ORDER NO.28737 Airport Management Contract Came to be heard this the 26`" day of July 2004 with a motion made by Commissioner Letz, Seconded by Commissioner Williams, the Court unanimously approved by a vote of 3-0-0 the Airport Management Contract ~~ , , ~~ COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: William H. Williams OFFICE: Commissioner, Pct. 2 Commissioner, Pct. 3 MEETING DATE: July 26, 2004 TIME PREFERRED: SUBJECT: (Please be specific). Consider, discuss and take appropriate action on "Airport Management Contract." EXECUTIVE SESSION REQUESTED: NAME OF PERSON(S) ADDRESSING THE COURT: Commissioner Williams, Commissioner Letz ESTIMATED LENGTH OF PRESENTATION: 15 Minutes IF PERSONNEL MATTER-NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: 5:00 P.M. previous Tuesday THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court meetings. Your cooperation is appreciated and contributes toward your request being addressed at the earliest opportunity. See Agenda Request Rule adopted by Commissioners Court. AIRPORT MANAGEMENT CONTRACT This Agreement is made by and entered into between the Kerrville/Kerr County Joint Airport Board (hereinafter "Board"), and the City of Kerrville (hereinafter "Contractor," "City," or "Owner" as context dictates) on the~(~~ay of , 2004. WHEREAS, the City of Kerrville and Kerr County (hereinafter "City" or "Count}', respectively, or jointly "Owners") jointly own the real property upon which is located the Kerrville/Kerr County Airport, sometimes referred to as Louis Schreiner Field ("Airport); and, WHEREAS, Owners have heretofore, by their actions, jointly managed said airport by virtue of Tex. Rev. Civ. Stat. Ann. Art 46d, Municipal Airport Act ("Act"), the statutory predecessor to Chapter 22 of the Transportation Code ("Code"); and WHEREAS, Owners have established the Board to oversee operations of the Airport by adoption of that certain Joint Action Agreement by and between the Owners executed concurrently with this Agreement; and WHEREAS, operation of the Airport requires the provision of certain day-to-day management services that the Board is not equipped to provide on its own; and WHEREAS, the Owners and the Board find that it is in the best interests of the citizens of the City and County for these various management services to be provided to the Board by Contractor pursuant to a written Agreement, and that such Agreement will result in a more efficient and higher quality provision of such services at a lower cost than such services could be provided for by the Board directly; and WHEREAS, the Owners and Board are in agreement that these services should be provided to the Board through an Agreement with the Contractor; NOW, THEREFORE, in consideration of the promises, covenants and agreements contained herein, the parties hereto mutually agree as follows: 1. Duration of Agreement: This Agreement shall be effective on the date it is fully executed by the parties hereto, and shall terminate on September 30, 2004. Thereafter, this Agreement shall automatically be renewed for additional successive 12-month periods with an effective date of Octoberl of each year, unless otherwise terminated as provided for herein. In no event, however, shall this Agreement be renewed for more than 5 successive years without being renegotiated, nor shall the scope of services be changed during any fiscal year except as part of the Owners' regular budget process, unless mutually agreed to in writing between the parties prior to such change being made. 2. Terms of Agreement: Contractor and Board hereby enter into this Agreement whereby Contractor will provide the following management services to the Board: AIRPORT MANAGEMENT CONTRACT Page 1 of 6 a. Airport Manager -Contractor shall employ one full-time individual as an Airport Manager (hereinafter "Manager"). This employee shall have the experience and training necessary to carry out the duties of management of the Airport in a professional workmanlike manner. The Manager shall be an employee of the Contractor subject to all policies thereof. However, his duties shall be solely directed on behalf of management of the Airport and he shall carry out such management in conformance with all applicable statutes, rules and ordinances, including Board duly adopted policies, procedures, rules and regulations. Contractor shall remain solely responsible for supervision and direction of the Manager. ii. The Board shall direct any issues or concerns regarding the Manager's performance to the Contractor's chief executive officer. b. Administrative Support -the Contractor will provide administrative support to the Airport Manager as the Contractor determines is necessary. c. Airport Facilities Maintenance - The following categories and types of maintenance shall be provided by Contractor pursuant to this Agreement: i. Weekly maintenance shall include: (1) airfield lighting checks and completion of replacement(s) and/or repairs as needed; (2) pilot controlled lighting inspections and completion of minor repairs; (3) runway and taxiway inspections and emergency repair; and (4) daily runway condition inspections to include for Foreign Object/Debris (FOD) inspections. ii. Monthly maintenance shall include: (1) provide calibration equipment for and certified personnel to complete maintenance on approach lighting (PAPI's & VASI's); (2) complete inspection and maintenance of the airfield safety area including grading in and around runways, taxiways and drainage areas; (3) inspection of runway, taxiways, aprons, ramps, and access roads with subsequent repairs completed as required which may include crack sealing, concrete patching/replacement, etc., including access roads to the FAA Remote Communication Facility, boundary access roads and the required access road to the Edmonds' property; and (4) Mowing/weed eating around lighting and signage as well as providing certified personnel for and completing herbicide/pesticide applications around fencing and airfield lighting, in addition to routine mowing provided by separate contract. iii. Routine services shall include: (1) providing continuous coverage for setup and operation of runway closure lighting signs as well as taxiway closures and performing daily inspections (conducted at least AIRPORT MANAGEMENT CONTRACT Page 2 of 6 twice per day) during operation of runway closure signage and emergency airfield maintenance activities; (2) Contractor will ensure services are coordinated with the FAA through their required communication procedures and coordination and/or reporting activities with Flight Services. Notice to Airmen (NOTAM's) will be generated and closed as required; (3) Contractor personnel will monitor aircraft frequencies and communicate as needed during all activities in the flight areas; (4) Contractor will provide vehicles and equipment used for airfield activities equipped with required lighting and radios for communications with aircraft and the Fixed Base Operator; (5) Contractor personnel will provide minor facility repairs to those facilities owned and operated by the Owners (i.e. T-hangers, terminal, gates, etc.); and (6) providing escort, required notices, and communications for outside contractors performing services on airport to include oversight of contractors performing repairs to leased facilities. d. Legal Services -the City's legal staff will be the legal advisor of and attorney for the Board, which representation will include review of documents, contracts, and other instruments as to form and legality, and conduct of legal research and, if requested, issuance of legal memoranda or opinions. In the provision of legal services by the City's legal staff, the legal staff shall provide such services only if the provision of legal services to the Board does not unreasonably impair the legal staffs' ability to provide legal services to the City. As such, in the event the legal staff determines that a legal or ethical conflict exists between the City and the Board, the Parties agree that the City's legal staff may continue to represent the City on such matter notwithstanding such conflict provided that the legal staff has made reasonable disclosure of the conflict to the Board. Notwithstanding this paragraph, the Board shall at all times retain the right to hire counsel of its own choice at Board expense. e. Financial Services -All necessary financial services to include bookkeeping, accounts payable and receivable, collections, budget development, debt management, financial reporting and auditing, unless specifically agreed upon otherwise by written contract or other agreement between the parties hereto. f. Engineering Services -All necessary engineering services to include professional engineers and engineering technicians required for the maintenance, marketing and development of the Airport property and its infrastructure. This does not include design services related to and otherwise funded for grant projects. g. Purchasing -Provide services related to conforming with the competitive bidding statues including notice, development of Requests for Proposals (RFP's) and Requests for Qualifications (RFQ's), advertising, publication, bidding and tabulation and bidder qualification for all purchases and contracts. AIRPORT MANAGEMENT CONTRACT Page 3 of 6 h. Human Resources -Providing services related to the employment processing, evaluation and employment legal compliance auditing for grant compliance purposes as well as management of all benefits. i. Information Technology and Geographic Information System -Provide services related to development, implementation and maintenance of information technology infrastructure to include development and maintenance of data (parcel, aerial, utilities, etc.) required to support ongoing and future airport projects as well for use in FAA and TXDOT Aviation compliance measures. j. Grant Management Services -All grant management services not otherwise covered by the foregoing provisions shall be provided by Contractor. k. Contractual Relationship -This Agreement creates only a contractor relationship with the Board and in no way creates an employment relationship between any members of Contractor's staff and the Board or the Owners. 1. Property Management -The Manager shall annually submit a list of proposed improved and unimproved land lease rates, fuel flowage fees, T-hanger lease rates, storage facility rates, and other lease rates and changes to the Board during the budget development process for approval as a Consolidated Fee Schedule (CFS), which shall become the approved fee schedule for that budget year. Once the CFS has been approved by the Owners, the Manager is authorized to enter into leases and rental agreements for use of the Airport on behalf of the Board without prior approval of each agreement by the Board, so long as such agreements utilize the fee structure as set out in the approved CFS and the Aviation Master Plan for the Airport. m. Property, Casualty, and Premises Liability Insurance -Contractor shall arrange for the purchase and maintenance of property, casualty and premises liability insurance coverage for the Airport property from budgeted funds, in an amount set annually by agreement of the Owners. 3. Compensation: Contractor shall provide the foregoing services to the Board on a lump sum basis at a rate or for a cost agreed upon between all the parties prior to such services being rendered: a. Initial Compensation -The initial compensation shall be established as evidenced in Exhibit "A" to this Agreement. b. Adjustments to Compensation -Contractor shall be responsible to provide to the Board documentation of requested adjustments to the compensation in a timely manner for consideration during the Board's budget development process. Adjustments may only be requested and/or approved once per fiscal year, which shall be October 1 through September 30 of each year. AIIZPORT MANAGEMENT CONTRACT Page 4 of 6 c. Management Contract Costs Are Part of Budget -Such costs shall become part of the operational costs of the Board, which costs shall be accounted for in the Board's budget, and which costs that are not otherwise funded by airport revenues shall be borne equally between the Owners. 4. Insurance: The parties agree that all activities undertaken by Owners, Contractor and Board Members pursuant to this Agreement are activities that are part of their duties as public officials and/or employees, and that no additional liability insurance coverage is necessary hereunder for their activities on behalf of the Board or Owners. Contractor agrees to purchase and maintain necessary and appropriate property, casualty, and premises liability insurance coverage for its activities as agreed upon by Owners during the budget process. 5. Termination: This Agreement may be terminated during the contract term by either Party for any reason upon 90 days' written notice, delivered to the other party at the address listed herein; however, termination during the contract term will not serve to diminish the terminating party's financial obligations for the remainder of that year's contract term. 6. Notices: Any notice required or permitted to be given hereunder or under the laws of this state shall be given in writing and may be given via the United States Postal Service, or commercial courier service, addressed to the applicable party at the address set forth below: Board: Joint Airport Board Attention: Board Chairman Kerrville, Texas 78028 City/Contractor: City of Kerrville Attention: City Manager 800 Junction Highway Kerrville, Texas 78028 County: Kerr County, Texas Attention: County Judge Kerr County Courthouse 700 Main Street Kerrville, Texas 78028 7. Approval of Agreement: This interlocal Agreement must be approved by the governing bodies of City and County in accordance with Texas law, and will become effective only after approval by the Board. The effective date of this Agreement shall be the date that all necessary approvals have been obtained and the Agreement has been signed by all parties. This Agreement may be executed in multiple counterparts, each of which constitutes an original. AIRPORT MANAGEMENT CONTRACT Page 5 of 6 - IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be legally executed on the dates indicated below. CITY OF KERRVILLE CONTRACTOR By: ~ - Stephe .Fine, Mayor Date: _ ~u~, ~c,S~' ~ Cv ~~ KERRVII.LE/KERR COUNTY JOINT A TT Tl1TT T/'1 A TT ATTEST: Brenda G. Craig, Ci Clerk P O ED S TO ORM: c Michael C. Hayes, C Attorney THE STATE OF TEXAS § COUNTY OF KERB § This instrument was acknowledged before me on this ~~ day of 2004 by, ~,~A' !k u i ~ Joint Airport Board, for the JOIN AID-QI~', behalf of said BOARD. ~,,~~",~;_ PATRICIA A. REINHAR7 ,+i`.: ~ "++`! COMM;S8IGN EXPIRES ~( .~~,~ ~ ~`~- .`- Aprif24,2007 --~~~~.:~.~,~~,~ Notary Public, State of Texas THE STATE OF TEXAS COUNTY OF KERR This instrument was acknowledged ~~Lt~-CGA-'lam , 2004 by STEPHEN P. TEXAS, on behalf of said CITY OF KERRVILLE -~~'Y `'~:: PATRICIA A. RE{NHART ='•' "` MY C~MMiSSION EXPIRES •"~;g,~ ;~~' April 24, 2007 FI:~LegaMIRPORT\CONTRACT1Ai~port Management Contract -Final - 072804.doc before me on this p~CO ~~ day of FINE, Mayor of the CITY OF KERRVILLE, . TEXAS. .- +~ Notary Public, State of Texas AIRPORT MANAGEMENT CONTRACT Page 6 of 6 Date: I`Fuc, cc.sF a.~ o2[~~f