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4. Authorize the Director of Engineering to approve and execute project related change order(s) for a contingency amount not-to-exceed $259,600 (approximately 15 percent of the contract) for unforeseen yet necessary related work. 5. Authorize the City Manager to enter into a contract with CSI Services, Inc. for third- party coating specialty inspection for a not-to-exceed amount of $99,953. 6. Authorize the City Manager to enter into the contract amendment with MurrarySmith to provide additional design and construction support services for the not-to-exceed amount of$111,345. 7. Transfer $696,137 from the Ruby Hills — Additional Water Storage Project, CIP No. 15146, to the Bi-Annual Water Tank Corrosion Repairs Project, CIP No. 18127, and close out CIP No. 15146. FINANCIAL STATEMENT Funding identified in the CIP program totals $3.15 million. The anticipated total expenditure for this project is $2,339,928 (see Attachment 1). BACKGROUND In early 2018, the City performed routine bi-annual cleaning and maintenance of all water reservoir tanks within the water distribution system. This effort included having a consultant SCUBA dive each tank to inspect the interior corrosion prevention coating system. The inspections revealed the interior corrosion coating systems in the upper Ruby Hills tank, Moller Ranch tank, and Laurel Creek tank need to be replaced due to significant and widespread corrosion of the interior metal tank walls. In addition, it was determined that the tank access hatches, ladders, some of the tank vents, and the cathodic protection for the three tanks also need to be replaced. The condition of the upper Ruby Hills tank was expected. The condition discovered in the Moller Ranch tank and Laurel Creek tank was not expected. The upper Ruby Hills tank serves a large portion of the Ruby Hills development. Taking the tank out of service to perform maintenance has significant impacts on the water supply to the area residents. In April 2018, Quincy Engineers was hired to study how water could be supplied to the Ruby Hills area while the tank is out-of-service. The study revealed that bypass pumping could be used to supply water, but the study also showed this would only be effective during the winter months when water demand is low. The Moller Ranch and Laurel Creek water tanks are in the same hydraulic network. One tank can be taken out of service and the other tank can supply water to all area residents without the need for additional pumping. But again, this would only be effective during the winter months when the water demand is low. In October 2018, Quincy Engineers was then hired to develop the plans and specifications for the rehabilitation of the upper Ruby Hills, Moller Ranch, and Laurel Creek tanks. The plans include the necessary pumping modification for the Ruby Hill service area. The plans and specifications were completed, and the project went out to bid June 1, 2019, with a bid opening date of June 26, 2019. Page 2 of 5