ORDER NO. 30959 CLARIFICATION OF INTERLOCAL AGREEMENT FOR CONTINUED EXISTENCE OF JOINT AIRPORT BOARD Came to be heard this the 25th day of August, 2008, with a motion made by Commissioner Letz, seconded by Commissioner Williams. The Court unanimously approved by a vote of 4-0-0 to: Approve the Interlocal Agreement for the Continued Existence of a Joint Airport Board to Provide Management of Kerrville/Kerr County Airport, and authorize the County Judge to sign same, and return it to the City with the clarification that it is done with our understanding that the Airport Board not be required so long as they stay within the total amount of the budget, to obtain approval from the City or the County if they need to move items around in their budget, and that that percentages are correct on maintenance/operation for the airport; the actual number is not necessarily correct, but would be based on the actual budget that is approved, and subject to approval in our respective budgets. 1 ~~ 3o9s~ COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND TEN (10) COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT MADE BY: Jonathan Letz MEETING DATE: August 25, 2008 TIME PREFERRED: SUBJECT: Consider, discuss and take appropriate action on clarifying a budget item on the "Interlocal Agreement for the Continued Existence of a Joint Airport Board to Provide Management of Kerrville/Kerr County Airport". EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Comm. Letz, Pct. 3 ESTIMATED LENGTH OF PRESENTATION: 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: THIS REQUEST RECEIVED BY: THIS RQUEST RECEIVED ON: OFFICE: County Commissioners 5:00 PM previous Tuesday @ .M. 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 will be appreciated and contribute towards your request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. COUNTY JUDCE PAT TINLEY COMMISSIONERS COURT H.A. `BUSTER" BALDWIN, PCT. I WILLIAM H. WILLIAMS, PCT. 2 .TONATHAN LETZ, PCT. 3 BRUCE OEHLER, PCT. 4 August 28, 2008 Mr. Paul Hofmann City Manager City of Kerrville 800 Junction Hwy Kerrville, TX 78028 PEE D.F.` J ~~~ ~ w , ~~~ ~,x ~~T I' `~ . ~ ~/ c S o~°_l ~e THE COUNTY COURT OF KERB COUNTY, TEXAS 700 Main, Kerrville, Texas 78028 Tel: (830) 792-2211 Fax: (830) 792-2218 E-mail: commissioners@co.kerr.tx.us RE: Interlocal Agreement for the Continued Existence of a Joint Airport Board to Provide Management of Kerrville/Kerr County Airport Dear Mr. Hofmann: CLERK JANNETT PIEPER COURT COORDINATOR JODY GRINSTEAD On the 22°d day of August, 2008 an executed original of the above referenced document was forwarded to you. While such agreement may not specifically so provide, the approval of same by Commissioners' Court was with the following understandings: 1. Under item 4 Board Budget, the Airport Board does not need the approval from City Council or Commissioners' Court for budget amendments within the Airport Board budget so long as the total amount of the Board budget as adopted by Commissioners' Court and City Council is not exceeded. 2. Under Item 5 County and City Funding, the percentages specified are correct, but the dollar amount expended will vary from year to year. If you believe the agreement needs further clarification, or if the foregoing does not conform to the understanding of Kerrville City Council, please advise me immediately. Yours very truly, r i ey Kerr County Judge #30931 INTERLOCAL AGREEMENT FOR THE CONTINUED EXISTENCE OF A JOINT AIRPORT BOARD TO PROVIDE MANAGEMENT OF KERRVILLE/I~RR COUNTY AIRPORT This Joint Action Agreement ("Agreement"), pursuant to Chapter 22 of the Texas Transportation Code, is entered into between Kerr County, Texas ("County") and the City of Kerrville, Texas ("City"), also referred to individually as "Party," or collectively as "Parties", on the ~~ day of ~ c. ,G ~- , 2008. WHEREAS, County and City jointly own the real property upon which is located the Kerrville/Kerr County Airport, sometimes referred to as Louis Schreiner Field ("Airport"); and, WHEREAS, County and City have previously, by their actions, jointly managed said Airport under Tex. Rev. Civ. Stat. Ann. Art 46d, Municipal Airport Act, the statutory predecessor to Chapter 22 of the Texas Transportation Code ("Code"); and WHEREAS, County and City find that it is in the best interests of the citizens of County and City for the Airport to continue to be managed by a Joint Airport Board pursuant to the Code; and WHEREAS, County and City are desirous of the continuous operation of the Airport in an effective manner; and WHEREAS, County and City now reconstitute and reorganize the Joint Airport Board to reflect the terms of this Agreement; NOW, THEREFORE, in consideration of these promises, covenants, and agreements, the Parties agree as follows: 1. Duration of Agreement: This Agreement shall be effective on the date it is fully executed by the Parties, and shall terminate on September 30, 2013. Thereafter, this Agreement shall automatically be renewed for five year terms, unless terminated as provided for below. 2. Proportionate Interest in Airport Property: Each Party owns an equal, undivided interest in the real property and assets located within the bounds of the Airport, more particularly described in Exhibit A, and as that property description may be expanded or developed, and in the buildings, improvements, and other fixtures located on the property. Title to all Airport property shall remain jointly vested in the County and City. 3. Joint Airport Board: The Parties affirm the creation and continued existence of the Joint Airport Board ("Board"). The Board is reconstituted and shall consist and operate as follows: (a) Membership. The Board shall be comprised of five members. The approval by each Party is required to constitute an appointment to the Board and current Board members shall be subject to reappointment by the Parties without Board recommendation as it is the intent of this Agreement to reconstitute and reorganize ,. the Board. Following the appointments and/or any reappointments to the Board, each Board member shall be assigned at random to hold one of the five places that comprise the Board. (b) Term of Office. Each Board member shall be appointed for a two year term and shall continue to serve in this capacity until their successor is appointed and is duly qualified. Upon the death of any member or should any member resign or for any reason become unable to serve, a replacement shall be appointed in the same manner as provided below to fill the vacancy for the unexpired term. Following the execution of this Agreement, the terms of those Board members who are serving in Places 1, 3, or 5 shall expire on June 1, 2010. The terms for those Board members appointed to Places 2 and 4 shall expire on June 1, 2011. (c) Oath and Bond. Following appointment, each Board member shall qualify for office by taking the required oath of office before the County Judge. (d) Appointment. The process for appointment by action of each Party shall be as designated below: 1) The Board shall recommend persons to the County and City for consideration of appointment. The Board shall submit the names of such persons to each Party at least 60 days prior to the end of the particular place's term. In the event that a candidate recommended by the Board is not appointed by either Party, the Board shall recommend an alternative candidate. In the event that this second candidate is not appointed by either Party, the Board shall select another candidate who will be automatically appointed to the Board without the approval of the Parties. 2) It is deemed desirable that all Board members possess and will contribute a balance of expertise in business, financial, aviation, or management training and experience. Appointments shall be made on or before June 1 of each year. 3) Replacement of members shall be in the same manner and under the same qualification as described above with such replacement being appointed to fulfill only that portion of the remaining term. 4) Any Board member may be removed by a majority vote of each Party, for any reason. In addition, the Board may recommend to the County and City that a Board member be removed. 5) Board members shall be eligible for reappointment. (e) Officers. The Board shall appoint a President and Vice President who shall be selected from the Board's membership. If the Board appoints a Treasurer, the Treasurer shall execute a bond in an amount determined by the Board, with a corporate surety authorized to do business in the state of Texas and conditioned upon Joint Action Agreement-Kerrville/Kerr County Airport Page 2 of 8 the faithful performance of the treasurer's duties. In addition, the Board shall appoint a secretary who shall record the minutes of the Board meetings. The term for each position shall be for two years. (f) Compensation. Service on the Board is without compensation. However, each Board member is entitled to reimbursement for necessary expenses incurred in the performance of his/her duties as a Board member, subject to a written Board policy regarding the reimbursement of expenses, which has been approved by each Party. (g) Authority, Powers and Duties. The Board shall have the following authority, powers, and duties: 1) The Board may exercise on behalf of the Parties any power possessed by either Party and those specifically provided by the Code, including the power to lease property and facilities, and to buy and sell goods as an incident to the operation of the Airport. However, the Board is not authorized to impose a property tax, sell bonds, or otherwise enter into other debt instruments, dispose of Airport property, or exercise the power of eminent domain without the prior written consent of each Party. 2) The Board, following the prior written consent of each Party, has the authority to apply for and to execute grant funding agreements. 3) The Board may improve, equip, maintain, operate, manage, regulate, protect, and police the Airport. 4) The Board may realign, alter, acquire, abandon, or close a portion of a roadway or alleyway without a showing of paramount importance if the portions to be realigned, altered, acquired, abandoned, or closed are in the geographical boundaries of the Airport at the time of or after the realignment, alteration, acquisition, abandonment, or closing. 5) The Board shall have the responsibility and be in charge of the property, improvements, .and other assets of the Airport and shall be in charge of the disbursement of Airport funds for Airport purposes. The Board shall also cause records to be kept of any and all revenues and disbursements. 6) Within 30 days following the execution of this Agreement and the appointment(s) and/or reappointments) of Board members by the Parties, the Board shall establish a fund to be maintained for the purpose of depositing all revenues of the Airport, including each Party's share of the operating costs. This fund shall be kept and managed by the Board and shall be established at a bank with a branch in Kerr County. Federal, state, or other contributions or loans and the revenue obtained from the operation of the Airport shall be deposited to the credit of the joint fund. Joint Action Agreement-Kerrville/Kerr County Airport Page 3 of 8 7) The Board shall have an audit of the financial affairs of the Board and its trr operation of the Airport conducted each year by an independent accountant and shall furnish the audit to each Party no later than December 1 of each year. 8) The Board shall ensure that all records regarding the operation of the Airport are maintained, retained, and made available for public review in accordance with the Texas Public Information Act. All records shall be maintained at the Airport. 9) The Board shall hire and employ an Airport Manager ("Manager") and such other employees as are necessary for the operation of the Airport. The Manager shall be hired as soon as possible after execution of this Agreement. 10) The Board, through its Manager and any other employees, shall be responsible for the day-to-day management of the Airport. Toward that end, the Board is authorized to enter into service contracts with other public or private entities. 11) The Board may adopt resolutions, rules, and orders for the operation of the Airport. 12) The Board may lease Airport property and may adopt fees and rental rates with respect to the use of Airport services or use of Airport property. Such fees and rates should be, to the extent possible, included within the Board Budget. 13) The Parties acknowledge that the Airport property is within the City's limits and is subject to the City's regulations and that land adjacent to the Airport but outside the City limits is subject to the adoption, administration, and enforcement by either a County or Joint Airport Zoning Board of airport hazard area and compatible land use zoning. However, the Board shall monitor and consider appropriate zoning for the Airport and the immediately surrounding areas whose use may impact Airport operations. 14) The Board shall adopt policies and procedures for the purchase of goods and services and for the accounting of the Airport's finances, each in accordance with state law. 15) The Board may insure itself, its contractors and subcontractors against liability arising from the operation of the Airport for damages to the person or property of others, workers' compensation, and officers' and employees' liability. The insurance may consist ofself-insurance and/or purchased insurance. 16) The Board shall comply with the Code and other state laws and local laws in all respects. (h) Meetings. The newly reconstituted Board shall meet within 15 days following the execution of this Agreement and the appointment(s) and/or reappointments) of Board Joint Action Agreement-Kerrville/Kerr County Airport Page 4 of 8 members by the Parties. Thereafter, the Board shall meet on dates and times as agreed upon by the Board, which schedule may be changed from time to time; however in no event shall the Board meet less frequently than once per calendar quarter. The President of the Board or any two Board members shall have the authority to call a meeting. All such meetings of the Board shall be held in accordance with the Texas Open Meetings Act and three members of the Board shall constitute a quorum of the Board. The Board shall make its own rules of order, by- laws, set the time and place for regular meetings, and shall keep minutes of its meetings. (i) Fiscal. The Board shall observe a fiscal year that begins each October 1 and ends September 30. (j) Reporting. The Board shall provide quarterly written reports to each Party regarding the operations of the Airport and its finances. (k) Liti ag tion. The Board shall not enter into litigation of any kind without prior approval from the Parties. However, the Board may provide an appropriate response to a lawsuit or claim filed against it in an effort to protect its rights and defenses prior to any approval from the Parties. 4. Board Budget: The Board is responsible for the operations and needs of the Airport and shall develop and approve a budget for Airport operations ("Board Budget"). The Board Budget shall consist of the following parts: 1) maintenance and operations; and 2) capital improvements. For purposes of this Agreement, "capital improvements" are defined as a project that will result in a physical object with a value of $25,000 or more. The Board shall submit and present the Board Budget to the County and the City for approval. Should either Party not approve the Board Budget, the previous year's Board Budget shall be automatically adopted for the upcoming year. (a) Submission Required. The Board shall submit the Board Budget to both Parties not later than June 30`h of each year for Parties' consideration no later than September 30 of each year. (b) Content and Format. The Board Budget shall substantially conform to the format and line item content as specified and depicted in Exhibit B. (c) Excess Spending Prohibited. Without the prior written approval of each Party, the Board shall not spend nor incur obligations which at any time will exceed the total amount of the Board Budget adopted by the County and City for that fiscal year. (d) Airport Revenues. The Board shall only use revenues generated by operation of the Airport for Airport purposes. (e) Board Budget Calculation. The Board shall determine the Board Budget as follows: Joint Action Agreement-Kerrville/Kerr County Airport Page 5 of 8 (1) Total of all revenues, not including contributions from the Parties, less total expenses, which shall include all grant matches. (2) Where a negative sum occurs, the Board shall seek contributions from the Parties as provided below. 5. County and City Finding: To assure the objective of the continuation of efficient Airport operations, each Party is obligated to the other Party to contribute funds as follows: (a) Maintenance and Operations for Fiscal Years 2009 throu 2011. Subject to the authority of each party to terminate the Agreement at the end of any fiscal year, the County and City shall fund all the costs related to the maintenance and operations part of the Board Budget over the next three fiscal years (2009, 2010, 2011) in the following percentages: FY 09 F'Y 10 F'Y 11 County 50% [*$187,000] 75% 100% City 50% [*$187,000] 25% 0% *The Parties have determined the amount of the FY 2009 Board Budget and these values reflect that amount. (b) County's Responsibility for Maintenance and Operations Costs for Fiscal Year 2012 and beyond. The County shall continue to fund all of the costs related to the maintenance and operations part of the Board Budget for Fiscal Year 2012 and beyond. The City shall not fund any of the maintenance and operations part of the Board Budget and will continue to maintain its 50% ownership interest in the Airport. (c) Capital Improvements. The County and City shall be equally responsible for expenses directly resulting from the part of the Board Budget regarding capital improvements. (d) Schedule of Payments. Pursuant to the Board Budget and the amount of each Party's contributions, each Party shall forward 12 equal monthly payments to the Board in the amount of 1/12th of their total contribution on or before the 15th day of each month. 6. Amendment: This Agreement may only be amended by written agreement of the Parties. 7. Termination of Agreement Prior to Expiration: This Agreement may be terminated by either Party to become effective at the end of the current fiscal year. To effectuate the termination, the Party seeking termination must provide written notice to the other Party at least 90 days prior to the end of the fiscal year. Joint Action Agreement-Kerrville/Kerr County Airport Page 6 of 8 8. Notices: Any notice required or permitted to be given pursuant to this Agreement or under the laws of this state shall be given in writing and may be given via the United States Postal Service, certified mail, or commercial courier service, addressed to the applicable Party at the address set forth below: City: 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 Board: Joint Airport Board Attention: Airport Manager Kerrville/Kerr County Airport 1875 Airport Loop Road Kerrville, Texas 78028 9. Governing Law and Venue: This Agreement and all of the transactions contemplated herein shall be governed by and construed in accordance with the laws of the State of Texas. Venue for any cause of action shall be in a court of competent jurisdiction in Kerr County, Texas. 10. Severability: If any provision of this Agreement is invalid or unenforceable, this Agreement shall be considered severable as to such provision, and the remainder of this Agreement shall remain valid and binding as though such invalid or unenforceable provision was not included. 11. Captions: Section headings are inserted herein only as a matter of convenience and for reference, and in no way defines, limits, or describes the scope or intent to any provision. 12. Use of Language: Words of any gender used in this Agreement shall be held and construed to include any other gender, and words in the singular shall be held to include the plural, unless the context otherwise requires. 13. Entire Agreement: This Agreement embodies the entire agreement between the Parties, and supersedes all prior agreements and understandings, whether written or oral, and all contemporaneous oral agreements and understandings relating to the subject matter. This Agreement shall not be amended, discharged or extended, except by written instrument executed by the Parties. The Parties agree that no representations or warranties shall be binding upon either Party unless expressed in writing in the Agreement. Joint Action Agreement-Kerrville/Kerr County Airport Page 7 of 8 14. Multiple Counterparts: This Agreement maybe executed in multiple counterparts, each of which constitutes an original. IN WITNESS WHEREO ,the Pa -ties hereto have caused this Agreement to be legally executed this ! ~~l~day of , 2008. CITY OF KERRVILLE COUNTY OF KERR, TEXAS -, By: _ Eat Judge Todd A. Bock, Mayor ATTEST: ~~ Brenda G. Craig, Secretary APPROVED AS TO FORM: i C Michael C. Hayes, City Attorney ATTEST: ~ ' /-! Q J ett Piep r, County Cle k APPROVED AST FORM: merson, County Attorney T:~[.egaRAIRPORTWitport BoazdUoint Action Agreement 2008Uoint Action Agreement_081308 FINAL.doc Joint Action Agreement-Kerrville/Kerr County Airport Page 8 of 8 C s ,$~ 4 3t~ <~.. 1~t~~ i~ t ~s ~,( ~ie I ~~,1 _r~~• _-~ I 1 ,1 ~, ~ tl , ~ 1 e~ I ~ °_~ I 1 ~li ~--- --~~ O t • ~` ~~ Y W 1 ~~~ -~ <~ io 0 ~~ A -, C 0 z W J Z a 0 r 5 . s . a. a - a~ ~ _ _~ ~~ ~ ~ ~ ~ ~ ~ , ~~ ~ ¢ ~ ~ g_€g€y€_ yg ~ 7 ~ E ~~ c? ~ x ~ c ~ s i :° c Y PY Y Y P'o i8 3~ ~~ g ~ ~ ~d d d dd d d d~ dd t et . y d ~ ~ ~f ~ ~ f lf ~ 0 ~ ~~ _ [ ~ {{re~ eY ~ 3 ~ 3 J As .AY y E E y E ~~JJ R ~J~J F yy F yy ~E yy E g ~E F ~ s~ ]~ pp p p pp p p p 43 43 a 3 ; R S a ~5 F . aa :a 0 W U a .. 5 ~ r 4 1 ___ __..__ _~ 0 ~ t ~ ~ t a ~ i~~ ~ - - ~~u ~~~ ~~ ~'~ ~ I ~ 1 ra61 -~~ I I y~b~ ~d~3~~1~~}1~!l~d~3lii~ ~l~i 1 ~ II I ~~~ «eeeeseeeee©o®®®o©a©®® 1 ~ I J~ ` '~ t5 1 I I e e~~~ i} 1 I~ 1 REVENUES AIRPORT FUND INTERGOVERNMENTALREVENUE 47-6306 TXDOT-REIMBURSEMENT 47-6322 KERR COUNTY PROJECT MATCH 47-6323 KERR COUNTY T-HANGER 47-6347 KERR COUNTY MGT CONTRACT 47-6361 CITY -PROJECT MATCH 47-6362 INTEREST AND MISCELLANEOUS 47-6901 LEASES 47-6902 FUEL FLOW FEES 47-6903 TERMINAL LEASE 47-6904 T-HANGER LEASE 47-6905 VEHICLE RENT-SURCHARGE 47-6906 STORAGE RENTAL 47-6908 DAILY RENT T- HANGER 47-6911 INTEREST REVENUE 47-6989 MISCELLANEOUS REVENUE TRANSFERS IN 47-7001 TRANSFER -GENERAL 47-7040 TRANSFER IN 47-7070 TRANSFER IN EXPENSES PERSONNEL 47-800-001 SALARIES AND WAGES 47-800-002 OVERTIME 47-800-003 TEMPORARY EMPLOYEE 47-800-004 LONGIVITY 47-800-005 SOCIAL SECURITY 47-800-006 RETIREMENT 47-800-007 GROUP INSURANCE 47-800-008 WORKER'S COMPENSATION 47-800-010 PROFESSIONAL DEVELOPMENT 47-800-011 LOCAL MEETING EXPENSE SUPPLIES 47-800-101 OFFICE SUPPLIES 47-800-102 SMALL TOOLS & EQUIPMENT 47-800-103 MEDICAL AND CHEMICAL 47-800-105 FOOD SUPPLIES 47-800-106 JANITORIAL SUPPLIES 47-800-110 POSTAGE/UPS/FED-EX 47-800-111 COMPUTER UPGRADE 47-800-112 COMPUTER SOFTWARE 47-800-132 SOD. SEED. PLANTING MAINTENANCE 47-800-201 LAND 47-800-202 BUILDINGS AND STRUCTURES 47-800-205 OFFICE EQUIPMENT 47-800-206 INSTRUMENTS AND APPARATUS 47-800-207 STREETS 47-800-208 TRAFFIC CONTROL DEVICES 4?-800-209 TAXIWAYS!RUNWAYS 47-800-212 REPAIRS-NOT CITY GARAGE 47-800-214 RAMP GRANT MATCH SERVICES 47-800-301 PHONE SERVICE 47-800-302 LIGHT AND POWER 47-800-303 NATURAL GAS 47-800-304 WATER ~ SEWER 47-800-305 LEGAL SERVICE 47-800-306 SPECIAL SERVICES 47-800-307 INSURANCE 47-800-311 NETWORK SERVICES 47-800-313 HIRE OF EQUIPMENT 47-800-316 ADVERTISING 47-800-347 MANAGEMENT CONTRACT 47-800-348 OUTSOURCED SERVICES 47-800-350 OTHER EXPENSES 47-800-401 CERTIFICATES AND AWARDS 47-800-402 DUES AND SUBSCRIPTIONS 47-800-405 OTHER CHARGES 47-800-410 CONTINGENCY 47-800-430 DEPRECIATION EXPENSE 47-800-435 OTHER EXPENSE CAPITAL OUTLAY 47-800-501 LAND 47-800-502 BUILDING AND STRUCTURES 47-800-505 OFFICE EQUIPMENT 47-800-506 INSTRUMENTS AND APPRARTUS 47-800-508 TRAFFIC CONTROL DEVICES 47-800-510 WATER SYSTEM 47-800-513 GRANT MATCH 47-800-514 DRAINAGE IMPROVEMENTS 47-800-517 CITY T-HANGER 2001 TRANSFERS OUT 47-800-901 TRANSFER -GENERAL 47-800-902 TRANSFER OUT 47-800-928 TRANSFER OUT 47-800-940 TRANSFER OUT 47-800-942 TRANSFER OUT 47-800-970 TRANSFER OUT 47-800-974 TRANSFER OUT 47-800-975 TRANSFER OUT 47-800-990 TRANSFER -INSURANCE TERMINAL SUPPLIES 47-801-118 SIGN MATERIALS AND SUPPLIES SERVICES 47-801-301 PHONE SERVICE 47-801-302 LIGHT & POWER 47-801-303 PROPANE GAS 47-801-304 WATER & SEWER