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5.32 SELF -FUNDING PROVISIONS MRC's compensation for providing the GRIP Service is $240,000 payable in accordance with the schedule presented below only if the City/Agency has received sufficient funds from the City's/Agency's share of new revenue produced from MRC's enhancement audits for sales tax and/or other revenue services. Stated another way, payment is deferred until there is adequate audit revenue to cover it. Audit revenue to be included in the self -funding computation must be received by the City/Agency after the date this expanded service is authorized. Based on MRC's enhancement of Santa Ana's revenue, as set forth above, MRC's compensation for providing the GRIP Service is payable as follows: Five monthly progress payments of 10% ($24,000) each; $24,000 to commence 60 working days after MRC's facilitation X 5 of the initial City goal -setting worksession $120,000 Remaining balance due thirty (30) days after delivery of complete GRIP Report and GRIP Query System 1201000 Total: 240 000 The following computation illustrates a hypothetical self -funding example: New revenue produced for City/Agency from MRC's sales tax enhancement audit service $400,000 Less MRC compensation for sales tax enhancement audit service @ 20% 80 000 $320,000 New revenue produced for City/Agency from MRC's audit service for revenue sources other than sales/use tax $300,000 Less MRC compensation for enhancement audit service for revenue sources other than sales/use tax @25% (75,000) 225,000 City's/Agency's share of new revenue: $545,000 Less compensation for GRIP Service (240,000) Net new revenue to City/Agency after compensating MRC for enhancement audit service and GRIP Service 05 000 Should MRC's audit service fail to generate sufficient new tax revenue for the City to cover the above GRIP Service charge, then MRC shall defer the shortfall amount. 31