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ATTACHMENT #1 OF EXHIBIT A <br /> J. OPERATOR COMPENSATION <br /> 1. Direct Costs <br /> a. Contractor shall bill the City weekly all direct costs incurred pursuant to <br /> Sections G and I herein. <br /> 2. Monthly Fee <br /> a. During the term of this Contract,in addition to direct costs incurred and <br /> reimbursed as specified in Article K.3d and K.3e, the City shall pay the <br /> Contractor, on a monthly basis, a fixed management fee in the amount of <br /> $7,000 $7500 per month for American Legion Memorial Golf Course and <br /> $5,500$6000 per month for Walter E.Hall Golf Course_;provided <br /> - - , . -: .. -. payment for the month of the Effective Date <br /> shat be made pro rata based upon the number of days remaining in the <br /> month including and after the Effective Date. The City will pay the <br /> monthly fee electronically, after services have been rendered,within 30 <br /> days receipt of an invoice from the Contractor,provided,however,that the <br /> Contractor provide the City with the monthly Facility Sales Report <br /> (Sample attached as Exhibit I) for each course within 3 days of the end of <br /> each month. This report must be reconciled to the City's monthly Cash <br /> Collection Report for each course. Any variance will be resolved with the <br /> Contractor before the monthly fixed management fee is paid. <br /> b. The list of Contractor services performed for the monthly fee is contained <br /> in Exhibit J. <br /> c. The monthly management fee shall not be increased during the <br /> renewalinitial term of the Contract. <br /> d. During the term of this Contract,the City shall pay the Contractor a <br /> growth incentive based on the financial performance of each course. The <br /> growth incentive takes into account total gross revenue, Operator Direct <br /> Costs,the Gross Operating Profit and the Contractor's written submittals, <br /> including subsequent written proposal clarifications, as part of the <br /> response to the City's Request For Proposal,2007-002. The following is <br /> used to calculate the annual growth incentive. It is based on the <br /> netcombined total gross operating profit(i.e.total gross revenue [minus <br /> applicable taxes] from golf course operations minus Contractor direct <br /> costs and merchandise and food/beverage cost of goods sold). The net <br /> gess operating profit is subtracted from the annual minimum threshold <br /> amount resulting in the amount for the incentive payment calculation <br /> based on the tiers in the Incentive Structure. The minimum threshold <br /> amount is listed in table 1 below. The first$50,000 is multiplied by 10%. <br /> The next$50,000 is multiplied by 12%. The third$50,000 is multiplied by <br /> 9 <br /> 16 <br />