AG 2012 11 19 - Laserfiche WebLink

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��aba�rrusArena Cabarrus Arena Management Incentives for FY2012 The management agreement between Cabarrus County and SMG outlines incentives for SMG to exceed 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 Incentive Fee For the year ending June 30, 2012, SMG surpassed the $1,080,188 Gross Operating Revenue threshold that triggers the quantitative incentive fee. Gross Operating Revenue for the year was $1,086,103. In accordance with the management agreement, SMG should receive a quantitative incentive fee which is the lesser of fifteen percent of Gross Operating Revenue in excess of the threshold or an incentive cap equal to seventy -five percent of the base fee. The calculated incentive based on Gross Operating Revenue in excess of the threshold is as follows: $ 1,086,103 Gross Operating Revenue - $ 1,080,188 Incentive Threshold $ 5,915 Gross Operating Revenue in Excess of Incentive Threshold x 15% Percentage of Excess Revenue Available for Incentive $ 887 Potential Incentive for FY 2012 The calculation to determine the incentive cap is: $95,000 Base Management Fee x 75% Cap Percentage $71,250 Maximum Possible Incentive Based on these calculations and the current management agreement, the quantitative incentive fee due SMG for fiscal year 2012 is $887. Qualitative Incentive Fee For the fiscal year ending June 30, 2012, Cabarrus County staff awarded SMG ninety -seven 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 incentive fee to SMG of $23,038. $23,750 Maximum Qualitative Incentive per Agreement x 97% Percentage of Total Points Awarded to SMG $23,038 Qualitative Incentive Fee Due SMG Attachment number 1 F -2 Page 40