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Item F5 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: 06-21-01 ~ Division: County Administrator Bulk Item: Yes X No Department: Airports AGENDA ITEM WORDING: Approval of Lease Agreement with Fedex Ground. ITEM BACKGROUND: Fedex is leasing paved ramp space while they plan and construct their permanent or long term facilities. PREVIOUS REVELANT BOCC ACTION: BOCC approved leasing pavement at the Marathon Airport to Fedex Ground Operations at the March 2001 commission meeting. CONTRACT/AGREEMENT CHANGES: This is a new contract for a maximum of two years that can be terminated with a 30 day notice any time, by either party. STAFF RECOMMENDATIONS: Approval TOTAL COST: N/A COST TO COUNTY: BUDGETED: Yes No REVENUE PRODUCING: Yes X No AMOUNT PER YEAR $6000.00 APPROVED BY: County Atty _ OMBlPurchasing _ Risk Management _ MARATHON AIRPORT MANAGER APPROV AL: ~~9 ~Th esa Cook -.-/C- DIVISION DIRECTOR APPROVAL: -- Q. - ~ ' James Roberts County Administrator DOCUMENTATION: Included X- To Follow Not Required_ DISPOSITION: AGENDAITEM#~ Revised 2/27/01 MONROE COUNTY BOARD OF COUNTY COMMISSIONERS -. CONTRACT SUMMARY '" .'... ,\~.. Contract with: FEDEX Ground Contract # July 7, 2001 Effective Date: April1,2001 Expiration Date: March 31, 2003 Contract Purpose/Description: Month to Month lease, not to exceed two years for 100' x 50' ramp area to be used for package sorting and truck loading. Contract Manager: Theresa Cook 6060 Airport/15 (Name) (Ext.) (Department/Stop #) for BOCC meeting on 6/21/01 Agenda Deadline: 6/1101 CONTRACT COSTS Total Dollar Value of Contract $ 6000.00 Budgeted? YesO No [8] Account Codes: Grant $ County Match: $ 0 Current Year Portion: $ -- ADDITIONAL COSTS Estimated Ongoing Costs: $ _/yr For:. '. (Not included in dollar value above) (eg. maintenance, utilities, janitorial, salaries, etc.) CONTRACT REVIEW crnmg~ DmeOm Date In Needed ~n Revi~wen Airport Manager YesON00 ~ ~ {,-s-\ Risk ManagTt. c..fllta1 y esO NO~ {i. ~ ~ 1Uk-;:R;0f' O.M.BJPurc~g YesONO~tc. a ~ County Attorney ~ YesO NO~~ Comments: OMB Form Revised 2/27/01 MCP #2 '- LEASE AGREEMENT MARA THON AIRPORT THIS CONTRACT OF LEASE is" macre' and entered into on the day of 2001, by and between MONROE COUNTY, a political subdivision of the State of Florida, whose address is 9400 Overseas Highway, Marathon, FL 33050, hereinafter referred to as -COUNTY" and FEDEX GROUND PACKAGE SYSTEM, INC., whose address is 1000 FedEx Drive, Moon Township, PA 15108, hereinafter referred to as -FEDEX." WHEREAS, COUNTY owns an airport known as the Marathon Airport, located in Marathon, Monroe County, Florida, hereinafter referred to as -Airport," and WHEREAS, FEDEX is engaged in the business of transportation of small packages, cargo and other property, and WHEREAS, FEDEX desires to obtain certain rights, services and privileges in connection with the use of the Airport facilities, and the COUNTY is willing to grant and lease the same to FEDEX on an exclusive basis for the premises leased, upon the terms and conditions hereinafter stated, NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained, and other valuable considerations, COUNTY does hereby grant and lease unto FEDEX, and FEDEX does hereby lease from COUNTY, certain premises, facilities, rights, and privileges in connection with and on the Airport, as follows, to wit: 1. PREMISES COUNTY does hereby lease to FEDEX, and FEDEX leases from the COUNTY, the ramp space presently located at the Airport, measuring 5,000 square feet, as indicated on the drawing . labeled as Exhibit -A If attached hereto and made a part hereof upon which FEDEX may place a trailer dock and/or an office trailer or a combination of both. 2. USE OF THE AIRPORT FEDEX shall be entitled to use, in common with others authorized to do so, the airport facilities and appurtenances, together with all equipment, improvements, and services which have been or may hereafter be provided at or in connection with the Airport for common use, in the operation of a business for the transportation of small packages, cargo and other property. 3. TERM The term of this lease shall be on a month to month basis not to exceed 24 months, commencing April 1, 2001 and may be terminat~d by FEDEX upon thirty (30) days prior written notice. 4. RENTALS AND FEES During the term of this lease, FEDEX shall pay to the COUNTY, rent as follows: the amount of $500 per month for the area of five thousand (5,000) square feet, plus applicable sales tax. Rental rates are subject to revision each year, effective April 1, in accordance with the airport standard rates and charges, or in accordance with the percentage change in the Consumer Price Index (CPr) for Wage Earners and Clerical Workers in the Miami, Florida, area index, and shall be based upon the annual average cpr computation from January 1 through December 31 of the previous year. Rent shall be paid in equal installments, each of which shall be due and payable on or before the first day of each calendar month during which this lease is in effect. Upon the failure of FEDEX to pay any installments when due, or within any grace period provided in Section 12, the COUNTY will be entitled to charge and collect, and FEDEX will be obligated to pay, a late fee of two percent (2%) of any such amount, if paid within thirty (30) days of the date due, and five percent (5%) of any such amount, not paid within thirty (30) days of the date due. Such late fees will be in addition to the amount of rent due. The acceptance by the COUNTY of the overdue rental installment plus applicable late fees shall cure what would otherwise constitute a default by FEDEX under the terms of this lease. The COUNTY, at its option, however, may refuse a proffered overdue rental installment and late fees, declare a default, and proceed according to paragraph 12 of this lease. If any check, draft, or negotiable instrument by which FEDEX has tendered any rent payment is returned to the COUNTY and not honored, then the COUNTY may collect, in addition to any applicable late payment fees as provided above, a fee of Twenty-five Dollars ($25.00) for such dishonored instrument. Such penalty fee shall also be in addition to the amount of rent due. The acceptance by the COUNTY of the rental payment plus any applicable late fee and penalties following the receipt of a dishonored instrument shall cure what would otherwise constitute a default under the terms of this lease. The COUNiY, at its option, however, may refuse any proffered rental installment and applicable late fees and penalties, declare a default, and procUd'Qccording to paragraph 12 of this lease. 5. LEASEHOLD IMPROVEMENTS AND USE FEDEX shall have the right to occupy and use ten thousand (5,000) square feet of concrete ramp space and install the items referred to in Section 3. 6. COMMON AREAS FEDEX shall have the right to use, in common with others, the Airport space and facilities (including, without limitation, restroom facilities) to conduct its cargo business, subject to reasonable rules and regulations of COUNiY as to the use of such common spaces and facilities. 7. RIGHT OF INGRESS AND EGRESS FEDEX, its agents, employees, customers, suppliers, and patrons shall have the right of ingress and egress to and from the leased premises, which shall not be uMreasonably restricted by COUNiY. 8. UTILITIES FEDEX shall be responsible for the payment of electrical service, water service, trash and septic tank servicing and similar utility services, in each case, to the trailer dock and/or office dock, as needed. 9. ASSIGNMENT The premises leased hereunder may not be sublet and this lease may not be assigned without the written consent of the COUNiY, not to be unreasonably withheld. FEDEX may sublet / or assign this lease to any subsidiary of FED EX Corporation. 10. MAINTENANCE OF PREMISES FEDEX shall be responsible for and shall properly maintain the leased premises, and upon the termination of this lease, shall leave the premises in at least as good condition as at the time of the commencement of this lease, normal use and occupancy excepted. FEDEX shall also be responsible for, and shall properly maintain, the security fences and gates surrounding the leased premises (if any) and for any construction work performed to or on the premises leased hereunder. 11. INDEMNIFICATION/HOLD HARMLESS a. FEDEX agrees to indemnify and save COUNiY harmless from and against all claims and actions and expenses incidental thereto, arising out of damages or the cost of defending claims for damages resulting from the negligence of FEDEX, its agents, or employees in the use or occupancy of the leased premises and the common areas of the Airport facilities by FEDEX. However, FEDEX shall not be liable for any claims, actions or 'expenses resulting from the COUNTY's negligence. The extent of liability is in no way limited to, reduced, or lessened by the.insurance requirements contained elsewhere within this agreement. ,. '.. ',,~, b. Prior to FEDEX taking possession of the property owned by the COUNTY, FEDEX shall obtain, at its own expense, insurance as specified in the attached schedules, which are made a part of this lease agreement. FEDEX will not be permitted to occupy or use the lease property until satisfactory evidence of the required insurance has been furnished to the COUNTY as specified below. FEDEX shall maintain the required insurance, throughout the entire term of this lease agreement, and any extensions, as specified in the attached schedules. Failure to comply with this provision may result in the immediate termination of the lease agreement and the return of all property owned by the COUNTY. FEDEX shall provide to the COUNTY as satisfactory evidence of the required insurance a Certificate of Insurance. All insurance policies must specify that they are not subject to cancellation, non-renewal, material change, or reduction in coverage unless a minimum of thirty (30) days prior notification is given to the COUNTY by the insurer. The acceptance and/or approval of the FEDEX's insurance shall not be construed as relieving the FEDEX from any liability or obligation assumed under this contract or imposed by law. The Monroe County Board of County Commissioners will be included as "Additional Insured" on all policies. FEDEX shall carry its insurance with Insurance companies authorized to do business in the State of Florida. Any deviations from these General Insurance Requirements must be requested in writing on the COUNTY prepared form entitled "Request for Waiver of Insurance Requirements" and be approved by Monroe County Risk Management. 12. DEFAULT Unless the COUNTY has accepted a rental installment after it has become due together with any applicable late payments and penalties, the failure to pay rental installments when due (or within 5 days of written notice for the first two delinquencies each year) shall constitute a default under the terms of this lease. The failure to pay any other charges or fees when due under this lease shall constitute a default. Further, the failure of FEDEX to perform any other of the covenants of this lease, which failure shall continue for a period of thirty (30) days after notice thereof is given to FEDEX in writing by the COUNTY, shall also constitute a"default under the terms of this leas-e. In the event of a default, COUNTY may, at its option, declare the lease forfeited and may immediately re-enter and take possession of the leased premises and this lease shall terminate. If it shall be necessary to employ the services of an attorney in order to enforce its right under this paragraph, or to collect any of its rentals, fees, or charges due, COUNTY shall be entitled to reasonable attorney's fees. Waiver of a default in any particular month shall not bind the COUNTY to forego the provisions of this paragraph and any subsequent default shall be grounds for termination. 13. VENUE for any litigation arising under this lease must be in a court of competent jurisdiction in Monroe County, Florida. 14. FAA REQUIREMENTS The parties shall comply with FAA Required Lease Clauses, which are listed in Exhibit -B,. attached hereto and made a part hereof. 15. Notwithstanding anything th(Jt may appear elsewhere in this lease, the COUNTY reserves the right to grant similar leases at the Marathon Airport to other transportation companies on a space available basis. IN WITNESS WHEREOF, the parties have caused this lease to be executed the day and year first written above. (SEAL) ATTEST: DANNY L. KOLHAGE, CLERK BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA By By Deputy Clerk Mayor/Chairman .' :;~~ ~: ~ " FE X GROUND PACKAGE SYSTEM, INC. ~ y Witne,5s ----- ' . ,.1 . {;.!. <-- ~ l.- Witness C// JdairportfedexmOl ,. .' ".:..... J.s ItJ.P6 ~ ~ o J.s O~f'6 J.s Otv~6 J.s .J.S L 6 J.S H.J.06 - .~ - < ... :2 La. Q > C <t. w ~ \ J ~I u.. ~ .cd: ... Ck