Res 2010-146 - Laserfiche WebLink

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ii) For any Fiscal Year in which actual Airport Gross Revenues exceed the sum of actual Airport Operating Expenses established in the Approved Operating Budget, the city's expenditures for capital improvements at the Airport, the city's matching funds for any state or federal grants, and any Revenue Incentive paid for that Fiscal Year, the Operator will receive an Airport Profit Incentive equal to twenty five percent (25 %) of the excess of revenues. (2) Revenue Incentive (i) For each Fiscal Year of the contract in which actual Airport Gross Revenues exceed Base Year Revenues for that Fiscal Year, Operator shall be eligible to receive an "Airport Revenue Incentive" calculated annually at the end of each Fiscal Year equal to 25% of the excess of Fiscal Year actual revenues for the contract year over Base Year Revenues. A hypothetical example of how to calculate the Revenue Incentive is used for illustrative purposes only: Contract Year Fiscal Year Gross Revenue Estimated Base Revenue of $210,734 Adjusted by 4% Annually Revenue in Excess of Adjusted Base Year 25% Revenue Incentive 1 2010 -2011 $ 250,000 $ 219,163 $ 30,837 $ 7,709 2 2011 -2012 $ 220,000 $ 227,930 $ (7,930) $ - 3 2012 -2013 $ 250,000 $ 237,047 $ 12,953 $ 3,238 4 2013 -2014 $ 275,000 $ 246,529 $ 28,471 $ 7,118 5 2014 -2015 $ 300,000 $ 256,390 1 $ 43,610 $ 10,902 b) The total of all compensation (including but not limited to the Airport Revenue Incentive) shall never exceed the fair and reasonable value of the services, or impair the City's ability to issue bonded indebtedness for the Airport under FAA regulations. In such event, the Operator's compensation shall be reduced to comply with FAA regulations. c) The City will calculate the incentive payment on or before December 31" of the Fiscal Year following the Fiscal Year in which the incentive was earned and will pay the Operator the incentive payment, if any, on or before January 51n