HomeMy WebLinkAboutOrdinance 25348-03-2022 ORDINANCE NO.25348-03-2022
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE WATER/SEWER ENDOWMENT GAS LEASE FUND
IN THE AMOUNT OF $13,000.00, FROM AVAILABLE FUNDS, FOR THE
PURPOSE OF FUNDING BANKING AND MINERAL-LEASE-ADMINISTRATION
SERVICES AND TRUST/ASSET MANAGEMENT SERVICES; (CITY PROJECT
NO. 100801); 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 2021-2022 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
Water/Sewer Endowment Gas Lease Fund in the amount of$13,000.00,from available funds,for the purpose
of funding banking and mineral-lease-administration services and trust/asset management services (City
Project No. 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 25073-09-2021 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said prior ordinances and appropriations are hereby expressly repealed.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
l�J OAette S.Good.11(W,10,20221Y CST)
Denis McElroy Jannette S.Goodall
Sr.Assistant City Attorney City Secretary FORS.
ADOPTED AND EFFECTIVE:March 8,2022
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City of Fort Worth, Texas
Mayor and Council Communication
DATE: 03/08/22 M&C FILE NUMBER: M&C 22-0142
LOG NAME: 13GAS LEASE CONSULTANT FEES FY2022
SUBJECT
(ALL) Adopt Ordinances Increasing Estimated Receipts and Appropriations in Multiple Funds by a Combined Total Amount Up to$164,000.00,
Allocated Proportionately,to Properly Record Fees Paid to Wells Fargo Bank, National Association,for Banking, Mineral-Lease-Administration
Services,and Trust/Asset Management Services Provided in Fiscal Year 2022 Under City Secretary Contract No.45281
RECOMMENDATION:
It is recommended that the City Council:
1.Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Aviation Endowment Gas Lease Fund in
the amount of$120,000.00 from available funds,for the purpose of funding banking and mineral-lease-administration services and for the
trust/asset management services(City Project No. 100801);
2.Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the General Endowment Gas Lease Fund in
the amount of$20,000.00 from available funds,for the purpose of funding banking and mineral-lease-administration services and for the
trust/asset management services(City Project No. 100801);
3.Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the PACS Endowment Gas Lease Fund in the
amount of$11,000.00 from available funds,for the purpose of funding banking and mineral-lease-administration services and for the trust/asset
management services(City Project No. 100801);and
4.Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Water/Sewer Endowment Gas Lease Fund
in the amount of$13,000.00 from available funds,for the purpose of funding banking and mineral-lease-administration services and for the
trust/asset management services(City Project No. 100801).
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to appropriate funds for the costs of banking and mineral-lease-administration
services and for the costs of trust/asset management services for the identified City funds. Each participating fund is allocated its proportionate
share of the total cost based on the relative percentage that mineral revenues for that fund for the year bear to the total mineral revenues received
during the year.
The total revenue generated for all funds from the gas wells from October 2021 through January 2022 is$4,430,079.06. Revenue by fund for the
first four months of FY22:Fund 13001 $252,991.35; Fund 13002$589,703.44; Fund 33001 $1,148,162.74; Fund 33002$264,146.29; Fund
33004$58,268.54; Fund 33005$624,624.46; Fund 53001 $636,853.62; Fund 53003$54,056.99; Fund 53004$163,890.08.
In December 2012,the City Council approved an Agreement with Wells Fargo Bank, National Association(Wells Fargo),to provide banking and
trust 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 renewals of two years each,with the
fee for banking and mineral-lease-administration services set at$16,000.00 per month.Additionally,the Agreement provides for trust/asset
management services with fees based on the size of the assets in the trust and 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 to the various gas-related funds. A number of impacted funds already have sufficient appropriations for their payments. Approval of this
M&C and adoption of the attached ordinances will enact appropriations for the funds that do not have sufficient appropriations for these payments.
In accordance with the terms of the Agreement,Wells Fargo pays itself throughout the year.Thus,approval of this M&C does not further reduce the
mineral revenues in Fiscal Year 2022 but only formally appropriates the additional funds.
This M&C does not request approval of a contract with a business entity.
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 adoption of the attached appropriation ordinance,funds will be available in the Aviation Endowment
Gas Lease Fund, General Endowment Gas Lease Fund, PACS Endowment Gas Lease Fund,and the Water/Sewer Endowment Gas Lease
Fund.
Submitted for City Manager's Office by: Jay Chapa 5804
Originating Business Unit Head: Reginald Zeno 8517
Additional Information Contact: John Samford 2318