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HomeMy WebLinkAboutOrdinance 22456-10-2016 Ordinance No. 22456-10-2016 AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS BY A COMBINED TOTAL OF$192,000.00 IN THE AVIATION GAS LEASE CAPITAL PROJECTS FUND, AVIATION ENDOWMENT GAS LEASE FUND, GENERAL GAS LEASE CAPITAL PROJECT FUND, GENERAL ENDOWMENT GAS LEASE FUND, PAC GAS LEASE PROJECTS FUND, PAC ENDOWMENT GAS LEASE FUND; MUNICIPAL GOLF GAS LEASE CAPITAL PROJECT FUND, LAKE WORTH GAS LEASE CAPITAL PROJECTS FUND, WATER AND SEWER GAS LEASE CAPITAL PROJECTS FUND; AND THE WATER AND SEWER ENDOWMENT GAS LEASE FUND, ALLOCATED PROPORTIONATELY, TO PROPERLY RECORD FEES PAID TO WELLS FARGO BANK, N.A, IN FISCAL YEAR 2016 FOR BANKING AND MINERAL-LEASE-ADMINISTRATION SERVICES; PROVIDING A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES, REPEALING ALL ORDINANCES IN CONFLICT HEREWITH;AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allocated to the various City departments for Fiscal Year 2015-2016 in the Budget of the City Manager,there shall also be increased estimated receipts and appropriations in a combined total of$192,000.00 in the Aviation Gas Lease Capital Projects Fund, the Aviation Endowment Gas Lease Fund, the General Gas Lease Capital Project Fund, the General Endowment Gas Lease Fund, the PAC Gas Lease Projects Fund, the PAC Endowment Gas Lease Fund, the Municipal Golf Gas Lease Capital Project Fund, the Lake Worth Gas Lease Capital Projects Fund, the Water and Sewer Gas Lease Capital Projects Fund; and the Water and Sewer Endowment Gas Lease Fund, to properly record fees paid to Wells Fargo Bank N.A., in fiscal year 2016 for banking and mineral-lease-administration services, with each fund being allocated its proportionate share of the total cost based on the relative percentage that mineral revenues for that fund for the year bear to the total mineral revenues received for the year. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion orjudgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance No. 21873-09-2015 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APP VEDO FORM AND LEGALITY: CI SECRETARY �c� DenisI yZECTIVE: sistant City Attorney ary J. Kay ADOPTED AND October 11, 2016 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 10/11/2016 - Ordinance No. 22456-10-2016 DATE: Tuesday, October 11, 2016 REFERENCE NO.: **G-18846 LOG NAME: 21 GAS LEASE CONSULTANT FEES FY2016 SUBJECT: Adopt Ordinance Increasing Appropriations in Multiple Funds by a Combined Total Amount Up to $192,000.00, Allocated Proportionately, to Properly Record Fees Paid to Wells Fargo Bank, National Association, for Banking and Mineral-Lease-Administration Services Provided in Fiscal Year 2016 Under City Secretary Contract No. 45281 (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council adopt the attached appropriation ordinance, increasing estimated receipts and appropriations in Fiscal Year 2016 in the identified funds by a combined total amount up to $192,000.00, allocated proportionately, to properly record fees for banking and mineral-lease- administration services provided in conjunction with management of the City-owned mineral interest properties under Fort Worth City Secretary Contract No. 45281: 1. Aviation Gas Lease Capital Projects 2. Aviation Endowment Gas Lease 3. General Gas Lease Capital Project 4. General Endowment Gas Lease 5. Lake Worth Gas Lease Capital Projects 6. PAC Endowment Gas Lease 7. PAC Gas Lease Capital Projects 8. Municipal Golf Gas Lease Capital Project 9. Water/Sewer Endowment Gas Lease 10. Water/Sewer Gas Lease Capital Projects DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to appropriate funds for the costs of banking and mineral-lease-administration services, with each participating fund being allocated its proportionate share of the total cost based on the relative percentage that mineral revenues for that fund for the year bear to the total mineral revenues received during the year. In December 2012, the City Council approved an Agreement with Wells Fargo Bank, National Association (Wells Fargo), to provide banking and trust services associated with the collection and management of the City-owned mineral interest revenues from multiple gas companies (M&C P-11467; City Secretary Contract No. 45281). The Agreement has a term of five years, with the fee for banking and mineral-lease- administration services set at $16,000.00 per month. In accordance with the terms of the Agreement and the current Financial Management Policy Statements, the banking fee is proportionately taken on a monthly basis from the various funds outlined above. For accounting purposes only, this M&C officially appropriates funds associated with the fees for Fiscal Year 2016 to the various funds for the banking and mineral-lease-administration services provided by Wells Logname: 21 GAS LEASE CONSULTANT FEES FY2016 Page 1 of 2 Fargo. In accordance with the terms of the contract, Wells Fargo has paid itself throughout the year. Thus, approval of this M&C does not further reduce the mineral revenues in Fiscal Year 2016. Because the expenditures were incurred during Fiscal Year 2016, that is the period in which they will be appropriated and accounted for. The final actual allocations will be determined by the Mineral Management Section of the Property Management Department and the associated accounting entries will be recorded. This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION /CERTIFICATION: The Director of Finance certifies that upon adoption of the attached appropriation ordinance, funds will be available in the Aviation Gas Lease Capital Projects, Aviation Endowment Gas Lease, General Gas Lease Capital Project, General Endowment Gas Lease, Lake Worth Gas Lease Capital Projects, PAC Endowment Gas Lease, PAC Gas Lease Capital Projects, Municipal Golf Gas Lease Capital Project, Water/Sewer Endowment Gas Lease and Water/Sewer Gas Lease Capital Projects. FUND IDENTIFIERS (FIDs): TO Fund Department Accoun Project Program ctivity Budget Reference # moun ID IDYear Chartfield 2 FROM Fund Department ccoun Project Program ctivity Budget Reference # �mounl ID ID Year Chartfield 2 CERTIFICATIONS: Submitted for City Manager's Office by: Jay Chapa (5804) Originating Department Head: Steve Cooke (5134) Additional Information Contact: Jean Petr (8367) Logname: 21 GAS LEASE CONSULTANT FEES FY2016 Page 2 of 2