HomeMy WebLinkAboutOrdinance 24861-06-2021 ORDINANCE NO. 24861-06-2021
AN ORDINANCE INCREASING APPROPRIATIONS IN THE MUNICIPAL
GOLF GAS LEASE CAPITAL PROJECT FUND IN THE AMOUNT OF
$10,000.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF
FUNDING 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 2020-
2021 in the Budget of the City Manager,there shall also be increased appropriations in the Municipal
Golf Gas Lease Capital Project Fund in the amount of $10,000.00, from available funds, for the
purpose of funding banking, mineral-lease-administration, and trust/asset management services
(Project 100801).
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 24446-09-2020 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conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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: CITY SECRETARY
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Assistant City Attorney Mary J.Kayse O� FOfZT
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ADOPTED AND EFFECTIVE: June 8,2021
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 06/08/21 M&C FILE NUMBER: M&C 21-0378
LOG NAME: 13GAS LEASE CONSULTANT FEES FY2021
SUBJECT
(ALL)Adopt Attached Appropriation Ordinances in Multiple Gas Well Lease Capital Projects Funds by a Combined Total Amount Up to
$70,000.00,Allocated Proportionately,to Properly Record Fees Paid to Wells Fargo Bank, National Association,for Banking, Mineral-Lease-
Administration,and Trust/Asset Management Services Provided in Fiscal Year 2021 Under City Secretary Contract No.45281
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached ordinance increasing estimated receipts and appropriations in the amount of$45,000.00 within the Aviation Gas Lease
Capital Projects Fund for banking, mineral-lease-administration,and trust/asset management services;
2. Adopt the attached ordinance increasing estimated receipts and appropriations in the amount of$15,000.00 within the Park and Recreation
Department Gas Lease Capital Projects Fund for banking, mineral-lease-administration,and trust/asset management services;and
3. Adopt the attached ordinance increasing estimated receipts and appropriations in the amount of$10,000.00 within the Municipal Golf Gas
Lease Capital Projects Fund for banking, mineral-lease-administration,and trust/asset management services.
DISCUSSION:
The purpose of this Mayor and Council Communication(M&C)is to appropriate funds associated to the costs of banking,mineral-lease-
administration,and trust-management services for Fiscal Year 2021 within the Gas Lease Bank Fees project(City Project No. 100801).
Each participating fund has a portion allocated of the total cost associated with the aforementioned services based on the relative percentage of
mineral revenues received for the year. In December 2012,the City Council approved an agreement with Wells Fargo Bank, National Association
(Wells Fargo),to provide banking, mineral-lease-administration,and trust-management 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).
The Agreement has a term of five years with two additional two-year renewals,with the fee for banking and mineral-lease-administration services
set at$16,000.00 per month.The City is in the last two-year renewal term that ends April 13,2022.Additionally,the Agreement provides for
trust/asset management services with fees based on the size of the assets in the trust and are increasing as the size of the trust increases.
In accordance with the terms of the Agreement and the current Financial Management Policy Statements,the banking fee is proportionately
allocated on a monthly basis to the various funds outlined in the Financial Management Policy Statement. In accordance with the terms of the
Agreement,Wells Fargo has paid itself throughout the year.Thus,approval of this M&C does not further reduce the mineral revenues for Fiscal
Year 2021.
A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinances,funds
will be available in the the PARD Gas Lease Capital Project,Muni Golf Gas Lease Cap Proj and the Aviation Gas Lease Cap Proj Funds for the
Bank Fees project. Prior to an expenditure being incurred,the Park& Recreation,Aviation and Financial Management Services
Departments have the responsibility of verifying the availability of funds.
Submitted for City Manager's Office by: Jay Chapa 5804
Originating Business Unit Head: Reginald Zeno 8517
Additional Information Contact: John Samford 2318