Agenda

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Item # 15.

Council Meeting

Meeting Date:	06/28/2022
Department:	Airport
Pillars:	Innovation in Entrepreneurship & Business
Milestones:	Implement the Asset Management Plan in accordance with the Asset Management Policy, utilizing information systems

AGENDA CAPTION:

Present, Discuss, and Consider Action on an Ordinance of the Town of Addison, Texas Approving a Developer Participation Agreement with Scarborough I Aviation, LP for the Construction of Certain Public Improvements Within Addison Airport to a Portion of the Taxiway Uniform Shoulder and Apron; Providing for the City's Participation in the Costs of the Improvements in Conformance with Chapter 212 of the Texas Local Government Code; and Authorizing the City Manager to Execute the Agreement in an Anticipated Amount Not To Exceed $236,192.

BACKGROUND:

Airport management is proposing the Town enter into a Developer Participation Agreement (“Contract”) provided for under Subchapter C, Chapter 212, Tex. Loc. Gov. Code (“Code”) with Scarborough I Airport, LP, (“Scarborough”) to reconstruct a portion of airport taxilane and aircraft apron at Addison Airport.

Scarborough is the owner of a fee simple aeronautical facility located at 16445 Addison Road (”Commercial Property”), which is adjacent to and abuts the Addison Airport. Scarborough also leases approximately 22,000 square feet of airport land, which lies between Scarborough’s Commercial Property and Taxiway Uniform, a nearby secondary taxilane connecting the northeast portion of the Airport to its primary runway system. The airport land subject to the lease is improved with concrete pavement first constructed in the 1980's, however, it is in fair to poor conditions.

Scarborough desires a new long-term ground lease with the Town to continue its use for staging and storing aircraft in connection with its “off-airport” commercial aeronautical operations. In consideration of the ground lease, Scarborough proposes to, among other things, reconstruct, the aircraft apron, at its sole cost and expense and in accordance with the Airport’s prevailing design standards. Airport management has determined it would serve the best interest of the Airport and the general aviation public to have approximately 7,200 square feet of the Taxiway Uniform shoulder that adjoins the aircraft apron to be reconstructed at the same time.

Without having to comply with the competitive sealed bidding procedures of Chapter 252 of the Code, the Town may contract with a developer within its city limits to construct public improvements, provided the Town’s share does not exceed 30% of the total contract price (excluding Town requested upgrades for which the Town is allowed to pay up to one hundred percent (100%) of the costs attributed to the upgrades). To qualify under Chapter 252, the work contracted must be for public improvements and not to include any vertical structures. The proposed reconstruction of the Taxilane Uniform and the aircraft apron qualify under the Code.

The proposed Developer Participation Agreement sets forth the terms and conditions, which Scarborough is responsible for performing under the prescribed scope of work pursuant to a design plan prepared by a licensed engineer and approved by the Town. Scarborough shall be responsible for contracting and overseeing their contractor or contractors necessary to complete the work. The engineer’s estimate of probable cost (“EPC”) is anticipated to be $787,308.00 with the Town’s share not to exceed $236,192. Should the contract price exceed 110% of the total engineer’s probable cost, Scarborough and the Town will cooperate to reduce the scope of the project as needed or terminate the Contract, as the case may be.

The benefits of approving the Developer Participation Contract include:

Airport infrastructure and taxilanes are being improved
There will likely be economies of scale recognized with the larger scope of work and unit volumes required.
The aircraft apron and the taxilane reconstruction will provide a better project for both components with less disruption to aeronautical operations.

The Town’s portion of the project costs will be paid from the Airport Enterprise Fund Capital Improvement Budget.

The Developer Participation Agreement has been reviewed by the city attorney and finds the form acceptable for the Town’s purposes.

RECOMMENDATION:

Administration recommends approval

Attachments
Presentation - Proposed Developer Participation Agreement
Ordinance - Proposed Developer Participation Agreement Scarborough I LP
Location Map