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Waterloo Food & Fuel -2- March 11, 2003 Claim No. 014120 The actual costs and scope of work performed must be consistent with the pre-approval for it to remain valid. Only the tasks/costs reflected on the above table are pre-approved at this time. The Fund will review any tasks/costs that go beyond the pre-approved amount to determine if the additional tasks and costs are necessary and reasonable. The work products must be acceptable to the County and the Regional Water Quality Control Board. The Fund regulations require three bids for corrective action work unless three bids are unnecessary, unreasonable or impossible under the particular circumstances. Because the proposed costs appear reasonable, it is unnecessary to obtain three bids for the proposed corrective action efforts; the Fund's three bid requirement is waived for this scope of work only. Any future scopes of work are subject to the three bid requirement unless a waiver of the bidding requirements is received. If a different scope of work becomes necessary, then you must request pre-approval of costs on the new scope of work. Although I have referred to Advanced GeoEnvironmental, Inc.'s proposal in my pre-approval above, please be aware that you will be entering into a private contract: the State of California cannot compel you to sign any specific contract. This letter pre-approves the costs as presented in the proposal dated January 28, 2003 by Advanced GeoEnvironmental, Inc. for implementing the September 16, 2002, Advanced GeoEnvironmental, Inc. workplan. If you need assistance in procuring contractor and consultant services, don't hesitate to call me. Please remember that it is still necessary to submit the actual costs of the work as explained in the Reimbursement Request Instructions to confirm that the costs are consistent with this pre- approval before you will be reimbursed. Please insure that your consultant prepares their invoices to include the required break down of costs on a time and materials basis, that invoiced tasks are consistent with the original proposal, and that reasonable explanations are provided for any changes made in the scope of work or increases in the costs. When the invoices are submitted you must include copies of all: subcontractor invoices, technical reports, when available, and applicable correspondence from the County. Please call if you have any questions; I can be reached at (916) 341-5796. California Ellvfronmental Protection Agency %4 Recycled Paper