TEXAS DEPARTMENT OF TRANSPORTATION
AIRPORT PROJECT PARTICIPATION AGREEMENT
(Grant for Airport Development)
TxDOT Contract No.:
TxDOT Project No.:
TxDOT CSJ No.:
part I - Identification of the Project
T0: The City of Kerrville and the County of Kerr, Texas
6XXFA023
AP KERRVILLE
9615KERVL
FROM: The State of Texas, acting through the Texas Department of Transportation
This Grant is made and entered into by and between the TEXAS DEPARTMENT OF
TRANSPORTATION (hereinafter referred to as the "State"), for and on behalf of
the State of Texas, and the City of Kerrville and the County of Kerr, Texas,
(hereinafter referred to as the "Sponsor").
WITNESSETH:
WHEREAS, the Sponsor desires to sponsor a project for the development of
a public aviation facility, known or to be designated as the AIRPORT under Texas
Aeronautics Act, Tex. Rev. Civ. Stat. Ann. art. 46c-1 et seq. (Vernon and Vernon
Supp.), and the Municipal Airports Act, Tex. Rev, Civ. Stat. Ann. art. 46d-1 et
seq. (Vernon and Vernon Supp.); and
WHEREAS, the project is described as follows: reconstruct section of Runway
12-30; rehabilitate, stripe and mark Runway 2-20; rehabilitate and mark taxiway
to Runway 2-20; install medium intensity runway lights on Runway 2-20; install
centerline reflectors on taxiway to Runway 2-20; install secondary lighted
windcone; install segmented circle; and associated appurtenances at the Kerrville
Municipal/Louis Schreiner Field; and
WHEREAS, the Sponsor hereby applies for a grant for financial assistance
and desires the State to act as the Sponsor's agent in matters connected with the
project described above; and
WHEREAS, the parties hereto, by this Grant, do hereby fix their respective
responsibilities with reference to each other and with reference to the
accomplishment of said project.
NOW, THEREFORE, for and in consideration of the benefits which will accrue
to the parties hereto by virtue of the completion of the project, IT IS MUTUALLY
COVENANTED AND AGREED as follows:
Page 1 of 11
part II - Offer of Financial Assistance
It is estimated that approximately 5780,000.00 (Amount A) of the project
costs will be eligible for financial assistance, and that financial
assistance will be for ninety percent (90%) of the eligible project costs.
Project costs eligible for financial assistance shall be determined by the
State. It is estimated that the Sponsor's share of the eligible project
costs will be approximately 578,000.00 (Amount B) and the financial
assistance share of eligible project costs will be approximately
3702,000.00 (Amount C). Financial assistance is subject to the
availability of state and/or federal funds.
Should actual eligible project costs exceed the amount shown above (Amount
A), the State may participate in the additional eligible costs to the
extent of the aforesaid appropriate percentages and subject to the
availability of funds. Participation in additional costs may require
approval by the Texas Transportation Commission. The State will not
authorize expenditures in excess of the dollar amounts identified in this
Grant and any amendments hereto, without the consent of the Sponsor.
3. Should estimated eligible project costs as determined following the
receipt of construction bids for the project, exceed the amount shown
above (Amount A), the Sponsor may request the State to void this Grant,
whereupon the State shall agree to void this Grant upon the satisfaction
of the following conditions:
the Sponsor's request to the State to void the Grant shall be in
writing and dated; and
if required by the State, the Sponsor shall reimburse the State for
funds expended on this project and Sponsor shall assume the
responsibility for any future State expenses for contracted services
or materials related to the project for which a contract had been
executed prior to the Sponsor's request to void the Grant. Sponsor
funds held by the State may be retained until this requirement is
satisfied; and
failure on the part of the Sponsor to comply with the conditions of
this paragraph shall constitute a breach of this Grant.
4. Upon satisfaction of the conditions specified in Paragraph II-3 above, the
State shall declare this Grant null and void, and this Grant shall have no
farce and effect, except that unexpended or unencumbered monies actually
deposited by the Sponsor and held with the State for project purposes
shall be returned to the Sponsor within a reasonable time.
Sponsor's share of project costs may be in cash, in kind, or a combination
of both, provided however, that the Sponsor's share (Amount B) shall be
paid initially in cash if requested by the State. At project closeout,
Sponsor will be credited with both cash payments made under this paragraph
and the value of in kind contributions, and reimbursed for any credited
amounts that exceed Sponsor's share.
Page 2 of 11
The value of all in kind contributions made to the project of property
interests, small miscellaneous costs and other expenses approved by the
State, and claimed by the Sponsor as project costs for the purposes of
determining the Sponsor's share of total eligible project costs (Amount
B), shall be determined by the State.
6. The Sponsor specifically agrees that it shall pay any project costs which
exceed the amount of financial participation agreed to by the State. It
is further agreed that the Sponsor will reimburse the State for any
payment or payments made hereunder by the State which are in excess of the
percentage of financial assistance (Amount C) as heretofore stated in
Paragraph II-I.
7. Sponsor, by accepting this Grant certifies and, upon request, shall
furnish proof to the State that it has sufficient funds to meet its share
of the costs as heretofore stated. The Sponsor hereby grants to the State
the right to audit any books and records of the Sponsor to verify said
funds. In addition, the Sponsor shall disclose the source of all funds
for the project and its ability tq finance and operate the project.
Upon execution of this Grant and written demand by the State,' the
Sponsor's financial obligation of 10% of the estimated design costs shall
be due and payable to the State. The remaining balance of the Sponsor's
share of estimated project costs will be due and payable to the State upon
written request prior to construction. Should the Sponsor fail to pay
said obligation, either in whole or in part, within 30 days of written
demand, the State may exercise its rights under Paragraph III-7 hereof.
Likewise, should the State be unwilling or unable to pay its obligation in
a timely manner, the failure to pay shall be a breach and the Sponsor may
exercise any rights and remedies it has at law ar equity.
The State shall reimburse the Sponsor, at the financial closure of the
project, any excess funds provided by the Sponsor which exceed Sponsor's
share (Amount B).
S. In accepting the Grant, the Sponsor guarantees that:
a. it will, in the operation of the facility, comply with aT1
applicable state and federal laws, rules, regulations, procedures,
covenants and assurances required by the State of Texas in
connection with the Grant; and
b. the Airport or navigational facility which is the subject of this
Grant shall be controlled for a period of at least 20 years, and
improvements made or acquired under this project shall be operated,
repaired and maintained in a safe and serviceable manner for the
useful life of said improvements, not to exceed 20 years; and
c. consistent with safety and security requirements, it shall make the
airport or air navigational facility available to all types, kinds
and classes of aeronautical use without discrimination between such
types, kinds and classes and shall provide adequate public access
during the period of this Grant; and
Page 3 of II
it shall not grant or permit anyone to exercise an exclusive right
for the conduct of aeronautical activity on or about an airport
landing area. Aeronautical activities include, but are not limited
to scheduled airline flights, charter flights, flight instruction,
aircraft sales, rental and repair, sale of aviation petroleum
products and aerial applications. The landing area consists of
runways or landing strips, taxiways, parking aprons, roads, airport
lighting and navigational aids; and
e. it shall not enter into any Grant nor permit any aircraft to gain
direct ground access to the sponsor's airport from private property
adjacent to or in the immediate area of the airport. Further,
Sponsor shall not allow aircraft direct ground access to private
property. Sponsor shall be subject to this prohibition, commonly
known as a "through-the-fence operation," unless an exception is
granted in writing by the State due to extreme circumstances; and
f. it shall not permit non-aeronautical use of airport facilities
without prior approval of the State; and
it will acquire all property interest identified as needed for the
purposes of this project and comply with all applicable state and
federal laws, rules, regulations, procedures, covenants and
assurances required by the State of Texas in the acquisition of such
property interest; and that airport property identified within the
scope of this project and Attorney's Certificate of Property
Interests shall be pledged to airport use and shall not be removed
from such use without prior written approval of the State; and
h. the Sponsor shall submit to the State annual statements of airport
revenues and expenses; and
i. all fees collected for the use of an airport constructed, in whole
or part, with funds provided under the program shall be reasonable
and nondiscriminatory. The proceeds of such fees shall be used
solely for the development, operation and maintenance of the airport
or navigational facility. Sponsor shall not be required to pledge
income received from the mineral estate to airport use unless state
funds were used to acquire the mineral estate of airport lands or
any interest therein; and
j. an Airport Fund shall be established by resolution, order or
ordinance in the treasury of the Sponsor, or evidence of the prior
creation of an existing airport fund or a properly executed copy of
the resolution, order, or ordinance creating such a fund, shall be
submitted to the State. All fees, charges, rents, and money from
any source derived from airport operations must be deposited in said
Airport Fund and shall not be diverted to the general revenue fund
or any other revenue fund of the Sponsor. All expenditures from the
Airport fund shall be solely for airport purposes. Sponsor shall be
ineligible fora subsequent grant or loan by the State unless, prior
to such subsequent approval of a grant or loan, Sponsor has complied
with the requirements of this subparagraph; and
Page 4 of 11
k. all airport-related development constructed with granted funds shall
be consistent with the Airport Layout Plan approved by the State and
maintained by the Sponsor. A reproducible copy of such plan if
required, and all subsequent modifications thereto, shall be filed
with the State for approval; and
where airport lighting is part of a project, Sponsor shall daily
operate such lighting from sunset to sunrise, either manually or by
radio control following completion of the project; and
m. insofar as it is reasonable and within its power, Sponsor shall
adopt and enforce zoning regulations to restrict the height of
structures and use of land adjacent to or in the immediate vicinity
of the airport to heights and activities compatible with normal
airport operations as provided in Tex. Loc. Govt. Code Ann. §§
241.001 et seq. (Vernon and Vernon Supp.). Sponsor shall also
acquire and retain avigation easements or other property interests
in or rights to use of land or airspace, unless sponsor can show
that acquisition and retention of such interest will be impractical
or will result in undue hardship to Sponsor. Sponsor shall be
ineligible for a subsequent grant or loan by the State unless
Sponsor has, prior to such subsequent approval of a grant or loan,
adopted and passed an airport hazard zoning ordinance or order
approved by the State; and
n. it will provide upon request to the State, and the engineering or
planning consultant, copies of any maps, plans, or reports of the
project site, applicable to or affecting the above project; and
o. after reasonable notice, it will permit the State and any
consultants and contractors associated with this project, access to
the project site, and will obtain permission for the State,
consultants and contractors associated with this project, to enter
private property for purposes related to this project.
The Sponsor hereby certifies to the State that it will have acquired clear
title in fee simple to all property upon which construction work is to be
performed, or have acquired a leasehold on such property fora term of not
less than 20 years, prior to the advertisement for bids for such
construction or procurement of facilities that are part of the above
project, and within the timeframe of the project, a sufficient interest
(easement or otherwise) in any other property interest which may be part
of the project.
10. The Sponsor's acceptance of this Offer and ratification and adoption of
the Grant incorporated herein shall 6e evidenced by execution of this
instrument by the Sponsor, as hereinafter provided, and said Grant shall
comprise a contract, constituting the obligations and rights of the State
of Texas and the Sponsor with respect to the accomplishment of the project
and the operation and maintenance of the airport. Such Grant shall become
effective upon execution of this instrument and shall remain in full force
and effect for a period of 20 years.
Page 5 of 11
I1. The Sponsor shall have. on file with the State a current and approved
Attorney's Certificate of Airport Property Interests and Exhibit A
property map.
12. The Sponsor shall guarantee by resolution to complete the project subject
to the availability of funding by the State and Sponsor within two years
of completion of design.
If it becomes unreasonable or impractical to complete the project, the
State may void this agreement and release the Sponsor from any further
obligation of project costs.
PART III - Nomination of the Agent
1. The Sponsor hereby designates the State as the party to receive and
disburse all funds used, or to be used, in payment of the costs of said
project, or in reimbursement to either of the parties hereto for costs
incurred.
2. The State shall, for all purposes in connection with the project
identified above, be the Agent of the Sponsor. The Sponsor herewith
grants the State a power of attorney to act as its agent to perform the
following services:
a. accept, receive, and deposit with the State any and all project
funds granted, allowed, and paid or made available by the Sponsor,
the State of Texas, or any other entity;
advertise for professional engineering and/or planning services for,
but not limited to, the preparation of planning studies,
applications, plans and specifications for the above project and far
the management of the construction of the above project; certify
consultant selection procedures; and provide notification of
contract award for professional services;
c. authorize the advertisement, receipt and opening of bids for
construction of the above project; and award contracts for
construction of the above project and acquisition of materials
related to it;
d. participate in pre-bid and pre-construction conferences; and issue
orders as it deems appropriate regarding construction progress,
including but not limited to Notices to Proceed, Stop Work Orders,
and Change Orders;
exercise such supervision and direction of the project work as the
State reasonably finds appropriate. Where there is an
irreconcilable conflict or difference of opinion, judgment, order or
direction between the State and the Sponsor, any engineer,
contractor, or materialman, the State shall issue a written order
which shall prevail and be controlling;
Page 6 of 11
f. receive, review, approve and pay invoices and payment requests for
services and materials supplied in accordance with the State
approved contracts;
g, coordinate review and approval of project plans, specifications and
construction; coordinate and conduct progress and final inspections;
h. obtain an audit as may be required by state regulations;
i. receive, review and approve reimbursement requests for reasonable
and eligible property acquisition costs incurred by the Sponsor,
provided the required documentation is supplied;
j. pay to the Sponsor, from granted funds, the portion of any approved
reasonable and eligible project costs incurred by the Sponsor that
are in excess of the Sponsor's share.
1. administer Disadvantage Business Enterprises (DBE) and Historically
Underutilized Business (HUB) Programs in accordance with state
regulations.
3. The Sponsor, and not the State, shall be the contractual party to all
construction and professional service contracts entered into for the
accomplishment of this project. The State is hereby specifically granted
power of attorney to execute on behalf of the Sponsor any and all
construction and professional service contracts related to this project.
The power of attorney is a limited power to perform acts in connection
with airport improvements as specified in or necessitated by this Grant.
4. Upon entering into this Agreement, Sponsor hereby agrees to name an
individual, as the Sponsor's Authorized Representative, who shall be the
State's contact with regard to this project, and which individual shall
have the authority to make approvals and disapprovals as required on
behalf of the Sponsor.
Upon entering into this Agreement, Sponsor hereby agrees to name at least
three individuals, as the Sponsor's Consultant Selection Committee, to
represent the Sponsor in the selection of engineering and/or planning
consultants; and to name a chairperson of the selection committee; and to
provide a suitable location for pre-bid and for pre-construction
conferences, and for the submission and opening of construction bids.
6. This Grant is executed for the sole benefit of the contracting parties and
is not intended or executed for the direct or incidental benefit of any
third party. Furthermore, the State shall not be a party to any other
contract or commitment which the Sponsor may enter into or assume, or have
entered into or have assumed, in regard to the above project.
7. This Grant is subject to the applicable provisions of the Texas
Aeronautics Act, Tex. Rev. Civ. Stat. Ann., art. 46c-1 et seq. (Vernon
and Vernon Supp.), the Municipal Airports Act, Tex. Rev. Civ. Stat. Ann.
art. 46d-1, et seq., (Vernon and Vernon Supp.), and the Airport Zoning
Act, Tex. Loc. Govt. Code Ann. §§ 241.001 et seq. (Vernon and Vernon
Supp.). Failure to comply with the terms of this Grant or with the
aforementioned rules and statutes shall be considered a breach of this
Page 7 of 11

contract and will allow the State to pursue the remedies for breach as
stated below.
a. Of primary importance to the State is compliance with the terms and
conditions of this Grant. If, however, after all reasonable
attempts to require compliance have failed, the State finds that
Sponsor is unwilling and/or unable to comply with any of the terms
and conditions of this Grant, the State, may pursue any of the
following remedies: (1) require a refund of any financial assistance
money expended pursuant to the Grant herein, (2) deny Sponsor's
future requests for aid, (3) request the Attorney General to bring
suit seeking reimbursement of any financial assistance money
expended on the project pursuant to the Grant herein, provided
however, these remedies shall not limit the State's authority to
enforce its rules, regulations or orders as otherwise provided by
law, (4) declare this Grant null and void, or (5) any other remedy
available at law or in equity.
b. Venue for resolution by a court of competent jurisdiction of any
dispute arising under the terms of this Grant, or for enforcement of
any of the provisions of this Grant, is specifically set by Grant of
the parties hereto in Travis County, Texas.
The State reserves the right to amend or withdraw this Grant at any time
prior to acceptance by the Sponsor. The acceptance period cannot be
greater than 30 days after issuance unless extended by the State.
This Grant constitutes the full and total understanding of the parties
concerning their rights and responsibilities in regard to this project and
shall not be modified, amended, rescinded or revoked unless such
modification, amendment, rescission or revocation is agreed to by both
parties in writing and executed by both parties.
10. All commitments by the Sponsor and the State hereunder are subject to
constitutional and statutory limitations and restrictions binding upon the
Sponsor and the State (including §§ 5 and 7 of article 11 of the Texas
Constitution, if applicable) and to the availability of funds which
lawfully may be applied.
I1. This contract is subject to the approval as to form by the Attorney
General of the State of Texas.
Page S of 11
10/08/95 14:03 '$512 41¢rF510	TSDOT	DIV	AVIA ~ ~ 003/008
Part IV -	Acceptance of	the	Sponsor
The City of Kerrville and the County of Kerr, Texas does hereby ratify and
adapt all statements, representations, warranties, covenants and agreements
constituting the described project and incorporated materials referred to in the
foregoing Grant, and does hereby accept the Offer, and by such acceptance agrees
to all of the terms and conditions of the Grant thereof.
Executed thi s Z ~ day of _../~-;A~ 19 9 ~~
i. Y.i / ~~.r~
W--~ignature
tle o~
The County of Kerr, Texas does hereby ratify and adopt all statements,
representations, warranties, covenants and agreements constituting the described
project and incorporated materials referred to in the foregoing Grant, and does
hereby accept the Offer, and by such acceptance agrees to all of the terms and
conditions of the Grant thereof.
Executed this ~ day of ~n~ 19~ r
The County of Kerr Texas
Sponsor
t.
M//~~itness Signature Sponsornig nn ure//
~/.1'~yi ~~7n= .~ ' AA ..sit Lo ~lLGO~~
Title itlel~-~
Page 9 of 11
10/06/95 13:56 TX/RX K0.1524 P.003
The City of Kerrville. Texas_
SDOnsor
10!08/85 19:09 '@512 918..9510 TSDOT DIV AVIA ~. X1009/008
Part Y - Certificate of Attorney
I, ,/~GI/ylN~ /yJfjC/-/,gNN acting as attorney for
C/ oG (CFRiZyic-[.E , texas, o ere y certify that I have fully examined
t~ie~oregoing Grant an t e proceedings taken by said Sponsor relating thereto,
and find that the manner of acceptance and execution thereof, of the said Grant
by said Sponsor, is in accordance with the laws of the State of Texas.
th
Dated at /lE/~V/L(.~ Texas, this ~(~ day of (,tTp~~. ,
19 Cj_T
Attorney Signature
C~~ A%TD.P..t/y
Title
1, acting as attorney for
Texas, o ere y cert~ y that I have fully examined
e oregoing Gran an t e proceedings taken by said Sponsor relating thereto,
and find that the manner of acceptance and execution thereof, of the said Grant
by said Sponsor, is in accordance with the laws of the State of Texas.
Dated at _ xarr rn„nt~ Texas, this 11th day of October
19 of
,' `~~'~i
/ g
Witness Signature Attor ey Signature
~~ // / 99~
Title Title '
Page 30 of 11
10/06/95 13:56 TX/17X N0.1524 P.004
Part VII - Attorney General's Approval
This contract is approved as to form.
Attorney General of Texas
ray: /~~ i2-~~~~
Assis nt Attorney General
Date: ~l '~~ -~5
Part VIII - Execution by the State
STATE OF TEXAS
TEXAS DEPARTMENT OF~TRANSPORTATION
6y: ~~/,
Dnvid S. Fuiton, Dir~CtOr
Aviation Division
Texas Department of Transportation
Date: ./~c c / ~ ~ f ~'
Page 11 of 11

-.
CERTIFICATION OF PROJECT FUNDS
j, Dane L. Tune ~ Director of Finance
(Name) (Title)
do hereby certify that sufficient funds to meet the Sponsor's share of project
costs for TXDOT Contract Number 6XXFA023 as identified in the Airport Project
Participation Agreement for said project will be available in accordance with the
schedule shown below:
Sponsor Funds
Source
Amount
Date Available
City of Kerrville $39,000.00 October 1, 1995
Kerr County $39,000.00 October 1, 1995
The City of Kerrville, Texas has caused this to be duly executed in its name,
this ~_ day of October 19 95.
City of Kerrville. Texas
(Sponsor)

Title: Director of Finance

...
CERTIFICATION OF AIRPORT FUND
1, Dane L. Tune , Director of Finance
ame it e ,
do hereby certify that the City of xerrville Airport Fund has
ame o un
been established for the City of Kerrville, Texas and that all fees, charges,
rents, and money from any source derived from airport operations will be
deposited for the benefit of the city of xerrville Airport Fund and
(Name of Fund)
will not be diverted for other general revenue fund expenditures or any other
special fund of the City of Kerrville, Texas and that all expenditures from the
Fund will be solely for airport purposes.
Dated at Kerrville Texas, this 3 day of October 1995.
(City or County)
gy: CG-..p ~. • ~~~
Title: Director of Finance
10!08/95 19:04 $512 47.54510 T%DOT DIV AVIA .~+.
DESI6NNTION OF SPONSOR'S AUTHORIZED REPRESENTATIVE
@10o~~oos
I, rh ; ~ P TnhnSO~ M~y~ of the City of Kerrville,
Title
(Name)
and 1, Judge of
(Name) (Title)
the County of Kerr hereby designate Ja u nn?ar n; r of Pi,hl i c Selas
(Name, Tltle)
the Sponsor's authorized representarovalsoand diOsaC royals as re4u 6 ed on2behalf
shall have the authority to make app PP
of the Sponsor_
Duly executed by the:
Cit f Kerrvi le Texas
($ponsor)
By. ~
Title: Ma or
Date: Mr har l(1 1995
and the
County of Kerr Texas
(Sponsor) ~j~,,,
By: "' "~
Title: Judge
Date: nrtnhar 10 1Q95
10/06/95 13:56 TX/RX N0.1524 P.007
CTTY OF KERRVII,LE, TEXAS
RESOLUTION N0.95-120
A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AN AIRPORT
PROJECT PARTICIPATION AGREEMENT WITH THE TEXAS DEPARTMENT OF
TRANSPORTATION
WHEREAS, the City intends to make certain improvements to the Kemille Municipal
Airport; and
WHEREAS, the City has requested financial assistance from the Texas Department of
Transportation for these improvements; and
WHEREAS, the City intends to name the Texas Department of Transportation as its agent
for the purposes of applying for, receiving and disbursing all funds for these improvements and for
the administration of contracts necessary for the implementation of these improvements;
NOW, THEREFORE, BE IT RESOLVED, that the City hereby duects Mayor Chazles P.
Johnson to execute on behalf of the City, that certain agreement with the Texas Department of
Transportation, known as the AIRPORT PROJECT PARTICIPATION AGREEMENT, for TzDOT
Contract No. 6XXFA023.
PASSED AND APPROVED ON this the 26 th day of September, 1995
ATTEST:
Sheila L. Brand, City Clem
WALLACE, MOSTY, MACHANN,
JACKSON & WILLIAMS
By:G~~~~~~~ ~i~I-`rS
E. Dwaine Machann Date
RFS95.120
APPROVED AS TO FORM
10/08/85 19:09 $512 41^4510 T%DOT DIV AVIA -^+ ~ 008/008
DESIGNATION OF SPONSOR'S
CONSt1~TANT SELECTION CDMMIITEE
I~ ~ of the City of Kerrville and
ame I e
I, Robert Denson Jud e of the County of Kerr,
ame it e
hereby designate the following named individuals as the City of Kerrville and the
County of Kerr Consultant Selection committee for TxDOT Contract
Number 6XXFA023:
Name:
Title (if appropriate):
James Dower T)ir c or of Pvhlic Rprvicaa,Clty
ar ~ V tear nirarYnr n1= Planning City
Ruth Priest Chairman Airport Board
The Consultant Selection Committee has appointed Tames B Dower ,
to act as chairperson of the committee.
Ouly executed by the:
City of Ker ville. Texas
(SponsoY)
By:
Title: or
Date: October 10. 1995
and the
County of Kerr. Texas _
(Sponsor)
By:
Title:
Date; October 10. 1995
10/06/95 13:56 TX/RX N0.1529 P.008