BERNAL INVESTMENT VALLEY AVENUE EXTENSION

City shall meet with BIC about the specialty bridge inspection consultant proposals before determining the most qualified proposer and negotiating a contract price to discuss qualification issues with BIC. City shall again meet with BIC before making a recommendation for award of a contract to a bridge inspection consultant to discuss pricing issues with BIC. The costs of inspection for the remaining Improvements shall be four percent (4%) of the value of the work. The City Engineer has tentatively fixed the inspection costs for this remaining work at $123,052. The amount due upon the issuance of the first permit to construct the Railroad Improvements or Roadway Improvements is as follows: $161,650. Upon receipt of an invoice from the specialty bridge inspection firm, BIC shall pay the City the invoiced amount within twenty (20) days. e. No change. f. Security. Upon execution of this Second Amendment, BIC shall present to the City improvement security as defined in Section 66499 of the Government Code of the State of California. Any additions, alterations or modifications to this Agreement or the Plans shall not release any surety on the improvement security given in connection with this Agreement. The improvement security as approved by the City Attorney, shall consist of the following as determined by the City: cash deposit made with the City; bonds by duly authorized corporate sureties admitted to transact surety business in the State of California; or instruments of credit from financial institutions subject to regulation by state or federal government. BIC shall provide the following: i. Security in the amount of 100% of the total estimated cost of the Improvements to secure faithful performance of the Agreement as amended; ii. Security in the amount of 100% of the total estimated cost of the Improvements to secure payment for labor and materials; and iii. Security in the amount of 10% of the total estimated cost of the Improvements to secure maintenance obligations for a period of one year. The total estimated cost of Improvements is: $5,256,244. In the event of any material breach of this Agreement by BIC, after the City has provided BIC with written notice of the breach and an opportunity to cure the breach and BIC has failed to cure the breach, City may take over completion of the Improvements and prosecute the same to completion by any method the City deems advisable. Said work shall be for the account and at the expense of the BIC. BIC shall be liable to the City for any excess costs or damages suffered by the City. 3