POWER OF ONE FOUNDATION INC. - Laserfiche WebLink

Home Browse Search

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