2013-301oxDnvANCE rro. 2013-301
AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER, OR
HIS DESIGNEE, TO EXECUTE ON BEHALF OF THE CITY OF DENTON AN
ACCEPTANCE OF AN OFFER FROM THE TEXAS DEPARTMENT OF TRANSPORTATION
RELATING TO A GRANT FOR THE ROUTINE AIRPORT MAINTENANCE PROGRAM;
AUTHORIZING THE CITY MANAGER TO EXPEND FUNDS PROVIDED FOR 1N THE
GRANT PROGRAM; AND DECLARING AN EFFECTIVE DATE (TXDOT Project No.: AM
2014DNT0 AND CSJ No.: M1418DNT0).
WHEREAS, the City Manager recommends that the City accept an Agreement with the
Texas Department of Transportation ("TxDOT") providing a grant of $50,000 for the Routine
Airport Maintenance Program and requiring the City to provide $50,000 in matching funds; and
WHEREAS, the City Council deems the acceptance of this Agreement with TxDOT to be
in the public interest; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Manager of the City of Denton, or his designee, is hereby authorized
to execute on behalf of the City of Denton an acceptance of an offer from the Texas Department of
Transportation relating to a grant for Routine Airport Maintenance Program, a copy of such grant
being attached hereto and made a part hereof for all purposes (the "Grant Agreement").
SECTION 2. The City Manager is hereby authorized to expend such funds as are provided
for in the Grant Agreement and to take all actions necessary to implement the Grant Agreement,
SECTION 3. This ordinance shall become effective immediately upon its passage and
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approval.
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ATTEST:
JENNIFER WALTERS, CITY SECRETARY
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APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
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(State Assisted Airport Routine Maintenance)
TxDOT Project No.: AM 2014DNT0
TxDOT CSJ No.: M1418DNT0
Part I- Identification of the Project
TO: The City of Denton, Texas
FROM: The State of Texas, acting through the Texas Department of Transportation
This Grant is made between the Texas Department of Transportation, (hereinafter
referred to as the "State"), on behalf of the State of Texas, and the City of Denton, Texas,
(hereinafter referred to as the "Sponsor").
This Grant Agreement is entered into between the State and Sponsor shown above, under
the authority granted and in compliance with the provisions of the Transportation Code Chapter 21.
The project is for airport maintenance at the Denton Municipal Airport.
Part II - Offer of Financial Assistance
1. For the purpases of this Grant, the annual routine maintenance project cast, Arnaunt A, is
estimated as found on Attachment A, Scope of Services, attached hereto and made a part
af this grant agreement.
State financial assistance granted will be used solely and exclusively for airpart
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 iifty percent (50%) of the eligible project
costs for this project or $50,000.00, whichever is less, per fiscal year and subject to
availability of state appropriatians.
Scape 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.
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Only work items as described in Attachment A, Scope of Services of this Grant are
reimbursable under this grant.
Work shall be accomplished by August 31, 2014, unless otherwise approved by the State.
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.
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 the overrun within the above stated
percentages and subject to the maximum amount of state funding.
The State will not authorize expenditures in excess of the dollar amounts identified in this
Agreement and any amendments, 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. The Sponsor grants to the
State the right to audit any books and records of the Sponsor to verify expended funds.
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 may request the Sponsor's financial obligation in partial payments. Should the
Sponsor fail to pay their obligation, either in whole or in part, within 30 days of written
demand, the State may exercise its rights under Paragraph V-3. 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 by the State which
are in excess of the percentage of financial assistance (Amount B) as 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 locally contracted work must be
approved by the State for scope and reasonable cost. Reimbursement requests for locally
contracted work shall be submitted on forms provided by the State and shall include
copies of the invoices for materials or services. Payment shall be inade for no more than
50% of allowable charges.
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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.
Part III - Sponsor Responsibilities
1. In accepting this Grant, if applicable, 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 by the Sponsor 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
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 shall 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
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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. The 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
the 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. the Sponsor shall operate runway 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
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. Sections
241.001 et seq. (Vernon and Vernon Supp.). Sponsor shall also acquire and retain
aviation 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
subsequent approval of a grant or loan, adopted and passed an airport hazard
zoning ordinance or order approved by the State.
mowing services will not be eligible for state financial assistance. Sponsor will
be responsible for 100% of any mowing services.
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 claim or
liabilities which might be imposed on the State as the result of those 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 shall be
evidenced by execution of this Grant by the Sponsor. The 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.
09/O1/2014 Page 4 of l2
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 agrees to name an individual, as the Sponsor's
Authorized Representative, who shall be the State's contact with regard to this project.
The Representative shall receive all correspondence and documents associated with this
grant and shall make or shall acquire approvals and disapprovals for this grant as required
on behalf of the Sponsor, and coordinate schedule for work items as required.
5, By the acceptance of grant funds for the maintenance of eligible airport buildings, the
Sponsor certifies that the buildings are owned by the Sponsor. The buildings may be
leased but if the lease agreement specifies that the lessee is responsible for the upkeep
and repairs of the building no state funds shall be used for that purpose.
6. Sponsor shall request reimbursement of eligible project costs on forms provided by the
State. All reimbursement requests are required to include a copy of the invoices for the
materials or services. The reimbursement request will be submitted no more than once a
month.
7. The Sponsor's acceptance of this Agreement shall comprise a Grant Agreement, as
provided by the Transportation Code, Chapter 21, constituting the contractual obligations
and rights of the State of Texas and the Sponsor with respect to the accomplishment of
the airport maintenance and compliance with the assurances and conditions as provided.
Such Grant Agreement shall become effective upon the State's written Notice to Proceed
issued following execution of this agreement.
PART IV - Nomination of the Agent
The Sponsor designates the State as the party to receive and disburse all funds used, or to
be used, in payment of the costs of the project, or in reimbursement to either of the
parties 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 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. enter into contracts as necessary for execution af scope of services;
c. if State enters into a contract as Agent: exercise supervision and direction of the
project work as the State reasonably finds appropriate. Where there is an
09/O1/2014 Page 5 of 12
irreconcilable conflict or difference of opinion, judgment, order or direction
between the State and the Sponsor or any service provider, the State shall issue a
written order which shall prevail and be controlling;
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 may be required by state regulations; the State Auditor inay
conduct an audit or investigation of any entity receiving funds from TxDOT
directly under this contract or indirectly through a subcontract under this contract.
Acceptance of funds directly under this contract or indirectly through a
subcontract under this contract acts as acceptance of the authority of the State
Auditor, under the direction of the legislative audit committee, to conduct an audit
or investigation in connection with those funds. An entity that is the subject of an
audit or investigation must provide the state auditor with access to any
information the state auditor considers relevant to the investigation or audit.
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. Sections 241.001 et seq.
(Vernon and Vernon Supp.). Failure to comply with the terms of this Grant or with the
rules and statutes shall be considered a breach of this contract and will allow the State to
pursue the xemedies 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
remedies: (1) require a refund of any financial assistance money expended
pursuant to this Grant, (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, provided however, these
remedies shall not limit the State's authority to enforce its rules, regulations or
09/O 1/2014 Page 6 of i 2
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 in Travis County, Texas.
4. The State reserves the right to amend or withdraw this Grant at any time prior to
acceptance by the 5ponsor. 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 axe 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.
09/O1/2014 Page 7 of 12
Part VI - Acceptances
Sponsor
The City of Denton, Texas, does ratify and adopt all staternents, representations,
warranties, covenants, agreements, and all terms and conditions of this Grant.
Executed this day of _ , 20 (.
The Citv of I��;��i:���- Texas
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Sponsor Signature
City Manager
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Sponsor Title
Certificate of Attorney
I, ��� �, ��-��., acting as attorney for the City of Denton, Texas, do
certify that I have fully �,���a��i���:�1 the Grant and the proceedings taken by the Sponsor relating to
the acceptance of the Grant, and find that the manner of acceptance and execution of the Grant
by the Sponsor, is in accordance with the laws of the State of Texas.
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Dated at �.°�r` r„-»� , T�.��t�. C1��s ���� ��. cl�tv crf` ����,.���:�� ��` , 20�
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Witness Signature
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Witness Title
09/O1/2014 Page 8 of 12
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Acceptance of the State
Executed by and approved for the Texas Transportation Commission for the purpose and effect
of activating and/or carrying out the orders, established policies or work programs and grants
heretofore approved and authorized by the Texas Transportation Commission.
STATE OF TEXAS
TEXAS DEPARTMENT OF TR.ANSPORTATION
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By: �'°�.� � �
David S. Fulton, Director
Aviation Division
Texas Depa�ment of Transpo�tation
Date:_ �`c�' �'�"',����`
09/O1/2014 Page 9 of 12
Attachment A
Scope of Services
TxDOT CSJ No.: M1418DNT0
_ _ __
__ .__ _ _ _
Eli�ible;Scope Items; Estimated Costs State Share Sponsor Shane
Amount A Amount B Amount C
GENERAL MAINTENANCE $100,000.00 $50,000.00 $50,000.00
MISCELLANEOUS $0.00 $0.00 $0.00
_ _
SPECIAL PROJECT $0.00 $0.00 ' $0.00
SPECIAL PROJECT $0.00 $0.00 $0.00
_ _
SPECIAL PROJECT $0.00 $0.00 $0.00
._ _
Total $100,000.00 $50,000.00 $50,000.00 '
Accepted by: The Citv of Den1n�� __Texas
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Signature
Title: City Manager
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Notes: (explanations of any specifications or variances as needed for above scope items�
G�NERAL MAINTEN_AN(_'.F,; As needed. Snonsor mav c:c���tt•�c�� f�r services/burchase
n�����,ii�.lw� �'���• s•���itri�� �7z�i�z����ri���.e��i���E��•c���c.����a�t e�t_��i��t���r°l �a��vc�t7��r�t�. �i����t_, c-i�•�ia��
annroach aids. li�htin� svstems_ utilitv infrastructure. fencin�, herbicici�r'annlication, sponsor
cawr��c� ��aci �at�cary�:�c� [iz�l ���i�i���,.1������f-�, l���ilc��n��� �c�r°���is7r�i. L���ilclial �� ��t��i �e:c4«•i�y� � ��t�
��r�fessic�t��1 ���•vic.,�� f`c��° ������•�a���7��rz��1 c-��t7����i�����,�� ���a a1-c:�v�c� �aa�t���:cC de�i�a?_S��.c~i��� �����ts ic�
be determined and added by amendment.
Only work items as described in Attachment A, Scope of Services of this Grant are
reimbursable under this grant.
09/01/2014 Page 10 of 12
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TxDOT CSJ No.: M1418DNT0
The City of Denton does certify that an Airport Fund has been established for the Sponsor, 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 Sponsor and that all expenditures from the
Fund will be solely for airport purposes. The 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 Citv of Denton. Texas
(Sponsor)
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Title:m� � � � � �� . �
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State of Texas Single Audit Requirements
I, Patrick Carreno , do certify that the City of Denton will comply with all
(Designated Representative)
requirements of the State of Texas Single Audit Act if the City of Denton spends or receives
more than $500,000 in any funding sources during this fiscal year. And in following those
requirements, the City of Denton will submit the report to the audit division of the Texas
Department of Transportation. If your entity did not meet the threshold of $500,000.00 in grant
expenditures, please submit a letter indicating that your entity is not rr�������t� to have a State
Single Audit performed for the most recent audited fiscal year. � ,,�''f �
Signature
Airport Operations Manager
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Date
09/O1/2014 Page 11 of 12
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TxDOT CSJ Number: M1418DNT0
The City of Denton designates, Patrick Carreno, Airport Operations Manager
(Name, Title)
as the Sponsor's authorized representative, who shall receive all correspondence and docuinents
associated with this grant and who shall make or shall acquire approvals and disapprovals for
this grant as required on behalf of the Sponsor.
The Citv of I_�ent�n, Texas
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Title: City Manager
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Mailing Address: Denton Enterprise Airport
5000 Airport Rd.
Denton, TX 76207
Overnight Mailing Address:
5000 Airport Rd.
Denton, TX 76207
Telephone/Fax Number: ( 9 4 0) 3 4 9- 7 7 3 6
Fax: (940) 349-7289
Email address; Patrick. carreno@cityofdenton. com
09/O 1/2014 Page 12 of 12