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BACKGROUND On June 16, 2015, City Council awarded the construction of the Recycled Water Infrastructure Expansion — Phase 1A Project, CIP No. 14126, to Ranger Pipelines, Inc. (Ranger) for $14,859,563, and also approved the total project budget of $17,359,925. As presented to City Council, the project is largely funded through the State's Clean Water State Revolving Fund (65 percent) and Proposition 1B grant (35 percent). The total project budget included a contingency in the amount of approximately $1.49 million. The Director of Engineering was authorized to approve and execute any required contract changes orders up to an amount equal to the contingency. On June 21 , 2016, City Council (as part of the CIP update) approved $600,000 from the Streets General Fund Capital Reserve to fund the full-lane-width paving that was determined by the State Water Resources Control Board (SWRCB) to be non-eligible for reimbursement from the loan and grant. The project plans and specifications required a more aesthetically pleasing full lane width paving in the roadway where recycled water pipeline was installed, while the SWRCB determined the loan and grant would only cover the expense of patching the actual trench line. On August 16, 2016, City Council approved change orders for Ranger to construct additional recycled water distribution pipeline in Gibraltar Avenue, from West Los Positas to Hacienda Drive, and improve the valve vault at the Tassajara Recycled Water Reservoir. In addition, Council approved a contract extension to RMC Water and Environment for the design of the Sports Park booster station and for purchase of the booster station by Ranger. The additional work was funded through the existing loan and grant funds. On April 18, 2017, City Council approved the location of the Sports Park booster station at Hardball Field C and change orders to Ranger for the procurement of the pre- packaged booster station from Patterson Pumps. The additional work was funded through the existing loan and grant funds. On January 16, 2018, City Council awarded the second phase of the project to install the Sports Park booster station to GSE Construction, Inc. (GSE) for an additional project expenditure of $381,661. The additional work was funded through the existing loan and grant funds. On July 27, 2018, the City Manager approved a First Amendment to the Agreement with Carlson Management; a First Amendment to the Agreement with Pacific Biology; and a Third Amendment to the Agreement with RMC Water and Environment for extension of the contract time. On October 30, 2018, the City Manager approved an additional expenditure of $27,000 to GSE for PG&E-related changes and the Fourth Amendment to the Agreement with Woodard & Curran Company (formally RMC Water and Environment) for $30,000 for additional design services. The additional work was funded through the existing loan and grant funds. Page 2 of 4