Attachment 8 - Preliminary Geotechnical /Hazard Assessment – Ryzuk Geotechnical – March 4, 2014

Re: Preliminary Geotechnical/Hazard Assessment for Proposed Subdivision 102 Atkins Road – View Royal, BC

As requested, we have completed a preliminary assessment of the referenced site, to identify any geotechnical/hazard issues that could adversely impact the proposed development. This letter summarizes our observations and presents our preliminary comments, but does not provide detailed recommendations regarding issues such as blasting, rock scaling, engineered fill placement, etc. Although none of these issues are expected to present any unique challenges, the details can only be provided once more detailed designs, including grading plans, etc., are developed. We would be pleased to work with your civil engineer on these matters at a later date, if required. Our work has been undertaken in accordance with, and is subject to, the attached Terms of Engagement.

Generally, the site is a triangular parcel bounded to the east by Chilco Road, to the northwest by the E & N Railway, and to the southeast by the Galloping Goose Regional Trail, with Atkins Road beyond. There is an existing house and garage in the northeast part of the lot, accessed by a driveway that ascends from Chilco Road, and an old concrete foundation is located further to the southwest. Ground cover ranges from grass in the vicinity of the noted buildings to bare rock northeast of the house and mixed trees and brush in the southwest part of the site. There is an elevation difference of about 7 m between Chilco Road and the crest of a rock knoll northeast of the existing house, and beyond the house the ground slopes gradually down to the southwest. Much of the northwestern property line roughly coincides with the toe of the railway embankment (the railway is about 4 -5 m above the level of the ground surface in front of the house), and it is possible that associated fill encroaches onto the subject property.

We understand that the proposed development would consist generally of 6 single-family residences and two duplexes, accessed by a new road to be constructed along the southwest property line, off Chilco Road. The narrow southwestern part of the lot, as well as the northernmost portion, would not be developed. Key development issues are likely to include rock excavation (blasting) in the northeastern part of the site, possible fill placement in the southwest portion (depending upon design grades), and possible drainage issues. Retaining walls could be required in some areas, particularly if fill associated with the railway encroaches into any of the building sites. Foundation bearing conditions will likely be good across most of the site, but softer soils could be encountered in the southwest. None of these conditions are considered unique or unusually challenging.

Our assessment is that the proposed building sites will generally be safe and free from natural geohazards, but specific measures could be required to protect some of the buildings from rockfall from excavated rock faces. Such measures could include scaling, construction of rockfall containment structures, or even localized rock bolting, but this can only be determined once the rock faces can be examined following blasting. In this regard, and provided that all natural and excavated rock faces near the building sites are assessed by a qualified geotechnical professional at the time of construction, it is our assessment that the land can be safely used for the use intended, that being a 10-lot residential subdivision. This is pursuant to and in accordance with Section 56 of the Community Charter. The detailed geotechnical assessment should take into account the effect of a seismic event with a 2% probability of exceedence in 50 years where such has the potential to impact a residence. The stability of the railway embankment should also be considered for any residences located close to it.

We trust that the preceding is suitable for your purposes at present, however if you have any questions with respect to the above, please contact us.

TERMS OF ENGAGEMENT

GENERAL

Ryzuk Geotechnical (the Consultant) shall render the Services, as specified in the agreed Scope of Services, to the Client for this Project in accordance with the following terms of engagement. The Services, and any other associated documents, records or data, shall be carried out and/or prepared in accordance with generally accepted engineering practices in the location where the Services were performed. No other warranty, expressed or implied is made. The Consultant may, at its discretion and at any stage, engage sub-consultants to perform all or any part of the Services.

Ryzuk Geotechnical is a wholly owned subsidiary of C. N. Ryzuk & Associates Ltd.

COMPENSATION

All charges will be payable in Canadian Dollars. Invoices will be due and payable by the Client on receipt of the invoice without hold back. Interest on overdue accounts is 24% per annum.

REPRESENTATIVES

Each party shall designate a representative who is authorized to act on behalf of that party and receive notices under this Agreement.

TERMINATION

Either party may terminate this engagement without cause upon thirty (30) days' notice in writing. On termination by either party under this paragraph, the Client shall forthwith pay to the Consultant its Charges for the Services performed, including all expenses and other charges incurred by the Consultant for this Project.

If either party breaches this engagement, the non-defaulting party may terminate this engagement after giving seven (7) days' notice to remedy the breach. On termination by the Consultant under this paragraph, the Client shall forthwith pay to the Consultant its Charges for the Services performed to the date of termination, including all fees and charges for this Project.

ENVIRONMENTAL

The Consultant's field investigation, laboratory testing and engineering recommendations will not address or evaluate pollution of soil or pollution of groundwater. The Consultant will cooperate with the Client's environmental consultant during the field work phase of the investigation.

PROFESSIONAL RESPONSIBILITY

In performing the Services, the Consultant will provide and exercise the standard of care, skill and diligence required by customarily accepted professional practices and procedures normally provided in the performance of the Services contemplated in this engagement at the time when and the location in which the Services were performed.

INSURANCE

Ryzuk Geotechnical is covered by Professional Indemnity Insurance as follows:

1. $ 2,000,000 each and every claim
2. $ 4,000,000 aggregate
3. $ 5,000,000 commercial/general liability coverage

LIMITATION OF LIABILITY

The Consultant shall not be responsible for:

1. the failure of a contractor, retained by the Client, to perform the work required for the Project in accordance with the applicable contract documents;
2. the design of or defects in equipment supplied or provided by the Client for incorporation into the Project;
3. any cross-contamination resulting from subsurface investigations;
4. any Project decisions made by the Client if the decisions were made without the advice of the Consultant or contrary to or inconsistent with the Consultant's advice;
5. any consequential loss, injury or damages suffered by the Client, including but not limited to loss of use, earnings and business interruption;
6. the unauthorized distribution of any confidential document or report prepared by or on behalf of the consultant for the exclusive use of the Client.
7. Subsurface structures and utilities

The Consultant will make all reasonable efforts prior to and during subsurface site investigations to minimize the risk of damaging any subsurface utilities/mains. If, in the unlikely event that damage is incurred where utilities were unmarked and/or undetected, the Consultant will not be held responsible for damages to the site or surrounding areas, utilities/mains or drilling equipment or the cost of any repairs.

The total amount of all claims the Client may have against the Consultant or any present or former partner, executive officer, director, stockholder or employee thereof under this engagement, including but not limited to claims for negligence, negligent misrepresentation and breach of contract, shall be strictly limited to the amount of any professional liability insurance the Consultant may have available for such claims.

No claim may be brought against the Consultant in contract or tort more than two (2) years after the date of discovery of such defect.

DOCUMENTS AND REPORTING

All of the documents prepared by the Consultant or on behalf of the Consultant in connection with the Project are instruments of service for the execution of the Project. The Consultant retains the property and copyright in these documents, whether the Project is executed or not. These documents may not be used on any other project without the prior written agreement of the Consultant.

The documents have been prepared specifically for the Project, and are applicable only in the case where there has been no physical alteration to, or deviation from any of the information provided to the Consultant by the Client or agents of the Client. The Client may, in light of such alterations or deviations, request that the Consultant review and revise these documents.

The identification and classification as to the extent, properties or type of soils or other materials at the Project site has been based upon investigation and interpretation consistent with the accepted standard of care in the engineering consulting practice in the location where the Services were performed. Due to the nature of geotechnical engineering, there is an inherent risk that some conditions will not be detected at the Project site, and that actual subsurface conditions may vary considerably from investigation points. The Client must be aware of, and accept this risk, as must any other party making use of any documents prepared by the Consultant regarding the Project.

Any conclusions and recommendations provided within any document prepared by the Consultant for the Client has been based on the investigative information undertaken by the Consultant, and any additional information provided to the Consultant by the Client or agents of the Client. The Consultant accepts no responsibility for any associated deficiency or inaccuracy as the result of a miss-statement or receipt of fraudulent information.

JOBSITE SAFETY AND CONTROL

The Client acknowledges that control of the jobsite lies solely with the Client, his agents or contractors. The presence of the Consultant's personnel on the site does not relieve the Client, his agents or contractors from their responsibilities for site safety. Accordingly, the Client must endeavor to inform the Consultant of all hazardous or otherwise dangerous conditions at the Project site of which the Client is aware.

The client must acknowledge that during the course of a geotechnical investigation, it is possible that a previously unknown hazard may be discovered. In this event, the Client recognizes that such a hazard may result in the necessity to undertake procedures which ensure the safety and protection of personnel and/or the environment. The Client shall be responsible for payment of any additional expenses incurred as a result of such discoveries, and recognizes that under certain circumstances, discovery of hazardous conditions or elements requires that regulatory agencies must be informed. The Client shall not bring about any action or dispute against the Consultant as a result of such notification.

FIELD SERVICES

Where applicable, field services recommended for the Project are the minimum necessary, in the sole discretion of the Consultant, to observe whether the work or a contractor retained by the Client is being carried out in general conformity with the intent of the Services. Any reduction from the level of services recommended will result in the Consultant providing qualified certifications for the work.

DISPUTE RESOLUTION

If requested in writing by either the Client or the Consultant, the Client and the Consultant shall attempt to resolve any dispute between them arising out of or in connection with this Agreement by entering into structured non-binding negotiations with the assistance of a mediator on a without prejudice basis. The mediator shall be appointed by agreement of the parties. If a dispute cannot be settled within a period of thirty (30) calendar days with the mediator, the dispute shall be referred to and finally resolved by arbitration under the rules of the arbitrator appointed by agreement of the parties or by reference to a Judge of the British Columbia Court.