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SCOPE OF SERVICES PROJECT UNDERSTANDING Sapphos Environmental, Inc. understands that the City of Santa Ana (City) requires the services of an environmental consulting firm to provide environmental services for the City of Santa Ana, Orange County, California. The proposed scope of services will include all work efforts related to the California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA). The proposed services will include the preparation of environmental and technical documents related to specified City projects and the coordination with the City as well as other consultants and agencies. A scope of work has been prepared in response to the details specified in the Request for Qualifications (RFQ) from the City of Santa Ana dated March 19, 2008. Project Approach At the beginning of each project, Sapphos Environmental, Inc. will evaluate the environmental implications of the project. This environmental characterization process will provide the firm and the City of Santa Ana with an initial and significant understanding of the project. As part of its project initiation process, Sapphos Environmental, Inc. will identify any environmental constraints and opportunities associated with each of the proposed projects that may be relevant to the development of that project. Sapphos Environmental, Inc. will ensure coordination with any and all interested parties as well as those parties identified by the City, to ensure that relevant parties are involved in the project and to guarantee the successful completion of each project. SCOPE OF WORK TASK 1 PROJECT INITIATION Work Efforts Upon receipt of written authorization to proceed, the Sapphos Environmental, Inc. senior project manager and project manager will attend a project initiation meeting with the City. The objective of this meeting will be to review the proposed scope of work for the specified project and to finalize the project schedule. At this same meeting, the City would be expected to provide Sapphos Environmental, Inc. with all previously prepared documentation (e.g., technical reports, environmental documents, aerial photographs, and site maps) relative to the proposed project. Sapphos Environmental, Inc. will prepare a Memorandum for the Record (MFR) for the proposed project that summarizes the project description, goals, and objectives as discussed in the project initiation meeting. Sapphos Environmental, Inc. will provide the City with weekly status e-mails and monthly status reports, accompanying the monthly invoice, which will define completed and upcoming work efforts and any significant issues and action items throughout the preparation of the environmental documents. Work Products • One (1) hard copy and one (1) electronic copy in portable document format (PDF) of the project initiation MFR • Weekly status a -mails • Monthly status reports TASK 2 NOTICE OF PREPARATION / NOTICE OF INTENT AND INITIAL STUDY / ENVIRONMENTAL ASSESSMENT Work Efforts Categorical Exemptions / Categorical Exclusions The first step in the environmental process under both CEQA and NEPA is to determine if an activity constitutes a project. Sapphos Environmental, Inc. will review the proposed activity with the City to determine if the activity constitutes a project requiring a discretionary action by a lead agency under CEQA or NEPA. Where an activity APRIL 1 1, 2008 SAPPHOS ENVIRONMENTAL, INC. M:\QUALS\2008\Q 1 47 1-003\SECTION 2\2A - SCOPE.DOC PAGE 2-1