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2017/04/19 Council Agenda Packet
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2017/04/19 Council Agenda Packet
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Council Agenda Packet
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4/19/2017
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6 <br /> EXHIBIT A <br /> CHANGES TO SCOPE OF WORK <br /> Attachment 1, Section J of the Scope of Work is amended as follows: <br /> 1. Table 1 is amended to add columns for 2018 and 2019: <br /> Minimum Threshold Amount(in millions) <br /> 2018 2019 <br /> 2.325 2.350 <br /> Table 1 <br /> 2. Table 2 is amended to add columns for 2018 and 2019: <br /> Incentive Structure <br /> Category Incentive% 2018 2019 <br /> Gross Profit Gross Profit in <br /> in Millions Millions <br /> 1 10 2.325-2.375 2.350-2.40 <br /> 2 12 2.375-2.425 2.40-2.45 <br /> 3 14 2.425-2.475 2.45-2.50 <br /> 4 16 2.475-2.525 2.50-2.55 <br /> 5 18 2.525-2.575 2.55-2.60 <br /> 6 20 2.575+ 2.60+ <br /> Table 2 <br /> 3. For 2018 and 2019, subsections f and g are amended to read as follows: <br /> f. For the year 2018,the minimum threshold for gross operating profit to <br /> earn an incentive payment is $2.325 million($2,325,000.00). For 2019, <br /> this rises to $2.350 million. <br /> g. The percentage incentive payment to the Contractor increases based upon <br /> the gross operating profit range. For example,if in calendar year 2018, <br /> the gross operating profit is two million four hundred fifty thousand <br /> dollars ($2,450,000.00),the incentive payment to the Contractor would be <br /> fourteen thousand five hundred dollars ($14,500)based on the following: <br /> Gross Profit—Threshold= $2,450,000 - $2,325,000= $125,000 <br /> Amount used to calculate <br /> incentive payment <br /> Category 1 Incentive $50,000 x 10%=$5000 <br /> Category 2 Incentive $50,000 x 12%=$6000 <br /> Category 3 Incentive $25,000 x 14%=$3500 <br /> Total Incentive Payment $14,500 <br /> 234 <br />
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