HomeMy WebLinkAboutOrdinance 22908-09-2017 Ordinance No. 22908-09-2017
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATIONS BY A
COMBINED AMOUNT OF $1,242,000.00 IN THE AVIATION GAS LEASE CAPITAL PROJECTS
FUND, AVIATION ENDOWMENT GAS LEASE FUND, GENERAL GAS LEASE CAPITAL
PROJECT FUND, GENERAL ENDOWMENT GAS LEASE FUND, LAKE WORTH GAS LEASE
CAPITAL PROJECTS FUND, PAC GAS LEASE PROJECTS FUND, PAC ENDOWMENT GAS
LEASE FUND; MUNICIPAL GOLF GAS LEASE CAPITAL PROJECT 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 2017 FOR BANKING,
MINERAL-LEASE-ADMINISTRATION, AND TRUST/ASSET-MANAGEMENT SERVICES;
PROVIDING FOR 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 2016-2017 in the Budget
of the City Manager, there shall also be increased estimated receipts and appropriations in a combined total of
$1,242,000.00 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 2017 for banking,
mineral-lease-administration, and trust/asset-management 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 or judgment 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.22394-09-2016 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.
,APEaQVED AS T FORM AND LEGALITY: CITY SECRETA Y
I
Denis C.` cElroy, S 'or Assistant City Attorney Pary J.Raoy
r
17
ADOPTED AND EFFECTIVE: September 26. 2017
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/26/2017- -,Ordinance No. 22908-09-2017
DATE: Tuesday, September 26, 2017 REFERENCE NO.: **G-19107
LOG NAME: 03GAS LEASE CONSULTANT FEES FY2017
SUBJECT:
Adopt Ordinance Increasing Appropriations in Multiple Funds by a Combined Total Amount Up to
$1,242,000.00, Allocated Proportionately, to Properly Record Fees Paid to Wells Fargo Bank, National
Association, for Banking, Mineral-Lease-Administration Services, and Trust/Asset Management Services
Provided in Fiscal Year 2017 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 2017 in the identified funds by a combined total amount up to
$1,242,000.00, allocated proportionately, to properly record fees for banking and mineral-lease-
administration services and for the trust/asset management 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 and for the costs of trust/asset management 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. Additionally, the agreement provides for trust/asset
management services with fees based on the size of the assets in the trust and increasing as the size of
the trust increases.
Logname: 03GAS LEASE CONSULTANT FEES FY2017 Pagel of 2
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
2017 to the various funds for the banking, mineral-lease-administration, and trust/asset-management
services provided by Wells 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 2017.
The final actual allocation of the $1,242,000.00 among the identified funds and projects will be determined
in connection with the closing of the fiscal year 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 Fund, Aviation Endowment Gas Lease Fund, General
Gas Lease Capital Project Fund, General Endowment Gas Lease Fund, Lake Worth Gas Lease Capital
Projects Fund, PAC Endowment Gas Lease Fund, PAC Gas Lease Capital Projects Fund, Municipal Golf
Gas Lease Capital Project Fund, Water/Sewer Endowment Gas Lease Fund and Water/Sewer Gas Lease
Capital Projects Fund.
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccoun Project JProgram ctivity Budget Reference # moun
ID ID Year Chartfield 2
FROM
Fund Department ccoun Project Program ctivity Budget Reference # mount
ID ID Year Chartfield 2
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Lynda Johnson (6222)
Additional Information Contact: Terry Hanson (7934)
Logname: 03GAS LEASE CONSULTANT FEES FY2017 Page 2 of 2