Schedule 23 - Loss of Revenue

1  Subject to the provisions of this Schedule 23 (Loss of Revenue), any Loss of Revenue Event shall be calculated in respect of each relevant activity by determining the anticipated daily Revenue for the relevant activity in question for the period in question (the Anticipated Daily Revenue) and deducting from that sum the actual daily revenue received for the relevant activity in question for the period in question.

2  The Authority shall be entitled to audit, at frequent intervals, actual revenue received by the Leisure Operator at the [Facilities/Facility].

3  The Anticipated Daily Revenue for each activity shall vary between seasons (as set out in paragraph 4 below), and are set out:

3.1  [in respect of the Initial Phase in the table at paragraph 9 below; and]

3.2  in respect of the Service Period (or any delay in the commencement of the Services Period), in the table at paragraph 10 below.

4  In respect of Gym & Memberships:1

4.1  The High Season rate shall apply in [                     ];

4.2  The Mid Season rate shall apply in [                     ]; and

4.3  The Low Season rate shall apply in [                     ].

5  In respect of all activities except for Gym & Memberships:2

5.1  The High Season rate shall apply in [                     ];

5.2  The Mid Season rate shall apply in [                     ]; and

5.3  The Low Season rate shall apply in [                     ].

6  The Anticipated Daily Revenue rates set out in the tables in paragraphs 9 and 10 below are daily and shall be Indexed.  The Anticipated Daily Revenue rates will be adjusted by agreement between the parties at each [Income Benchmarking Date] to reflect the Anticipated Daily Revenue at such date.  

7  The Contractor shall and shall procure that the Leisure Operator shall at all times take all reasonable steps to minimise and mitigate any Loss of Revenue and the consequences of Loss of Revenue Event which shall include addressing variable costs and making appropriate cost adjustments.

8  Following any Loss of Revenue Event, the Contractor shall not be entitled to recover as a Loss of Revenue, any greater amount than the level of Revenue which it is projected to recover as set out in the tables at paragraphs 9 and 10 below.  

9  [Initial Phase3]

10  Services Period

11  Compensation

The Authority shall (at its discretion) compensate the Contractor in respect of any Loss of Revenue arising from a Loss of Revenue Event by lump sum payment or by instalments (to be agreed between the parties).

Notes

1  The daily rate represents the maximum amount that will be charged for the full day in the relevant high, medium or low season.  The hourly rate will not always be a simple calculation of daily rate divided by hours in the day but should reflect the time of day when the loss of revenue occurs.  For example loss of revenue in the dance studio will be greater in the evening than in the morning.  The booking programme or historical usage patterns may be used to calculate the hourly rate for different times of day and the Authority have the certainty that the loss per day will not exceed the daily rate listed in the schedule.

2  The loss of revenue associated with Bar, Catering and Vending above will be apportioned in direct relation to the revenue loss attributable to the affected Service Area, over the total revenue excluding Bars, Catering and Vending

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1 Project specific information required.  

2 Project specific information required.  

3 Project specific information required.