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AGREEMENT THE CITY OF REDWOOD CITY, a charter city and municipal corporation in the State of California (the "City"), and GELCO SERVICES, INC. of Salem, Oregon, (the "Contractor"), for the consideration hereinafter stated, hereby agree as follows: 1. Contractor shall perform everything required to be performed, shall provide and furnish all of the labor, equipment, materials, and tools to perform, within ninety (90) calendar days from the date of the NOTICE TO PROCEED, the following work: 2002-2003 SEWER MAIN REPLACEMENT PROJECT in strict accordance with the Plans, Contract Documents and Specifications pertaining thereto and signed by the Manager, Engineering and Construction of Redwood City, which Documents are incorporated herein and made a part of this Agreement as if herein fully set forth. 2. City shall pay to Contractor, as full consideration for the faithful performance by Contractor of the aforementioned work, the amount of Five Hundred Fifty Eight thousand Eight Hundred Sixty One and 55/100 dollars ($558,861.55) computed in accordance with Contractor's accepted Proposal dated December 18, 2002, which accepted Proposal is incorporated herein by reference thereto as if herein fully set forth. 3. All of the work to be done shall be done under the direction and supervision of, and to the approval of, City or its authorized representative, and the work shall be done in the best workmanlike manner, conforming strictly to the provisions of the specifications and plans made thereof. 4. (a) Contractor shall comply with all applicable provisions of Section 1810 to 1815, inclusive, of the California Labor Code relating to working hours. Contractor shall, as a penalty to City, forfeit Twenty five and No/100 Dollars ($25.00) for each worker employed in the execution of the Contract by Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one (1) calendar day and 40 hours in any one (1) calendar week, unless such worker receives compensation for all hours Worked in excess of eight (8) hours at not less than 1-1/2 times the basic rate of pay. (b) Pursuant to the provision of California Labor Code, Sections 1770 et seq. Contractor and any subcontractor under him shall pay not less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations. Pursuant to the provisions of California Labor Code Section 1773.2, Contractor is hereby F:Atty/Agr/Agr. 085 010303 1