M&C Review


COUNCIL ACTION:  Approved on 9/25/2018 - Ordinance Nos. 23404-09-2018, 23405-09-2018, 23406-09-2018, 23407-09-2018, 23408-09-2018 and 23409-09-2018

DATE: 9/25/2018 REFERENCE NO.: **G-19377 LOG NAME: 03GAS LEASE CONSULTANT FEES FY2018 CLEANUP
CODE: G TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:   Adopt Ordinances Adjusting Estimated Receipts and Appropriations in Multiple Funds by a Combined Total Amount Up to $201,862.00, 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:

It is recommended that the City Council:

  1. Adopt the attached ordinance decreasing estimated receipts and appropriations in the PACS Endowment Gas Lease Fund by $10,478.00 and increasing estimated receipts and appropriations in the Gas Lease Bank Fees Project of the PACS Gas Lease Capital Projects Fund by the same amount, from current-year available revenues, to address and properly account for banking fees;

  2. Adopt the attached ordinance decreasing estimated receipts and appropriations in the PACS Endowment Gas Lease Fund by $3,147.00 and increasing estimated receipts and appropriations in the Gas Lease Bank Fees Project of the Municipal Golf Gas Lease Capital Projects Fund by the same amount, from current-year available revenues, to address and properly account for banking fees;

  3. Adopt the attached ordinance decreasing estimated receipts and appropriations in the General Endowment Gas Lease Fund by $37,888.00 and increasing estimated receipts and appropriations in the Gas Lease Bank Fees Project of the General Gas Lease Capital Projects Fund by the same amount, from current-year available revenues, to address and properly account for banking fees;

  4. Adopt the attached  ordinance decreasing estimated receipts and appropriations in the Aviation Endowment Gas Lease Fund by $43,343.00 and increasing estimated receipts and appropriations in the Gas Lease Bank Fees Project of the Aviation Gas Lease Capital Project Fund by the same amount, from current-year available revenues, to address and properly account for banking fees;

  5. Adopt the attached ordinance decreasing estimated receipts and appropriations in the Water & Sewer Endowment Gas Lease Fund by $28,849.00 and increasing estimated receipts and appropriations in the Gas Lease Bank Fees Project of the Water & Sewer Gas Lease Capital Project Fund by the same amount, from current-year available revenues, to address and properly account for banking fees;

  6. Adopt the attached ordinance decreasing estimated receipts and appropriations in the Water & Sewer Endowment Gas Lease Fund by $78,157.00 and increasing estimated receipts and appropriations in the Gas Lease Bank Fees Project of the Lake Worth Gas Lease Capital Project Fund by the same amount, from current-year available revenue, to address and properly account for banking fees.


 
DISCUSSION:

The purpose of this Mayor and Council Communication (M&C) is to make appropriation adjustments to properly account 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 April 2018, the City Council approved M&C G-19267, which appropriated funds for these fees in the respective Endowment Gas Lease Funds.  Because the banking and administrative services benefit other funds beyond the endowments, additional steps are needed to complete the funding of these expenditures.  Those steps include recognizing revenue in the appropriate funds for administrative and banking expenditures. Approval of this M&C is needed to accomplish the necessary actions. The corrective action of this M&C follows the current Financial Management Policy Statements in which funds are appropriated in the individual funds.

For FY2019 the transactions have been budgeted in all the respective funds.

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 with which mineral leases are associated. 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 Gas Lease Capital Projects Fund, PACS Gas Lease Capital Projects Fund, and the Water & Sewer Gas Lease Capital Projects Fund, Municipal Golf Gas Lease Capital Projects Fund and Lake Worth Gas Lease Capital Project 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:
Fernando Costa (8180)
Originating Department Head:
Lynda Johnson (6222)
Additional Information Contact:
Terry Hanson (7934)

 
 
ATTACHMENTS
  Rec 1 - GAS CLEANUP_33002_AO18.docx
  Rec 2 - GAS CLEANUP_33004_AO18.docx
  Rec 3 - GAS CLEANUP_33005_AO18.docx
  Rec 4 - GAS CLEANUP_53002_AO18.docx
  Rec 5- GAS CLEANUP_53004_AO18.docx
  Rec 6 - GAS CLEANUP_33001_AO18.docx