9c - OVG360 2023 Incentive FeeGlobal Spectrum L.P. (OVG360)
2073 Incentive Fee
Autumn Gressett, Contract Administrator
July 2, 2024
Policy Question
Should the City Council approve the Global
Spectrum L.P. (OVG360) 2023 Incentive Fee in the
amount of $34,489.00 and authorize staff to remit
payment?
Background
Per Section 3.2 of AG 18-088, Global Spectrum L.P.
(OVG360) has performance metrics set to
incentivize reduction of the financial impact to the
City's General Fund. Global Spectrum L.P.
(OVG360) has met and exceeded the performance
criteria set forth in for the operation year 2023.
Qualitative Component: The qualitative component allows the Manager to earn up to
$10,000 each operating year, based on the City's evaluation of performance in five (5)
specific areas. Each area is valued at up to $2,000.
1. Results of Customer Survey Scores
a. $2,000
2. Tenant/Resident Group Relations
1. $1,737.50
3. Quality of Food and Beverage Services
c. $1,955.56
4. Achievement of Annual Event Programming and Attendance Goals in the Theater
d. $500
5. Achievement of Annual Event Programming and Attendance Goals in the Events
Space
e. $500
Total Earned for Qualitative Component: $6,563
4
Quantitative Component: The quantitative component stipulates that the Manager shall
be paid 20% of the amount by which the actual Net Operating Income/Loss exceeds the
Net Operating Income/Loss Benchmark. There is no cap on the amount that can be earned
in this component.
Benchmark for 2023:
$
(1,001,021.00)
Actual Net Loss 2023:
$
(861,390.00)
Ahead / (Behind) Benchmark:
$
139,631.00
Manager's 20% Share:
$
27,926.00
Total Compensation for 2023 - $34,489
Qualitative Component: $6,563
Quantitative Component: $27,926
Explanation of Payment
OVG360 is being paid a total of $34,489 for 2023. This total reflects their combined
earnings from both the qualitative and quantitative components of the performance
evaluation.
Policy Question
Should the City Council approve the Global
Spectrum L.P. (OVG360) 2023 Incentive Fee in the
amount of $34,489.00 and authorize staff to remit
payment?
Mayor's Recommendation
Option 1