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, with each participating fund being 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.
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 has a term of five years, 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 taken on a monthly basis from the various funds outlined above. For accounting purposes only, this M&C officially appropriates funds associated with the fees for Fiscal Year 2017 to the various funds for the banking, mineral-lease-administration, and trust/asset-management services provided by Wells Fargo. In accordance with the terms of the contract, Wells Fargo has paid itself throughout the year. Thus, approval of this M&C does not further reduce the mineral revenues in Fiscal Year 2017. The final actual allocation of the $1,242,000.00 among the identified funds and projects will be determined in connection with the closing of the fiscal year and the associated accounting entries will be recorded.
This M&C does not request approval of a contract with a business entity. |
