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5 <br />costs) + $9,005 (entire stadium rental fee) <br />If the Revenue exceeds total costs, the City will receive the maximum cost recovery and stadium <br />rental fee outlined in Milestone 4 in the table above, plus twenty percent (20%) of Revenue in <br />excess of Total Costs. <br />Example #1 <br />If the event only generates $132,594 of Revenue (25% of total costs), the City will only receive <br />$13,259 (10% of the Revenue) to offset its costs. This would result in a net loss of $105,289 <br />($13,259 Revenue, less $118,548 cost). <br />Example #2 <br />If the event generates $530,374 of Revenue (100% of total costs), the City will receive <br />reimbursement for the $118,548 of flooring and the $9,005 Eddie West Field at the Santa Ana <br />Stadium Rental Fee that would have normally been charged. <br />Example #3 <br />If the event generates $775,950 of Revenue, as estimated by the Foundation , the City will receive <br />the same $118,548 cost recovery and $9,005 Eddie West Field at the Santa Ana Stadium Rental <br />Fee in the previous example, plus $49,115 ($775,950 Revenue, less $530,374 total costs, <br />multiplied by 20%). <br />Appropriation Adjustment <br />City staff requests an appropriation adjustment of $118,548 for the cost of flooring rental from the <br />City’s General Fund balance available for spending (currently estimated at $1,508,397). As <br />discussed above, the City will recover some portion of this cost. If the Event generates Revenue <br />as outlined in Example #3 and the City receives an additional $49,115 of Revenue, the City staff <br />will return to City Council with a proposed appropriation adjustment to enable additional department <br />spending. <br />Table 2-Proposed Revenue Sharing Arrangement Between Foundation and City <br />Milestone Cost Recovery (%)Foundation City City Projected <br />Revenue After Expenditures <br />5 100%+80% 20% <br />If all Milestones are met, the City anticipates a <br />minimum revenue of $47,314 <br />3) Foundation shall provide to City in writing an accounting of all Revenue collected from <br />the Event and expenditures made by Foundation for the Event within thirty (30) days of <br />the Event. <br />4) City will have thirty (30) days to review the accounting and if the City deems necessary, <br />within the thirty (30) days to notify Foundation in writing an audit of the accounting by a <br />third party certified public account (“CPA”) of City’s choosing and at City’s expense. If <br />the City’s thirty (30) days to review the accounting elapses with no action by the City or <br />City does not request an audit within those thirty (30) days or City notifies Foundation at <br />any time during City’s thirty (30) day review period that it will not be seeking an audit, <br />Foundation shall pay City its share of the Revenue within fourteen (14) days thereafter. <br />5) If City deems an audit is necessary, the audit will be done and the results <br />Exhibit 1