HomeMy WebLinkAboutOrdinance 17772-09-2007Ordinance No. 17772-09-2007
AN ORDINANCE INCREASING APPROPRIATIONS IN THE GENERAL FUND IN
THE AMOUNT OF $15,400 ANO DECREASING THE UNRESERVED,
UNDESIGNATED FUND BALANCE BY THE SAME AMOUNT, FOR THE
PURPOSE OF INCREASING THE AMOUNT TO BE PAID TO KELLY, HART &
HALLMAN, LLP AS OUTSIDE LEGAL COUNSEL TO PROVIDE LEGAL
REPRESENTATION TO THE CITY REGARDING MANAGEMENT OF CITY GAS
WELL REVENUE; PROVtOiNG FOR A SEVERABILITY CLAUSE; MAKING THIS
ORDINANCE CUMULATIVE OF PRIOR 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 2406-
2007 in the Budget of the City Manager, (here shall also be increased appropriations in the General
Fund in the amount of $15,000 and decreasing the unreserved, undesignated fund balance by the
same amount, for the purpose of increasing the amount to be paid to Kelly, Hart & Hallman, LLP as
outside legal counsel to provide legal representation to the City regarding management of City Gas
Weil Revenue.
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 na 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 shah be cumulative of Ordinance Na. 17142 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance
are in direct conflict wifh 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conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 shah take effect upon adoption.
A P~R(OVED AS TO FORM AND LEGALITY:
PL~cuudP ____
City Attorn
ADOPTED AND EFFECTIVE: September 18, 20007
City of Fort Worth, 1'~xas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/18/2007 -Res. No. 3526-09-2007 & Ord. No. 17772-09-2007
DATE: Tuesday, September 18, 2007
LOG NAME: 12KHHGASREVENUE REFERENCE NO.: **G-15868
SUBJECT:
Adopt Resolution Authorizing an Increase in the Maximum Amount to be Paid to Kelly, Hart &
Hallman, LLP, as Outside Legal Counsel to Provide Legal Representation to the City Regarding the
Management of City Gas Well Revenue and Adopt Appropriation Ordinance
---~- _
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached resolution authorizing an increase in the maximum the aggregate amount to be paid
to. Kelly, Hart & Hallman, LLP, for representation to the City regarding the Management of City Gas Well
Revenue; and
2. Adopt the attached supplemental appropriation ordinance increasing appropriations in the General Fund
in the amount of $15,000 and decreasing the unreserved, undesignated fund balance by the same amount.
DISCUSSION:
On April 17, 2007, the City Council approved Resolution No. 3475-04-2007 creating the Gas Well
Revenues Financial Management Strategies Ad Hoc Committee. The Committee was charged with
considering and making recommendations to the City Council on gas well revenue management strategies
that would maximize the impact of the City's gas revenues, create the most effective expenditure and
investment model to provide substantial benefits to the citizenry in perpetuity and design a productive,
effective and dependable endowment management plan which would ensure the perpetual growth of the
fund's corpus.
Thereafter, the City Council adopted Resolution No. 3509-08-2007 authorizing the employment of Kelly,
Hart & Hallman, LLP, as outside counsel with expertise in complex legislative and investment issues related
to addressing the Committee's charge from the City Council and to assist the City Attorney.
The Committee has recommended that a Section 115 trust be created to establish and manage the
endowment and to ensure growth of the fund's corpus. As a result of the Committee's recommendations, a
trust document and a ruling from the IRS will be needed. It now appears that the amount paid to Kelly, Hart
& Hallman, LLP, should be increased by $15,000 to an amount not to exceed $40,000.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that upon approval of the above recommendations and adoption of the
attached supplemental appropriation ordinance, funds will be available in the current operating budget, as
appropriated, of the General Fund. Upon approval, the unaudited, unreserved, undesignated fund balance
of the General Fund will be $1,162,672, which is the amount available above the minimum reserve fund
balance of $46,845,951, required by the City's Financial Management Policy Statements (i.e., 10 percent of
the current-year adopted budget expenditures less the annual transfer from the General Fund to the Debt
Logname: 12KHHGASREVETIUE Page 1 of 2
Service Fund).
TO Fund/Account/Centers
GG01 531200 0905500 $15.000.00
FROM Fund/Account/Centers
GG01 531200 0905500 $15,000.00
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
Karen Montgomery (6222)
David Yett (7623)
Sarah Fullenwider (7619)
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