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General Store, Inc. 4407 E. Waterloo Road Stockton, CA 95215 (209) 931-2850 • Fax (209) 931-2871 Ernest P. Giannecchini JUSTABOUT EVERYTHING Juris Doctor- President YOU NEED _ GROCERIES, IMPORTED LIQUOR, ITALIAN DELI, KEG BEER, PARTY SUPPLIES, HARDWARE, SPORTING GOODS, •• FAST GAS, BAIT&TACKLE, LOTTERY, OSTRICH MEAT AVAILABLE. San Joaquin County Environmental Health Department March 10, 2009 [NEC / 600 E. Main Street EE EMU Stockton, CA 95202 MAR 12 2009 RE: Ernie's General Store ENVIRONMEN i HEALTH PERMIT/SERVICES 4407 E Waterloo Rd. Stockton, Calif. 95215 Subject: First Quarter 2009 Status Report Attention: Margaret Lagorio and Lori Duncan 1. No work was performed at the site this quarter. 2. 1 appreciated meeting with you to discuss my concerns about the installation of remediation equipment at my location on Waterloo Road. As I stated in the meeting, I have not been dragging my feet on this installation and have been working with my consultant and relying on his direction on how to work through the challenges in getting this done as effectively, efficiently and quickly as possible. Unfortunately, now is a very difficult time in the financial marketplace. As you know,the State Water Resources Control Board has now suspended the UST fund and banks are not loaning money on cleanup operations. I am currently owed about$76,000 from the fund, have to spend approximately$75,000 or more,on EVR/ISD upgrades required by the Air Board, and am also faced with the projected costs of $100,000 for remediation equipment installation and a monthly operating cost of about$6000. If the fund delays payments for the anticipated 2 years, I will be out an additional$244,000 to the fund. Also, by July, 2010, 1 must invest in a required PCI upgrade that may cost up to$50,000. 1 can not afford to do all things. The EVR/ISD is a requirement to keep me in business and that is where I must focus my available funds.