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Home My WebLink AboutOrdinance 19976-11-2011Ordinance No. 19976-11-2011 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE VARIOUS FUNDS LISTED BELOW IN THE AMOUNT OF $297,421.55, FROM AVAILABLE FUNDS, FOR BANKING AND CONSULTANT SERVICES PROVIDED IN CONJUNCTION WITH THE CITY'S GAS LEASE PROGRAM; 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 2011 -2012 in the Budget of the City Manager, here shall also be increased appropriations in the in the following funds in the amount of $297,421.55 from available funds, for banking and consultant services provided in conjunction with the City's Gas Lease Program: 1. Lake Worth Gas Lease Capital Improvement Fund in the amount of $126,833.86; 2. Park Gas Lease Project Fund in the amount of $35,669.78; 3. Capital Projects Reserve Fund in the amount of $27,539.39; 4. Airports Gas Lease Project Fund in the amount of $34,529.88; 5. Golf Gas Lease Capital Project Fund in the amount of $834.00; 6. Water and Sewer Gas Lease Capital Projects Fund in the amount of $4,406.70; 7. Park System Endowment Gas Lease Fund in the amount of $4,104.47; 8. Water and Sewer Endowment Gas Lease Fund in the amount of $1,468.47; 9. Aviation Endowment Gas Lease Fund in the amount of $34,527.58; and 10. General Endowment Gas Lease Fund in the amount of $27,507.42. 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. Ordinance No. 19976-11-2011 Page 2 of 2 SECTION 3. That this ordinance shall be cumulative of Ordinance No. 19911 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: 12z � 1111 , : - Assistant ty Attorney ADOPTED AND EFFECTIVE: November 15, 2011 Ordinance No. 19976 -1 1 -201 1 Page 2 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 1111512011 -Ordinance No. 19976 -11 -2011 DATE: Tuesday, November 15, 2011 LOG NAME: 062050 GAS LEASE CONSULTANT FEE REFERENCE NO.: G -17447 SUBJECT: Adopt Appropriation Ordinance to Properly Record Fees in the Amount of $297,421.55 Paid to JPMorgan Chase Bank, N.A., Midkiff Oil and Gas, Fred Reynolds and Associates and Kelly Hart and Hallman, LLP, for Banking, Leasing and Appraisal Services Provided in Conjunction with the City's Gas Lease Program (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the following funds in the amount of $297,421.55 from available funds for banking, leasing and appraisal services provided in conjunction with the City's Gas Lease Program: 1. Lake Worth Gas Lease Capital Improvement Fund in the amount of $126,833.86; 2. Park Gas Lease Project Fund in the amount of $35,669.78; 3. Capital Projects Reserve Fund in the amount of $27,539.39; 4. Airports Gas Lease Project Fund in the amount of $34,529.88; 5. Golf Gas Lease Capital Project Fund in the amount of $834.00; 6. Water and Sewer Gas Lease Capital Projects Fund in the amount of $4,406.70; 7. Park System Endowment Gas Lease Fund in the amount of $4,104.47; 8. Water and Sewer Endowment Gas Lease Fund in the amount of $1,468.47; 9. Aviation Endowment Gas Lease Fund in the amount of $34,527.58; and 10. General Endowment Gas Lease Fund in the amount of $27,507.42. DISCUSSION: Since the inception of the City's Gas Lease Program in 2004, the City has entered into banking service and consultant services contracts in support of the activities of the program. Fees associated with these contracts have been taken from bonus and royalty revenues. Periodically, it is necessary to appropriate these previously approved contract fees as part of the City's financial management activities. The action of this M &C will be to appropriate the fees for accounting purposes only and will not further reduce gas lease program revenues. In March 2004, the City of Fort Worth entered into an Alternative Assets Agency Account Agreement (City Secretary Contract No. 29698) with Bank One Trust Company which was succeeded by JPMorgan Chase Bank, N.A. for banking and leasing services to be provided in conjunction with the City's Gas Lease Program. Since 2004, the JPMorgan Chase Bank, N.A. contract has been renegotiated and revised on several occasions and currently the contract provides only banking services. In October 2008, (M &C C- 23126) Council authorized the JPMorgan Chase banking services contract (City Secretary Contract No. 41146) in which fees for asset management are $10,000.00 per month during the term of the contract. The same M &C C -23126 authorized a contract with Midkiff Oil and Gas (City Secretary Contract No. 37980) for the leasing consultant services contract at a rate of four and one -half Logname: 062050 GAS LEASE CONSULTANT FEE Page 1 of 4 percent of the gross lease bonus collected for bonuses up to $250,000.00, two percent of the gross lease bonus collected on bonuses exceeding $250,000.00 and up to $5,000,000.00 and a $100,000.00 fee on bonuses over $5,000,000.00. As part of the management of the City's Gas Lease Program, firms are engaged for legal review of lease terms and to assist staff in projection of anticipated revenue in order to protect the City's interests. Kelly Hart and Hallman, LLP (Resolution No. AAA- 2011 -02) was engaged to provide legal review of lease terms and Fred Reynolds and Associates (City Secretary Contract Nos. 41734 and 41882) was engaged to provide projected revenue appraisals and assessments. In Fiscal Year 2011, total Gas Lease Program revenues were $36,779,924.37. For accounting purposes only, this M &C appropriates $297,421.55 for the banking and consultant services provided as part of the Gas Lease Program through the end of Fiscal Year 2011 as follows: Consultant Fee JPMorgan Chase Bank, N.A. (Fiscal Year 2011) $ 119,136.37 JPMorgan Chase Bank, N.A. (Fiscal Year 2010) $ 9,170.99 Midkiff Oil and Gas $ 158,455.42 Fred Reynolds and Associates $ 8,922,77 Kelly Hart and Hallman, LLP $ 1,736.00 Total $ 297,421.55 FISCAL INFORMATION / CERTIFICATION: The Financial Management Services Director certifies that upon adoption of the attached appropriation ordinance, funds will be available in the current capital project budgets, as appropriated, of the Lake Worth Gas Lease Capital Improvement Fund, Park Gas Lease Project Fund, Capital Projects Reserve Fund, Airports Gas Lease Project Fund, Golf Gas Lease Capital Project Fund, Water and Sewer Gas Lease Capital Projects Fund, Park System Endowment Gas Lease Fund, Water and Sewer Endowment Gas Lease Fund, Aviation Endowment Gas Lease Fund and General Endowment Gas Lease Fund. FUND CENTERS: TO Fund /Account/Centers C246 446100 601159990100 $100.000.00 C246 531260 601159990100 $100.000.00 C246 446200 601159990100 $26,833.86 C246 531260 601159990100 $26,833.86 C282 446200 801929932500 $125.01 C282_ 531260 801929932500 $125.01 C282 446100 801929961200 $5,791.05 C282 531260.801929961200 $5,791.05 C282 446100 801929963400 $973.27 C282 531260 801929963400 $973.27 C282 _446100 _801929963800 X3,10.9.60 C282 531260 801929963800 $3,109.60 C282 446100 801929963900 $100.00 Logname: 062050 GAS LEASE CONSULTANT FEE FROM Fund /Account/Centers Page 2 of 4 C282 531260 801929963900 $100.00 C282 446100 801929964300 $465.62 C282 531260 801929964300 $465.62 C282 446100 801929964600 $146.34 C282 531260 801929964600 $146.34 C282 446100 801929964900 $356.40 C282 531260 801929964900 $356.40 C282 446100 801929965800 $4,024.18 C282 531260 801929965800 $4,024.18 C282 446100 801929965900 $1,409.62 C282 531260 801929965900 $1,409.62 C282 446100 801929966000 $1,034.63 C282 531260 801929966000 $1,034.63 C282 446100 801929966600 $11.794.80 C282 531260 801929966600 $11,794.80 C282 446100 801929967300 $202.27 C282 531260 801929967300 $202.27 C282 446100 801929967500 $2,157.02 C282 531260 801929967500 $2,157.02 C282 446200 801929990300 $3,979.97 C282 531260 801929990300 $3,979.97 GC10 446100 006060001000 $13.445.33 GC10 531260 006060001000 $13,445.33 GC10 446200 006060001000 $14,094.06 GC10 531260 006060001000 $14,094.06 P240 446200 551929990100 $34,529.88 P240 531260 551929990100 $34,529.88 P243 446200 801929990100 $834.00 P243 531260 801929990100 $834.00 P245 446200 601149990100 $2,938.17 P245 531260 601149990100 $2,938.17 P245 446200 601149990300 $1,468.53 P245 _ 531260 601149990300 $111468.53 T122 446200 080192003371 $3,979.48 T122 531260 080192003371 $3-979.48 T122 446200 080192993251 $124.99 T122 531260 080192993251 $124.99 T124 _446200 060124099901 $1,468.47 T124 531260 060124099901 $1,468.47 Logname: 062050 GAS LEASE CONSULTANT FEE Page 3 of 4 T125 446200 055125099901 $34,527.58 T125 531260 055125099901 $34,527.58 T127 446100 006127099901 $13,445.29 T127 531260 006127099901 $13,445.29 T127 446200 006127099901 $14,062.13 T127 531260 006127099901 $14,062.13 CERTIFICATIONS: Submitted for City Manager's Office-W. Originating Department Head: Additional Information Contact: Fernando Costa (6122) Randle Harwood (6101) Shirley Talley (2592) Jean Petr (8367) Logname: 062050 GAS LEASE CONSULTANT FEE Page 4 of 4