HomeMy WebLinkAboutOrdinance 20216-05-2012Ordinance No. 20216 -05 -2012
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE CAPITAL PROJECTS RESERVE FUND IN THE
AMOUNT OF $281,902.00 AND IN THE GENERAL ENDOWMENT GAS LEASE
FUND IN THE AMOUNT OF $281,902.00, FROM AVAILABLE FUNDS, FOR THE
PURPOSE OF ALL REVENUES RECEIVED FROM THE ALLIANCEAIRPORT
AUTHORITY, INC.'S (THE AUTHORITY) MINERAL LEASE BE TRANSFERRED
FROM THE ABOVE MENTIONED FUNDS TO THE AUTHORITY SO THE BOARD
OF DIRECTORS CAN REVIEW AND TAKE ACTION, AS IT DEEMS NECESSARY;
PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE
CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN
CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2011 -2012 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
Capital Projects Reserve Fund in the amount of $281,902.00 and in the General Endowment Gas Lease
Fund in the amount of $281,902.00, from available funds, for the purpose of all revenues received from the
Authority's mineral lease be transferred from the above mentioned funds to the Authority so the Board of
Directors can review and take action, as it deems necessary.
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 Ordinance No. 19911-09-2011 and 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of said prior ordinances and appropriations are hereby expressly repealed.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 FORM AND LEGALITY:
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ADOPTED AND I:FFEC'TIVF: MaN 15, 2012
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/15/2012 - Ordinance Nos. 20216 -05 -2012 and 20217-05-
2012
DATE: Tuesday, May 15, 2012 REFERENCE NO.: * *G -17591
LOG NAME: 13ALLIANCEAIRPORTAUTHORITY GAS LEASE REVENUE
SUBJECT:
Authorize Transfer in the Amount of $281,902.00 in Gas Lease Revenues from the Capital Projects
Reserve Fund and in the Amount of $281,902.00 from the General Endowment Gas Lease Fund to
AllianceAirport Authority, Inc. and Adopt Appropriation Ordinances (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Capital Projects Reserve Fund in the amount of $281,902.00 and in the General Endowment Gas Lease
Fund in the amount of $281,902.00;
2. Authorize the transfer in the amount of $281,902.00 from the Capital Projects Reserve Fund and in the
amount of $281,902.00 from the General Endowment Gas Lease Fund to AllianceAirport Authority, Inc.;
and
3. Adopt the attached supplemental appropriation ordinance increasing estimated receipts and
appropriations in the amount of $563,804.00 in the AllianceAirport Authority Gas Revenue Fund from
available funds.
DISCUSSION:
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
Logname: 13ALLIANCEAIRPORTAUTHORITY GAS LEASE REVENUE Page 1 of 2
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.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above recommendations
and adoption of the attached appropriation ordinances, funds will be available in the current budgets, as
appropriated, of the General Endowment Gas Lease Fund and the Capital Projects Reserve Fund.
FUND CENTERS:
TO Fund /Account/Centers
1) GC10 446100 006060001000
1) GC10 538070 006060001000
1)T127 446100 006127099901
1)T127 538070 006127099901
2 &3)R148 472010 0171000
2 &3)R147 472010 0171000
3) R148 538110 0171000
CERTIFICATIONS:
FROM Fund /Account/Centers
$281,902.00 2) GC10 538070 006060001000
$281,902.00 2) T127 538070 006127099901
$281,902.00
$281,902.00
$281,902.00
$281,902.00
$563,804.00
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
Susan Alanis (8180)
Lena Ellis (8517)
Greg Jordan (8843)
$281,902.00
$281,902.00
Logname: 13ALLIANCEAIRPORTAUTHORITY GAS LEASE REVENUE Page 2 of 2