AG 2006 09 25 Regular - Laserfiche WebLink

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(hA-f\l AG tN\ krJ'I 0sflU;lMf.:..N'l and (ii) this Agreement has not been terminated upon a default by SMG, then the County will during the final year ofthe Management Term (unless the County exercises its option to renew under Section 3.2) or Renewal Term, as the case may be, negotiate and discuss in good faith a new contract or arrangement with SMG for the provision of such services following the comple- tion of such term. The obligation to negotiate with SMG is not intended to guarantee any con- tract rights for a future contract with SMG or any specific terms of a new contract. 4. SMG's Compensation. 4.1 Fixed Fee. As base compensation to SMG for. providing the services herein specified during the ManagementTerm, the County shall pay SMG during the Management Term a periodic fixed fee of $95,000 per Fiscal Year ("Fixed Fee"). The foregoing annual fixed compensation shall be payable in equal monthly installments due on or before the last day of each month dur- ing such Fiscal Year, and SMG, provided it is not in default (as described in Section 12.1) here- under, shall be entitled to draw such amounts from the account described in Section 5.6. In the event of a Renewal Term, the parties shall mutually agree upon the amount, terms and conditions of SMG's remuneration under this Section 4 for its performance hereunder. 4.2 Incentive Fee. (a) Amount. SMG shall be entitled to an annual incentive fee with respect to each Fiscal Year during the Management Term which shall be equal to the amount calculated in accordance with (i) below; provided, however, that in no event shall the totaUncentive fees for any Fiscal Year exceed 100% of the periodic fixed fee payable pursuant to Section 4.1 for such Fiscal Year, and; provided further. that SMG will not be eligible in any Fiscal Year for the Quan- titative Incentive Fee (as defined below) unless the County approved annual budget of net oper- ating income is met or exceeded for such Fiscal Year: . (i) Ouantitative Incentive Fee. SMG shall be entitled to an annual quantitative Incentive Fee ("Quantitative Incentive Fee") with respect to each Fiscal Year during the Management Term equal to fifteen percent (15%) of the excess Operating Revenue over the Operating Revenue Benchmark; provided, however, that the Quantita- tive Incentive Fees shall not exceed seventy-five percent (75%) of the fixed fee payable to SMG for such Fiscal Year pursuant to Section 4.1; and (ii) Oualitative Incentive Fee. SMG may earn an annual qualitative Incentive Fee ("Qualitative Incentive Fee") with respect to each Fiscal Year during the Management Term up to an amount equal to twenty-five percent (25%) of the fixed fee payable to SMGfor such Fiscal Year pursuant to Section 4.1. The amount of the Qualita- tive Incentive Fee shall be based upon an evaluation of SMG's performance by the County with respect to the following qualitative criteria: (a) Professional Management. SMG shall demonstrate professional management of staff by above average ratings on mutually approved service de- livery surveys and a review by the County. (up to 40 points) revised cabarrus agreement vfinal.docrevised cabarrus agreement vfina1.doc 11 @1995.2oo /=--6