Full Text
January 18, 2000 Dear Randy, ! wanted to thank you for taking the time to stay in touch these past few months. I'm glad the Y2K bug turned out to be just another late night at work' It is exciting to see how the parks and recreation departments in different cities have evolved over the years. It's not just a community pool an;more1 We just finished a project with the City of Roseville in Northern California. Their cost of goods was averaging nearly 50%, and as we get ready for the 2000' season, food cost should come do\\TI to about 32%, and a 20% increase in sales. This should bring an additional $19,000 to the bottom line! Here is the outline of our proposal to assist with the opening of the new operations at your new outdoor facility. You sent me a list of items that you would like us to either complete, or assist with developing. So, in outline form, here is the scope of the work that we would complete: Scope of the project: 1) Equipment Purchase: Profitable Food Facilities (PFF) would provide a vendor out of Northern California that works on a cost +I 0-12%. r will need to confirm the final equipment list with y ou sometime soon. We should also put the equipment out for bid locally, and then compare the bids. 2) Preparation ofTimeline issues, written policies, procedures, and protocol for the Operation of the concession: As we discussed, a manager search should be under way . Once this individual is found, PFF would establish contact and create a "timeline to opening day This includes assisting in the development of a training manual, policies and procedures, restaurant job descriptions and procedural lists for the operation. A finalized menu will need to be completed very soon to create most of the materiaL We will provide the manager with some of the restaurant forms so that all they will need to do is "fill in their information." 3) Providing on-site assistance: PFF will be on-site in the around the middle of May following the hiring of the staff Working with the manager, staff procedures, and operating procedures are just a partial list of what we will cover. A final report will be provided within 7 day s of departure. ---PAGE BREAK--- 4) Ongoing support: Beginning in February of2000, PFF will provide ongoing support for the project. This includes unlimited phone support, analyzing the first season's data, and ongoing conference calls, and we can even phone interview some potential managerial candidates to assist with hiring and establishing a positive relationship right up front. This is just a general outline. The total expenses for the on-site visit are outlined as follows Airfare: Lodging: Rental Car: Airpot·t parking: Per Diem: Consulting Fee: Round trip airfare 2 night at a local hotel Rental car for the two days. 3 days A daily allowance included All fees are due immediately upon completion of work and prior to our departure from Moscow Total consulting Fee: Estimated Total Trip E:..:penses: Total Estimated Cost: $3300.00 $ 649.00 $3949.00 These fees include all of the preliminary work and analysis, and a comprehensive follow-up report on the current operations. My operations expert is Bob Mark, and he will be in touch in the coming weeks to assist with the interview process. He has personally opened 40 restaurants and 7 of our facilities in the past 12 months. His phone number is [PHONE REDACTED] lf you have any additional questions, please don't hesitate to call. Otherwise, we should be in touch early next week to confirm. r look forward to working with you and your restaurant team on this project. Sincerely, 1/iLW Mike Holtzman ---PAGE BREAK--- Agreement Notes: (Please fax this page back to [PHONE REDACTED]) 1. Fees for the scope of this project have been determined in each phase of the project. Our nonnal billing rate for any project is $1250.00 a day. Because of our commitment to you as a client, we will reduce the daily rate to $1150.00 per day. Any additional hours above this amount will be billed at the normal rate. upon approval from the City of Moscow (COM), or a desi!,'llated representative. 2. Profitable Food Facilities (PFF) will be available for additional consultation with COm at the special billing rate of $1150.00 per day plus expenses tor this project. 3. Additional travel days would be billed at the normal rate. Additional travel time is billed at one half of the normal rate. 4. 1/z of the consulting fee ( $1500.00) would be due within 30 days of signing our agreement. Balance of the consulting fee and all travel and expense fees would due upon completion of our on-site visit. Liability limitation: The City of Moscow (COM) and Profitable Food Facilities (PFF) have discussed the risks, rewards and benefits of the project and PFF's total fee for services. The risks have been allocated such that COM agrees that to the fullest extent permitted by law, PFF' s total liability to COM or owner/client for any and all injuries, claims, losses, expenses, damages. or claims expenses arising out of this agreement from any cause or causes shall not exceed 1/2 of the amount of the project fee. Such causes include but are not limited to PFF"/Iigence, errors. ominct liab1hty, breach of contract or breach of warranty. /1 Vt . . r1/ I 1 1gnature ofChent* representattve I