$700 is high as hell.. It only takes a few hours to change a timing belt and water pump in your driveway, and should be less than that for a professional shop. Go somewhere else.

If you're going to replace the water pump, do the timing belt while you're at it. The belt isn't that much $$$ and you won't have to worry about that for a long time. The accessory belts are usually cheap and are a good idea to replace while you're taking stuff off anyway if they haven't been replaced in a long time (or at all).