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June 12, 2002 <br /> <br />ICASARRUSCOUNfl'I <br /> NORTN CAROLINA <br /> <br />MEMORANDUM <br /> <br />TO: Board of Commissioners <br /> <br />RE: Food Service Contract Proposals - EXPO <br /> <br />Per Board directives, Ms. Porter (Attorney), Ms. Dubois. (Assistant Finance Director), Mr. <br />Chappuis and myself completed discussions with the Compass Group and Carolina Food <br />Systems (CFS). <br /> <br />There are two (2) separate agreements being prepared. Each, although similar, does vary as to <br />terms, compensation levels and fiscal responsibilities. This overview is provided to help <br />summarize key points and to assist the Board in reaching consensus. (Timing is important.) <br /> <br />(The contracts will be faxed once completed.) <br /> <br />Legal issues have been left to Ms. Porter, and I am comfortable that she has covered significant <br />aspects of liability and responsibility attached to each contractual relationship. <br /> <br />FINANCIAL ISSUES <br /> <br />In both cases, the agreements are for contracted management of food service and beverage <br />operations. The County assumes full operational expense and receives the gross revenue <br />(directly) from food and beverage operations. Food service operations include concession stands <br />(5), banquet business and food carts (# TBD). The selected firm will employ staff, purchase <br />food, handle alcohol licenses, prepare and serve meals. All of which will be reimbursed by the <br />County. <br /> <br />COMPASS GROUP: <br />· Management Fee - $100,000 Annually. <br />· NO financing cost on equipment purchase. <br />· A bonus program tied to performance above established goals. <br />· County directly receives all food service revenues and pays Compass monthly for "expenses" <br /> associated with food purchases and staffing. <br />· The County determines the "surcharge" applied to off-site catering functions when clients <br /> require a third party caterer to provide services. Compass retains control of alcohol service if <br /> applicable. Suggested "surcharge" would range from 20 - 25%. The Count3, receives the <br /> "surcharge." <br /> <br /> office of the County Manager <br />P.O. Box707 · Concord, NC 25026-0707 · 704-920-2100 · Fax 704-920-2820 · Charlotte 704-375-0829 <br /> www. co.cabarrus.nc,us <br /> <br /> <br />