M&C Review


COUNCIL ACTION:  Approved on 4/17/2018 - Ordinance Nos. 23179-04-2018, 23180-04-2018, 23181-04-2018 & 23182-04-2018

DATE: 4/17/2018 REFERENCE NO.: **G-19267 LOG NAME: 13GAS LEASE CONSULTANT FEES FY2018
CODE: G TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:  

Adopt Ordinances Increasing Estimated Receipts and Appropriations in Multiple Funds by a Combined Total Amount Up to $800,000.00, Allocated Proportionately, to Properly Record Fees Paid to Wells Fargo Bank, National Association, for Banking, Mineral-Lease-Administration Services, and Trust/Asset Management Services Provided in Fiscal Year 2018 Under City Secretary Contract No. 45281 (ALL COUNCIL DISTRICTS)


RECOMMENDATION:

1. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the amount of $321,281.00 in the Aviation Endowment Gas Lease Fund from available funds for banking and mineral-lease-administration services and for the trust/asset management services;

2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the amount of $203,045.00 in the General Endowment Gas Lease Fund from available funds for banking and mineral-lease-administration services and for the trust/asset management services;

3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the amount of $110,128.00 in the PACS Endowment Gas Lease Fund from available funds for banking and mineral-lease-administration services and for the trust/asset management services; and

4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the amount of $165,546.00 in the Water/Sewer Endowment Gas Lease Fund from available funds for banking and mineral-lease-administration services and for the trust/asset management services.

 
DISCUSSION:

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). The Agreement has a term of five years, with the fee for banking and mineral-lease-administration services set a $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 allocated on a monthly basis to the various funds outlined above. For accounting purposes only, this M&C officially appropriates funds associated with fees for Fiscal Year 2018 to the various funds for banking, mineral-lease-administration, and trust/asset-management services provided by Wells Fargo. In accordance with the terms of the Agreement, Wells Fargo has paid itself throughout the year. Thus, approval of this M&C does not further reduce the mineral revenues in Fiscal Year 2018.

This M&C does not request approval of a contract with a business entity.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that upon adoption of the attached appropriation ordinance, funds will be available in the Aviation Endowment Gas Lease Fund, General Endowment Gas Lease Fund, PACS Endowment Gas Lease Fund, and the Water/Sewer Endowment Gas Lease Fund.

TO
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

FROM
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

Submitted for City Manager's Office by:
Susan Alanis (8180)
Originating Department Head:
Aaron Bovos (8517)
Additional Information Contact:
John Samford (8502)

 
 
ATTACHMENTS
  13GAS LEASE CONSULTANT FEES FY2018 13001_AO18.docx
  13GAS LEASE CONSULTANT FEES FY2018 13002_AO18.docx
  13GAS LEASE CONSULTANT FEES FY2018 53001_AO18.docx
  13GAS LEASE CONSULTANT FEES FY2018 53003_AO18.docx