BERNAL INVESTMENT VALLEY AVENUE EXTENSION

Plans at any time prior to acceptance of the Improvements prove to be inadequate in any material respect, City agrees to make such changes as are necessary to accomplish the work. c. Contractor's Right of Entry, BIC shall require any contractors or subcontractors performing work related to the Underpass Project to execute the Contractor's Right of Entry attached to the New Public Road Crossing Agreement and provide the insurance required in Exhibit B-1 to the New Public Road Crossing Agreement. d. Ins ection. City shall inspect all Improvements and BIC shall pay City the cost of such inspection as fixed by City Ordinance. No periodic or progress inspection or approval shall bind the City to accept the Improvements or to waive any breach of this Agreement. For the inspection of the Railroad Improvements only, which involves a specialty bridge inspection firm as well as a City inspector, BIC shall pay the costs of the specialty bridge inspection firm and two percent (2%) of the value of the work (rather than four percent) for City inspection services. The City Engineer has tentatively fixed the cost of the City inspection for the Railroad Improvements (2% of the value of the Railroad Improvements) at $14,411, in addition to the costs of the specialty bridge inspection firm. 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 $55,838, excluding the BIC Channel Relocation Improvements with that estimate to be set forth in a subsequent amendment to the Agreement. The amount due upon the issuance of the first permit to construct the Railroad Improvements or Roadway Improvements is as follows: $70,249. Upon receipt of an invoice from the specialty bridge inspection firm, BIC shall pay the City the invoiced amount within twenty (20) days. e. Soils Report. Unless otherwise waived by the City Engineer, BIC shall provide a preliminary soils report as required by Section 66490 of the Government Code. The data shall be compiled by a qualified soils testing engineer without expense to the City. FIRST AMENDMENT TO VALLEY AVENUE EXTENSION UNDERPASS AGREEMENT Page 3 of 8