AG 2017 12 18 - Laserfiche WebLink

Home Browse Search

CABARRUS ARENA EVENTS CENTER.— � r � 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. Ouantitative Fee For the year ending June 30, 2017, SMG surpassed the $1,393,638 Gross Operating Revenue threshold that triggers the quantitative fee. Gross Operating Revenue for the year was $1,4.47,732. 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 based on Gross Operating Revenue in excess of the threshold is as follows: $ 1,447,732 Gross Operating Revenue -$ 1,393,638 Fee Threshold $ 54,094 Gross Operating Revenue in Excess of Fee Threshold x 15% Percentage of Excess Revenue Available for Fee V $ 8,114 Potential. Quantitative Fee for FY 2017 The calculation to determine the quantitative fee cap is $101,279 Base Management Fee x 75% Cap Percentage $75,959 Maximum Possible Quantitative Fee Based on these calculations and the current management agreement, the quantitative fee due SMG for fiscal year 2017 is $8,114. Qualitative Fee For the fiscal year ending June 30, 2017, 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 fee to SMG of $24,560. $25,320 Maximum Qualitative Fee per Agreement x 97% Percentage of Total Points Awarded to SMG © $24,560 Qualitative Fee Due SMG Attachment number 1 \n F-6 Page 86