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For discussion tomorrow at 10:30am.

Here's what we should propose to CAF. The deal was for approx an $800K success fee as I recall. This always (as standard operating procedure) was contingent on the actual award and when the money is obligated by Amtrak.

Amtrak has so far only allocated $25.8m of the $258m contract. (It is a five year contract at $258m, with the first year only being valued at 10% of the total, $25.8m). So, we would only be receiving 10% of the $800,000 anyway had we had a signed agreement on the success fee. And by the way, $800,000 is .2% of $298m. Way, way below the going rate for these types of things.

I think we should send CAF a letter saying that per our agreement we want to memorialize our understanding on payment of success/sales percentage fees. We should ask for our $80,000 now (the 10%) and agree that the rest is paid out as the money in obligated. We could also look at increasing our annual retainer by $80,000.

We should also agree to help them with the following things:

1) Advice and strategy related to Amtrak
2) Advice and strategy as related to work CAF can do to help Amtrak secure financing for the remaining 90%
3) NY State relations - including work with the Governor (to include a press event ASAP in Elmira)
4) Federal Government Strategy (no lobbying, but this could include a recommendation to hire a lobbyist)
5) Labor Relations

We may even want to look at expanding the relationship to focus on Light Rail.

FYI, Lorenzo wants to schedule a trip to Spain in September to talk to Jesus about this. I don't think we should go until this is finalized.


Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com
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