HomeMy WebLinkAboutOrdinance 21068-12-2013 `
Ordinance No
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE /\8lPDKTS GAS LEASE PROJECT FUND IN THE
AMOUNT oF $500`O00.O0, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF
FUNDING THE, KEPLBNl8DMENTDF THE FUND BALANCE [NTHE MUNICIPAL
ALKPOBTS FUND; PROVIDING FO0 .A3EVERAB|LlTY CLAUSE; MAKING THIS
ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; KEyBAC[NO ALL
ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE
DATE.
BElT ORDAINED BY THE CITY COUNCIL OP THE CITY OF FORT WORTH,
TEXAS:
bE[Ti{)N l.
That in addition to those amounts allocated hr the various City departments for Fiscal Year 20|3-2Ol4inthe
Budge( of the City Muuugor, there ahu|| also be increased estimated receipts and appropriations in the
Airports Gas Lease Project Fuud in the amount nf0500,0U8.00, from available Rinds, for the purpose of
funding the replenishment of the fund balance in the Municipal Airports Fund.
SECTION 2.
That should any portion, section or part ofu section of this ordinance he declared invalid, inoperative or
void for any reason by a Court of competent jurisdiction, such decision, opinion orjudgment shall i000way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions sbe|| be and remain in full force and effect.
SECTION 3.
That this ordinance nhu|| he cumulative of Ordinance No. 20952-09'2013 and all other ordiou000m and
appropriations amending the same except inthose instances where the provisions of this ordinance are in
direct conflict with such other nndiunocuy 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of said prior ordinances and appropriations are hereby expressly repealed.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/\3TO FORM AND LEGALITY: C|Tl, SECRETARY
A�Asistaan k1tytAttorney a J. . a"'
ADOPTED AND EFFECTD/E: December 17,2013
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City of Fort Worth, Texas
Mayor and Council Communication
mI I ffi -
COUNCIL ACTION: Approved on 1211712013 - Ordinance Nos. 21068-12-2013 & 21069-12-
2013
........................I.,....... ............. ..... ✓ ...................
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$500,000.00-1 and
7. Authorize the transfer in the amount of $500,000.00 from the Airports Gas Lease Project Fund to the
Municipal Airports Fund.
_ I .. ........
DISCUSSION:
Logname: 55FTW OFFICE LSE TERMINATION Page 1 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: 55FTW 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