Evaluated the water heater. All plumbing code updates are properly installed and everything looks great. In our professional opinion a tempering valve does not need to be installed on the water heater. It is not a code requirement or even something that is done with water heaters. The water heater was set to low, causing temps below 120. We turned it up to the B setting, which should bring the temp up. As far as the concern of bacteria, there is approximately 3-5 ppm of chlorine in city water, which should be adequate to keep the water heater clean.