On February 8, 2011, the board of directors of AllianceAirport Authority, Inc., (the Authority) approved Resolution AAA-2011-01, which authorized the execution of a mineral lease with Quicksilver Resources, Inc., for approximately 112 mineral acres in the vicinity of 2000 Eagle Parkway, near Fort Worth Alliance Airport. This site comprises the American Airlines maintenance facility. Under the Authority's Articles of Incorporation, the board has the right to pay any net earnings of the Authority to the City if the board determines that sufficient provision has been made for the full payment of all obligations of the Authority. Total mineral revenues received to date are $563,804.00. One half of these revenues were deposited into the City's Capital Projects Reserve Fund and the other half was deposited into the City's General Endowment Gas Lease Fund. It was initially determined that the revenues should be deposited into the City's gas lease revenue funds and expended in accordance with the City's Financial Management Policy Statements (FMPS). However, a recent review by the Law Department concluded that the funds belong to the Authority. Therefore, and in accordance with the Authority's Articles of Incorporation, formal action by the board of directors is required before any Authority revenues can be deposited into City accounts. As a result, it is necessary that all revenues received from the Authority's mineral lease be transferred from the City's Capital Projects Reserve Fund and the General Endowment Gas Lease Fund to the Authority so that the board of directors can review and take action, as it deems necessary. Because of the bankruptcy filings of American Airlines, Inc., and AMR Corporation, it is anticipated that the Authority's board of directors will retain at least some of these revenues until those bankruptcy proceedings are resolved in order to ensure that sufficient funds are available to pay the Authority's bankruptcy counsel and, if required, to protect the Authority's interest in the American Airlines maintenance facility. After the board of directors takes action to budget sufficient funds for the Authority's perceived obligations, the board will have the right to authorize payment back to the City of any remaining Authority's revenues. The City's FMPS specify that gas related revenues derived from property held by development corporations are to be deposited to separate accounts to support the lawful activities of such corporations per the policies and oversight of their respective governing boards. Accordingly, because the recommended transfer is corrective, a suspension of the FMPS is not required in order to take this action. |
