Spectra Venue discloses bonuses

Exceeding budget expectations for the South Okanagan Events Centre campus has earned Spectra Venue Management annual performance bonuses averaging $81,000 since 2013, according to information released by the City of Penticton.

Since 2011, the firm’s bonuses have totalled $570,000, ranging from a high of $122,000 in 2013 to a low of $64,000 in 2017.

City finance manager Jim Bauer said the bonuses are calculated on a sliding scale that rewards Spectra for keeping the facilities’ net loss under budget.

The scale starts with Spectra receiving 20 per cent on the first $25,000 under the budgeted loss and increases to 60 per cent of any savings over $100,000.

The bonus amount was capped at $100,000 in the 10-year contract extension approved by council earlier this month without putting it to tender.

Bauer said the city chose not to increase the bonus threshold, however, because of the variability at play in meeting the budget, such as ticket sales and entertainers’ tour schedules.

He also said a contract provision that allowed for Spectra to be penalized for poor performance was removed because it had never been used.

Spectra last year earned $1.4 million, according to the city’s statement of financial information.

The campus is projected to lose $1.2 million this year.