HomeMy WebLinkAboutOrdinance 18976-12-2009Ordinance No. 1897612-2oD9
AN GRDINANCE INCREASING ESTIMATED RECEIPTS AND APPRQPRIATIGNS IN
THE VARIOUS FUNDS LISTED BELOW FRAM AVAILABLE FUNDS, FQR BANKING
AND CONSULTANT SERVICES PROVIDED IN C~NJUNCTIQN WITH THE CITY'S GAS
LEASE PROGRAM; PROVIDING FQR A SEVERABILITY CLAUSE; MAKING THIS
ORDINANCE CUMULATIVE 4F PR14R QRDINANCES; REPEALING ALL QRDINANCES
IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL GF THE CITY 4F FORT WORTH, TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2D1 D, there shall
also be increased appropriations in the in the following funds in the amount of $2,228,761.99 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 $102,31 O.D4;
2. Park Gas Lease Project Fund in the amount of $608,725.53;
3. Lake Worth Trust Fund in the amount of $166,747.75;
4. Capital Projects Reserve Fund in the amount of $15,588.21;
5. Golf Capital Projects Fund in the amount of $237,860.29;
6. Aviation Improvements Capital Projects Fund in the amount of $814,857.6D;
7. Contract Street Maintenance Fund in the amount of $15,651.66;
8. Solid Waste Capital Projects fund in the amount of $132,991.31;
9. Airports Gas Lease Project Fund in the amount of $49,645.45;
1D. Golf Capital Project Fund in the amount of $2,257.68;
11. Water and Sewer Capital Projects Fund in the amount of $8,96D.13;
12. Park System Endowment Fund in the amount of $20,954.73;
13. Water and Sewer Endowment Fund in the amount of $2,575.54;
14. Aviation Endowment Fund in the amount of $45,176.55; and
15. Aviation Asset Depletion Fund in the amount of $4,453.52.
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 Grdinance No.18809and 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 FARM AND LEGALITY:
Assistant City torney
ADAPTED AND EFFECTIVE: December 15, 2009
City of Fort Worth, Texas
Mayor and Council Communication
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CoUNC~L ACT~oN Approved on ~ 2~~ 5~~443 - ~}rd. Na. ~ ~9'l~•1 ~-Z009
DATE: Tuesday, December 15, 2009
LOG NAME: 06GAS WELL CONSULTANT FEE
~~~R.~Fr.T~
REFERENCE N4.: G-16198
Adopt Appropriation Ordinance in the Amount of $2,228,161.99 to Properly Record Fees Paid to JPMorgan
Chase Bank, Bank One Trust Company and Midkiff Dil and Gas Since 2004 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 $2,228,161.99 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 $102,310.04;
2. Park Gas Lease Projects Fund in the amount of $608,125.53;
3. Lake Worth Trust Fund in the amount of $166,141.15;
4, Capital Projects Reserve Fund in the amount of $15,588.21;
5. Golf Capital Projects Fund in the amount of $231,860.29;
6. Aviation Improvements Capital Projects Fund in the amount of $814,851.60;
7. Contract Street Maintenance Fund in the amount of $15,651.66;
8. Solid Waste Capital Projects Fund in the amount of $132,991.31;
9. Airports Gas Lease Project Fund in the amount of $49,645.45;
10. Golf Capital Projects Fund in the amount of $2,251.68;
11. Water and Sewer Capital Projects Fund in the amount of $8,960.13;
12. Park System Endowment Fund in the amount of $20,954.13;
13. Water and Sewer Endowment Fund in the amount of $2,515.54;
14. Aviation Endowment Fund in the amount of $45,116.55; and
15. Aviation Asset Depletion Fund in the amount of $4,453.52.
n~sr.~~~~inN~
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 the future, the
appropriation of leasing and banking consultant fees will be done on an annual basis at fiscal year end.
In March 2004, the City of Fort Worth (the Ciry) 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 at a rate
of five percent of bonus collection, four percent of royalty collection and $24.00 per year per property.
Logname: ObGAS ~1VELL CONSULTANT FEE Page 1 of 4
In March 2008, the City and JPMC renegotiated the terms of the original agreement City Secretary
Contract No. 36999}. Per the terms of the amended agreement, JPMC provided the same services at a
fee structure of five percent for collection of bonuses valuing less than or equal to $250,000.00, two
percent for collection of bonuses valuing greater than $250,000.00, $8,000.00 per month financial
management fee for banking services related to one to 30 wells, $10,000.00 per month financial
management fee for banking services related to 31 or more wells, no royalty collection fee and no property
fee. The amended agreement applied to all leases approved by the City Council after March 1, 2008.
In May 2008, the City issued a Request for Proposals (RFP) for gas and oil mineral asset management
separated by banking services (Section I) and leasing consultant services (Section tl) 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 II) and JPMorgan
Chase for the banking services contract (Section I).
The fees for Midkiff Gil and Gas for consulting services are four and one-half percent of the gross lease
bonus collected for bonuses up to $250,ODD.OD, 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
Gas Lease Program Prior to 2009 $50,651,513.65
Gas Lease Program Fiscal Year 2009 15~8a7,289.30
Total Gas Lease Program $96,458,802.95
SERVICE FEES
$2,191,128. l0
165 280.19
$2,956,408.89
$121,646.90 of the total $2,956,408.89 service fees have been appropriated in prior years. This M&C
appropriates $2,228,161.99 for the services provided by Bank Gne Trust CompanylJPMorgan Chase
Bank and Midkiff Gil and Gas.
FISCAL INF~RMATI4N I 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, Park Gas Lease Projects Fund, Lake Worth Trust Fund, Capital Projects Reserve
Fund, GDIf Capital Projects Fund, Aviation Improvements Capital Projects Fund, Contract Street
Maintenance Fund, SDlid Waste Capital Projects Fund, Airports Gas Lease Project Fund, Golf Capital
Project Fund, Water and Sewer Capital Projects Fund, Park System Endowment Fund, Water and Sewer
Endowment Fund, Aviation Endowment Fund and Aviation Asset Depletion Fund.
FUND CENTERS:
TO Fund_I_Acc_ountlCenters
C223 _44610.0_ _201929990 00
0223.4461.0 _20 ~ 92999~2~D
0223.531.260 _,201__929990100
C223 531260 201929990200
$30 652_.38
$11,621.66
$30,68.2.38
$11,621.66
FRAM FundlAccountlCenters
Logname: DbGAS WELL CGNSULTANT FEE Page 2 of 4
C282 446100 801479990200 91 701,35
C282 446100 801920033710 3 555.42
C282 446100 801929990100 506 334,50
C282 _.446100 $01929990300 ~1_i343.21
C282 446100 802480075610 5 791.05
C282 531260 801479990200 91 701,35
C282 531260 801920033710 3 555.42
C282 531260 801929990100 506 334.50
C282 531260 801929990300 1 343.21
C282 531260 802480075610 5 791.05
FE70 446100 030001902000 166 747.75
FE70 531260 030001902000 166 747.75
GC10 446100 013010001000 15 58$.21
GC10 531260 013010001000 15 588.21
GC16 446100 080160520170 237 860.29
GC 16 531260 080160520170 237 860.29
GC24 446100 055240439020 814 857.60
GC24 531260 055240439020 814 857.60
GS93 446100 020930576010 15 651.66
GS93 531260 020930576010 15 651.66
P195 446100 052195005100 132 997.31
P195 531260 052195005100 132 997.31
P240 446100 551929990100 49 645.45
P240 531260 551929990100 49 645.45
P243 446100 801929990100 2 257.68
P243 531260 801929990100 2 257,68
P245 446100 601149990100 5151.04
P245 446100 601149990200 1 233.54
P245 446100 601149990300 2 575, 55
P245 531260 601149990100 5151.04
P245 531260 601149990200 1 233.54
P245 531260 601149990300 2 575.55
7122 4461.00 080122099901 ~161~56.05
7122___ 446100 _OS0192003371 X4,898.68
71.22. 531260 080122099901 ~1.6~056_.05
7122_ _531260 0.801.9200337.1 ~4~$98.68
7124 446100. 0601.24099901 $2 575.54
7124.._ .53,1.260__. 0601.24099901_ $2515.,54
7125 446100 055125099901 $45,176.55
Logname: ObGAS WELL CGNSULTANT FEE Page 3 of 4
T125 531260 05512599901 45116.55
T126~446100 055126099941 ~4~453.52
T126 531260 055126099901 4 453.52
CERTIFICATIONS:
Submitted for C~'t~_Manager's Office bv: Fernando Costa ~6122~
4riginatng Department Head: Susan Aianis ~S1S0~
Additional Information Contact: Judy WaltonlJean Petr ~8361~
Logname: ObGAS WELL CONSULTANT FEE Page 4 of 4