Res 2010-146 - Laserfiche WebLink

Home Browse Search

or protect physical assets of the Airport), any Operating Costs in excess o the Approved Operating Budget which have not been approved by the City prior to incurring such Costs shall be paid for by the Operator. 6.1.2 Operator shall disburse funds from the Operating Account to pay Airport bills in accordance with City policies and the Texas Prompt Payment Act, Tex. Govt. Code, Section 2251 et. sec l. 6.1.3 Incentive Compensation. Operator shall have the ability to earn incentive compensation annually based upon Financial Performance for the prior fiscal year. The purpose of the incentive compensation is to encourage the creative and aggressive marketing and promotion of the Airport with the goal of making the Airport self - sustaining within five years. 6.1.4 Disincentive. The City's issuance of two or more documented written notices of default that the Operator fails to satisfactorily correct according to Articles 8 or 10 during any contract year shall result in a financial disincentive in the amount of 10% reduction of the incentive compensation for the year in which the uncured default occurs. The City's right to impose the disincentive shall neither limit its other remedies or rights under this Agreement nor its right to terminate as provided herein. 6.1.5 Base Year Revenue related to Airport Leases has been calculated based under the current contractual leases currently negotiated at the City of San Marcos and is comprised of T- hangar rents, shelter rents, agricultural land leases, storage area rents, private hangar land rents and commercial facility rents. Base Year Revenue is based off of 2010 actual Gross Revenues. The City will determine the actual amount of Base Year Revenue for the fiscal year ending September 30, 2010 on or before December 31, 2010. a) For each Fiscal Year this Agreement remains in effect, the Operator will be eligible to receive two types of incentives as follows: The categories of Incentive Compensation are: (1) Profit Incentive i) The Gross Revenues of the Airport as defined in Section 1 herein shall be calculated annually at the end of each Fiscal Year. 27