19-2309ORDINANCE NO. 19-2309
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 OF $50,000.00 FOR THE ROUTINE AIRPORT MAINTENANCE
PROGRAM, REQUIRING THE CITY TO PROVIDE $50,000.00 IN MATCHING FUNDS;
AUTHORIZING THE CITY MANAGER TO EXPEND FUNDS PROVIDED FOR IN THE
GRANT AGREEMENT; AND DECLARING AN EFFECTIVE DATE (TxDOT CSJ No.:
M2018DNT0).
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 the 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
approval.
The r��c�ti���� �c� ���p��av� this Ordinance was made by ����"������'�"���'�;�'� and
M.� TM '
seconded by �� �����"��������,t � the Ordinance was passed and approved by
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Chris Watts, Mayor:
Gerard Hudspeth, District 1:
Keely G. Briggs, District 2:
Jesse Davis, District 3:
John Ryan, District 4:
Deb Armintor, At Large Place 5:
Paul Meltzer, At Large Place 6:
Aye N�a Abstain Absent
PASSED AND APPROVED this the ,,���� _ day of ���' ����.�°"����`���� „ 2019a
ATTEST;
ROSA RIOS, CITY SECRETARY
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BY: �� � �� � �..��::"__ ��.��,�� ��. �.���, _—
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTO'� a,Y �d �� -
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Part I- Identification of the Project
TO: The City of Denton
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, (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 Enterprise Airport.
Part II - Offer of Financial Assistance
For the purposes of this Grant, the annual routine maintenance project cost, Amount A, is
estimated as found on Attachment A, Scope of Services, attached hereto and made a part
of this grant agreement.
State financial assistance granted 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 $50,000.00, whichever is less, per fiscal year and subject to availability
of state appropriations.
Scope of Services, Attachment A, of this Grant, may be amended, subject to availability of
state funds, ta include additional approved airport maintenance work. Scope amendments
require submittal af an Amended Scope of Services, Attachment A.
Services will not be accomplished by the State until receipt of Sponsor's share of project
costs.
Only work items as described in Attachment A, Scope of Services of this Grant are
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reimbursable under this grant.
Wark shall be accamplished by August 31, 2020, unless otherwise appraved by the State.
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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.
Sponsor, by accepting this Grant certifies and, upon request, shall furnish proof to the State
that it has suffcient 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 ful] 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.
Scope of Services may be accomplished by State contracts or through local contracts ofthe
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 made for no more than 50% of
allowable charges.
The State will not participate in funding for force account work conducted by the Sponsor.
6. This Grant shall terminate upon completian af the scope of services.
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Part III - Spansar 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
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. through the fence access shall be reviewed and approved by the State; 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
an Airport Fund shall be established by resolution, order or ordinance in the
treasury ofthe 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 Pund
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
09/17/2019 Page 3 of 12
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
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.
l. 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.
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
09/17/20 ] 9 Page 4 of 12
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
ofthe 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 rnaintenance 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 of scope of services;
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
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 may
conduct an audit or investigation of any entity receiving funds frorn TxDOT
directly under this contract or indirectly through a subcontract under this contract.
09/17/2019 Pag� 5 of 12
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.
reirnburse sponsor for approved contract maintenance costs no more than once a
month.
PART V - Recitals
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 sey.
(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 remedies for breach as stated below.
a. Of primary importance to the State is cornpliance with the terms and conditions of
this Grant. If, however, after all reasonable attempts to require compliance have
failed, the State flnds that the Sponsor is unwilling and/or unable to comply with
any ofthe terms ofthis Grant, the State, may pursue any ofthe following remedies:
(1) require a refund of any iinancial 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 rnoney 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 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 ofthe 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 Sponsor. The acceptance period cannot be greater than 30 days after issuance unless
extended by the State.
09/17/2Q19 Page 6 of 12
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09/17/2019 Page 7 of 12
Part VI - Acceptances
Sponsor
The City of Denton does ratify and adopt all statements, representations, warranties,
covenants, agreements, and all terms and conditions of this Grant.
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Executed this � ���� day of �� ������'��;� ,���:�� „ � 2p �' ��'�'�
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p nsor Signature
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Sponsor Title
Certificate of Attorney
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have fully examined 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.
Dated at � �
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09/17/2019 Page 8 of 12
Acce tance of the tate
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09/17/2019 Page 9 of 12
Attachment A
Scope of Services
TxDOT Project ID: M2018DNT0
Eligible Scope Item' Estimated Costs State Share Sponsor Share
' Amount A Amount B Amount C
GENERAL MAINTENANCE $100,000.00 $50,000.00 $50,000.00
Special Project � $0.00 $0.00 $0.00
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���TOTAL ��� $100,000.00 $50,000.00 $50,000.00
Accepted by: "I"1�a. �"�i� �a1=Denton
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GENERALw_MAINTENANCE: As needed. � rt:����caNm mav cnntract f�r m�ervices/nurchase materials
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Only work items as described in Attachment A, Scope of Services of this Grant are
reimbursable under this grant.
09/17/2019 Page 10 of 12
CERTIFICATION OF AIRPORT FUND
TxDOT Project ID: M2018DNT0
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 beneft 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 t�t`Denton
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(Sponsor)
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Certification of State Single Audit Requirements
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, �������� <,� m m�� „' do certify that the City of Denton will comply with all
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(Designated Representative)
requirements of the State of Texas Single Audit Act if the City of Denton spends or receives more
than the threshold amount in any grant funding sources during the most recently audited 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 in
grant receivables or expenditures, please submit a letter indicating that your entity is not required
to have a State Single Audit performed for the most recent audited fiscal year. �aa �,
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Date
09/]7/2019 Page 11 of l2
DESIGNATION OF SPONSOR'S AUTHORIZED REPRESENTATIVE
TxDOT Project ID: M2018DNT0
The City of Denton designates, mmmmmmmm"���� �� ��.���� �� ww���� �,; ��� ���°y� ���"�
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as the Sponsor's authorized representative, who shall receive all correspondence and documents
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 Denton
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