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AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY,
AUTHORIZING AND APPROVING AN INTERLOCAL AGREEMENT WITH
THE COUNTY OF MCCRACKEN AND THE BARKLEY REGIONAL
AIRPORT AUTHORITY REGARDING LOCAL SHARE PAYMENT OF THE
AIRPORT TERMINAL PROJECT IN AN ESTIMATED AMOUNT OF
$5,800,000 TO BE FUNDING EQUALLY BY THE CITY OF PADUCAH AND
THE COUNTY OF MCCRACKEN; AND AUTHORIZING THE EXECUTION
OF ALL DOCUMENTS RELATED TO SAME
WHEREAS, the Airport is a local air board established by the City and the County and
duly organized and operating under the laws of the Commonwealth of Kentucky as set forth in
KRS 183.132, et seq.; and
WHEREAS, the Airport has, with the encouragement and support of the City and
County, undertaken a project to build and construct a new terminal (including design and
construction of a sanitation sewer system) at the airport located at 2901 Fisher Road, West
Paducah, Kentucky 42086 (the "Terminal Project"); and
WHEREAS, the Terminal Project is estimated to cost Forty -Two Million Dollars
($42,000,000.00) (the "Total Estimated Cost"); and
WHEREAS, the Airport has received and obtained commitments from the Federal
Aviation Administration (the "FAA"), the Kentucky Department of Aviation ("KDA"), and other
federal, state, and local resources to provide funding for approximately eighty-seven percent (87%)
of the Total Estimated Cost of the Terminal Project; and
WHEREAS, the City and the County desire for the Airport to proceed with and complete
the Terminal Project and recognize that doing so will be a benefit to Paducah, McCracken County,
and western Kentucky; and
WHEREAS, the City and County desire to provide resources and funding for any portion
of the Terminal Project not funded by the FAA, the KDA, and other federal state, and local
resources (the "Local Share"); and
WHEREAS, the City, County, and the Airport desire to enter into this Agreement
in order to set forth and clearly understand what portion of the Local Share of the Terminal Project.
will be funded by the City and what portion of the Local Share of the Terminal Project will be
funded by the County;
NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF
THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS:
SECTION 1. Recitals and Authorization. The City hereby authorizes and
approves an Interlocal Cooperation Agreement (the "Agreement") by and between the City of
Paducah, Kentucky (the "City"), the County of McCracken County, Kentucky (the "County"), and
the Barkley Regional Airport Authority (the "Airport") in substantially the same form attached
hereto and made part hereof as Exhibit A. Further, the Mayor of the City is hereby authorized to
execute the Agreement and all documents relating to same with such changes in the agreements
not inconsistent with this Ordinance and not substantially adverse to the City as may be approved
by the official executing the same on behalf of the City.
SECTION 2. Compliance With Open Meetings Laws. The City Commission
hereby finds and determines that all formal actions relative to the adoption of this Ordinance
were taken in an open meeting of this City Commission, and that all deliberations of this City
Commission and of its committees, if any, which resulted in formal action, were in meetings
open to the public, in full compliance with applicable legal requirements.
SECTION 3. Conflicts. All ordinances, resolutions, orders or parts thereof in
conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed
and the provisions of this Ordinance shall prevail and be given effect.
SECTION 4. Severability. The provisions of this Ordinance are declared to be
severable. If any section, phrase or provision shall for any reason be declared invalid, such
declaration shall not affect the validity of the remainder of this Ordinance.
SECTION 5. Effective Date. This Ordinance shall be read on two separate days
and will become effective upon summary publication pursuant to KRS Chapter 424.
Attest:
Lrndsay Parish, Ci Clerk
Introduced by the Board of Commissioners, August 10, 2021
Adopted by the Board of Commissioners, August 24, 2021
Recorded by Lindsay Parish, City Clerk, August 24, 2021
Published by The Paducah Sun, August 27, 2021
\ord\Interlocal Agree — Barkley Regional Airport Terminal Project 2021
Exhibit A
INTERLOCAL COOPERATION AGREEMENT
This INTERLOCAL COOPERATION AGREEMENT (the "Agreement') is made,
entered into, and is effective on this the day of , 2021, by and between the City of
Paducah, Kentucky (the "City"), the County of McCracken County, Kentucky (the "County"), and
the Barkley Regional Airport Authority (the "Airport").
RECITALS
WHEREAS, the Airport is a local air board established by the City and the County and
duly organized and operating under the laws of the Commonwealth of Kentucky as set forth in
KRS 183.132, etseq.;
WHEREAS, the Airport has, with the encouragement and support of the City and County,
undertaken a project to construct a new terminal at the airport located at 2901 Fisher Road, West
Paducah, Kentucky 42086 (the "Terminal Project');
WHEREAS, the Terminal Project is estimated to cost Forty -Two Million Dollars
($42,000,000.00) (the "Total Estimated Cost');
WHEREAS, the Airport has received and obtained commitments from the Federal
Aviation Administration (the "FAA"), the Kentucky Department of Aviation ("KDA"), and other
federal, state, and local resources to provide funding for approximately eighty-seven percent (87%)
of the Total Estimated Cost of the Terminal Project;
WHEREAS, the City and the County desire for the Airport to proceed with and complete
the Terminal Project and recognize that doing so will be a benefit to Paducah, McCracken County,
and western Kentucky;
WHEREAS, the City and County desire to provide resources and funding for any portion
_ of the Terminal Project not funded by the FAA, the KDA, and other federal state, and local
resources (the "Local Share");
WHEREAS, the City, County, and the Airport desire to enter into this Agreement in order
to set forth and clearly understand what portion of the Local Share of the Terminal Project will be
funded by the City and what portion of the Local Share of the Terminal Project will be funded by
the County;
NOW THEREFORE, for and in consideration of the mutual promises and covenants set
forth herein, the Airport, the City, and the County agree as follows:
ARTICLE I: ESTIMATE OF LOCAL SHARE
1.1. As of the date of this Agreement, the Airport estimates that the Local Share of the
Terminal Project will be Five Million Eight Hundred Thousand Dollars ($5,800,000.00). A more
precise estimate of the amount and value of the Local Share will be known by the Airport when
bids for certain packages of the Terminal Project are received and opened by the Airport. When
bids are awarded, the Airport will complete and provide Exhibit A to this Agreement to the City
and County in order to appraise them of the more precise total amount of the Local Share. A final
Local Share in excess of Six Million Dollars ($6,000,000.00) is subject to a full review of the
Paducah City Commission and the McCracken County Fiscal Court.
1.2. The City and County acknowledge, understand, and agree that the total amount of
the Local Share set forth in Article 1.1 is only an estimate and that the Local Share may be higher
or lower than the estimate in Article 1.1. Regardless of whether the actual amount of the Local
Share is higher or lower than the estimate in Article 1. 1, the City and County are committed to and
will provide the Airport with funding sufficient to cover the Local Share in accordance with the
terms of this Agreement.
ARTICLE II: DIVISION OF LOCAL SHARE BETWEEN CITY AND COUNTY
2.1. Responsibility forpaying the Local Share ofthe Terminal Project shah be split equally between
the City and the County. That is, in accordance with the terms of this Agreement, the City and the
County are each, individually, committing and agreeing to provide funds sufficient to cover fifty
percent (50%) of the of the Local Share of the Terminal Project.
ARTICLE III: DISBURSEMENT OF THE LOCAL SHARE
3.1. Underthe terms ofthis Agreement, neither the City northe County are required to advance or
provide the entire amount of the Local Share to the Airport at any one time or on a date certain.
Rather, the City and the County are permitted and will disburse portions of their amount of the
Local Share in accordance with this Article 3.
3.2. As the Airport proceeds with the Terminal Project and receives invoices and
demands for payment for items on the Terminal Project that are to be paid for, funded, and covered
by the Local Share, the Airport shall present those to the City and County for payment. For the
City, the Airport shall present the invoices and items for payment for the Local Share to the Mayor
and City Manager. For the County, the Airport shall present the invoices and items for payment
from the Local Share to the County Judge Executive and the Deputy Judge Executive.
3.3. Within five (5) business days of receipt of an invoice or demand for payment from
the Airport, the City and the County shall deposit their share of such invoice into an account
designated by the Airport. Upon deposit of those funds, the Airport will be responsible for paying
the invoice or demand for payment and the City and County will be relieved of any further
obligation with respect to that invoice or demand for payment.
ARTICLE IV: PROVISION REQUIRED BY THE INTERLOCAL
COOPERATION ACT
4.1. ThehrterlocalCooperationAct,KRS65.250,etseq.(the"Act')requires thisAgreementto contain
certain specific provisions. The provision required by the Act are set forth in this Article 4.
4.2. The purpose of this Agreement is to allow the Airport to secure funding from the
City and the County for the Local Share of the Terminal Project and to set forth the City and the
County's obligations with respect to payment of the Local Share.
4.3. This Agreement shall remain in force and effect and its duration shall last until the
Terminal Project is complete. This Agreement may not be terminated while the Terminal Project
is ongoing.
4.4. The Executive Director of the Airport, or his designee, shall serve as the
administrator of this Agreement and shall be responsible for the administration and oversight of
the joint and cooperative undertaking of the City, County, and Airport set forth herein.
4.5. Any real or personal property acquired or disposed of by the Airport through use
of funding or proceeds provided by the City or County under their portion of the Local Share shall
be owned, titled, acquired, held, and/or disposed of by the Airport and in its name.
ARTICLE V: APPROVALS, AUTHORIZATIONS, AND NOTIFICATIONS REQUIRED
PRIOR TO AGREEMENT BECOMING EFFECTIVE
5.1. Before this Agreement shall become effective, itshallbe submitted to the Kentucky Department
of Local Government for approval in accordance with KRS 65.260(3).
5.2. Before this Agreement shall become effective, the City shall submit it to the
Paducah Board of Commissioners for approval. By entering into this Agreement, the City warrants
and represents that it has obtained approval to do so from the Paducah Board of Commissioners.
5.3. Before this Agreement shall become effective, the County shall submit it to the
McCracken County Fiscal Court for approval. By entering into this Agreement, the County
warrants and represents that it has obtained approval to do so from the McCracken County Fiscal
Court.
5.4. Before this Agreement shall become effective, the Airport shall submit it to the
Barkley Regional Airport Authority Board for approval. By entering into this Agreement, the
Airport warrants and represents that it has obtained approval to do so from the Barkley Regional
Airport Authority Board.
5.5. In accordance and compliance with KRS 65.241, the Airport has provided notice
of its intent to enter into this Agreement to the City and County, which are the governing bodies
of the local governments which jointly established the Airport. By entering into this Agreement,
the Airport, City, and County all acknowledge and agree that the notice requirements of KRS
65.241 have been met and complied with by the Airport.
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6.1. No officer, board member, commissioner, or employee ofthe City, County, orAirportmay be
subjected to any personal liability for any debt or contract created by this Agreement or resulting
from it.
ARTICLE VII: NATURE OF AGREEMENT AND FURTHER ASSURANCES
7.1. The City,County,andAirport agree to engage inajointand cooperative undertaldngwithinonly
the scope set out in this Agreement. They do not intend to create any relationship of surety or
indemnification, nor responsibility for indebtedness, liabilities, or claims incurred by either the
City, the County, or the Airport in their operations, other than as provided in this Agreement.
Furthermore, the execution of this Agreement will not constitute a waiver of any defense or
immunity to which the City, County, or Airport may otherwise be entitled under any applicable
law.
7.2. The City, County, and Airport agree that they shall, at any time upon the request of
another party, make, execute, and deliver or cause to be made, executed, and delivered to the
requesting party any and all other further instruments, certificates, and other documents as may, in
the reasonable opinion of requesting party, be necessary or desirable in order to effect, complete,
perfect, or otherwise to fulfill the obligations of the parties under this Agreement.
ARTICLE VIII: MISCELLANEOUS
8.1. This Agreementrepresents the entire agreement ofthe parties hereto, and all prior agreements,
discussions, or understandings between the parties regarding the City and County's payment of
the Local Share of the Terminal Project are hereby rescinded and shall be of no force or effect.
8.2. This Agreement may only be amended by a written document authorized, executed,
and delivered by each of the parties hereto.
8.3. This Agreement shall be binding upon the parties hereto and upon their respective
permitted successors, assignees, and transferees.
8.4. This Agreement may not be transferred or assigned to another unless written
consent is obtained from all of the parties hereto.
8.5. Nothing expressed or implied in this Agreement is intended or shall be construed
to confer upon any person, firm, or corporation other than the parties hereto any right, remedy or
claim by reason of this Agreement or any term hereof, and all terms contained herein shall be for
the sole and exclusive benefit of the parties hereto, their successors and permitted transferees or
assignees.
8.6. Time is of the essence is carrying out the terms and conditions of this Agreement,
and the parties agree to act expeditiously in doing so.
8.7. This Agreement shall be governed by and construed in accordance with the laws of
the Commonwealth of Kentucky.
8.8. Any legal action between the parties regarding this Agreement or the terms and
rights contained herein shall be filed in the federal or state courts of McCracken County, Kentucky,
and the parties waive any argument that such courts are an inconvenient forum.
8.9. If one or more provisions of this Agreement, or the applicability of any such
provisions for any set of circumstances, shall be determined to be invalid or ineffective for any
reason, such determination shall not affect the validity and enforceability of the remaining
provisions of this Agreement.
8.10. The waiver by any party of a breach, default or violation of this Agreement shall not
operate as or be constructed to be a waiver of any subsequent breach hereof.
8.11. This Agreement may be executed in one or more counterparts and when each party
hereto has executed at least one counterpart, this Agreement shall become binding on all parties
and such counterparts shall be deemed to be one and the same document.
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[signature page follows]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their duly authorized representatives as of the date first above written.
CITY OF PADUCAH, KENTUCKY, Authorized
by Action of the City Commission on
Mayor
Attest:
City Clerk
Date
COUNTY OF MCCRACKEN, KENTUCKY,
Authorized by Action of the Fiscal Court of the County
on
Judge Executive Date
Attest:
Fiscal Court Clerk
BARKLEY REGIONAL AIRPORT
AUTHORITY, Authorized by Action of the
Barkley Regional Airport Authority Board on
Board Chair
APPROVAL
Department of Local Government
100 Airport Road, 3rd Floor
Frankfort, Kentucky 40601
P: (800) 346-5606
F: (502) 227-8691
Date
This Interlocal Cooperation Agreement is in proper form and is compatible with the laws
of the Commonwealth of Kentucky; therefore, it is approved this the day of
2021.
DEPARTMENT OF LOCAL GOVERNMENT
Title:
Date: