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Home My WebLink AboutOrdinance 21069-12-2013 Ordinance No. AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS fl'� MUNICIPAL AIR-PORTS FUND IN THE AMOUNT OF $00,000�00 AND DECREASING THE UNASSIGNED FUND BALANCE BY THEE SAME AMOUNT, FOR THE PURPOSE DF PAYMENT TO DON 6. HAN6ENFOR THE ACQUISITION OF LEASEHOLD INTEREST AND TERMINATION OF CITY SECRETARY CONTRACT NO. 35891, M&C C'22425 AND AMENDMENT N0. l` CITY SBC8ETAR}, CONTRACT NO. 3589|-/k]` M&C C-24248; y;LOVO][NG FOR /\ SEVER&BTLlTY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OFPRIOR ORDINANCES; REPEALING ALL ORDINANCES TN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. BElT ORDAINED 8Y THE CITY COUNCIL DF THE CITY 0F FORT WORTH, IE}{/\S: SECTION |. That in addition to those amounts allocated to the various City departments for Fiscal Year 2013-20 14 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Municipal Airports Fund in the amount of$50O`0O0.00 and decreasing the unassigned fund bu|unoc by the same amount, for the purpose of payment to Don E. Bunsen for the acquisition of |cumoho|d interest and tennino1ioo of City Secretary Contract No. 35891, K4&C [-22425 and Amendment No. l, City Secretary Contract No. 35891'A1, M8LC C'24240. SECTION 2. That should any portion, section or part of section of this ordinance be declared invalid, inoperative or void for any reason by a court of cornpetentiurisdiction, such decision, opinion orjudgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall he and remain in full force and effect. SECTION 3. That this ordinance shall he cumulative of Ordinance Y4m. 20952-09-2013 and all other ordinances and appropriations amending the same except in those instances where the provisions ofthis ordinance are in direct conflict with such other ordinances and appropriations, in which instance said oonfliodu& provisions of said prior ordinances and appropriations are hereby expressly repealed.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 Attorney Mary Kayser, City �eW��y� Q [� ~ ADOPTED AND EFFECTIVE: December 1 7, 2013 • , 1i . ,. vt Al v s im Jw�i/�w( r v� ,r r U ✓W�'Vhf`f?l�e�luiy�'iizarueuarmn�r,��l r.��ar�y�r If Wk i i e 1✓� � X18%l�f �" 1r r �r �m mql Al CL r J lilf F /;i ,J City of Fort Worth, Texas Mayor and Council Communication wnu numm,nmuume,umumrv.,uummunnnaouusrRwuuurwxrurwunrxrr iu rtrrtmmrauniaarHirrrcrrr «rrru,rtrrulurrcr n ......aum ---- r i r . - Mi f. 1 1. ;l.'/l [/1l¢;;rc/ .,III/I/I////////AW.�WDWI®II�Im G9I000!/RRRI.I f r;ul IJ(... I//6Lhlal,yFfJ(RlllIII;N YiIdO!/A0. w/ttfwl( I tx.UNllifiY ttfU III�YNklut @RAVAfmllrMflPlfi^t COUNCIL. ACTION; Approved on 12/17/2013 - Ordinance Nos. 21068-12-2013'& 21069-12- 2013 „,mrc�,r ,,,,r, , r ,vua�Um�umu„, „ K w�,u��rr,,,,w��rrfin,�A�,>err,r�mp In 0”11111111111111111111111)))) ,,,,,.,,,;,,,,u,,,,,,,N,,,,,,,,,,, ,r;uru,,,,,,,,,,,,,,,,,,,r . U»u,,,, ,�,r r-1-T,rr , � ,,,r, ieirce��mir .r.,. ; rmirtnrrrmnooimmrmmmmrcnuunw,wniimm�,;; ,,rrt arm»nmrnrrmrrcnawrr.;maaamautrmnmraeviur;xmmfanmareuru DATE: Tuesday, December 17, 2013 REFERENCE NO.: **G-18092 LOG NAME: 55FTW OFFICE LSE TERMINATION SUBJECT: Authorize Execution of a Settlement Agreement with Don E. Hansen for the Termination of an Administration Building Lease and Ramp Space License Agreement at Fort Worth Meacham International Airport for the Purpose of Renovation of the Administration Building, Authorize Payment in the Amount of $500,000.00 to Don E. Hansen in Settlement of All Claims, Authorize Use of Mineral Lease Revenue from City Airports and Adopt Appropriation Ordinances (COUNCIL DISTRICT 2) RECOMMENDATION: It is recommended that the City Council: 1. Declare the necessity to acquire the leasehold interest in Suite 119 in the Administration Building and the associated ramp space near the Administration Building at Fort Worth Meacham International Airport for the demolition, renovation, and expansion of the Administration Building; 2. Authorize the execution of a Settlement Agreement with Don E. Hansen for the termination of City Secretary Contract No. 35891 , M&C C-22425, as amended by Amendment No. 1, City Secretary Contract No. 35891-A1, M&C C-24248, for Suite 119 in the Administration Building and associated ramp space at Fort Worth Meacham International Airport; 3. Authorize the payment in the amount of$500,000.00 to Don E. Hansen in settlement of all claims related to the termination of the Administration Building Lease and Ramp Space License Agreement; 4. Adopt the attached supplemental appropriation ordinance increasing estimated receipts and appropriations in the Municipal Airports Fund in the amount of$500,000.00 for payment to Don E. Hansen in settlement of all claims related to the termination of the Administration Building Lease and Ramp Space License Agreement; 5. Authorize the one-time use of revenue derived from mineral leases on City-owned airports in the amount of$500,000.00 to replenish the fund balance in the Municipal Airports Fund to comply with the Financial Management Policy requirement of twenty percent, as allowed under the Financial Management Policy; 6. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Airports Gas Lease Project Fund in the amount of$500,000.00; and 7. Authorize the transfer in the amount of$500,000.00 from the Airports Gas Lease Project Fund to the Municipal Airports Fund. DISCUSSION: Logname: 55FTW OFFICE I.,SE TERMINATION Page I of 3 The Meacham International Airport Administration Building has not been renovated since being built in 1967, except for small alterations to portions of the facility. The building needs to be renovated to modernize the exterior and interior lease spaces, meet the Americans with Disabilities Act (ADA) requirements, become more energy efficient and update the heating, ventilation and air conditioning system. On October 2, 2007, (M&C C-22425) the City Council approved a lease with Don E. Hansen for Suite 119 in the Administration Building and a non-exclusive license for associated ramp space at Fort Worth Meacham International Airport. This suite consists of 2,100 square feet of first floor office space and the ramp space adjacent to the Administration Building consists of approximately 172,889.64 square feet. Pursuant to the Agreement, Mr. Hansen made significant improvements to the Administration Building in exchange for 100 percent rent credits for the capital improvements made to the leased premises and the licensed premises. It is necessary for the City to demolish Suite 119 for the renovation of the Administration Building. Mr. Hansen agreed to terminate his Agreement with the City in return for compensation in the amount of $500,000,00. This amount includes the remaining amount of rent credits owed to Mr. Hansen under the Lease Agreement, the value of the leasehold interest remaining on the lease as determined by appraisal, and the future revenue not realized from the Fixed Based Operator (FBO) business for the remaining years of the lease. This amount also includes any damages related to the FBO brand known as Sandpiper Aviation. The Settlement Agreement provides that the suite and the ramp space shall be vacated of all trade fixtures, tools, machinery, equipment, materials and supplies, furniture, and personal property 60 days from the approval date of this Mayor and Council Communication. Mr. Hansen also has the ability to re- establish, if all minimum standard requirements are met, an FBO business in another location on the airport through the end of the term of the original Lease Agreement, which ends in September of 2017. Staff recommends approval of the execution of the Settlement Agreement for the termination of this Agreement, and the payment of compensation to Mr. Hansen. Funding for this payment will come from the Municipal Airports Fund which will cause the fund balance to drop below the required twenty percent. A one-time use of revenue derived from mineral leases on City-owned airports in the amount of $500,000.00 to replenish the fund balance in the Municipal Airports Fund is allowed, as defined by the allowable expenses section of the Financial Management Policy. The property is located in COUNCIL DISTRICT 2, Mapsco 48P and 48T. FISCAL INFORMATION / CERTIFICATION: The Financial Management Services Director certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinances, funds will be available in the current operating budget, as appropriated, of the Municipal Airports Fund. FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers 4) PE40 476240 0551000 $500,000.00 7) P240 538040 551929990100 $500,000.00 4) PE40 539120 0551000 $500,000.00 6) P240 446200 551929990100 $500,000.00 6) P240 538040 551929990100 $500,000.00 7) PE40 476240 0551000 $500,000.00 Logname: 55F'rw OFFICE LSE TERMINATION Page 2 of 3 CERTIFICATIONS: Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Bill Welsted (5402) Additional Information Contact: James Burris (5403) Logname: 55FTW OFFICE LSE TERMINATION Page 3 of 3