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11 Staff Report - Geology and Geotechnical Peer Review~1 W N 0 !ps ~~•A:~OS COUNCIL AGENDA REPORT DATE: JUNE 5, 2007 TO: FROM: SUBJECT MEETING DATE: 6/18/07 ITEM NO: / MAYOR AND TOWN COUNCIL DEBRA J. FIGONE, TOWN MANAGER GEOLOGY AND GEOTECHNICAL PEER REVIEW FOR PRIVATE DEVELOPMENT PROJECTS ADOPT RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE A THIRD AMENDMENT TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT WITH GEOMATRIX CONSULTANTS, INC. TO EXTEND THE CONTRACT FOR ONE MORE YEAR TO PERFORM GEOLOGY AND GEOTECHNICAL PEER REVIEW FOR PRIVATE DEVELOPMENT PROJECTS RECOMMENDATION: Adopt resolution (Attachment 1) authorizing the Town Manager to execute a third amendment to the Professional Consultant Services Agreement (Exhibit A) with Geomatrix Consultants, Inc. to extend the contract for one more year to perform geology and geotechnical peer review for private development projects. BACKGROUND: The Town of Los Gatos has been using consultants to assist staff in the review of environmental, architectural, geology, and arborist issues related to private development projects. These consultant contracts are reviewed each year by the appropriate Town department and staff to ensure that staff is satisfied with the services provided and that Town residents receive quality service. PREPARED BY: KEVIN ROHANI Interim Director of Parks and Public Works NAENGINEERING\COUNCIL REPORTS\geomatrix.geo.peer.review.3rd.amend.to.agr61807..doc Reviewed by: Assistant Town Manager Town Attorney Clerk Administrator Finance Ac- Community Development PAGE 2 MAYOR AND TOWN COUNCIL SUBJECT. GEOLOGY AND GEOTECHNICAL PEER REVIEW FOR PRIVATE DEVELOPMENT PROJECTS JUNE 5, 2007 DISCUSSION: On October 23, 2002, the Town entered into a Professional Consultant Services Agreement with the firm of Geomatrix Consultants, Inc. to perform geology and geotechnical peer review services (Attachment 2). Their contract was extended in July, 2003 for two more years (Attachment 3). On June 20, 2005, Council approved a second amendment to the Agreement and extended the Agreement until June 30, 2007 (Attachment 4). The work that has been performed by Geomatrix Consultants, Inc. has been very helpful in processing various private development projects in the hillside area, and staff is pleased with the performance and work of this consultant. CONCLUSION: Staff recommends that Council adopt the attached Resolution authorizing the Town Manager to execute a third amendment to the Professional Services Agreement to extend the agreement with Geomatrix Consultants, Inc. for one more year. ENVIRONMENTAL ASSESSMENT: The project is Categorically Exempt pursuant to Sections 153010), 15303(e) and 15304(b) of the State CEQA guidelines. FISCAL IMPACT: The funding for the agreements for the geology and geotechnical peer review is provided by the deposit that the Town collects from project applicants. Attachments: 1. Resolution approving third amendment to the Professional Services Agreement (Exhibit A) with Geomatrix Consultants, Inc. 2. Original Agreement dated October 23, 2002 3. First Amendment to Agreement 4. Second Amendment to Agreement 5. New Schedule of Charges RESOLUTION RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING THIRD AMENDMENT TO THE AGREEMENT FOR PROFESSIONAL CONSULTANT SERVICES WITH GEOMATRIX CONSULTANTS, INC. FOR GEOLOGY AND GEOTECHNICAL PEER REVIEW FOR PRIVATE DEVELOPMENT PROJECTS WHEREAS, it is necessary for the Council to secure professional consultant services to provide assistance to the Town in the implementation of tasks related to the geology and geotechnicai peer review for private development projects; and WHEREAS, the Town Council has selected the firm of Geomatrix Consultants, Inc. to provide professional services in connection with the geology and geotechnical peer review for private development projects; and NOW, THEREFORE, IT IS RESOLVED that the Town Council of the Town of Los Gatos hereby approves the attached third Amendment to the Agreement (Exhibit A) for Professional Services with Geomatrix Consultants, Inc. to provide professional services in connection with the geology and geotechnical peer review for private development projects for one more year; and BE IT FURTHER RESOLVED that the Town Manager is hereby authorized and directed to execute said third Amendment to the Agreement on behalf of the Council. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos held on the 18th day of June, 2007, by the following vote: COUNCIL MEMBERS: AYES : NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA AITACHMENT 1 THIRD AMENDMENT TO AGREEMENT This THIRD AMENDMENT TO AGREEMENT is entered into this day of 200_, by and between the Town of Los Gatos, State of California, herein called "Town," and Geomatrix Consultants, Inc., herein called "[Consultant]." RECITALS A. Town and Consultant entered into a Professional Consultant agreement for geotechnical consultant services on October 23, 2002 ("Agreement"), a copy of which is attached hereto as (Attachment 2) and incorporated herein by reference. B. Town and Consultant entered into a first amendment to the agreement in July, 2003, ("Amendment to Agreement"), a copy of which is attached as (Attachment 3) and incorporated by reference. C. Town and Consultant entered into a second amendment to the agreement on June 20, 2005 ("Second Amendment to Agreement"), a copy of which is attached as (Attachment 4) and incorporated by reference. D. A third amendment to the Agreement is necessary to assist the Town in performing geology and geotechnical peer review for private development projects. AMENDMENT 1. The Agreement is hereby amended to extend the agreement for a period of one more year from July 1, 2007 through June 30, 2008. 2. The Agreement is amended to include the new schedule of charges (Attachment 5). 3. All other items and condition of the Agreement dated July, 2003 remain in full force and effect. IN WITNESS WHEREOF, the Town and Consultant have executed this third Agreement to the Agreement as of the date indicated on page one (1).Town of Los Gatos, by: Town of Los Gatos, by: Debra J. Figone, Town Manager Town of Los Gatos Recommended by: Kevin Rohani Interim Director of Parks and Public Works ATTEST: Town of Los Gatos, California Geomatrix Consultants, Inc. (Signature) (Print Name) (Address) Approved as to Form: Jackie Rose, Clerk Administrator Orry P. Korb, Town Attorney Revised: 11/04/04 N:\ENGINEERING\COUNCIL REPORTS\geomatrix.geo.peer.review.3rd.amend.to.agr61807..doe EXHIBIT A -L 'T-ICE OF THE TOW CLERK AGR_C~ AGREEMENT FOR GEOTECHNICAL CONSULTANT SF .4VICES iRD THIS AGREEMENT is entered into this day of October, 2002;i of Los Gatos, State of California, herein called "Town", and Geomatrix ConsnT&B46,4a in providing Geology and Geotechnical consulting services herein called "Consultant." RECITALS A. Town is considering undertaking activities to PROVIDE GEOLOGY AND GEOTECHNICA_T, SERVICES FOR TOWN OF LOS GATOS. B. Town desires to engage a Geotechnical consultant to provide consulting services to review, analyze, and comment on development projects; prepare geotechnical analyses and reports; conduct peer review of outside Geotechnical consultant reports, and staff public meetings because of Consultant's experience and qualifications to perform the desired work. C. Consultant represents and affirms that it is qualified and willing to perform the desired work pursuant to this Agreement. ° AGREEMENTS NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS.: - 1. Scope of Services. Consultant shall provide the.Geology and Geotechnical review. services as requested by the Town. Administrative Duties 1. When needed by Town, assess the potential geotechnical impacts associated with proposed development and redevelopment projects. This shall include .evaluating geotechnical reports and/or identifying mitigation measures and recommending requirements and conditions of approval. The reviews shall be based on the criteria used by Santa Clara County in their peer review process. H. When needed by Town, work-on special studies or projects including but not limited to: updating the Town's geologic hazards map, preparation of geologic/geotechnical checklists for application packets, emergency response and coordination, assistance with preparation/revision of hillside design guidelines, preparation of drawings and specifications, monitoring of landslide hazards and litigation support and expert witness testimony. III. When needed by Town, conduct field investigations, studies, and prepare reports related to geotechnical hazards and develop recommendations for mitigation measures. IV. When needed by Town, assist in the establishment and subsequent modification of Town's geotechnical-related ordinances, design guidelines, policies, and development fees. - ;ATTACHMENT 2 V. When needed by Town, attend meetings with Town staff, public officials, community leaders, developers, contractors and the general public. VI. When needed by Town, advise, support and assist Town departments, committees, commissions, and Town Council. In addition, act as a liaison between Town and Federal, State, and Regional agencies. , VII. When needed by Town, attend Town Council, Planning Commission, and special study session meetings when geotechnical issues and project applications with geotechnical considerations are being considered. VIII. As requested by Town, provide copies of draft and final draft work products of reports and studies prepared for Town. Consultant shall provide electronic file copies of these documents as needed. Other Miscellaneous Services IX. Town may occasionally have the need for other services not specifically listed in this document that the consultant has the necessary exp&rience and capabilities to provide. Town or Redevelopment Agency may authorize consultant to perform such selected services on an as-needed basis. 2. Time of Performance. The services of Consultant are for the period of October 14, 2002 to June 30, 2003. The Town will review the consultants performance at the end of the contract period and will have the option of renewing the contract. Should Town not renew a contract, the award and authorization of the contract shall automatically expire. Town shall give Consultant at least 15 days notice, prior to the cancellation or expiration of the contract. 3. Compliance with Laws. Consultant shall comply with all applicable laws, codes, ordinances, and regulations of governing federal, state and local laws. Consultant represents and warrants to Town that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Consultant to practice its profession. Consultant represents and warrants to Town that Consultant shall, at its sole cost. and expense, keep in effect or obtain at all times during the term of this Agreement any licenses, permits, and'approvals which are legally required for Consultant to practice its profession. Consultant shall maintain a Town of Los Gatos business license pursuant to Chapter 14 of the Code of Town of Los' Gatos. 4. Sole Responsibility. Consultant shall be responsible for employing or engaging all persons necessary to perform. the services under this Agreement. 5. Information/Report Handline. All documents furnished to Consultant by Town and all reports and supportive data prepared by Consultant under this Agreement are Town's property and shall be delivered to Town upon the completion of Consultant's services or at Town's written request. All reports, information, data, and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential until released by Town to the public, and Consultant shall not make any of the these documents or information available to any individual or organization not employed by consultants by Consultant or Town without the written consent of Town before such release. Town acknowledges st the reports to be prepared by Consult pursuant to this Agreement are for the purpose of evaluating a defined project, and Town's use of the information contained in the reports prepared by Consultant in connection with other projects shall be solely at Town's risk, unless Consultant expressly consents to such use in writing. Town further agrees that it will not 'appropriate any methodology or technique of Consultant which is and has been confirmed in writing by Consultant to be a trade secret of Consultant. 6. Compensation. Compensation for Consultant's professional services shall be based upon Town authorization for each peer review. Billing for each peer review shall be based on the Consultant's Schedule of Charges (attached hereto as Exhibit "B" and incorporated by reference herein). Billing shall be accompanied by a detailed explanation of the work performed by whom at what rate and on what date. Billing invoices submitted for payment must reference Town Purchase Order Number, and if applicable, the appropriate project address and Town Application Number (e.g. Also, plans, specifications, documents or other pertinent materials shall be submitted for Town review, even if only in partial or draft form. Payment shall be net thirty (30) days. Only one (1) purchase order number per invoice will be accepted. All invoices and statements to Town shall reference Town's purchase order number and be addressed as follows: Invoices: Town of Los Gatos Attn: Accounts Payable P.O. Box 655 Los Gatos, CA 95030 Statements: Town of Los Gatos Attn: Sandy Ortiz P.O. Box 655 Los Gatos, CA 95030 7. Availability of Records. Consultant shall maintain the records supporting this billing for not less than three (3) years following completion of the work under this Agreement. Consultant shall make these records available to authorized personnel of Town at Consultant's offices during business hours upon written request of Town. Project Manager. The Project Manager for Consultant for the work under this Agreement shall be Robert Wright. 9. Assignability and Subcontracting. The -services to be performed under this Agreement are unique and personal to Consultant. No portion of these services shall be assigned or subcontracted without the written consent of Town. 10. Notices. Any notice required to be given shall be deemed to be duly and properly given if mailed postage prepaid, and addressed to: To Town: To Consultant: John E. Curtis Gipd~, ;_7~ Tohrt _1 a Director of Parks and Public Works Vice President C~123/,o 5 Town of Los Gatos Geomatrix Consultants, Inc. P. O. Box 949 2101 Webster Street - 12`h Floor Los Gatos, CA 95030 -Oakland, CA 94612 Phone: (408)399-5774 Phone: (510) 663-4100 or personally delivered to Consultant to such address or such other address as Consultant designates in writing to Town. 11. Independent Contractor. It is understood that Consultant, in the performance of the work and services agreed to be performed, shall act as and be an independent contractor and not an agent or employee of Town. As an independent contractor he/she shall not obtain any rights to retirement benefits or other benefits which accrue to Town employee(s). With prior written consent, Consultant may perform some obligations under this Agreement by subcontracting, but may not delegate ultimate responsibility for performance or assign or transfer interests under this Agreement. Consultant agrees to testify in any litigation brought regarding the subject of the work to be performed under this. Agreement. Consultant shall be compensated for its costs and expenses in preparing for, traveling to, and testifying in such matters at its then current hourly rates of .compensation, unless such litigation is brought by. Consultant or is based on allegations of Consultant's negligent performance or wrongdoing. 12. Conflict of Interest. Consultant understands that its professional responsibilities is solely to Town. Consultant has and shall not obtain any holding or interest within Town of Los Gatos. .Consultant has no business holdings or agreements with any individual member of Staff or management of Town or its representatives nor shall it enter into any such holdings or agreements. In addition, Consultant warrants that it does not presently and shall not acquire any direct or indirect interest adverse to those of Town in the subject of this Agreement, and it shall immediately disassociate itself from such an interest should it discover it has done so and shall, at Town's sole discretion, divest itself of such interest. Consultant shall not knowingly and shall take reasonable steps to ensure that it does not employ a' person having such an interest in this performance of this Agreement. If after employment of a person, Consultant discovers it has- employed a person with a direct or indirect interest that would . conflict with its performance of this Agreement, Consultant shall promptly notify Town of this employment relationship, and shall, at Town's sole discretion, sever any such employment relationship. 13. Equal Employment Opportunity. Consultant warrants that it is an equal opportunity employer and shall comply with applicable regulations governing equal employment opportunity. Neither Consultant nor its subcontractors do and neither shall discriminate against persons employed or seeking employment with them on the basis of age, sex, .color, race, marital status, sexual orientation, ancestry, physical or mental disability, national origin; religion, or medical condition, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment & Housing Act. 14. Insurance. A. Minimum Scope of Insurance: Consultant agrees to have and maintain, for the duration of the contract, General Liability insurance policies insuring him/her and his/her firm to an amount not less than: one million dollars (S 1,000,000) combined single limit per occurrence for bodily injury, personal injury-and property damage. ii. Consultant agrees to have and maintain for the duration of the contract, an Automobile Liability insurance policy ensuring him/her and his/her staff to an amount not less than one million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage. iii. Consultant shall provide to Town all certificates of insurance, with original endorsements effecting coverage. Consultant agrees that all certificates and endorsements are to be received and approved by Town before work commences. iv. Consultant agrees to have and maintain, for the duration of the contract, professional liability insurance in amounts not less than $1,000,000 which is sufficient to insure Consultant for professional errors or omissions in the performance of the particular scope of work under this agreement. B. ' General Liability: I. Town, its officers, officials, employees and volunteers are to be covered as insured as respects: liability arising out of activities performed by or on behalf of Consultant; products-and completed operations of Consultant, premises owned or used by Consultant. This requirement does not apply to the professional liability insurance required for professional errors and omissions. ii. Consultant's insurance coverage shall be primary insurance. as respects Town, its officers, officials, employees and volunteers. Any insurance or self-insurances maintained by Town, its officers, officials, employees or volunteers shall be excess of Consultant's insurance and shall not contribute with it. iii. Any failure to comply with reporting provisions of the policies.shall not affect coverage provided to Town, its officers, officials, employees or volunteers. iv. Consultant's insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the insurer's liability. C. All Coverages: Each insurance policy required in this item shall b.e endorsed to state that coverage shall not be suspended, voided, canceled, reduced in coverage or in limits except afterthirty(30) days' prior.written notice by certified mail, return receipt requested, has been given to Town. Current certification of such insurance shall be kept on file at all times during the term of this agreement with Town Clerk. D. In addition to these policies, Consultant shall have and maintain Workers' Compensation insurance as required by California law and shall provide evidence of such policy to Town before beginning services under this Agreement. Further, Consultant shall ensure that all subcontractors employed by Consultant provide the required Workers' Compensation insurance for their respective employees. 15. Indemnification. Cor,, .i'tant shall save, keep and hold harmles, mlemnify and defend Town its officers, agent, employees and volunteers from all damages, liabilities, penalties, costs, or expenses in law or equity that may at any time arise or be set up because of damages to property or personal injuryreceived by reason of, or in the course of performing work which may be occasioned by a willful or negligent act or omissions of Consultant, or any of Consultant's officers, employees, or agents or any sub-consultant. 16. Waiver. No failure on the part of either party to exercise any right or remedy hereunder shall operate as a waiver of any other right or remedy that party may have hereunder, nor does waiver of a breach or default under this Agreement constitute a continuing waiver of a subsequent breach of the same or any other provision of this Agreement. 17. Governine Law. This Agreement, regardless of where executed, shall be governed by and construed to the laws of the State of California. Venue for any action regarding this Agreement shall be in the Superior or Municipal Court of the County of Santa Clara. 18. Termination of Agreement. Town and Consultant shall have -the right to terminate this agreement with or without cause by giving not less than fifteen (15) days written notice of termination. In the event of termination, Consultant shall deliver to Town all plans, files, documents, reports, performed to date by Consultant. In the event of such termination, Town shall pay Consultant an amount that bears the same ratio to the maximum contract price as the work delivered to Town bears to completed services contemplated under this Agreement pursuant to the noted Scope of Services and Exhibit A hereto, unless such termination is made for cause, in which event, compensation, if any, shall be adjusted in light of the particular facts and circumstances involved in such termination. 19. Amendment. No modification, waiver, mutual tenmination, or amendment of this Agreement is effective unless made in writing and signed by Town and Consultant. 20. Disputes. 1n any dispute over any aspect of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, including costs of appeal. 21. Entire Agreement. This Agreement, including Exhibits A and B, constitutes the complete and exclusive statement of the Agreement between Town and Consultant. No terms, conditions, understandings or agreements purporting to modify or vary this Agreement, unless hereafter made in writing and signed by the party to be bound, shall be binding on either party. IN WITNESS WEER. ,'r, Town and Consultant have executes 1s Agreement as of the date indicated.on page one (1). Town of Los Gatos Debra J. F' one, wn Manager Town of Los Gato Geomatrix,.Consultants, Inc. i y Egan, Vice P sident Recommended by: (~Z Jo E Curtis Di ec r of Parks and Public Works ATTEST: Clerk of Town of. Los Gatos,,_ Los Gatos, California y c~ Marios ove, Town Cle k /67-gA v. Approved as to Form: O orb, Town Attorney AMENDMENT TO AGREEMENT •:',r F1CE OF THE TOWN ,CL.Fjth =MGR 0C:~B This AMENDMENT TO AGREEMENT is entered into this 4kof by and between the Town of Los Gatos, State of California, herein called "Town, an , Consultants, Inc., herein called "Consultant." ORD. RFC RECITALS ~S A. Town and Consultant entered into an agreement for geotechnical consultant services in October, 2002 ("Agreement"), a copy of which is attached hereto as (Attachment 2) and incorporated herein by reference. AMENDMENT The Agreement is hereby amended to extend the agreement for a period of two years from July 1, 2003 to June 30, 2005. 2. The consultant is prohibited from performing any work for private clients in the Town of Los Gatos for the-period of the contract. All other terms and conditions of the Agreement dated October, 2002 remain in full force and effect. IN WITNESS WHEREOF, the Town and Consultant have executed this Amendment to the Agreement as of the. date indicated on this document. Town of Los Gatos, by: Debra J. Figone, Town Manager Recommended by- John E. Curtis Director of Parks and Public Works By: Geomatrix Consultants, Inc. ZC (Si ature) (Print me) Approved as to Form: Orry P. Korb; Town Attorney ATTEST: r ,-ILL To le k ATTACHMENT 3 CLERK DEPARTMENT AGR dS U 95 111H SECOND AMENDMENT TO AGREEM' REC RESO This SECOND AMENDMENT TO AGREEMENT is entered into this '7 day of 2005, by and between the Town of Los Gatos, State of California, herein called "Town," aConsultants, Inc., herein called "[Consultant/Contractor]." RECITALS A. Town and Consultant entered into an agreement for geotechnical consultant services in October, 2002 ("Agreement"), a copy of which is attached hereto as (Attachment 1) and incorporated herein by reference. - { B. 'Town and Consultant entered into a first amendm'nt to the agreement for geotechnical consultants services in July, 2003 ("Amendment to Agreement"), a copy of which is attached hereto as (Attachment 2) and incorporated by reference. AMENDMENT 1. The Agreement is hereby amended to extend-the agreement for a period of two years from July 1., 2005 through June 30, 2007. 2. The consultant is prohibited from performing any work for private clients in the Town of Los Gatos for the period of the contract. 3. All other terms and conditions of the Agreement of October, 2002 remain in full force and effect. ATTACHMENT 4 IN WITNESS WHEREOF, the Town and Consultant have executed this second Agreement to the Agreement as of the date indicated on page one (1). Town of Los Gatos, by: Debra J. Figone, Town Manager Town of Los Gatos By: Geomatrix Consultants, Inc. 2101 Webster Street - 12`h Floor Oakland, CA 94612 h Recommended by: Jo E. urtis Direct of Parks and Public Works .7o h n A . Ega ri (Print Name) Approved as to Form: ~:>P- _V P. Korb, Town Attorney ,06 ATTEST: i1 Marlyn Ras usseri, Clerk Administrator ~~Q~~ GEOMATRIX CONSULTANTS, INC. SCHEDULE OF CHARGES Effective January 26, 2007 The Schedule of Charges applies to all services provided by and/or through Geomatrix Consultants. The schedule of charges may be revised periodically, as conditions require. LABOR: Labor charges are for technical work, including technical typing, editing, and graphics involved in the preparation of reports and correspondence and for the time associated with production of such documents. Direct charges are not made for secretarial service, office management, accounting, and maintenance, because these items are included in overhead. Labor category charge rates for Geomatrix Consultants, Inc. are listed below. Regional and other factors may influence rates charged for certain individuals. Rates for individuals will be provided on request. LABOR CATEGORY HOURLY RATE Principal $ 200 - 350 Senior Consultant 200 - 350 Senior Decision Analyst 200 - 300 Senior II 180 - 200 Senior I 170 GIS Programmer/Web Designer 135 Project II 130 Project I 120 Field Engineer 112 Staff II 110 Staff I 100 Senior Technician 85 Field Technician 80 CAD/Graphic Designer 90 Project Assistant 70 Technical Editor 85 Support Staff 62 Time spent in travel in the interest of the client will be charged at hourly rates, except that no more than 8 hours of travel time will be charged in any day. When it is necessary for an employee to be away from the office overnight, actual costs, or a negotiated rate, will be charged for living expenses. Employee expenses will be charged at cost plus 15%. Charges for expert witness services will be at the hourly rates shown. However, for depositions and for court appearances, the rate is twice the amount shown. There will be a 4-hour minimum per-day charge for depositions and an 8-hour minimum per-day charge for court appearances. Special accounting services will be billed at the Support Staff rate. COMMUNICATIONS CHARGE: Four percent (4%) of Labor charges for routine photocopying, regular mail postage, and fax/telephone/cellular phone usage. OUTSIDE SERVICES: Outside services will be charged at cost plus 15%. Common outside items include: consultants, drilling services, laboratory testing, equipment and vehicle rental, printing and photographic work, postage and shipping, conference calls, travel and transportation. REIMBURSABLES: Non-routine Photocopies $0.12/sheet Specialized Computer Applications $25.00/hour Field equipment, vehicles, specialized reproduction On request INVOICES: Invoices will be rendered at least monthly, either as a final or partial billing, and will be payable upon receipt. An additional late payment charge of 11/2% per month or the maximum charge allowed by law, whichever is less, will be payable on accounts not paid within 30 days from billing date. Geomatrix Consultants is an Equal Opportunity/Affirmative Action Employer, and as such adheres to all applicable federal, state, and local laws and regulations in this regard. I:\firmMgmt\corporate\schedulesofcharges\SCHOFCHG_1-26-07_FINAL.doc ! ATTACHMLNT 5 i