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f ' A PPw jbgrutrena ent's nter Cabarrus Arena Management Fees for FY2015 The management agreement between Cabarrus County and SMG outlines fees for SMG related to certain performance thresholds. This total fee is composed of a quantitative portion relating to Gross Operating Revenue and a qualitative portion relating to more subjective performance measures. Quantitative Fee For the year ending ,Tune 30, 2015, SMG surpassed the $1,290,073 Gross Operating Revenue threshold that triggers the quantitative fee. Gross Operating Revenue for the year was $1,447,487. In accordance with the management agreement, SMG should receive a quantitative fee which is the lesser of fifteen percent of Gross Operating Revenue in excess of the threshold or a quantitative fee cap equal to seventy -five percent of the base fee. The calculated quantitative fee based on Gross Operating Revenue in excess of the threshold is as follows: $ 1,447,487 Gross Operating Revenue - $ 1,290,073 Fee Threshold $ 157,414 Gross Operating Revenue in Excess of Fee Threshold x 15% Percentage of Excess Revenue Available for Fee $ 23,612 Potential Quantitative Fee for FY 2015 The calculation to determine the quantitative fee cap is: $100,312 Base Management Fee x 75% Cap Percentage $75,234 Maximum Possible Quantitative Fee Based on these calculations and the current management agreement, the quantitative fee due SMG for fiscal year 2015 is $23,512. _Qualitative Fee For the fiscal year ending June 30, 2015, CabarTus County staff awarded SMG ninety -two of a possible one hundred points in the subjective performance areas of customer service, maintenance and operations, and overall management. Applying the formulas outlined in the management agreement results in a qualitative fee to SMG of $23,072. $25,078 Maximum Qualitative Fee per Agreement x 92 %® Percentage of Total Points Awarded to SMG Q , $23,072 Qualitative Fee Due SMG it Attachment number 1 \n F -5 Page 134