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HomeMy WebLinkAboutOrdinance 19847-08-2011Ordinance No.19847 -08 -2011 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE AVIATION ENDOWMENT GAS LEASE FUND IN THE AMOUNT OF $8,572,012.18, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF TRANSFERRING SAID FUNDS TO THE MUNICIPAL AIRPORTS FUND TO REIMBURSE THE CITY FOR AIRCRAFT RESCUE AND FIREFIGHTING SERVICES FOR THE PERIOD FROM JANUARY 4, 2005 TO SEPTEMBER 30, 2010 AT ALLIANCE FIRE STATION 35 AND MEACHAM FIRE STATION 44; 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 2010 -2011 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Aviation Endowment Gas Lease Fund in the amount of $8,572,012.18, from available funds, for the purpose of transferring said funds to the Municipal Airports Fund to reimburse the City for aircraft rescue and firefighting services for the period from January 4, 2005 to September 30, 2010 at Alliance Fire Station 35 and Meacham Fire Station 44. 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-19355 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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. APPROVED AS TO FORM AND LEGALITY: Assistant City Attorney ADOPTED AND EFFECTIVE: August 16, 2011 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 8/16/2411 - Ordinance Nos. 19847 &19848 DATE: Tuesday, August 16, 2011 REFERENCE NO.: G -17360 LOG NAME: 55AVIATION REIMB FIRE2 SUBJECT: Suspend the Financial Management Policy Statements that Limit the Expenditure of Mineral Lease Revenue to One -Time Capital Items in Order to Authorize the Transfer of $8,572,012.18 from the Aviation Endowment Gas Lease Project Fund and Authorize the Transfer of $2,053,742.00 from the Capital Projects Reserve Fund to the Municipal Airports Fund for a Total Amount of $10,625,754.18 to be Transferred from the Municipal Airports Fund to the General Fund for the Purpose of Reimbursing the General Fund for the Period from January 4, 2005 Through September 30, 2010 for Aircraft Rescue and Firefighting Services at Alliance Fire Station 35 and Meacham Fire Station 44 and Adopt Appropriation Ordinances (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Suspend the Financial Management Policy Statements that limit the expenditure of mineral lease revenue to one -time capital items; 2. Adopt appropriation ordinance increasing estimated receipts and appropriations in the Aviation Endowment Gas Lease Fund in the amount of $8,572,012.18 from available funds; 3. Authorize the transfer of $8,572,012.18 from Aviation Endowment Gas Lease Fund to the Municipal Airports Fund; 4. Authorize the transfer of $2,053,742.00 from Capital Projects Reserve Fund to the Municipal Airports Fund; 5. Adopt the attached supplemental appropriation increasing estimated receipts and appropriations in the Municipal Airports Fund in the amount of $10,625,754.18, from available funds; and 6. Authorize the transfer of $10,625,754.18 from the Municipal Airports Fund to the General Fund for the purpose of reimbursing the General Fund for the period from January 4, 2005 through September 30, 2010 for aircraft rescue and firefighting services at Alliance Fire Station 35 and Meacham Fire Station 44. DISCUSSION: On January 2, 2011, (M &C G- 17172) City Council approved the Aviation Department using revenues generated from mineral leases to compensate the City for fire protection services provided by Station 44 at Meacham Airport and Station 35 at Alliance Airport. To date, $3,202,000.00 has been reimbursed to the General Fund. Of that amount, $3 million was approved by M &C G -17172 and $202,000.00 was paid in Fiscal Year 2010 from the Municipal Airport Operating Fund. This leaves the current outstanding balance of $10,625,754.18. Staff is recommending approval to once again suspend the rules in the Financial Logname: 55AVIATION REIMB FIRE2 Page 1 of 2 Management Policy Statements for the purpose of providing additional reimbursement to the General Fund for aircraft rescue and firefighting services for the period from January 4, 2005 through September 30, 2010. On February 27, 1990, the City Council approved an Agreement (City Secretary Contract No. 17700, M &C C- 12194, February 27, 1990), with the Page Avjet Corporation for the construction of an aircraft maintenance hangar at Meacham Airport. This project was funded with a loan from the Capital Projects Reserve Fund. This M &C was later amended on October 11, 1994 by M &C C- 14520. Site improvements were estimated to cost $2,600,000.00. Page Avjet made a one -time payment of $274,000.00 toward defraying the cost of site improvements resulting in a net cost to the City of $2,326,000.00. Page Avjet's annual lease payments of $137,000.00 were used to restore the Capital Projects Reserve Fund. All revenue associated with the sale of Greater Southwest International Airport (G.S.I.A.) was also deposited into the Capital Projects Reserve Fund and designated, with concurrence by the Federal Aviation Administration, for four specific funding priorities set forth and approved by Council on May 8, 1979 (M &C G- 4167). Priority four stated that once the first three priorities were met any additional proceeds would go into the Capital Projects Reserve Fund earmarked specifically for future airport improvements. Because the improvements associated with the Page Avjet hangar construction qualify for funding from those additional G.S.I.A. sale proceeds received by the Capital Projects Reserve Fund, staff is recognizing that loan repayments deposited by Aviation in previous years should be transferred back to the Municipal Airports Fund and can then be used to repay the General Fund for ARFF services. The approval of the above recommendations will result in a total reimbursement of $13,827,754.18 to the General Fund to reimburse the General Fund for the period from January 4, 2005 through September 30, 2010 for aircraft rescue and firefighting services at Alliance Fire Station 35 and Meacham Fire Station 44. FISCAL INFORMATION / CERTIFICATION: The Financial Management Services Director certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinances, funds will be available in the current capital budget, as appropriated, of the Aviation Endowment Gas Lease Fund, and in the current operating budget, as appropriated, of the Municipal Airports Fund. FUND CENTERS: TO Fund /Account/Centers 4) GC10 472040 055010551000 4) GC10 538070 055010551000 4) PE40 472010 0551000 2) T125 446200 055125099901 3)T125 538070 055125099901 5) PE40 472125 0551000 6)PE40 538070 0551000 6) GG01 476040 0901100 CERTIFICATIONS: FROM Fund /Account/Centers $2,053,742.00 4) GC10 472040 055010551000 $2,053,742.00 4) GC10 538070 055010551000 $2,053,742.00 3)T125 538070 055125099901 $8,572,012.18 $8,572,012.18 $8,572,012.18 $10,625,754.18 $10 625,754.18 Submitted for City Manager's Office br. Originating-Department Head: Additional Information Contact: Fernando Costa (6122) Kent Penney (5403) Aya Ealy (5406) $2,053,742.00 $2,053,742.00 $8,572,012.18 Logname: 55AVIATION REIMB FIRE2 Page 2 of 2