CONTACTS 
0201 - Wolkin & Timpane                   415 982 9390 fax 4328
020101 - Mr. Michael J. Timpane, Esq.

SUBJECTS
Pier 11 Fender project

0403 -    ..
0404 - Summary/Objective
0405 -
040501 - Follow up ref SDS 18 0000, ref SDS 17 0000.
040502 -
040503 - UP requests a payment schedule.  Analysis indiates there is no basis
040504 - for issuing a definitive payment schedule.  Product development and
040505 - marketing show progress on Communication Metrics to generate revenue
040506 - for paying UP. ref SDS 0 5600  Recent events indicate potential for a
040507 - breakthrough in marketing that may result in a revenue stream for
040508 - estimating payment schedule. ref SDS 0 3483
040509 -
040510 - Called Mike and left voice mail message about his letter.
040511 -
040512 -     [On 990303 received letter from Mike. ref SDS 33]
040513 -
040514 -     [On 990308 sent letter with link to this record. ref SDS 37 3312]
040515 -
040516 -     [On 990610 received letter from Mike that he did not receive
040517 -     letter sent on 990308, resubmitted. ref SDS 39 0001]
040518 -
040519 -
040520 -  ..
0406 -
0407 -
0408 - Progress
0409 -
040901 - UP Demands Schedule for Payment of Obligation
040902 -
040903 - Received ref DRT 1 0000 from Mike Timpane requesting a proposal for
040904 - payment of the Welch obligation to UP in the amount of $527,154.88, as
040905 - of 970206. ref DRT 1 4883
040906 - ..
040907 - Mike says UP wants a time frame for making payment based on our
040908 - agreement received on 960522. ref SDS 18 7424
040909 -
040910 - Mike says the day of reconing is here.  UP does not want information
040911 - from Welch on using Communication Metrics to improve UP's management
040912 - and earnings. ref DRT 1 6608
040913 -
040914 - A time frame for making payment requires a revenue stream.
040915 -
040916 -
040917 -
040918 - Schedule for Payment is Not Supported by the Record
040919 -
040920 - Currently there is no revenue stream.  Over the past several years
040921 - there has been minimal to no income due to lack of sales.  During that
040922 - period investment of time in research and development enhanced the
040923 - value and recognition of value in the market place, for Communication
040924 - Metrics, which includes products and services that Welch owns solely
040925 - and is uniquely able to provide.
040926 -
040927 - Background shows there is no rational basis for estimating a payment
040928 - schedule because the date when executives will begin demanding the use
040929 - of Communication Metrics to improve management, reduce costs and risks
040930 - is unknown.  UP's reticence as cited in W&T's letter exemplifies the
040931 - burden of solving this problem.
040932 - ..
040933 - I need Mike's email address to send this record showing efforts
040934 - to repay UP and other creditors on the Pier 11 Fendor job.
040935 -
040936 -     [On 990303 received letter from Mike. ref SDS 33]
040937 -
040938 -     [On 990308 sent letter with link to this record. ref SDS 37 3312]
040939 -
040940 -     [See also tax report to S.J. Gallina on 990221. ref SDS 32]
040941 -
040942 -
040943 -  ..
0410 -
0411 -
0412 - Background
0413 -
041301 - Progress on Payment to UP
041302 -
041303 - On 970328 the U.S. Army Corps of Engineers issued a report stating
041304 - that Communiation Metrics provides an effective "intelligence" role
041305 - that improves management. ref DRP 9 6172  This report was received by
041306 - Welch on 970418. ref SDS 19 3368
041307 -
041308 - Welch made vigorous efforts to secure work with the government based
041309 - on this report, in order to meet the obligation to pay UP.  These
041310 - efforts were rejected on the grounds that there was no evidence that
041311 - the methodology is cost effective, which is the same argument that
041312 - applies to the alphabet.
041313 -
041314 - On 971007 the San Francisco District of the Corps of Engineers issued
041315 - a second report, ref DRP 10 0129, received on 971008, ref SDS 20 2979,
041316 - that estimated Communication Metrics saved the government millions of
041317 - dollars at a cost of less than $50K.
041318 -
041319 - On 971021 developed plan to deliver work product from Communication
041320 - Metrics via Internet. ref SDS 21 9999
041321 -
041322 - On 971105 objectives were set for using the Internet to enhance the
041323 - value of Communication Metrics, and to enable people to grasp the cost
041324 - and time savings inherent in the methodology. ref SDS 22 1459
041325 -
041326 - On 971210 a PG&E manager reviewed initial capability of Internet
041327 - support for Communication Metrics and found that it makes the power of
041328 - "intelligence" easier for executives to understand. ref SDS 23 0000
041329 -
041330 - On 980403 Internet support for Communication Metrics was substantially
041331 - completed.  The San Francisco District Corps of Engineers noted the
041332 - potential for accomplishing self-evident savings of a "paperless
041333 - office" work environment. ref SDS 26 3920
041334 -
041335 - The Corps of Engineers requested a website "home" page to explain
041336 - Communication Metrics concepts and advantages for managers and
041337 - executives.
041338 -
041339 - On 980405 information was developed that executives fear Communication
041340 - Metrics because it supports accountability. ref SDS 27 5065
041341 -
041342 - On 980803 the Communication Metrics home page...
041343 -
041344 -                     http://www.welchco.com
041345 -
041346 - ...was reviewed by the San Francisco District Corps of Engineers, who
041347 - advised that the advantages of this new capability for a "paperless
041348 - office, are self-evident. ref SDS 28 5141
041349 -
041350 - District counsel for the Corps of Engineers was asked for an opinion
041351 - on additional savings Communication Metrics had secured for the
041352 - government. ref SDS 28 2798
041353 -
041354 - On 981027, ref SDS 29 7315, a report from District counsel dated
041355 - 981022 was received which says...
041356 -
041357 -       I can state with certainty that Communication Metrics saved us
041358 -       $187,500 on the RWQCB fine that the Port tried to collect from
041359 -       the Corps.
041360 -
041361 -   ...see para 5. ref DRP 11 6237
041362 -
041363 - This made total savings approximately $500K, which cost the government
041364 - less than $50K, and so supports original estimates of ROI in the range
041365 - of 10:1, as reported on 981027. ref SDS 29 7315
041366 -
041367 - On 981104 USACE Construction Services Branch reported Communication
041368 - Metrics on the Internet is "pretty neat.", ref SDS 30 4320,
041369 -
041370 -     [On 981119 HQ USACE Deputy Chief in Washington D.C. noted in a
041371 -     phone call on using Communication Metrics Corps-wide, that cost
041372 -     savings are self-evident. ref SDS 31 2272]
041373 -
041374 - These efforts, as well as at PG&E, and other firms, show that despite
041375 - evidence of cost savings, executives who approve budgets are blocked
041376 - by ignorance, fear and denial to use Communication Metrics, as shown
041377 - on 980307 in the review of Andy Grove's book. ref SDS 25 1813
041378 -
041379 -     [On 990317 executive for $4B building program at San Francisco
041380 -     International Airport, which needs Com Metrics, says it is cutting
041381 -     edge, but he is totally convinced it works. ref SDS 38 5600]
041382 -
041383 - It is expected that market resistance will be overcome, but there is
041384 - no rational basis to estimate when that will occur.
041385 -
041386 - In order to pay UP a market "breakthrough" is needed.  A light must go
041387 - off in the minds of executives that "intelligence" saves money and
041388 - improves management, and they must exercise the leadership to make
041389 - that improvement.  So long, as no one will take the first step, and
041390 - sustain it long enough for investment to yield rewards, then no
041391 - progress will occur.
041392 -
041393 -     [On 990303 scientific paper shows why Communication Metrics yields
041394 -     cost savings eliminating management mistakes. ref SDS 34 0920]
041395 - ..
041396 - USACE is giving serious consideration to approving Communication
041397 - Metrics for Corps-wide use, and if that occurs, then it may provide a
041398 - market "breakthrough" that leverages wider acceptance.  However, this
041399 - is still months away from a decision.
041400 -
041401 -     [On 990304 HQUSACE recommends Corps wide review for using
041402 -     Communication Metrics. ref SDS 35 7392]
041403 -
041404 -     [On 990305 meeting with San Francisco District on preparing
041405 -     procurement memo for Communication Metrics. ref SDS 36 1716]
041406 -
041407 -
041408 -
041409 -
041410 -
0415 -