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(� @ PI) �, <br />4. SMG's Compensation. <br />4,1 Fixed Fee <br />As base compensation to SMO for providing the services herein specified during <br />ignty shall pay SMG during.. the Management Tenn a periodic <br />of 100,3 per Fisca] Year ( "Fixed Fee "), which an�ounl shall be adjusted upward on <br />`t Ie� r srsftl, con Imencing with the Fiscal Year ending .1unc 30, 2015, by the <br />percentage change in the Consumer Price Index -- All Urban Consumers (CPI -U) -- U.S. City <br />Average -- All Items, during the one year period ending in June inunediately preceding such Fis- <br />cal Year, as published by the Bureau of Labor Statistics of the U.S. Department of Labor, or of <br />any revised or successor index hereafter published by the Bureau of Labor Statistics or other <br />agency of the United States Goverrunent succeeding to its functions ('`CPI "), The foregoing an- <br />nual fixed compensation shall be payable in equal monthly installments due on or before the last <br />day of each month during such Fiscal Year, and SMG, provided it is not in default (as described <br />in Section 12.1) hereunder, shall be entitled to draw such amounts from the account described in <br />Section 5.6. In the event of Renewal Tenn, the parties shall mutually agree upon the amount, <br />terms and conditions of SMG's remuneration under this Section 4 for its performance hereunder. <br />4.2 Incentive Fee <br />(a) Amount SMG shall be entitled to an alulual incentive fee with respect to <br />each Fiscal Year during the Management Term which shall be equal to the amount calculated in <br />accordance with (i) below; prop vided however, that in no event shall the total incentive fees for <br />any Fiscal Year exceed 100% of the periodic fixed fee payable pursuant to Section 4.1 for such <br />Fiscal Year, and; provided further, that SMG will not be eligible in any Fiscal Year for the Quan- <br />titative Incentive Fee (as defined below) unless the County approved annual budget of net oper- <br />ating income is met or exceeded for such Fiscal Year: <br />(i) Q uantitative Incentive Fee. SMG shall be entitled to an annual <br />quantitative Incentive Fee ( "Quantitative Incentive Fee ") 4ti� e cct to each Fiscal Year <br />during, the Management Term equal to fifteen percen (]5%) of he excess Operating <br />Revenue over the Operating Revenue Benclimark; provi l ever, that the Qua n tita- <br />tive Incentive Fees shall not exceed seventy - five percen'(75 o the fixed fee payable <br />to SMG for such Fiscal Year pUrsuant to Section 4,1; and <br />(ii) Qualitative Incentive Fee SMG may earn an annual qualitative <br />Incentive Fee ( "Qualitative Incentive Fee ") with respect to each Fisnl ear during the <br />Management Term u to an allloLiklt equal to hveklty -five p ercek � t (25 f the fixed fee <br />a able to Si1 for such Fiscal Yeu nu•sLlant to Section 4.1. Tlllrrtlnt of the ualita- <br />p ayable I Q <br />tive bicentive. Fee shall be bused upon au evaluation of SIVIG's performance by the Colul- <br />ty with respect to the following qualitative criteria: <br />(a) Professional Management SMG shall demonstrate professional <br />lnanagcment of staff by above average ratite`s on mutually approved service de- <br />Attachment number 1 \n <br />F -9 Page 168 <br />