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P2009.000.164 BKF Engineers April 15, 2009 Levee Improvements Adjacent to the San Carlos Airport Latest Revision June 30, 2009 PROPOSAL FOR A GEOTECHNICAL EXPLORATION - PHASE 1 Page 3 proposed Boring B-4 and Vane Shear Test VST-3. If Vane Shear Test VST-4 will require night drilling, an additional night shift will be required. Our fee assumes that only Boring B-4 and Vane Shear Test VST-3 will require night work. Depending on site conditions and weather, the field exploration will begin once the required permitting has been obtained. We estimate the time required to complete drilling and Vane Shear Testing will be 3 day shifts and 1 night shift, depending on FAA safety area constraints. The time to complete all portions of the geotechnical study including laboratory testing, analysis, and report preparation will be approximately 4 weeks from completion of the field work. SITE ACCESS, CONDITIONS AND ASSUMPTIONS Necessary removal or unlocking of fences or gates and permission to enter restricted areas of the project from the current owner or leaseholder must be secured by the client prior to our field activities. All field work will be coordinated with the San Carlos Airport Manager at least 48 hours in advance. If site access, unstable roads, weather or tidal conditions restrict our field operations, a revision to our estimate may be necessary. Prior to initiating our subsurface exploration, we request that you provide existing plan and profile improvement drawings to ENGEO for review. Additionally, all known existing utilities and utility easements that are within the proposed project area must be marked by the facility manager and made available to ENGEO at least 5 days prior to our field exploration. We will notify Underground Service Alert (USA) at least 48 hours prior to performing our subsurface exploration which will locate public utilities bordering the property limits. However, ENGEO will accept no responsibility for damage to existing private utilities or public service laterals within the project alignment not accurately located in the manner described above. All additional costs incurred as a result of encountering utilities will be charged on a time-and-expense basis over and above the fee for the geotechnical exploration. In the event potentially hazardous materials are identified visually or by odor within our exploratory borings or VSTs, we will notify you as soon as possible of such an occurrence in order to mutually decide whether to continue, modify, or cease the remainder of the field exploration program. Additional costs incurred as a result of encountering suspected hazardous materials will be charged on a time-and-expense basis over and above the estimated fee for the exploration proposed herein. Soil cuttings and drilling fluid will be placed in 55-gallon drums and will be left on-site at a location designated by the San Carlos Airport. For the five borings and five Vane Shear Tests proposed herein, we anticipate up to 25 drums of spoils and drilling fluid will be generated. We will prepare one composite sample from the drums from each boring (up to six composite samples total) and submit the samples to an analytical laboratory for testing for select potential contaminants such as TPH and BTEX. We have assumed that the airport has an available environmental report(s) that shows there are no other potential contaminants related to the levee fill or past site use; if this documentation is not available, we may need to adjust our analytical