08/31/26
Mike Kitko
Newton Construction & Management, Inc.
PO Box 3260
San Luis Obispo CA 93403
Main Office Phone | (805) 544-5583
David A. Sams Consulting
Municipal Golf Operations Advisor
City of San Leandro
14200 Chapman Road
San Leandro, CA 94578
Subject: #26037 Monarch Bay Clubhouse Remodel | Request for Owner Change Order Due to Unforeseen Conditions (Revised 08/31/26) Dear David,
During construction, several unforeseen conditions and owner-requested improvements were identified that require additional work beyond the original contract scope. These items are necessary to maintain project progress, address concealed conditions discovered during demolition, and complete the desired building enhancements.
Key Change Order Items
1. Prevailing Wage Rate Increase
Effective June 30, 2026, State prevailing wage rates increased, resulting in additional labor costs impacting carpentry, painting, and general labor activities associated with the project. The estimated subcontractor cost increase is $17,690.00.
Change Order Justification
This change order request is for the California prevailing wage rate increases that became effective on June 30, 2026. The project's original subcontractor pricing was developed before the wage increase and was based on the anticipated contract award and construction start schedule. However, the project required an extended period of estimating, value engineering, Owner and Gordian review, and final scope approval before award. As a result, construction could not proceed until after the new prevailing wage rates became effective, requiring the contractor and subcontractors to perform the approved work at higher State-mandated labor rates. These increased costs 08/31/26
were beyond the control of Newton Construction and its subcontractors, which are directly attributable to the project approval timeline, and do not include any additional scope, material cost increases, equipment costs, productivity impacts, or schedule-related expenses. Newton Construction respectfully requests reimbursement of these unavoidable labor escalation costs to maintain the originally intended project pricing and ensure fair compensation for the approved scope of work.
2. Dry Rot Repairs
Extensive concealed dry rot was discovered during demolition and investigation at the west elevation, service yard enclosure, and rooftop HVAC equipment screen wall. Repairs include replacement of damaged framing, fascia, trim, sheathing, wall components, and structural wood members necessary to restore the affected areas and provide a suitable substrate for the new exterior finishes. The estimated cost for these repairs is $41,382.40.
Change Order Justification: Concealed dry rot conditions were not visible prior to demolition and could not have been reasonably identified during bidding. Repairs are required to restore the structure and provide a suitable substrate for the new exterior finishes.
3. Electrical Upgrades
3.1 Sheathing Removal and Reinstallation
Additional demolition and reconstruction work is required to provide access for installation of electrical conduit serving the new awnings and sign lighting. This scope includes removal and reinstallation of exterior plywood sheathing, temporary protection, cleanup, and associated labor. The estimated sheathing removal and reinstallation cost is $6,575.80.
Change Order Justification:
Additional demolition and reconstruction work is required to provide access for installation of electrical conduit associated with the new awnings. This work was not included in the original contract scope and is necessary to accommodate the electrical upgrades.
08/31/26
3.2 Exterior Sign Lighting
The project includes installation of six new LED sign lights mounted on the exterior awnings to illuminate building signage. Work includes fixtures, wiring, conduit, electrical connections, testing, and coordination with awning installation. The sign lighting will be connected to the existing exterior lighting circuit. The estimated cost is $13,505.40.
Change Order Justification:
Installation of the exterior sign lighting was not included in the original contract scope and is required to provide illumination for the new awnings and associated Monarch Bay logos.
3.3 Electrical Upgrade Costs
$6,575.80 + 13,505.40 = Electrical Upgrade Cost, $20,081.20
4. Summary of Costs
These supplemental items are the result of concealed field conditions discovered during demolition, increases in mandated prevailing wage rates, and enhancements required to complete the electrical and architectural features of the project. The combined subcontractor estimated value of the supplemental work.
Dry Rot Repair Cost $41,382.00
Electrical Upgrade Cost +$20,081.20
Sheathing Replacement/Electrical Upgrade Cost $61,463.20 $61,463.20
Total Prevailing Wage Cost Increase + $17,690.00
ESTIMATED GENERAL CONTRACTOR’S TOTAL COST $79,153.00
Conclusion and Request for Approval
Newton Construction respectfully requests the Owner's review and written approval of this change order proposal so that the additional work may proceed without delay, and the project schedule can be maintained. The requested costs are attributable to unforeseen field conditions discovered during demolition, Statemandated prevailing wage increases, and owner-requested electrical improvements necessary to complete the project as intended. Timely approval will allow procurement, scheduling, and completion of the additional work in a coordinated 08/31/26
manner while minimizing potential impacts to project progress and overall completion. The total amount of the change order request is $79,153.00. We appreciate your consideration and are available to discuss any questions regarding the scope or associated costs.
Thank you.
Sincerely,
Mike Kitko
Estimator | Project Superintendent | Project Manager | JOC Division - Bay Area 408-591-5874 | Cellular
[email protected] | Email
Newton Construction & Management, Inc.
805-544-5583 | Main Office
805-544-5584 | Fax
2436 Broad St. | San Luis Obispo, CA 93401
CA License # 783608 | DIR # 1000001399
https://www.newtonconstruction.com/ | Website
Change Event Revenue Cost
CE Number - Title Status Scope Type Change Reason ROM Cost ROM Over/Under 003 - Electrical Upgrades Open Out of Scope Owner Change Client Request $20,081.20 $16,460.00 $3,621.20 002 - Dry Rot Repair - All Elevations Open Out of Scope Owner Change Existing Condition $41,382.40 $33,920.00 $7,462.40 001 - Prevailing Wage Increase Open Out of Scope TBD Existing Condition $17,690.00 $17,690.00 $0.00 Grand Totals $79,153.60 $68,070.00 $11,083.60
Newton Construction and Management
Printed on Mon Aug 31, 2026 at 12:11 pm PDT
Job #: 26037 Monarch Bay Clubhouse Renovations
13800 Monarch Bay Dr.
San Leandro, California 94577
(510) 980-1148
Newton Construction and Management
2436 Broad Street
San Luis Obispo, California 93401
P: (805) 544-5583
Project: 26037 - Monarch Bay Clubhouse Renovations
13800 Monarch Bay Dr.
San Leandro, California 94577
P: (510) 980-1148
CHANGE EVENT #001 - Prevailing Wage Increase
Origin:
Date Created: 8/14/2026 Created By: Mike Kitko
Status: Open Scope: Out of Scope
Type: TBD Change Reason: Existing Condition
Description:
REQUEST FOR CHANGE ORDER
Increase in Prevailing Wage Rates as of 06/30/26.
1) Work to be completed during regular hours on PW wages. 2) Added cost for Prevailing Wage Increase 6.30.2026-Labor Cost, $1,634 3) Added cost for Prevailing Wage Increase 6.30.2026-Carpentry Cost, $13,814 4) Added cost for Prevailing Wage Increase 6.30.2026-Paint Cost, $2,242 ESTIMATED TOTAL COST INCREASE IN PREVAILING WAGE RATES, $17,690.00.
Attachments: #25054 Letter-David Sams- Prevailing Wage Change 07.20.26.pdf
CHANGE EVENT LINE ITEMS
Revenue Cost
Budget Code Vendor / Contract ROM Prime PCO Latest
Price ROM RFQ Commit. LatestCost
Over/
Under
Budget
Mod.
07-4600.CO
Siding.Change Order
San Patricio Painting $17,690.00 $17,690.00 $17,690.00 $17,690.00 Description:
Prevailing Wage Increase
Grand Totals $17,690.00 $0.00 $17,690.00 $17,690.00 $0.00 $0.00 $17,690.00 $0.00 $0.00 Newton Construction and Management Page 1 of 1 Printed on: 8/31/2026 at 12:07PM PDT Newton Construction and Management
2436 Broad Street
San Luis Obispo, California 93401
P: (805) 544-5583
Project: 26037 - Monarch Bay Clubhouse Renovations
13800 Monarch Bay Dr.
San Leandro, California 94577
P: (510) 980-1148
CHANGE EVENT #002 - Dry Rot Repair - All Elevations
Origin:
Date Created: 8/12/2026 Created By: Mike Kitko
Status: Open Scope: Out of Scope
Type: Owner Change Change Reason: Existing Condition
Description:
REQUEST FOR CHANGE ORDER
Additional Scope of Work – Dry Rot Repair
Provide additional labor, materials, equipment, supervision, and disposal necessary to perform additional dry rot repairs resulting from concealed deteriorated conditions discovered during demolition. The additional work includes:
• Ground Level: Removal and replacement of approximately 640 square feet of dry rot-damaged wood framing, sheathing, trim, and related components located throughout all exterior elevations of the clubhouse.
• Ground Level: Repair and replacement of deteriorated wall sections, structural framing members, columns, and the service yard enclosure as required to restore the affected areas.
• Ground Level: Removal and replacement of approximately 66 linear feet of deteriorated fascia board within the service yard area. • Service Yard Wall: Removal and replacement of approximately 15 linear feet of upper 2x4 wall plates exhibiting dry rot damage. • Service Yard Wall: Removal and replacement of approximately 15 linear feet of fascia and associated plywood sheathing at affected wall sections. • Service Yard Wall: Removal and replacement of one (1) 4x4x8 pressure-treated wood post at the corner wall location. • Roof on 3
rd Level: Removal and replacement of dry rot-damaged framing and sheathing at the third-level rooftop decorative screen enclosure surrounding the HVAC equipment, including approximately 101 square feet of wood repair and replacement. • Roof on 3
rd Level: Removal and replacement of approximately 24 linear feet of deteriorated 2x4 framing members within the rooftop screen enclosure. • All Areas: Installation of new materials to match existing construction and preparation of repaired surfaces for subsequent waterproofing, siding, trim, and finish installation by others or as specified in the contract documents.
This work is required to address concealed dry rot conditions that were not visible prior to demolition and are beyond the original contract scope.
ESTIMATED TOTAL COST FOR DRY ROT REPAIR, $41,382.40
Attachments: 20260813_114253.jpg, 20260813_131158.jpg, 20260813_131200.jpg, 20260813_131205.jpg, 20260813_131205(0).jpg, 20260813_131209.jpg, 20260813_131235.jpg, 20260813_131242.jpg, 20260813_131317.jpg, 20260813_131438.jpg, 08-12-26 - Job Site Photos (10).jpg, 08-12-26 - Job Site Photos (7).jpg, 08-12-26 - Job Site Photos (6).jpg
CHANGE EVENT LINE ITEMS
Newton Construction and Management Page 1 of 2 Printed on: 8/31/2026 at 11:09AM PDT Revenue Cost
Budget Code Vendor / Contract ROM Prime PCO Latest
Price ROM RFQ Commit. LatestCost
Over/
Under
Budget
Mod.
07-4600.CO
Siding.Change Order
San Patricio Painting $41,382.40 $41,382.40 $33,920.00 $33,920.00 Description:
Dry Rot Repair
Grand Totals $41,382.40 $0.00 $41,382.40 $33,920.00 $0.00 $0.00 $33,920.00 $7,462.40 $0.00 Newton Construction and Management Page 2 of 2 Printed on: 8/31/2026 at 11:09AM PDT Newton Construction and Management
2436 Broad Street
San Luis Obispo, California 93401
P: (805) 544-5583
Project: 26037 - Monarch Bay Clubhouse Renovations
13800 Monarch Bay Dr.
San Leandro, California 94577
P: (510) 980-1148
CHANGE EVENT #003 - Electrical Upgrades
Origin:
Date Created: 8/14/2026 Created By: Mike Kitko
Status: Open Scope: Out of Scope
Type: Owner Change Change Reason: Client Request
Description: REQUEST FOR CHANGE ORDER
ADDITIONAL WORK TO CUT OUT AND PATCH BACK SHEATHING
Provide labor and materials to remove and reinstall plywood sheathing at the west elevation as required to allow electrical conduit installation for the electrician for the new light fixtures that will be installed above the awnings. Work includes demolition, temporary protection, reinstallation of sheathing upon completion of electrical work. Includes all preparation, mobilization, cleanup, and debris disposal.
ADDITIONAL LIGHT FIXTURES ABOVE AWNINGS
Provide all labor, materials, equipment, and supervision necessary to furnish, wire, and install six (6) exterior sign lights, consisting of two (2) lights mounted on each of the three (3) awnings located on the exterior of the building. Fixtures shall be Barn Light Electric Fire Chief LED Sign Lights with the following specifications: • Gooseneck Arm: G10 • Shade Finish: M305 Forest Green • Arm Finish: Match Shade Finish • Swivel Knuckle: Yes • Output: 1,250 Lumens • Color Temperature: 3000K. Work includes all required wiring, conduit, electrical connections, mounting hardware, fixture installation, testing, startup, cleanup, and coordination with awning installation to provide a complete and operational exterior sign lighting system. Notes: • Sign lighting shall be powered from the existing exterior sconce lighting circuit on the building. • Scope does not include modifications to or programming of the existing lighting timeclock system. • Electrical work is based on utilizing existing power availability at the exterior sconce lighting locations.
ESTIMATED TOTAL CHANGE ORDER COST, $20,081.20
Attachments: MKT-0025_-_Barn_Light_Electric_Finishes_-_REV_B.pdf, MKT-0018_-_Gooseneck_Specifications_-_REV_B.pdf, INS-0033_-_Gooseneck_Fixture_with_Dusk-toDawn_Photocell_-_Rev_A.pdf, SPS-0530_-_Fire_Chief_Nautical_LED_Sign_Light_-_Rev_C__1_.pdf, INS-0001_-_Gooseneck_Fixture_-_Rev_T.pdf, INS-0028_- _Gooseneck_Fixture_with_Heavy_Duty_Backing_Plate_-_Rev_C.pdf
CHANGE EVENT LINE ITEMS
Revenue Cost
Budget Code Vendor / Contract ROM Prime PCO Latest
Price ROM RFQ Commit. LatestCost
Over/
Under
Budget
Mod.
26-0500.CO
Electrical Rough-In.Change Order
Benjamin Electric Co. $13,505.40 $13,505.40 $11,070.00 $11,070.00 Description:
Electrical Upgrades
07-4600.CO San Patricio Painting $6,575.80 $6,575.80 $5,390.00 $5,390.00 Newton Construction and Management Page 1 of 2 Printed on: 8/31/2026 at 11:41AM PDT Revenue Cost
Budget Code Vendor / Contract ROM Prime PCO Latest
Price ROM RFQ Commit. LatestCost
Over/
Under
Budget
Mod.
Siding.Change Order
Description:
Cut Out and Patch Sheathing
Grand Totals $20,081.20 $0.00 $20,081.20 $16,460.00 $0.00 $0.00 $16,460.00 $3,621.20 $0.00 Newton Construction and Management Page 2 of 2 Printed on: 8/31/2026 at 11:41AM PDT