AG 2014 12 15 - Laserfiche WebLink

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AR��►1 ►`I►A. CabarrusArena Q,Events Center Cabarrus Arena Management Fees for FY2014 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 June 30, 2014, SMG surpassed the $1,169,365 Gross Operating Revenue threshold that triggers the quantitative fee. Gross Operating Revenue for the year was $1,529,034. 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 does not exceed contractual limits and is based on Gross Operating Revenue in excess of the threshold is as follows: $ 1,529,034 Gross Operating Revenue - $ 1,169,365 Fee Threshold $ 359,669 Gross Operating Revenue in Excess of Fee Threshold x 15% Percentage of Excess Revenue Available for Fee $ 53,950 Quantitative Fee for F`i' 2014 Based on these calculations and the current management agreement, the quantitative fee due SMG for fiscal year 2014 is $53,950. Qualitative Fee For the fiscal year ending June 30, 2014, Cabarrus County staff awarded SMG ninety -eight 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 $24,094. $24,586 Maximum Qualitative Fee per Agreement X 98% Percentage of Total Points Awarded to SMG $24,094 Qualitative Fee Due SMG Attachment number 1 F -8 Page 145