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tion of such term. The obligation to negotiate with SMG is not intended to guaramee any con- <br />tractrights for a firhue contract with SMG or any specific terms of a new contact. <br />4. SMG's Compeasatlon. <br />4.1 Fixed <br />As base compensation to SMG for providing the services herein specified during <br />the Management Term, the County shall pay SMG during the Management Term a periodic <br />fixed fee of $95,1100 par Fiscal Year ("Fixed Fce'~. The foregoing annual fixed compensation <br />shall be payable in equal monthly inatalhnente due on or before the last day of each month dur- <br />ing such Fiscal Year, and SMG, provided it is not in default (as descnbed in Section 12. I) here- <br />under, shall be entitled to draw such amounts from the account described in Section 5.6. In the <br />event of a Renewal Term, the parties shall mutually agree upon the amount, terms and conditions <br />of SMG's remuneration under this Section 4 for iffi porfonnance hereunder. <br />4.2 husntivq Fee. <br />(a) Amoutrt. SMG shall be entitled to an armual 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; Quid 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; rovi Further. that SMG will not be eligible in any Fiscal Year for the Quan- <br />titative Incentive Fee (as defined below) unless rho County approved annual budget of net oper- <br />ating income is met or exceeded for such Fiscal Year: <br />(i) Quantitative Incentive Fee. SMG shall be entitled to an annual <br />quantitative Incentive Fee ("Quantitative Incentive Fee") with respect to each Fiscal Yeaz <br />during the Management Term equal to fifteen percent (1590) of the excess Operating <br />Revenue over the Operating Revenue Benchmazk; provided, however, that the Quantffi- <br />tive Incentive Foxe shall not exceed seventy-Hue percent (75%) of the fixed fee payable <br />to SMG for such Fiscal Year pursuant to Section 4.1; and <br />(ii) Oualitative Incentive Fee. SMG may earn an annual qualitative <br />Incentive Fee ("Qualitative Inoentive Fee") with respect to each Fiscal Year during the <br />Maziagement Term up to an amount equal to twenty-five percent (25°/u) of the fixed fee <br />payable to SMG for such Fiscal Year pursuant to Section 4.1. The amount.of the Qualita- <br />tive hzcendve Fee shall be based upon an evaluation of SMG's performance by the <br />County with respect to the following qualitative criteria: <br />(a) Frofassional Management. SMG shall darnonstate professional <br />management of staff'by above average ratings on mutually approved service de- <br />livery surveys and a review by the County. (up to 40 points) <br />(b) Maintenance and Operation. SMG shall demonshate qualitymain- <br />tenanceand operation of the Facility based upon a review by the County on a <br />rovieea ubarw ~gromnauvaml ~ed.doanviead ao6unv aarmmentva".I md.aae <br />11 <br />m~~s-zoc <br />~3 <br />