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Rate Schedule Notes • Prevailing Wage- Construction inspection activities are subject to prevailing wage requirements. State of California DIR requires us to pay all prevailing wage employees a 12.5%shift differential for all shifts that begin after 2:00pm. (See pages 4 and 5.) Note the difference between the rates for 1st shift and 2nd shift. Nowhere does it say that 2nd shift rates don't apply if the shift is "regular". If we have night workers on this job and we can only bill day rates, we will lose money on this job. • Escalation- Rates escalate on Jan 1. We agree to use the CPI that the City of Pleasanton uses for annual rate escalation with a 3%maximum. • Fully Loaded Rates- Fully loaded means wage, overhead,fee, vehicles,cell phones, internet access and normal field equipment such as vehicle, mobile phone, laptop, camera, and safety equipment including PPE, measuring devices, etc. Any extensive reproduction or delivery service charges shall be billed at actual. Extensive reproduction charges include such things as printing community flyers and handouts, banners for special events, etc. The production of these kinds of material run into the hundreds and thousands of dollars. These costs are not in our OH—they are direct project costs.Any extensive reproduction or delivery shall be proposed to the City of Pleasanton in writing for approval; and and shall be billed at actual cost. All other normal day-to-day printing and delivery is included in OH. • Subcontractors- Subcontractor mark up is 5%. • City Offices- We understand the City of Pleasanton will provide office space which includes desk, phone,fax, internet access and connection to printers. • Minimum Daily Charge- We do not have a minimum daily charge, or call out minimum, but we do expect that our inspectors will be working full-time on City assignments. We recognize that there may be occasions where our staff may not work a full day, but it is not our intention that our inspectors will be"on-call" to report to assignments for a few hours each day, on an as-needed basis.The only shift premium applied is the mandatory DIR shift differential (discussed above)of 12.5%for any shift beginning after 2PM. • Specialty Equipment- Specialty equipment is not in our OH.There is no way to estimate what specialty equipment could be requested by the City of Pleasanton or what the cost could be. Specialty equipment is a direct cost. Any specialty equipment requested by the City,shall be proposed to the City of Pleasanton in writing for approval and will be billed with a 5%mark up. Normal tools and equipment used in a typical day to perform construction inspection is in our OH rate:safety equipment,gloves,tape measures, or measuring wheels,etc.. • Rates- Rates are valid from 06/01/2016 to 12/31/2016. Starting in 2017, new rates will be valid from 01/01 to 12/31 each year. • Ghlrardelli Project Manager- Ghirardelli Associates, Inc. does not charge for our project manager to administer our contract with the City of Pleasanton. Ghirardelli City of Pleasanton Page I RS-3 A S S O C I A T E S On Call Construction Management and Inspection Services