to rehabilitate the existing major arterial roadway through the reconstruction of new asphalt concrete (AC) pavement, increase safety and traffic calming measures with new striping and signage and new continuous Class II bike lanes, sidewalks and Americans with Disabilities Act (ADA) accessible ramps along the corridor of Serrano Avenue from Nohl Ranch Road to Weir Canyon Road.
Close-Out Change Order under Agreement for the Serrano Avenue Rehabilitation Project from West City Limit to Weir Canyon Road February 24, 2026
During construction, major deficiencies were discovered in the existing asphalt structural section during cold mill operations, notably the lack of existing asphalt thickness and the exposure of large aggregates on the street. To increase integrity and structure of the new AC section and to maximize the Pavement Condition Index (PCI) and 20-year service life of the road, City staff modified the Project Plans and increased the thickness of the asphalt structural section from 3- inches to 6-inches, for an additional placement of 3,500 tons of asphalt concrete on Serrano Avenue between Oak Canyon Drive and Weir Canyon Road.
To date, the Project has utilized contingency funds under the authority delegated by Council Resolution No. 2024-096, which allows the Public Works Director to authorize change orders that collectively do not exceed 10% of the contract amount. Currently, the Project has expended 10% contingency for this project, equaling $419,254.60, and requires an additional .75% or $31,530.88 for the total compensation to All American Asphalt and the completion of the Project. Approval of this additional authority would increase the total project contingency to
10.75% or $450,785.48, exceeding the 10% limit authorized by the Resolution.
IMPACT ON BUDGET:
Adequate funding is available in the Public Works Department’s Fiscal Year 2025/26 restricted transportation funds to support this recommendation.
Respectfully submitted,
Rudy Emami
Director of Public Works
Attachment:
1. Close-Out Change Order No. 1