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County Administrator's Report 12. 7.

BCC Regular Meeting

Budget & Finance Consent

Meeting Date:	04/09/2015
Issue: SMG Incentive Fees
From:	Stephan Hall
Department:	OMB
CAO Approval:

RECOMMENDATION:

Recommendation Concerning Payment of the SMG Incentive Fees for the Pensacola Bay Center - Stephan Hall, Management and Budget Services Interim Department Director

That the Board approve the issuance of a Purchase Order to pay incentive fees to SMG for Fiscal Year 2014 for performance incentives, in the amount of $152,354, and for concessions, in the amount of $89,698, for a collective total of $242,052, as part of the SMG Management Services Agreement approved by the Board on February 16, 2012.

[Funding: Fund 409, Bay Center Management Fee, Cost Center 360401, Account 53401]

BACKGROUND:

On February 16, 2012, the Board approved to extend the Pensacola Civic Center Management Services Agreement with SMG, a three-year Agreement for management services at the Pensacola Bay Center, commencing October 1, 2012. The extension allowed for 5% commission on all food and beverage revenues and an incentive fee of 35% of any reduction in the net loss up to $250,000 over a pre-established benchmark or 40% of any reduction over $250,000. The Agreement also required that SMG pass an annual facilities inspection to qualify for any incentive.

BUDGETARY IMPACT:

[Funding: Fund 409, Cost Center 360401, Account 53401]

LEGAL CONSIDERATIONS/SIGN-OFF:

N/A

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

Board approval is necessary.

IMPLEMENTATION/COORDINATION:

N/A

Attachments
Incentive Fee Invoices
SMG Incentive Chart
BCC Action and Agreement