Jil AJ)f>IsoN® Public Works I Engineering 16801 Westgfove • P.O. Box 9010 t..ddison, Texas 75001 felephone: (972) 450·2871 • Fax: 19721 45()"2837 DATE ;:/-1..2. ,.... 0 1.-1 JOB NO. AiTENTION RE· 􀁾􀁣􀀺􀁊􀁲􀁴􀁻􀁣􀀮􀁾􀀠L "'e.,<1 m.,./V"'/--v ,. -GENTLEMAN: WE ARE SENDING YOU /(Attached o Under separate cover via _____the following items; o Shop Drawings o Prints o Plans 0 Samples 0 Specifications o Copy of letter o Change order o COPIES DATE NO. DESCRIPTION /c:,1'10., l-ruc/-t􀁾􀀯􀁉􀀯􀁉􀀠M rep,vi.. 􀁾􀀬􀀬􀀫􀀭􀀮􀁵􀀮f. VI j ./􀁾􀀠Ct k .til/lutIt' o-l!r .., /I I , rHESE ARE TRANSMITTED as cheeked below: o For approval 0 Approved as submitted o Resubmit ____ copies for approval /)(For your use 0 Approved as noted o Submit copies for distribution o As requested 0 Returned for corrections o Return corrected prints o For review and comment 0 ___ o FOR BIDS DUE __________1v___ o PRINTS RETURNED AFTER LOAN TO US :OPY TO 􀀭􀀭􀀧􀀭􀀧􀀯􀀿􀀰􀀷􀀯􀁢􀁾􀁴􀁊􀀻􀀮􀁵􀀮􀀽􀁬􀀨􀀴􀁲􀁰􀀢􀀬􀀭􀀬􀀬􀀧􀀱􀀧􀁱􀀭_______ 􀁾􀁡􀀶􀀯􀀱􀀷􀀠Jm.e5 􀁾􀀠􀁫􀁥􀁾􀀠pi,nnI'SPl SIGNED: -+--1--.J<.=:.::='-=------If enclosures are not as noted, please notlfY:= ·:-MasTec 􀁁􀁇􀁒􀁅􀁅􀁍􀁅􀁎􀁔􀁎􀁕􀁍􀁂􀁅􀁒􀀺􀁾􀁃􀁾􀀴􀁾􀁏􀁓􀁾􀀭􀁾􀁏􀁬􀁾􀁾􀁾􀀱􀁾􀀰􀁾________ Federal Tax I.D. Number: 􀀢􀀬􀀶􀀵􀀼􀀺􀀺􀁾􀀺􀁬􀁉􀀮􀀸􀀢􀀬􀀲􀀢􀀬􀀹􀀢􀀬􀀳􀀬􀀬􀀭􀀵􀀷􀀬􀀭􀀭_______ CONSTRUCTION AGREEMENT This CONTRUCTION AGREEMENT (hereinafter, "AGREEMENT"), executed this "'26,..th___________.day of_______.!:F"eb"'ru"'ary""'____􀁾􀀬􀀠2001, by and between MasTec North America. Inc" a FIQrida Corporation 4747 Irving Blvd" Suite 221 ______ .....pallas. Texas 75347 Telephone: ___-"(2 1"'4....... ) 511"'-2"'5,,00"'-_______ Fax: (214) 571-255""5_______ (hereinafter, "Contractor") and _______""T"'onwnbU.'o['Ad""d""is""own'--______ 16801 Westgroye Drive _____--"A!ldison, Texas 75001-9010 Telephone: ___..l.(!!72) 450-2879 Fax: (972) 450-28.3"'7_______ (hereinafter, "Customer") In consideration of the mutual covenants and promises contained in this Agreement, Contractor and Customer agree as follows: I. Contractor will perfonn the scope of Work as Customer's contractor as described on the attached Work Order(s) "('Work')". Contractor will perfonn the Work in accordance with the tenns of this Agreement. 2. Customer may direct Contractor, in writing, to make changes to the Work. Adjustments, if any, in the contract price or the schedule of Work resulting from these changes will be set forth in a Change Order to the associated Work Order. The Change Order shall be fully executed prior to commencement ofthe changed or additional work. Page 1 of6 -:lJIasTec 3. Contractor will remove at its expense any trash, debris and surplus materials left oyer or resulting from the performance of the Work. Contractor will restore the work site(s) to original or better condition upon completion ofthe Work. 4. Contractor and its employees and agents will observe all safety, nondiscrimination, equal . employment, drug and alcohol, business ethics and other rules and policies of Customer and all applicable laws, rules and regulations of any governmental authority in performing the Work, including without limitation those relating to safety and health, the environment, and .Iabor and employment. 5. Contractor is engaged as an independent contractor and is not an agent or employee of Customer. Contractor acknowledges that this Construction Agreement is not exclusive and that Customer may, in its sole discretion, engage persons or entities other than the Contractor to carry out all or a portion of the Work or other work related thereto. Contractor will supply all labor, labor, tools, equipment, vehicles, fuel and other materials necessary to properly perform the Work, other than those supplied by Customer. Contractor has full control and supervision of the performance of the Work. Contractor is responsible for scheduling Contractor's personnel, subject to the . Customer's schedule of completion and other requirements. Contractor is solely responsible for payment of all compensation and benefits to its employees and others engaged by it to perform the Work and for all workers' compensation, unemployment compensation, health, life and disability insurance, social security and income tax withholding, and all other federal, state and local withholding taxes or other taxes, withholdings and payments due on account of such compensation. 6. Customer will pay Contractor for the Work properly performed and accepted by Customer at the prices described on the Work Order(s). Payment will be made by Customer to Contractor within thirty (30) days of receipt by Customer of Contractor's invoice and any documentation or data in support of such invoice as Customer may require. Any payment will constitute full and complete payment for all work performed by Contractor and identified in Contractor's invoice, but will not constitute acceptance of any defective work or materials. 7. Contractor guarantees all Work performed against defects in workmanship or materials for a period of one (1) year after final acceptance of the Work by Customer. Contractor shall correct any such defects within thirty (30) days of receipt of written notice, at its expense. Unless otherwise specified or directed by Customer, all materials used by Contractor shall be new and both workmanship and materials shall be of first rate quality. Contractor shall, if required by Customer, furnish satisfilctory evidence as to the kind and quality of materials. No failure or omission of Customer to discover, object to or condemn any defective work or material shall release Contractor from its obligation to fully and properly perform the Work or any portion thereof. lfthe Work or any portion thereof, or any material brought on the site ofthe Work for use in the Work or selected for the same, shall be deemed by Customer as unsuitable or as not in conformity with the specification, Contractor shall, after receipt of written notice thereof from Customer, promptly remove such material and rebuild or otherwise remedy such Work or portion thereof so that such Work or portion thereof shall be properly performed. 8. Contractor shall not be responsible for the removal of any hazardous materials or substances discovered on the Work site that are not the direct result of work performed by the Contractor; provided, however, that in the event Contractor discovers any hazardous materials or substances Page2of6 " -:Jt1asTec at any Work site, Contractor shall immediately notifY (by both oral and written means) Customer of the same. 'Hazardous materials or substances' means any chemical, material, air pollutant, toxic pollutant, waste, or substance which is (i) regulated as toxic or hazardous or exposure to which is prohibited, limited or regulated by any law or regulation, or (ii) which could pose a hazard to the health and safety of any person. Contractor shall not install, store, use, treat, transport, discharge or dispose (or peimit or acquiesce in the installation, storage, use, treatment, transportation, discharge or disposal by its officers, employees, agents, contractors, or any other perSon of) any hazardous material or substance in connection with the Work or any part thereof. Contractor is and shall be liable and responsible for the removal of any such hazardous material or substances in connection with its work. . 9. Either party will have the right to terminate this Agreement at any time upon giving fourteen (14) days written notice to the other party. Upon termination of this Agreement for any reason, Contractor will immediately cease all work and vacate the job site, and will return all tools, equipment, vehicles and materials supplied by Custumer. Contractor will be compensated for all work properly completed prior to termination and accepted by Custumer. 10. Any notice required by this Agreement will be effective and deemed delivered (a) three (3) business days after posting with the United States Postal Service when mailed by certified mail, return receipt requested, properly addressed and with the correct postage, or (b) one (1) business day after pickup by the courier service when sent by overnight courier, properly addressed and prepaid. Notices must be sent to the addresses set forth on the first page of this Agreement, unless either party notifies the other in writing of an address change, which will take effect three (3) business days after receipt (as defmed in the preceding sentence) of the change by the receiving party. 11. This Agreement: (a) inures to the benefit of and is binding upon the parties and their respective successors and permitted assigus; (b) contains the entire agreement of the parties and supersedes any earlier or contemporaneous understanding or agreement; ( c) may not be amended except by a writing sigued by each of the parties; (d) may not be modified or waived unless in writing, and signed by a duly authorized representative of each party; and (e) is governed by the laws of the state where the Work isfwas performed. 12. Contractor will defend, save and hold harmless Customer, its officials, officers, employees, agents and attorneys (both in their official and private capacities) from and against any and all suits, actions, causes of action, claims, regulatory proceedings, judgments, awards, penalties, costs, expenses, andlor fees (including, without limitation, attorneys fees) (together "Liabilities'') for or in conn.ection with any injury (including death) to any person, or or any damage to or destruction ofany property, or any other harm for which recovery of damages is sought, suffered by any person or organization, that may arise out ofor from any acts or omissions of Contractor or its officers, employees, agents, subcontractors or other representatives in connection with this Agreement. The obligations of Contractor to Customer with respect to Liabilities asserted by third parties ("Third Party Claim") will be subject to the following terms and conditions: Customer will give Contractor prompt notice of any Third Party Claim, and Contractor will assume the defense, compromise or settlement thereof promptly by representatives of its own choosing, at its own cost and expense. No settlement will be agreed to without Customer's prior written consent, which consent will not be withheld unreasonably. Customer will cooperate with Contractor in the defense of any Third Party Claim. IfContractor does not promptly assume the Page 3 of6 o:-MasTec . defense, Customer will (upon notice to the Indemnitor) have the right (but not the obligation) to· defend, compromise or settle the Third Party Claim on behalf of and for the account and risk of Contractor, but this shall not relieve Contractor of its own obligations. Contractor's indemnification hereunder shall apply without regard to whether acts, errors, omissions or neglect of Customer would otherwise have made them jointly negligent or liable for such damage or injury, excepting only that Contractor shall not be obligated to so protect, defend, indemnifY and hold harmless Customer if such damage or injury is due to the sole negligence of Customer. The provisions of this Paragraph 12 shall survive the tennination or expiration ofthis Agreement. 13. Contractor at its own expense shall purchase, maintain and keep in force such insurance as described and in the minimum amounts set forth below: (a) Commercial general liability (CGL) and, if necessary, commercial umbrella insurance with a limit of not less than $1,000,000 each occurrence, which shall include coverage's for bodily injury (including, without limitation, death) and property damage, and particularly for liability arising from premises, operations independent contractors, products/completed operations, personal injury, advertising injury, and contractual liability (including, without limitation, the liability assumed under the indemnity provisions ofthis Agreement). If such CGL insurance contains a general aggregate limit, it shall apply separately to the Work under this Agreement There shall be no endorsement or modification of the CGL limiting the scope of coverage for liability arising from pollution, explosion, collapse, or underground property damage. (b) Commercial Automobile Liability insurance at minimum combined single limits of $1,000,000 per-occurrence for bodily injury and property damage, including owned, non-owned and hired car coverage. (c) Workers Compensation insurance at statutory limits, including Employers' Liability coverage at minimum limits of $1,000,000 each-occurrence each-accident/$I ,000,000 by disease each-occurrencel$l,OOO,OOO by disease aggregate. The above policies shall be endorsed to provide the following, as applicable: (i) in all liability policies, name the Town of Addison, Texas, its officials, officers, agenta, and employees as additional insureds; (ii) in all liability policies, provide that such policies are primary insurance to any other insurance available to the additional insureds, with respect to any claims arising out of activities conducted hereunder, and that insurance applies separately to each insured against whom claim is made or suit is brought; and (iii) a waiver of subrogation in favor ofthe Town of Addison, its officials, officers, agents, and employees must be included in all such policies. Contractor shall maintain all liability policies required hereunder for at least 2 years following the tennination or expiration ofthis Agreement. All insurance policies shall be issued by an insurance company with an A.M. Best's rating of not less than A-and authorized to do business in Texas and in the standard fonn approved by the Texas Department of Insurance, and shall be endorsed to provide for at least 30 days advance written notice to Customer of a material change in or cancellation of a policy. Certificates of insurance, satisfactory to Customer, evidencing all coverage above, shall be furnished to Customer prior to the Commencement Date, with complete copies of policies furnished to Page 4 of6 I " ....MasTec Customer upon request. Customer reserves the right to review and revise from time to time the types of insurance and limits of liability required herein. 15. Contractor shall give adequate attention to the faithful prosecution and completion of this Agreement and shall keep at the site of any Work hereunder, during any portion of the Work, a competent superintendent and any necessary assistants. The superintendent shall represent the Contractor in his absence and all directions given to him shall be as binding as if given to the Contractor, The Contractor shall be solely responsible for the safety of its officers, employees, agents and other persons, as well as for the protection of the safety of the improvements being erected and the property of himself or any other person, as a result of his operations hereunder. Contractor shall be fully and completely liable, at its own expense, for design, construction, installation and use, or non-use, of all items and methods incident to performance of this Agreement, and for all loss, damage or injury. incident thereto, either to person or property, including, without limitation, the adequacy of all temporary supports, shoring, bracing, scaffolding, machinery or equipment, safety precautions or devices, and similar items or devices used by Contractor during construction. • 16. Contractor shall at all times exercise reasonable and prudent precautions for the safety of its employees, agents, and others (including, without limitation, members of the public) in, on or near the Work or any portion thereof and shall comply with all applicable provisions of federal, state, and local safety laws, building and construction codes, traffic safety laws, and all other applicable laws or regulations. Contractor shall provide guards, safe walkways, ladders, bridges, gangplanks, and other safety devices. The safety precautions actually taken and their adequacy shall be the sole responsibility of the Contractor, acting at its discretion as an independent contractor. Contractor shall take proper means to protect property or properties adjacent or adjoining property the site of the Work or any portion thereof which might be damaged or injured or seriously affected by any process of construction or repair to be undertaken by Contractor under this Agreement, from any damage or injury by reason of said process of construction or repair; and Contractor shall be liable for any and all claims for such damage on account of Contractor's failure to fully protect all adjoining property. 17. (a) The undersigned officers andlor agents of the parties hereto are the properly authorized officials and have the necessary authority to execute this Agreement on behalf of the parties hereto, and each party hereby certifies to the other that any necessary resolutions or other act extending such authority have been duly passed and are now in full force and effect. (b) . This Agreement shall be perfonnable and all compensation payable in Dallas County, Texas. Venue under this Agreement lies in Dallas Dallas County, Texas. Contractor shall at all times observe and comply with all federal, state and local laws, ordinances and regulations, which in any manner affect this Agreement or the Work or any portion thereof. (c) Contractor shall not assign, convey, or otherwise transfer, nor has the authority or power to assign, convey, or otherwise transfer, any of its rights, duties or obligations under this Agreement. Page 5 of6 4JlasTec (d) If any clause, paragraph, section or portion ofthis Agreement shall be found to be illegal, ' unlawful, unconstitutional or void for any reason, the balance of the Agreement shall remain in full force and effect and the parties shall be deemed to have contracted as ifsaid clause, section, paragraph or portion had not been in the Agreement initially. (e) The rights and remedies provided by this Contract are cumulative and the use ofanyone right or remedy by either party shall not preclude or waive its right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law statute, ordinance, or otherwise. (f) Time is ofthis essence of this Agreement. 18. Contractor shall comply with the minimum wage scale (general prevailing wage rates) and equipment hourly rates as set forth in Exhibit A atrached hereto and incorporated herein. 19. Customer shall have the right to require the Contractor to furnish, and Contractor shall promptly furnish, a surety bond or bonds as security for and covering (i) the faithful performance by Contractor ofthis Construction Agreement (including, without limitation, any Work Order) (such bond(s) being generally referred to as a "performance bond"), and (ii) the payment ofobligations and all persons performing labor under this Construction Agreement (including, without limitation, any Work Order) (such bond(s) being generally referred to as a "payment bond"), and (iii) the maintenance of Contractor's Work or any portion thereof for a period of one (I) year(s) following the fmal completion and acceptance of any such Work (such bond( s) being generally referred to as a "maintenance bond"). 'Such bond or bonds shall be in form and content (including, without limitation, the amount ofthe bond(s» acceptable to Customer and issued and executed by a surety company satisfactory to Customer. Additional terms and conditions applicable to this Agreement, if any, are set forth on the Work Order(s). CONTRACJ'3I'l 􀁾􀀠By: /tvtA-Robbie Dupree (printed Name) Title: Operations Manager Title: 􀀭􀀭􀀢􀀧􀁃􀁾􀁻􀀧􀀭􀀧􀁨􀀭􀁬􀀭􀀧􀀭􀁭􀀮􀀺􀀮􀀮􀀺􀀮􀀮􀀺􀁴􀀮􀀡􀀮􀀺􀁖􀁬􀀮􀀺􀀮􀀺􀁴􀁁􀁤􀁪􀀭􀀢􀀧􀀭􀁥􀀮􀀺􀀮􀀮􀁲􀀭􀂭Date: 2126/02 Date: 􀁟􀀭􀀭􀀭􀀧􀁯􀁟􀀳􀁻􀀭􀀧􀀭􀀭􀀧􀁾􀀭􀀧􀀭􀀱O_L=--_' _ (printed Name) Page 6 of6 􀁾􀁡􀁳􀁔􀁥􀁣􀀠 AGREEMENT NUMBER: __􀁾􀁃􀁾􀀴􀀰􀁾􀁾􀁾􀁏􀁾􀀱􀀭􀁾􀁏􀁾􀁬􀁏􀁾______ WORKORDERNUMBER: ______􀁾􀁏􀁾􀁏􀁾􀁬_______ WORK ORDER This WORK ORDER, executed this 2""6oLth ____day of February , 200 I, by and between Contractor Customer MasTec North America, Inc., a Florida Corporation. Town of Addison 4747 Irving Blvd .. Suite 221 16801 Westgrove Drive Dallas. Texas 75247 Addison, Texas 75001-9010 Contractor acknowledges that it bas visited the site(s), bas visually inspected it and is familiar with the general and local conditions ofthe Scope ofWork listed below. SCOPE OF WORK At the request ofthe Director ofPublic Works ofthe Town ofAddison or the Director's designee, Customer shall provide manpower, equipment, and materials required for emergency restoration work (related to streets, public water lines, sanitary sewer lines, storm sewer lines, and street lights) for the Town of Addison. PRlCING Compeosation for the hourly work completed will be per the attached hourly pricing sheet located in Exhibit A. CUSTOMER:CONTRArIt a By: ___________________________By: , Vd I Robbie Dupree (printed Name) (printed Name) Title: _______________Title: __--'Op"""e"'ra"'ti"'on"'s"'M"'an"""a"'ger"'-______ Date: ___-'212"""'6""/02""-________ Date: _______________ a:-MasTec Construction C405-01-010 Exhibit A -Labor and Equipment Hourly Rates LABOR RATES Superintendent Working Foreman Skilled Laborer Truck Driver Operator Multiplier for Overtime $ 40.00/hour $ 35.00/hour $ 24.00 /hour $ 26.00 /hour $ 29.00/hour 1.5/hour Note: Due to the nature of maintenance and emergency restoration work, MasTec proposes completing the work on a time and materials basis with a four (4) hour minimum and a $250.00 trip charge per call out. Time and material charges would begin when the crews left the MasTee yard and end when the crews returned to the yard. Overtime rates would be utilized on any work outside ofnonnal work hours which are Monday thru Friday between the hours of7 AM and 5 PM. Any materials and or subcontractors utilized, ifany, would be billed at cost plus 15%. Attached is an hourly rate sheet, any items not on this sheet can be negotiated as needed. Locates ofexisting utilities will have to be perfonned and the City ofAddison will need to help expedite getting locates on an emergency basis. Labor rates are based on eight hours per day and forty hours per week. Any work perfonned in excess of these hours will be charges at the regular time unit rate times the multiplier for overtime shown above. EQUIPMENT RATES 112 to 1 Ton Truck Dump Truck (5 Cubic Yard) Dump Truck (15 Cubic Yard) 300 amp Welder Cutting Torch wlout Gas 175 cfin Air Compressor wffools 3» Water Pump 3000 Watt Generator 580 Case Backhoe Trench Box Street Plates Tilt Trailer Electric Grinder Electric Drill Ditch Witch Hole Hog Haul Truck &:. Lowboy Ram.mex Tramper Compactor Rubber Tire Loader Track Backhoe (65,000 Ibs.or smaller) D-4Dozer Air Blower Hydra Hammer Chain Saw Gas Quickie Saw Compaction Wheel for Backhoe Boom Truck Large Track Backhoe (over 6S,000 Ibs) Light Tower Arrow Board Directional Bore Rig Vacuum Trailer $ 15.00/hour $ 2S.00 Ibour $ 45.00 Ibour $ 12.00 /hour $ 5.00 Ibour $ 20.00 /hour $ 5.00/hour $ 5.001bour $ 30.00 Ibour $300.00 Iday $ 30.001day $ 15.00/hour $ 5.00/hour $ 5.00 Ibour $ 3S.00 00 /hour $ 28.00 Ibour $ 50.00 Ibour $ 16.00 Ibour . $ 45.00 Ibour $ 65.00/hour $ SO.OO Ibour $ 5.001bour $ 46.00/hour $ 5.001bour -$ 5.00 /hour $ 10.00 Ibour $ 45.00 Ibour $ 95.00 Ibour $ 15.00 Ibour $ 15.00 Ibour $200.00 Ibour $12S.00 Ibour PUBLIC WORKS DEPARTMENT (972) 450·2871 FAX (972) 450.2837 Post Office Box 9010 Addison, Texas 75001-9010 16801 WestgroveMarch 26, 2002 Mr. Trip Brizell Capital Programming Senior Manager Dallas Area Rapid Transit P.O. Box 660163 Dallas, TX 75266·0163 Re: Brookhaven Club Drive Restoration Dear Mr. Brizell: Farmers Branch has awarded a construction contract for the above referenced project, part ofwhich will be built in The Town ofAddison. The Town has agreed to pay for its share ofthe cost out ofDART LAP/CMS funds. Accordingly; this is to request a 'check for our portion ofthe project in the amount of . $59,053.50 that was set up with our recent funding application. Your attention to this matter win be most appreciated. Very truly yours, 􀁔􀁟􀀻􀁾􀁾􀀠es C. Pierce, Jr., P.E. sistant Public Works Director cc; Chris Terry, Assistant City Manager Michael E. Murphy, P.E., Director ofPublic Works Sandra Goforth, Accounting Manager DATE SUBMITTED: March 4, 2002 FOR COUNCIL MEETING: March 12, 2002 Council Agenda Item: ___ SUMMARY: This item is to authorize the City Manager to enter into a Construction Agreement with MasTec North America, Inc, for emergency and rapid response support for the Public Works Department, FINANCIAL IMPACT: Budgeted Amount: N/A Funding Source: Streets and Utilities Maintenance Budgets BACKGROUND: Public Works desires to have an agreement with a contractor that can provide emergency and/or rapid response support to streets and utilities when needed, An example of a street emergency would be the knock down ofa signal pole or a sudden pavement failure, An example ofa utility emergency would be a large water main break or a sewer collapse. The contract (copy attached) provides that each project is initiated by individual work order and provides a payment schedule for labor and equipment. Materials shall either be furnished by the Town of Addison, or by MasTec. Materials furnished by MasTec shall be paid at cost plus 15%, The contract has been reviewed and approved by our attorney. MasTec was founded in 1969 and since has become a Fortune 1000 Company traded on the NYSE. MasTec entered the DFW market in 1997 with the purchase ofE.L. Dalton & Co. and specializes in telecommunications, energy, paving, and utility infrastructure construction. MasTec has performed various projects for the Town, all ofwhich have been to our satisfaction. RECOMMENDATION: Staff recommends that the City Manager be authorized to sign the proposed Construction Agreement with MasTec North America, Inc., which will provide emergency and rapid response support to the Public Works Department. ·:.MasTec 􀁁􀁇􀁒􀁅􀁅􀁍􀁅􀁎􀁔􀁎􀁕􀁍􀁂􀁅􀁒􀀺􀁾􀁃􀁾􀀴􀁾􀁏􀀾􀁾􀁏􀁾􀁉􀁾􀀭􀁏􀁾􀀱􀁾􀁏__________ Federal Tax 1.D. Nwnber; 􀀶􀀢􀀢􀀵􀀢􀀬􀀭􀁏􀀢􀀬􀀸􀀢􀀬􀀲􀁾􀀹􀀳􀀬􀀬􀀬􀀬􀀵􀀬􀀭􀀬􀀭􀀷__􀁾􀁾􀁾___ CONSTRUCTION AGREEMENT This CONTRUCTION AGREEMENT (hereinafter, "AGREEMENT"), executed this "'26..."____________day of_______LFe"'bt!.ru"'arv!!..L_____, 2001, by and between MasTec North America.Jnc .. a Florida Corooration 4747 Irving Blvd.. Suite 24,"'1"';::-_____ Dallas, Texas 75347 Telephone; ___.....014) 571-2500 Fax: (214) 571-2555 (hereinafter, "Contractor") and Town of Addison 16801 Westgrove Driv,,-e_______ Addison, Texas 75001-9010 Telephone: ___􀀮􀁾􀀨􀁃􀀼􀀹􀀭􀀢􀀷􀀲􀀢􀀧􀀩􀁣􀀻􀀺􀀴􀀢􀀢􀀵􀀢􀀧􀀰􀀭􀀻􀀮􀀬􀀲􀀢􀀢􀀸􀀷􀀧􀁟􀀼􀀹􀀧􀁟______ Fax: __􀁾__􀁾􀁾􀁾􀀷􀀲􀁾􀀩􀀴􀁾􀀵􀁾􀀰􀁾􀁾􀁾􀀸� �􀀳􀀷􀁾___􀁾__ (hereinafter, "Customer") In consideration of the mutual covenants and promises contained in this Agreement, Contractor and Customer agree as follows: I. Contractor will perform the scope ofWork as Customer's contractor as described on the attached Work Order(s) "('Work')", Contractor will perform the Work in accordance with the terms of this Agreement. 2. Customer may direct Contractor, in writing, to make changes to the Work. Adjustments, if any, in the contract price or the schedule of Work resulting from these changes will be set forth in a Change Order to the associated Work Order. The Change Order shall be fully executed prior to commencement ofthe changed or additional work. Page 1 of6 .., 􀀧􀀮􀁾􀀠-:oMasTec 3. Contractor will remove at its expense any trash, debris and surplus materials left over or resulting from the performance of the Work. Contractor will restore the work site(s) to original or better condition upon completion ofthe Work. 4. Contractor and its employees and agents will observe all safety, nondiscrimination, equal employment, drug and alcohol, business ethics and other rules and policies of Customer and all applicable laws, rules and regulations of any governmental authority in perfonning the Work, including without limitation those relating to safety and health, the environment, and .Iahor and employment. 5. Contractor is engaged as an independent contractor and is not an agent or employee ofCustomer. Contractor acknowledges that this Construction Agreement is not exclusive and that Customer may, in its sole discretion, engage persons or entities other than the Contractor to carry out all or a portion of the Work or other work related thereto. Contractor will supply all labor, tools, equipment, vehicles, fuel and other materials necessary to properly perfonn the Work, other than those supplied by Customer. Contractor has full control and supervision of the performance of the Wark. Contractor is responsible for scheduling Contractor's personnel, subject to the . Customer's schedule of completion and other requirements. Contractor is solely responsible for payment of all compensation and benefits to its employees and others engaged by it to perform the Work and for all workers' compensation, unemployment compensation, health, life and disability insurance, social security and income tax withholding, and all other federal, state and local withholding taxes or other taxes, withholdings and payments due on account of such compensation. 6. Customer will pay Contractor for the Work properly performed and accepted by Customer at the prices described on the Work Order(s). Payment will be made by Customer to Contractor within thirty (30) days ofreceipt by Customer ofContractor's invoice and any documentation or data in support of such invoice as Customer may require. Any payment will constitute full and complete payment for all work performed by Contractor and identified in Contractor's invoice, but will not constitute acceptance ofany defective work or materials. 7. Contractor guarantees all Work perfonned against defects in workmanship or materials for a period of one (I) year after final acceptance of the Work by Custpmer. Contractor shall correct any such defects within thirty (30) days of receipt of written notice, at its expense. Unless otherwise specified or directed by Customer, all materials used by Contractor shall be new and both workmanship and materials shall be of fIrst rate quality. Contractor shall, if required by Customer, furnish satisfactory evidence as to the kind and quality of materials. No failure or omission of Customer to discover, object to or condemn any defective work or material shall release Contractor from its obligation to fully and properly perfonn the Work or any portion thereof lfthe Work or any portion thereof, or any material brought on the site of the Work for use in the Work or selected for the same, shall be deemed by Customer as unsuitable or as not in conformity with the specification, Contractor shall, after receipt of written notice thereof from Customer, promptly remove such material and rebuild or otherwise remedy such Work or portion thereof so that such Work or portion thereof shall be properly performed. 8. Contractor shall not be responsible for the removal of any hazardous materials or substances discovered on the Work site that are not the direct result of work perfurmed by the Contractor; provided, however, that in the event Contractor discovers any hazardous materials or substances 􀀭􀀭􀀭􀀭􀀭􀀭􀁾􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭􀀭-------.-------Page 2 of6 􀁾􀁡􀁳􀁔􀁥􀁣􀀠 at any Work site, Contractor shall immediately notify (by both oral and written means) Customer· of the same. 'Hazardous materials or substances' means any chemical, material, air pollutant, toxic pollutant, waste, or substance which is (i) regulated as toxic or hazardous or exposure to which is prohibited, limited or regulated by any law or regulation, or (ii) which could pose a hazard to the health and safety of any person. Contractor shall not install, store, use, treat, transport, discharge or dispose (or permit or acquiesce in the installation, storage, use, treatment, transportation, discharge or disposal by its officers, employees, agents, contractors, or any other person of) any hazardous material or substance in connection with the Work or any part thereof. Contractor is and shall be liable and responsible for the removal of any such hazardous material or substances in connection with its work. 9. Either party will have the right to terminate this Agreement at any time upon giving fourteen (14) days written notice to the other party. Upon termination of this Agreement for any reason, Contractor will immediately cease all work and vacate the job site, and will return all tools, equipment, vehicles and materials supplied by Customer. Contractor will be compensated for all work properly completed prior to termination and 􀁡􀁣􀁣􀁥􀁰􀁴􀁾by Customer. 10. Any notice required by this Agreement will be effective and deemed delivered (a) three (3) business days after posting with the United States Postal Service when mailed by certified mail, return receipt requested, properly addressed and with the correct postage, or (b) one (I) business day after pickup by the courier service when sent by overnight courier, properly addressed and prepaid. Notices must be sent to the. addresses set forth on the first page of this Agreement, unless either party notifies the other in writing of an address change, which will take effect three (3) business days after receipt (as deflDed in the preceding sentence) of the change by the receiving party. II. This Agreement: (a) inures to the benefit of and is binding upon the parties and their respective successors and permitted assigns; (h) contains the entire agreement ofthe parties and supersedes any earlier or contemporaneous understanding or agreement; (c) may not be amended except by a writing signed by each of the parties; (d) may not be modified or waived unless in writing, and signed by a duly authorized representative of each party; and (e) is governed by the laws of the state where the Work is/was performed. 12. Contractor will defend, save and hold harmless Customer, its officials, officers, employees, agents and attorneys (both in their official and private capacities) from and against any and all suits, actions, causes of action, claims, regulatory proceedings, judgments, awards, penalties, costs, expenses, and/or fees (including, without limitation, attorneys fees) (together "Liabilities") for or in connection with any injury (including death) to any person, or any damage to or destruction of any property, or any other harm for which recovury of damages is sought, suffered by any person or organization, that may arise out of or from any acts or omissions of Contractor 'or its officers, employees, agents, subcontractors or other representatives in connection \vith this Agreement. The obligations of Contractor to Customer with respect to Liabilities asserted by third parties ('Third Party Claim") will be subject to the following terms and conditions: Customer will give Contractor prompt notice of any Third Party Claim, and Contractor will assume the defense, compromise or settlement thereof promptly by representatives of its own choosing, at its own cost and expense. No settlement will be agreed to without Customer's prior written consent, which consent will not be withheld unreasonably. Customer will cooperate with Contractor in the defense of any Third Party Claim. If Contractor does not promptly assume the Page 3 of6 a:-MasTec defense, Customer will (upon notice to the Indemnitor) have the right (but not the obligation) to defend, compromise or settle the Third Party Claim on behalf of and for the account and risk of Contractor, but this shall not relieve Contractor of its own obligations. Contractor's indemnification hereunder lthall apply without regard to whether acts, errors, omissions or neglect of Customer would otherwise have made them jointly negligent or liable for such damage or injury, excepting only that Contractor shall not be ohligated to so protect, defend, indemnify and hold harmless Customer if such damage or injury is due to the sole negligence of Customer. The provisions ofthis Paragraph 12 shall survive the termination or expiration ofthis Agreement. 13. Contractor at its own expense shall purchase, maintain and keep in force such insurance as described and in the minimum amounts set forth below: (a) Cummercial general liability (CGL) and, if necessary, commercial umbrella insurance with a limit of not less than $1,000,000 each occurrence, which shall include coverage's for bodily injury (including, without limitation, death) and property damage, and particularly for liability arising from premises, operations 􀁩􀁮􀁤􀁥􀁰􀁥􀁾􀁮􀁴􀀠contractors, products/completed operations, personal injury, advertising injury, and contractual liability (including, without limitation, the liability assumed under the indemnity provisions ofthis Agreement). If such CGL insurance contains a general aggregate limit, it shall apply separately to the Work under this Agreement. There shall be no endorsement or modification of the CGL limiting the scope of coverage for liahility arising from pollution, explosion, collapse, or underground property damage. (b) Commercial Automobile Liability insurance at minimum comhined single limits of $1,000,000 per-occurrence for bodily injury and property damage, including owned, non-owned and hired car coverage. (c) Workers Compensation insurance at statutory limits, including Employers' Liability coverage at minimum limits of $1,000,000 each-occurrence each-accidentl$I,OOO,OOO by disease each-occurrencel$l,OOO,OOO by disease aggregate. The above policies shall be endorsed to provide the following, as applicable: (i) in all liability policies, name the Town of Addison, Texas, its officials, offiC¥fS, agents, and employees as additional insureds; (ii) in all liability policies, provide that such policies are primary insurance to any other insurance available to the additional insureds, with respect to any claims arising out of activities conducted hereunder, and that insurance applies separately to each insured against whom claim is made or suit is brought; and (iii) a waiver of subrogation in favor ofthe Town of Addison, its officials, officers, agents, and employees must be included in all such policies. Contractor shall maintain all liability policies required hereunder for at least 2 years following the termination or expiration of this Agreement. All insurance policies shall be issued by an insurance company with an A.M. Best's rating ofnot less than A-and authorized to do business in Texas and in the standard form approved by the Texas Department of Insurance, and shall be endorsed to provide for at least 30 days advance written notice to Customer of a material change in or cancellation of a policy. Certificates of insurance, satisfactory to Customer, evidencing all coverage above, shall be furnished to Customer prior to the Commencement Date, with complete copies of policies furnished to Page4of6 4JlasTec Customer· upon request. Customer reserves the right to review and revise from time to tini.e the . types of insurance and limits ofliability required herein. 15. Contractor shall give adeguate attention to the faithful prosecution and completion of this Agreement and shall keep at the site of any Work hereunder, during any portion of the Work, a competent superintendent arid any necessary assistants. The superintendent shall represent the Contractor in his absence and all directions given to him shall be as binding as if given to the Contractor. The Contractor shall be solely responsible for the safety of its officers, employees, agents and other persons, as well as for the protection of the safety of tlie improvements being erected and the property of himself or any other person, as a result of his operations hereunder. Contractor shall be fully and completely liable, at its own expense, for design, construction, installation and use, or non-use, of all items and methods incident to performance of of this Agreement, and for all loss, damage or injury . incident thereto, either to person or property, including, without limitation, the adequacy of all temporary supports, shoring, bracing, scaffolding, machinery or equipment, safety precautions or devices, and similar items or devices used by Contractor during construction. 16. Contractor shall at all times exercise reasonable and prudent precautions for the safety of its employees, agents, and others (including, without limitation, members of the public) in, on or near the Work or any portion thereof and shall comply with all applicable provisions offederal, state, and local safety laws, building and construction codes, traffic safety laws, and all other applicable laws or regulations. Contractor shall provide guards, safe walkways, ladders, bridges, gangplanks, and other safety devices. The safety precautions actually taken and their adequacy shall be the sole responsibility of the Contractor, acting at its discretion as an independent contractor. Contractor shall take proper means to protect property or properties adjacent or adjoining property the site of the Work or any portion thereof which might be damaged or injUred or seriously affected by any process of construction or repair to be undertaken by Contractor under this Agreement, from any damage or injury by reason of said process of construction or repair; and Contractor shall be liable for any and all claims for such damage on account of Contractor's failure to fully protect all adjoining property. 17. (a) The undersigned officers andlor agents of the parties 􀁨􀁥􀁲􀁾􀁴􀁯􀀠are the properly authorized officials and have the necessary authority to execute this Agreement on behalf of the parties hereto, and each party hereby certifies to the other that any necessary resolutions or other act extending such authority have been duly passed and are now in full force and effect. (b) This Agreement shall be performable and all compensation payable in Dallas County, Texas. Venue under this Agreement lies in Dallas County, Texas. Contractor shall at all times observe and comply with all federal, state and local laws, ordinances and regulations, which in any manner affect this Agreement or the Work or any portion thereof. (c) Contractor shall not assign, convey, or otherwise transfer, nor has the authority or power to assign, convey, or otherwise transfer, any of its rights, duties or obligations under this Agreement. -_..._--------------------------PageS 0(6 ... 4'lasTec (d) If any clause, paragraph, section or portion ofthis Agreement shall be found to be illegal, unlawful, unconstitutional or void for any reason, the balance of the Agreement shall remain in full force and effect and the parties shall be deemed to have contracted as if said clause, section, paragraph or portion had not been in the Agreement initially. (e) The rights and remedies provided by this Contract are cumulative and the use of anyone right or remedy by either party shall not preclude or waive its right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law statute, ordinance, or otherwise. (I) Time is ofthis essence of this Agreement. 18. Contractor shall comply with the minimum wage scale (general prevailing wage rates) and equipment hourly rates as set forth in Exhibit A attached hereto and incorporated herein. 19. Customer shall have the right to require the Contractor to furnish, and Contractor shall promptly furnish, a surety bond or bonds as security for and 􀁣􀁾􀁥􀁲􀁩􀁮􀁧􀀠(i) the faithful perfonnance by Contractor of this Construction Agreement (including, without limitation, any Work Order) (such bond(s) being generally referred to as a "perfonnance bond"), and (ii) the payment ofobligations and all persons performing labor under this Construction Agreement (including, without limitation, any Work Order) (such bond(s) being generally referred to as a "payment bond"), and (iii) the maintenance of Contractor's Work or any portion thereof for a period of one (1) year(s) following the final completion and acceptance of any such Work (such bond(s) being generally referred to as a "maintenance bond"). Such bond or bonds shall be in fonn and content (including, without limitation, the amount of the bond(s» acceptable to Customer and issued and executed by a surety company satisfactory to Customer. Additional tenns and conditions applicable to this Agreement, ifany, are set forth on the Work Order(s). CUSTOMER: By:􀀺􀀺􀁾􀁾􀀴􀀠Robbie DURree (printed Name) (Printed Name) Title: Operations Manager Title: Date: 2/26102 Date: Page6of6 o:-MasTec AGREEMENTNUMBER: __􀁾􀁃􀁾􀀴􀁾􀀰􀀾􀁾􀀰􀀱􀁾􀁾􀁾􀁉􀁾􀁏_______ WORK ORDER NUMBER: ______---'°"'0""1_____ WORK ORDER This WORK ORDER, executed this ""26"-"'_______ day of February . 200 I, by and between Contractor Customer MasTec North America. inc., a Florida Corporation. Town of Addison 4747 Irving Blvd., Suite 221 1680I Westgrove Drive Dallas. Texas 75247 Addison. Texas 75001-9010 Contractor acknowledges that it has visited the site(s), has visually inspected it and is familiar with the general and local conditions ofthe Scope of Work listed below. -.... SCOPE OF WORK At the request ofthe Director ofPublic Works ofthe Town of Addison or the Director's designee, Customer shall provide manpower, equipment, and materials required for emergency restoration work (related to streets, public water lines, sanitary sewer lines, stonn sewer lines, and street lights) for the Town ofAddison. . PRICING Compensation for the hourly work completed will be per the attached hourly pricing sheet located in Exhibit A. A. CUSTOMER:􀁃􀁏􀁎􀁔􀁒􀁁􀁾􀀠a By' ____________________________By: 􀁾􀀠i 􀁾􀀠l7 Robbie Dupree (printed Name) (Printed Name) Title: ____________________________Title: __-'Q"'p""era"""ti"'onsl!llMan""''''a'''ge'''r_____________ Date: ____________________________􀁄􀁡􀁾􀀺􀀠______􀁾􀀲􀁡􀁾􀀶 􀁾􀀯􀁾􀀰􀀲􀁌􀀭______________ . . ., -:oMasTec Construction C405-01-010 Exhibit A -Labor and Equipment Hourly Rates LABOR RATES Superintendent Working Foreman Skilled Laborer Truck Driver Operator Multiplier for Overtime $ 40.00 !hour $ 35.00 Ibour $ 24.00 !hour $ 26.00 !hour $ 29.00 !hour 1.5lbour Note: Due to the natore of maintenance and emergency restoration work, MasTec proposes completing the work on a time and materials basis with a four (4) hour minimum and a $250.00 trip.charge per call out. Time and material charges would begin when the crews left the MasTec yard and end when the crews returned to the yard. Overtime rates would be utilized on any work outside of normal work 􀁨􀁾􀁵􀁲􀁳􀀠which are Monday thru Friday between the bours of7 AM and 5 PM. Any materials and or subcontractors utilized, if any, would be billed at cost plus 150/0. Attacbed is an bourly rate 􀁳􀁨􀁥􀁥􀁾􀀠any items not on this sheet can be negotiated as needed. Locates of existing utilities will bave to be performed and the City ofAddison will need to help expedite getting locates on an emergency basis. Labor rates are based on eight bours per day and forty hours per week. Any work performed in excess of these hours will be charges at the regular time unit rate times the multiplier for overtime sbown above. EQUIPMENT RATES 112 to I Ton Truck Dump Truck (5 Cubic Yard) Dump Truck (15 Cubic Yard) 300 amp Welder Cutting Torch w/out Gas 175 cfin Air Compressor wrIools 3u Water Pump 3000 Watt Generator 580 Case Backhoe TrenebBox Street Plates Tilt Trailer Electric Grinder Eleclric Drill Ditch Witch HolcHog Haul Truck 8< Lowboy Rlunmex Tramper Compactor Rubber Tire Loader Track Backhoe (65,000 Ibs.or srnaller) D-4Dozer Air Blower Hydra Hammer Chain Saw Gas Quickie Saw Compaction Wheel for Backhoc Boom Truck Large Track Backhoe (over 65,000 lbs) LightTowcr Arrow Board Direetional Bore Rig Vacuum Trailer $ 15.00 Ibour $ 25.00 !hour $ 45.00 Ibour $ 12.00 Ibour $ 5.00 !hour $ 20.00 !hour $ 5.001bour $ 5.00 Ibour $ 30.00 !hour $300.00/day $ 30.00/day $ 15.00 Ibour $ 5.00 !hour $ $ 5.001bour $ 35.00 !hour $ 28.00 Ibour $ 50.00 Ibour $ 16.00 Ibour $ 45.00 Ibour $ 65.00 Ibour $ 50.00 Ibour $ 5.00 !hour $ 46.00 !hour $ 5.00 !hour $ 5.00 !hour $ 10.00 Ibour $ 45.00 Ibour $ 95.00 Ibour $ 15.00 Ibour $ 15.00 Ibour $200.00 Ibour $125.00 Ibour . .., ••• as ec COMPANY INFORMATION www.·:oMasTeC.COM COMPANY INFORMATION .:-M a sTe c General Information MasTec, Inc. (MasTec) is one of the preeminent end-ta-end network service providers in North America. MasTec engineers, builds, installs and maintains internal and external networks supporting the internet, internet related applications, and other communications facilities for leading telecommunications, cable televiSion, Fortune 500 corporations and energy companies. MasTec was established in 1994 with the combination of Church & Tower, Inc., a Bell South Master Contractor, and Burnup & Sims, a master contractor providing services to the cable television industry. Since the combination of these two companies, MasTec has expanded its existing operations and acquired numerous other talented companies throughout North America. MasTec has grown to a corporation with over ten thousand employees and one billion dollars in yearly revenue. In a market populated by hundreds of small enterprises, we have the financial strength, the skills, and the resources to get get the job done. We know how to achieve valuable operating synergies with our specialized divisions which can design systems, lay fiber, install the networks, connect the conductors, build the substations, bury the pipelines, and erect the towers. Then we maintain it all. Our people work with a powerful team spirit and we support them with leading-edge training programs that enable us to adopt the newest technologies. Mastec realizes that as utility systems become more complex and companies expand their capacities and convergence issues, the demand for providers of network integration will increase significantly. By controlling the management of time, vendors, and personnel, MasTec will produce quality results and minimize costs, which are fundamental if not critical to the success of any project. Management of the schedules, budgets and work process, as well as the planning, staging, and expedition of the installation process are familiar tasks we have successfully accomplished many times in the past, and and can confidently assure continued success. Our vision is to maintain a leadership role in the utility industry that will assist our customers in meeting their needs. MasTec maintains over 200 facility locations, from the Arctic to the Gulf of Mexico, to cover all the varying needs of our customers. Mas Tec has established eight (8) service lines and employs over 10,000 employees to meet the varying demands of the telecommunications, intelligent highway, and energy industries. ') www.·:-MasTec.COM COMPANY INFORMATION .:-M a sTe c ) MasTee At A Glance Founded in 1969 Traded on the NYSE (MTi) Fortune 1000 Company # 1 Hispanic Business as ranked by Hispanic Business Magazine # 5 Specialty Contractor by ENR Magazine 10,000 team members 200 service offices in US, Canada. and Brazil 􀁉􀁾􀁯􀁱􀀠E. L Da/hY1 {. 4r /1'17 Sfo 􀁾􀀯􀁾􀀺􀁫􀀭􀀮􀀠)P41 www.·:-MasTeC.COM COMPANY INFORMATION .:-M a sTe c S....tof ...' C!O lf1Jf of RHilllU 􀁾􀁏􀁖􀀢􀀮􀀠St.,.., ) MatTfC t.e.,.. Miaml. fl , , 􀁾􀁁􀁵􀁾t.lllltwarlc, Ellglfn'o'Cod, Cil GopfMd1' IIlC., Stcallcut. NJ • Aixir. (ld.rptl:JuldC... Silit AIl;C,.,iv, lX • ''''"Nlielllli 'NUlla,..Cot"., lllft'do, IX • PaN 􀁁􀁉􀀡􀁉􀁦􀁴􀁬􀁵􀁡􀁾Al'nH. MH. Ctn... 1,II,.m: Fl , Eldin' F'IIrd'. T,llY, M! • S.Gnlf. s.nu,Iu",. Mla"',I, H " fII. B.1t.I.!I Grll\l, ItI flluld., M16lf1t, fl hetilt: Koldietl Carp:, lOol Anl1det:. CA U0y4A, Wi" 􀁃􀁯􀁊􀀬􀀧􀀬􀁏􀀮􀁡􀀭􀀮􀀡􀁾􀁬􀁉􀀡􀁤􀀬􀀠CI< " " "",...lnll'.lrion,1 OI'lP,", "ham.. fL UOliIHI Healthc.,. Me}, tMII Beach, CA " " Au.. 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Yis.it our weDsn. all 􀀱􀁉􀀢􀁉􀁉􀀧􀁗􀀮􀁦􀁏􀁲􀁴􀁕􀁉􀁬􀁬� �􀀺􀀧􀁾􀁏􀁬􀀡􀁬􀀠·:MasTec Building the eWorLd REVEHUES % 􀁣􀁩􀁾􀁮􀁴􀀮􀀠from $ mI!. 1999 www.·:-MasTeC.COM COMPANY INFORMATION .:-M a sTe c Management Team MasTec has assembled a dedicated management team with the experience and knowledge to complete any project. Our team's technical expertise is further demonstrated by our management ability in the design, construction, and logistics associated with the daily activities unique to utility projects. Mas Tee's management team is trained to identify key milestones, schedule dates, and any special procedure required for the preparation of each site or project well In advance of actual construction, and to meet challenges that accompany the design-build functions of this industry. After decades of experience, MasTec has a successful record in project development and construction management and is a leader in turnkey projects. This experience has given MasTec a complete understanding of customers' needs and concerns from an owner's perspective. Listed below are biographies of some of the key members of the management team. Austin Shanfelter President and Chief Executive Officer Prior to being named President and CEO, Mr. Shanfelter served as MasTec's COO from March 2000 until August 2001. Prior to being named Chief Operating Officer, he served as President of our Broadband Services group from January 1997. Mr. Shanfelter has been in the datacom infrastructure industry since 1981. Mr. Shanfelter has been a member of the Board of Directors of the Power and Communications Contractors Association (PCCA), an industry trade group, since 1993. He is also the Chairman of the Cable Television Contractors Council of the PCCA Mr. Shanfelter is also a member of the Society of Cable Television Engineers since 1982 and the National Cable Television Association since 1991. Carmen M. Sabater Executive vice President & Chief Financial Office' Carmen M. Sabater has been Chief Financial Officer since May 1999 and Executive Vice President since February 2001. From 1994 until May 1999, Ms. Sabater was our Controller. Prior to jOining us, Ms. Sabater was a Senior Manager with Deloitte & Touche, a public accounting firm. www.·:-!I/1asTeC.COM COMPANY INFORMATION ·:-Ma sTe c Jose R. Mas Executive Vice President & Business Development Prior to being named as Executive Vice President of Business Development, Mr. Mas served as President of Local Exchange Network Services. Mr. Mas is a graduate of the University of Miami, where he obtained a Bachelor of Business Administration and a Master of Business Administration with specialization in International Business. Jose Sariego Senior Vice President and General Counsel Jose Sariego has been our Senior Vice President and General Counsel since September 1995. Prior to joining us, Mr. Sariego was Senior Corporate Counsel and Secretary of Telemundo Group, Inc., a Spanish language television network, from August 1994 to August 1995. From January 1990 to August 1994, Mr. Sariego was a partner in the Miami office of Kelley Drye & Warren, an international law firm. Dennis Edwards Group President Mr. Edwards' primary focus is on energy services. Prior to being named Group President, he was President and COO of Weeks Construction, which MasTec acquired in November 1997. Mr. Edwards has worked in the energy services field since 1969 in various engineering and management positions. Mr. Edwards is a member of the Power & Communications Contractor's Association, Institute of Electrical and Electronics Engineers, and North Carolina Citizens for Business & Industry. Mike W. Hunter Group Pmsident Mr. Hunter's primary focus is on intelligent traffic services (ITS). Prior to being named Group President, he was President and COO of M.E. Hunter & Associates, Inc.• which MasTec acquired in January 1998. Mr. Hunter has over twenty years experience in the highway industry providing infrastructure service and communication systems including CCTV, video detection. computerized Signing systems and computerized traffic control systems. www.·:-MasTeC.COM COMPANY INFORMATION .:-M a sTe c Robert W. Pine GfOUp President Mr. Pine's primary focus is in broadband service. Mr. Pine has contributed to the strategic acquisition process to build Broadband Services as well as the implementation of administrative and operational procedures. Mr. Pine was a practicing certified public accountant for 20 years prior to entering the Broadband industry. Mr. Pine received a Bachelor of Science in Accounting from SI. Bonaventure University and is a member of the Power and Communication Conctractors Association. Gary Tarr Group PresIdent Mr. Tarr focuses on Wireless, Switching & Access, and Enterprise Networks services. Prior to joining MasTec, Mr.Tarr was Vice President-Central region for Exodus Communications Inc., the world's largest web-hosting company. Prior to Exodus, Mr. Tarr was President and \ Chief Executive Officer of American Information Systems, /Inc. (AIS), a provider of internet and Intranet based business solutions. Exodus acquired AIS in 1999. For nearly 20 years prior to AIS, Mr.Tarr worked at Cyborg Systems Inc., a payroll and human resource software vendor, the last four years as President and Chief Operating OffICer. JirnW. Wilde Group President Mr. Wilde's focus is telecom services. He oversees the implementation of fiber optic networks through turn-key services, project management, and network development. Prior to joining the MasTec family in July of 1997, he was stockholder and Vice President of Operations of Wilde Construction, Inc. and Northland Contracting, Inc., as well as owner of Wilde Optical Services, Inc. Mr. Wilde has over 25 years of hands-on experience in the telecommunications and underground utilily industry. www.·:-MasTeC.COM COMPANY INFORMATION .:-M a sTe c MasTec Service Lines Mas Tee is organized around its clients to better serve them -providing a suite of end-to-end services to the communications and energy industries. Led by seasoned professionals. MasTec's service lines are designed to provide expertise in speCific industries and focus on the needs of current and prospective clients in those industries. Switching, Access and Monitoring Services MasTec works in partnership with communication companiesl competitive local exchange carriers, wireless carriers and Internet Service providers to expand and upgrade its distribution systems. By doing this, we are able to incorporate vastly greater speed and bandwidth. We design, engineer, install, and manage the switching, transmission, and power equipment for the communication service providers. Inter-Exchange Network Services MasTec provides a full complement of ser"Vices needed to implement flber optic networks. From city to city. we connect the local communication loops which serve most metropOlitan and urban areas. These critical networks form the backbone of the Internet and high capadty datacom services. Local Exchange Network Services MasTec designs and builds the fiber optic and copper communication infrastructure that connects businesses and homes throughout metropolitan areas. Our dlents, the incumbent telecom companies (IlECs) and new local exchange carriers (ClECs), use these faalities to offer advanced voice, data, and Intemet services to their customers. Broadband Services MasTec plans, engineerS, installs, and monitors fiber optic networks that deliver cable televisron, interactive video, and high speed Internet access to the home. These set'Vices meet the increased consumer demand for entertainment and information services, which is increasing at a tremendOUS rate. Wireless Services MasTec provides turnkey installation and maintenance services to keep pace with the explosive growth in wireless communication, Whether ft is CDMA1 TOMA, GSM, MMDS, or LMDS technology, MasTec provides the infrastructure installation solution. Our services include site acquisition, placement of antennas and associated cabling, design and construction of towerS and antenna mounts, and installation of transmission equipment and shelters. Intelligent Traffic Services MasTec installs and maintains 􀁳􀁴􀁡􀁴􀁥􀀭􀁯􀁦􀁍􀁴􀁨􀁥􀁾􀁡􀁲􀁴􀀠variable message Signs, dosed drcuit video cameras, and electronic sensors into central control centers to speed traffic flow and provide early warning of potential delays. This technology improves highway safety, increases efficiency, and reduces pollution. Enterprise Network Services MasTec designsr installs, monitorsl and maintains integrated voice, data, and video networks for Fortune 500 companies, universities and schools, and government agencies. MasTec can provide the entlre infrastructure required for an organization'S local network, wide area network, and interfaces to the Internet and intranet. Systems integration and consulting resources within the company assure that customers will have reliable network solutions to meet their end-to-end business needs. Energy Services MasTec designs and builds distribution systems for electric, gas, and pipeline companies as well as interCity fiber optiC communications along the same right-of-ways. These installation and maintenance services are of critical Importance to energy companies as they deal with a deregulated marketplace. www::-M a s Tee .COM COMPANY INFORMATION .:-M a sTe c Customer Relationships I Lucent Technologies .. 0'... SOUTHERN A comcastCOMPANY 􀁦􀁾􀁾􀀠􀁾􀁔􀁘􀁕􀀠g::_-=-:.= 􀁾􀀠Level(3)W ":.II 􀁾􀀠'O"UKIO" .. ' @BELLSOUTH'> cO FUJITSU veri• on 􀁉􀁔􀁥􀁾􀁡􀀺􀁄􀁥􀁰􀁡􀁲􀁴􀁭􀁥􀁮􀁴􀁯􀁦􀁔􀁲􀁡􀁮􀁳􀁰􀁯􀁲􀁴􀁡􀁴􀁩􀁯􀁮􀀠CP&L Qwest. AT&T <:> DOMINION NEeERICSSON ;:: .1. " ",." *Sprlnt. cox eo "HUN Ie A I ION S 􀁎􀁾􀁒􀁔􀁅􀁌􀀠NETWORKS FPL. SKANSKA􀁾􀀠Global Crossing OIRECTV . TIMB WARNBR 􀁾􀁒􀁃􀁎􀀠A Duke r"Power A Duke Energy Company DeLL. www.·:-MasTec.COM COMPANY INFORMATION .:.."'1 a sTe c ecas LOCAL EXCHANGE NETWORK SERVICES www.·:-MasTeC.COM COMPANY INFORMATION .:-M asTe c General Information Local Exchange Network Services is one of the eight service lines MasTec operates. Local Exchange Network Services was formed to meet the needs of telecommunications providers, energy companies, and governmental agencies. We provide engineering and construction services to incumbent telco's and the new competitive local exchange carriers (CLEC's) allowing them to offer new high speed voice, data, and intemet services to their customers. We also provide construction services to the energy industry including gas and electric installation. We offer a turnkey solution to our customers from the initial design and engineering phase thru the final documentation phase and all points in between. Our services include route development, right of way acquisition, engineering, permitting, materials procurement, and construction through trenching, directional bores up to a mile in length, aerial cable installation, splicing, acceptance testing and as-built documentation. Local Exchange Network Services maintains offices throughout the United States to meet the demands of our customers. MasTec owns and operates all the necessary eqUipment to complete any project. Listed below is just a snapshot of the equipment resources has in the MasTec Local Exchange, MasTec InterExchange, and MasTec Broadband service lines. Additional resources are available from our regional subcontractor relationships also MasTec will rent additional equipment as needed. Local Exchange Network Services 391 Backhoes 17 Trackhoes 64 Directional Bore Rigs (various sizes) 40 Cable Plows (conventional and vibratory) 146 trenchers 23 Telsta I Bucket Trucks InterExchange Network Services 128 Backhoes 4 Trackhoes 74 Directional Bore Rigs (various sizes) 62 Cable Plows (conventional and vibratory) 17 Trenchers (various sizes) Broadband Services 12 Mobil Fiber Optic Splicing Labs 350 Cable Placing Aerial Lifts 12 Directional Boring Rigs 30 Backhoes 20 Trenchers 500 Service Technicians Vehicles www::-M a s Tee .C OM COMPANY INFORMATION .:{Y1 a sTe c \ j Joint Trenching MasTec Division Trenches Through Rock For Electrical, Gas Installation by Jeff Gtlffln • Senior Editor The 1);llI(tS·Fon Worth mcuop[cli 􀁴􀁾􀀠m).: ,,( dv: fasWM Itfl.wing 􀁦􀁕􀀢􀀧􀁾􀁉􀀼􀀻􀀠• 11rn: pol)' in Tex..H, hut in ,III .1' h\l.ir,,:,"sch 􀁬􀁮􀁤􀁵􀁾􀁴􀁲􀁩􀁡􀁬􀀠􀁩􀀺􀀧􀁃􀀱􀁨􀁴􀁾􀀤􀀬􀀠h"m<-" l!J'\d aJ"')f!!Ht'n15, m"l ,htll1pin:;: .kVI.--hlpmcnb. 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J1IIcm;Hinfml "nd.j,...:,nd CmWIIU!\IL1\􀀡􀁩􀁬􀁭􀁾􀀠and cnnll\' infr.I-i!nKlIIh' 􀁾􀁾􀁲􀁶􀁫􀀨􀀢􀀠prtwi.kt d".Ili!lliug, £u!1HntctWI! ami 11\,I(nlnini!\),' iuter1'1:11 ;md 􀁾􀀾􀀺􀀧􀀺􀁬􀁣􀁭􀁭􀀻􀀱􀀱􀀠􀁴􀁬􀀧􀀻􀁮􀁭􀁬􀁪􀁦􀁜􀁌􀁾􀀻􀁪􀁕􀀢􀀧􀁉􀁜􀀧􀀠:111..1 􀁾􀁮􀁣􀀧􀀱􀀧􀀢􀀠{.ldlili",,," 􀀯􀁉􀀧􀁬􀁡􀁾It'( PlmlO lh cnmpte!ing-I he 11M YC'ar of II fh'c-ycar contract !\$ (hl! single roufCe conuactnr to powide designs, builds, installs and maintains internal and external networks supporting the Internet, Internet-related applications, e-commerce and other communications and energy facilities for leading telecommunications, cable television, energy and Fortune 500 companies. ### This press release and any accompanying doC'Ul1tJ!ntS am.tain or may t:OtUoin 􀁦􀁯􀁲􀁷􀁡􀁲􀁤􀁾􀀯􀁯􀁯􀁫􀁩􀀧􀁮􀁧􀀠statements, such as slDtements regarding MasTec 'sfoture growth and profitability, growth strategy, andanticipated "elUis in the 􀁩􀁾􀁴􀁲􀁩􀁥􀁳andet:oMmies in w/Uch MasT", operates. These forward-looking SUlJ_ are based on MasTec', current expectations and are subject to a number ofrisks, uncertainties. and assumptions. Should one or more ofthese risks or uncertainties materio1ize. or shoWd the wuier/ying assumptions prove i1JCfJrTeCt a::rual results may differ signifo:mily from results expressed or Implied in arryforward-looking statement:; mode by MbsTet: In this press release. These and other risks are detailed In this press release or _entsfiled by MasT,,", with the Securities end frclumge Cornmi.sslOf< MasTet: does nat onder(Qfre arry obligation to revise thesefarward-looldng _ements to reflectfoture events ort;ln;ums/tUIt;I4S, BuiLding the e-World 􀁟􀁾􀁾􀀮_______________·:·M a sTe c MASTEC, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts} Thre1:: Months Ended Twelve Months Ended December JI, December:>l. 2000 1999 2000 1999 Revenue: Datacom S 326,485 S 259.800 S 1.132,599 S 849.201 Energy 34,2.5tJ 39.417 142,386 15J.l79 Brazil 16.891 13.229 55.311 55,220 Other 0 0 0 t,422 3n.6.26 312,446 1,330,296 1.059,022 CostS ofrevenue 290.665 235,673 1,011.878 803.799 􀁏􀁥􀁰􀁾􀁩􀁡􀁕􀁯􀁮􀀠12.246 12,579 52,413 46.448 Amoltiarion 2,399 3,018 11,042 9,700 General and administrative expenses 27,545 27,405 98,521 91.898 Interest expense (3.908) (5.858) (18.283) (26,673) Interest income 1,076 903 4,973 9,398 OIher (c:xpense) income, net (450) !6S 563 108 CIwge$ (1) 􀁾􀀲􀀸􀀮􀀸􀀴􀀲􀀩􀀠(l0,200l /26,3 19l (l0.200) lru:ome before provision for income taxes and minority Interest 12,547 18.781 1Il,376 79,810 Provision for income taxes (4.997) (7.912) (45,877) (33,266) Minority interest @1!) 182 @521 P,EIS) Net inc:ome S 7,239 S 11,051 .S 65.t47 S 44.726 Pro format:arnings per share (I) Weighted average common shares outStanding 41.634 42,237 46,390 41.714 Basic earnings pet $fuue (1) s 0.$2 S 00.40 S 1.7. S 1.22 Weighted 􀁡􀁶􀁥􀁾common shares outstanding 49,44l 43,535 48,374 42,624 Diluted earnings per sh.are (I) S 0.50 S 0.39 S l.67 S 1.19 Actual earnings: per $ba.rt Basic earnings per share S 0.15 S 0.26 $ 1.40 S 1.07 Diluted earnings per share S 0.15 $ 025 • S 1.35 .$ l.0$ (1) Charges primarily ftom write down of non-oore assets net of gain. not included in pro forma earnings per share of 517.3 million for the: quarter ended December 31, 2000, $15.9 million for the year ended Decemebr 31, 2000 and $6 ,0 million for the fourth quarter and year ended December 31, 1999, ····Building the e-World ___________.:-M a sTe c MASTEC, INC. CONSOLIDATED BALANCE SHEETS ( In thousands) Current assets: Cash and cash equivalentS Accounts receivable. net Inventories Other current assets =rotal current assets 􀀬􀀭􀀮􀀮􀀢􀀮􀀮􀁾Assets S Deeembet'.31, Zoo!) 18,457 394,980 19,643 29,184 462,164 December 31, 1999 $ 27,635 251,576 14,164 34,634 328,109 Property and equipment. net Intangibles, net Other assets 159,673 237,398 80,544 153,527 151.555 􀀹􀀵􀁾􀀱􀀸􀀠Total assets $ 939,879 $ 728,409 Liabilities and Shareholders' Equity CUl'TC!lt Liabilities: Current marurlties ofdebt Accounts payable Other current liabilities Total C'I.lt1'lmt liabilities oS 5,685 85,797 108.379 199,861 S 12,100 74,408 71,882 158,490 Other liabilities 33.530 45,628 Long"term debt 206,160 267,458 Commitments and contingencies Shareholdcnl equity: Common stock CopitaI surplus Retained earnings Accumulated translation Total sharehold",,' equity 4,770 346,099 166.350 (16,891) 500.328 4,135 167,387 101,103 !I5,992)· 256,833 Total liabilities and shareholders' equity S 939,879 S 728,409 Building the e-World 2 _____________________ ·;·M a sTe c MASTEC. INC. CONSOLIDATED STATEMENT OF CASH FLOWS (!n thotJ,sant'ls) Cash flowfrom operatiog activities: Net income Adjustments to reconcile net income to net cash (used in) provided by operating actMties: Depreciation and amortization Minority interest Loss on sale orwrite downs atassets Changes in assets and tiabilities net of effect of acquisitions Net cash (used in) pro\lided by operating activities Net cash used in investing activities Netcash provided by (used in) financing activities Net (deQ"ease) increase in cash and cash equivalents Effect oftranslation on cash Cash and cash equivalents-beginning uI period Cash and cash Gquivalents-end of period Year Ended December 31. 2000 1999 S 55,147 S 44,726 53.455 56.148 352 1,818 22,574 9,798 (153.400) 7,645 (11,871) 120,135 (57,676) (70.283) 62,157 (38,791) (7,390) 11,061 (1,788) (3,2!lO) 27,635 19._ $ 18,457 $ 27,635 Building the e-World 3 -{VI a sTe c Contact: Carmen M. Sabater 3155 N.W. 77th Avenue Senior Vice President & CFO Miami, FL 33122 305-406-1866fcsabater@mastec.com Tel: 305·599·1 BOO Fax: 305·406·1908 w.NW.mastec.com For Immediate Release MASTEC ANNOUNCES RECORD QUARTERLY RESULTS Third Quarter Highlights • North American revenue increased to $365.5 million, • North American net income increased 52.9% over last year and 39.2% sequentially, • Earnings per share increased 35.0% to $0.54 from SOAO in the same quarter last year for North American operations, • Earnings per share, excluding amortization, was SO.58 for the third quarter of 2000, compared to S0.42 for 1999 for North American operations, • Consolidated revenue up 27% and net income up 46%.. • Datacom services revenue up 31% over last year and up 33% sequentially, with 14.8% operating margins. MIA.lVrI, FL (October 25, 2000) -MasTec, Inc. (NYSE:MTZ) reported North American net income of $26.3 million or SO.54 per share on revenue of S365.5 million for the three months ended September 3D, 2000, compared to net income ofSI72 million or SOAO per share on revenue of $2912 million for the same period in 1999, an increase of52.9% in net income and 25.5% in revenue over the same period last year. The 2000 results exclude severance charges oiS!.7 million (before taxes). "We set out to deliver, and we did," said Joel-Tomas Citron, President and Chief Executive Officer. "Our performance this quarter reflects our team memhers' ongoing commitment to deliver exceptional results to our shareholders and superior services to our clients. We continue to focus on our end to end solution and our ability to cross sell additional services generating strong growth within our existing client base." For the third quarter of2000, MasTec reported the following for its North American operations: Revenue from our top !O clients accounted for 48% of North American revenue, compared to 36% in 1999, a 33% growth in revenue from our top 10 clients. Major clients were; BellSouth 8%, Williams Communications 7%, 7%, and Qwest!US West, Sprint, Telergy, Leve13 and Comeast each 5%. Additionally, revenue from previously announced strategic alliances accounted for 4 % of revenue. Backlog at Septemher 30, 2000 was $1.5 billion substantially all ofwlrich will be performed in the next 18 months. 􀀮􀀬􀁾􀀮􀀠.. Exteroal Network Services revenue was $284.7 million, up 29.1% from 5220.6 million in the same quarter last year and up 36.2% sequentially due to increased growth in local loop and broadband services. Operating margin was 15.3% in 2000 and 15.8% in the same quarter last year. Margin in 2000 was impacted by unusually wet weather conditions. SequentiallY, margins increased by 60 basis points from the second quarter of 2000 due to improved asset"iltilizalion. . ... . Internal Network Services revenue was $46.9 million up 46.6% from S32.0 million in the same quarter last year and up 15.8% sequentially due to increased growth in central office and design services. Operating margin was 11.3% , up 470 basis points from 6.6% in the same quarter last year and in line with the second quarter of 2000 despite start-up costs in network monitoring services. Energy Network Services revenue was 533.9 million down 12.2% from $38.6 million in the same quarter last year and down 8.1% sequentially due to lower productivity resulting from poor weather conditions in the east coast. Operating margin was 7.8% ,up 130 basis points from 6.5% percent in the same quarter last year and down 230 basis points from the second quarter of 2000 due to lower productivity as a result of wet weather. BuiLding the e-WorLd ·:-MasTec As pan of a management review process, the ComPaJ1Y adjusted its person:nel in certain markets, resulting in a );1.7 million (before taxes) severance charge. Our Brazilian operations reported revenue of );16.8 million up 69.7% compared to $9.9 million for the same quarter last year and up 48.7%, sequentially and operated at break even for each period. The Company reported that a chiefoperating officer for the division had been named. The Company's consolidated quarterly net income was :526.1 million or $0.53 per share (based on 49.0 million diluted shares) on revenue of$382.3.million compared to net income of$17.1 million or..$0.40 per share (based on 43.1 million diluted sruUes) on revenue of$301.I million for the same period in 1999. In the first nine monthS of2000, cash and cash equivalents plus short-term investments increased by $25. 7 million to 553.3 million, primarily due to proceeds from a stock offering, sales of non-core assets and cash flow from operations. Cash flow from operating activities was 517.4 million for the three months ended September 30,2000 compared to $14.0 million in the same quarter last year, excluding collections from a client with extended payment terms. For the quarter ended September 30, 2000, North American days sales outstanding improved to 73 days. Capital expenditures totaled $12.5 million for the quarter bringing the year to date amount to $40.7 million compared to $21.0 million for the same quarter last year or $57.7 for the nine months ended September 30, 1999. The reduction in capital expenditures when compared to 1999 was due to better utilization ofcapital assets. The income tax rate was 41 % for the quarter, which is expected to be the tax rate in the fourth quarter and for 2001 compared to 41.5% for the same period last year. At the end ofthethird quarter, our debt-to-total capital was 30% comparedto 52% at the end of 1999. "Our outlook forthe fourth quarter is positive, " said Mr. Citron. "We also expect, revenue growth of20-25% for 2001 with earnings growth outpacing revenUe growth. We believe our major clients will continue capital spending, especially in the area ofbroadband, loca1loops, last mile hops and central offices. " Members ofthe executive team will hold a conference call on Thursday, October 26, at 11 am. (ES1) to discuss the Company's performance. The conference call:number is 913-981-4913. Please dial in to the teleconference 10-15 minutes in advance. A conference call replay will be available from October 26 through November II by dialing 719-457-0820, confirmation code 658368. Additionally, the call will be web casted. Please visit our website at www.mastec.com. investor relations section and click the button to listen to MasTec's Earnings Conference Call. .... .. ... .-..... ........ ..... .... . Please visit MasTec's Investor Relations web page at http://www.mastec.comlframe_investor.esp for financial sections ofthe press release. These sections may be downloaded into Excel for your convenience in analyzing CompaJ1Y data. Faxed copies ofthe financial sections are available by calling toll free 1-877-MASTECl. MasTec.is the, largest end-to-end commu;nkations and energy infrnstructure service provider in North America. MasTec designs, builds, installs and maintains internal and external :networks supporting the Internet, Internet-related applications, e-commerce and other communications and energy facilities for leading telecommunications, cable television, energy and Fortune 500 companies. ### This press release arid any accompanying documents contain or may contain 􀁦􀁯􀁲􀁷􀁡􀁲􀁤􀁾􀁴􀁯􀁯􀁫􀁩􀀮􀁮􀁧􀀠statemen1S. such as statements regarding Mas Tee'sfuture growlh and profiuwility, growth straleg)'. and anticipated trends in lhe industries and econamies in which MasTec operates. These forward-looking slatemenfS are based an tLt/asTec's current expeclotlons and are subject to Q number of risks, uncertainties, and assumptions. Should one or more ofthese risks or uncertainties materialize. orsllOU/d tbe under/ying alSWnptlons prove prove incorrect. actual results tn(ly d!ffer signifiCt:Jntly from results e.!pressed or implied in any forward-looking slDtements made by MasTec I'n thLs press release. These and other risks are detailed i'n this press release or documentsfiled by MarTec with the Securities and Exchange COmmission. MasTec does not undertake any obligation to revise thesefarward-Iooking statements ID reflectfotnre events Or cim1l11,slDnces. Building the e-World Building the e-World .•• Building the e-World .• i Building the e-World.u ___________________·:·M a sTe c CONSOLIDATED BALANCE SHEETS (10 thousands) Sepcember 30, December 3 t. 2000 1999 (Unaudited) Assds CutTent Assets: Cash and short-term investments S 53,321 s 27,635 Accounts receivabJe, unbilled revenue and retainage. ner 360,029 251,576 Inventories 16,927 14,264 Other current assets 33,075 34,634 Total current assets 463,353 328.109 Assets held for sate 25,314 53,639 Property and equipment, net 160.340 153.527 mvcsnnent in unconsolidated companies 17,687 18,006 Intangibles, net 233.716 151.556 Other assetS 30,948 23,572 Total assets S 937,358 s 728,409 Liabilities and Sb"reholdets' Equity Current Liabilities: Current mantrities ofdebt S 8,374 S 12,200 Accounts payable: 98,532 74,408 Other current liabilities 100.840 71,882 Total current liabilities 207.746 158,490 Other liabilities 42,116 45.628 Lang.-term debt 200.476 267,458 Commitments and contingencies " 􀁾􀀠.... ,.--" -. * •..•.• -􀁾􀀠􀀬􀁾􀀮􀀠". 􀁾􀀭􀀮􀀢􀀢􀀠.'.. ....,-Sharehold"",' equity; Common stock 4,759 4,235 Capital surplus 339,713 167.387 Retained earnings 159.111 101,203 Foreign currency translation adjustmems (16.563) (15.992) '-, "'Total shan:holders' equitY 487.020 256.833 TotalliabiHfies and shareholders' equity S 937.358 S 728.409 Building the e-World .•m 􀁟􀁾_______________.:-M a sTe c CONSOLIDATED STATEMENTS OF CASH FLOW (In thousands) {Unaudited) NineMontbs Ended September 30, ::1000 1999 Cash flows from operating activities: Net income $ 57,908 S 33,675 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 48,810 40,551 Minority interest 41 2,000 (Gain) loss on sale ofassets (4,764) 3,488 Changes in assets and liabilities net ofeffect of acquisitions: Accounts receivables, unbilled revenue and retainage. net (82,779) (16) Inventories and other cWTent assets (14,807) (1l,826) Other assets (19,357) 4,204 Accounts payable JI,595 5,802 Other current liabilities 20,199 (3,549) Other liabilities (10,054) 1,324 Net cash provided by operating activities 6,792 75,653 Cash flows from investing activities: Capital expenditures (40,734) (57,659) Cash paid for acquisitions (net ofcash acquired) and contingent consideration (50,352) (13,3!l) Repayments ofnotes receivable 1,100 18,667 Distribution 10 joint venture partner (4,900) Proceeds from assets held for sale 53,613 7,657 Net cash used in investing activities (41,273) (44,646) Cash flows from finaneing activities: .. . _. 􀀭􀀭􀁾--,Repayments, net from revolving credit facilities .... ---f74,663) ._._, -. .• _. 􀂷􀀧􀁾􀀭􀁴􀀲􀀲􀀻􀀱􀀰􀀵􀀩􀀠.. . ---Net proceeds from common stock issued 136,004 􀀳􀁾􀀳􀀴􀀳􀀠Net cash provided by (used in) financing activities 61,341 (18.762) Net increase in cash and cash equivalents 26,860 12,245 Effect oftranslation on cash (1,173) (3,453) Cash and caSh equivillents·, oeginiling ofpenod 27,635 19,864 Cash and cash equivalents -end ofperiod $ 53,322 $ 28,656 Building the e-Wor 1 d ·sm --------------------------------.:{VI a sTec Contact: Cannen M. Sabater 3155 N.W. 77th Avenue Senior Vice President & CFO Miami, FL 33122 305-406-1866/"sabater@mastec.com Tel: 305·599·1800 Fax: 305-406·1908 services@mastec.coID -www.mastec.com For Immediate release MASTEC EXPANDS LOCAL EXCHANGE CAPACITY MIAMI, FL (September II, 2000) -MasTec, Inc. (NYSE: MTZ) today announced the acquisition of four telecom infrastructure service providers primarily serving local exchange carriers in Midwest and West Coast metropolitan areas. MasTec believes these acquisitions will generate approximately $10 million in revenue, $0.01 in earnings per share, and $0.02 in after tax cash flow per share in the fourth quarter of 2000. For 2001, MasTec believes the acquired companies will generate approximately $60 million in revenue, $0.10 in earnings per share, and $0.13 in after tax cash flow per share. All the acquisitions will be accounted for as purchases. "With the acquisition ofFlaire, Renegade, Cruz-Cell and Dresser-Areia, Areia, we have increased our capacity in new and growing local exchange markets in order to better serve our nationwide clients," said Joel-Tomas Citron, President and CEO of MasTec. MasTec is the largest end-ta-end communications and energy infrastructure service provider in North America. MasTec www.mastec.combuilds.installs.maintains and monitors internal and external networks supporting Internet, Internet-related applications, and other communications and energy facilities for leading telecommunications, cable television, energy and Fortune 500 companies. This press release and any QCCf)mpanying documents contain or mt1y contain forwarrUooit:ing statetnen1S, such as slD.tement.s regarding MosTec's .fUture gtrJlNth and profitability, growth strolegy. and antidpated trends in the industries and economies in which MasTec operates. These forwan:l-loo/ring :statements are based on 􀁍􀁡􀁳􀁔􀁥􀁣􀀭􀀧􀁳􀁾􀁲􀁔􀁥􀁬􀀧􀁦􀁬􀀧􀁾􀁩􀁯􀁮􀁳􀀭􀁡􀁮􀁤􀂷􀁡􀁲􀁥􀀭􀁳􀁵􀁢􀁪􀁥􀀺􀁣􀁬􀀭􀁴􀁯􀀭􀁡􀀭􀁮􀁵􀁭􀁢􀁥􀁲􀀬􀁯􀁬􀀠risks. uncerlailflies. and assumptions. Should one or more 01these risks or unceTtfJinties materiaiize. or $hou/d the underlying assumptiOns prove incorrect. actI«ll results may dfffer significantly from resullS expressed or implied in ony forward-looking _enlS made by MasTec in this press release. These ond other risla are detailed in lhis press release or documentsflied hy MasTec with the Securities and &change Commission. Ma.sTec.does not yndertake anychligation ID revise theseforward-1ooking statements to rejleclforure events or r:irr:umslances. Building the e-World.