Laserfiche WebLink
r <br />• <br />Cabarrus Arena Management Incentives for FY2008 <br />The management agreement between Cabarrus County and SMG outlines incentives for SMG to exceed certain <br />performance thresholds. This total fee is composed of a quantitative portion relating to Gross Operating <br />Revenue and a qualitative portion relating to more subjective performance measures. <br />Quantitative Incentive Fee <br />The Quantitative Incentive Fee calculation for FY 2008 uses an amended method that more closely aligns with <br />essential operational performance measurements than that used in previous years. <br />For the year ending June 30, 2008, SMG surpassed the $591,066 Grass Operating Revenue threshold that <br />triggers the quantitative incentive fee. Gross Operating Revenue for the year was $1,001,014. Asper the <br />management agreement, SMG should receive a quantitative incentive fee which is the lesser of fifteen percent <br />of Gross Operating Revenue in excess of the threshold or an incentive cap equal to seventy-five percent of the <br />base fee. <br />The calculated incentive based on G <br />$1,001,014 <br />- 591 066 <br />$ 409,948 <br />x IS% <br />$ 61,492 <br />ross Operating Revenue in excess of the threshold is as follows: <br />Gross Operating Revenue <br />Incentive Threshold <br />Gross Operating Revenue in excess of Incentive Threshold <br />Percentage of Excess Revenue Available for Incentive <br />Potential Incentive for FY 2008 <br />The calculation to determine the incentive cap is: <br />$95,000 Base Management Fee <br />x 75% Cap Percentage <br />$71,250 Maximum Possible Incentive <br />Based on these calculations and the current management agreement, the quantitative incentive fee due SMG for <br />fiscal year 2008 is $61,492. <br />Applying the amended calculation method to Quantitative Incentive Fees paid at the conclusion of the two <br />previous fiscal years results in a lower quantitative incentive fee due SMG. The reconciliation of the fees due <br />SMG and the fees paid in prior years follows: <br />Fee Due Under Amoun# <br />Amended Calc. Paid SMG <br />FY 2006 $33,729 $39,660 <br />FY 2007 $26,418 $49,979 <br />FY 2008 $61,492 __________ <br />Net Quantitative Incentive Fee Due SMG <br />Amount Due <br />SMG(County~ <br />($5,931} <br />($23,561) <br />61 492 <br />$32,000 <br />it <br /> <br />i~ <br />n <br />0 <br />0 <br />0 <br />Item# 5 <br />Attachment number 2 <br />F-1 Page 68 of 185 <br />