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Page 3 Cabral-McAdams Property August 29, 2006 Job No. 1828-092.02 Subsurface soils to a depth of about 40 feet generally consist of tan silty sands/sandy silts, brown to red-brown fine sands, and red-brown slightly silty sands. Hydrogeology Surface Water The subject property is situated at an approximate elevation of 20 feet above mean sea level. The maximum site relief appears to be less than two feet, with the exception of an approximate ten-foot rise in elevation along a levee to the north. Natural topography in the immediate vicinity is generally flat and slopes gently to the west-southwest. Normal storm water generated on the subject property would generally infiltrate site soils; when these infiltration rates are exceeded surface water would likely follow the described west-southwesterly trend. The Calaveras River corridor is situated adjacent to and northerly of the subject property Groundwater Historically, the groundwater flow direction in the Stockton area has been westerly from the Sierra Nevada toward the center of the valley. Groundwater elevation data for the past decade obtained from the San Joaquin County Flood Control and Water Conservation District mapping indicate that the groundwater flow direction in the general site vicinity trends northerly toward a large regional cone of depression. Shallow groundwater typically is encountered within about 50 feet of ground surfaces within the vicinity of the subject property. Our subsurface investigations within the area of the former underground tank did not encountered groundwater within 40 feet of ground surfaces. Depending upon seasonal groundwater recharge, the proximity to surface water courses (Calaveras River) and nearby pumping, localized variations in the described depth and flow direction can occur. ENVIRONMENTAL INVESTIGATIONS Our firm prepared a Phase I Environmental Site Assessment report of the property, dated October 5, 2005. I Our Phase I work revealed a number of conditions warranting further investigation, including: the potential for pesticide contamination (including lead and arsenic from potential past application of lead-arsenate) within the orchard areas and near outbuildings; the potential for petroleum hydrocarbon and metals contamination to surface soils near the buildings; and, the potential for petroleum hydrocarbon contamination in the vicinity of a former 1,000-gallon underground gasoline storage tank that was removed in 1989. To evaluate potential pesticide contamination concerns, our firm performed near-surface soil sampling at a number of locations within orchard areas and near out-buildings on the subject I Raney Geotechnical,Inc.;"Phase I Environmental Site Assessment,Cabral Property,APNs 115-230-06 and-07,4202 through 4208 North Sutter Street,Stockton,California";October 5,2005,Raney Reference No. 1828-092.