Yes to both, apparently their relocation package is the most generous from everything that I've heard.
Is There Any Reason Why I Should Turn Down a Google Job? - Page 2
This times 1,000,000. Even if you've already tried negotiating, just phrase it like this: "I can't afford to take a pay cut, because (1) it will be problematic in advancing my career and (2) the cost of living in Silicon Valley is much higher. Therefore, I can't accept this job offer unless my salary is at least what I make currently." You would be entirely reasonable to say this, plus you have absolutely nothing to lose by saying it, and potentially $10K a year to gain.
You said this opportunity is in the Bay Area; I believe you are referring to Mountain View, where the cost of living is quite high. Factor that in with a $10k pay cut and I think you should NOT take it.
With that said, Google is a great company to work for (albeit overrated; its marketing to attract talent is superb). Have you negotiated for a higher salary? Many people are hesitant to do so but negotiating for an extra 5% is almost never going to hurt you. Justify it by telling them how much you currently earn, how much more you will have to spend to cover the increased cost of living, and go from there.
Sounds like you will be paid by the hour, however. If you believe you have great skills, bonuses are inevitable.
Is Google covering your relocation expenses?