ORDER N0. c5855 JOINT RESOI_Ul'ION AUTHORIZING EXECUTION OF GRANT AGREEMENT F'URSURNT TO THE TEXAS DEPARTMENT OF TRANSPORTRTIOhd'S ROUTINE RIRPORT MAINTENANCE PROGRAM FOR DRRINAGE WORT. AND PAVING MAINTENANCE On this the 13th day of May 1999, upon motion made by Commissianer• Griffin; =_econded ":;T.:,^:.i5~~.,-e:' 1111=am5, i:`ie Court unanimously approved by a vote of 4-0-0, that the County Judge be authorized to execute the .joint resolution r•egar~ding the Grant Rgreement. CITY OF KERRVILLE, TEXAS RESOLUTION NO. 99-167 COMMISSIONERS COURT OF KERR COUNTY, TEXAS RESOLUTION NO. JOINT RESOLUTION AUTHORIZING EXECUTION OF GRANT AGREEMENT PURSUANT TO THE TEXAS DEPARTMENT OF TRANSPORTATION'S ROUTINE AIRPORT MAINTENANCE PROGRAM FOR DRAINAGE WORK AND PAVING MAINTENANCE AT THE KERRVILLE/KERR COUNTY MUNICIPAL AIRPORT WHEREAS, the governing bodies of the City of Kerrville, Texas ("City") and Kerr County, Texas, ("County") joint owners of the Kerrville/Ken• County Municipal Airport ("the Airport"), desire to participate in the Texas Department of Transportation's ("TxDOT") Routine Airport Maintenance Program for the purpose of performing drainage improvements and property grading at the Airport; and WHEREAS, TxDOT has awazded a grant in the amount of $20,000.00 pursuant to the above described program subject to the execution of a grant agreement; and WHEREAS, the Airport Manager and the City's Director of Finance have identified funds in the Airport Fund which City and County can make available for the necessary local match of approximately $20,000.00; and WHEREAS, the City Council of the City of Kerrville, Texas, and the Commissioners Court of Kerr County, Texas, find it to be in the public interest to execute the grant agreement offered by TxDOT; NOW, THEREFORE, BE IT RESOLVED BY THE CI"CY COUNCIL OF THE CITY OF KERRVILLE, KERR COUNTY, TEXAS AND THE COMMISSIONERS COURT OF KERR COUNTY, TEXAS: SECTION ONE. That the Mayor and City Clerk, acting on behalf of the City of Kerrville, Texas, and the County Judge and County Clerk, acting on behalf of the County of Kerr, Texas, aze hereby authorized to execute and attest, as appropriate, a contract with the State of Texas, acting by and through the Texas Department of Transportation, related to grant funds from the Routine Airport Maintenance Program, the provisions of which contract (being TxDOT Contract CSJ No.: M915KERVL) shall be substantially as set forth in Exhibit "A", attached hereto and incorporated herein by reference. SECTION TWO. That the Mayor, County Judge, City Manager, Airport Manager, City Attorney, and County Attorney aze hereby authorized to execute such additional documents as may be reasonably required by TxDOT in order to comply with the provisions of the above described contract. SECTION THREE. That funds in the amount of $20,000.00, which are currently allocated to City Budget Account No. 47-800-513, aze hereby identified and dedicated as the City and County local match for the project described in the above described agreement. PASSED AND APPROVED BY THE CITY COUN OF THE CITY OF KERRVILLE, TEXAS, ON this the Z'7 day of , A.D., 1M999~ /rV ATTEST: ~; D~ ,~ .-s~~4D Sheila L. Brand, City Clerk APPROVED AS TO FORM: evin B. Laughlin, ty Attorney Ben R.~L,ow, Mayor PASSED .4ND APPROVED BY THE COMMISSIONERS COURT OF KERR COUNTY, TEXAS, ON this the 1~(day of , A.D., 1999. ATTEST: J ett Pieper, County Cl k `,Unomey3W WPDOCSWIRPORTRESAirpon Rojm Penicipnion Agrmnrnl 1999.wpE ~^ !~ Frederick L. Henneke County Judge 2 TEXAS DEPARTMENT OF TRANSPORTATION GRANT AGREEMENT (State Assisted Airport Development Grant) TxDOT CSJ No.: OOI SKEANE TxDOT, Contract No.: OX3~A023 TxDOT Project No.: AP Kerrville 3 Part I -Identification of the Project TO: The City of Kerrville and County of Kerr, Texas FROM: The State of Texas, acting through the Texas Department of Transportation This Agreement 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 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 V.T.C.A., Transportation Code, Title 3, Chapters 21-22, et seq.(Vernon and Vernon Supp.); and WHEREAS, the project is described as follows: engineering/design and construction to install medium intensity runway light/signage for Runway 20; install precision approach path indicator-2 Runway 2-20; displace threshold Runway 12 at the Kerrville Municipal/Louis Schreiner Field Airport; and WHEREAS, the Sponsor hereby applies for a grant for financial assistance for the project described above; and WHEREAS, the parties hereto, by this Agreement, 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 tz Part II -Offer of Financial Assistance It is estimated that approximately $350,000 (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 $35,000 (Amount B) and the financial assistance share of eligible project costs will be approximately $315,000 (Amount C). Financial assistance is subject to the availability of state funds. This grant should not be construed as block grant funds for the Sponsor, but as a grant for funding of the scope items as listed on page one of this agreement. It is the intent of the Agent to provide funding to complete the approved work items of this grant and not to amend the scope of work to include items outside of the current determined needs of this project. Scope of work may be amended as necessary to fulfill the unforeseen needs of this specific development project within the spirit of the approved scope, subject to the availability of state, federal, and/or local funds. 2. 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. Conversely, it is mutually understood and agreed that if, during the life ofthe project, the State determines that the grant amount exceeds the expected costs of the project scope, the grant amount can be reduced by amendment. Upon issuance of either of the aforementioned supplements, the maximum obligation of the State is adjusted to the amount specified. 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 Agreement, whereupon the State shall agree to void this Agreement upon the satisfaction of the following conditions: a. the Sponsor's request to the State to void the Agreement shall be in writing and dated: and b. 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 Agreement. Sponsor funds held by the State may be retained until this requirement is satisfied; and Page 2 of 12 c. failure on the part of the Sponsor to comply with the conditions of this pazagraph shall constitute a breach of this Agreement. 4. Upon satisfaction of the conditions specified in Paragraph II-3 above, the State shall declare this Agreement null and void, and this Agreement shall have no force 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. 5. 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-1. 6. Sponsor, by accepting this Agreement 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 to finance and operate the project. 7. Monthly grant agreement payments to the Sponsor may be authorized upon application to the State. Payments of the State's share of the allowable project costs will be made in proportion to the amount of the project satisfactorily completed at the time of the payment application. No more than ninety (90) percent of the total grant agreement will be paid prior to the completion of the project. The last ten (10) percent of the grant agreement will be paid only after the staff has inspected and approved the completed project. PART III -Sponsor Responsibilities 1. In accepting the Agreement, the Sponsor guarantees that: a. it will, in the operation of the facility, comply with all applicable state and federal laws, rules, regulations, procedures, covenants and assurances required by the State of Texas in connection with the Agreement; and b. the Airport or navigational facility which is the subject of this Agreement 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 Page 3 of t 2 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 ofthis Agreement; and d. 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 permit non-aeronautical use of airport facilities without prior approval of the State; and f. it shall not enter into any agreement 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 g. 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 or navigational facility constructed 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 and/or federal 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 Page a of t2 such a fund, shall be submitted to the State. Such fund may be an account as part of another fund, but must be accounted for in such a manner that all revenues, expenses, retained earnings, and balances in the account are discernable from other types of monies identified in the fund as a whole. 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 for any purposes other than operation of the airport. All expenditures from the Airport Fund shall be solely for airport purposes. Sponsor shall be ineligible for a 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 k. following completion of the project where airport lighting is part of a project, the Sponsor shall operate such lighting at least at low intensity from sunset to sunrise; and 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 m. 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 n. 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. o. all development of an airport constructed with program funds shall be consistent with the Airport Layout Plan approved by the State and maintained by the Sponsor. A reproducible copy of such plan, and all subsequent modifications thereto, shall be filed with the State for approval; and p. begin construction on or before September 2000. Failure to do so will constitute just cause for termination of the obligations of the State of Texas hereunder by the Page 5 of 12 State, unless at the Sponsor's request, the State grants additional time in writing. q. Carry out and complete the project without undue delay and in accordance with the plans and specifications which are submitted to and approved by the staff. The State has the option to withhold the payment of any State funds unless the plans and specifications have been completed and approved by the State. r. Make every reasonable attempt to complete the project on or before September 2001 . 2. 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 for a 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. 3. The Sponsor, to the extent of its legal authority to do so, shall save harmless the State, the State's agents, employees or contractors from all claims and liability due to activities of the Sponsor, the Sponsor's agents or employees performed under this agreement. The Sponsor, to the extent of its legal authority to do so, shall also save harmless the State, the State's agents, employees or contractors from any and all expenses, including attorney fees which might be incurred by the State in litigation or otherwise resisting said claim or liabilities which might be imposed on the State as the result of such activities by the Sponsor, the Sponsor's agents or employees. 4. The Sponsor's acceptance of this Offer and ratification and adoption of the Agreement incorporated herein shall be evidenced by execution of this instrument by the Sponsor, as hereinafter provided, and said Agreement 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 Agreement shall become effective upon execution of this instrument and shall remain in full force and effect for a period of at least 20 years. 5. The Sponsor and not the State shall, for all purposes, be the "Sponsor" of the project. Sponsor agrees to assume responsibility for operation of the facility in compliance with all applicable state and federal requirements including any statutes, rules, regulations, assurances, procedures or any other directives before, during and after the completion of this project. 6. The Sponsor by execution of this grant certifies that it has implemented, or will implement during this project, an effective airport pavement maintenance-management program and it assures that it will use such program during the period of this Agreement. It will provide upon written request such reports on pavement condition and pavement management Page 6 of 12 programs as the State determines may be useful. Failure to comply with this condition may make the Sponsor ineligible for future grants. 7. The Sponsor shall have on file with the State a curcent and approved Attorney's Certificate of Airport Property Interests and Exhibit A property map. 8. The Sponsor agrees to assume the responsibility to assure that all aspects of the grant and project are done in compliance with all applicable state and federal requirements including any statutes, rules, regulations, assurances, procedures or any other directives, except as otherwise specifically provided herein. 9. Responsibility of the State shall include, if appropriate, but not be limited to: a. certification of the consultant selection procedures; and b. certification of the construction contractor selection procedures; and approval of costs for construction prior to contract being executed; and c. receive, review, approve and process Sponsor's reimbursement requests for approved services and materials supplied in accordance with approved contracts, no more than once a month; and d. review of project plans, specifications and construction; coordinate and conduct progress and final inspections; and e. review and approve record drawings. PART IV -Recitals 1. This Agreement 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. 2. This Agreement is subject to the applicable provisions of the V.T.C.A. Transportation Code, Title 3, Chapters 21-22, 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 Agreement or with the aforementioned rules and statutes shall be considered a breach of this 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 Page 7 of 12 this Agreement. 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 Agreement, the State, may pursue any of the following remedies: (1) require a refund of any financial assistance money expended pursuant to the Agreement herein, (2) deny Sponsor's future requests for aid, (3) request the Attorney General to bring suit seeking reimbursement of any finanbial assistance money expended on the project pursuant to the Agreement 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 Agreement 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 Agreement, or for enforcement of any of the provisions of this Agreement, is specifically set by Agreement of the parties hereto in Travis County, Texas. 3. The State reserves the right to amend or withdraw this Agreement 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. 4. This Agreement 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. 5. 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 maybe applied. Page 8 of 12 Part V -Acceptance of the Sponsor The City of Kemille and County of Ken, Texas does hereby ratify and adopt all statements, representations, warranties, covenants and agreements constituting the described project and incorporated materials refereed to in the foregoing Agreement, and does hereby accept the Offer, and by such acceptance agrees to all of the terms and conditions of the Agreement thereof. Executed this ;'~` y '~ ~:, da of CC ~fL'%Za , 19 `I~~ .~ ~~e-_ Witness Signature City of Kemille and County of Kerc Texas Sponsor ~n~~ Signature (~7ti (.1EV'h- City Mananger Witness Title Title Certificate of Attorney I Kevin B. Laughlin acting as attorney for city of Kerrville Texas, do hereby certify that I have fully examined the foregoing Agreement and the proceedings taken by said Sponsor relating thereto, and find that the manner of acceptance and execution thereof, of the said Agreement by said Sponsor, is in accordance with the laws of the State of Texas. Dated at Kerrville Texas, this /Z ~ day of y1>r ~~r ,jam/~ , 19 ~i ~A ,/~\ .~ ~; Witness Signature Attorney's Sign ure `- City Attorney Witness Title Title Page 9 of 12 Part VII -Execution by the State STATE OF TEXAS DEPARTMENT OF TRANSPORTATION By: Dt~vitl S. Fulton, Director Aviation Division Texas Department of Transportation Date:_ / '~ ~/ ~~p S Page 10 of 12 CERTIFICATION OF PROJECT FUNDS The City of Kerrville and County of Kerr does hereby certify that sufficient funds to meet the Sponsor's share of project costs as identified in the Airport Project Participation Agreement for said project. SPONSOR FUNDS Source Amount FY 1999/2000 City of Kerrville Budget $35,000 The City of Kerrville and County of Kerr has caused this to be duly executed in its name, this ~~~ day of ~l e ta62.~ , 19_~L. City of Kerrville and County of Kerr_ Texas (Sponsor) ~7, , City Manager Page t t of t2 CERTIFICATION OF AIRPORT FUND The City ofKemille and County of Kerr does hereby certify that the Airport Fund Airport (Name of Fund) Fund has been established for the City of Kerrville and County of Kerr, and that all fees, charges, rents, and money from any source derived from airport operations will be deposited for the benefit of the Airport Fund and will not be diverted for other general revenue fund expenditures or any other special fund of the City of Kerrville and County of Kerr and that all expenditures from the Fund will be solely for airport purposes. Such fund may be an account as part of another fund, but must be accounted for in such a manner that all reveriues, expenses, retained earnings, and balances in the account are discernible from other types of moneys identified in the fund as a whole. The City ofKemille and County of Kerr has caused this to be duly executed in its name, this ~a~ day of ~c.tolx~ , 19 °lGJ City of Kerrville and County of Ken Texas (Sponsor) _~~j/, ~ >, By: ~ ~"~~ City Manager Page 12 of 12 TEXAS DEPARTMENT OF TRANSPORTATION GRANT FOR ROUTINE AIRPORT MAINTENANCE PROGRAM (State Assisted Airport Routine Maintenance) TxDOT PROJECT No.: AM RAMP9ICERVL TxDOT CSJ No.: M915ICERVL Part I -Identification of the Project TO: The City of Kemille and County of Ken, Texas 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 of City of Kerrville and County of Kerr, Texas, (hereinafter referred to as the "Sponsor"). WITNESSETH: WHEREAS, the Sponsor desires to sponsor a project for the routine maintenance of a public aviation facility, known or to be designated as the AIRPORT under the Transportation Code, Chapter 22; acid WHEREAS, the project is described as airport maintenance at the Kerrville Municipal Airport; and WHEREAS, the Sponsor hereby applies for a grant for financial assistance; 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: AVN4301.DOC (9/98) Page 1 of 13 Part II -Offer of Financial Assistance 1. For the purposes of this Grant, the annual routine maintenance project cost, Amount A, is estimated as found on Attachment A, Scope of Services, and as found on amendments thereto, all being attached hereto and made a part of this Grant. State financial assistance granted herein will be used solely and exclusively for airport maintenance and other incidental items as approved by the State. Actual work to be performed under this agreement is found on Attachment A, Scope of Services. State financial assistance, Amount B, will be.for fifty percent (50%) of the eligible project costs for this project or $20,000.00, which ever is less, per fiscal yeaz and subject to availability of state appropriations. The Sponsor may request the State to provide mowing services, such services to be provided at the discretion of the State. However, mowing services will not be eligible for state financial assistance. Sponsor will be responsible for 100% of costs of any mowing services. Scope of Services, Attachment A, of this Grant, may be amended, subject to availability of state funds, to include additional approved airport maintenance work. Scope amendments require submittal of an Amended Scope of Services, Attachment A. Services will not be accomplished by the State until receipt of Sponsor's share of project costs. 2. The State shall determine fair and eligible project costs for work scope. Sponsor's share of estimated project costs, Amount C, shall be as found on Attachment A and any amendments thereto. It is mutually understood and agreed that if, during the term of this agreement, the State determines that there is an overrun in the estimated annual routine maintenance costs, the State may increase the grant to cover the amount of overrun within the aforesaid percentages and subject to the maximum amount of state funding as found in Part II, Item 1, above. The State will not authorize expenditures in excess of the dollar amounts identified in this Agreement and any amendments hereto, without the consent of the Sponsor. 3. 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 to finance the project. Upon execution of this Agreement and written demand by the State, the Sponsor's financial obligation (Amount C) shall be due in cash and payable in full to the State. State Page 2 of 13 AVN4301.DOC (9/98) may request the Sponsor's financial obligation in partial payments. 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 V-3 hereof. Likewise, should the State be unwilling or unable to pay its obligation in a timely manner, the failure to pay shall be considered a breach and the Sponsor may exercise any rights and remedies it has at law or equity. The State shall reimburse or credit the Sponsor, at the financial closure of the project, any excess funds provided by the Sponsor which exceed Sponsor's share (Amount C). 4. 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 B) as heretofore stated in Paragraph II-1. 5. Scope of Services may be accomplished by State contracts or through local contracts of the Sponsor as determined appropriate by the State. All local contracts must be approved by the State for scope and reasonable cost. Reimbursement requests for local contracts shall be submitted on forms provided by the State and payment shall be made for no more than 50% of allowable charges, less 10% retainage. Retainage will be released upon final acceptance by the State. The State will not participate in funding for force account work conducted by the Sponsor. 6. This Grant shall terminate upon completion of the scope of services. The term of this grant maybe extended by the execution of an Amendment to the Agreement. Part III -Sponsor Responsibilities 1. In accepting this Grant, the Sponsor guarantees that: a. it will, in the operation of the facility, comply with all applicable state and federal laws, rules, regulations, procedures, covenants and assurances required by the State in connection with this 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 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 Page 3 of 13 AVN4301.DOC (9/98) adequate public access during the period of this Grant; and d. 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 agreement 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 shah not permit non-aeronautical use of airport facilities without prior approval of the State; and g. the Sponsor shall submit to the State annual statements of airport revenues and expenses when requested; and h. all fees collected for the use of the airport shall be reasonable and nondiscriminatory. The proceeds from such fees shall be used solely for the development, operation and maintenance of the airport or navigational facility; and i. 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. Such fund may be an account as part of another fund, but must be accounted for in such a manner that all revenues, expenses, retained earnings, and balances in the account are discernible from other types of moneys identified in the fund as a whole. 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 for a 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 j. following completion of the project where airport lighting is part of a project, the Sponsor shall operate such lighting at least at low intensity from sunset to sunrise; and k. insofar as it is reasonable and within its power, Sponsor shall adopt and enforce Page 4 of 13 AVN6301.DOC (9/98) 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 hazdship 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. 2. The Sponsor, to the extent of its legal authority to do so, shall save harmless the State, the State's agents, employees or contractors from all claims and liability due to activities of the Sponsor, the Sponsor's agents or employees performed under this agreement. The Sponsor, to the extent of its legal authority to do so, shall also save harmless the State, the State's agents, employees or contractors from any and all expenses, including attorney fees which might be incurred by the State in litigation or otherwise resisting said claim or liabilities which might be imposed on the State as the result of such activities by the Sponsor, the Sponsor's agents or employees. 3. The Sponsor's acceptance of this Offer and ratification and adoption of this Grant incorporated herein shall be 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. 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. 4. Upon entering into this Grant, 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 disapproval's, and coordinate schedule for work items as required on behalf of the Sponsor. 5. Sponsor shall request reimbursement of eligible project costs on forms provided by the State Reimbursement Request will be submitted no more than once a month. PART IV -Nomination of the Agent I. 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 incurced. Page 5 of 13 AVN4301.DOC (9/98) 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; b. 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, and any service provider the State shall issue a written order which shall prevail and be controlling; c. enter into contracts as necessary for execution of scope of services; d. receive, review, approve and pay invoices and payment requests for services and materials supplied in accordance with the State approved contracts; e. obtain an audit as maybe required by state regulations; f. reimburse sponsor for approved contract maintenance costs no more than once a month. PART V -Recitals 1. 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. 2. It is the intent of this grant to not supplant local funds normally utilized for airport maintenance, and that any state financial assistance offered under this grant be in addition to those local funds normally dedicated for airport maintenance. 3. This Grant is subject to the applicable provisions of the Transportation Code, Chapters 21 and 22, 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 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 the Sponsor is unwilling and/or unable to comply with any of the terms of this Grant, the State, may pursue any of the following Page 6 of 13 AVN4301.DOC (9/98) remedies: (1) require a refund of any financial assistance money expended pursuant to this 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 this 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. 4. 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. 5. 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. 6. All commitments by the Sponsor and the State hcreunder are subject to constitutional and statutory limitations and restrictions binding upon the Sponsor and the State (including Sections 5 and 7 of Article 11 of the Texas Constitution, if applicable) and to the availability of funds which lawfully may be applied. 7. This grant is subject to approval as to form by the Attorney General of the State of Texas. Page 7 of 13 AVN4301.DOC (9/98) Part VI -Acceptances Sponsor The City of Kerrville, 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 ,~ 7 day of G,,, ~, ~ , 1999. Witness Signature City Clerk Witness Title Certificate of Attorney I, _ xevin s. LanQhlin ,acting as attorney for The city of xerrviile ,Texas, do hereby certify that I have fully examined the foregoing Grant and the 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 xerrville ,Texas, this z~th day of April 1999. ~/ , Witness Signature Attorney's Signature , Citv Clerk City Attorney Witness Title Title Page 8 of 13 AVN4301.DOC (9/98) Sponsor Title Acceptances Sponsor The County of Kerr, Texas, does hereby ratify and adopt al( 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 1999. County of Kerr. Texas Sponsor Cam- /1J1 p ~~e~d~~- r Witness Signature ponsor Signature Kerr County Clerk Kerr County Judge Witness Title Sponsor Title Certificate of Attorney I David Motley ,acting as attorney for county of xerr Texas, do hereby certify that I have fully examined the foregoing Grant and the 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 Kerrville ,Texas, this 11tH day of May , 1999. ~, ,..~ l~- - Witness Signature ;,_ oFrtey's gnature Admin. Asst. Commissioner's Court Witness Title County Attorney Title Page 9 of 13 1tVN4301.DOC (9/98) Attorney General's Approval This contract is approved as to form. Attorney General of Texas ~~ , By: ~ ~,' Assist tot e A torney General Date:~~ ~/~% Acceptance of the State STATE OF TEXAS TEXAS DEPARTMENT OF TRANSPORTATION By: Devil 5. Fulton, Director Nriation Division Texas Department of Transportation Date: 5~~~ S ~S S' Page 10 of 13 AVN4301.DOC (9/98) Attachment A Scope of Services TxDOT CSJ No.:M915KERVL Accepted by: County of Kerr_ Texas Notes: (explanations of any specifications or variances as needed for above scope items) SDOnsor to procure services to HMAC taxiways to NW side Runway 2-20 crack seal taxiway 12/30: and clean out drainage ditch west of 12/30 State will reimburse 50% of actual costs not to exceed $20.000. Page 11 of 13 AVN4301.DOC (9/98) Date: April 27, 1999 Date: ''[a_~~, / ~ 9 DESIGNATION OF SPONSOR'S AUTHORIZED REPRESENTATIVE TxDOT CSJ Number: M915KERVL I, James B. Dower Director of Public Services (Name) (Title) ' with the City ofKenville and County of Kerr hereby designate Megan Caffall, Airport Manager (Name, Title) as the City of Kerrville and County of Kerr authorized representative, who shall have the authority to make approvals and disapprovals as required on behalf of the City of Kerrville and County of Kerr. (Sponsor) By. (-~ . ~h~( Title: Mayor Date: April 27, 1999 DESIGNATED REPRESENTATIVE Mailing Address: Megan (affall Airport M^n^p r The City of Kerrville 800 Junction Hwy. Kerrville, Texas 78028 Telephone/Fax Number: FAX AVIi4301.DOC (9/96) (830) 792-8314 (830) 896-8793 Page 13 of 13 County of Kerr. Texas (Sponsor) B~~~~~~ Title: Kerr County Judge Date: f~_ll~./ 5 S 9 CERTIFICATION OF AIRPORT FUND TxDOT CSJ No.: M915KERVL City. of The City of Kerrville and County of Kerr does hereby certify that the xerrville Airport Fund (Name of Fund) has been established for the City of Kerrville and County of Kerr, and that all fees, charges, rents, and money from any source derived from airport operations will be deposited for the benefit of the Airport Fund and will not be diverted for other general revenue fund expenditures or any other special fund of the City of Kerrville and County of Kerr and that all expenditures from the Fund will be solely for airport purposes. Such fund may be an account as part of another fund, but must be accounted for in such a manner that all revenues, expenses, retained earnings, and balances in the account are discernible from other types of moneys identified in the fund as a whole. The City of Kerrville, Texas, has caused this to be duly executed in its name, this 27th day of _ April , 1999. The City of Kerrville Texas (Sponsor) By: '~~~ Title• Assistant City Manager The ounty of Kerr, Texas, has caused this to be duly executed in its name, this ~_ day of 1999. The County ofKerc Texas (Sponsor) Title: Kprr ('rnmYy T, dge Page 12 of 13 AVN4301.DOC (9/98)