HomeMy WebLinkAboutRES.905.03-07-1994 � �
BILL NO. 94-48 RESOLUTION NO. ��IU J
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A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE AN AGREEMENT WITH THE FEDERAL AVIATION
ADMINISTRATION ESTABLISHING AN ESCROW ACCOUNT
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CAPE GIRARDEAU,
MISSOURI, AS FOLLOWS:
ARTICLE 1. The City Manager, for and on behalf of the City of
Cape Girardeau, Missouri, is hereby authorized to execute an
Agreement with the Federal Aviation Administration, establishing an
escrow account in AIP Project No. 3-29-0013-02 . A copy of said
Agreement is attached to this Resolution and made a part hereof.
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PASSED AND ADOPTED THIS � DAY OF i/ICJ���`i�: , 19 `�' .
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Francis E. Rhodes, Mayor
ATTEST:
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- ' Gayle . Conrad
�" Deputy City Clerk
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AGREEMENT ��
This agreement is entered into this day of February, 1994, by and between the
Federal Aviation Administration (hereinafter referred to as the "FAA"), and the City of Cape
Girardeau, Missouri (hereinafter referred to as the "Sponsor").
The City of Cape Girardeau, Missouri is the Sponsor of the Cape Girardeau, Missouri
Municipal Airport. The FAA awarded a grant to the Sponsor to construct an apron overlay at the
Cape Girardeau Municipal Airport, under Airport Improvement Program (AIP) Project No. 3-29-
0013-02 (hereinafter referred to as the "Project").
The Sponsor contracted with Penzel Construction Company, Inc. for construction of the
apron overlay, and with Booker Associates, Inc. for design and inspection of the apron. The
apron overlay that was constructed under the Project did not, in the view of the FAA, fully
comply with the project specifications. The FAA withheld a portion of the funds under the grant.
The Sponsor withheld a portion of the payment requested from the contractor. The contractor
demanded payment from the Sponsor, asserting that they had fully complied with the project
specifications. Legal actions concerning this matter were filed in the Circuit Court of the County
of Cape Girardeau County, State of Missouri [Penzel Construction Companv, Inc. v. City of
Cape Girardeau, Missouri, Case No. CV690-632CC, and City of Cape Girardeau. Missouri v.
Penzel Construction CompanX, Inc., and Booker Associates, Inc., Case No. CV691-2033CC].
Therefore, disputes and disagreements have arisen among the parties with respect to their
obligations and performance under the contracts relating to the Project. The FAA heard and
reviewed the parties' contentions at a meeting on October 14, 1993. Upon such review, the FAA
deternuned that it is in the best interests of the Government and for all parties to settle the
disputes and differences out of court, and inasmuch as it was the intent of the original grant
agreement to construct an overlay of the apron, the FAA has further determined that any funds
remaining under the Project shall be used to ensure that said apron overlay will last for the
duration of the original grant agreement (20 years).
Therefore, the FAA and the Sponsor hereby agree:
1. That the FAA shall pay to the Sponsor the sum of$ 19,137.17 on or before
,�,,. , � g , 199`f (this sum constitutes the remainder of the funds under the Project).
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2. Said sum of$19,137.17 shall be placed by the Sponsor in a separate interest-bearing
escrow account. The interest that accrues on the principal shall be added to the principal. The
Sponsor may pay from the escrow account a reasonable fee to the escrow agent for servicing said
account.
3. Funds in the above-described escrow account may be used for repairs to the apron
overlay that was constructed under AIP Project No. 3-29-0013-02. In the event that repairs to
said apron overlay are deemed necessary by the Sponsor, the Sponsor shall seek a determination
from the FAA that the proposed repair is reasonable and necessary. In the event that the FAA
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determines that the proposed repair is reasonable and necessary, the Sponsor shall use the funds
held in the above-described escrow for the repairs. The funds held in the escrow account shall not
be used for routine maintenance of the apron overlay.
4. In the event that no repairs to said apron overlay have been made during the period of
AIP Project No. 3-29-0013-02, that is, from May 26, 1987, to May 27, 2007, then the money
held in escrow, plus the interest that has accrued thereon, may be used for other airport
improvement projects at the Cape Girardeau Municipal Airport, subject to the approval of the
FAA. The Sponsor shall seek a determination from the FAA as to whether the proposed airport
improvement project is reasonable and necessary, prior to expenditure of the escrow funds. No
portion of the money from the escrow account may be used as the Sponsor's matching funds
under an airport grant agreement.
5. In the event that the escrow account is not completely paid out, or is not authorized by
the FAA to be completely paid out, in accordance with the provisions of this agreement, then the
remaining, or unauthorized, portion of the principal and interest from the escrow account shall be
paid out to the FAA no later than May 26, 2008, by a check made payable to the Treasurer of the
United States.
UNITED STATES OF AMERICA CITY OF CAPE GIRARDEAU, MISSOURI
DEPARTMENT OF TRANSPORTATION
FEDERAL AVIATION ADMINISTRATION
By: Date: Y By: Date:
George A. endon J. Ronald Fischer
Manager, Airport Division, Central Region City Manager
Federal Aviation Administration Cape Girardeau, Missouri
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�U�,_,` � Date:�-�- �`� Date:
�John C. Curry Warren L. Wells
Assistant Chief Counse , Central Region City Attorney
Federal Aviation Administration Cape Girardeau, Missouri