HomeMy WebLinkAboutOrdinance 21412-09-2014 Ordinance No.2 1 4 1 2-09-20 1 4
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE AIRPORTS GAS LEASE PROJECT FUND IN THE
AMOUNT OF $200,000.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF
FUNDING THE REPLENISHMENT OF THE FUND BALANCE IN THE MUNICIPAL
AIRPORTS FUND; 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 2013-2014 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
Airports Gas Lease Project Fund in the amount of$200,000.00, from available funds, 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 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. 20952-09-2013 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of said prior ordinances and appropriations are hereby expressly repealed.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. Kay e
ADOPTED AND EFFECTIVE: September 9,2014
Mayor and Council Communication Map
FWS HPHILLIPS LEASE TERMINATION
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/9/2014 - Ordinance Nos. 21412-09-2014 & 21413-09-
2014
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DATE: Tuesday, September 09, 2014 REFERENCE NO.: **G-18302
LOG NAME: 55FWS HPHILLIPS LEASE TERMINATION
SUBJECT:
Authorize Execution of a Lease Termination Agreement with Harry Phillips for the Termination of a Ground
Lease at Fort Worth Spinks Airport, Authorize Payment in the Amount of$200,000.00 to Harry Phillips to
Acquire Aircraft Hangar and Remaining Leasehold Interest, Authorize Use of Mineral Lease Revenue from
City Airports and Adopt Appropriation Ordinances (COUNCIL DISTRICT 6)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of a Lease Termination Agreement with Harry Phillips for the termination of
City Secretary Contract No. 26591 (M&C L-13064) for a Ground Lease at Fort Worth Spinks Airport;
2. Authorize a payment in the amount of$200,000.00 to Harry Phillips for the acquisition of an aircraft
hangar and remaining leasehold interest;
3. Adopt the attached supplemental appropriation ordinance increasing estimated receipts and
appropriations in the Municipal Airports Fund in the amount of$200,000.00 for payment to Harry Phillips
to acquire the leasehold interest;
4. Authorize the one-time use of revenue derived from mineral leases on City-owned airports in the
amount of$200,000.00 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;
5. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Airports Gas Lease Project Fund in the amount of$200,000.00; and
6. Authorize the transfer in the amount of$200,000.00 from the Airports Gas Lease Project Fund to the
Municipal Airports Fund.
DISCUSSION:
On July 27, 2001, (M&C L-13064) the City Council approved an unimproved ground lease with Harry
Phillips at Fort Worth Spinks Airport (Spinks Airport). Mr. Phillips constructed a 13,154 square foot hangar
on the site identified as E2. Mr. Phillips approached the City recently stating his desire to terminate his
Lease Agreement and asked if the City would be interested in purchasing the leasehold interest in the
property. Recognizing the good condition and value the hangar possesses, the Aviation Department had
the leasehold interest, including improvements, appraised to determine the appropriate value and made
an offer to Mr. Phillips of$200,000.00 and he has accepted.
Logname: 55FWS HPHILLIPS LEASE TERMINATION Page 1 of 2
The acquisition of this hangar will increase revenue and contribute toward the objective of attaining self-
sustainability for Spinks Airport, which currently has not been met. The Federal Aviation Administration
requires public use airports to try to be as self-sustaining as possible and is documented through Grant
Assurances. In particular, Grant Assurance No. 24 -Airport will maintain a fee and rental structure for the
facilities and services at the airport which will make the airport as self-sustaining as possible.
Staff recommends approval of the execution of the Lease Termination Agreement for the termination of
this Agreement and the payment of compensation to Mr. Phillips. 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
$200,000.00 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 6, Mapsco 119R.
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
3) PE40 476240 0551000 $200.000.00 6) P240 538040 551929990100 $200,000.00
3) PE40 539120 0551000 $200.000.00
5) P240 446200 551929990100 $200,000.00
5) P240 538040 551929990100 $200.000.00
6) PE40 476240 0551000 $200,000.00
CERTIFICATIONS:
Submitted for Cily Manager's Office by: Fernando Costa (6122)
Originating Department Head: Bill Welsted (5402)
Aaron Barth (5434)
Additional Information Contact: James Burris (5403)
Logname: 55FWS HPHILLIPS LEASE TERMINATION Page 2 of 2