Your mechanic has rightly assumed the valve stems will be bent and will have to be renewed. He has also estimated for flattening the head which may no longer be flat enough to seal against the block. Flattening ( or levelling in your words) involves setting the head on a large milling machine and cutting as much metal off as is necessary to achieve a dead flat surface, usually in the region of 10 to 20 thousandths of an inch. It's a problem more often associated with an over heating engine.
I don't know the details of your engine but it must have a belt, a chain, or gears to drive the camshaft. Gears have been out of favour for decades, and chains are rare nowadays, so I assume it has a belt. Check your service schedule in the handbook to find out exactly what should have been done and when. Your service history will show if the scheduled work has been done.