March 17, 2026
Economic Development
Richmond Housing Authority (RHA)
DATE: March 17, 2026
TO: Chair Martinez and Members of the Board of
Commissioners of the Richmond Housing Authority
(RHA)
FROM:
Nannette Beacham, Director of Economic Development
Antoinette Terrell, RHA Executive Director
Gregory Palomino, Administrative Assistant
Subject:
Contract Amendment No. 1 with RK Roofing and
Construction Inc
FINANCIAL IMPACT: Gutter replacement and associated dry-rot repairs at Nystrom Village will be funded through the U.S.
Department of Housing and Urban Development (HUD)
annual allocation of Operating Subsidy and Capital Fund.
Due to the discovery of previously concealed dry rot and the required addition of roof-edge flashing, this
amendment increases the total not-to-exceed amount by
$322,000, from the original contracted amount of
$270,000 to a new not-to-exceed amount of $592,000.
Funding is included within the approved fiscal year 2025- 2026 RHA Capital Fund budget (Account String:
42141191 – 400701).
PREVIOUS COUNCIL
ACTION:
April 15, 2025
STATEMENT OF THE
ISSUE:
The Richmond Housing Authority entered into a contract
with RK Roofing and Construction, Inc. to perform gutter replacement services based on estimated conditions at
the time of contract execution. During the course of work, previously concealed dry rot and related deterioration
were discovered, requiring additional repair work. As a result, an amendment is necessary to increase the
AGENDA
REPORT
March 17, 2026
contract payment limit and extend the contract term to
allow for completion of the required work.
RECOMMENDED ACTION:
ADOPT a resolution to APPROVE the first contract
amendment with RK Roofing and Construction, Inc. for
gutter replacement at the Nystrom Village property,
increasing the payment limit by $322,000, for total
payment limit of $592,000, and extending the term
expiration through June 30, 2027 – Economic
Development Richmond Housing Authority (Nannette
Beacham/Antoinette Terrell/Gregory Palomino 510-621-
1300).
DISCUSSION:
On April 15, 2025, the Richmond Housing Authority (RHA) entered into a contract with RK Roofing and Construction, Inc. to perform gutter replacement work at Nystrom Village (Attachment 1). The original scope of work included removal and replacement of existing gutters and downspouts, installation of new fascia boards, and limited soffit repair as needed, based on visible conditions and standard assumptions at the time of contract execution.
During the course of performing gutter replacement work on Block A units, RK Roofing discovered previously concealed dry rot and deterioration affecting rafter tails and related roof edge components. These conditions were not visible until the existing gutters and fascia were removed. In areas impacted by dry rot, new fascia boards could not be securely fastened because the deteriorated lumber was unable to properly hold fasteners, necessitating additional repair work to ensure the integrity and longevity of the installation.
In addition, during removal of the existing gutters and fascia, RK Roofing observed that roof edge flashing (nosing) was missing from portions of the existing roof assemblies.
Roof edge flashing is required to properly direct water from the roof surface into the gutter system and to protect the joint between the roof sheathing and fascia (Attachment 2). The absence of this flashing allowed water to drain behind the fascia boards over time, contributing to the deterioration and dry rot discovered during construction. Installation of new roof edge flashing is necessary to ensure proper drainage, prevent future water intrusion, and avoid recurrence of the same conditions following gutter replacement.
To address these conditions and complete the work in accordance with applicable building codes and best construction practices, additional work beyond the original scope is required. This includes trimming and sistering dry rotted rafter tails to create a
March 17, 2026
secure nailing surface for new fascia boards, as well as installing new roof edge flashing to properly direct water into the gutter system which are both necessary to avoid reoccurrence of the same conditions following replacement.
Completion of gutter replacement and associated repairs for Block A resulted in significantly higher costs than initially anticipated due to the extent of concealed deterioration encountered. Following completion of Block A, RK Roofing evaluated the remaining blocks at Nystrom Village and observed similar dry rot conditions at Blocks B, C, and D. Based on these findings, it is anticipated that comparable repair work will be required across the remaining blocks in order to complete the project in a consistent and code-compliant manner.
As a result, the original contract authority of $270,000 is insufficient to complete the full scope of necessary gutter replacement and associated dry rot repairs across the project. The total estimated cost to complete the work for all blocks is approximately $592,000, requiring an increase in the contract’s not-to-exceed amount by $322,000.
Consequently, City staff are requesting that the City Council adopt a resolution approving a contract amendment with RK Rooking and Construction, Inc. to increase the payment limit and extend the contract term through June 30, 2027. This amendment is necessary to allow sufficient time to complete the expanded scope of work.
DOCUMENTS ATTACHED:
Attachment 1 – Original Contract
Attachment 2 – RK Roofing Photos
Attachment 3 – Resolution
Attachment 4 – Contract Amendment No.1