Item G6
Revised 2/95
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: December 13.2000
Division:
County Administrator
Bulk Item: Yes --K- No
Department: Airports
AGENDA ITEM WORDING:
Approval of lease with Marathon Hangar Development Inc.
ITEM BACKGROUND:
Marathon Hangar Development, Inc. was the respondent to the Request for Proposals for development
of hangars at the Marathon Airport.
PREVIOUS REVELANT BOCC ACTION:
BOCC approved negotiations with MHD, Inc. at the June 2000 Board meeting.
STAFF RECOMMENDATIONS:
Approval.
TOTAL COST:
NONE
BUDGETED: Yes
No
COST TO COUNTY:
REVENUE PRODUCING: Yes -K- No
AMOUNT PER Year:
Pavement: $5,390/year
Buildings: $11,959/year
APPROVED BY: County Atty -K.
OMBlPurchasing -K-
Risk Management _X_
DIVISION DIRECTOR APPROVAL:
---L
~~~
JmnesL.Roberts
~
DOCUMENTATION:
Included 1L
To Follow
Not Required
AGENDA ITEM#~
DISPOSITION:
Oec-07-00 14:21
FRCJ1 :
Monroe County OMS
FRX NO. :
305 295 4320 P.01
Dee. 06 2000 C~: 32PM ~1
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
----.----CONTRACTSUMMARV ---.-
COntr8Ct #I
i
I Contract with: MarathOn Hangar Development. Inc. Effecttve Date: 12.13-2000
, Expiration Date: Subjed to
I COI'struction Completion Dates.
Contraet PurposelO.8criptlon: Development. lease and management
I of Hangars at Marathc:ln Airport.
Contract Manag...: Theresa Cook 16060 Airports - StoP' 15
I (name) (Ext.) (DepartmentlCOurler Stop)
~r BOCC mAlting on: December 13. 2000 As-nda De.dUne: Novomber 29, 2000 _--.J
--
CONTRACT COSTS '-
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I Total DoUar Va&ue of Contracti Approx. $17.458.21 Currettt Year Portion:
annually .
I Budgeted? NlA Account Co,,~
I Grant: N/A
I County Match: MIA
\ estimated Ongoing Coats:
! (not Incl\ldeclln dolJllr Y11lue Ibon)
ADOmONAL COSTS
For: .
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CONTRACT REVIEW
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LEASE AGREEMENT
This lease agreement is made and entered into this day of ,
2000 by and between Monroe County, a political subdivision of the State of Florida, whose
address is the Marathon Airport, 9400 Overseas Highway, Marathon, FL 33050, hereafter County,
and Marathon Hangar Development, Inc. (MHO), a Florida corporation, whose address is
11100 Overseas Highway, Marathon, FL 33050, hereafter MHD or Tenant. The parties agree as
follows:
1. The County leases to MHD the real property at the Marathon Airport, hereafter
Airport, depicted on Exhibit A, hereafter the premises. Exhibit A is attached to this lease and
made a part of it. The premises are leased for the purposes of making available hangar space to
operators of private aircraft. County hereby consents and agrees that MHD has the right to
occupy the leased premises and has reasonable ingress, egress and access to the lease premises
for the purpose of construction and by subcontractors and subtenants of the hangars throughout
the term of the lease.
2. Within three years of the date of first written above hereafter the effective date,
MHD must construct and complete on the premises four buildings, each building containing 8
hangars for a total of 32 hangars, plus all infrastructure and adjacent pavement needed to service
the four buildings. The time for completion will be extended if any third party files an
administrative or court challenge or appeal to the issuance of any necessary development
approval. The extension will be equal to the time between when the appeal or challenge is filed
and the final resolution. However, MHD must also diligently and in good faith defend its
entitlement to the needed development order. The construction must proceed according to the
following schedule:
a) Within the first sixteen months after the effective date, MHD must construct and
complete all the infrastructure needed for the four building hangar project, one of the four
hangar buildings, and adjacent pavement. Complete means that a certificate of occupancy (CO)
has been issued for the infrastructure and building.
b) In the remaining twenty month period, MHD must construct and complete three
hangar buildings. Upon completion of the fourth hangar building, MHD must have completed
approximately 39,864 square feet of enclosed hangar space and approximately 49,991 square
feet of paved area.
c) Due to the urgent need at the Airport for additional hangar facilities, MHD
acknowledges that time is of the essence in completing the hangar buildings, pavement and
infrastructure and that failure to adhere to the construction schedule set forth in this lease
entitles the County to terminate this lease for cause and to access the letter of credit as provided
for in paragraph 5, so long as such delays are not the result of a natural or man made disaster,
labor unrest or an act of the federal or state government.
3. a) All buildings and infrastructure must be built in accordance with all applicable
land development regulations and building codes. Any architect or PE whose services are to be
utilized by MHD must be selected by the County pursuant to the Consultants' Competitive
Negotiation Act. The general contractor must be selected by the County pursuant to its
purchasing policies and state law.
b) The County agrees to pay one-half of all the construction costs of the four
hangar buildings, paved areas and infrastructure on a reimbursement basis, payable monthly, for
the costs incurred during the prior month. All invoices for payment must be submitted to the
Airport Director for approval in the form required by the Director and the County's Clerk.
Construction costs includes architectural and engineering costs as well as the actual costs of
construction. If the Director, County Engineer, Construction Manager, or airport consultant, and
Clerk approve the invoice, then the Clerk shall pay the same. If not, the County officer, employee
or consultant disapproving the invoice shall return it to MHD with an explanation as to the
deficiency.
c) MHD acknowledges that the County funding is provided by the FAA and FDOT.
If the FAA and/or FDOT eliminates or reduces that funding, then the County may terminate this
lease without cause, with no liability for damages to MHD, and with no obligation or duty to pay
any sum to MHD other than the unreimbursed construction costs incurred by MHD up to the date
MHD received the notice of termination due to elimination/reduction of FAA and/or FDOT funding.
In the alternative, MHD may elect to complete the hangar project at its own expense in which
case this lease will remain in effect.
d) All MHD financial records pertaining to the premises, the operation and
construction of the hangars paved areas and infrastructure must be kept according to generally
accepted accounting principles and made available to auditors employed by the County, the state,
or federal government during regular business hours (Monday through Friday, 8:30 AM to 5 PM,
holidays excepted). MHD also acknowledges that all records pertaining to the premises, hangars,
paved areas and infrastructure are public records under Chapter 119, F.S., and must be made
available for examination and copying by any member of the public who so requests, in
accordance with the provisions of Chapter 119, F.S.
4. a) When each hangar building, the paved areas, and the infrastructure receive a
CO, then title to, and ownership of, the hangar building, paved areas, and the infrastructure
automatically vests in the County.
b) During the construction process and until ownership has vested in the County,
MHD must not suffer, cause or permit any lien or encumbrance, however denominated, to be
placed upon, or remain upon, any structure or fixture located on the premises. If a lien or
encumbrance is placed on any structure or fixture, then MHD must immediately cause the
removal of such a lien or encumbrance. Further, during the process of constructing each hangar
building, paved area, and infrastructure and until (a) the certificate of occupancy is issued, (b)
requests for final payment have been received from all contractors in privity with MHD showing
that all their subcontractors and materialmen have been paid, and (c) a certificate of satisfaction
and final payment has been received from each contractor in privity with MHD, MHD must require
its general contractor to keep in full force and effect construction and performance bonds in the
amount of the construction price, in a form satisfactory to the County's airport consultant or
County Attorney.
c) During the course of the construction of the four eight hangar buildings, paved
areas and infrastructure, MHD must keep in effect builder's risk insurance as set forth in Exhibit
B. Exhibit B is attached to, and made a part of, this lease.
5. On or before February 10, 2001, MHD must establish with a federally insured
financial institution doing business in Monroe County, Florida, a letter of credit in the amount of
the 50% of the construction cost of the four eight hangar buildings, paved areas, and
infrastructure. The County may draw on the letter of credit if this lease is terminated by the
County for cause with any portion of the total hangar project (including pavement and
infrastructure) incomplete. The County may only use the funds received to complete the hangar
project.
6. a) The term of this lease is for twenty years, beginning on the effective date with
an option, at MHD's discretion, to renew for one additional ten year term. Upon the termination
2
of this lease, either under this paragraph or as provided elsewhere in this lease, MHD must
peacefully surrender and abandon the premises and all structures to the County.
b) The rent amounts are as follows:
(i) paved areas, $0.11 per square foot per year;
(ii) buildings under roof, $0.30 per square foot per year.
c) All rent is due annually on the anniversary of the effective date. No rent is
owed for unpaved or unroofed areas. When a structure (including a hangar building, paved area
to serve the hangar building or infrastructure) has received a Certificate of Occupancy then the
rent becomes due for that structure. If the substantial completion date is not the anniversary
date of the effective date, then the rent will be prorated to reflect the amount of time remaining
until the next anniversary date. All rental payments are due at the Airport Director's Office,
Marathon Airport, 9400 Overseas Highway, Marathon, FL 33050. The annual rental payments will
increase for each successive year of this lease for the initial 20 year term by a percent equal to
the increase in the consumer price index for all urban consumers (CPI-U) for the previous twelve
months. If MHD exercises its option for an additional ten year term, then the rent will be charged
at fair market value, established after an appraisal of the premises and calculated pursuant to the
then current rates and charges study.
7. a) After the hangar buildings, paved areas and infrastructure become County
property, the County will be responsible for all structural maintenance and repair. If any of the
hangars, paved areas or infrastructure are destroyed or damaged, then the County must replace
or repair them using materials of the same quality, workmanship, and dimensions as the
damaged or destroyed structures. Rent shall be abated on a prorated basis for hangars made
unserviceable by such damage until the date they are repaired.
b) MHD is responsible for all normal and routine maintenance and for all utility
charges and services.
8. a) Once a hangar and its related paved area are issued a CO, the MHD must make
the hangar and paved area available for use by the operators of general aircraft for such fees or
rent that MHD deems prudent; however, all fees and rents must be nondiscriminatory and apply
equally to all similarly situated general aircraft operators.
b) MHD may not conduct any commercial activity or operate an FBO on the
premises without the permission of the County. The premises are leased strictly for general
aviation use.
c) MHD must keep the County's Airport Director apprised of the names of persons
and their aircraft that MHD has authorized to use the hangars. The Director must be notified as
soon as pOSSible when an authorized occupant is added or deleted. MHD may sublet individual or
multiple hangars without written approval from the County for a period under 12 months. MHD
shall not be relieved of their obligations under the lease.
9. a) When the hangar buildings, paved areas and infrastructure receive a CO, then
MHD must obtain the liability insurance as set forth in Exhibit C. Exhibit C is attached and made
a part of this lease.
b) MHD must keep in full force and effect the insurance described in Exhibit C
during the term of this lease. If the insurance policies originally purchased which meet the
requirements of Exhibit C are canceled, terminated or reduced in coverage, then MHD must
immediately substitute complying policies so that no gap in coverage occurs.
3
c) The insurance required of MHO in this paragraph is for the protection of the
County, its property and employees, and the general public. The insurance requirement is not,
however, for the protection of any specific member of the general public who might be injured
because of an act or omission of MHD, its employees, agents or contractors. The insurance
requirements of this paragraph are not intended to make any specific injured member of the
general public a third party beneficiary under this lease. No failure by the County to enforce this
paragraph shall constitute a breach of any duty or obligation owed to any specific member of the
general public, nor shall it subject the County to liability to a specific member of the general
public or his/her dependents, estate or heirs.
10. The Lessee covenants and agrees to indemnify and hold harmless the Lessor from
any and all claims for bodily injury (including death), personal injury, and property damage
(including property owned by Monroe County) and any other losses, damages and expenses
(including attorney's fees) which arise out of, in connection with, or by reason of services
provided by the Lessee or any of its contractors, occasioned by the negligence, errors or other
wrongful act or omission of the Lessee or its contractor(s), their employees or agents. This
obligation of indemnification is not vitiated by the insurance obligations contained in paragraph 9
and Exhibit C.
11. MHD may assign its duties, obligations and benefits under this lease subject to the
written consent of the County's Board of County Commissioners which consent may not be
unreasonably withheld. However, the Board's consent will not operate to release MHD from its
responsibilities and obligations under this lease unless the Board specifically proVides for such a
release in its written consent.
12. The County may also cancel this lease if the leased premises are required to
accommodate future development at the Marathon Airport or for any other reason determined by
the FAA or the County. County, if it determines to cancel the lease under this paragraph, must
provide the MHD with thirty (30) days written notice before the cancellation becomes effective. If
County cancels the lease agreement under this paragraph, County will not be liable to MHD for
any damages -- direct or consequential -- suffered by the MHD as the result of the cancellation.
However, if the County exercises its right to cancel the lease under this subparagraph, the County
must provide the MHD with substitute hangar facilities that are similar to the facilities furnished
under this lease within a reasonable period of time, abating all rent until new facilities are
provided.
13. a) The Tenant for himself, his personal representatives, successors in interest,
and assigns, as a part of the consideration hereof, does hereby covenant and agree that
1) no person on the grounds of race, color, or national origin shall be
excluded from participation in, denied the benefits of, or be otherwise subjected to
discrimination in the use of said facilities;
2) that in the construction of any improvements on, over or under such land
and the furnishing of services thereon, no person on the grounds of race, color or national
origin shall be excluded from participation in, denied the benefits of, or be otherwise
subjected to discrimination;
3) that the Tenant shall use the premises in compliance with all other
requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department
of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in
Federally-assisted programs of the Department of Transportation - Effectuation of Title VI
of the Civil Rights Act of 1964 and as said Regulations may be amended.
4
b) That in the event of breach by MHD, Inc. of any of the above nondiscrimination
covenants, the County shall have the right to terminate the lease and to re-enter and as if said
lease had never been made or issued. The provision shall not be effective until the procedures of
Title 49, Code of Federal Regulations, Part 21 are followed and completed including exercise or
expiration of appeal rights.
c) It shall be a condition of this lease that the County reserves unto itself, its
successors and assigns, for the use and benefit of the public, a right of flight for the passage of
aircraft in the airspace above the surface of the real property herein described, together with the
right to cause in said airspace such noise as may be inherent in the operation of aircraft, now
known or hereafter used, for navigation of or flight in the said airspace, and for use of said
airspace for landing on, taking off from or operating on the airport.
d) That the Tenant expressly agrees for himself, his successors and assigns, to
restrict the height of structures, objects of natural growth and other obstructions on the herein
described real property to such a height so as to comply with Federal Aviation Regulations, Part
77.
e) That the Tenant expressly agrees for himself, his successors and assigns, to
prevent any use of the herein described real property which would interfere with or adversely
affect the operation or maintenance of the airport, or otherwise constitute an airport hazard.
f) This lease and all provisions hereof are subject and subordinate to the terms and
conditions of the instruments and documents under which the County acquired the subject
property from the United States of America and shall be given only such effect as will not conflict
or be inconsistent with the terms and conditions contained in the lease of said lands from the
County, and any existing or subsequent amendments thereto, and are subject to any ordinances,
rules or regulations which have been, or may hereafter be adopted by the County pertaining to
the Marathon Airport.
g) Notwithstanding anything herein contained that may be, or appear to be, to the
contrary, it is expressly understood and agreed that the rights granted under this agreement are
nonexclusive and the County herein reserves the right to grant similar privileges to another
tenant or other tenants on other parts of the Airport.
h) MHD acknowledges that the hangar project provided for in this lease is in part
funded by the FAA and FDOT. If an official of the FAA or FDOT determines that any portion of
this lease violates any federal or state statute or rule, or FAA or FDOT policy, then that portion of
this lease is void to the extent of the conflict.
14. Either party may terminate this lease for cause if the other party fails to comply
with its obligations under this lease. Before a party may terminate this lease, it must give the
other party written notice of the default stating that, if the default is not cured within 30 days
from the date of the notice, then the party will terminate this lease. Termination under this
paragraph does not relieve the defaulting party from whatever damages the other party may
have suffered because of the default.
15. Notwithstanding anything to the contrary in paragraph 14, the Airport Director may
order the hangars and paved areas closed to aircraft operators and to the public immediately if
she determines that the insurance required by paragraph 9 has expired, been terminated or
reduced in coverage. The Airport Director may keep the hangars and paved areas closed until
such time as the lack of insurance is corrected.
5
.. .- -. - ....
FA)( t(J!
D.c. B7 2Bli!II!J 19: 14R'1 PI
FRCJI'1 :
16. This lease Is governed by the laws of ttMI 5t11te of Florida. Venue far any litigation
arising under this Agreement ml.St be in Monroe county, Florida. In the event or .n"/lItigltlon,
the pl"lYalllng party 1. entitled t;g recover Its I'Hsonable fair markel: value attorney fBe. ilnd costs.
17. ThIS I... tw. been CllrefullY NVI.wed by MHD and the CountY !!iter input from
batn J'lrtles. l1'1erefgre, thi. Agreement is not W be ecnstrued a~lnst 8"'1 party Oft the basis of
authal"lhll' .
18. Nottces a. provldtld for In this Agrwmri. unless otherwise spedfiad, must be sent
bV certified mill I. follows:
10 ~OUNTV
AirpOrt DlractrJr
Florida Keyt M.,..tt\On Airport
9400 Overseas HlplilY
Maratl'lOn, FL 33050
19. ",11 1... Is th. "fti... ftMI mutual understanding. It NPlaces any eartler
agreementS ar understBndlnp, Wheth.r written Of' oral. Thll lease cannot be modified or
rapllced except bY ."ather written and Slaned agreement.
TO MHO
Ma"" Sd'II"dler, VIce-President
11100 Oversus Highway
Marathon, Ft. 33050
IN wtTN!SS WHeREOF, .1Id1 party has cauMlCl this Agreement to be oeeuted by Its duly
authO"* reprvcent8tlva.
(SEAL]
ATTEST: DANNY L. KOUiAC2, ClERK
BOARD OF COUNTY COMMlSSlONI!!RS
OF MONROE COUNTY, FLORIDA
By
IV_
Mayor/Chalrmiln
DeputY Clerk
By
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(SEAL)
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EXHIBIT "B"
1996 Edition
BUILDER'S RISK
INSURANCE REQUIREMENTS
FOR
. CONTRACT
BETWEEN
MONROE COUNTY, FLORIDA
AND
The Contractor shall be required to purchase and maintain, throughout the life of the contract,
and until the project is accepted by the County, Builder's Risk Insurance on an All Risk of Loss
form. Coverage shall include:
Theft
Windstorm
Hail
Explosion
Riot
Civil Commotion
Aircraft
Vehicles
Smoke
Fire
Collapse
Flood
The policy limits shall be no less than the amount of the fInished project and coverage shall be
provided on a completed value basis.
Property located on the construction premises, which is intended to become a permanent part of
the building, shall be included as property covered.
The policy shall be endorsed permitting the County to occupy the building prior to completion
without effecting the coverage.
The Monroe County Board of County Commissioners shall be named as Additional Insured and
Loss Payee.
DR!
Administration Instruction
#4709.2
42
1996 Edition
EXHIBIT "e"
'C
r
MONROE COUNTY, FLORIDA
RISK MANAGEMENT
POLICY AND PROCEDURES
CONTRACT ADMINISTRATION
MANUAL
(
II
.~
General Insurance Requirements
for
Construction Contracton and Subcontractors
I
(
Prior to the commencement of work governed by this contract (including the pre-staging
of personnel and material), the Contractor shall obtain, at hislher own expense, insurance
as specified in the attached schedules, which are made part of this contract The
Contractor will ensure that the insurance obtained will extend protection to all Sub-
Contractors engaged by the Contractor. As an alternative the Contractor may require all
Subcontractors to obtain insurance consistent with the attached schedules.
The Contractor will not be permitted to commence work governed by this contract
(including pre-staging of personnel and material) until satisfactory evidence of the
required insurance has been furnished to the County as specified below. Delays in the
commencement of work, resulting from the failure of the Contractor to provide
satisfactory evidence of the required insurance, shall not extend deadlines specified in
this contract and any penalties and failure to perform assessments shall be imposed as if
the work commenced on the specified date and time, except for the Contractor's failure to
provide satisfactory evidence.
The Contractor shall maintain the required insurance throughout the entire term of this
contract and any extensions specified in any attached schedules. Failure to comply with
this provision may result in the immediate suspension of all work until the required
insurance has been reinstated or replaced. Delays in the completion of work resulting
from the failure of the Contractor to maintain the required insurance shall not extend
deadlines specified in this contract and any penalties and failure to perform assessments
shall be imposed as if the work had not been suspended, except for the Contractor's
failure to maintain the required insurance.
The Contractor shall provide, to the County, as satisfactory evidence of the required
insurance, either:
· Certificate of Insurance
or
· A Certified copy of the actual insurance policy.
The County, at its sole option, has the right to request a certified copy of any or all
insurance policies required by this contract.
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.
Administration Instruction
#4709.2
10
1996 Edition
WORKERS' COMPENSATION
INSURANCE REQUIREMENTs
FOR
CONTRACT
BETWEEN
MONROE COUNTY, FLORIDA
AND
Prior to the commencement of work governed by this contract, the Contractor shall obtain
Workers' Compensation Insurance with limits sufficient to respond to the applicable state
statutes.
In addition, the Contractor shall obtain Employers' Liability Insurance with limits of not less
than:
$500,000 Bodily Injury by Accident
$500,000 Bodily Injury by Disease, policy limits
$500,000 Bodily Injury by Disease, each employee
Coverage shall be maintained throughout the entire term of the contract.
Coverage shall be provided by a company or companies authorized to transact business in the
state of Florida.
If the Contractor has been approved by the Florida's Department of Labor, as an authorized self.
insurer, the County shall recognize and honor the Contractor's status. The Contractor may be
required to submit a Letter of Authorization issued by the Department of Labor and a Certificate
of Insurance, providing details on the Contractor's Excess Insurance Program.
If the Contractor participates in a self-insurance fund, a Certificate of Insurance will be required.
In addition, the Contractor may be required to submit updated fmancial statements from the fund
upon request from the County.
WC2
Administration Instruction
#4709.2
89
1996 Edition
GENERAL LIABILITY
INSURANCE REQUIREMENTS
FOR
CONTRACT
BETWEEN
MONROE COUNTY, FLORIDA
AND -
Prior to the commencement of work governed by this contract, the Contractor shall obtain
General Liability Insurance. Coverage shall be maintained throughout the life of the contract and
include, as a minimum:
· Premises Operations
· Products and Completed Operations
· Blanket Contractual Liability
· Personal Injury Liability
· Expanded Definition of Property Damage.
The minimum limits acceptable shall be:
$1,000,000 Combined Single Limit (CSL)
If split limits are provided, the minimum limits acceptable shall be:
$ 500,000 per Person
$ 1,000,000 per Occurrence
$ 100,000 Property Damage
An Occurrence Form policy is preferred. If coverage is provided on a Claims Made policy, its
provisions should include coverage for claims filed on or after the effective date of this contract.
In addition, the period for which claims may be reported should extend for a minimum of twelve
(12) months following the acceptance of work by the County.
The Monroe County Board of County Commissioners shall be named as Additional Insured on
all policies issued to satisfy the above requirements.
GL3
Administration Instruction
#4709.2
56
, ,
, ,
1996 Edition
VEmCLE LIABILITY
INSURANCE REQUIREMENTS
FOR
CONTRACT
BETWEEN
MONROE COUNTY, FLORIDA
AND
Recognizing that the work governed by this contract requires the use of vehicles, the Contractor,
prior to the commencement of work, shall obtain Vehicle Liability Insurance. Coverage shall be
maintained throughout the life of the contract and include, as a minimum, liability coverage for:
· Owned, Non-Owned, and Hired Vehicles
The minimum limits acceptable shall be:
$1,000,000 Combined Single Limit (CSL)
If split limits are provided, the minimum limits acceptable shall be:
$ 500,000 per Person
$1,000,000 per Occurrence
$ 100,000 Property Damage
The Monroe County Board of County Commissioners shall be named as Additional Insured on
all policies issued to satisfy the above requirements.
VL3
Administration Instruction
#4709.2
83