Item F1 County of Monroe BOARD OF COUNTY COMMISSIONERS
y = f • Mayor Heather Carruthers,District 3
The Florida Keys Vit2, Mayor Pro Tem Michelle Coldiron,District 2
:� t
Craig Cates,District 1
David Rice,District 4
, Sylvia J. Murphy,District 5
Memorandum
DATE: 21 January 2020
TO: Monroe County Board of County Commissioner
FROM: Cathy Crane, Director of Veterans Affairs
SUBJECT: Current suspended status of the Florida Disabled American Veterans Chapter 122
I. Background Information
On November 20, 2019 the Board of County Commissioners (BOCC) approved Item L1 for the Emergency
Operations Center (EOC) at the Florida Keys Marathon Airport site; moreover, the Florida Disabled American
Veterans Chapter 122's(DAV 122)lease agreement at the approved EOC site terminates June 14, 2020 and will not
be renewed. At the direction of the County Administrator, county staff was to continue communication with DAV
122 throughout the transition from its current location.During communication efforts staff learned that DAV 122 was
suspended by the National DAV. As a result of the suspension, communications with the local chapter has been
limited.The suspension also raised concerns about DAV's 122 ability to comply with its lease requirements.
II. Discussion
County staff has made numerous communication efforts prior to and following the November 20, 2019 BOCC
meeting to DAV 122; on December 4, 2019 at DAV 122 a meeting with Cathy Crane, Monroe County Director of
Veterans Affairs; Daniel Perkins,DAV 122 Commander; and other DAV 122 members was held to discuss transition
plans. DAV 122 leadership and members in attendance disclosed there was no transition plan in place; therefore,
discussed options for relocation included leasing,purchasing, or requesting the use of another organization's facility
as a meeting place. Furthermore,DAV 122 members in attendance were reminded of the lease termination date and
the importance of preparing a transition plan.
During a December 16, 2019 follow up conference call county staff was informed by Mr. Perkins DAV 122 was
suspended due to their obligatory financial report not being filed timely to the National and Florida DAV. County
staff requested Mr. Perkins follow up to discuss the upcoming termination of the lease and transition plan.
Receiving no follow up from DAV 122 county staff again made multiple attempts to make contact, with no success.
January 10, 2020 county staff called the National DAV and was informed DAV 122 was suspended and advised if
additional details were needed to contact Andy Marshall the Executive Director of the Florida DAV; on January 13th
Mr. Marshall confirmed he traveled to DAV 122 on December 12, 2019 and suspended DAV 122 for not filing an
obligatory financial report by October 1, 2019 and confirmed their suspension was ongoing; in addition, he stated
two submissions of a financial report were received,but both were rejected.Mr.Marshall also advised no fundraising
activities were to occur during the suspension to include stating the bar was to be closed until the suspension was
lifted.
(c): While under suspension (and not under trusteeship) no meetings shall be held in the name of the
subordinate unit (or the Organization) except for the sole purpose of discussing the cause, effect or removal
of the penalty. No funds of the subordinate unit shall be expended or obligations incurred while the order of
suspension is in force. (See Exhibit A)
When conversing with Mr. Marshall he stated Mr. Perkins advised him of the termination of the lease and Mr.
Marshall made the same suggestions as was discussed during the December 16t meeting. Mr. Marshall shared that
DAV 122 wanted a location with a bar, he advised me that was not the mission of the DAV and most DAVs have
moved away from that practice. It was requested of Mr. Marshall to keep county staff updated on future status
changes of DAV 122. In addition, county staff advised Mr.Marshall a notice was being sent to DAV 122.
F!
III. Notice of Default and Non-Renewal of Lease
A notice of default and non-renewal of lease originated by Monroe County's County Attorney's Office has been
forwarded to the Daniel Perkins, Commander of DAV 122, which discloses the multiple violations of the lease
including the suspension of DAV 122,the ability to meet the financial obligations of the lease,and a lapse in required
insurance. (See Exhibit B)
Therefore,pursuant to Article 12 of the lease,you are hereby notified that DAV 122 is currently in default of
the lease and has 15 days to provide proof of reinstatement of its charter and proof of compliance with all
lease terms. Further, the County demands that DAV 122 refrain from using the premises until the National
DAV reinstates DAV 122's charter and DAV 122 obtains all appropriate insurance coverages. If I have not
received written confirmation that National DAV has reinstated DAV 122's charter and DAV 122 has cured
the other breaches outlined above by 9 am on February 10, 2020, I shall agenda an item for the Board of
County Commissioner's February 19th meeting that asks the Board to find that DAV 122 has defaulted on its
lease obligations and terminate the lease as provided for in Article 12. (See Exhibit B)
IV. Recommendation
County staff make no recommendation at this time as the DAV 122 has 15 days to comply with the aforementioned
notice; furthermore, as stated in the notice if DAV 122 does not cure the requirements listed in the notice within the
specified timeframe the County Attorney's Office will bring it before the Board of County Commissioners on
February 19, 2020. (See Exhibit B)
In the interim, county staff will continue to work directly with both National and Florida DAV on Veteran client
needs; then, if and when reinstated work with the DAV 122 through the remainder of the transition as well. County
staff notes the county Veterans Affairs Department currently assists Veterans in the area and will continue ensure
Veteran client needs are met.
IV. Exhibits
A. National Disabled American Veterans Bylaws -Articles 6 - 8
B. Notice of Default and Non-renewal of Lease
Cc: Roman Gastesi, County Administrator
Senior Management Team
Pedro Mercado,Assistant County Attorney
•,;County of Monroe
BOARD OF COUNTY COMMISSIONERS
y ::�, Mayor Heather Car uthes,District 3
The Florida Keys . �`\ ` Mayor Pro Tem Michelle Coldiron,District 2
44, Craig Cates,District 1
David Rice,District 4
Sylvia J.Murphy,District 5
Robert B.Shillinger,County Attorney**
Pedro J.Mercado,Assistant County Attorney** Office of the County Attorney
Cynthia L.Hall,Assistant County Attorney** 1111 12's Street,Suite 408
Christine Limbert-Barrows,Assistant County Attorney** Key West,FL 33040
Derek V.Howard,Assistant County Attorney** (305)292-3470—Phone
Steven T.Williams,Assistant County Attorney** (305)292-3516—Fax
Peter H.Morris,Assistant County Attorney**
Patricia Eables,Assistant County Attorney
Paunece Scull,Assistant County Attorney
Joseph X.DiNovo,Assistant County Attorney
**Board Certified in City,County&Local Govt.Law Fed Ex #8132-0483-8546-0200
Daniel Perkins January 21, 2020
Disabled American Veterans
7280 Overseas Highway
Marathon, Fl. 33050
Re:NOTICE OF DEFAULT AND NON-RENEWAL OF LEASE
Dear Mr. Perkins:
Monroe County has learned that the National DAV organization has suspended the charter for the
Disabled American Veteran's Chapter 122(DAV 122). It is our understanding that,while suspended,
DAV 122 is unable to meet except for the sole purpose of discussing the cause, effect or removal of
the penalty) and prohibited from expending funds or incurring obligations. If true, these restrictions
raise several concerns regarding your organization's ability to remain in the leased premises.
First, the County leased the premises to DAV 122 for the purposes of serving the needs of the
County's disabled veterans. The suspension vitiates the entire purpose and intent of the lease and
undermines the basis by which the County was able to lease the premises to DAV 122 without
competitive bidding.
Second, the suspension, if true, raises concerns as to DAV's 122 ability to comply with the rental
terms of the lease. Specifically, Article 3 requires DAV to expend funds for maintenance and.
improvements to the premises. As long as DAV 122 is banned from incurring expenses as a result
of the suspension, DAV 122 is in default of its obligations under this portion of the lease.
Third, the revelations caused staff to review DAV 122's compliance with all terms of the lease with
the county. That review has produced evidence of other breaches by DAV 122 with respect to
maintaining adequate insurance coverages as required by Article 11 of the lease dated June 5, 2005,
as extended in 2010 and 2015. The insurance requirements as follows:
11. Insurance Requirements.
a. DAV will obtain or possess the following insurance coverages and will provide
Certificates of Insurance to County to verify such coverage:
General Liability. DAV shall provide coverage for all premises and operations
including Products and Completed Operations, Blanket Contractual Liability,
Personal Insurance Liability, Expanded Definition of Property Damage and Fire
Legal Liability(with limits equal to the fair market value of the leased property.)The
limits shall not be less than:
$300,000 Combined Single Limit(CSL)
If split limits are provided, the minimum limits acceptable shall be:
$100,000 per Person
$300,000 per Occurrence -
$ 50,000 Property Damage
Liquor Liability-Recognizing that the work governed by this contract involves the
sales and/or distribution for alcoholic beverages, DAV's General Liability Insurance
policy shall include Liquor Liability with limits equal to those of the basic coverage.
Vehicle Liability. DAV shall provide coverage for all owned, non-owned and hired
vehicles with limits of not less than:
$100,000 Combined Single Limit (CSL)
If split limits are provided, the minimum limits acceptable shall be:
$ 50,000 per Person
$100,000 per Occurrence
$ 25,000 Property Damage
Worker's Compensation. DAV shall provide coverage with limits sufficient to
respond to the applicable state statutes.
Employers'Liability.DAV shall provide Employer's Liability Insurance with limits
of not less than:
$100,000 Bodily Injury by Accident
$500,000 Bodily Injury by Disease, policy limits
$100,000 Bodily Injury by Disease, each employee
A review of the certificates of insurance on file with the County revealed that DAV has allowed the
required insurance coverages to lapse. It appears that the premises have had NO insurance coverage
whatsoever since May 5, 2019. The lapse in coverage represents an unacceptable risk of liability to
the County. Given the limits on expenditures as a result of the suspension, curing this breach would
seem impossible until DAV 122 is reinstated.
Therefore, pursuant to Article 12 of the lease, you are hereby notified that DAV 122 is
currently in default of the lease and has 15 days to provide proof of reinstatement of its charter
and proof of compliance with all lease terms. Further, the County demands that DAV 122
refrain from using the premises until the National DAV reinstates DAV 122's charter and
DAV 122 obtains all appropriate insurance coverages. If I have not received written
confirmation that National DAV has reinstated DAV 122's charter and DAV 122 has cured
the other breaches outlined above by 9 am on February 10, 2020, I shall agenda an item for
the Board of County Commissioner's February 19th meeting that asks the Board to find that
DAV 122 has defaulted on its lease obligations and terminate the lease as provided for in
Article 12.
Furthermore, Monroe County requests all documentation evidencing DAV 122's compliance with
all the lease terms. The County specifically requests an accounting of all of the maintenance and
improvements performed on the premises by DAV 122 during this rental term — June 15, 2019 to
present.
Finally, even if DAV 122 cures the breaches outlined above, you are hereby notified that Disabled
American Veteran's (DAV) tenancy at 7280 Overseas Highway WILL NOT be renewed at the end
of the present term, nor will DAV be given the opportunity to remain as a month-to-month tenant.
DAV must arrange to vacate the premises by no later than June 14,2020,the end of the present term.
If DAV 122 fails to vacate the premises and the County is required to take legal action to retake
possession of the premises,please be advised that DAV may be liable for court costs and the payment
of the County's legal fees. In addition, pursuant to F.S. 83.58, the County is entitled to demand
double your monthly rent for as long as you remain a holdover resident.
GOVERN YOURSELVES ACCORDINGLY.
Si ly,
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Pedro J a o
Assist County Attorney
Cc: Roman Gastesi, County Administrator
Richard Strickland, Director of Airports
Bob Shillinger, County Attorney
Cathy Crane, Director of Veterans Affairs
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