McKinney Skirts Taxpayer Oversight with the Avelo Airlines Contract

The city of McKinney and City Council cite a 2013 resolution authorizing the city manager to sign contracts related to the acquisition of airport assets as the reason they bypassed the usual public disclosure and scrutiny when they signed the Avelo Airlines contract two months ago. Nothing was presented to the public either before or after the signing.

In an email answering why the Avelo contract did not go through the usual city council meeting process, Barry Shelton, McKinney’s Assistant City Manager, responded:
“In the case of the airport, the City Council back in 2013 approved a resolution delegating authority to “execute any contracts, leases, subleases, vendor or supply agreements necessary to operate and protect the Assets upon purchase.” “

Does that 2013 resolution really authorize the city to get by without taxpayer inspection and scrutiny with the Avelo Airlines contract?

Upon further inspection, the 2013 resolution specifically addressed the acquisition of airport buildings, hangars, and other business assets on land already owned by the city at the time of the resolution—in 2013.

The city of McKinney, however, did not even buy the land Avelo Airlines will be operating on until 2019. There were no assets for the city to buy in the 2019 land acquisition either. Why would the city think this resolution, which is specific to land already owned by the city in 2013, gives the City Manager blanket authority to authorize all future contracts for lands, assets, and airliner contracts not yet owned by the city for the airport now and forever?

There were also no public hearings at the meetings for either the 9/2013 or 10/2013 resolutions before this authorization was given to the then City Manager, Jason Gray. The resolutions were at least on public agendas, though. The agenda and video of the 9/2013 discussion is here. There was no discussion at all for the 10/2013 resolution.

Is the City thinking that Section 4 from the 10/2013 resolution authorizes any and all future airport business contracts be handled out of the public eye?

“Section 4. The City Manager is further authorized to execute any contracts,leases, subleases, vendor or supply agreements necessary to operate and protect the Assets (the “Related Agreements”), upon purchase. The City’s assumption,payment, discharge and performance of the Related Agreements are expressly conditionedupon Closing.” 

If the 10/2013 resolution legitimately allows the City Manager to enter into contracts without coming before City Council, why do smaller contracts, like the one for FBO apron lighting in 2024, come before City Council? 

The Notes Live music venue, on the other hand, has appeared before the City Council four times, each time the contract was revised. Shouldn't that be the standard for all city contracts?

As of now, the city of McKinney and Avelo Airlines are fighting the disclosure of the signed contract details in response to my open records request.

There is no doubt that the McKinney taxpayer is being left in the dark. The taxpayer must wait for the city of McKinney to voluntarily disclose the required financial details that will impact city finances for years to come. That is not how this is supposed to work, especially since the taxpayer is footing the bill.