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If Mr. Dan Zack January 4, 2008 Page 3 EXHIBIT A incurred for on-going operating costs, (fuel, maintenance, etc.). The estimated expense to provide all services associated with this operation is less than $2,000 per month. A pro forma estimate of all anticipated costs is attached as Exhibit A to this proposal. To be able to properly track the additional cost to have Ampco provide this service, we will set this up as a separate cost center (the "On-Street After-Hours Program"), which will clearly show all cost of providing the service completely separate from all existing services. In exchange for our expanded duties, we will charge the City an additional management fee of $750 per month, plus a separate data processing fee of $250 per month to cover Ampco's costs of statement preparation and back-office accounting. We recognize the City's need for flexibility in this program, and suggest that we immediately implement the program on a month-to-month basis. Our current contract allows our duties to be expanded by mutual agreement; I suggest a simple amendment to add these duties and describe the additional associated costs and fees. Please let me know if you would like me to draft this document for your review. We are ready to implement this program on Monday, January 14th, pending written notice from the City to proceed on the terms outlined herein. This expansion is a natural fit for Ampco and allows the City to quickly and cost- effectively provide the necessary support to your new program - assuring that it gets off to a proper start. Chet, William and the rest of our crew look forward to being given the opportunity to expand our relationship with you and the Redwood City team in continuing to improve the City's parking program. Please call me when you are ready to proceed. srre'Y'1 J me~~back Di ctor of Business Development JMH:tbm Cc: Steve Picard Chet Adams Rod Howery Enclosure