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Home My WebLink AboutOrdinance 19422-11-2010 Ordinance No. 19422-11-2010 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE VARIOUS FUNDS LISTED BELOW IN THE AMOUNT OF $351,499.42, 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 2010-2011 in the Budget of the City Manager, there shall also be increased appropriations in the in the following funds in the amount of$351,499.42 from available funds,for banking and consultant services provided in conjunction with the City's Gas Lease Program: 1. TPW Gas Well Revenues Fund in the amount of$16,839.68; 2. Lake Worth Gas Lease Capital Improvement Fund in the amount of $11,739.40; 3. Park Gas Lease Project Fund in the amount of$94,519.10; 4. Golf Debt Service Fund in the amount of$6,393.08; 5. Capital Projects Reserve Fund in the amount of$12,646.33; 6. Airports Gas Lease Project Fund in the amount of$32,336.96; 7. Golf Gas Lease Capital Project Fund in the amount of$6,393.09; 8. Water&Sewer Gas Lease Capital Projects Fund in the amount of$91,405.49; 9. Park System Endowment Gas Lease Fund in the amount of$3,775.66; 10. Water&Sewer Endowment Gas Lease Fund in the amount of$30,468.52; 11. Aviation Endowment Gas Lease Fund in the amount of$32,336.91; and 12. General Endowment Gas Lease Fund in the amount of$12,645.20. 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 ttorney ADOPTED AND EFFECTIVE: November 9, 2010 City of Fort Worth, Texas Mayor and Council Communication CaUNP,II -ACTIION: A" Order an 11l9/Z01© and Nr ,'194Z2.11C=2U10 DATE: Tuesday, November 09, 2010 REFERENCE NO.: G-17101 LOG NAME: 062040 GAS LEASE CONSULTANT FEE SUBJECT: Adopt an Appropriation Ordinance to Properly Record Fees In the Amount of$351,499.42 Paid to JPMorgan Chase Bank and Midkiff Oil and Gas in Fiscal Year 2010 for Banking and Consultant Services Provided in Conjunction with the City's Gas Lease Program 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$351,499.42 from available funds for banking and consultant services provided in conjunction with the City's Gas Lease Program: 1. TPW Gas Well Revenues Fund in the amount of$16,839.68; 2. Lake Worth Gas Lease Capital Improvement Fund in the amount of $11,739.40; 3. Park Gas Lease Project Fund in the amount of$94,519.10; 4. Golf Debt Service Fund in the amount of$6,393.08; 5. Capital Projects Reserve Fund in the amount of$12,646.33; 6. Airports Gas Lease Project Fund in the amount of$32,336.96; 7. Golf Gas Lease Capital Project Fund in the amount of$6,393.09; 8. Water& Sewer Gas Lease Capital Projects Fund in the amount of$91,405.49; 9. Park System Endowment Gas Lease Fund in the amount of$3,775.66; 10. Water& Sewer Endowment Gas Lease Fund in the amount of$30,468.52; 11. Aviation Endowment Gas Lease Fund in the amount of$32,336.91; and 12. General Endowment Gas Lease Fund in the amount of$12,645.20. DISCUSSION: Since the inception of the City's Gas Lease Program in 2004, the City has entered into leasing and banking services contracts in support of the activities of the program. Fees associated with these contracts have been taken from bonus and royalty revenues when received and were paid on a monthly basis. 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 (the City) entered into an Alternative Assets Agency Account Agreement(City Secretary Contract No. 29698)with Bank One Trust Company for banking and consultant services to be provided in conjunction with the City's Gas Lease Program. JPMorgan Chase Bank (JPMC) succeeded Bank One Trust Company and originally provided both leasing and banking services. In March 2008, the City and JPMC renegotiated the terms of the original agreement (City Secretary Contract No. 36999). Logname: 062040 GAS LEASE CONSULTANT FEE Page 1 of 5 In May 2008, the City issued a Request for Proposals (RFP)for gas and oil mineral asset management separated by banking services (Section 1) and leasing consultant services (Section 11)to be provided in conjunction with the City's Gas Lease Program. In October 2008, (M&C C-23126) Council authorized contracts with Midkiff Oil and Gas for the leasing consultant services contract(Section 11)and JPMorgan Chase for the banking services contract (Section 1). The fees for Midkiff Oil and Gas for consulting services are four and one-half 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 (City Secretary Contract No. 37980). JPMorgan Chase's fees for asset management are $10,000.00 per month over the term of the contract. Total Gas Lease Program revenues and fees for banking and consultant services are as follows: REVENUES SERVICE FEES Gas Lease Program Prior to 2010 $ 96,476,576.18 $2,971,585.49 Gas Lease Program Fiscal Year 2010 $ 29,479,671.34 $ 336,322.82 Total Gas Lease Program $125,956,247.52 $3,307,908.31 $2,956,408.89 of the total $3,307,908.31 service fees have been appropriated in prior years. This M&C appropriates $351,499.42, including $15,176.60 from prior years, for the services provided by JPMorgan Chase Bank and Midkiff Oil and Gas through the end of Fiscal Year 2010. 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 TPW Gas Well Revenues Fund, Lake Worth Gas Lease Capital Improvement Fund , Park Gas Lease Project Fund, Golf Debt Service Fund, Capital Projects Reserve Fund, Airports Gas Lease Project Fund, Golf Gas Lease Capital Project Fund, Water& Sewer Gas Lease Capital Projects Fund, Park System Endowment Gas Lease Fund, Water& Sewer Endowment Gas Lease Fund, Aviation Endowment Gas Lease Fund and General Endowment Gas Lease Fund. FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers C223 446100 201929990200 $16,839.68 C223 531260 201929990200 $16,839.68 C246 446200 601159990100 $11,739.40 C246 531260 601159990100 $11,739.40 C282 446100 801929930000 $1,305.16 C282 531260 801929930000 $1,305.16 C282 446100 801929930200 $121.65 C282 531260 801929930200 $121.65 C282 446100 801929930300 $77.27 C282 _531260 801929930300 $77.27 C282 _446100 8019299_30400 $648.62 Logname: 062040 GAS LEASE CONSULTANT FEE Page 2 of 5 C282 531260 801929930400 $648.62 C282 446100 801929930500 $4,241.68 C282 531260 801929930500 $4,241.68 C282 446100 801929930600 $304.23 C282 531260 801929930600 $304.23 C282 446100 801929931200 $2,356.84 C282 531260 801929931200 $2,356.84 C282 446100 801929932400 $100.00 C282 531260 801929932400 $100.00 C282 446200 801929932500 $56.76 C282 531260 801929932500 $56.76 C282 446100 801929932600 $886.55 C282 531260 801929932600 $886.55 C282 446100 801929932700 $4,826.77 C282 531260 801929932700 $4,826.77 C282 446100 801929932800 $7,550.55 C282 531260 801929932800 $7,550.55 C282 446100 801929960000 $255.51 C282 531260 801929960000 $255.51 C282 446100 801929960100 $5,275.44 C282 531260 801929960100 $5,275.44 C282 446100 801929960200 $171.32 C282 531260 801929960200 $171.32 C282 446100 801929960300 $145.01 C282 531260 801929960300 $145.01 C282 446100 801929960400 $341.21 C282 531260 801929960400 $341.21 C282 446100 801929960600 $4,060.04 C282 531260 801929960600 $4,060.04 C282 446100 801929961800 $11,187.14 C282 531260 801929961800 $11,187.14 C282 446100 801929962200 $896.31 C282 531260 801929962200 $896.31 C282 446100 801929962800 $6,792.61 C282 531260 801929962800 $6,792.61 C282 446100 801929963400 $5,612.89 C282 531260 801929963400 $5,612.89 C282 446100.801929963700 $1,320.64 C282 5_31260 801929963700 $1 320.64 Logname: 062040 GAS LEASE CONSULTANT FEE Page 3 of 5 C282 446100 801929964200 $276.21 C282 531260 801929964200 $276.21 C282 446100 801929964400 $100.00 C282 531260 801929964400 $100.00 C282 446100 801929964500 $100.00 C282 531260 801929964500 $100.00 C282 446100 801929964700 $499.50 C282 531260 801929964700 $499.50 C282 446100 801929964800 $10,243.35 C282 531260 801929964800 $10,243.35 C282 446100 801929965000 $100.00 C282 531260 801929965000 $100.00 C282 446100 801929965100 $482.36 C282 531260 801929965100 $482.36 C282 446100 801929965200 $1,212.28 C282 531260 801929965200 $1,212.28 C282 446100 801929965300 $4,553.63 C282 531260 801929965300 $4,553.63 C282 446100 801929965400 $123.97 C282 531260 801929965400 $123.97 C282 446100 801929965500 $1,347.75 C282 531260 801929965500 $1,347.75 C282 446100 801929965600 $507.60 C282 531260 801929965600 $507.60 C282 446100 801929965700 $611.15 C282 531260 801929965700 $611.15 C282 446100 801929966100 $267.10 C282 531260 801929966100 $267.10 C282 446100 801929966200 $100.00 C282 531260 801929966200 $100.00 C282 446100 801929966300 $3,871.13 C282 531260 801929966300 $3,871.13 C282 446100 801929966400 $100.00 C282 531260 801929966400 $100.00 C282 446100 801929990300 $11,488.87 C282 531260 801929990300 $11,488.87 D102 446100 0132000 $6,393.08 D102 531260 0132000 $6,393.08 GC10 446200. 006060001000 $12,646,33 Logname: 062040 GAS LEASE CONSULTANT FEE Page 4 of 5 GC10 531260 006060001000 $12,646.33 P240 446100 551929990100 $32,336.96 P240 531260 551929990100 $32,336.96 P243 446100 801929990100 $6,393.09 P243 531260 801929990100 $6,393.09 P245 446100 601149990100 $60,936.96 P245 531260 601149990100 $60,936.96 P245 446100 601149990300 $30,468.53 P245 531260 601149990300 $30,468.53 T122 446200 080192003371 $3,718.90 T122 531260 080192003371 $3,718.90 T122 446200 080192993251 $56.76 T122 531260 080192993251 $56.76 T124 446100 060124099901 $30,468.52 T124 531260 060124099901 $30,468.52 T125 446100 055125099901 $32,336.91 T125 531260 055125099901 $32,336.91 T127 446100 006127099901 $12,645.20 T127 531260 006127099901 $12,645.20 CERTIFICATIONS: Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Randle Harwood (6101) Shirley Talley (2592) Additional Information Contact: Jean Petr (8367) Logname: 062040 GAS LEASE CONSULTANT FEE Page 5 of 5